Cincinnati Council is ready to endorse a process that would let a federal court mediate a solution to the city's underfunded pension problem. The Budget and Finance Committee voted unanimously Monday for an ordinance to make that happen.
The ordinance would let the city manager negotiate a settlement agreement with various parties on a long-term solution to the pension issue. Right now the retirement system is only 61 percent funded and that will only get worse without some action soon.
A Cincinnati Council member said he had a plan to put the city's retirement system on a path of solvency. Christopher Smitherman introduced his motion Tuesday during a council committee meeting.
One of his proposals is to end the three percent compound cost-of-living adjustments given to most retirees each year. Smitherman would change that to a simple COLA tied to the consumer price index and not exceeding two percent per year. Those adjustments would also be suspended for three years if his plan is approved.
Cincinnati Council could be voting in the next several months on proposals to stabilize the city's underfunded pension system. Some members said the action needs to happen soon, while others said the problem will not be remedied overnight.
The Budget and Finance Committee heard about the issue Tuesday.