Joplin’s pension board to propose change in plan funding
Members of the pension plan's board of trustees met in special session Thursday to consider language for a ballot proposal. The board intends to hold an election on the issue in upcoming weeks.
Pension trustees are preparing for the possibility that city voters will be asked in November to approve a half-cent sales tax increase that would go toward elevating the funded level of the plan.
Currently, the pension fund has a funded ratio of about 63%, or enough money to cover about 63% of the benefits that are owed or will be owed in the future. The city and the trustees have worked more than a decade to increase that level. The city is now contributing more than
It is likely that the proposal for both pension members and voters will be whether to implement a half-cent increase in the city's general sales tax, which is now
Because of the amount of projected revenue, city officials are considering proposing to voters that the tax would expire in 12 years. The ballot language for both elections may ask that the tax be put in place until it raises the funding level of the plan to 120 percent, or for 12 years. The 120 percent funding level would help keep the fund solvent if there is a market downtown or some other factor that would diminish its assets.
Trustees on Thursday looked at language that would change the plan's rules. The change was written by the board's attorney,
Trustee
Trustee
Alford also said that the rules should say the city is obligated to maintain the plan until the last benefits are paid.
Hogue said the pension board could buy an insurance annuity to pay those last benefits to close out the plan. He said language written into the plan today could tie the hands of future trustees.
Alford said he just wants the plan to say the city is responsible to see that all benefits are paid.
Kandal, contacted by telephone, said the language sought by Alford could be added, and the board agreed that should be done.
Board member
The rewritten language will be reviewed next week at a regular meeting scheduled for the board.
The city's finance director,
___
(c)2019 The Joplin Globe (Joplin, Mo.)
Visit The Joplin Globe (Joplin, Mo.) at www.joplinglobe.com
Distributed by Tribune Content Agency, LLC.
Texas Maternal-Fetal Medicine Practice Joins MEDNAX
Murray Slams Republicans’ Attempts to Sabotage Medicaid and Jeopardize Health Care for Millions of People
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News