Opinion: High cost of pensions straps cities

The three-step method to soaring public pensions in Florida has typically worked this way: 1) Law enforcement union lobbyists tell legislators to increase the formula; 2) Lawmakers ask "how high, " and, 3) Cities and counties get stuck with the bill.

Whether local governments can afford these lucrative retirement plans for deputies and police and firefighters at a time when private companies are shedding pension plans is a reasonable public policy question. But the point this week is that lawmakers are trying to have it both ways. In many cases, they are the ones who have voted to enhance the pension benefits but are now blaming mayors and commissioners for a spending spree.

The pension contributions by no means account for all the extra local government spending in recent years, but their costs far outstrip any general cost-of-living spending cap the Legislature is trying to impose. The Florida Association of Counties reports that pension costs jumped $273-million, or 63 percent, in the past six years. In St. Petersburg, police pensions have jumped 166 percent in the past five years.

The fluctuating financial markets are a significant factor, but the state establishes the level of benefits for all county, sheriff and school employees and many city employees. So when the state decided to include medical technicians and forensics specialists in the category of high risk, for example, it was also sending the bill to counties. High-risk employees receive 90 percent of their salary, along with cost-of-living adjustments, after 30 years of service.

Former Gov. Jeb Bush did try to cut pensions for many state employees, but the Legislature stopped him. Now lawmakers are acting as though pensions are divorced from the rising cost of public safety. At a state gathering of firefighters on Friday, Gov. Charlie Crist went so far as to promise that "not one person" would lose a firefighting job to the property tax cuts now being considered. Does he make the same pledge about their pensions?

Pensions are part of the cost of providing law enforcement in Florida, and lawmakers have contributed to their escalation.

Share your thoughts on this story

Read our guidelines for comments

Comments on this article

by glen	06/17/07 11:24 AM
first of all I contribute quite a bit of my pay to my pension fund and the city also contributes monet that they would be paying into soc. sec. anyway

by Dan	06/13/07 08:24 AM
The Times should have added that St. Pete's pension program was in the red due to "reallocation" of pension funds for years. So, yes, in the past few yrs the court has told them to fix it and it costs some $$. Tell the real reason for the increase!

by John	06/13/07 02:43 AM
U.S. soldiers have so much more risks and their benefits are miniscule compared to these. What does risks have to do with pensions anyway? Should a lion tamer or convinence store clerk have even better benefits?

by Jimbo	06/12/07 10:51 PM
Boo hoo. It's always easy to make promises with other people's money. Brings a smile to my face to see the chickens come home to roost.

by David	06/12/07 03:24 PM
Let's stop the benefits package now and track how many people join the ranks of this profession and compare that to how many that have joined in the past. My prediction - numbers lower than a snake's belly, and I would not have become a teacher...

by Sharon	06/12/07 03:06 PM
Why should a high risk job equate to a 90% pension with cola increases. What is the definition of high risk - that you might lose your life because of the type of job you do? If that's the case then give life insurance, not pensions.

by Tony	06/12/07 01:25 PM
90% do they get SS benefits as well? To the Times, please give us more information when you publish articles. I end up with more question than when I started reading. How much $ more is it costing ST Pete?

by tracy	06/12/07 01:15 PM
i worked with one of the biggest unions in the country.we had to give back several times so the company could survive.i am making it and i know that they(fire and police)could too.when it comes to survival,you'll do anything,even vote for lower taxes

by John	06/12/07 01:08 PM
Pensions are an outdated economic concept and need to go. Take the 7% local Police must contribute to their pensions and invest in 401Ks or 403Bs. Then require contributions for healthcare - no more free rides, taxpayers can't afford it.

by anna	06/12/07 11:49 AM
this reporting is really smarmy you make it sound like the cities are being held at gunpoint - florida is the victim of mismanangement beginning at state and ending at local management

by GrimReaper	06/12/07 10:21 AM
AGAIN LIES ...... take away police and fire ad what do you get .... 1.6% no medical no insurance now are they over paided for 30 years ? SEE the league of citys is only telling the bad side and a county enployee has no choice we are stuck. Grimmy

by Paul	06/12/07 10:05 AM
Out source those services to India-20 yr visas-then pay lower pensions-at India's retirement rate-the process havd saved $ for everything else-as they tell us-why not retirement/pensions?

by pj	06/12/07 09:30 AM
we contribute quite a bit to the pensions....not just the cities paying the tabs...biweekly contribution based on a certain %, sometimes being 65.00 or 200.00 every 2 weeks...

by brett	06/12/07 09:16 AM
When you write your one sided editorial, or when Aaron Shokeford wrote his one sided story in Sunday's Times, why was there no mention from the pension boards point of view. The Times is know for serving the cities stance but this is irresponsible.

by Joe	06/12/07 09:09 AM
1) Law enforcement union lobbyists tell legislators to increase the formula; 2) Lawmakers ask "how high, " and, 3) Cities and counties get stuck with the bill. This is your statment...When was the last increase in the 3%. Get your facts straight.

by JT	06/12/07 08:37 AM
These pension benefits need to be restructured to defined contribution plans and pay needs to be increased. This way taxpayers of today pay the full bill for the service they receive today and service personnel make the money they want NOW!!!

by Wood	06/12/07 08:19 AM
It's about time someone addresses this serious problem. Years ago when police & fire salaries were abnormally low & the jobs were hard to fill, this was a necessary perk. Today it exceeds common sense and needs to be changed!

by Bill	06/12/07 07:58 AM
Pay like the military does. Half your base pay with cost of living each year Not giving them the same amount they were paid or big bonus. Many cops are over paid to sit on their butt! You see them on Central Ave in their golf carts

by John	06/12/07 02:13 AM
What has gone up the most in last 5 years is what needs to be cut the most. They should not be using a knives but hatchets. Local government spending is out of control in Pinellas & St Petersburg, and the spending orgy is over.

by John	06/12/07 02:10 AM
St Petersburg's pension jump is outrageous. The city council approved it, don't blame the FL Legislature. We need to cut salaries, pensions, & benefits not just for police & firemen but for almost all local employees. What has gone up the most in ...