Midland Firefighter Pension Trustees discuss, defer plan for pension fund

The Midland Firefighter Pension Trustees met on Oct. 30 to discuss a plan to improve funding of the pension system that supports retired area firefighters. The pension is currently short of funding to meet retirement obligations to the City of Midland’s firefighters.

The proposed plan, called the Funding Soundness Restoration Plan (FSRP), is designed by the state to help pension funds struggling to meet their obligations to retirees.

A resolution proposed by the Midland Firemen Retirement and Relief Fund (MFRRF) notes that the fund does not have a set date for paying off its financial obligations and acknowledges the city’s contributions, including funding for forensic and governance audits. The resolution also states that the city has increased its contributions by two percent.

The resolution states that the firefighters have made changes to the plan they say will cost 7.1% of their current compensation, while the city’s obligation is projected to grow by an estimated $3.5 million this year.

The fund must be in compliance with state laws by Sept. 1, 2025, putting pressure on the city and firefighters to resolve any differences. Changes will be contingent upon the city adjusting the fund’s amortization schedule to a minimum of 30 years, in compliance with state statute.

The resolution also suggests transitioning to an Actuarially Determined Contribution (ADC) rate, allowing employee contributions to fluctuate by three percent while maintaining a minimum employer contribution of 12%, with no maximum limit. Both the city and firefighters have previously agreed to this transition.

During the Oct. 30 meeting, Graham said the proposed resolution is simply “stating that this is the intention of the fund." He also said that it reflects the same information as a previous Memorandum of Understanding (MOU) between the city and the firefighters. “There is nothing different compared to what was in the MOU that would cost the city any more money.”

Mayor Lori Blong, who sits on the board of trustees, raised concerns about the proposal during the meeting. “This is really difficult for us to vote on today when we are seeing it for the first time when there has been other communication with the actuary for nearly a month,” she said.

Blong requested that the proposal be deferred for 72 hours. A motion to defer the agenda item was approved. The resolution is set to be published on Nov. 1. A special meeting is scheduled for Nov. 4 at 2 p.m. to continue discussions.