Minneapolis and its police and fire pension funds have reached a short-term deal to preserve current benefits for retirees while a judge's decision to reduce benefits is appealed, according to pension fund officials.

The case involves a long-running battle between the city and the pension funds over which fringe benefits should be included in the compensation base on which pensions are calculated.

Hennepin County District Judge Janet Poston ruled last year that the funds were using too high a base, a decision that led to cuts in pensions effective Jan. 1. Earlier this month, she said the funds must devise a way to recoup past benefits by next week and start collecting them on July 1.

But pension officials said Poston had approved a deal: the city won't press for recovery of the money during an appeal, and the funds won't implement increases that would otherwise result from police or fire salary hikes.