Cincinnati wrestles with pension funding shortfall

Published:

CINCINNATI (AP) -- City officials are trying to figure out how to fill a large hole in funding for Cincinnati's pension system.

The Cincinnati Enquirer reports (http://cin.ci/JP5lTv ) the money from investment returns and annual contributions by the city and employees will consistently fall short of the roughly $200 million now paid out in yearly benefits. Next year, about $67 million is needed to keep the long-term situation from worsening.

City Councilman Chris Smitherman called the situation "terrifying" Monday as council members discussed the problem.

Officials face some tough options including cutting retiree benefits, slashing city programs or selling off city assets.

About 75 current and retired employees turned out for Monday evening's work session, with some retirees saying they are on fixed incomes and not in a position to see benefits cut.

___

Information from: The Cincinnati Enquirer, http://www.enquirer.com