City Council Faces Backlash Over Retirement Fund Decisions

During a recent Portsmouth City Council meeting, significant discussions centered on the city's pension funding and proposed cost-of-living adjustments for retirees. The council is set to contribute $19.4 million to two legacy retirement funds in the 2025 fiscal year, which includes debt service on pension obligation bonds and annual contributions aimed at achieving 80% funding for the pension plans.

Concerns were raised regarding the proposed use of a fund balance—referred to as the \"magic cookie jar\"—to supplement these pensions. Critics argued that this approach lacks transparency and public input, as the fund balance's current status has not been disclosed. One speaker urged the council to adhere to the budget established in May and to consider any changes during the next budget cycle.

Support for a $1,500 supplement to beneficiaries of the police and fire retirement systems was also discussed. Proponents highlighted the unanimous support from council members at a previous meeting, emphasizing the importance of this financial assistance for lower-income retirees. However, some council members expressed concerns about equity, noting that not all retirees are treated equally under the current system, particularly those who opted for different retirement plans in the past.

The council ultimately voted in favor of the proposed supplement, with discussions highlighting the need for a fair and equitable approach to retirement benefits. The meeting also touched on various community issues, including school safety at bus stops and the need for improved infrastructure, such as addressing illegal truck parking and sewage issues in certain neighborhoods.

In addition, the council acknowledged upcoming community events, including a September 11th remembrance ceremony and the inaugural Filipino Festival, which aims to celebrate cultural diversity in Portsmouth. The meeting concluded with a commitment to continue addressing the concerns of residents and ensuring the welfare of the community.