In contentious vote, MTS moves to postpone its pension pain — at a cost of $51M

Local transit officials helped stave off a budget crisis they call a “fiscal cliff” on Thursday by shrinking the amount they’ll contribute to employee pensions over the next seven years by $37.3 million — a reduction of more than 26%.

The move will narrow projected future deficits of more than $100 million a year for the Metropolitan Transit System by freeing up more than $5 million a year to help MTS operate the San Diego trolley and more than 100 bus routes.

But the move, which the MTS board approved in a contentious 12-2 vote, also comes with significant long-term costs for the system and the taxpayers and riders who fund it.

The short-term reprieve was achieved by delaying the scheduled payoff of the pension system’s debt from 2038 to 2045 and by scheduling large annual payments during each of those seven extra years.

MTS officials said Thursday that the higher payments in later years cost more than the savings from the lower payments in early years — ultimately adding $51 million in costs.

That amount — which wasn’t included in staff materials and was only disclosed after repeated requests from the board — was characterized by MTS officials as something to weigh against potential service cuts.

“We have to look at the public benefits we’re trying to preserve,” said Sharon Cooney, MTS chief executive. “This is part of the overall strategy.”

It’s the first time since 2012 that MTS has made the bold move of essentially rebo...