06-17-2008, 06:27 AM
NMB Needs to go FRS like these other cities and tell the city manager he can pound sand!!!! We dont need Him!!!! WE NEED FRS and NMB will be alot better!!!! LOOk BELOW!!!!
In Miami Beach, where the city is considering cutting the number of firefighters on duty each shift, a typical police officer can retire after 23 years with more than $72,000 in annual pension benefits.
In Hollywood, where residents could be facing higher ambulance fees and a four-day workweek for City Hall, retired firefighters just received $26,000 bonus checks thanks to a provision in their pension contracts.
City leaders throughout South Florida -- serving on the very bodies that made these payouts possible over the years -- are now taking aim at disparities like these as they grapple with big budget holes and pension payouts growing far faster than government bottom lines.
As budget season hits crunch time, the pension battle could emerge as a bruising fight pitting various city halls against retirees and politically powerful unions.
Political leaders say rough economic times require immediate action.
''By taking up more and more of the budget, you actually have less and less for the citizens,'' said Hollywood Commissioner Beam Furr, who has pushed for reform and become the target of union political attacks. ``We have to get a handle on that as quickly as possible because right now it's not sustainable.''
While pensions have disappeared from large sections of the private sector, government employees -- most notably firefighters and police officers -- have seen their retirement benefits balloon as city leaders agreed to approve plush pensions in exchange for short-term salary savings.
As a result, local government employees, police officers and firefighters in many South Florida cities can retire in their 50s on close to their full salaries.
Some retirees get supplemental checks as their pension funds rise. That's how retired Hollywood firefighters pocketed $26,000 checks this spring -- a pension provision fire union representatives say they are willing to reexamine this year.
County governments in Broward and Miami-Dade have largely been spared from skyrocketing pension costs through their participation in the state's larger, more stable retirement system. But for cities running their own pension funds, the costs have been enormous.
COSTS QUADRUPLED
In Fort Lauderdale, the city's pension costs have more than quadrupled since 2000, more than three times the overall general fund budget hike of 87 percent.
It's the same story in Miami, where pension costs peaked at close to $79 million two years ago -- almost four times the cost in 2000 -- before city officials began working with unions to get the numbers under control.
''Long term it would have been detrimental to the city's financial health to sustain that,'' said Larry Spring, Miami's chief financial officer. ``If we were to have maintained that for the next five years, we probably would have had to reduce some staffing and do some serious cutting back.''
In Pembroke Pines, the city borrowed more than $90 million between 2003 and 2004 to pay for improved pensions that allow uniformed employees to retire after 20 years on 80 percent of their working salaries.
In some spots nationally, mushrooming pensions have helped sink the budget. Vallejo, Calif., near San Francisco, declared bankruptcy in May when it could no longer pay for its union contracts.
''It's absolutely not sustainable,'' Fort Lauderdale Mayor Jim Naugle said of the pension status quo.
What caused pension costs to skyrocket?
City and union leaders disagree about who's to blame, but pension experts cite a combination of tough economic times, powerful unions and votes by city officials who bank on union support during election season.
In the late 1990s, the strong market allowed some cities to reduce their pension contributions while continuing to receive a good return, said Keith Brainard, research director of the National Association of State Retirement Administrators.
Some cities also approved expanded pension benefits during the market's upswing, he said.
But when the economy faltered, those pension funds took a hit. Cities were still on the hook.
In older cities, like Fort Lauderdale, those funds must support a larger number of retirees, while the number of active employees -- who also help contribute to the fund -- stays the same. Cities are left to make up the difference.
''It's kind of like a pyramid,'' explained Lynn Wenguer, Fort Lauderdale's police and fire pension fund administrator. ``The ones at the bottom support the ones at the top, but if your top is growing and your bottom is not, it's going to cost more.''
State law generally prohibits cities from taking away pension benefits they have already approved, but city leaders have been looking at other solutions.
