If the city of Pittsburgh can't shore up its slowly collapsing pension fund, the job would fall to James B. Allen.

On Monday, Mr. Allen, secretary of the Pennsylvania Municipal Retirement System, said that what has been billed as a state takeover wouldn't be as hostile as it sounds. Sure, the city would have to increase the amount of money it puts away to cover pensions, he said -- but likely not until 2015.

The city would not lose control over benefits, he said. And the city would get less expensive administration of its pension investments from the state system, which handles some 900 smaller pension funds.

Mayor Luke Ravenstahl's administration, though, continues to fear that the state system would make budget-busting demands of the still-distressed city. The mayor wants to lease the city's parking garages and meters to a private operator that would pay as much as $452 million.

With no precedent for a state seizure of a pension fund, a takeover "is not something that we want to take a gamble on," said city Finance Director Scott Kunka. Whether now or later, state control could entail sacrifices equivalent to a 10 percent cut in city services or a 22 percent property tax hike, he said.

Mr. Allen brushed aside talk of dire consequences.

"It would not be imminent disaster. Clearly, it would be a shock to the system, but that shock to the system would be something they'd have three years to prepare for."

Last year, the General Assembly passed pension law changes that gave Pittsburgh until Jan. 1, 2011, to boost its retirement fund to half of the level of its long-term obligations. Those obligations are $990 million, but the fund only held $272 million at last count.

If the city can't boost the fund to nearly $500 million -- the goal of Mr. Ravenstahl's plan to lease parking garages and meters -- then the state system would be charged with running the fund. Local governments opting into the state system include Monroeville, Wilkins, Bridgeville, Carnegie and Clairton.

The state system invests money on behalf of its client municipalities and assumes it will earn an average of 6 percent a year. The municipalities have to pay in according to state formulas aimed at ensuring they can cover their obligations to past and present employees.

Similar formulas cover other cities, including Pittsburgh, but those that manage their own pension funds can assume different earnings on investments. Pittsburgh assumes it can average 8 percent earnings. Because it assumes strong investment winnings, the city has been allowed to contribute millions less to its pension fund than if its estimates were more conservative.

Mr. Kunka said that a takeover would force the city to increase its annual contribution to its pension pool to $72.4 million -- a number Mr. Allen said was credible. The city put $41.5 million toward pensions in 2008 before starting a ramp-up to $49.2 million last year, and $60.1 million this year.

The administration has proposed a $49.9 million pension contribution next year, plus the bulk of the proceeds from a $452 million lease for parking garages and meters. Would-be lessees LAZ Parking and J.P. Morgan Asset Management are set to meet the media today.

"We have a monumental opportunity to address the pension fund," Mr. Kunka said. "Do the monetization deal. Put the money in. Find some extra money [for enhanced payments to the fund] going forward. And you can actually get to a fully funded pension."

Mr. Allen said that if state system is assigned to manage the city's fund starting in September, it would take a snapshot of its health on Jan. 1, 2013, and recalculate its required payments effective in 2015. There's an off chance, he said, that he might hurry up and recalculate payments for 2014.

Mr. Kunka said that regardless of when higher payments would start, they would be more than the city can easily bear.

Mr. Allen said the law leaves the negotiation of benefits to the city. The state would, however, take on the job of administering the investments -- a role he said the state system does for less than 1 cent per dollar managed, versus the 1.7 cents per dollar that the city spends on consultants, fund managers, administrative staff and other costs.

City Council would have to vote to lease meters and is weighing the mayor's plan, a borrowing backed by parking revenue and the prospect of state takeover.

Councilman William Peduto said he would welcome state management of the city pension fund. A one-time contribution from a parking lease, he said, would eliminate a revenue-producing asset without bringing the fund within striking distance of its long-term obligations.

Councilman Patrick Dowd, though, said a state takeover, at a time when the city has no leverage to negotiate the specifics, could be damaging.

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