01-06-2011, 01:48 AM
I got this from the Miami-Dade PD forum.
Pension Stuff we knew was coming
by One who still cares on 12/28/10 18:36:27
This is from the Professional Florida Firefighters newsletter, we must watch Tallahassee carefully, this could be a tough year.
VOLUME I ISSUE V
Governor Scott Requests Actuarial Study to Reduce Police and Fire Salaries by 5%.....FOREVER
As promised during his campaign, Governor Scott has requested an actuarial study to determine the impact of requiring all state, county, and some city and fire district employees to contribute 5% of their salaries to their pensions.
This will be a 5% salary reduction in every fire fighter and police officer's take home pay.
For state fire fighters, this comes on top of 4 years of zero pay increases and a likely pay freeze again this year for the fifth straight year. This salary reduction will affect the majority of firefighters across the state of Florida.
Special Committee Meets For Pension Reform
The Senate Government Operations Committee held their first committee hearing last week on pension reform and the League of Cities proposed a long list of reforms, primarily affecting Chapter 175 pension plans. Some of the ideas are.....
- The elimination of all presumptive disability for fire and police, i.e. heart and lung, hypertension and infectious diseases.
- The repeal of 99-1 or the "extra benefits" legislation.
- The prohibition of employees serving on pension boards
- The banning of any health insurance benefits for retirees.
The list goes on and on and you can view the video of the committee hearing or review the slide presentation made by the League of Cities by visiting the FPF website, http://www.fpfp.org.
As if a 5% Pay Cut Isn't Enough......
As if a 5% salary reduction is not enough, the following actuarial studies have also been completed or requested in time for this year's legislative session (these actuarial studies are all paid for from the retirement trust fund) and are required before the legislation can be considered. They give a good indication as to what will be considered this session. Other pension changes cannot be made without an actuarial study. Although this list is by no means complete, here are the highlights:
1. Senator Bennet has requested a study on the retirees COLA (Cost of Living Adjustment) reducing it from 3% to the actual COLA, with a cap of 3%. (study pending)2. Senator JD Alexander has requested a new study on DROP funding (study pending)3. A 10% reduction in accrual values (reducing the 3% multiplier to 2.7%) for fire and police (study completed)4. A reduction in the DROP interest rate from 6.5% to 1.3% % (last year the state earned 14.03% interest on employees DROP monies) (study completed)5. Closing the Defined Benefit plan to all new members (study completed)6. Changing the AFC (Average Final Compensation from an average of the best 5 years to an average of the best of 8 years (study completed)7. Increasing the retirement age for Special Risk to age 60 or 30 years of service (study completed)8. Increase the vesting for the pension plan from 6 years to 8 years (study completed)
Why Are We Fixing Things That Aren't Broken???
Florida Retirement Fund up $9 Billion since June.
A recent report issued by the State Board of Administration recently touted the Florida Retirement System (FRS) and the progress it made in the 2009-2010 fiscal year, garnering it a status of one of the nation's best pension plans. FRS earned $9.8 Billion in 2009-10, a 14% return.
FRS didn't stop there.
Since July 1st of this year, FRS has steamrolled its way to an additional $9 billion. This brings the fund's total balance to $118 billion. It is the highest the fund has been in two years, when it topped $125 billion.
How much is the taxpayer really paying for???????
"Over the past 22 years, more than 66% of pension plan payments have been funded by investment gains, not taxpayer dollars" states Ash Williams, Executive Director and CIO of the State Board of Administration.
Pension Stuff we knew was coming
by One who still cares on 12/28/10 18:36:27
This is from the Professional Florida Firefighters newsletter, we must watch Tallahassee carefully, this could be a tough year.
VOLUME I ISSUE V
Governor Scott Requests Actuarial Study to Reduce Police and Fire Salaries by 5%.....FOREVER
As promised during his campaign, Governor Scott has requested an actuarial study to determine the impact of requiring all state, county, and some city and fire district employees to contribute 5% of their salaries to their pensions.
This will be a 5% salary reduction in every fire fighter and police officer's take home pay.
For state fire fighters, this comes on top of 4 years of zero pay increases and a likely pay freeze again this year for the fifth straight year. This salary reduction will affect the majority of firefighters across the state of Florida.
Special Committee Meets For Pension Reform
The Senate Government Operations Committee held their first committee hearing last week on pension reform and the League of Cities proposed a long list of reforms, primarily affecting Chapter 175 pension plans. Some of the ideas are.....
- The elimination of all presumptive disability for fire and police, i.e. heart and lung, hypertension and infectious diseases.
- The repeal of 99-1 or the "extra benefits" legislation.
- The prohibition of employees serving on pension boards
- The banning of any health insurance benefits for retirees.
The list goes on and on and you can view the video of the committee hearing or review the slide presentation made by the League of Cities by visiting the FPF website, http://www.fpfp.org.
As if a 5% Pay Cut Isn't Enough......
As if a 5% salary reduction is not enough, the following actuarial studies have also been completed or requested in time for this year's legislative session (these actuarial studies are all paid for from the retirement trust fund) and are required before the legislation can be considered. They give a good indication as to what will be considered this session. Other pension changes cannot be made without an actuarial study. Although this list is by no means complete, here are the highlights:
1. Senator Bennet has requested a study on the retirees COLA (Cost of Living Adjustment) reducing it from 3% to the actual COLA, with a cap of 3%. (study pending)2. Senator JD Alexander has requested a new study on DROP funding (study pending)3. A 10% reduction in accrual values (reducing the 3% multiplier to 2.7%) for fire and police (study completed)4. A reduction in the DROP interest rate from 6.5% to 1.3% % (last year the state earned 14.03% interest on employees DROP monies) (study completed)5. Closing the Defined Benefit plan to all new members (study completed)6. Changing the AFC (Average Final Compensation from an average of the best 5 years to an average of the best of 8 years (study completed)7. Increasing the retirement age for Special Risk to age 60 or 30 years of service (study completed)8. Increase the vesting for the pension plan from 6 years to 8 years (study completed)
Why Are We Fixing Things That Aren't Broken???
Florida Retirement Fund up $9 Billion since June.
A recent report issued by the State Board of Administration recently touted the Florida Retirement System (FRS) and the progress it made in the 2009-2010 fiscal year, garnering it a status of one of the nation's best pension plans. FRS earned $9.8 Billion in 2009-10, a 14% return.
FRS didn't stop there.
Since July 1st of this year, FRS has steamrolled its way to an additional $9 billion. This brings the fund's total balance to $118 billion. It is the highest the fund has been in two years, when it topped $125 billion.
How much is the taxpayer really paying for???????
"Over the past 22 years, more than 66% of pension plan payments have been funded by investment gains, not taxpayer dollars" states Ash Williams, Executive Director and CIO of the State Board of Administration.