Duluth’s Unfunded Retiree Liability Reduced By $53M
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Bankruptcy was a very real possibility for Duluth 10 years ago, but now the city says it is nowhere near that.
Officials say the unfunded retiree liability has been reduced by $53 million over the past two years.
The total liability is $129 million, which is far less than the 2015 prediction in 2005 at a liability of $417 million.
“Now we are in a place where we have confidence in our ability to pay for this benefit and retirees should have confidence in the benefit that will be there for the rest of their lives,” Mayor Don Ness said.
Ness attributes the turnaround to difficult and controversial actions by the city to control costs and set money aside for the future.