ST. LOUIS – A prolonged struggle regarding pension reform culminated in a positive outcome for the city’s firefighters union last Friday. This ordinance, which was initiated in March 2024, required state legislative approval, leading to the city council challenging the mayor’s veto.
The newly ratified measure reinstated a previous pension committee, predominantly comprising firefighters, responsible for overseeing the current firefighters’ plans. In contrast, the prior arrangement had transitioned to a board controlled largely by city appointments.
The St. Louis Firefighters Association (IAFF Local 73) has long championed this shift.
Yet, budget officials, including Paul Payne and the former director Darlene Green, issued cautions that such changes could jeopardize the city’s financial stability. This shift, implemented in 2012, sought to manage pension liabilities following substantial market downturns tied to the Great Recession, which had seen pension contributions draining a third of the fire department’s budget.
Former Mayor Francis Slay indicated that a rise in pension liabilities was necessary, as the old system was closed to new entrants while a new retirement plan was devised for upcoming recruits without overly generous offerings. Importantly, those who were already retired or had previously worked within the old framework retained their benefits.
A decade later, however, the firefighters union began advocating for the reversal of some of those adjustments. Two former mayors, Leda Cruson and Tishaura O. Jones, faced opposing bills passed by council members that aimed to restore control over the pension committee to the firefighters. This culminated in the council overturning Jones’ second veto.
According to latest ordinance sponsors, Alderman Brett Narayan emphasized that these alterations won’t affect existing pensions. Moreover, any enhancements in pension benefits would require separate approvals from city council members. Carla Spencer, an Alderwoman at the time, supported Narayan’s bill and successfully nullified Jones’ veto.
Critics, however, argue that the pension committee’s jurisdiction over employment could be problematic. They contend that this shift fosters a more optimistic stance on introducing new benefits while conducting essential research to evaluate the pension fund’s health.
Payne pointed out the old board’s management expenses were significantly higher, potentially allowing for employee bonuses and other perks. Notably, Vicky Grass, the former executive director of the old system, received a substantial payout of $579,210 and a monthly pension of $4,800. It’s worth mentioning that her daughter-in-law, Lauren Glass, serves as the assistant executive director in the previous retirement system.
Revisions to local statutes necessitated corresponding adjustments to state laws for them to be effective. This component was incorporated into two separate bills discussed in the most recent legislative session. Governor Kehoe signed it into law at St. Louis Fire Station headquarters, a venue graced by fire chief Dennis Jenkerson.
This provision formed part of a broader bill encompassing educational support for police, firefighters, and paramedics, alongside other first responders.
