CM Morano questions Comptroller on pension re-amortization vs reserve building

Thank you, Chair.

Sir, for the record, comptroller or controller?

Mark is just fine, Councilmember.

But in general, if you're setting the tone for the city.

I don't want to be put on the record on this because I don't want to upset one of the constituencies.

Fair enough.

All right.

Ask me when I'm not under oath.

OMB testified.

morning that the pension re-amortization is a responsible way to smooth payments over time and improve predictability.

Your testimony characterizes that same action as one of the major reasons where, as you said, kicking a very big can into next year.

What specifically do you believe OMB is getting wrong?

If this pension restructuring is such a concern, what would you have done instead?

I really appreciate the question.

And this is a once in a lifetime opportunity here.

I think there is an argument to smooth out the payment schedule from an accounting perspective.

I would prefer that given this is a once in a lifetime windfall that we use it to build up reserves.

Not to simply plug this year's gap.

And that's an opinion I've expressed repeatedly.

This is ultimately a decision of the trustees, where the labor unions themselves have the dominant vote.

And those votes are now rolling out.

The first very small pension fund, Board of Education and Retirement Services, did vote to approve last week, but this is probably only about

3% of our total assets.

The big funds are still scheduled for the weeks ahead.

So stay tuned for that.

But again, my feeling is there is a justification for smoothing this from an accounting perspective.

But I just want to make sure that we are also using this very unique opportunity.

to build our resilience for the long term.