Pension study stirs talk of libel lawsuit

One city director questioned whether a libel lawsuit should be filed against the publishers of a study that found Little Rock taxpayers contribute the highest share of their tax revenue to public pension plans compared with 172 other cities across the country.

At-large City Director Dean Kumpuris said at a Little Rock Board of Directors agenda meeting Dec. 10 that the study hurt the city’s reputation. City officials have said the study’s methodology is flawed and that Little Rock should actually be 22 in the ranking.

The city isn’t moving forward with a lawsuit as of yet, and City Attorney Tom Carpenter said it’s unlikely to happen.

City Manager Bruce Moore said at the meeting that he has another plan to handle the situation.

“[The researchers] are lumping everyone together in this study. It’s not just the city: it’s the county, it’s the school district, it’s all inclusive. What I was thinking about doing was writing this professor and laying out the facts from our perspective and seeing what type of reaction we get,” Moore said.

The study by Boston College reported Little Rock taxpayers sent 17.6 percent of their tax revenue to public pension plans in 2010, a figure the study’s authors say shows the total cost paid by city residents to not only city-administered plans but also those of school districts and counties as well.

Little Rock officials said the study used an inflated figure for the amount the city paid into pension plans in 2010. Using the actual amount spent by the city on all pension plans that year, the city’s rank would have dropped to the 22nd-highest taxpayer contribution.

“I would have to have a whole lot more information to think that the city needed to sue this outfit,” City Director Stacy Hurst said in response to Kumpuris’ suggestion. “What [the Arkansas Democrat-Gazette article about the Boston College study] did for me is cause me pause. Because when we look at the budget and I see the ever-expanding cost of our people, I’m worried about it. And even if they used the right numbers, Bruce, that still put us pretty high up there.

“I would like to see a bit more of an analysis from your point of view and your staff’s point of view.”

Moore said he would provide that to city directors in the forthcoming weeks.