A defined benefits retirement plan or pension system for police in Gaithersburg might help with officer recruitment and retention, an expert told the mayor and council last week, but could ultimately be too costly for the city.

Gaithersburg's retirement plan for officers "is a pretty generous plan," said Thomas B. Lowman, an actuary with Bolton Partners Inc. of Baltimore. He recommended no immediate switch, saying that a pension plan could prove more expensive than anticipated.

City leaders asked staff in 2008 to research the costs and benefits of a pension plan for police, who said that such a plan could help with recruitment and retention of officers.

In 2005, the city police department raised concerns that officers' retirement plans were not adequate, given early retirement trends in a physically demanding job, Lowman said. Bolton Partners recommended the city adjust its 401K and other plans. The city contributes 16 percent of officers' gross salaries to their retirement plans and officers put in 10 percent for a total of 26 percent. Officials did not say how much the city contributed in 2009 and could not provide The Gazette with figures before Tuesday's deadline.

"They're spending the kind of money you spend on a defined benefit plan," Lowman said Feb. 27. "Maybe now is not the time to take on any extra risks," he said citing the economy.

General employees are on a different contribution schedule, investing a total of 16 percent, Lowman said. Bolton Partners recommended the additional benefit several years ago for officers, which is also offered to public works employees, to help the city stay "competitive" in recruiting and retaining officers.

For younger officers who start working for the city in their 20s and invest well, the city's plan is hard to beat, Lowman said. Officers have called for more security.

Lowman presented data that showed long-term problems and liabilities — including debt load — for governments with defined benefits plans.

"It's our employees that have longevity that have the problem," said Human Resources Director Margaret Daily, who said that some longtime officers have borrowed against their retirement plans and now cannot afford to retire. She recommended a policy preventing staff from borrowing against their retirements.

Gaithersburg Police officers are among the highest-paid in the nation and each of the 52 officers is contributing the maximum to their retirement plans, Daily said.

Richard Koch, a Kentlands resident and certified public accountant who ran for mayor in November, suggested the city run calculations showing younger officers a comparison of their take-home pay versus what their take-home pay would look like in a pension system.

Officials also said they need to be creative to address "a bottleneck" of older officers in senior ranks who may wish to, but cannot afford to, retire. Retirement incentives and buyouts have been mentioned.

City Manager Angel Jones said the city must address other issues, such as cross-training and upward mobility opportunities. The goal, she said, is to provide a comprehensive recruitment package with opportunities for career development.

The discussion comes as rank-and-file police officers keep their eye on federal legislation that would allow municipal police departments to engage in collective bargaining. Maryland State Police Maj. Mark Sroka, acting interim chief of the Gaithersburg Police Department, was the only officer at the table. Sroka said that officers remain interested in a pension plan, believing that it could provide more financial security.