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Posted: 4:40 p.m. Tuesday, Aug. 14, 2012
By Joshua Zuber
City of El Paso
EL PASO, Texas —
In order to keep El Paso police and firefighter's pension secure, pension officials are suggesting the city add more money.
El Paso City Council members are raising questions as to why more funds are needed.
El Paso firefighters' and police offers' salary is matched 18.5 percent by the city of El Paso.
According to Michael Calderazzo, the chairman of the fire and police pension, they need the city to increase what they already match in order to keep the fund secure.
In order for the fund to stay secure pension officials asked council members for a 4 percent increase for police officers and 2 percent for firefighters.
The contribution would be split between the city and the employees
Calderazzo blames the 2008 downturn.
"This is because of the economic downturn from a few years ago gets smoothed into our assumptions, so when the actuary comes forward every two years and is saying all those hits we took a few years ago. Well, they're starting to show up," said Calderazzo.
Rep. Emma Acosta, who is concerned because she said their pension isn't doing as well as the city's, requested the presentation.
She claims the report that was presented was inaccurate.
In 2006, city council approved more than a $200 million bond to help the firefighters and police pension. Acosta questioned why the money from then doesn't seem seem to be making an impact.
"We've asked them to go back. Meet with the city manager. Meet with the financial individuals. Go through all their plans policy, so that they can actually make their funds whole," said Acosta.
Acosta told KFOX14 she's concerned that future firefighters and police officers will not get a pension because of the way money is being handled at this time.
The city manager's office was instructed to conduct an independent review of fire and police pensions' presentation.
Review of Texas' law regarding the city's charter on capping annual contributions was recommended to the city manager's office.
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