EAST ST. LOUIS, Ill. (AP) – Police and firefighter pension funds in East St. Louis are suing the cash-strapped city over millions in missed payments.
The Belleville News-Democrat (http://bit.ly/1OyakcY ) reports that the city owes the firefighters fund $2.46 million and the police fund $1.21 million.
City Manager Alvin Parks Jr. says that East St. Louis is considering seeking a loan to help replenish the funds and its own $5.9 million budget deficit
Granite City attorney Dennis Orsey, who represents the pensioners, says the funds had to tap investment income held in reserve to cover the shortfall. He says the firefighter fund will run out of money in 30 months unless the city fulfills its obligations.
Previous problems with East St. Louis pension payments led to 23 years of state financial oversight that concluded in late 2013.