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Midland council approves funding agreement to transfer roughly $54.5 million to firefighters' relief fund
Summary
The Midland City Council approved a resolution authorizing an administration and funding agreement with the Midland Fireman's Relief and Retirement Fund and the transfer of approximately $54.5 million to fund pension obligations; the fund's board affirmed an actuarially determined contribution rate intended to prevent future shortfalls.
The Midland City Council approved a resolution authorizing execution of an administration and funding agreement with the Midland Fireman's Relief and Retirement Fund and authorized transfer of about $54.5 million to the fund.
Council members and fund board representatives said the payment closes a long-running funding issue that followed a series of benefit and contribution changes. Council members and board members described overtime rule changes and member contribution adjustments that occurred earlier, and said the council moved to transfer funds now to settle the outstanding obligation rather than wait several months.
Council and board members discussed two employee contribution changes that took effect in January 2024 — referenced in the meeting as a 2% council match and additional firefighter contributions — and another separate 5% firefighter contribution. At the meeting a figure of $54,400,000.0 was cited and a speaker corrected that to “closer to 54.5,” and council members said staff would wire the funds once the agreement is executed.
Members of the fund board told the council the board affirmed an actuarially determined contribution rate at a board meeting the same morning; council members said the board views that rate as the mechanism that will prevent a recurrence of the funding shortfall. Council members also discussed plans for regular reporting from the fund to the council going forward.
Officials noted recent investment performance in the pension fund: a speaker said the fund “has earned 12% this year,” which the meeting contrasted with a 7% assumed rate used in actuarial planning. Council members emphasized that investment performance is judged over multi-year periods and that the ongoing actuarially determined contribution rate will be used to monitor and correct shortfalls on an annual basis.
Council member Robin Poole moved to approve the resolution; Council member John Burkholder seconded the motion. The presiding official called for the question, and the motion was approved by voice vote after an affirmative response of "Aye"; the meeting record does not list an itemized roll-call tally in the transcript.
Council members and staff thanked firefighters, family members and staff who worked on the agreement and acknowledged the sacrifices referenced during the discussion. Several staff and board members mentioned they had worked on amendments and final drafting earlier the same day and that those changes were included in the documents transmitted to council.
