DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Amendment to City's State 84th Legislative Session Program that the City does not support any legislation for the San Antonio Fire and Police Pension Fund ("Fund") which would increase benefits and/or increase the unfunded liability of the Fund.
SUMMARY:
On September 24, 2014, the Board of Trustees of the San Antonio Fire and Police Pension Fund ("Fund") approved proposed amendments to the State Statute that governs the Fund. These amendments include an increase in retirement benefits for active uniform fire and police employees, an increase in the cost of living adjustment for certain retirees, delegation of authority to the Board of Trustees to approve future cost of living enhancements for certain retirees, and a reduction in the City's annual contribution to the Fund. Based on an analysis done by the Fund's actuary from the October 1, 2013 actuarial study, these changes would increase the unfunded liability of the Fund by $72.6 million or 31.2% and extend the projected time to pay off the unfunded liability of the Fund from 7.25 years to 12.87 years. The reduction in the City's annual contribution to the Fund is estimated at approximately $4.3 million.
City Staff reviewed the proposed legislative amendments and recommended to the City's Intergovernmental Relations (IGR) Committee on October 8, 2014 and on November 12, 2014 to not support the proposed legislative amendments. On November 12th, the IGR Committee approved the following language as part of the upcoming State Legislative Program "That the City does not support legislation that increases benefits and/or increases the unfunded liability of the San Antonio Fire and Police Pension Fund". The language was approved by the IGR Committee by a three-to-one vote, with one absentee.
At the request of the Mayor on December 1, 2014, independent firms were engaged to review the p...
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