Missouris Supreme Court declined a rehearing on a decision that orders the city of St. Louis to fully fund the $740 million St. Louis Police Retirement System and the $430 million Firemens Retirement System of St. Louis, based on the amounts calculated by its actuary, confirmed Daniel Tobben, attorney for the firefighters system.
The suit, originally filed in 2003, claimed the city had breached its legal obligation to pay $18.5 million into the firemens pension fund for fiscal years 2004 and 2005. The Supreme Court ruled in favor of the retirement systems in mid-March and upheld that decision May 1 after the city filed a motion for a rehearing.
The city contended it did not have to pay the full amounts certified by the PRS and the FRS because they provide enough money to cover the benefits owed, according to the ruling. The court, however, said the city cannot evade its responsibilities to the PRS and FRS.
Mr. Tobben said that although the ruling covers only two fiscal years, the city might agree to pay the plans a total of $90 million which would also fulfill its responsibility for fiscal years 2006 and 2007 to avoid further litigation.
"My office is working with our financial advisers, the budget division and other officials in preparation to comply with the final outcome from the courts," city Comptroller Darlene Green said in an e-mailed statement. "It is my goal for the city to establish a plan that ensures benefit availability while creating a funding mechanism the city budget can support.