In Fort Lauderdale, new general employees will have retirement plans more like the 401(k) plans common in the private sector, where employees contribute most of the money, said Dave Desmond, Fort Lauderdale's general employee pension fund administrator. Those changes will save the city an estimated $100 million over 30 years.
A similar plan has yet to gain ground with the city's police and fire unions. But recent negotiations ended with an agreement to reduce maximum city contributions, saving Fort Lauderdale an estimated $2.2 million.
Miami-Dade localities including North Bay Village, Florida City and Sunny Isles Beach have recently reached agreements with police unions to move from city-run pension funds into the state's retirement system, said John Rivera, president of the Dade County Police Benevolent Association.
STATE SYSTEM
Statewide, about 20 cities have moved some of their employees into the fund since July 2007, said Cathy Smith, bureau chief of enrollment and contributions for the state's Division of Retirement.
At a budget retreat in May, city officials in Miami Beach also discussed moving their employees into the state retirement system.
''It's by far the healthiest pension system that we're aware of; it's a huge pool of people,'' Rivera said. ``It's just a lot less headaches.''
But pension reform can trigger bruising political battles.
Police and fire unions provide coveted endorsements in city elections and their support often comes with campaign donations and an army of volunteers ready to wave signs and greet voters.
After Hollywood's January election, union leaders who backed a losing candidate against Furr filed two ethics complaints against the commissioner, alleging he improperly used two sick days to campaign. Furr called it political payback.
In Hollywood, where union negotiations began in May, the city faces a $14.2 million budget deficit. Yet unions have said they shouldn't be a target and that drastic change could force workers to flee.
''If you want us to remain competitive, you have to pay for wages and benefits,'' said Russ Chard, a representative for Hollywood's fire union. ``If you suddenly say that you can go work here for this other department and have a compensation package worth 10 or 20 times more, what do you think is going to happen?''
But those answers won't sit well with cities looking at layoffs and deep service cuts.
''We're in a jam and we're in it together,'' said Paul Ryder, representing Hollywood in negotiations with the city's general employee unions. ``If the costs are out of control and the taxpayers are demanding relief, we're looking to negotiate something that can provide them relief. . . . Should I report back that your response is that it's not your problem?''
In Miami Beach, where the city is considering cutting the number of firefighters on duty each shift, a typical police officer can retire after 23 years with more than $72,000 in annual pension benefits.
In Hollywood, where residents could be facing higher ambulance fees and a four-day workweek for City Hall, retired firefighters just received $26,000 bonus checks thanks to a provision in their pension contracts.
City leaders throughout South Florida -- serving on the very bodies that made these payouts possible over the years -- are now taking aim at disparities like these as they grapple with big budget holes and pension payouts growing far faster than government bottom lines.
As budget season hits crunch time, the pension battle could emerge as a bruising fight pitting various city halls against retirees and politically powerful unions.
Political leaders say rough economic times require immediate action.
''By taking up more and more of the budget, you actually have less and less for the citizens,'' said Hollywood Commissioner Beam Furr, who has pushed for reform and become the target of union political attacks. ``We have to get a handle on that as quickly as possible because right now it's not sustainable.''
While pensions have disappeared from large sections of the private sector, government employees -- most notably firefighters and police officers -- have seen their retirement benefits balloon as city leaders agreed to approve plush pensions in exchange for short-term salary savings.
As a result, local government employees, police officers and firefighters in many South Florida cities can retire in their 50s on close to their full salaries.
Some retirees get supplemental checks as their pension funds rise. That's how retired Hollywood firefighters pocketed $26,000 checks this spring -- a pension provision fire union representatives say they are willing to reexamine this year.
County governments in Broward and Miami-Dade have largely been spared from skyrocketing pension costs through their participation in the state's larger, more stable retirement system. But for cities running their own pension funds, the costs have been enormous.
COSTS QUADRUPLED
In Fort Lauderdale, the city's pension costs have more than quadrupled since 2000, more than three times the overall general fund budget hike of 87 percent.
