The Little Rock Board of Directors on Tuesday approved an ordinance setting a half-salary pension for outgoing Little Rock Mayor Mark Stodola.
The ordinance cites Arkansas Code Annotated 24-12-123, which states that any Little Rock mayor who has served for at least 10 years and is over the age of 60, or any mayor who has served for at least 20 years regardless of age, shall receive half of the mayor's salary at the time of the mayor's retirement for the remainder of his life.
That means Stodola, who will have served 12 years next month and who receives a $160,000 salary, will receive $80,000 annually. Stodola is 69, and his last day in office is Dec. 31.
That yearly amount will come from a combination of contributions that Stodola made to his retirement plan and payments from the city.
Jody Carreiro, an actuary and the city's consultant on its employee retirement plans, said at last week's agenda meeting that paying off that plan would cost the city $60,268 annually for 10 years. That money would come from the city's pension fund. City Manager Bruce Moore said the proposed $210.4 million budget, which city directors also approved Tuesday night, will be amended to take that payment into account.
The provisions of the ordinance apply to Stodola as well as all future Little Rock mayors who meet the qualifications set by state law, according to the document.
That ordinance does not deal with Stodola receiving pay for the accrual of unused vacation days, which City Attorney Tom Carpenter said the board would need to address in a separate ordinance. Due to a city ordinance that strengthened the mayoral office in 2007, Stodola's salary and benefits must be "comparable" to those of City Manager Bruce Moore. Moore's employment contract allows for the accrual of all paid time off to be paid at severance.
After approving the mayoral pension ordinance, the city directors began discussing late Tuesday the issue of Stodola's accrual of unused vacation time.
Read Wednesday's Arkansas Democrat-Gazette for full details.