Representatives from two unions representing Duluth city employees are calling for the creation of an irrevocable trust fund for retiree health benefits.
Officials with AFSCME and the Duluth police union have scheduled an 11 a.m. news conference today at Duluth City Hall to discuss their plan. They will also challenge Mayor Herb Bergson to fully fund the proposed trust fund.
"Today our union challenges the mayor to fully fund a trust for retiree health benefits," Mary Theurer, field director for AFSCME Council 5, said in a news release announcing the news conference. "Funds from the trust should be invested at higher interest rates to save taxpayers about $156 million."
Creating an irrevocable trust fund that would be managed by the State Board of Investment would require legislative approval. State Sen. Yvonne Prettner Solon, DFL-Duluth, has said she expects passage.
The city's debt for retiree health care is projected at $309 million.
