Minutes 04/26/1988 - Laserfiche WebLink

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6¸3 Apr~il 2~6, 1988 The average residential customer will experience an increase of approximately $1.59 per month~, Employees'. Salaries This recommended budget includes the provision for a 2.5% general wage increase for all City employees. Employees who are eligible will also receive a qqe~s~ep increase on the anniversary date of their employment in accordance with the Pay and Classification Plan. ~pproximgtely 50% of our employees are "frozen" and will not recei~ve such~step inc~eases~ In addition, I have continued~to implement %h~ r~cl~ssification or'certain selected positions base'd on' the,results of, an.annual salary s~rvey. .Approximately 54 class:ifications (~396 employees) will be raised one'grade (5%). ~- The 2.~5% ~general'wage increase does not fully o~fset the Consumers P~ice I~dex (CPIy increase of 4.4% fo~ 1987. However, with the fiscal impact of offsetting dwindling state and federal funds with local ~funds; I am~unable to recommend more. Pension Adjustment for Retirees -At your request, last November I furnished a report to City Council pertaining to'a proposal for an-adjus%men% in pension allowances for retirees of the City. Council members indicated that you would like for this matter to be considered in the annual budget. I have included funding in my recommended budget which will allow f~r the implementation of the retirement adjus%ment. With this one time adjustment, certain retirees wi%l be granted increases that will raise their pensions to ~he level that they would have been if increases had been granted annually equal to the CPI increase or a maximum of 5% each year since 1976. Only pensioners who retired on or before July 1, 1982 will receive the pension adjustment. This special adjustment will be applied to pensioners as follows: Retirees who retired: On or before And After Will receive a pension increase of: Percent 7/1/82 7/1/81 ' ~ 3.68% 81 80 6.18 80 79 8.18 79 78 10.68 78 77 11.68 77 76 11.49 76 N/A 11.49 These increases will be applied to retirees of the Portsmouth Fire and Police Retirement System as well as to retirees of the former Portsmouth Supplemental Retirement System (PSRS) who were transferred to the Virginia Supplemental Retirement System (VSRS) in 1984. VSR$ has advised us that it will not be~able to adjust the pensions of the retirees who are now members of VSRS. Therefore, the pension adjustment for the VSRS employees apparently will have to be paid by a separate check from the City's PSRS. This will result in the affected retirees rece!vlng two separate monthly checks, one from VSRS and one from the City. We are making efforts to have VSRS modify its position and if City Council adopts this recommendation~ I will request a Council resolution to VSRS for reconsideration.