It was believed the CSA would eliminate the endless argumentative positions among the City, retirees, and future retirees.  CMERA could now focus on its business practices and how it could better serve its members.  Unfortunately, some of the details of the CSA (like the Health Care Trust funding policy and the point system for determining current employees health costs in retirement) required additional protracted negotiations.  In addition, the City unilaterally initiated several changes in the health care that retirees believed did not meet the terms of the CSA. 

So, while CMERA remained active in communicating these changes to its members, the organization embarked on a mission to become more professional.  By the end of 2020, CMERA had officially established itself as a tax-exempt organization (501)(3)(c).  An operating budget was created for the tax year 2022.  The Governing Board began the task of exploring new income sources.  After nearly six months of research, an investment account was established so funds not immediately needed for day-to-day operations could earn a higher rate of return for CMERA.  Then, yearly filing of Federal and State income filings became necessary.  (Note: as a not-for-profit charitable organization, CMERA pays no income taxes, but it is still required to file returns.  In addition, CMERA is required to pay a $50.00 yearly filing fee with the State of Ohio.)

In 2022, CMERA conducted a review of its financial controls to ensure compliance with best practices of similar organizations.  That study was followed by an assessment of CMERA’s insurance coverage.  As a result of that insurance review, newer policies were obtained to better protect its assets.  A record retention schedule was also approved during this period.  This established a time period that records were to be maintained and a procedure to dispose of records no longer needed.  Another important step to enhance the professionalism of CMERA was an updating of the Constitution and Bylaws.  Now known as its Governing Documents, this set of papers provided a strong testament to the level of professionalism sought by CMERA.

By the start of 2023, the lack of progress on settling remaining issues mentioned in the CSA and differing interpretations of some provisions of the CSA continued.  Perhaps the most critical issue was the status of the pension trust fund.  One of the goals of the CSA was to have a fully funded pension trust fund at the end of thirty years.  For the past eight years, the City contributed 16.25% of its full-time payroll to this fund.  The 16.25% was one amount established by the CSA, but it wasn’t the only amount.  The CSA also provided for an alternative amount determined by an actuary firm to ensure achievement of the fully funded goal.  Despite the likelihood of not achieving the fully funded goal, the City maintained it contribution rate at 16.25% during that period (2015-2023).  So, funding the pension trust remains an issue requiring resolution.  Other outstanding issues remaining in 2023 include:

  • Violation of the “carve-out” provision
  • Changing healthcare plans without negotiations.
  • Failure to create a point system matrix for health care premium determination
  • Creation of a health care fund funding policy 
  • Problems with the drug prescription program
  • Issues with some retirees needing to pay an IRMAA fee (an income-based fee imposed by Medicare) for the drug program.
  • Repayment plan for attorney fees
  • DROP (an early retirement program) not being cost neutral to the pension fund.

Note: Some of the issues listed above impacted all plaintiffs while some issues impacted only some plaintiffs.  The settlement of issues such sometimes varies based upon a plaintiff’s employment status at the time as defined in the CSA. 

These issues were brought to the court for resolution. 

After several years of focusing on enhancing the business nature of CMERA, 2023 saw the organization take steps to better manage costs.  A new printer/mailing contractor was found for the newsletter.  Only active (dues paying members) were sent the newsletter.  The reduction in the number of newsletters also reduced postage. 

With the release of the City’s draft budget for 2024-2025, the same 16.25% contribution of payroll to the pension trust fund was recommended.  Members of CMERA along with members of the Governing Board attended budget hearings and spoke to encourage a greater contribution.  City Council did approve a 17% contribution rate for 2024.  While not a rate that would resolve the pension fund shortfall, it was the first official acknowledgement that the pension trust fund needed more funds.  For the 2025 budget update, the City increased the rate to 17.75%.

In 2024, the City received the Cincinnati Futures Commission Report.  This document established a number of goals such as creating more housing, growing employment, increasing wages, and retaining more businesses.  To achieve these goals, the Commission made a series of recommendations.  One such recommendation was transferring the CRS to the Ohio Public Employees Retirement System (OPERS).  To accomplish this recommendation, the Committee proposed monetizing the Greater Cincinnati Water Works.  The resulting funds could then be used to supplement the pension fund in its transfer to OPERS. 

Meanwhile, after nearly 9 years of off and on negotiations, the parties involved in the CSA agreed to settle some of the outstanding issues.  The parties agreed to a funding policy for the health care trust fund, a repayment schedule for attorney fees, and a point-system matrix to determine retirement healthcare premiums.  The other outstanding issues remain.

As we near the middle of the decade, CMERA remains dedicated to the retirees of the City just as it has for the past 44 years.