The Arkansas Municipal League is supporting legislation that would cut cities’ costs on the Arkansas Local Police and Fire Retirement System by reducing future members’ benefits. The decision is apparently not what most police officers and firefighters wanted to hear.
The system’s trustees were recently informed of the municipal league’s decision. In June, the municipal league adopted a resolution that favored imposing the options to aid in resolving the insolvency of some “closed local police and fire pension plans,” which date back to before the state legislature’s 1983 direction for new uniformed personnel to join the LOPFI System.
The resolution seeks more state and local funds and reduction of current LOPFI costs, which would generate more funds to support previous plans by lowering the multiplier used in calculating retirement benefits for new hires, establishing a minimum retirement age of 55 and reducing or eliminating an annual cost of living increase.
“I’m not in favor of paying more and getting less benefits,” said Pine Bluff Police Chief Brenda Davis-Jones.
“I don’t think it’s right,” said White Hall Police Chief Richard Wingard. “(Officers) have paid in all these years and the city has, too. We don’t want to take anything away from anyone, but we don’t want anything taken from us either.”
Independent reporting for Pine Bluff & Jefferson County since 1879.
System members are eligible for full retirement benefits at any age with at least 28 years of service, at the age of 55 with at least 20 years, or at 60 with five years. Currently, system participants who have been retired for a year receive three-percent cost of living adjustments.
In May, Pine Bluff voters approved millage rate increases for the pension funds of retired local police officers and firefighters. The respective funds were created in 1941 and 1947.
The additional revenue from the millage hikes was figured to be enough to help keep the old, separate pensions afloat for the near future. But the firefighters’ fund is expected to be insolvent within 15 years or so, while the police fund may endure for up to 18 more years.
“They haven’t heard the last from us yet,” said retired Fire Chief Eddie Lunsford, who along with retired Police Capt. Lee Hurd led the successful campaigns. Lunsford said he’ll be seeking a meeting with area state legislators following the Nov. 6 general election to acquire their assistance in “coming up with more state money for the pensions.”
“The state is liable because they’re overseeing it,” Lunsford reasoned. “And we’ll need more city money, too.”
Pine Bluff Assistant Police Chief Ivan Whitfield, who has progressed “through the ranks” since joining the department nearly 30 years ago, said he doesn’t believe it’s “sound sense” for a new, 21-year-old officer to have to work 34 years to reach the proposed retirement age of 55. Just before Whitfield started his career, officers could retire at any age after 20 years of service.
“Being a police officer can be a dangerous, stressful job,” he said, explaining that many officers can develop emotional or alcohol abuse problems “with the wear and tear of the job” over three-plus decades. “This is a profession that can take a toll on an person’s body and mind.”
City Finance Director Steve Miller supports the municipal league resolution, saying the retirement system is “paying out more than it’s bringing in” because the “old plans are underfunded.”
Miller said a proposed bond issue will be on the November ballot so that voters “can bring the systems up to date and resolve uncertainties.”