Retirement pensions for municipal employees throughout Texas are in jeopardy.
That's because the Texas Municipal Retirement System is under funded statewide by 400 million dollars. State officials say overtime and bad investments are the reasons for the shortage. And now cities will have to scramble to find funding. City Managers say they are left with some tough options.
"Regrettably admit that some cities may have to cut back on benefits, they are under funded and to continue at the level they are would take tremendous tax increase or some funding level to continue to fund at that level." said Canyon City Manager Glen Metcalf.
Cities face raising taxes, cutting employee benefits or borrowing money to cover the funding shortage. So as baby boomers age and look forward to retirement, they may not receive the same pay out.
"If benefits are reduced as a result of the increased annuity fee the city has to pay, then that can decrease their benefits when they reach retirement age so that's my concern." Metcalf continues.