It's the same story in Miami, where pension costs peaked at close to $79 million two years ago -- almost four times the cost in 2000 -- before city officials began working with unions to get the numbers under control.
''Long term it would have been detrimental to the city's financial health to sustain that,'' said Larry Spring, Miami's chief financial officer. ``If we were to have maintained that for the next five years, we probably would have had to reduce some staffing and do some serious cutting back.''
In Pembroke Pines, the city borrowed more than $90 million between 2003 and 2004 to pay for improved pensions that allow uniformed employees to retire after 20 years on 80 percent of their working salaries.
In some spots nationally, mushrooming pensions have helped sink the budget. Vallejo, Calif., near San Francisco, declared bankruptcy in May when it could no longer pay for its union contracts.
''It's absolutely not sustainable,'' Fort Lauderdale Mayor Jim Naugle said of the pension status quo.
What caused pension costs to skyrocket?
City and union leaders disagree about who's to blame, but pension experts cite a combination of tough economic times, powerful unions and votes by city officials who bank on union support during election season.
In the late 1990s, the strong market allowed some cities to reduce their pension contributions while continuing to receive a good return, said Keith Brainard, research director of the National Association of State Retirement Administrators.
Some cities also approved expanded pension benefits during the market's upswing, he said.
But when the economy faltered, those pension funds took a hit. Cities were still on the hook.
In older cities, like Fort Lauderdale, those funds must support a larger number of retirees, while the number of active employees -- who also help contribute to the fund -- stays the same. Cities are left to make up the difference.
''It's kind of like a pyramid,'' explained Lynn Wenguer, Fort Lauderdale's police and fire pension fund administrator. ``The ones at the bottom support the ones at the top, but if your top is growing and your bottom is not, it's going to cost more.''
State law generally prohibits cities from taking away pension benefits they have already approved, but city leaders have been looking at other solutions.
In Fort Lauderdale, new general employees will have retirement plans more like the 401(k) plans common in the private sector, where employees contribute most of the money, said Dave Desmond, Fort Lauderdale's general employee pension fund administrator. Those changes will save the city an estimated $100 million over 30 years.
A similar plan has yet to gain ground with the city's police and fire unions. But recent negotiations ended with an agreement to reduce maximum city contributions, saving Fort Lauderdale an estimated $2.2 million.
Miami-Dade localities including North Bay Village, Florida City and Sunny Isles Beach have recently reached agreements with police unions to move from city-run pension funds into the state's retirement system, said John Rivera, president of the Dade County Police Benevolent Association.
STATE SYSTEM
Statewide, about 20 cities have moved some of their employees into the fund since July 2007, said Cathy Smith, bureau chief of enrollment and contributions for the state's Division of Retirement.
At a budget retreat in May, city officials in Miami Beach also discussed moving their employees into the state retirement system.
''It's by far the healthiest pension system that we're aware of; it's a huge pool of people,'' Rivera said. ``It's just a lot less headaches.''
But pension reform can trigger bruising political battles.
Police and fire unions provide coveted endorsements in city elections and their support often comes with campaign donations and an army of volunteers ready to wave signs and greet voters.
After Hollywood's January election, union leaders who backed a losing candidate against Furr filed two ethics complaints against the commissioner, alleging he improperly used two sick days to campaign. Furr called it political payback.
In Hollywood, where union negotiations began in May, the city faces a $14.2 million budget deficit. Yet unions have said they shouldn't be a target and that drastic change could force workers to flee.
''If you want us to remain competitive, you have to pay for wages and benefits,'' said Russ Chard, a representative for Hollywood's fire union. ``If you suddenly say that you can go work here for this other department and have a compensation package worth 10 or 20 times more, what do you think is going to happen?''
But those answers won't sit well with cities looking at layoffs and deep service cuts.
''We're in a jam and we're in it together,'' said Paul Ryder, representing Hollywood in negotiations with the city's general employee unions. ``If the costs are out of control and the taxpayers are demanding relief, we're looking to negotiate something that can provide them relief. . . . Should I report back that your response is that it's not your problem?''