Justin Graham, Chairman of the Midland Firemen’s Retirement and Relief Fund, provided an update on the pension fund at the Feb. 11 City Council meeting. As of December 31, 2023, the unfunded liability has grown to $120.94 million, and continues to increase. Graham discussed the steps firefighters have taken to address the fund’s financial needs.
“I’m here today to report that firefighters have taken the steps needed to honor the mutual resolutions that the pension board and the council made late last year,” Graham said. “On Sunday the 9th, the preliminary results of the election by firefighters to reduce the liability by 5% of pay we received, and the firefighters overwhelmingly supported the change to fix their pension.” According to Graham, the preliminary report shows that 88% of 194 votes cast were in support of the fix of the pension.
Graham also expressed his gratitude toward the city for their support, but also the firefighters for their sacrifice. “The sacrifice that firefighters made needs to be acknowledged and these firefighters need to be thanked. I personally want to thank every one of them for helping to secure this plan for the future generation of servants to the city of Midland,” he said.
In addition to the pension changes, Graham shared positive news regarding the fund’s performance. “In more good news, I’d like to report that the board’s quick action after receiving the forensic and governance audits and making the investment changes needed, have placed the pension fund at around a 12% return for 2024, which is well above the 7% that is expected. Also, ranking us 37 against 405 pension plans that compare us to, moving us into the top 10%,” Graham explained.
Graham said there is still a lot of work left. “While this fixes the immediate needs of the pension fund, there is still much work to do, and we want this council and the citizens of Midland to know that the firefighters are dedicated to continue to serve Midland and putting in the work to make this plan better and sustainable for the future,” he said.
“We do need to thank the firefighters, and I think it's important for us as a body to recognize the sacrifice that they made,” said Mayor Blong. “These are real dollars that change the future plans that they have for their families, and so, we do recognize and we thank them for that, and we want to acknowledge and show that appreciation,” Blong said.
The board and the council plan to ratify the pension changes Thursday morning. A special called meeting, set for Thursday evening, will also be held to allow the council to respond to the board's actions.
“We intend to move forward with funding immediately after that. We’re handling this as quickly as we can,” said Blong.