Tue January 8, 2013
New contract with Firefighters to cost city over $7 million
OMAHA, Neb. (AP) — Omaha officials have a new contract with the city's firefighters. But it has left the city budget $7.3 million in the red.
Now, officials have to figure out how to pay for it.
Mayor Jim Suttle said Monday that he may recommend tapping into a $5.2 million fund the city created in 2011 to pay legal settlements and a fund created last year to help reduce firefighter pension costs.
City officials say the fire contract that was approved last month should save about $30 million over time by reducing the unfunded pension liability.
The pact increases firefighters' pay, ends pension spiking and increases firefighters' contributions to the pension fund to help offset unfunded liability. It also increases the number of years firefighters must work in order to get a full pension.
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