Action Required: FCTP Beaches Group makes recommendations about Pensions

[Patricia M. McBride]

The First Coast Tea Party Beaches Group welcomed Duval County City Councilman John Crescimbeni to the February meeting.  The At-Large Group 2 Councilman was a delight with such a good message.  He spoke in a 15 minute time slot and brought concise information and recommendations. 

 Among other topics, Councilman Crescimbeni was asked to speak on the city pension funds and attendees felt he did a good job in explaining the principles of the various pension funds and the inherent problems that face us today with the City’s pension deficits.  The Councilman suggested contacting the Mayor and City Council on the urgency of reform for new hires in all the pension plans. See footnote 1)

In response to questions, he stated that it is time for change on the Fire & Police Pension Board of Trustees because "we don't have a seat at the table”.  The Councilman suggested contacting the Mayor and Council President to suggest a change in Trustees and to ask for three new citizens on the board.  See footnote 2).

Footnotes are added by Beaches Group and meant for clarification:

1. Reductions are not only needed for new hires. Continuing the existing plans have resulted in the billions of dollars in unfunded deficits that Jacksonville currently has on the pension books.  Existing pension plans need to be brought in line with those of the tax payers who are paying the pension bill.  Pensions at any age with 20 year service are not a tax payer norm and should be eliminated.  City Council and other elected officials’ entitlements to pensions after 8 years and mayoral pensions should be eliminated.  Short term jobs in the private sector do not offer pensions.
2. The rules for this Board state “board members can indefinitely succeed themselves”.  It has been reported that one Trustee has served 20 year and another has served 25 years.  While the Trustees may have the best interest of the pension members, more City Council and taxpayer representation would seem feasible.  With pension deficits in the trillions, certainly every option needs to be considered.

Based on the information presented, we would make the following recommendations and have included Email contact info and sample letters below for your use.

Duval County contact information for the Mayor and City Council:  Email addresses: 

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Complete contact information can be found here: http://www.coj.net/city-council/city-council-members.aspx

You can put your Email address on the left side of the Email form and cut and paste the above Email addresses into the right side or "copy to" area on the Email (which will send a copy of your Email to your Email address and one to the mayor and everyone on the city council).

Sample Letter: You are welcome to make changes and personalize; we are only trying to give you some ideas about what could be written.

Sample Letter 1:  Urgent need for Duval County Pension Reform

Mayor Brown, Council President Joost and City Council members,

It is respectfully requested that you take urgent action with a definite path to substantially reduce this City’s spending in the following areas.  As you look over this request, please remember your campaign promises to reduce spending and to be fiscally conservative.

1)     The compelling need for pension plans reform.  Reform has been proposed by various elected officials and taxpayer groups for years and yet no definite and fiscally prudent actions with clear and substantial saving to the taxpayers have been enacted.  Continuances of offered or negotiated pensions have resulted in trillions of dollars of unfunded deficits. 

a)     Significant reductions for new hires and existing pension plans need to be brought into alignment with those of the tax payers who are paying the bills.   Pensions at any age with 20 year service are not a taxpayer norm and should be eliminated, including the fire and police pensions.

b)     City Council and other elected officials’ entitlement to pensions after 8 years and mayoral pensions should be eliminated.  Short term jobs in the private taxpayer sector do not offer pensions.  Although we appreciate the fine work of many elected officials, these short term officials should secure their own independent retirement account as does the private sector for jobs lasting under 30 years. 

c)      If you cannot resolve pension revision in an urgent manner due to  legal or other constraints, it is strongly recommended that Jacksonville privatize (contract out) most City functions.  Privatizing as has been successfully done in other towns which found themselves in the same insolvent position as Jacksonville.   Work that the city does that can be found in the classified directory should be a relative easy contract to the private sector.  

Sample Letter 2:  Urgent Need for Duval Country Pension Reform

It is suggested that after 20-25 years, it may be time for a change in the Fire and Police Pension Board of Trustees. Please consider appointment of three new citizens to that board.  The City Council Rules Committee should consider term limit so that appointees cannot indefininately succeed themselves. While the Trustees may have the best interest of the pension members, more City Council and taxpayer representation is suggested.  

Thank you for your service to this great City. I look forward to your response.

Respectfully,

(Your name/contact information)