CITY OF FORT LAUDERDALE

POLICE AND FIREFIGHTERS’

RETIREMENT SYSTEM
WWW.FTLAUDPFPENSION.COM

FLORIDA PENSION NEWS STORIES ON POLICE AND FIREFIGHTERS

Prepared by Fred Nesbitt, Director of Public Information fnesbitt911@gmail.com February 28, 2010

State pensions: Bad deal for public

By Mike Thomas, Orlando Sentinel, February 13, 2010

If I had my life to live over, I would work for the government. I would be a bureaucrat, a paper shuffler, a
guy who stands behind the counter and gets to you on my own sweet time. Even better, I would be a
firefighter. A buddy of mine who has retired from a local department had considered leaving to go to
medical school. But because he was smart enough to do it, he was smart enough not to do it.
He decided to stay on, get the pension, start another career, and make just as much money as a doctor with
a lot less hassle. Now he's living the dream. Such is life on a defined pension.

My Word: A model pension plan

Reply to article by Mike Thomas (see above) by Ray Edmondson, FPPTA, Orlando Sentinel, February 24,
2010

Mike Thomas gets one thing right in his Feb. 13 column, "State pensions: Bad deal for public," in that he
seems to have some grasp of the defined-benefit pension concept. Where he goes wrong is arguing for
401(k)-style accounts as the best alternative to defined-benefit retirement plans; but he goes deep into foul
territory by implying that public-employee pension benefits are responsible for Orange County's fiscal
woes or are a threat to taxpayers.
Thomas fails to inform readers of critical information about retirement benefits of both types, choosing to
ignore facts that show 401(k)-style accounts have significant limitations in providing long-term security
and offer much higher financial risk and hidden costs for taxpayers.

4 candidates seek 2 seats in Pembroke Pines

By Jennifer Gollan, South Florida Sun-Sentinel, February 18, 2009

Four candidates vying for two seats on the Pembroke Pines City Commission promise to help the city
manage a potential budget deficit and control ballooning pension costs but differ over how best to
accomplish these goals. All the candidates agreed the city needs to curtail existing benefits, such as
employee pension costs, and must renegotiate with its unions. The city this year is budgeting $38.4 million
for pensions and $9.4 million for retiree health care. Castillo said he voted to give city employees a
pension boost in 2004 based on an actuarial study that turned out to be wrong. "The advice was a lot rosier
than it should have been," Castillo said. Beginning three years ago, lower than expected returns on the
city's pension investments forced the city to put aside more money each year under the 2004 agreement.
Can't give state workers generous benefits while axing important programs for
Floridians
Editorial, South Florida Sun-Sentinel, February 14, 2010

Legislators looking to make ends meet in Tallahassee this spring should take a close look at state
employee benefits. Most state workers still get cheap health care and pay nothing toward their pensions.
Raising their contributions closer to the level paid by workers outside state government could generate
real savings. State employees in Florida also aren't required to contribute to their pensions. They still have
access to a defined benefit plan, an option many private employers have abandoned in favor of cheaper
401(k) plans. In Florida, state agencies make a pension contribution equivalent to about 10 percent of
their employees' salaries, according to TaxWatch. If employees split the cost of their pensions, paying the
5 percent that's typical in other public retirement systems, Florida taxpayers could save over $300 million
a year,

West Palm Beach pension gaps a 'time bomb'

By PAT BEALL, Palm Beach Post, February 21, 2010

West Palm Beach city commissioners will tackle an especially vexing math problem: a $40 million
shortfall in the firefighters' pension fund. A Palm Beach Post survey of 26 local pensions reveals a $431
million gap between expected payouts and how much money is on hand for area firefighters, police
officers and city and town retirees. Pensions aren't broke. The checks aren't bouncing. And pension
benefits are paid out over a matter of years, spreading out the shortages.

Talks between Palm Bay, firefighters heat up

By Susanne Cervenka, Florida Today, March 1, 2010

Negotiations between Palm Bay and its firefighters union go this week before a special magistrate to help
both sides reach a contract agreement. The union has agreed to pay freezes and will forgo longevity
bonuses its members had received for the next contract. Local President David Ginsberg said the union
made other concessions with the city to keep costs down for this year's budget. Pension negotiations are
one of the largest differences between the union and the city. "This is a great issue with all of our
members," IAFF Local 2446 Vice President Mike Shervington said. The city wants to reduce benefits and
also change how it puts money into the pensions, creating a "share plan." Now, the city's firefighters have
a "defined benefit" pension based on years of service and the pay they earned during the final years of
their career. Palm Bay wants to change that, so part of the funding is a "defined contribution." The city
would pay a set amount into the fund similar to a 401(k) in the private sector.
EDITORIAL: Keep on cutting
Panama City News Herald, February 28, 2010

Among the issues and actions we’d like to see: State employee benefits. Nearly 35,000 state employees in
upper and middle management — including at least 2,400 employees making more than $100,000 a year
— pay no monthly premiums for their individual or family health insurance. That costs taxpayers an
estimated $56 million a year. Also, state employees aren’t required to contribute to their pensions, which
are generous defined-benefit plans. Just making employees and the state split the contributions could save
taxpayers $300 million a year. It’s hard to justify those perks during lean budget times when private
sector employees are seeing their health insurance premiums go up and their employers reducing
contributions to 401(k) retirement plans. The private sector has sacrificed to survive in a bad economy. So
should the public sector.

