Crystal Thomas
The State Journal-Register
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In other action, aldermen moved forward two ordinances that would have the city contributing more money toward pensions for police officers and firefighters.
One ordinance, sponsored by Langfelder, would have the city automatically pay the pension funds whatever is left over once the city hits a certain threshold in its rainy day fund. Based on current projections, if the city hits 0.25 of a percentage point over a 16 percent threshold, that could mean an extra $600,000 split between the two pension funds.
Another ordinance, sponsored by Ward 7 Ald. Joe McMenamin, would have the pension fund’s estimated rate of return set at lower rate, triggering larger contributions from the city. The current rate is based on actuarial reports of what the city is projected to make, while the rate McMenamin proposes is based on a 10-year average of the city’s actual rate of return. The payments, which could kick in a year from now, would be an additional $1.7 million in the first year and an extra $3.52 million the next year, on top of what the city would have paid without the ordinance, said.
In 1995, the city’s debt to police and fire pensions was $15 million, according to McMenamin. Now, it’s $350 million.
“If the actuaries have been wrong for 24 years, it’s our job as the bosses to step in and take corrective action,” McMenamin said.
Lt. Bob Davidsmeyer, the vice president of the Springfield Police Pension Board, said the board was in favor of any proposal, either the mayor’s or McMenamin’s, that puts money toward the city’s pension debt.
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Both ordinances will be considered for final approval at Tuesday’s city council meeting.
Joe McMenamin for Ward 7 