FLORIDA PENSION NEWS STORIES ON POLICE AND FIREFIGHTERS

Prepared by Fred Nesbitt, Director of Public Information This e-mail address is being protected from spam bots, you need JavaScript enabled to view it March 31, 2010

Pension Board Stalemate Ends

By Kurt Schultheis, Long Boat Key Your Observer, March 3, 2010

The stalemate that was brewing on the firefighter retirement system board of trustees is over.  The vote at the board's Feb. 24 meeting gives the firefighters the majority of the pension board seats.  Town staff and some residents have questioned whether a firefighter who is collecting his pension should be allowed to make decisions that affect the plan.  [In fact, the new trustee is not retired and not in the DROP program.]

Broward governments urged to consolidate services

By Scott Wyman, South Florida Sun-Sentinel, March 12, 2010

Orlando-based economist Hank Fishkind found that police protection costs 33 percent less for those cities that contract from the Broward Sheriff's Office than for communities with their own police agency. Overall, police staffing in Broward is 60 percent higher than the national average, higher than other metropolitan areas like Los Angeles, Phoenix and San Diego.  Fishkind's report also took aim at payroll costs of local government.   He found that the total compensation package for the average government employee in Broward totals $91,394 compared to $54,439 to the average public and private sector employee. Government health insurance costs for its employees, he said, are twice that of private industry.

Government pensions came under particular criticism.  Fishkind's analysis said Broward governments have a total of $1 billion in unfunded pension liabilities, a looming bill that taxpayers must eventually pay. The city of Hollywood, he said, has unfunded pension costs of more than $2,000 per resident, while Fort Lauderdale, Hallandale Beach, and Sunrise all owe more than $1,000 per resident.

Florida must enact pension reform before inflated retirements bankrupt the state

Editorial, Sun-Sentinel, March 28, 2010

Predictably, a proposal that would reduce future retirement pay for hundreds of thousands of Floridians has irked the ire of union leaders across the state. Nonetheless, state lawmakers are right to push long-overdue reforms, including opening up broader use of retirement alternatives, such as 401(k) plans. 

The current pension system across the state is unaffordable. It has to be pared back.

Tally pushes to slash pensions for cops, teachers and firefighters
By Denise-Marie Balona, Orlando Sentinel, March 24, 2010

Two bills aimed at slashing pensions for Florida's teachers, police and other public employees, as well as requiring some of them to work several years longer before retiring, are being considered by state lawmakers.  Emergency workers no longer would be able to add in their overtime or extra money earned for completing certain training programs. Firefighters alone would lose an average of 30 percent to 40 percent of their pension payout, according to Florida Professional Firefighters Inc.

State's pension fund running a deficit for first time since 1997

By Kris Hundley, St. Petersburg Times, March 24, 2010

Florida's public pension fund slipped into the red in 2009 for the first time in a dozen years. And the fund's shortfall is projected to be even bigger this year. That news has not been as widely publicized.

Pension cuts -- a poll

Sun-Sentinel Poll, March 23, 2010

Should Florida lawmakers cut the pension benefits of teachers, police, firefighters and other workers to help make up a $3 billion shortfall?

Yes. Whatever is needed. Some of those pensions are too generous anyway. (1062 responses)

21%

No. These are the people who teach our kids, save our lives and protect us from criminals. Find other places to cut. (4048 responses)

79%

5110 total responses

Oviedo may cut police, fire raises

By Gary Roberts, Seminole Chronicle, March 25, 2010

Oviedo officials are examining public-safety workers' payroll and pension contributions, which are responsible for more than half of the city's general fund payroll.  One possible cost-cutting scenario calls for the elimination of the annual increases for police and firefighters, a 3 percent boost in employee contributions for police and firefighter pensions, and a 3 percent wage cut for general employees.  Fire personnel currently make an average salary of $92,407 per year, which ranks them among the top-paid fire departments in comparable Central Florida cities. Meanwhile, Oviedo police earn an average of $74,418 annually.

Lawmakers consider pension cuts

Tampa Bay Fox Network, March 24, 2010

Back in 2008, Florida was one of only four states in the nation that could cover its pension costs.  Ask a firefighter, and they'll you they put their lives on the line for more than the paycheck.  Police officers never know if the shift they are working will be their last. But the lucrative pensions that drive many of these first responders through 25 and 30 years of high-risk service are endangered. In Tallahassee, there are bills that would dramatically cut future state pension benefits.

Police, firefighters and taxpayers hit with bill for millions

Tampa Bay Channel 10, March 23, 2010

Firefighters, police and taxpayers in Tampa are going to have to pay millions more than they expected because of increased costs to the pension plan.  Firefighters and police will see almost a double digit cut in their take home pay.  The Public Safety employees were upset they didn't get step increases this year because of budget problems, and now Tampa police and firefighters are learning they have to make a bigger contribution to the pension. It will take an 8 percent cut in net take-home pay.

