Milwaukee County Pension Reform | Supervisor Proposes Changes

A New Target for Pension Reform

MKE County Supervisor Sheldon Wasserman has introduced a resolution to end the Omnibus Budget Reconciliation Act of 1990 pension plan. This program serves seasonal employees like lifeguards and summer maintenance crews, yet it creates significant administrative friction for the county. The program exempts workers from Social Security payroll taxes, but few seasonal staff members ever accrue enough time to receive a meaningful benefit. Records indicate the average payout over the last five years sat at approximately $501.

While the county recently moved toward closing its primary, more problematic pension system, this smaller plan has largely escaped scrutiny. Wasserman argues that the administrative burden outweighs the benefit. Maintaining the plan costs the county between $180,000 and $200,000 annually. Many former employees never claim their funds, often because they were teenagers at the time of their employment and moved on long before reaching payout eligibility. In 2019, nearly half of those eligible for a payout never received one, forcing the county to transfer unclaimed funds to the Office of the State Treasurer.

The Proposed Path Forward

Wasserman describes the current situation as a promise the county cannot keep. His proposal seeks a soft-close of the program, transitioning remaining members into the federal Social Security system. This shift would provide a portable benefit that follows workers into other jobs, ensuring that young seasonal employees do not lose the earnings they put toward retirement. Such a transition requires a formal referendum of plan members and coordination with the state government.

Implementing this change will require the county to hire consultants, adding to the immediate workload. Wasserman insists that local government must bite the bullet to fix the long-standing inefficiency. By moving these employees to the federal system, the county aims to remove itself from the role of pension administrator for seasonal staff. The proposal heads to the county board for consideration in September.

Context and Systemic Implications

This move comes as Milwaukee County continues to address the fallout from a separate, decades-old pension crisis. That major plan, which drained public service funding, led to state-negotiated changes that began on Jan. 1, 2025. As part of that reform, new hires transitioned into the state-run pension system, aided by a 0.4% sales tax increase. The county currently spends millions managing the legacy costs of those earlier, more lucrative pension sweeteners.

While the OBRA plan represents a much smaller portion of the county budget, the push to close it reflects a broader desire to simplify public administration. Policymakers face pressure to focus on core government functions rather than managing complex, underperforming benefits systems for seasonal staff. Whether the county board supports the shift remains to be seen in the upcoming vote. The resolution serves as a test of the board's appetite for clearing out legacy administrative programs.