CHATTANOOGA (AP) - Chattanooga's chief financial officer says a trust fund that helps pay city employees' retirement benefits will cost more than estimated.
The City Council voted last year to fund the program, which allows city retirees to keep medical insurance, reported the Chattanooga Times Free Press. The council appropriated $14 million. The initial cost estimate was $15.5 million, but the council cut retirement benefits to new hires, expecting to save up to $2.5 million annually.
Daisy Madison says new actuarial tables came out after she estimated costs and the program is going to cost taxpayers an extra $2.5 million to $3 million annually.
Madison says the largest group using the retirement plan is police and fire department workers, who can retire earlier and live longer.