Jacksonville first city in America that offers only 401(k)-style for Police / Fire

[Unregistered]

http://jacksonville.com/news/2017-02-10/major-breakthrough-jacksonville-police-fire-unions-reach-tentative-pension-deal


Police and firefighter union leaders came to a tentative agreement Saturday with Mayor Lenny Curry that paves the way for Jacksonville to become the first major city in America that offers only 401(k)-style plans to all future employees, and moves closer toward a plan that seeks to pay off the city’s staggering $2.85 billion pension debt.

[PENSION / DROP INFO]

The deal will come with a hefty price tag. The proposal calls for across-the-board raises to police and firefighters totaling 20 percent over three years, plus a 3 percent lump sum payout when deals are inked. Telling statement from their President! The (union) has negotiated faithfully and openly a tentative contract that has been long overdue for existing employees.”Really? Existing employees? Eating their young. Short term pay raises and incentives seduced these guys. 401k is unsustainable for retirement purposes, I really hope the voting body realizes this and votes against the plan. Pensions are the only remaining gateway to a real retirement. And shortly after the 3 years they'll get a significant pay cut which will erase the 20 percent raise, then they can keep they're 401ks and sub par salaries

[Unregistered]

What they also are not telling folks is the cost to close that plan will sky rocket the yearly cost to the city/county because of no new money coming in. They are also forgiving 740 million the fund is owed, hopefully the membership will vote it down.