NUMB:
990239
VERS:
SUBSTITUTE 1
REF:
XXBY:
THE CHAIR
TITL:
Substitute resolution reserving an additional $100,000 in the 1999 Common Council Contingent Fund (Account No. 0001-9990-0001-C001) for the City Clerk to pay for actuarial work subcontracted by the law firm, Reinhart, Boerner, Van Dueren, Norris & Rieselbach, for purposes related to global pension settlement discussions with unions and retirees.
ANLS:
This resolution reserves an additional $100,000 in the 1999 Common Council Contingent Fund (Account No. 0001-9990-0001-C001) for the City Clerk to pay for actuarial work subcontracted by the law firm, Reinhart, Boerner, Van Dueren, Norris & Rieselbach. The purpose of the actuarial work is for purposes related to global pension settlement discussions with unions and retirees.
BODY:
Whereas, The City of Milwaukee faces potential costs of several million dollars annually as a result of the various pension lawsuits; and
Whereas, There is no unfunded liability in the pension system taken as a whole and there are sufficient surplus reserves available in the pension system taken as a whole to pay the additional liabilities incurred by the system as a result of the losses in pension lawsuits; and
Whereas, The City of Milwaukee has expressed to union presidents, retiree representatives and pension board members that it believes there may be a legal basis to negotiate and enforce a binding agreement on pension litigation and other pension issues; and
Whereas, The City of Milwaukee is presently engaged in discussions with the unions and retirees in order to reach a settlement on pension litigation; and
Whereas, The current and future financial impact of proposals put forth by the City, unions and retirees must be evaluated before such proposals can be discussed; and
Whereas, The City of Milwaukee has retained an actuary firm that has created a financial model that the city can use to evaluate the current status of the pension system and projected costs of any settlement proposals that are presented; and
Whereas, These actuarial activities are being subcontracted by the law firm Reinhart, Boerner, Van Dueren, Norris & Rieselbach, which is acting as a consultant to the city in matters related to global settlement talks; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that the sum of $100,000 be reserved in the 1999 Common Council Contingent Fund (Account No. 0001-9990-0001-C001) to fund actuarial work subcontracted by the law firm Reinhart, Boerner, Van Dueren, Norris & Rieselbach for purposes related to settlement of pension lawsuits; and, be it
Further Resolved, That up to $100,000 of the reserved funds may be expended for the purpose stated above with the approval of the Budget Director.
DFTR:
Budget and Management Division
Ref:99009(06): EDW:nme
May 4, 1999
Finance:990239r.doc