Coody says Ferrell's idea on retirement vote is about personality not policy

The Morning News

Local News for Northwest Arkansas


Alderman Wants Mayor's Retirement Plans Changed

By Skip Descant
The Morning News
http://www.nwaonline.net/articles/2008/12/14/news/121508fzcouncil.txt
FAYETTEVILLE -- Retirement plans for elected officials became an issue in the recent Fayetteville mayor's race. And it's an issue still lingering.
Bobby Ferrell, an alderman from Ward 3, wants the Arkansas Legislature to consider amending a state law to allow local voters to decide if they want to extend retirement benefits to their retired mayors for the rest of their life.
State law says a mayor in cities of the first class, which includes Fayetteville, can retire after 10 years in office with 50 percent salary for the rest of his or her life. This plan is paid for by the taxpayers of that city.
"To me that's unfunded mandate," Ferrell told the City Council during its agenda session Tuesday.
The issue of mayoral retirement has never actually come up. It's only been since the early 1990s that Fayetteville has had an elected mayor. And none of them have served more than two terms -- a total of eight years.
Lioneld Jordan, Fayetteville's mayor-elect, signed a notarized affidavit that states he would not participate in this retirement program. Jordan already has a retirement plan through the University of Arkansas, where he worked for 26 years.
Outgoing two-term Mayor Dan Coody has said on more than one occasion he does not plan to participate in the state retirement program, and instead has put money into a retirement plan available to nonuniformed city employees. It's similar to a 401(k).
Coody has not gone so far as Jordan with a notarized affidavit. And since he was not re-elected to a third term, the whole issue would appear moot anyway. But mayors may apply time served on the council to the 10 years needed for vesting.
"Up to two years of the minimum 10 years can be credited from City Council service at the rate of one year's credit for each two years served," said Kit Williams, the Fayetteville city attorney. "To get two additional years service toward retirement, a former mayor would need four years of additional service as an alderman."
Ferrell insists his motives to change the state law are policy driven and not political.
"If I had known about this four years ago, I believe I would have to tried to address it then," Ferrell said Wednesday. "This is a policy issue."
Coody's not so sure.
"It seems to me that it's more about personality than policy," Coody said.
"I'm not timid about coming forth with something that's a good deal," Ferrell added.
The resolution to ask the Arkansas State Legislature to amend the state law has been placed on the consent agenda for Tuesday's meeting.

Meeting Information

Fayetteville City Council

When: 6 p.m. Tuesday

Where: Room 219, City Hall, 113 W. Mountain St.