City Balancing Budget On Backs Of Pensioners

We're starting this game of short-changing contributions to our public safety pension funds all over again. The City of Indianapolis was dealt a big break a year ago when the State of Indiana agreed to pick up more than $400 million in unfunded pension liability the City had incurred years earlier for its public safety officers. The removal of that debt saved the City at least $30 million a year in debt service to repay that obligation. Now we learn that a pension that benefits hundreds of retired Marion County deputy sheriffs has been placed in jeopardy because the City decided to withhold $3 million in contributions to the fund to help balance the budget. WRTV's Jack Rinehart has the details:

Indianapolis budget shortfalls have put the pensions of hundreds of former Marion County Sheriff's Department deputies in jeopardy.

For the first time since the fund was set up in 1963 that the city failed to make its full contribution, 6News' Jack Rinehart reported.

Former sheriff's deputies said they are concerned because the law states that if the government fails to make a minimum contribution for three years in a row, the pension plan is automatically terminated.

You can't make calculated risks on the backs of people who you've already made a commitment to, people who are risking their lives every day, so that your government can run," said Sgt. Rick Snyder, a former sheriff's deputy.

The pension discrepancy began when the Marion County Sheriff's Department and the Indianapolis Police Department merged in 2007, while more than 350 former sheriff's deputies remained under their original pension plans.

That fund lost 26 percent of its value when the economy slowed last year. The city then withheld a $3 million contribution in an effort to balance the budget.

The administration further angered former sheriff's deputies by fully funding pension plans for Indianapolis fire fighters and former IPD officers.

"I would like the opportunity to come to work every single day knowing that I'm going to be treated just like the guy next to me that was a former IPD officer who's now secure in his pension. I'd like to be secure in my pension as well," said Lt. Mike Perkins.

City Controller David Reynolds told Rinehart that the city fully intends to continue funding the pension plan, but that officials want to wait until the economy stabilizes. He said the city will not miss the three-year mark.

"Pension liability is a core service. We have every intention of funding pension liabilities," Reynolds said.

This development provides further evidence as I've discussed before that the City's budget is not truly balanced. We also learned at the Sheriff's Department's budget hearing this past week that it is behind by at least three months, or $4.5 million, in payments to the private operator of Marion County Jail II, Corrections Corporation of America. At the same time, the Sheriff's department went out and made unnecessary purchases of motorcycles and new cars for its deputies.

I've been a long-time critic of the over-generosity of these public-funded pensions for public safety officers. I think it is critical, however, that we always stay current in funding our obligations to these systems so people can fully appreciate just how much they are costing us. Long-term pension reform is critical, but good luck with that effort. The FOP and firefighters' union exert almost complete control over our City-County Council. A number of the council members are public safety officers or are married to a public safety officer and have a vested interest in keeping those plans as generous as possible.