¾-¢ Police-Fire Pension Sales Tax Renewal
April 8, 2014
In April 2014, voters will be asked if they would like to repeal the 3/4-cent Police-Fire Pension Sales Tax. The ballot language is required by State law to ask whether the tax should be repealed. Springfield’s police-fire pension plan was $200 million underfunded in the past, and Springfield citizens voted in 2009 to implement a ¾-cent Police-Fire Pension Sales Tax to help address this community need.
The pension plan now is 67% funded, still below the 100% funded level necessary for a “closed” pension plan to be sustainable.
If the pension sales tax is renewed in April, it could be fully funded by 2019 or sooner.
The proposal before voters April 8, 2014 is a renewal of an existing sales tax with no additional cost to taxpayers. A significant portion of the new revenues for this program come from non-residents.
Continuing the Pension Sales Tax Will:
- NOT increase or change the sales tax rate.
- Help the plan reach 100% funding, fulfilling a commitment citizens made to police officers and firefighters more than 60 years ago.
- Prevent a shortfall that would require the City to reduce public safety and many other public services.
Official Ballot Language
“Shall the City of Springfield, Missouri, repeal the pension sales tax imposed at the rate of three-quarter of one percent (¾-cent) for the sole purpose of providing revenues for the Springfield Police and Firefighters Pension System, with said tax to sunset upon the earlier of A) five (5) years from the date of the commencement of collection of the renewed pension sales tax, or B) the Pension System fund reaching a fully-funded (100%) status as determined by an independent actuarial study conducted for the Pension System Board of Trustees?
(Note: A "Yes" vote ends this tax and a "No" vote continues this tax.)