Police And Fire Pension Problems

By: Mireya Garcia

Colorado Springs- Assistant City Manager Mike Anderson says police and fire departmentpensions are a ticking time bomb. A poorly performing fund means the city is having to pay more than ever for its share.

The amount of money going from the city’s operating budget to cover the police and fire pensions is increasing- an estimated 11-million dollars between 2008-2011, but the city isn’t the only one who’s taking a hit. In a meeting last month fire fighters were told their contribution rates for the pension plans would go up to the legal cap.

Jeremy Kroto of the Colorado Springs Professional Fire Fighters Association says, “I know I’ve been contributing 8% and I’m going to be contributing 10% so I’ve been doing my part. The rest of the firefighters have been doing their part to contribute as well.”

Fire and police pension plans are directly proportional to the state of the stock market.

Kroto says, “the one we are acting on right now is the one that was composed when the market was at its lowest in 2008.”

The Fire Fighters Association did say they are surprisedthat Anderson would make his ‘ticking time bomb’ comment on police and fire pensions on his way out.

“The most recent pensions were around during Anderson’s tenure as assistant city manager…it’s a little bit suspicious that we are only hearing about his concerns now,” says Kroto.

The fire department has three different pension plans, but it is still unclear which plan Anderson was referring to.