A Cheiron actuary responded to another actuarial firm’s assessment of Chattanooga’s fire and police pension fund by saying the deferred retirement option plan, or DROP, increased the city’s cost because of incorrect assumptions.
“So many more people retired than Segal had assumed,” Fiona Liston told the Fire and Police Pension Fund Review Working Committee during its meeting this afternoon in the mayor’s conference room.
Segal actuary Leon “Rocky” Joyner had asserted during a committee meeting last week that the DROP had saved the city money by eliminating the salaries of older, better-paid employees, which would offset its cost.
Ms. Liston responded by saying that analyzing both pension and payroll cost the city almost $26 million.
For complete details, see tomorrow’s Chattanooga Times Free Press.