Wheeling Fully Funds $140 Million in Police, Fire Pensions, Saving Millions With 2020 Bonds
Updated
Updated · Wheeling Intelligencer · Aug 25
Wheeling Fully Funds $140 Million in Police, Fire Pensions, Saving Millions With 2020 Bonds
1 articles · Updated · Wheeling Intelligencer · Aug 25
Summary
$83.0 million in fire pension assets and $57.7 million in police assets have left both Wheeling funds fully funded, city officials said, with a $5.74 million bond contingency reserve adding another cushion.
The turnaround came after Wheeling sold $42.19 million of pension obligation bonds in 2020, a strategy it helped enable under state law and used before higher interest rates shut out other West Virginia cities.
Annual pension-related debt service was $2.19 million as of June 30, versus $4.96 million under the 2020 optional plan and $8.09 million under the older alternative method, according to City Manager Robert Herron.
The city started from a far weaker position: in 2002, the two funds held just $6.84 million combined, were about 5% funded, and faced more than $61 million in unfunded liabilities.
Wheeling remains the only West Virginia municipality to use the bond approach, though officials said others could follow if interest rates fall back below the actuarial threshold that makes the financing work.