City Council has seen several iterations of pension reform over the past four years, but decided against pulling the trigger on any deal for different reasons.
It didn’t go “far enough.” The deal was too long. It didn’t include a funding source.
Yet, despite time winding down for more than half of the council members, Bill Gulliford wants to take one last crack at making headway on pension reform.
“Every day, the cost continues,” Gulliford told several of his colleagues and city staffers Wednesday.
They met to talk about a financial wrinkle in a plan Gulliford pitched in late April.
His plan largely keeps the benefits side intact, while making concessions on the deal’s length and pay-down structure.
The amendment has the city paying $5 million next year above what’s required, increasing by $5 million each year until it caps at $20 million a year. No funding source is identified.
In return, the Police and Fire Pension Fund would do the same. Its funding would come from almost $80 million in two fund-related accounts it would keep and continue to draw interest from, in addition to the $10 million or so added each year in state chapter funds — insurance premium taxes employees pay.
The current council has three full meetings left before the incoming council members take office July 1.
Gulliford will be around another four years after being re-elected. Eleven of his colleagues won’t.
“How long will it take them to get up to speed?” Gulliford asked Wednesday evening. “It’s not anything negative … we need to move on with this thing.”
He said nine members supported the latest reform, with the others — himself included — unable to agree on several issues.
Council President Clay Yarborough was one of those who voted against the latest plan, but said Wednesday he was in support of the group giving it one last shot.
“We still need to make every effort while we still have time,” said Yarborough, an outgoing, term-limited member.
Compounding the issues is the election of a new mayor. Mayor Alvin Brown has been at the forefront of pension reform talks and supported the plan, but will be replaced by Lenny Curry on July 1.
Gulliford endorsed Curry, but said he hasn’t had pensions discussions with him. Like a new council, Gulliford said it will take time for new leaders to familiarize themselves with the entire situation, which will continue to cost more each day.
“I think we will do him a big favor and get that part out of the way,” Gulliford said of the benefits side of reform. “We’ve got to stop the bleeding.”
Yarborough agreed, saying it will take Curry time to catch up on the issue. But, he said, if the mayor-elect has input on the subject, “I’m sure council would listen.”
Gulliford said if Curry wanted to sit down and talk about pension, “I’m all ears.”
Calls and text messages to Curry went unreturned Wednesday and Thursday.
As for the latest plan, Yarborough was one who rejected any deal that went beyond three years — the typical term for collective bargaining. He said Gulliford’s idea of seven years in the proposal is “not a bad idea” but that he still is reviewing the proposal and latest amendment.
Gulliford said he’ll be attending this morning’s pension fund board meeting to talk about his legislation and receive feedback.
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