Minneapolis would levy nearly $22 million less next year for the pensions of firefighters and cops in its closed pension plans if a merger deal goes through, city officials told key legislators on Thursday.

City and local pension fund officials outlined terms of the proposed merger into a statewide pension plan for local firefighters and police. The Legislature would have to approve the merger.

It would be effective at the end of the year if the City Council, the boards and members of the pension funds and the state plan's board all ratify a merger.

The deal would raise police pensions to $64,000 by 2015 for those who have worked for 25 years and reached age 50.

One unresolved issue is a bid by firefighters with similar experience to gain parity with that pension level rather than the $62,512 the deal provides.

The Legislature's pension commission, which is advisory but influential, didn't act on the proposal pending some technical revisions, but Chair Rep. Morrie Lanning, R-Moorhead, said an agreement would be amended onto the omnibus pension bill.

The city said its projected 2012 levy of $22.9 million for the closed pension plans would drop to $1.1 million for the police fund alone. The savings occur because the deal provides the city another 11 years to pay off the deficit run up by the two funds and because it assumes higher investment returns and lower salary increases than the city plans.

STEVE BRANDT