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Marshall mayor says city will increase pension contributions as firefighters negotiate ADC
Summary
Marshall leaders told the Pension Review Board they have contributed $250,000 to the local firefighters' pension and agreed to pick up additional employer shares while firefighters consider an ADC proposal; a membership vote is pending.
Marshall Mayor Amy Ware told the Texas Pension Review Board on Wednesday that the City of Marshall has increased contributions to its firefighters' pension and is negotiating an actuarially determined contribution (ADC) framework with the local relief and retirement fund.
City officials told the board they lack an experienced finance director and have been working with an outside actuarial firm to confirm valuation numbers and to explain options to the city and firefighters. "We are currently without a finance director, and so we're a little bit of a disadvantage," Ware said. She said the city contributed "right at $250,000" in the current fiscal year and has agreed to pick up an additional 6 percent of an 8 percent actuarial deficit the parties identified.
The Marshall fund and the city told the PRB they have a tentative agreement but still need a membership vote. Tanner Lane, speaking for the Marshall Firefighters Relief and Retirement Fund, said the plan's proposals are "still hinging on the membership voting" and that the board hopes to receive an answer at its regular meeting tomorrow before taking the proposal to rank-and-file members. Lane described the proposal as a multi-step change in employer funding, moving to an actuarially determined contribution beginning in 2029 after a phased employer increase, and said the city has proposed a 2-to-1 cost-sharing arrangement for future ADC increases.
Marshall officials said the city will continue paying employer contributions for vacant positions and has been meeting regularly with firefighters and the actuary since receiving the actuarial valuation in May. The mayor and city manager also said they are trying to preserve benefits while making the plan sustainable; city leaders said they had increased employer funding beyond prior agreements for the current fiscal year as part of that effort.
PRB staff and board members urged both sides to keep communicating with staff and to make use of PRB technical assistance as negotiations continue. No formal action was taken at the PRB meeting on the Marshall plan; Marshall staff said they will return with updates after the fund's board and membership consider the ADC proposal.
Next steps: Marshall's fund expects a board response to the ADC proposal at its regularly scheduled meeting tomorrow, after which the membership will be asked to vote on changes described by Lane. PRB staff said it stands ready to provide technical assistance.
