Site last updated: Wednesday, October 7, 2026

Log In

Reset Password
Butler County's great daily newspaper

Council rejects pension service time proposal

Officials say city can't afford it

Butler City Council on Thursday rejected a proposal that would amend the city pension plan to allow employees to buy service time for years worked as part-time employees.

Council in August directed solicitor Jim Coulter to prepare an ordinance that would amend the pension plan to permit employees to buy up to 3 years of service as part-time employees, provided they are age 60 or older and retire by the end of the year.

The motion was denied by a vote of 4 to 1.

Both Mayor Tom Donaldson and Councilman Bill May said they originally supported the idea, but voted not to approve it due to the financial burden it would place on the city.

“We want to help employees as much as we can, but we cannot afford to do this,” May said.

The move could have increased the city’s cost for its pension plan by nearly $10,000 annually for more than a decade.

Councilwomen Cheri Readie and Kathy Kline had previously said they do not approve of the motion due to the cost.

Councilman Richard Schontz voted for the motion, saying it could have prompted additional retirements this year that could have saved the city money.

Employees get 50 percent of their wages per year if they retire after age 60 and have 20 years of full-time service. Employees with at least a dozen years of full-time service qualify for a prorated percentage of their wages.

Full-time employees contribute 5 percent of their earnings to the pension plan. Part-time employees are not eligible for pension benefits and do not contribute to the plan.

However, the request to retroactively buy pension coverage service for part-time years came from one employee this year.

If approved, the ordinance would have allowed the employee to make a payment equal what would have been paid in pension contributions during the part-time years.

Mockenhaupt Benefits Group, the city’s actuary consulting firm, recommended that the council should not do that.

More in Local News

Subscribe to our Daily Newsletter

* indicates required
TODAY'S PHOTOS