Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Policy topic
No spam. Unsubscribe anytime.
Committee advances formal pension funding policy: $50M deposit proposed, employer and employee contributions to rise
Summary
The committee advanced two ordinances to formalize a multi-step pension funding policy that would deposit $50 million into the trust, raise the city employer contribution toward 19.25% (with triggers up to 21.5%) and increase employee contributions from 9% to 10% over four years; the plan will require federal‑court amendment of an existing consent decree.
The Cincinnati Budget, Finance & Government Committee advanced two pension ordinances that the administration and retirement staff described as a multi‑part funding policy meant to address the city’s unfunded pension liability.
John Sallstrom (retirement staff) outlined the three main elements: an initial $50,000,000 city contribution to be matched over time by restricted funds; an increase in the city employer payroll contribution (the administration said the contribution is moving to 19.25% this year with triggers that could push contributions higher, up to an indicated maximum near 21.5%); and a phased increase in employee contributions from 9% to 10% over four years in 25‑basis‑point steps. Presenters emphasized the ordinance would not change earned benefits for retirees or active members.
Marion Haines and other retirement officials reminded the committee that the pension plan remains subject to a federal consent decree that governs funding and benefits. If council approves the ordinances, the city and other parties would ask the federal court to amend the consent decree and would seek preliminary approval and a fairness hearing; that process gives covered members opportunity to object or comment and, if the court approves, permits implementation aligned with the FY26 budget (presenters said they expect court steps to be in place by May–June).
Council members broadly praised the approach’s fiscal discipline and the plan’s built‑in, recurring review. Multiple members said protecting city retirement benefits is essential for retaining municipal talent.
Next steps: the ordinances (items 1–2) were placed on the passage agenda and, because the plan is governed by a consent decree, would proceed through a coordinated court‑approval process before implementation.
(Reporting note: descriptions of contribution percentages and timing reflect presenters’ statements to committee.)
