The Midland City Council on Thursday voted unanimously to pay approximately $54.4 million into the local firefighters’ pension fund to help address a massive deficit in the fund.
After years of mismanagement that led to the Midland Firemen’s Relief and Retirement Fund accumulating a roughly $121 million deficit, the vote marked the final step in instituting a plan to address the shortfall. In recent years, both city leaders and local firefighters have worked to shore up the fund, leading to the city’s lump sum payment and the first responders opting to cut their retirement benefits.
As city officials celebrated finding a resolution, Midland Mayor Lori Blong acknowledged that the deal is a real sacrifice for Midland firefighters.
“These are real dollars out of the pockets, and futures, of firefighters,” she said.
At times, negotiations over possible solutions were tense between local leaders and the firefighters. However, it became clear earlier this week that a solution would be possible when it was announced that the move to cut pension benefits was approved by an 88% vote by firefighters.
Midland Firemen’s Relief and Retirement Fund Chairman Justin Graham said the agreement is a step forward.
“It’s a huge relief,” he said in an interview with Marfa Public Radio. “We want to make sure [the retirement fund] is solvent for future generations.”
In a press release, a spokesperson for the Professional Firefighters Association of Midland said the cuts in future benefits are estimated to be worth around $30 million.
The agreement also includes safeguards to prevent the pension fund from accruing a large deficit in the future, including a requirement that regular actuarial reviews are conducted. Graham said the plan puts the pension on track to provide retirement benefits well into the future.
“Nobody wanted to make these changes, but they understand that things don’t get better unless we fix them,” he said.
Now that the agreement is finalized, Graham said the city can move on to focusing on other issues at the Midland Fire Department like recruiting more firefighters and increasing salaries.
