Reality Check: If not Issue 4, what then? - | WBTV Charlotte

Reality Check: Pension reform

CINCINNATI, OH (FOX19) -

"It's a crisis. If not addressed responsibly and early, it could really hurt the city big time," said Mayor-elect John Cranley, talking about Cincinnati's greatest financial burden. No, it's not the streetcar.

It's what to do about the nearly $870 million dollars the city owes to its underfunded pension. The same pension debt that led Moody's to downgrade Cincinnati's credit rating earlier this year.

On Tuesday, voters overwhelmingly said no to Issue 4, the controversial charter amendment designed to turn Cincinnati's public pension from a defined benefit plan to a defined contribution plan, mandating that city leaders pay down the debt within ten years.

But despite the ballot initiative going down in a landslide, those responsible for Issue 4 have the same concerns today as they did before the election.

FOX19 spoke with Chris Littleton, a leading consultant on Issue 4 who said:

"If we don't do something about the pension in Cincinnati, we will end up like Detroit."

Detroit -- the largest American city to ever file for bankruptcy protection is currently in court arguing that the only way out of its financial black hole are the drastically deep cuts to retiree benefits.

While here in Cincinnati, cutting pension benefits is a possibility, Mayor-elect Cranley is seriously considering reducing benefits.

"Reducing benefits on a prospective basis, although it's not politically popular, we've got to do it," said Cranley.

For those who have spent years contributing to their pension, even the slightest cut to their benefits may sound unacceptable. However, consider this: In Detroit, attorneys are trying to convince a judge to allow the city to pay pensioners just sixteen cents on the dollar.

And that's Reality Check.

Sources:

 https://www.moodys.com/research/Moodys-downgrades-Cincinnatis-OH-GO-to-Aa2-from-Aa1-downgrades--PR_277877

http://watchdog.org/89605/cincinnatis-pension-costs-threaten-to-eat-it-alive/

http://www.reuters.com/article/2013/10/25/usa-detroit-bankruptcy-idUSL1N0IF0LG20131025

http://www.yestoissue4.com/

http://mediatrackers.org/ohio/2013/08/05/cincinnati-activists-pension-reform

Copyright 2013 WXIX. All rights reserved.

  • Local NewsMore>>

  • Man wanted in Rite Aid robbery

    Man wanted in Rite Aid robbery

    Monday, September 25 2017 8:37 AM EDT2017-09-25 12:37:28 GMT
    (Source: WBTV/File)(Source: WBTV/File)

    According to the Kings Mountain Police Department, the robbery occurred around 2:28 p.m. at a Rite Aid on East King Street. Police say the man demanded money and fled from the scene heading east on U.S. 74 Business. 

    More >>

    According to the Kings Mountain Police Department, the robbery occurred around 2:28 p.m. at a Rite Aid on East King Street. Police say the man demanded money and fled from the scene heading east on U.S. 74 Business. 

    More >>
  • One seriously injured, extricated from vehicle in southwest Charlotte wreck

    One seriously injured, extricated from vehicle in southwest Charlotte wreck

    Monday, September 25 2017 8:16 AM EDT2017-09-25 12:16:40 GMT
    (Source: WBTV/File)(Source: WBTV/File)

    According to the Charlotte Fire Department, the wreck occurred on Interstate 85 northbound at Billy Graham Parkway. Firefighters tweeted about the wreck shortly before 8 a.m.

    More >>

    According to the Charlotte Fire Department, the wreck occurred on Interstate 85 northbound at Billy Graham Parkway. Firefighters tweeted about the wreck shortly before 8 a.m.

    More >>
  • One killed in Lancaster County crash

    One killed in Lancaster County crash

    Monday, September 25 2017 7:43 AM EDT2017-09-25 11:43:33 GMT
    Nick Bunting | WBTVNick Bunting | WBTV

    Troopers with the South Carolina Highway Patrol said they were investigating this wreck as a fatal collision. 

    More >>

    Troopers with the South Carolina Highway Patrol said they were investigating this wreck as a fatal collision. 

    More >>
Powered by Frankly