SPRINGFIELD, Mo. (KY3) — Many people are voicing their opinions on the Nov. 5 Police and Fire Pension Fund vote in Springfield.
The current tax, which funds the city’s police and fire pensions, expires at the end of March 2025. Tony Kelly, Springfield police and fire pension fund manager, said an estimated $3.5 million to $6 million a year would be needed to fully fund the remaining pensions. A portion of police and fire department pensions.
“Around 2008, the funded ratio of pension funds at that time was approximately 36%, which means that 36% of the funds needed to cover the liabilities were set aside within the scheme. “From the time the tax was introduced to now, our current pension fund is 94.8% funded,” Mr Kelly said. “By introducing the current tax, we have made great strides in moving this forward and hopefully next year we will be even closer to that 100 per cent funding rate.”
He said there should be no surplus funds once the pension is full.
“Theoretically, this fund would be depleted until the last participant or beneficiary is out of the plan. That could take decades, maybe decades later, 50 to 60 years. “I guess so,” he said.
Lewis Davis, a senior at Southside Senior Center in Springfield, said he plans to vote yes on the topic on the November ballot.
“There is a shortage of police and firefighters in this area, and the community is suffering,” Davis said.
Senior Lucy Geraci said she agrees with Davis.
“I’m voting yes because I know we need to be considerate of them (law enforcement). We need them very much in our community and as I understand this… The way the document is written is going to increase what they get from our taxes, but it will inevitably increase our taxes,” Geraci said.
Kelly said the pension fund needs to be paid for somehow.
“Regardless of whether the tax passes or not, unfortunately we still have to pay the tax,” Kelly said. “The money for that would have to come from elsewhere in the general fund that funds the pension system.”
If approved, one-quarter of the three-quarter cent tax would go toward pensions and other public safety needs. This has no expiration date.
The remaining 1/2 cent goes toward improving the community and disappears after 10 years.
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