Negotiations between the Midland Firemen’s Relief and Retirement Fund (MFRRF) and the Midland City Council are ongoing, with concerns being raised over proposed changes to firefighter pensions, retention issues, and the overall safety of the community.
The Midland City Council discussed and voted in favor of a pension obligation bond during the July 23 city council meeting, intended to address the MFRRF’s unfunded liability of $120.9 million. While the total liability is $120 million, only an $80 million solution is needed at present to meet the amortization requirements set by the Pension Review Board. The accompanying Memorandum of Understanding (MOU) faced opposition from the MFRRF board, which ultimately voted against it on July 29.
“The MOU was voted down due to a lack of thorough research and potential legal issues," Justin Graham, Chairman of the MFRRF, told Midland Times. "It would have been irresponsible to approve something that hadn’t been fully vetted. The proposal included a 25-year freeze on benefits, and while firefighters are open to measures that limit changes to benefits in the future, a 25-year freeze is unreasonable—especially since we believe that the city would not agree to a similar 25-year freeze on contribution levels. We are asking for balanced negotiations on both sides."
According to Jesse Martinez, President of the Professional Firefighters Association of Midland (PFAM), the Midland Fire Department voted for three firefighters on the pension board to represent their interests. The city formed a separate committee and conducted negotiations at city hall with individuals not involved in the matter. Martinez explained that when the Mayor presented the MOU to the pension board for discussion, she was informed that negotiations were still ongoing, and a lawyer advised against making the MOU public or proceeding further due to the ongoing negotiations. Despite this, the MOU later appeared on the city council agenda.
As negotiations over the MOU continue, concerns extend beyond just the proposed changes.
Firefighter retention has been a longstanding issue in Midland, with the city’s lower-than-average pay scales contributing to the problem. “We are not ‘benefit-rich’—benefit rich with a poor salary doesn’t equate to a total package of benefits,” Martinez said. According to surveys conducted by both the PFAM and the city, Midland firefighters are paid 25% below the average for similar positions in other cities, with some positions showing even larger gaps.
Midland Fire Department has been losing firefighters at an increasing rate. Over the past years, the department has lost approximately 17 firefighters annually. However, in 2023, the department lost 32 firefighters and is projected to lose a similar number in 2024. According to Martinez, five fire personnel have left Midland Fire Department within the last 2-3 weeks, and five additional personnel are in the process of moving departments.
“This is a valid concern for public safety,” said Graham. “We spend a lot of money to train these firefighters, so we are not just losing people, we are losing experience that would have stayed and benefited the citizens of Midland.”
The impact of firefighter turnover on public safety highlights the urgency of addressing the pension funding issues.
Both sides agree on the need to transition to Actuarially Determined Contributions (ADC) to stabilize the fund. “If we solve the legacy debt that has been created, the city’s contributions would actually decrease,” Graham said. He also said that the ADC approach should have been adopted years ago, following the example of other state-funded plans.
An upcoming meeting is being scheduled for final negotiations between the parties. If an agreement is not reached, a plan will be implemented to appoint a mediator, with committees from both parties assisting in the mediation process.
“We want our firefighters to know that we are doing our best to get this remedied so that they get a secured retirement,” said Graham. “The citizens of Midland should also know that we do take into account how this affects them as taxpayers and that we want to provide the best public safety for them. By securing our firefighter’s retirement, that's how the best public safety will be given.”
Martinez spoke similar sentiments. "We are not politicians; we were thrust into this situation," he said. "We are the same firefighters you see shopping for groceries at H-E-B with our own money, the same firefighters you trust to come into your home to care for your children or to fight fires in our community.
“We are dedicated to the citizens of Midland. We are not asking for anything more than to be treated with the same care and respect that we extend to you as residents. I want our firefighters to know that PFAM fully supports them. We are their voice in all matters and will continue to represent them."