Home > News

City council votes to approve pension solution

Posted Dec. 12, 2018

Archived Content Information and links provided may no longer be accurate.

The city council voted to approve the pension plan proposed at last night’s meeting.

Council members voted to approve the plan as follows:

  • For: Mayor Betsy Price, Councilmembers Carlos Flores, Brian Byrd, Cary Moon, Gyna Bivens, Jungus Jordan, Dennis Shingleton and Ann Zadeh
  • Against: None
  • Present but abstained from voting: Kelly Allen Gray
  • Absent: None

The final plan that was accepted by the city council includes increasing contributions from the city and employees, eliminating service credit for future accruals of sick leave and major medical leave, and making changes to Cost of Living Adjustments (COLAs). (More detailed information on each element, and a list of frequently asked questions are being prepared for future distribution.)

Key elements of the proposed pension plan are:

Benefit changes

  • The current COLA has been entirely preserved for the following:
    • Current retirees
    • Any active employees with Blue Service who retire early with a penalty or enter DROP by Jan. 1, 2021
    These members will receive either a simple 2% COLA for their years of Blue Service, or an ad hoc COLA depending on their previous individual selection.
  • COLAs have been eliminated for future service for all employees, starting July 20, 2019. This means that employees with Blue Service will not receive a COLA for their future service after this cut-off.
  • For employees with Blue Service, who do not retire or enter DROP, the COLA for service earned prior to July 20, 2019, will now be variable based on the health of the pension fund for those employees with service earned prior to July 20, 2019, who do not retire or enter DROP. (This variable COLA is highly unlikely to be triggered in the foreseeable future.) Employees with only Orange Service continue to have no COLA.
  • The maximum DROP period will increase from five to six years, effective July 20, 2019, (and contingent on a successful employee contribution increase vote).
  • Note: The minimum retirement age of 55 for future service of blue service General Employees and for all Fire Fighters is no longer included in the proposal.

Contribution changes (Contingent upon a successful employee vote)

  • City will increase contributions by 4.5%
  • Plan members will increase their contributions as follows:
    • General employees: 1.1% + 0.7% (Blue Service)
    • Police/Fire employees: 3.8%
    • Police 25 & out: 0.6%
  • Employee contributions to the pension will be restored for all overtime hours, contingent on a successful vote.
  • The city council adopted a risk sharing mechanism in the event that health of the pension fund is not restored by the actions listed above. City management anticipates that this mechanism will kick in during 2022 if the city/employee/fund's combined contribution is less than what is required to meet the guidelines set for the 30-year amortization period. At that time, both city contributions and employee contributions would increase a maximum of 2% per year for no more than two years, and would be split 60/40 between the city and employees.
  • Below is the anticipated schedule to phase in the changes and the likely timing of the risk-sharing triggers.
Current contributions Contributions as of July 20, 2019* 2020 2021 Risk Trigger: 2022 Risk Trigger: 2023
General employee contributions 8.25% 9.35% (Increase by 1.1% for Orange Service) 10.15% (Increase by 0.8% for Orange Service) 10.95% (Increase by 0.8% for Orange Service)
10.05% (Increase by 1.1% + 0.7% for for Blue Service) 10.85% (Increase by 0.8% for for Blue Service) 11.65% (Increase by 0.8% for for Blue Service)
Police contributions 8.73% 10.53% (Increase by 1.8%) 12.53% (Increase by 2%) 13.13% (Increase by 0.6%) 13.93% (Increase by 0.8%) 14.73% (Increase by 0.8%)
Fire contributions 8.25% 10.05% (Increase by 1.8%) 12.05% (Increase by 2%) 12.85% (Increase by 0.8%) 13.65% (Increase by 0.8%)
City contributions 19.74% (Increase by 4.5% for General & Fire) 24.24% (Increase by 1.2% for General & Fire) 25.44% (Increase by 1.2% for General & Fire) 26.64% (Increase by 1.2% for General & Fire)
20.46% (Increase by 4.5% for Police) 24.96% (Increase by 1.2% for Police) 26.16% (Increase by 1.2% for Police) 27.36% (Increase by 1.2% for Police)
  • Retroactive to PP1 of city’s 2019 calendar year. Please note: Each percentage is active the first pay period (PP1) of the calendar year

The pension solution accepted by city council keeps contributions from the city and its employees as low as possible, protects retirees, keeps the risk sharing mechanism, meets the guidelines for the 30-year amortization period, and keeps discussions about the future of Fort Worth’s pension in Fort Worth, instead of at the state Legislature.

Next steps

Now that council has approved the plan, it will move to an employee vote in February. The date of the vote has been pushed back a month to allow for a robust employee communication and education campaign, which will take place throughout January.

A majority of all employees – 50 percent plus one of all employees, not just those employees who vote – must agree to the proposed employee contribution portion of the plan for the plan to succeed. If the proposed plan does not get a majority of employee votes, it will go to the state Legislature for a final decision.

Get articles like this in your inbox. Subscribe to City News.

City News

Calendar

AD HOC Municipal Court Advisory Committee: 11 a.m. Feb. 18, 2020; City Manager's Conference Room 380, 3rd Floor, City Hall, 200 Texas St.
View the agenda »

HR 101: A Step-By-Step Guide to Hiring and Managing Employees: 11:30 a.m. Feb. 18, 2020; Business Assistance Center - James Guinn Campus, 1150 South Freeway, Fort Worth, Texas 76104.
Register for this event »

Canceled Audit Committee: 1 p.m. Feb. 18, 2020; City Council Conference Room 290. 2nd Floor, City Hall, 200 Texas St.

