Lincoln Mayor Chris Beutler announced Thursday, Lincoln would change from a retirement plan in which the city matches employee contributions with $2 for every $1 to a one-to-one match.

The mayor says it's neccessary to move forward in Lincoln. He said the old plan was not cost effective and not fair to taxpayers who were funding retirements that they would never see themselves.

The plan will not affect current employees. Mayor Beutler said the city's lawyers did not believe the city could legally apply the the change to workers hired under the previous retirement plan. New employees will be hired under the new plan.

"The generosity of our retirement program is inhibiting Lincolnites willingness to invest in our future, without that investment we cannot achieve our vision of tomorrow," said Beutler.

"This two for one match has become a barrier for the city and I want to reiterate, it does no reflect poorly on the thoughts on our employees," said Councilman John Spatz.

The mayor said the new plan will not have an immediate financial impact on Lincoln's city budget, but within five years it could save the city $2.2 million.

The Lincoln City Council must approve an ordinance to make the change. City Council Chairman Doug Emery, and council members John Spatz, Adam Hornung, Jayne Snyder and Jon Camp joined Mayor Beutler in announcing the change Thursday.