Rutland City labor unions are in contract negotiations that could end city pension plans for future employees.
The Rutland Pension Board is considering eliminating pension participation for future city employees. The decision is based on a shortfall in the funding of the pension system. In the negotiated contracts, new hires will be placed in the Vermont Municipal Employees Retirement System and will not be offered the city program.
"People are living longer and contracts have re-negotiated -- benefits have increased and not necessarily folks on either from the city side or the employee side have put enough in to cover the benefits going out," said Rutland Board of Alderman member Dave Alliare.
The Fire department is the first union that has agreed to get rid of city pension plans for new hires. The Department of Public Works is currently in contract negotiations. Under the new contracts, current members will be allowed to stay in the city pension program.
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