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Prichard reaches pension agreement

Updated: Friday, 20 May 2011, 5:53 PM CDT
Published : Friday, 20 May 2011, 10:54 AM CDT

PRICHARD, Ala. (WALA) - Pensioners who have gone nearly two years without receiving the pension they expected could soon see a check.

Friday, Mayor Ron Davis signed an agreement that puts some money back in their hands. The City of Prichard is one step closer to change, putting change back into the pockets of its pensioners.

"Most of us are having problems paying for medical and utilities. Even though I work, I still have problems. So this will help. Anything will help," said Mary Berg.

Berg retired as the assistant city clerk. She sat alongside Prichard Mayor Ron Davis as he signed an agreement between the city and its retirees.

The agreement calls for pensioners to receive one third of their payments plus a lump sum to cover a percentage of back pay. It also says one third any new revenue generated by the city must go to pensioners.

Mayor Davis hopes this is the beginning of the end for the pension crisis.

"I believe it will resolve the issue. Think there is more work to do, but the high hurdle - we have made it over," said Mayor Davis.

The agreement makes a lawsuit filed by the pensioners null and void.

Berg said the day is a bittersweet one since several pensioners have died waiting for payments.

"There have been 18 deaths and this week a retiree's wife died. We buried her yesterday it has been a difficult time for all of us," said Berg.

Berg said she knows she may never see the full amount of her retirement, but at least this is a start.

Before pensioners get their first check, a judge must sign off on the deal, but it is possible that pensioners could get their first check next month.

Not all pensioners were required to sign the deal.

"They could hire their own counsel and work out their own deal," said Berg.

Mayor Davis said now the city can focus on attracting new revenue to the area. The Mayor said there are some things in the works, but he would not go into detail.


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