"Someday there's going to be a whole lot of people retiring and we won't have the money to deal with it": mayor
The city of Calgary is facing an $83-million shortfall in pensions and other unfunded obligations to city employees, according to a report in the Calgary Herald.
The city has a responsibility to pay about $156 million in pensions, post-retirement benefits, vacation time and overtime. But it only has $73 million in the budget to cover those expenses.
The total amount owing was $116 million in 2001 but it rocketed to $156 million in 2002. Figures for 2003 are not yet available.
“If we keep up this trend, we’re going to owe over $200 million soon,” said Calgary Mayor Dave Bronconnier. “We’re going to break the bank if we don’t start financial planning to address these issues. Someday there’s going to be a whole lot of people retiring and we won’t have the money to deal with it.”
One example of the problem facing the city is the supplementary pension plans for top officials and aldermen. City aldermen and senior officials do not make contributions into these supplementary plans.
The overcap plan, which includes police and fire chiefs and their deputies, has an obligation of $4.1 million against no assets, according to confidential documents obtained by the Herald.
The executive pension plan, which covers the CEO and a half-dozen executive officers, has no assets and liabilities of $2.7 million.
And the top-up plan for city aldermen owes $635,000 but has no assets. That’s a total, between those three plans alone, of nearly $7.5 million in liabilities.
The city has a responsibility to pay about $156 million in pensions, post-retirement benefits, vacation time and overtime. But it only has $73 million in the budget to cover those expenses.
The total amount owing was $116 million in 2001 but it rocketed to $156 million in 2002. Figures for 2003 are not yet available.
“If we keep up this trend, we’re going to owe over $200 million soon,” said Calgary Mayor Dave Bronconnier. “We’re going to break the bank if we don’t start financial planning to address these issues. Someday there’s going to be a whole lot of people retiring and we won’t have the money to deal with it.”
One example of the problem facing the city is the supplementary pension plans for top officials and aldermen. City aldermen and senior officials do not make contributions into these supplementary plans.
The overcap plan, which includes police and fire chiefs and their deputies, has an obligation of $4.1 million against no assets, according to confidential documents obtained by the Herald.
The executive pension plan, which covers the CEO and a half-dozen executive officers, has no assets and liabilities of $2.7 million.
And the top-up plan for city aldermen owes $635,000 but has no assets. That’s a total, between those three plans alone, of nearly $7.5 million in liabilities.
