The Midland City Council unanimously adopted a resolution on Nov. 12 to address the funding shortfall in the Midland Firemen's Relief and Retirement Fund, which currently does not meet the 30-year amortization schedule required by the Texas Pension Review Board. The fund supports retirement and relief benefits for Midland firefighters. It faces a growing unfunded liability that currently stands at $120.94 million as of Dec. 31, 2023, according to the most recent actuarial report from Rudd & Wisdom, Inc
Under a resolution passed on Nov. 4, 2024, the Firemen’s Fund proposed to address the deficit by reducing firefighter benefits by 5% and adding an Actuarially Determined Contribution (ADC) arrangement. Firefighters must vote to approve the benefit reductions and the ADC structure.
If the vote passes, the city will provide a one-time lump sum payment to reduce the unfunded liability and bring the Fund into compliance with the 30-year amortization requirement. The ADC is designed to ensure the Fund remains financially stable in the future by providing more predictable contributions from both the city and the firefighters.
In preparation for the vote, Midland firefighters are being briefed on the proposed changes. According to Christy Weakland, Director of Finance for Midland, the vote is expected to take place by the end of December.
According to Midland Mayor Lori Blong the situation is urgent because the funding gap will increase by about $3.5 million each year if not addressed. "It's a very costly thing to defer it longer," Blong said.
The next step is negotiation of a Memorandum of Understanding (MOU) between the city and the Fund’s board. The timeline for finalizing the MOU is currently unknown. However, the City Council said it aims to finalize the overall plan by the end of the year.