Auditor says Ormond finances looking good

By Ray Weiss, Daytona Beach News-Journal, February 21, 2010

The city finance department has received an "A" on its annual report card from the independent auditor
that looked over its 2009 books. But one major area of concern centered on the pension system for
general employees, police and firefighters, where major hits have occurred because of the recession's
impact on investments. In 2008, the pension funds lost $11 million, making back $1.7 million in 2009.
Auditors reported that the pension-fund deficits have risen between 2003 and 2009 from $2.7 million to
$7.4 million for firefighters; $2.9 million to $9.5 million for general employees. Commissioners have
discussed changing the city's retirement system so new hires will be required to make contributions.
The audit indicates pensions are 80 percent funded for police, 77 percent funded for general employees
and 70 percent for firefighters.

Public employees face different kind of risk

Letter to the Editor, Orlando Sentinel, February 24, 2010

Tina Brewer's letter to the editor on Feb. 16 states that public employees receive their pensions after 20 or
30 years without assuming any of the risks that she and her husband faced building their business and
acquiring rental properties. When something goes wrong, who will she call — her real-estate agent, her
lawyer? No, it will be police officers or firefighters. When they arrive, they are expected to face down an
armed thug or maybe a mental patient not taking his meds. None of the risks?

Tampa faces prospect of layoffs and service cuts to trim budget by $27 million
By Janet Zink, St Petersburg Times, February 23, 2010

Preliminary figures show a $10.3 million drop in the city's property tax revenue and a $700,000 decline in
sales tax revenue. Meanwhile, salary costs are increasing by $2.4 million, and contributions to the police
and firefighter pension fund are projected to rise by $5 million.
A letter to the Charter Revision Commission concerning Ethics and the Pension Fund
by Curtis W. Lee, a concerned citizen
Submitted by Stanley Scott, Florida Times Union, February 24, 2010

I recommend that the City adopt a plan to transition from the status quo - DBP’s for most employees - to a
new policy entailing Social Security and DCP’s only, for all employees. Many permutations on such an
idea are possible. That plan will take some time to effect, and would involve many people, and most
details do not belong in the Charter. Nevertheless, the Charter could be amended to adopt the following
provision: that, after 12/31/13, no employee of the City of Jacksonville, or any agency or entity thereof,
shall accrue any benefits under any defined benefit plan.

Florida CFO Sink calls for probe of BofA

Orlando Business Journal, February 8, 2010

Alex Sink, Florida’s chief financial officer and a former executive at Bank of America, has asked other
state officials to investigate potential legal action against the bank Sink said Florida’s pension fund
suffered significant losses with the deterioration of Bank of America’s financial condition. She asked Ash
Williams, director of the State Board of Administration, to direct attorneys to develop an aggressive plan
for litigation against Bank of America and other financial institutions if they have misled Florida’s
pension fund.

Government pension plans are next fiscal crisis

United Liberty (Website for Conservative Campaigns), February 18, 2010

Pension plans helped bring down the auto makers and the airlines. They are budgetary bombs on timers,
set to go off on somebody else’s watch. The Florida Legislature needs to dump our state pension system
while there’s still time. Government workers can do what the rest of us do: Contribute to a 401(k).

Pensions in the form of a 401K a way to get a 'piece of the rock'

By Peter Mallory, New Smyrna Beach, February 14, 2010

There are so many basic problems with pensions that the individual should, if possible, move to get
himself into a personal investment account retirement plan rather than a defined benefit pension. The
foremost example is underfunded pensions that become inoperable when the parent company or political
jurisdiction goes bankrupt. Another example is the pensions that can be taken away at the last minute for
perceived unacceptable behavior.

Changes proposed for Sarasota pensions

By Robert Eckhart, Sarasota Herald-Tribune, February 12, 2010

City pensions of the future will look a lot more like the average 401(k) plan, if commissioners follow
through on a series of cuts and reforms discussed Thursday. The average pension for a retired police
officer is about $43,500 a year, fifth-highest in Florida, state records show. General employees of the City
of Sarasota also fare better than many of their peers statewide.
Suspended Hialeah employee says city's budget has pension gap
By Laura Isensee, Miami Herald, February 28, 2010

Hialeah has kept its finances in the black during the economic crisis, unlike other cities in South Florida.
Yet one former city official said Hialeah underestimated its pension payments for the fiscal year, which
could make its budget bleed red.

