Forth Worth, Texas, officials met Thursday for a budget workshop to discuss possible solutions for the city’s ailing pension fund.
The pension for retired city workers has $2.3 billion in assets under management, with a $1.6 billion deficit. The fund is facing insolvency, as it has been given a 25-year clock before the money runs dry. This has also resulted in two downgrades for the Texas city’s credit rating.
A suggestion was made by City Manager David Cooke at the end of July to cut the cost of living for retirees as a means to shore up the fund, but the city council and employees would rather find an alternative that doesn’t hurt the fund’s beneficiaries. Police and firemen have been the most vocal opponents.
“Hardworking firefighters, hardworking police officers, someone who sacrificed 30-plus years for the city of Fort Worth and citizens. I don’t see any way you can take away a benefit they’re living on right now,” Fort Worth Professional Firefighters President Michael Glynn told Fox 4 news.
Another option discussed was raising contributions from the city and employees. Fort Worth’s consultants argued this would still not be enough to plug the pension hole. Taxpayers would also be forced to help cover the fund’s rising costs.
Mayor Betsey Price is hopeful for compromise but said during the session that all options must be considered.
“I think everybody realizes the severity of it and everybody also realizes we yet have a budget to do that will impact our services,” she told NBCDFW.com.
Fort Worth’s city council is expected to vote on pension reforms in mid-September. Employees will vote on the plan in November. If no resolution is agreed upon, the city’s pension predicament will fall on Texas’ legislature to find one.
Tags: Betsey Price, David cooke, Fort Worth, Pension, Texas