LADWP Faces Pension Problems
LOS ANGELES (AP) — The Los Angeles Department of Water and Power is facing pension troubles.
The city utility says it can’t afford retirement costs for 1,600 workers transferred from other city agencies to help the city avoid layoffs and furloughs. The transfers created a $183 million pension burden for the DWP.
The Los Angeles Times says the utility’s board voted last month to suspend full pension coverage for new employees hired by the DWP from other city departments. The City Council voted unanimously on Wednesday to veto that decision.
Budget woes could lead to future layoffs of city employees and Councilman Richard Alarcon says the city needs the Department of Water and Power to provide jobs for displaced workers.
(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)