Despite the city of Miami's financial woes, its pension funds seem to be doing just fine.
Because the city employees' pension funds are separate from the city finances, folks aren't worried, said Shoaib Khan, controller for the $424 million City of Miami General Employees and Sanitation Employees Retirement Trust.
Late last year, city officials discovered a $68 million shortfall in municipal accounts because of a scandal involving bribes for city contracts. The state now oversees the city's finances, which are in the worst shape in its history.
The employees fund gets about $13 million from the city annually, Mr. Khan said. The city has a choice: Either pay a lump sum Oct. 1, the beginning of the fiscal year, or pay quarterly and add an 8% interest rate to each payment. This year, Miami will pay in quarterly installments.
The city has the same arrangement with the $785 million City of Miami Firefighters' & Police Officers' Retirement Trust. The city will contribute $14.3 million to the fund on a quarterly basis, said fund Administrator Robert Nagle.