Morton: City 'committed' to pay retirement for police, fire

Times Record (Fort Smith, AR)

Feb. 9—Ward 3 Director Lavon Morton wants to assure Fort Smith's retired police and firefighters they will continue to receive benefits for the rest of their lives.

"The city is meeting its current required obligations, and we're working to make sure we meet the obligations in the future," Morton said.

Morton's comments are in response to a Times Record article outlining retired police officers' concerns about the city's payment of their retirement.

Fort Smith funds retirement for police and firefighters who began their careers before 1983 and their beneficiaries through property taxes, insurance turnbacks, interest from payments and revenue from the city's general fund.

Morton pointed to Arkansas' Local Police and Fire retirement system holding the city accountable, interest from the city's contributions to the system and how their payments to the statewide system are funded.

He said municipal governments that consistently meet their required payments get a larger share of allocations like insurance turnbacks that help fund their retired police and firefighters. City governments are encouraged to put more money than is required into the state retirement system for this reason.

The city put an additional $2 million into the fund to be split between its police and fire funds in addition to its required payments for 2020. Morton said this ensures they can adequately make payments in the future.

The fiscal year 2019 saw its police receive 17% return on the city's payments from the state retirement system. Morton said the interest return rate varies based on how well the United States economy is in a given year.

Morton believes the interest rate will be healthy again in fiscal year 2020, which saw the economy come back strong after a stock market decline in March and April during the onset of COVID-19.

Police and fire retirement is also funded by 25% of property taxes in the city, which Morton said have been up in recent years because of an increase in construction and commercial buildings in Fort Smith. The remaining difference comes out of the city's general fund, which was largely funded by sales taxes. Sales taxes in Fort Smith exceeded 2019 totals in nine of the 12 months of the year.

"The city certainly understands its obligation, and it has a long, consistent record of putting in the money required to fund these contributions," Morton said.

Morton's statements follow former Fort Smith police officer Kim Thompson, who said the current city administration has "passed the buck" on funding police and fire. Thompson, who began his career in 1975, said officers who began their careers before him earned just $75 per month in retirement.

However, Thompson spoke well of Arkansas' current police and fire retirement system — he said he would otherwise be drawing one-fourth of his salary in retirement. He also said he has never missed a monthly retirement payment.

When asked about Morton's assurance, Thompson said the city upholding its commitment to retired police and firefighters is "basically all we want."

"We earned it," Thompson said.

"I'm committed, myself, to making sure we fund these plans in accordance with whatever the actuaries require," Morton said. "I believe the city administration and the rest of the board feel the same way."

___

Visit Times Record (Fort Smith, Ark.) at www.swtimes.com

Distributed by Tribune Content Agency, LLC.