Last summer, Mayor Alvin Brown was across the table from John Keane, spending hours that bled into days hammering out pension reform.
On Wednesday, it was City Council member Bill Gulliford sitting across from the Police and Fire Pension Fund administrator. This time, though, the talks lasted all of about 15 minutes before mostly reaching a deal.
Both believe this version might just work by July 1, when 11 new council members and a new mayor enter the scene.
Gulliford has taken the lead on the city side for deal, making a last-ditch attempt that’s largely based on the deal Brown and Keane agreed upon.
The council member was among the staunch advocates that a new agreement last no longer than three years. Keane’s five-member board demanded 10. Now it’s at seven, a compromise the two are OK with.
In the latest version, Gulliford also bumped up how much the city would pay over the next 13 years toward the plan’s $1.7 billion in unfunded liability.
A week ago, he pitched $5 million from the city next year, $10 million after that, then $15 million and finally capped at $20 million.
Now, the first several years are the same, but instead of $20 million each additional year, it jumps to $32 million.
And, instead of the Police and Fire Pension Fund matching the city’s contribution, it would instead mirror the contribution until $15 million, which then would drop to $8 million each year thereafter.
Overall, a schedule has the city paying $318 million to the fund’s $102 million. In addition, the fund would put in almost $46 million from a stabilization fund, bringing its overall combined payment to $466 million.
A city funding source hasn’t been identified, although Gulliford said he was hopeful about a sales tax proposal being reviewed.
One part that wasn’t brought up was a senior staff pension plan in which Keane and a couple of others are enrolled.
That plan has been deemed unauthorized by former city attorneys. Gulliford is seeking an opinion from current city lawyers. The deal on the table doesn’t reference the plan. Gulliford said whatever the latest opinion states, “that’s the action we should take.”
The plan Brown and Keane signed off on included the senior plan, effectively ending it — but Gulliford and others essentially haven’t wanted it written off.
After the meeting, though, Keane said the status of that plan still needs to be worked out.
Yet, after 10 minutes or so — barely enough time for past pension talks to settle in — Gulliford asked Keane what was next on his list of disagreements. It was determined the topic of investment expenses versus pension fund plan expenses would be settled later.
Keane had nothing else.
“That’s about it,” he said. “It’s a good piece of legislation.”
“Well, I’m disappointed,” Gulliford wryly replied.
The new payment breakdown will be reviewed by both sides before Gulliford and Keane meet again Friday.
From there, the deal will be reviewed by council committees early next week and the fund board thereafter — possibly all in time for that pre-July deadline.
(904) 356-2466