A debate emerges as pension costs rise

By Robert Eckhart, Sarasota Herald Tribune, February 11, 2010

The city wants first-rate police officers and has always been willing to pay them with more than just
sunshine. A generous pension plan pays out an average of $43,500 a year to retired police, fifth-highest in
Florida, state records show. And with a 3.2 percent annual bump to cover inflation the pension checks are
guaranteed to get a little larger every year. Now city officials say the worst recession in decades is forcing
them to make tough choices -- and pension reductions for 625 not-yet-retired city employees could be one
of them.

Carlos Migoya sworn in as Miami city manager

By Charles Rabin, Miami Herald, February 26, 2010

Miami commissioners unanimously endorsed the mayor's choice of Carlos Migoya as the new city
manager. Migoya's goal is to help turn around a city in financial chaos. The SEC is examining whether
city leaders accurately disclosed financial information to bond buyers. Miami is looking at depleting as
much as $40 million from its reserves in the next month to close out last year's budget. And worker-
friendly union contracts have left the city on the hook for explosive pension obligations that at the end of
this fiscal year are expected to top $100 million.

Miami Beach Cops Show Solidarity In Contract Talks

CBS Channel 4, February 3, 2010

Miami Beach police made a show of solidarity at city hall Wednesday and made their position clear on a
contract stalemate. Fraternal Order of Police representative Gustavo Sanchez said, "We are willing to help
but certain pension issues we will not budge on." With no contract deal in sight, Miami Beach police say
it is no-go on volunteering for any off-duty work in a week filled with Super Bowl parties. The city insists
public safety is not jeopardized in any way, while the union grouses that officers are being forced to work
mandatory overtime –which they can't refuse—at high profile events. At the core of the labor fight, city
leaders argue a projected $30 million budget hole created by plummeting property values has forced them
to ask for union givebacks.

Frustrated mayors take aim at Tallahassee

By Darcie Lunsford, South Florida Business Journal, February 18, 2010

More than a dozen South Florida mayors gathered at lunchtime Thursday at the Atlantis Country Club to
unveil the “Stop Passing the Buck” campaign. The mayors’ complaints range from increased police and
fire pension costs and higher school taxes to last year’s sweeping growth management law, which, they
claim, loosens development regulations and shifts the cost of roads and infrastructure to support new
projects to local taxpayers.
Tampa budget shortfall persists
By Christian M. Wade, Tampa Tribune, February 23, 2010

With costs rising and property and sales tax revenue predicted to decrease, the city is facing a projected
shortfall of more than $27 million in next fiscal year's budget. Much of the projected shortfall can be
attributed to increases in payroll and pension costs, which have gone up despite layoffs and a wage freeze
this year. Payroll and benefits make up about 80 percent of the city's general fund, about $212 million in
2010. Since 2007, the city has cut its work force by more than 500 jobs.

Facing $3.2 billion state budget shortage, Legislature weighs taxes, jobs, health care
POLLS
By Michael Peltier, Marco Island Eagle, February 27, 2010

Rep. Tom Grady, R-Naples, has sponsored a measure to increase requirements in the Florida Retirement
System to shore up and modernize the state’s pension fund by upping the retirement age from 62 to 65 and
increasing the number of years an employee needs to work to fully qualify.

Eve Samples: Martin County ocean lifeguards deserve high risk designation
By Eve Samples, Vero Beach Press-Journal, February 8, 2010

Despite a number of attempts over the years, the Legislature has failed to grant special-risk status to ocean
lifeguards. That means they are not entitled to the benefits the state gives law enforcement officers,
firefighters and other “high risk” professionals. Chief among them is the ability to retire at age 55 or with
25 years of service, as opposed to 62 years old or 30 years.

Fineout: Let them eat health insurance!

Gary Fineout’s The Fine Print blog, Orlando Sentinel, February 15, 2010
Senate President Jeff Atwater in an interview last week couldn’t have been more blunt. Layoffs of state
workers he said is “unavoidable.” And Atwater, R-North Palm Beach, made it clear that retooling health
insurance benefits and even retirement accounts is also a distinct possibility. Forcing state workers to pay
1 percent of their salary toward their pension would generate an estimated $72 million a year. Florida pays
its employees on average less than employees in such states as Alabama, Louisiana, Kentucky and North
Carolina, according to a presentation made earlier this month by the Department of Management Services
to the Senate Governmental Oversight and Accountability Committee. But that same analysis showed that
other states like Georgia, Kentucky, Louisiana also require their workers to contribute anywhere from 1.25
percent to 7.5 percent to their retirement accounts. Tennessee does not charge employees, while Arkansas
charges nothing for employees hired before 2005 but five percent for those hired after July 2005.