Sioux Falls city employees could see pension changesSIOUX FALLS (AP) — Sioux Falls officials are contemplating changes to the city's pension plan for municipal workers.
SIOUX FALLS (AP) — Sioux Falls officials are contemplating changes to the city's pension plan for municipal workers.
Under one proposal, future hires would contribute 2 percent more of their salaries to their pension plans.
Sioux Falls city workers would also lose the option of staying on the city's health insurance plan if they retire before age 65. Instead, they would get a sum of money to buy their own insurance.
City Council member Jim Entenman tells the media that it might make more sense to put future city workers into 401(k)-style retirement plans that do not have guaranteed benefits.
He says most private employers don't offer the guaranteed pension benefits that Sioux Falls city employees get. Instead, they have private retirement savings accounts that they can manage themselves.