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Council rejects $40,000 appropriation for actuarial study of closed police and fire pension plans
Summary
After public testimony from retired officers and extended debate about scope and fairness, the council voted down a proposal to appropriate up to $40,000 for an actuarial study of closed police and fire pension plans (R26155). The measure failed on a 3–4 roll call.
The North Little Rock City Council on the special-call agenda debated a proposal to fund an actuarial study of closed police and fire pension and relief funds but ultimately voted against the appropriation.
Council member Hamilton introduced Resolution R26155, asking the council to appropriate up to $40,000 from the general fund to authorize an actuarial study and to direct the mayor to request the study from the Arkansas Local Police and Fire Retirement System (LOPFI). Hamilton said the closed pension fund was effectively empty and a study could show scenarios and possible savings. “The closed pension fund is 0, and has been for a decade almost, I believe,” Hamilton said, and argued the study could determine whether a lump-sum payment or other approaches would reduce the city’s ongoing costs.
Amber Strange, the city’s chief financial officer, urged a comprehensive review and clarified the legal and administrative history of the closed plans. Strange said trustees relinquished control of the plans in 1994 and the plans were consolidated under LOPFI’s administration, which limits the city’s options. “When we moved that merger to LOPFI in 1994, that’s irrevocable,” Strange said, adding that the closed plan currently has no assets and that funding currently comes from a mixture of mill levies, turnback funds and other revenues.
Multiple retired officers and long-term employees spoke during the public-comment period, urging the council to address low or stagnant benefits for people who retired under the old system. Roger Gay, who retired in 1995, said many retirees receive very small monthly pensions and described recent hardship among fellow retirees. “There isn’t many retirees under the old plan left, and the new resolution would be something we really could benefit from in the years that we do have left,” Gay said. Leslie Muellinen Hauser, who identified herself as one of the city’s earliest female police officers and a retiree, described serious financial strain since retirement and asked council members to consider the proposal.
Council debate focused on two main questions: whether a study focused only on uniformed (police and fire) closed-plan retirees would be fair to nonuniform retirees who have also received little or no increases, and whether it is fiscally prudent to commit even to a study or a one-time payment without clearer numbers. Several council members said they supported getting better data but resisted promising money without understanding long-term obligations. Members also noted the city recently received actuarial information for other plans and cautioned that funding a lump sum does not automatically increase monthly benefits for retired members.
On the roll call vote for R26155, Council member Hamilton and Hart voted yes; Robinson, Baxter, Harris and Ballard voted no; Insilaco voted yes. The motion failed and the council recessed for five minutes.
The council did not adopt R26155; no further action on the study was recorded before recess.
