NEW ORLEANS — The $38.5 million fine levied against Mayor LaToya Cantrell's administration has the city and the Municipal Police Employees’ Retirement System headed to court due to dwindling numbers of the New Orleans Police Department.
According to WWL Louisiana media partner NOLA.com, the state pension system that handles the retirement funds of New Orleans police and other city workers, MPERS, notified the city in 2023 that the NOPD would be deemed "partially dissolved" after a high number of retirements and resignations during the COVID-19 pandemic reduced the size of the force.
Following the notification, the city was required to make additional payments into the pension system to make up for the lack of employee contributions. Those monthly amounts went from $50,000 a year ago to nearly $215,000 last month.
With the last payment in default, NOLA.com reports that MPERS asked Louisiana State Treasurer John Fleming to redirect funds held for the city, which he agreed to do on Aug. 6.
That same day, Cantrell's city attorney sought a temporary restraining against Fleming's office, invalidating the fine and recouping approximately $600,000 already paid.
The restraining order was granted by Chief Judge Wilson Fields temporarily, but it expired on Tuesday. NOLA.com says a hearing was scheduled for Tuesday, but MPERS Executive Director Ben Huxen said it was called off because MPERS was not properly served.
Shortly after the story, the City of New Orleans issued the following statement to WWL Louisiana regarding the discrepancy:
"The bottom line is, the City of New Orleans has paid its bills, but MPERS wants more. The arbitrary penalty in question was never intended to apply to a situation where a city does not intentionally reduce its police department’s size. MPERS is attempting to misapply the law in a way that unfairly penalizes the City of New Orleans for circumstances beyond anyone’s control. The “bill” at issue is on top of the City’s regular pension contributions, which have been paid timely to date, and is for money that MPERS does not need to meet its financial obligations. Further, the law as applied disproportionately affects the New Orleans Police Department. Every citizen/person has a right to challenge a law it believes is unconstitutional, incorrect, or arbitrarily applied. That same right is afforded the City of New Orleans. It is incumbent upon us to be good stewards of taxpayers’ dollars as is our fiduciary responsibility."
To see more on the story from NOLA.com reporter Ben Myers, click here.
