(Danville, VA) – Danville City Council will review a new proposal at its Thursday meeting that could require city employees hired after August 31 to pay into the city’s retirement fund with their salaries.
The recommendation is based on a report from the National Resource Network that projected the City of Danville could see a $22.3 million five-year general fund gap if somethings don’t change.
According to the Danville Register and Bee, one projected change would be to have city employees pay into their retirement. As of now the city pays just over 5% of an employee’s salary into the retirement system. The new proposal would set the expectations that employees would pay 50% of the city’s contribution. So, for an employee who makes $35,000 per year the employee would contribute $875 for the year.
It will be hard to say how much this type of change could make as it would only apply to new employees and it’s hard to predict the city employees’ turnover rate.