Police Chief Bobby Dodd answers questions during a news conference Monday in City Hall regarding a pension task force and officers’ take home cars.FIRE AND POLICE PENSION BY THE NUMBERS• $37,524 – Average yearly benefits paid to the city’s 733 police and fire retirees and beneficiaries.• $11.8 million – City contribution in 2012 to the fire and police pension fund.• $13.3 million – Recommended city contribution in 2013 to the fire and police fund without reforms.• $218 million – Assets in the pension fund, or 63.4 percent of what actuaries is needed to fully fund the plan.• 818 – Active police and fire department employees eligible for future benefits.• 36 – Percent of payroll paid into the retirement fund by the city.• 8-9 – Percent of payroll paid by each employee (and there are 818 active polio and fire department employees participating), depending upon when hired and plan benefit.• 69 – Percent of the average final three years of pay provided in retirement benefits.• 3 – Percent of annual cost of living increases given beneficiaries.Source: Chattanooga Fire and Police Pension Fund
Understanding the intricacies of pension funding is eye-crossing business.
But in this increasingly expensive world, pensions and retirement planning are important for current and would-be pensioners as well as taxpayers.
So it is good news that Chattanooga Mayor Andy Berke is creating a task force and hiring an outside consultant for $90,500 plus expenses to look for ways to reform and replenish the city employee retirement plan that now faces a $125 million shortfall in the Chattanooga Fire and Police Pension Fund.
“We have work to do,” Berke told Times Free Press Business Editor Dave Flessner, and he’s not kidding. “Without looking at ways to reform the fund, the city’s contribution is expected to be $14.4 million this year after being at about $6 million a few years ago. Increases are expected to continue.”