Defuse pension bombs

Orlando Sentinel, March 21, 2010

In the parade of horribles confronting Florida legislators this year - including a huge budget gap, double-digit unemployment and cash-starved schools - it's easy to overlook the rising cost of municipal pension plans for police and firefighters. Yet the Florida League of Cities accurately describes this problem as "a looming crisis." Others have likened it to a time bomb planted in city budgets.  Here's why: State law forces cities to offer their cops and firefighters traditional pension plans. Cities contribute to a fund, which pays checks to retirees.

End unfunded mandates

By Rodney Long and John Marks, Tampa Tribune, March 25, 2010

This year, the Florida Association of Counties and Florida League of Cities are proposing solutions to reduce these costly unfunded mandates.  Another crippling mandate is the runaway pension costs for police officers and firefighters that threaten to put Florida's cities on a road to financial ruin. These are state-mandated "extra" pension benefits that have already forced cities to spend more than $345 million in tax revenues on new pension benefits since 1999. This is much-needed money that could have gone to provide tax relief for local property owners.

(Rodney Long is president of the Florida Association of Counties and an Alachua County commissioner. John Marks, the mayor of Tallahassee, is president of the Florida League of Cities.)

District lags behind in pension fund; big raise may be partially to blame

Destin Log, March 16, 2010

While the department is making all of its payments on time right now, only 42 percent of the total liability is currently funded. On average, fire departments in the state of Florida have about 80 percent of their pension liability funded.  Several factors play into how much of the department's liability is funded, including how investments are doing and the amount of pay raises that are given out.

Miami's fiscal crisis

Editorial, Miami Herald, March 8, 2010

The challenge will be for the mayor to press the police, firefighters and other unions that endorsed him to accept new contracts that are grounded in today's reality of a severe recession, high unemployment and tumbling property values as foreclosures continue to plague South Florida's housing market. So far, Mr. Regalado, who took a pay cut when he was elected, has set a good example and promised to be tough but fair.  Union pensions aren't the only problem. Their perks in pay for police and firefighters are stratospheric.

Tempers flare at Palm Bay-firefighters talk

By Susanne Cervenka, Florida Today, March 19, 2010

Tensions between Mayor John Mazziotti and the president of the Palm Bay firefighters union erupted Thursday night as the city council discussed changes to a pension board.  At issue Thursday night was a plan to appoint council members to the board that oversees the police and fire pension funds, which is separate but related to the contract negotiations.  City administrators have had a history of problems getting information from the city's pension board, which is independent from the city council, City Manager Lee Feldman said before Thursday night's meeting. Putting council members on the pension board makes accessing that information easier.  The city dropped that ordinance Thursday night after receiving a letter from the state threatening to withhold a portion of money the state gives Palm Bay for pensions, about $1 million.  The letter, addressed from benefits administrator Patricia Shoemaker, says the city can appoint council members, but that the board makeup is outlined in state law and can't be changed.

Deltona, firefighters union at stalemate

By Mark Harper, Daytona Beach News-Journal, March 18, 2010

Nearly a year of negotiations between the Deltona Professional Firefighters union and the city manager have resulted in an impasse.   Kurt Vroman, president of the International Association of Fire Fighters Local 2913, said city officials are choosing to unnecessarily spend $25,000 to $50,000 on outside lawyers and impasse proceedings, rather than come to terms with the firefighters, who he said are offering to forego annual salary increases over the next three years.  However, Orlando attorney Jeffrey Mandel, who represents the city, said the two sides were close to a deal, but the union refused to budge on a holiday pay policy that goes well above and beyond what other city workers receive.

Fee increases in Jacksonville necessary, but 'temper tantrums' likely

By Ron Littlepage, Jacksonville Florida Times Union, March 4, 2010

The city is facing a budget shortfall approaching $70 million for the fiscal year that begins next Oct. 1.

Most of that deficit is attributed to employee costs.  For instance, the city contribution to the employee pension plans in 2003 was $40 million. It now stands at $110 million this year and will increase dramatically in future years.  Peyton is proposing adjusting the pension plans and imposing a 3 percent pay cut for city employees across the board.

North Port faces $6.9 million budget shortage

By Terry O'connor, Sarasota Herald-Tribune, March 3, 2010

Union firefighters are scheduled for a 9 percent raise while police employees will pull in a 5 percent increase. Non-union city employees will get a maximum 3 percent raise.  Police and fire pension increases will take $500,000.

Pension reform may affect the retired of South Florida

By David Volz, Miami Labor Relations Examiner, March 28, 2010

Senate bill 2022 would have Florida Retirement System employees pay 25 percent of their salaries into pension funds. Another bill, House Bill 1319 calls for those hired after July 2011 to pay one percent.

