FORT WORTH (CBSDFW.COM) – A new proposal in Fort Worth would potentially save the city’s failing pension fund, while also saving annual cost of living increases to current retirees.
Any employees who retire after 2020 though, are unlikely to ever receive the benefit adjustments.
The city council was expected to vote on the new proposal Tuesday night, with an employee vote likely in February to make the changes official.
The new agreement came together late last week after several city council members joined police and fire unions in November, in opposing any solution that affected the benefits promised to current retirees.
The pension fund faces a $1.7 billion dollar shortfall, with the potential of running out of money entirely within 20 to 30 years.
While not full supporting the new option, because of its impact on benefits promised to current workers, police and fire unions said Tuesday they would not oppose the proposal.
“As long as we’re not reaching back and touching those that have already left service, we feel like this is the fairest iteration that has come forward to date,” said Fort Worth police association president Manny Ramirez.
The proposal still includes nearly $20 million in additional contributions from the city. Employees would also still contribute a higher percentage from their paychecks, including from overtime hours.