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Council previews multiyear pension package including $50M one-time allocation
Summary
Council leaders outlined a pension plan that would include a $50 million one-time allocation, another $50 million amortized, and a proposed increase to the city’s minimum contribution rate; the proposal will return to committee and require judge approval for the settlement.
City leaders described a multi-part pension proposal intended to reduce an identified unfunded liability in the municipal pension plan. The mayor/chair (speaker 1) summarized the framework: a $50 million one-time allocation from funds set aside for COVID tax uncertainty, an additional $50 million amortized over time from restricted fund sources, and an increase in the minimum annual contribution from 16.25% to 19.25% with triggers to raise that to 21.5% depending on long-term projections.
"We are talking about an extraordinary level of investment to get our pension back on track and to fulfill our sacred commitment to our employees," the chair said, framing the measures as necessary to protect benefits for employees and retirees.
Council members were told the updated collaborative settlement agreement will, if approved by council, go back for federal judge approval. The chair also thanked the law department and CRS/finance teams for their work on the plan and said more discussion will follow in committee and on council.
No final ordinance adopting the settlement was recorded during the business session; the package was presented and scheduled for further committee consideration and required judicial review before becoming enforceable.
