Trustees move to protect bus drivers' pension

A pension board for Colorado Springs bus drivers went to court this week, concerned that proposed service cuts in the wake of a defeated tax hike could impact their retirement fund.

Lawyers for the fund’s trustees obtained a temporary restraining order Wednesday to block any transfer of the fund over the next 10 days.

Even before the final votes were counted, the pension trustees anticipated the defeat of ballot measure 2C, which would have raised money for city expenses by raising property taxes. They filed a complaint Tuesday seeking a court ruling on whether sponsorship of the pension fund can be transferred to the city.

Currently, the pension fund is sponsored by First Transit Inc., a contractor for bus services in Colorado Springs.

City officials had said they would have to slash 63,000 hours of bus service if 2C failed. The four-member board of trustees of the Springs Transit Company Employee’s Retirement and Disability Plan fear that means the city will discontinue its contract with First Transit.

If that happens and the city takes over as sponsor, the trustees are concerned about what will happen to the fund.

The pension fund was established in 1973. It was funded by a combination of employer and employee contributions.

According to the trustees’ complaint, the plan calls for a benefit of $50 per month for every year that a driver works for the city. That means a bus driver with 20 years experience would get a pension of $1,000 per month by age 62.

However, the complaint claims the pension’s assets currently are underfunded and will fall short by $5 million of the amount needed to pay those benefits.

The city attorney’s office did not oppose the temporary restraining order, according to an e-mail supplied by Ed Gleason, a lawyer for the pension trustees.

William A. Rogers, a lawyer for First Transit, called the restraining order request premature because the city had not moved to cut the transit service or end its contract.

Robert Mack, senior attorney for the city, said Thursday that he had just received a copy of the complaint and would be reviewing it.

Fourth Judicial District Judge David Prince granted the temporary restraining order. The court set a Nov. 13 hearing on whether any further action is warranted.