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Thu September 9, 2010
MAST Pensions Could Cost $40 Million
Kansas City, MO – Ever since the city started talking about taking over the ambulance service about three years ago, it has promised MAST workers they would get a retirement system comparable to that of other public safety employees crediting the time they have worked for the non-profit ambulance service.
With 320 of those employees now working for the city, City Manager Troy Schulte says it could cost the city up to $40 million to fund that pension plan.
Schulte told the council committee that advanced the proposal, "If everyone currently employed at MAST, and that came over as of April 25th, 2010, retires from the system that would be the... the actuarial projection of the financial exposure to the city."
The money could be paid out over ten years.
And the amount isn't expected to be nearly that large. 25 percent of MAST employees say they prefer a defined contribution 401-K type plan that would expose the city to less liability.