Ann Arbor Preps Employee Benefit Change

At its June 6, 2011 meeting, the Ann Arbor city council passed a resolution directing its city administrator and city attorney to begin work on an amendment to the city’s retirement benefit package for new non-union employee hires.

Under the amendment, for new hires after July 1, 2011, the final average contribution (FAC) for the pension system would be based on the last five years of service, instead of the last three. Further, employees would be vested after 10 years instead of five, and all new non-union hires would be provided with an access-only style plan, with the opportunity to buy into whatever plan active employees enjoy.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]