Pension Contribution - 2007

This is basically to Pat Lynch or anyone else on the pension board. Any preliminary word yet on what range our pension contribution is going to be for 2007? I'm assuming that it's bound to go up some, especially with our low current rate plus the state of the stock market.

The rate for next year (Oct 1) has not been set yet.

As for the current market it has nothing (basically) to do with NEXT year's rate since NEXT year's rate is based on LAST year's earnings.

By the way, LAST year's earnings were above the 10% assumed rate of return so that should be helpful for NEXT year's rate. However, keep in mind that we have to start paying for the 3.15% multiplier that just took effect recently.

Pat, I thought the 3.15 is already being deducted since it was adopted in 2003. You mean we haven't been accessed the new rate yet? What's up wth that.........

Simple, because everything runs a year behind. This year's contribution rate is based on the prior year's numbers. The new multiplier didn't take affect until October 2004 so we haven't started to pay for it yet.

That's why how the market is doing right this minute has NO affect on next year's contribution rate. The amount of money in the pension plan at the end of the day on Sept 30, 2005 is the figure used for calculating our contribution rate to take affect on Oct 1, 2006.

I thought the pension contribution was going up to 2.05% or was that just a rumor?

The pension contribution rate for next year (starting Oct 2006) is 2.05% for employees and 2.75% for the City of Tampa.

This is basically to Pat Lynch or anyone else on the pension board. Any preliminary word yet on what range our pension contribution is going to be for 2007? I'm assuming that it's bound to go up some, especially with our low current rate plus the state of the stock market.


The state of the stock market is absolutely fabulous, new highs everyday!!