The Council passed an ordinance authored by Councilmember-At-Large Stacy Head to amend the Code of the City relative to the New Orleans Municipal Employees' Retirement System (NOMERS).
The priorities for the reform included the following:
A pension system to provide a reasonable retirement income for current employees
and attract quality applicants to city employment.
Ensure that the system is adequately funded for current and future employees and
avoid drastic benefit reductions in the future.
Immediately reduce the number of tax dollars being poured into the pension system.
Use savings for other budget priorities.
NOMERS and other legacy pension programs cost the City over $116 Million in tax dollars, which represents 19 percent of the City's general fund. The system is currently underfunded at 68.2 percent, which represents a decrease from over 100 percent about ten years ago.
This agreed-upon reform proposal was based on research by the Bureau of Governmental Research Supported by Business Council, Forward New Orleans Coalition, Citizens for a Better New Orleans, Vieux Carre Property Owners and Residents Association.
"This is another step toward a rational set of benefits with enhanced opportunity for upward development for city employees," said Councilmember Head. "This will ensure that the pension is healthy enough to meet the needs of this generation and generations to come."