Our city charter caps the contributions that the city can make to the police and fire pension funds at 18.5% which is where the city contribution is today.
According to reports the Texas legislature passed a law last year that would allow city council to raise our contribution rate without regard to our city charter.
The law does not require council to do so. In fact it still allows council to take the issue to the public for a vote.
I would hope that our public servants would take the position that the people have voted and set the maximum rate and that if a they want a rate increase it should be taken to a public vote.
I would hope that our council feels the same way.
To increase our contribution rate beyond what our city charter authorizes may turn out to be legal because of the new law in Texas.
Increasing the rate without having a public vote would be another sign of disregard for the voters.
Some tell us that El Paso is not competitive with other Texas cities in this regard.
That does not make the other cities right. We should pay our public servants a competitive wage as they are working and not defer our costs by transferring them to a perpetual pension system. We might have an opportunity here to become more desirable than other cities. I suspect that if El Paso adopted a compensation system where the public safety employees got paid more as they were working and less in retirement employees from other cities may want to transfer here.
We deserve better
Brutus
elpasospeak 
As I see the local Police and Fire pension problems, this is not a matter of how much who contributes. It is a matter of the pension’s management. I don’t know who oversees these pensions, but I believe that somehow City Council has too much say in this, and that is totally wrong. As a retired State employee, whose wife is a retired Teacher, all I know is that our pensions are managed by us, State employees and retirees, by election. IOW, we have a Board that manages the pension funds, and that Board makes sure that the funds stay in the black. I do not believe this can be said of our local pensions.
LikeLike
Public wage rates here are out of line compared to private sector wages, especially if you add in pension and health (and a self-serving 4 day week). I have to think that, in a sense, the public sector “crowds out” the private economy here and an across-the-board wage reduction or at least a 5 year freeze might help to remedy that situation.
That would be an economic development strategy – “If you move your business here, you won’t have to compete with city hall.”
LikeLike
I just have to say that many who work in the private sector, have to manage their 401K and put money in a saving account for future security. The BS that comes from ALL government or public sectors that they need a pension is pure theft. The amounts should come out each person’s pocket and a very small match to a retirement account for each individual. The waste, fraud, and theft that comes from all governments would make all the CEO, CFO’s and lawyers who represent that government entity guilty of these crimes and they should be in prison. Any court system and judge that permits these crimes are guilty of these crimes, and even intentional deceit and money laundering. All governments are run by deceit, thuggery, and fraud.
LikeLike
The Police Pension Fund ratio is 1.2 to 1.
Fire is 1.3 to 1.
The unfunded liability incresed $25,000,000.00 to over $300,000,000.00 as of 1 Jan 2014.
There are 315 members of Police and Fire with over 20 years of service.
Council thinks the fund is in great shape. I think the fund is going to bankrupt the city if action to correct this mess doesn’t happen real soon. Oh and those pension bonds ee sold hasn’t had any impact that I can tell.
As to the city’s position on the board, its a miniority position.
LikeLike
As a retiree from the EPFD, I can tell u that the city has NOT been funding it’s share of the pension since before I started in 1986. I remember at that time the pension shortfall was 10-13 million. Every council since that time had a chance to increase the city’s contribution but failed to do so, no one wanted to bite the bullet, so to speak. During all that time the city didn’t have to show the shortfall as debt on it’s books, that all changed when Texas law was changed and they HAD to show the pension shortfall and carry it on their books. This had a MAJOR effect on the city’s bond rating. Don’t not fool yourselves thinking that the city finally stepped up to address the pension shortfall out of the kindness of their heart, THEY WERE FORCED to by the change in the law. They continue to underfund their portion which only leads more shortfall. EPFD has created a “tier two” system for the newer recruits to work under, they have to work longer and will not have ANY COLA’s once they retire. Speaking for the Fire side of the pension, we have increased our contributions several times over the years that I was on (25 yrs), and it is increasing yet again, the city has not budged one iota to increase it’s portion, instead relying on going to the public seeking lump sum contributions to make up for their unwillingness to do the right thing and avoid all this. As for all of you that think the pension fund is being mismanaged, it was rated as the #3 pension system in the state (behind Dallas and Houston) which have a far greater amount of members and contributions from their respective cities.
In a separate but related issue, the city is currently proposing raising insurance premiums to well over $1000 per month for a FF who’s married w kids. The day I retired (2010) my insurance went from $80 (myself only) to $416, FOR THE SAME POLICY! I now currently pay $542 per month, such is how the city takes care of it’s retirees…
LikeLike