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A drop in the value of investments in Iowa’s Municipal Fire and Police Retirement System will mean greater expected contributions by the home cities of those departments. Pella City Administrator Mike Nardini tells KNIA/KRLS News that a drop in the pension program that covers Pella’s Fire and Police Departments will mean a 17% increase in the city’s contribution to the pension fund, or approximately $20,000 in the 2011 fiscal year. Nardini adds that the contribution becomes another expense that the city will have to make up in the budget by increasing revenues or making cuts in other areas.

While several cities across the state are enrolled in the Municipal Fire and Police Retirement System, the remainder of city employees are enrolled in the Iowa Public Employees Retirement System, or IPERS, whose pension fund has also taken a hit following declining investments.