Summary
PICA adopted Resolution No. 2016-05, emphasizing the urgent need for pension reform in Philadelphia. The resolution outlines key concerns, including the City’s pension system having an unfunded liability of $5.7 billion and a funded ratio of just 45.8% as of July 1, 2014. PICA noted that pension costs had risen significantly, from 7% of the General Fund in FY2001 to 15% in FY2016, limiting resources for essential services. The Authority called for greater employee contributions, increased participation in the hybrid pension plan (Plan 10), and reconsideration of costly policies like the Deferred Retirement Option Plan (DROP). The resolution urges City officials, union leaders, and pension administrators to implement these reforms to ensure long-term fiscal stability. It takes effect immediately.