The reason is that a report showed the system is underfunded for the first time since 1998

Forget 2012, funds should worry about 2017: study shows

By Barry B. Burr, Pensions and Investments, March 26, 2010

State pension funds could face a "day of reckoning,", when they run out of assets and have to rely on state general revenues to pay pension benefits, new research shows. The best-positioned state in Mr. Rauh's rankings is Utah, whose pension assets wouldn't be all gone until 2042. Florida's pension funds would last until 2033.  "If we are going to keep providing generous pensions to state workers, taxes will have to rise dramatically in the near future to pay for them," Mr. Rauh wrote in the article. "Alternatively, public employee benefits could be limited to the extent possible under the law, and other spending could be cut. The most equitable solution is probably one in which both taxpayers and public employees share in the pain to some extent. One thing is for certain: to continue ignoring the problem until states run bankrupt is not in anyone's interest."   Keith Brainard, research director of the National Association of State Retirement Administrators, said in response to the study: "His calculation is a bit alarmist."

Is Florida's public pension fund 'going to Vegas' seeking higher risks for higher returns?

By Robert Trigaux, St. Petersburg Times, March 9, 2010

Florida's pension system, the fourth-largest state retirement plan, has been debating how big to make its first hedge-fund investments as it tries to close a 7 percent benefit-payments deficit.  What's driving public pension funds take take on more risk? Trying to preserve that magic "8 percent" return. Most funds believe they can average an 8 percent a year return, assuming stocks will pay 9.5 percent on average, and bonds will pay about 5.75 percent, in roughly a 60-40 mix. I don't know about you, but I have not talked to an investment expert in a long time who says stocks will generate 9.5 percent annually.

Florida pension faces tough choices to pay benefits

By Jim Kim. Fierce Finance, March 25, 2010

A look at what's going on with the state of Florida's public pensions says a lot about the state of public pensions in general, which may amount to good news for hedge funds and private equity funds. Hopefully, this will not ultimately spell bad news for pensioners.  Like many other public pensions, the Florida pension, despite a decent performance in 2009, faces a shortfall when it comes to meeting its obligations to pensioners. By July, according to the Miami Herald, the fund will likely have just 87 cents for every dollar of obligated payouts.

Bill Cotterell: Legislature wrestles with DROP

By Bill Cotterell, Tallahassee Democrat, March 21, 2010

Should the Florida Legislature drop DROP?And just why does the state let employees collect pension benefits while they continue working for five years - or eight, if they're badly needed teachers?  Those are only a couple of the interesting questions raised by a new report from the Office of Program Policy Analysis and Government Accountability, the Legislature's fiscal experts. OPPAGA doesn't recommend things, it just gives the House and Senate a reliable, nonpolitical assessment of their options.  "We estimated that in fiscal year 2008-09, the FRS paid an additional $71.4 million to fund DROP," said the report. "This higher cost occurred because DROP participates retire earlier than they normally would have if the program was not available. This voluntary decision increases the length of time that they draw pension benefits and reduces the number of years in which employers can fund their retirement benefits."

Mayor's Office Floats Hike to City Fees

By Jared Halpern, WOKV(Jacksonville), March 3, 2010

Jacksonville homeowners could see a spike in a whole host of fees, including the price of garbage collection.  In a memo to City Council members, Mayor John Peyton outlines a five-year outlook for city expenses, showing that revenues are expected to grow by about 10 percent but expenses expected to jump more than 30 percent.  Of the $354.4 million in new expenses, more than $250 million is attributed to employee-related costs like health care and pension payments.

Pension time bomb will bring fireworks to Tallahassee

By Michael Mayo, Sun-Sentinel, March 27. 2010

Faced with shortfalls for future state pension payouts, legislators are considering big changes to the Florida Retirement System, the plan that covers more than 650,000 current state, county, municipal and school district workers.  At least three bills that would curb costs and slash benefits are brewing in Tallahassee. Powerful police, fire and teacher unions are angry. And nervous.  Part of me is cheering this overdue effort, especially the proposals that would eliminate the most egregious excesses, like massive overtime racked up near the end of careers counting toward pension calculations for police and firefighters.

Senate budget committee approves pension bill

By Bill Cotterell, Tallahassee Democrat, March 26, 2010

Public employees would start making a small contribution to the Florida Retirement System next year, under a bill approved Thursday by the Senate budget committee.  The vote came over strong objection by employee representatives.  The employee contribution would be one-fourth of 1 percent of gross earnings - about $75 a year for a worker making $30,000 - but Senate Ways and Means Chairman JD Alexander said the state can't continue an entirely employer-paid pension plan. He said very few states don't require employees to chip in something to the pension pot, with contributions ranging from 2.5 to 10 percent.

