FIREFIGHTERS, CITY LEADERS CELEBRATE RETIREMENT FUND AGREEMENT

• Firefighters make sacrifices to help make solution possible

(Feb. 13, 2025)

MIDLAND, TEXAS -- City leaders, Midland firefighters and the Midland Firemen’s Relief and Retirement Fund board have made official a funding agreement that will protect the fund for current and future firefighters.

The agreement, which was voted on by the firefighters and approved by both the MFRRF board and Midland City Council, calls for:

- an increased employee contribution of 5% of annual pensionable payroll,

- a City of Midland cash infusion to the Fund in the amount of $54,442,231 to be applied toward the unfunded liability,

- increases or decreases in the Actuarily Determined Contribution shall be shared between the city and the Fund’s membership based on a 2:1 (city-to-firefighters) ratio,

- the Fund to have its actuary conduct an actuarial valuation that shall determine the ADC requirement for the following calendar year. 

- the Funds amortization period to be 30 years.

The agreement and subsequent votes put an end to a multi-year discussion of the plan, which showed a total unfunded liability of $120.942 million as of Dec. 31, 2023, according to an actuarial report performed by Rudd & Wisdom, Inc. 

The agreement allows firefighters to keep intact most of a generous retirement – one that many stated was a reason they stayed with Midland Fire Department. The cash infusion also saves taxpayers up to $60 million in potential bond debt payments.

“After years of discussions and tough decisions, we’ve reached a crucial agreement on the Midland Fire Department’s pension fund,” Midland Mayor Lori Blong stated. “With a $121 million shortfall looming, our firefighters stepped up in a big way—agreeing to a 5% pension benefit reduction to help stabilize the fund for the long term.

“This wasn’t an easy choice, but it was the right one. As Justin Graham, Chairman of the Midland Firemen’s Relief and Retirement Fund, shared, our firefighters understood the need for change and worked alongside city leadership to find a responsible solution.”

At-large Councilwoman Robin Poole, who helped lead in conversations during the process, stated, “I am incredibly grateful that the City of Midland and our dedicated firefighters have worked together to resolve the long-standing challenges faced by the firefighter pension fund. This accomplishment has taken years of hard work, patience and dedication from all involved, and I am thankful all the efforts have finally culminated in a wholistic solution.”

The final agreement was just the final part of the sacrifice and collaboration made to get both sides across the finish line before a state-recommended deadline of September 2025. 

Firefighters and their families sacrificed in the fall of 2023. Steps taken include voting to not have overtime count toward retirement and changing the way retirement is calculated (based on a member’s last 60 months rather than the member’s “highest 60 months” of earnings. Both steps helped lay the foundation for a partnership to fix the fund.

Poole added, “I want to extend my deepest thanks to our hardworking firefighters and their families. Even in the face of uncertainty, they have continued to serve our community with unwavering commitment - their sacrifices do not go unnoticed.

“This resolution is a reminder of what we can accomplish when we come together for the good of our community. The security and support this agreement bring to both the city and our firefighters is sure to provide a sound foundation for long-term stability, trust, and the continued safety of our community.”

In December 2023, the Midland City Council voted to increase the city’s employer contribution rate to the Midland’s Firemen’s Relief and Retirement Fund from 22.2% to 24.2%.

“This agreement protects our firefighters and their retirement benefits, and it also saves Midland taxpayers over $60 million in interest alone, not to mention the payments that would have come with a pension obligation bond,” Blong stated. “I’m incredibly grateful to our firefighters, city staff, and leadership for their dedication in reaching a solution that puts Midland’s future first. This agreement is the kind of teamwork that makes our city strong.”