Fort Worth Local Development Corporation: 2 p.m. Feb. 18, 2020; City Council Conference Room 290, 2nd Floor, City Hall, 200 Texas St.
View the agenda »

City Council Work Session: 3 p.m. Feb. 18, 2020; City Council Conference Room 290, 2nd Floor, City Hall, 200 Texas St.
View the agenda »

City Council Meeting: 7 p.m. Feb. 18, 2020; City Council Chambers, 2nd Floor, City Hall, 200 Texas St.
View the agenda »

Warrant Forgiveness : 9 a.m. Feb. 19, 2020; Chisholm Trail Community Center, 4936 McPherson Blvd.

Commercial Board of Adjustment Work Session: 9 a.m. Feb. 19, 2020; City Council Conference Room 290, 2nd Floor City Hall, 200 Texas St.
View the agenda »

Commercial Board of Adjustment Public Hearing: 10 a.m. Feb. 19, 2020; City Council Chamber, 2nd Floor, City Hall, 200 Texas St.
View the agenda »

Residential Board of Adjustment Work Session: 12:30 p.m. Feb. 19, 2020; City Council Conference Room 290, 2nd Floor, City Hall, 200 Texas St.
View the agenda »

Residential Board of Adjustment Public Hearing: 1:30 p.m. Feb. 19, 2020; City Council Chamber, 2nd Floor, City Hall, 200 Texas St.
View the agenda »

Black History Month Program at Riverside Community Center: 3 p.m. Feb. 19, 2020; Riverside Community Center, 3700 E. Belknap.

Warrant Forgiveness : 9 a.m. Feb. 20, 2020; Atwood's Ranch and Home, 6001 Lake Worth Blvd.

Urban Design Commission Work Session: 10 a.m. Feb. 20, 2020; City Council Conference Room 290, 2nd Floor, City Hall, 200 Texas St.
View the agenda »

Urban Design Commission Public Hearing: 10 a.m. Feb. 20, 2020; City Council Conference Room 290, 2nd Floor, City Hall, 200 Texas St.
View the agenda »

How to work with QuickBooks Online: 11:30 a.m. Feb. 20, 2020; Business Assistance Center - James Guinn Campus, 1150 South Freeway, Fort Worth, Texas 76104.
Register for this event »

Workforce Delivery Systems Committee Meeting: noon Feb. 20, 2020; Workforce Solutions Board Large Conference Room, Suite 600, 1320 S. University. Drive.
View the agenda »

Community Action Partners (CAP) Council: 1:30 p.m. Feb. 20, 2020; Fort Worth City Credit Union, 1st Floor Board Room, 2309 Montgomery St.
View the agenda »

Fort Worth Housing Solutions Board of Commissioners Meeting: 5 p.m. Feb. 20, 2020; F.W.H.S. Administrative Office Board Room, 1201 East 13th St.
View the agenda »

Valentine's Day Party at Greenrbriar Community Center: 5 p.m. Feb. 20, 2020; Greenbriar Community Center, 5200 Hemphill.

Fort Worth Affordability, Inc. Board of Directors Special Meeting: 5 p.m. Feb. 20, 2020; F.W.H.S. Administrative Office Board Room, 1201 East 13th St.
View the agenda »

Sedona Public Facility Corporation: 5 p.m. Feb. 20, 2020; F.W.H.S. Administration Office Board Room, 1201 East 13th St.
View the agenda »

Quadco Management Solutions, Inc. Board of Directors Annual Meeting: 5 p.m. Feb. 20, 2020; F.W.H.S. Administrative Office Board Room, 1201 East 13th St.
View the agenda »

Housing Development Corporation of Fort Worth Board of Trustees Annual Meeting: 5 p.m. Feb. 20, 2020; F.W.H.S. Administrative Office Board Room, 1201 East 13th St.
View the agenda »

Wind Terrace, Inc. Board of Directors Annual Meeting: 5 p.m. Feb. 20, 2020; F.W.H.S. Administrative Office Board Room, 1201 East 13th St.
View the agenda »

Cavile Public Facility Corporation: 5 p.m. Feb. 20, 2020; F.W.H.S. Administrative Offices Board Room, 1201 East 13th St.
View the agenda »

FW Alliance Public Facility Corporation Board of Directors Annual Meeting: 5 p.m. Feb. 20, 2020; F.W.H.S. Administrative Offices Board Room, 1201 East 13th St.
View the agenda »

Desert Ridge & Kilpatrick Avenue Infrastructure Improvements Project Meeting: 6 p.m. Feb. 20, 2020; Harvest United Methodist Church Fellowship Hall, 6036 Locke Avenue.

Canceled Black History Program at Hillside Community Center: 6 p.m. Feb. 20, 2020; Hillside Community Center, 1201 E. Maddox Ave.

Crowley Road & Sycamore School Road Sidewalks Meeting: 7 p.m. Feb. 20, 2020; Harvest Assembly of God Church, 7501 Crowley Road.

Minority and Women Business Enterprise Advisory Committee Meeting: 11:30 a.m. Feb. 21, 2020; James E. Guinn Building, 1st Floor, PharmaFab Conference Room No. 116, 1150 South Freeway.
View the agenda »

Warrant Forgiveness : 9 a.m. Feb. 22, 2020; True Worth Place, 1513 E. Presidio St.

Library to host free Orchestra concert: 2 p.m. Feb. 23, 2020; Fort Worth Public Library, 500 W. 3rd Street.

View the full city calendar and current meetings.