By Maria Altman, St. Louis Public Radio
ST. LOUIS – The Metropolitan St. Louis Sewer District is considering moving from a pension system to a retirement contribution plan for new employees.
MSD spokesman Lance Lecomb said that the costs of funding pensions have increased dramatically in recent years from nearly 8 million dollars in 2007 to 11 million this year.
And Lecomb said that the costs are expected to rise significantly over the next several years.
"Under the new program we'll be able to bring that number level, perhaps down with the defined contribution program," Lecomb said. "Certainly over the long term the defined contribution program will save us a significant amount of money."
Under the defined contribution system MSD would contribute seven percent of employees' salaries, as well as a partial match of employees' voluntary contributions.
MSD's Board of Trustees could vote next month to approve the measure. It would go into effect in January for all new employees.