Fort Worth council to consider more funds for pension lawsuit

Posted Tuesday, Dec. 04, 2012 0 comments  Print Reprints
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FORT WORTH -- Council members today will consider authorizing another $100,000 in legal fees to the Fort Worth law firm Kelly, Hart & Hallman to represent the city in litigation over changes to the employee pension plan.

Council members are scheduled to vote on the fees to have the firm represent it against a federal lawsuit filed last month in Fort Worth by two police officers -- the current president and a past president of the Fort Worth Police Officers Association.

The council earlier approved paying $100,000 to Kelly, Hart & Hallman to represent Fort Worth in a suit the city filed in state District Court, asking a judge to declare that the changes to the pension plan were legal.

The council Oct. 23 approved significant changes to the pension that cut benefits for future service, rejecting a police association proposal to increase officers' contributions and leave more money in the retirement fund in exchange for retaining the benefits formula. The same day, the city filed its suit. Police Association President Steve Hall, who had warned of costly litigation before the council vote, and former President Rick Van Houten filed their suit in November.

Hall, noting the legal fees, said in a statement Monday that "it just seems counterintuitive to spend that much taxpayer money to reject $13 million in proposed contribution increases and $17 million in estimated savings. And that only represents the impact of the Fort Worth Police Officers Association proposal before any real negotiations had occurred on the subject."

The city, in its suit, also asked the judge to declare that a Police Association vote in which officers decided overwhelmingly to raise their contributions was illegal because general and fire employees didn't participate.

The federal suit accused the city of contract impairment, violation of due process, unlawful taking of property and violating both the U.S. and Texas constitutions in reducing pension benefits for future service.

Arts funding

The council on Tuesday also will vote on forming an Arts Funding Task Force that will look into alternative sources of city funding for the arts and Fort Worth Sister Cities. The council cut arts allocations in approving the 2013 budget.

The nine-member committee would be headed by Chairman Robert Benda, CEO of Westwood Contractors.

Scott Nishimura, 817-390-7808

Twitter: @JScottNishimura

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