Denison still facing questions about fire pension
Among the issues facing the
According to a report issued at the May meeting, financial services representatives handling the fund show there have not been any deposits made into the investment portfolio for some time. Despite that, the fund continues to grow based on a combination of interest collected and dividends paid from the investments.
At that meeting Denison Mayor
Her question was answered by pension board chairman
Bates also said even at full staff the fund would not have excess funds to contribute towards the purchase of additional investment assets, and Bates didn't know what it would take to get to that point at this time.
He said once the department is fully staffed and a new actuary is hired he will have a better picture.
The Denison firemen's pension fund works like other retirement funds. When a firefighter has a portion withheld from each paycheck received, and the city matches that portion. The funds then go into a bank account, and the money in that account is used to pay out the benefits to the firefighters who receive funds from the pension.
Bates said there is not enough money currently coming in to cover those costs so the pension draws from the Denison Fire portfolio. Those funds come from dividends and interest earned from the fund's investments, and that is why Bates said the pension is healthy largely because the initial investments were successful.
At the Thursday meeting Wright said the fund is doing well because of the strong economy, and the portfolio's assets are diverse and strong enough that the fund has recovered some ground from market losses despite the market as a whole not being as strong.
As for the immediate future, Bates said
And in comparison to other markets of similar size, Bates said the only cause for concern is keeping an eye on the ongoing trade dispute between President
Denison City Manager
"The city of
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