Report: Bridgeton falls short in fixing pension woes

Nov. 30--JEFFERSON CITY -- A new report shows officials in Bridgeton have not fully implemented recommendations designed to address the city's underfunded employee pension system.

A year after an audit found the St. Louis County city hadn't adequately contributed to the retirement plan for employees hired before 2012, the report by Missouri State Auditor Nicole Galloway notes that only one of the recommendations for fixing the problem had been put in place.

At issue is the city's failure to fully fund the retirement program. Between 2009 and 2015, the city averaged only 60 percent of its determined contribution amounts, leaving the plan $14 million short of its funding goal.

The 2016 audit found the city council hadn't developed funding and investment policies, and that the city's finance commission, charged with advising and oversight of the plan, only met one time between 2012 and 2014.

Pension problems in this city of 11,680 residents are not new. Bridgeton closed the program to new employees in 2012 and later increased its hotel tax to help generate money for pensions.

But, the auditor's office last year recommended more steps be taken to ensure better oversight of the plan, including training for council members on their financial responsibilities, and more transparency between the officials involved and the hundreds of employees, retirees and beneficiaries who could be affected.

According to Thursday's follow-up report, most of those recommendations have only been partially put in place.

Galloway noted that the city has increased its contributions this year by $325,000 to help close the gap, but a formal funding policy has not been adopted.

The auditor last year also recommended the city make an effort to communicate with employees and residents about the problems. The new report said those efforts fell short.

"We reviewed the mayor's letter and newsletter statements and noted the statements contained only limited plan financial information, such as plan assets and increased contribution amounts," the report noted.

Last year, Mayor Terry Briggs said some of the problems were linked to lower-than-expected investment returns when the recession hit beginning in 2008.

Bridgeton officials could not immediately be reached for comment Thursday.

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