Council approves additional pension funding steps

Springfield City Council held a special meeting Thursday night during which the group unanimously approved a series of steps meant to bolster the Police and Fire Pension Fund.

The approved resolution would take several steps to add support to the fund, currently underfunded by $200 million. Among the additional moves are an increase in the city's contribution level, to 35 percent of payroll from 28.88 percent; increasing the Police and Fire employee contributions from 11.35 percent to 13.35 percent; and closing the self-funded plan to new hires, putting them instead into the statewide Local Government Employees Retirement System.

Council also vowed to contribute any net money from future lawsuit settlements with the telecommunications industry and general revenue proceeds from the sale of city-owned property, as well as restructuring the pension board to eliminate potential conflicts of interest.

With those items passed, council's next step is to wait for Nov. 3 vote on a proposed 3/4-cent sales tax. If approved, that tax would create an estimated $28 million per year before sunsetting after five years, though staff and council members have said publicly that at least one renewal election for that tax would likely be necessary.