Memphis, Tenn. — When it comes to health insurance benefits and changes to the City’s pension plan, there’s probably no other issue that sparks anger for city employees and retirees and their unions.
Who could forget the emotional rallies last year.
But on Live at 9, Mayor A C Wharton said the current plan just doesn’t work.
“Either way you go there’s going to be passion involved. This is not easy and this is why we remain so respectful of the employees and the retires,” he said.
A new report commissioned by the city is expected to recommend more health care cuts.
It’s believed the changes could save $32 million and avoid sizable tax in 2018 known as the Cadillac Plan.
“What this report bares out is we simply can not afford the present plan that we have, and we are going to get in trouble with the federal government if we try to maintain this plan or add to it,” he explained.
Thomas Malone, the President of the Firefighter’s Association told us by phone drastic changes aren’t needed.
“I think they should be protecting the 365 employees. They only need six more months in this budget instead of throwing them to the wolves,” he said.
The report calls for adding a health plan option for active employees and retirees without Medicare.
It also suggests changes to how the city’s retiree benefits package works with Medicare possibly saving $10 to $12 million.
The mayor admitted not everyone will like the recommendations.
“There will be pain and anxiety. We understand that, but these are not things we went out and chose. These are things that the state requires in terms of our pensions and how we fund it,” he said.
