May 8, 2014
Mayor Cranley to appear on MSNBC's 'Morning Joe' program
Will be guest Friday to discuss city’s pension fix
Mayor John Cranley will be a guest Friday morning on MSNBC's "Morning Joe" cable TV program. Mayor Cranley is scheduled to appear at approximately 7:45 a.m. on May 9.
During his appearance, Mayor Cranley will discuss the unique mediation process being used to resolve the City of Cincinnati's problem with an unfunded liability in the pension system for municipal workers and retirees.
The appearance is part of the "Cincy In NYC" excursion to New York, from May 6-12. Arts, political and business leaders from Cincinnati are joining together to promote all the amenities the Queen City has to offer for potential tourists, residents and businesses.
Mayor Cranley will discuss how Cincinnati is negotiating with attorneys for City workers and retirees to deal with the $862 million unfunded liability in the Cincinnati Retirement System. Under the Mayor's plan, which City Council unanimously approved in March, a federal judge is overseeing the process so that whatever compromise is reached is binding and cannot be undone in the future.
Most of the unfunded liability is due to the economic crash of 2008 that affected the system’s investments. Quickly rising healthcare costs during the past decade also contributed to the problem.
During the mediation, the City is seeking to change the current compound Cost Of Living Adjustment (COLA) to a simple COLA, up to three percent. Also, the City seeks the ability to suspend making any COLAs for up to five years. Lastly, the City is asking to take up to $100 million from the Cincinnati Retirement System’s health care trust, to help cover the unfunded liability.
If the City is successful, Mayor Cranley estimates the pension system could be completely funded in 15 years.
For more information on the Cincy In NYC trip, visit the website, www.cincyinnyc.com.
For more information, contact Kevin Osborne, Director of Communications, at 513-516-1966 or firstname.lastname@example.org.