The spike in Milwaukee’s annual pension contribution will be one of the top challenges facing the next mayor — and he or she won’t have much time in office before big decisions must be made.
Next year, current estimates predict the city’s annual pension contribution will increase from about $71 million to about $130 million, according to the city budget office. It is expected to remain elevated for years to come.
The projected increase is driven by factors including a drop in the anticipated future earnings on the city’s pension fund, from 8.24% to 7.5%.
With no solution, a quarter of the city’s workforce could be let go between 2023 and 2025, affecting services the city provides to residents, according to a report from the city’s Pension Task Force.
Author(s): Alison Dirr
Publication Date: 4 Feb 2022
Publication Site: Milwaukee Journal Sentinel