Cincinnati city officials have reached a deal with city employee unions and retirees to improve the funding of the $2.3 billion Cincinnati Retirement System, a news release from Mayor John Cranley said.
Among the changes are a three-year cost-of-living-adjustment freeze for current employees and retirees, followed by a 3% simple interest annual increase, a change from the current compound formula.
Also according to the release, “the city will make a larger contribution to the pension annually for the next 30 years.” The amount of that increase was not made available.
The settlement, jointly negotiated under the oversight of U.S. District Judge Michael Barrett, “ensures the pension system will be 100% funded to meet all future liabilities.” Mr. Cranley led an effort earlier this year to bring the parties together to negotiate a settlement under the oversight of Mr. Barrett.
The retirement system’s funding ratio as of Dec. 31, 2012, was 61.3%, according to the city’s most recent available comprehensive annual financial report.
The news release said the “agreement will be codified via a formal settlement agreement which will be signed by all parties and submitted to the District Court” and “it also will resolve various active lawsuits related to the pension system.”
Kevin Osborne, Mr. Cranley’s spokesman, did not immediately return a phone call seeking further information.