MIDLAND, Texas — Midland Fireman's Relief and Retirement Fund is a pension that was designed to give benefits for life post-firefighting. Over the course of two decades, it has been underfunded by $109 million.
On July 9, the Managing Director of Public Safety and former Fire Chief Chuck Blumenaeur, outlined the condition of the fund, possible solutions and the timeliness associated with them during a public city council meeting.
"We've been working on this funding issue for the last year and a half," said Blumenauer, who also used to serve as the Midland Fire Chief. "I would say it's been a really major topic, but it's a slow process. You have to have actuarial studies done. There's some laws that the city does not have control of."
During the meeting, City Manager Tommy Gonzalez shared there are five possible solutions on the table. One of which includes a potential bond. The timeline for the bond was considered during the meeting.
"I think the progress that was made today was just getting a lot of information out there and getting the timeline on the record because there's some things that have to happen if we choose a bond route," said Blumenauer. "We're not saying we're choosing the bond route, but if we decide that direction, we have some timelines we have to meet and it's a pretty condensed rush timeline."
According to Mayor Lori Blong, the Pension review board has set a deadline of September 2025 to provide a 25-year plan for amortization.
"We are working towards that goal and that deadline, but we'd like to get it solved quicker than that, if at all possible, because we know that the deficit continues to grow as long as this remains unsolved," said Mayor Blong.
The key to a solution, is conversation and collaboration according to Mayor Blong.
According to Mayor Lori Blong, the pension plan for the Midland firefighters was first established back in the 1950's, but the statute that set it up was made back in 1937.
"The fund is required to take a ballot to the firefighters to vote on their benefits. So the firefighters ultimately decided to the structure of their benefits and how that is handled. The actuary and the fund have to agree on that. But 35 times over the last few years, the actuary has said 'you need to make these changes,'" said Mayor Blong. "We now need our actuary and our fund board to come together to propose a ballot to the firefighters to make some of those fund changes."
Fire Chief Blumenaeur shared he is confident city management can reach a resolution.
"As a former firefighter, I understand wanting to understand what your retirement benefit is going to be and wanting to protect that. But I also think there's room for us to make changes on both sides that get us to that goal," Chief Blumenaeur said.
As of July 9, MFD and city have not reached an agreement on a resolution.