City of Logan fully funds police and fire pension accounts, credits home rule tax
The City of Logan has fully funded both its police and fire pension funds, marking what city officials called one of the city's biggest financial achievements in decades.
City of Logan fully funds police and fire pension accounts, credits home rule tax
Robert Fields | WVOW News
LOGAN Town Accountant Jeff Vallet announced the milestone during the July 14 Logan City Council meeting. He said years of monthly contributions, supported by revenue generated through the state's Municipal Home Rule Program and combined with strong investment returns, were able to completely eliminate the city's unfunded pension liability.
Vallet said the fire pension fund earned a 36 percent investment return over the past year, growing to about $5 million, while the police pension fund returned 40 percent and reached about $3.9 million. He said those gains, along with monthly city contributions and state insurance premium tax revenue, fully funded both pension systems.
Vallet said the city will continue making normal pension contributions. He did note that only five current employees remain active in the police pension system.
Mayor Serafino Nolletti said the city increased its monthly pension contributions from $10,000 per fund to $16,000 before reaching the current level of $20,000 per month for both the police and fire pension funds. He credited the Home Rule Program, which Logan joined in 2019, for providing the revenue needed to make those contributions beginning in 2021.
Nolletti said the city previously faced pressure from the West Virginia Municipal Pensions Oversight Board because of its underfunded pensions. He said failure to meet pension obligations could have resulted in the state withholding city revenue to pay retirees, forcing reductions in municipal services.
City officials said an upcoming report will confirm the final funded status of both pension systems and determine future contribution requirements.
PHOTO | File, YouTube