Legislature: Anti-union or just getting 'Floridians back to work'?

By Dara Kam, Palm Beach Post, March 26, 2010

Hundreds of thousands of Florida workers, including teachers, deputies and state employees, are facing salary cuts, pension reductions and other measures that labor leaders are calling an all-out assault on lower- and middle-class workers by lawmakers.  House and Senate leaders in the GOP-dominated legislature say they are trying to boost a flailing state economy that is forecast to leave the state $3 billion short of the tax revenue it needs next year to pay for the same level of public services it provided this year. With the state's unemployment rate hovering at 12 percent, the lawmakers say their goals simply are to balance the budget and create jobs. But critics accuse lawmakers, particularly Republicans, of hiding behind the bad economy to push through business-backed measures aimed at weakening unions, even though they could hurt Floridians who have jobs and are struggling to make ends meet.

Bill Cotterell: OPPAGA looks at state compensation

By Bill Cotterell, Tallahassee Democrat, March 29, 2010

So no offense to the Office of Program Policy Analysis and Government Accountability, which just cranked out another one of its reliable studies about the size and cost of state employment, but it's not exactly news that salaries and benefits of state employees are pretty good. Not great, certainly not the featherbed that conservative critics seem to imagine, but the total package is passable.  The most interesting part of the report says, "Florida's employee compensation costs are relatively low, compared to most states." That's the part you probably already assumed. But now certified experts with briefcases and pocket protectors and pie charts have clinically documented it.  "Florida's average total compensation cost for state employees was $47,027, which included 74 percent wages and 26 percent benefits; average wages were $34,834," said OPPAGA. "Florida's average state employee wages were ranked 32nd among the 41 states (in the lower quartile) that responded to the survey."

Voters' trust must be earned

By Dario Moreno, Miami Herald, March 24, 2010

Finally, leaders must have the political courage to make tough decisions. The county leadership needs to continue making cuts. For example, drastically reducing the number of county departments would be a good first step.  Another necessary step is to renegotiate union contracts on salaries and pensions or make significant cuts in the number of county employees.  Moreover, if county executives make the necessary personal sacrifices by significantly reducing their salaries and benefits, they will have the moral high ground in requiring sacrifices from their employees.

Sarasota may ask retirees to contribute to health coverage

By Robert Eckhart, Sarasota Herald Tribune, March 6, 2010

It costs taxpayers $6 million a year to provide medical coverage to 630 retired city workers, about half of whom pay no monthly premium.  Sarasota City Commissioners on Friday took a step toward requiring all of the retirees to contribute at least $100 a month -- another in a series of steps to rein in runaway medical and pension costs that topped $13 million last year.

Florida's unfunded mandates

Sarasota Herald Tribune, March 31, 2010

Unfunded mandates affect all Floridians, which is why we believe it's important that they be stopped. A mandate is a program or service that the state or federal government requires local governments to provide, but does not fund. The local community has to spend local tax dollars to pay for the program or service.  The Florida Association of Counties and the Florida League of Cities have proposed a "Local Saving Act" that describes more than a dozen issues that the Legislature could address to reduce the burden on local taxpayers -- without harming the state's budget.

In reply: T-U unfair to city workers

John Keane, Plan Administrator, Florida Times-Union, March 29, 2010

The city saved millions of dollars over the years by electing not to participate in the Social Security System for our public safety employees.  Comparing our pension benefits against a private-sector employee who has a 401(k) plan, but neglecting to include Social Security benefits received by private sector employees, presents an extremely misleading view of the retirement benefits to your readers.

City retirees receive no post-retirement health care benefits; they pay 100 percent of the cost for their medical and dental coverage. Our members have neither a "gold plated" retirement nor health care benefits. Our members contribute more toward their retirement benefits than similar employees in the private sector.

THIS IS AN EXCELLENT EXAMPLE OF HOW TO USE AN OP ED PIECE IN YOUR NEWSPAPER TO MAKE THE CASE FOR OUR PENSIONS

Public-sector pensions serve a public purpose

Time of Trenton (NJ) Op Ed, March 25, 2010

Newspaper editors, reporters, politicians and members of the general public have been having a field day recommending changes to the New Jersey Public Employment Retirement System. Angered at the growing unfunded liability of the pension system and fueled by anecdotal evidence of abuse by a small number of public employees, there is a general outcry for "reform."  Before ripping apart our pension system, it would serve the media and the public to remember that New Jersey's Public Employment Retirement System is not a gift from the politicians to the employees who work for government. By law, a pension is deferred compensation that accrues to its holder. You can't just take away a pension. It is guaranteed by law, and our rights are rooted in the New Jersey and United States Constitutions.