Midland City Council and Firemen’s Pension Board hold special meetings on retirement fund solutions

The Midland City Council and the Board of Trustees for the Midland Firemen’s Relief and Retirement Fund (MFRRF) held separate special meetings on Nov. 4 to discuss proposals to address the retirement fund’s unfunded liabilities.

In the city council meeting, Midland City Manager Tommy Gonzalez presented his proposal, which would require a cash infusion by the city for the pension fund, with the amount and method for infusion to be determined by the council.

His proposal also includes adjustments to firefighter membership contributions to the fund. Under the proposal, firefighters would increase their contributions by five percent, though this would require approval by a majority vote of the members of the Midland Fire Department. The proposal also would require the city to provide a 2:1 match—meaning for every dollar increase the firefighters contribute, the city would contribute two dollars. However, firefighters’ contribution increases would be capped at approximately three percent, while the city’s contribution could rise to any amount to meet the funding need.

Under the proposal, firefighters would share greater risk through a mechanism that could increase their contributions to the pension system from 14.2% of paychecks to a maximum of 17.2%. Under the risk-sharing mechanism, the city and the firefighters would share responsibility for making sure the pension fund is financially stable.

Any changes are contingent on City Council approval of a cash infusion to ensure compliance with the state Pension Review Board's 30-year amortization requirements.

Mayor Lori Blong expressed support for the proposal. She noted that while the current proposal would help solve the debt and provide continuity for the fund, it does not fully address total compensation or long-term governance concerns.

“What I feel like is before me is an opportunity to solve a debt that is hitting the city’s books,” she said.

Following the council meeting, the MFRRF Board of Trustees, which includes Mayor Blong and city Finance Director Christy Weakland, convened to discuss a funding resolution presented by MFRRF. The resolution was initially presented during the Board of Trustees’ meeting on Nov. 30, but was deferred to Nov. 4 at the request of Mayor Blong to give city officials more time to understand and consider it.

In the trustees meeting, Mayor Blong requested an amendment to the final paragraph of the resolution, which followed a recommendation from the city attorney. The amendment removed a reference to the City of Midland, as it was deemed inappropriate to suggest that the Board of Trustees could bind the city by passing the resolution.

The amendment also clarified that any increase or decrease in the Actuarially Determined Contribution (ADC) rate would be shared between the city and the fund’s membership on a 2:1 basis. Additionally, any change to the fund’s current membership contribution rate of 14.2% would be capped at three percent in a single year. The revised resolution was then passed unanimously by the board.

The board also reviewed findings from the Rudd and Wisdom Special Studies, which examined various methods to achieve the required five percent contribution increase by firefighters. The latest study will be made accessible on the MFRRF website.

Adoption of the proposal requires additional action by the City Council. No new council meetings have yet been scheduled to consider the proposals further.

The firefighter’s pension fund must be in compliance with state requirements by Sept. 25, 2025.
The state pension review board will assess the fund on that date.