The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, May 11, 1996                 TAG: 9605110290
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY ALEX MARSHALL, STAFF WRITER 
DATELINE: NORFOLK                            LENGTH: Medium:   59 lines

NORFOLK WRESTLES OVER IMPROVED PENSIONS FOR POLICE AND FIREFIGHTERS

For three hours Friday, the City Council peppered a pension consultant about actuarial tables, future interest rates, cost-of-living adjustments and other building blocks of a pension plan.

It was a discussion only an accountant could love, but the bottom line was of interest to everyone: How many tax dollars should the city spend to sweeten the pension plan of 1,200 police and firefighters?

At stake are millions of dollars that are competing with schools, roads, parks and other services sought by citizens.

An alliance of police and firefighters has pushed for an improved pension plan for months. The city, in the budget now before the council, has proposed some increases, but it's not enough, say public safety union officials.

Earlier this week, about 500 firefighters and police officers attended a budget hearing at Scope and asked for more significant increases.

Under the current system, the city would spend $4.5 million annually from its operating budget to pay for the pension plans of public safety employees. Along with the pension plans of all city employees, it's one of the biggest chunks of city spending.

Under the proposed plan in the new budget, the city would spend an estimated $6.3 million annually, or about $1.8 million more than the current budget. It's the amount of money gained by raising the real estate tax 3 cents per $100.

Under this plan, a police officer could retire at a mininum age of 50, with 25 years of service, at 55 percent of pay. With 30 years of service, the benefits would reach a maximum of 60 percent of pay, regardless of age or length of service.

The Public Safety Alliance has countered with a plan that would allow employees to retire with 25 years' service, regardless of age. It would also increase the rate at which benefits accumulate, and raise the maximum benefit levels to 85 percent of salary.

This would cost the city $8.3 million a year, or $3.8 million more than the current plan, city staff estimated. That's the equivalent of about 5.5 cents more on the real estate tax rate.

The subject is especially complex because public safety employees are governed by two separate pension plans, depending on whether they started work before or after 1980, when the pension program was significantly changed. Under the city's new plan, some employees would gain, some would lose.

The City Council made no decision Friday but will have to approve a plan with the budget before the end of the month.

The issue is fraught with politics. The police and firefighters unions backed Charles D. Grant and William E. Swindell in last Tuesday's council elections, both of whom lost. Among the most vocal councilmen Friday in favor of increasing pension benefits were Councilmen Herbert M. Collins and Paul R. Riddick, who had backed Swindell.

Councilman Mason C. Andrews, who arrived late to the meeting and who defeated Grant in Tuesday's election, was largely silent. by CNB