Council postpones pension plan bill

May 07, 1993|By John Rivera | John Rivera,Staff Writer

The Anne Arundel County Council last night postponed action on a bill that would close loopholes in the pension plan for elected and appointed officials.

Councilwoman Maureen Lamb, an Annapolis Democrat, held back her bill until the county attorney and the council's lawyer determine whether its provisions violate state law.

The bill is intended to address a situation in which state employees can come into county government and, without contributing to the pension fund, draw a county pension on retirement.

Under state law, state employees who take a job with a county government can transfer credit for their years of service, but do not transfer any assets to the county pension plan. In addition, they could collect a pension at the higher county rate of 2.5 percent of their last year's salary for each year of service rather than at the state rate of 1.8 percent.

This situation has led to a drain on the pension fund for appointed and elected officials.

Ms. Lamb's bill would require an appointed or elected official to serve the county for eight years to become eligible for a pension. It would also raise the payroll deduction from 4 percent to 5 percent of yearly salary.

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