City staff outline plan to preserve Port City Transit pension during VIA contract transition

City staff told the Mobile City Council at a Sept. 24 pre-meeting that they will bring an amendment next week to the VIA operating contract intended to preserve the Port City Transit defined‑benefit pension and route employer and employee contributions directly to the pension trust.

The plan, explained by Scott, a city staff member, calls for Port City Transit (operated under contract by VIA) to reduce its monthly invoice to the city by the combined amount of the employee pension contribution and VIA’s employer contribution. “We would then, pay the invoice for their operating cost for the month less that amount of money, and the city would then contribute those funds directly to the transit employees pension fund,” Scott said. He added: “The transit workers pension plan continues to function in its current form unchanged in any way, as a fully independent pension plan.”

Why it matters: Transit employees and retirees would remain in the existing pension trust rather than being moved into VIA’s typical defined‑contribution (401(k)) arrangements. Council members said the explanation responded to employee concerns after some received…