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Some Luzerne County property owners obtain removal from upcoming back-tax auction

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Holy Redeemer football forfeits game against Western Wayne

<p>WILKES-BARRE &#8212; The city is in the process of negotiating a reduction in the 500-percent payment increase for one of its five pension plans next year.</p><p>The state-mandated Minimum Municipal Obligation for the non-uniformed plan, the largest of the five with nearly 120 active members, will balloon to $4.1 million in 2017 from $826,913 this year, according to data provided by the city.</p><p>The $3.3 million hike accounts for almost all of the nearly $3.5 million increase in MMOs next year, pushing the total payments to $8.1 million from $4.6 million this year. The total includes payments of $116,635 from the state.</p><p>City Finance Officer Brett Kittrick said he is optimistic the huge single payment will be reduced and will speak again with an actuary from the state next week.</p><p>&#8220;I think we can get a revised set of numbers,&#8221; Kittrick said Friday. The negotiation will focus on getting approval to use one of the methods allowed by Act 205 of 1984, the state law that governs municipal pensions. The new numbers will be filed with the Public Employee Retirement Commission in Harrisburg.</p><p>Still, there&#8217;s no way to avoid an increase, pointed out Ted Wampole, city administrator. It will not affect this year&#8217;s budget, but any cut will give the city &#8220;a little wiggle room&#8221; when formulating next year&#8217;s budget, he said.</p><p>Kittrick explained a credit applied to the non-uniformed plan for several years has expired, contributing to the more than $3.3 million MMO increase.</p><p>&#8220;It&#8217;s a combination of a lot of things,&#8221; he said of what leads to an increase. Factors such as poor market performance or longer life spans of beneficiaries can be the cause, he said. &#8220;They can change quite significantly if one of the numbers changes,&#8221; Kittrick said.</p><p>The non-uniform plan covering employees at City Hall and the Department of Public Works had the highest unfunded percentage, approximately 48 percent, compared to the other plans with members paying into them. Liabilities totalled $41.4 million while assets were valued at $21.7 million, according to the 2015 valuation, the most recent of the biennial reviews under Act 205. The new fire pension was 12 percent unfunded and the new police plan is 24 percent unfunded.</p><p>Notice of the increase led Mayor Tony George last week to place the blame on his predecessor Tom Leighton. Leighton countered, saying increases in MMOs are normal.</p><p>&#8220;It does fluctuate year to year,&#8221; Kittrick said.</p><p>The MMOS for three of the other plans will increase next year, but not as much as the non-uniformed plan.</p><p>According to data provided by the city:</p><p>&#8226; The new police pension MMO will increase by $374,651 to $965,042.</p><p>&#8226; The new fire pension MMO will increase by $125,737 to $662,324.</p><p>&#8226; The old police pension MMO will increase by $166,635 to $1.4 million.</p><p>The old fire pension plan&#8217;s MMO will go in the opposite direction, dropping by $503,920 to $899,768 from $1.4 million.</p><style>
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<div class="metaInfo"><bylineMeta><p>By Jerry Lynott</p><p>jlynott@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott</p></shirttailMeta></div>

Wilkes-Barre working to reduce $4.1 million pension payment for 2017