TU: Options are limited for Jacksonville's ailing pension plans

[Patricia M. McBride]

It is time for folks to get involved in this.  Our city council knows we have a serious problem as does the mayor.  They can work to try to solve the problem, but if they do that, they need the support of the taxpayers and residents of Duval county, because you may rest assured the impacted group will have a huge showing at city hall.  We can no longer leave our city council and mayor out there blowing in the wind if they make the right decisions and work to do the right thing to straighten out the mess everyone else has "just kicked the can down the road" on.  Please, please get on board for this issue!

 

November 16, 2011

By Timothy J. Gibbons 

Options are limited for Jacksonville's ailing pension plans

The importance of changing the city’s pension system can’t be overstated, Jacksonville labor attorney Derrel Chatmon said last week in the midst of fraught negotiations with the local police union. “There’s no question that pensions will outline the future of the city,” Chatmon said.

The question now is what that future will be.

As Mayor Alvin Brown embarks on what he has said would be a major focus of his administration, he has few levers to pull. Over the past 10 years, benefits for workers were increased and not paid for, while more recently, a down economy dropped the three city funds’ returns far below expectations.

With pension fund reserves long empty and billions of dollars needed to prepare to pay for future retirees, reducing current workers’ benefits may be left as the only option.

The administration embarked on the first step toward changing the system earlier this month, when it requested reams of information from the Police and Fire Pension fund, the largest of the city plans.

“We’re teeing up,” said Jacksonville Chief Financial Officer Ronnie Belton, who said the pension situation is one of the two issues that take up the bulk of his attention. “We want to have the necessary information. We want to make sure we answer all the concerns.”

Woes across country
Jacksonville is not alone in facing pension woes: Across the country, cities, counties and states have struggled with the issue.

Earlier this year, voters in Hollywood, Fla., approved sweeping cuts to city pensions, leading to a lawsuit by the police union. Miami Beach also has made moves toward modifying its benefits. Meanwhile, state pensions have been cut — with changes including when workers vest and requiring them to contribute — moves estimated to save about $1.2 billion.

Read the rest of the article and see charts at Jacksonville.com: http://jacksonville.com/news/metro/2011-11-16/story/options-are-lim...