Reichert shoots down Edwards' statement about using pension funds as county 'piggy bank'

Former Bibb County Commissioner Lonzy Edwards accused Macon-Bibb County Mayor Robert Reichert on Thursday of improperly using money from the city-county pension fund to balance the general fund budget.

But Reichert fired back that Edwards' claim was false and reeked of dirty politics. The two men are both running for the Macon-Bibb mayor's seat in the May 24 election.

Reichert said he "vehemently and adamantly" denies Edwards' claim.

"This is the kind of smoke and mirrors Lonzy is trying to use to keep some apprehension and fear in the public," Reichert said.

Reichert's response followed a Thursday afternoon news conference where Edwards said $5 million from the pension plan was funneled into the current general fund budget.

Edwards, who served on the Bibb County Commission from 2007 until 2013, said at his news conference outside the Macon-Bibb County Government Center that the county was using the pension fund as a "piggy bank."

"I think it's time for transparency and high time for honesty and fairness, not just to taxpayers but to the employees whose pensions may be placed at risk," Edwards said.

Reichert said no money has been taken from any pension plan to help balance Macon-Bibb's budget.

Edwards referenced a series of emails from March 2015 that he claims show the county was using a pension trust to pay for general fund expenses. In one email, actuarial firm Cavanaugh Macdonald Consulting laid out four scenarios of how the county could be impacted by the number of people who took part in a recent early retirement incentive program.

Edwards said the first line of the email -- "yes, all 4 of the incentives are paid from the pension trust" -- sent by Cavanaugh Macdonald to Macon-Bibb Human Resources Director Ben Hubbard proves money was taken out of the fund. Macon-Bibb spokesman Chris Floore countered on Thursday that the email to Hubbard does not have any references to $5 million or money being diverted into the general fund.

Floore said because of the early retirement incentives an estimated $1.5 million to $1.7 million from the general fund will be added to the county's three pension funds next fiscal year.

"Because of the success of the early retirement program, we have moved a number of people from general payroll into retirement, where their retirement benefits are paid by the pension fund," he said. "As the result of that success, we actually are contributing more money from general fund to pension fund to cover that liability."

The County Commission acts as the board of trustees for the Macon-Bibb County Pension Plan, and any attempt to move money out of the pension would have to be voted on by commissioners. Commissioner Scotty Shepherd said Thursday evening that he had no idea where Edwards got the $5 million figure and said Edwards is flat-out wrong.

"I don't know who fed Lonzy that information," Shepherd said. "That's not true. We'd have a lot of trouble if we did do that from a fiduciary standpoint. I think if something like that were to happen that each and every one of (the commissioners) would be knocking on the mayor's door."

To contact writer Stanley Dunlap, call 744-4623 or find him on Twitter @stan_telegraph.

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This story was originally published April 7, 2016 at 10:01 PM with the headline "Reichert shoots down Edwards' statement about using pension funds as county 'piggy bank' ."