Fort Smith city officials are considering putting an additional $750,000 per year toward the city’s retirement plan for city police officers and firefighters.
The sum, recommended by city finance director Jennifer Walker, is designed to compensate the estimated $10 million-$20 million liability the city will have to pay out over the next 20 years under the current plan due to officers and firefighters under the old retirement plan. Walker said adding the suggested amount to the current retirement plan budget is estimated to compensate the liability over time as fewer retired first responders are on the old plan.
The city is currently under the Arkansas Local Police and Fire Retirement System. It had an estimated $7.58 million in its Retirement System contribution fund in 2017, according to the financial projection included in the study session memorandum.
City Administrator Carl Geffken said nothing is keeping the city from paying the proposed annual sum, which was discussed by the board of directors at a study session on Tuesday.