Florida Cities, Counties Can’t Afford Promised Pensions
In a recently released study, the nonpartisan LeRoy Collins Institute at Florida State has concluded that many local governments throughout the state cannot afford the pension obligations they have promised to their employees.
According to the Sally Kestin, in a Sun-Sentinel article today, municipal pensions account for more than half the payrolls in Miami, Pembroke Pines and Hollywood.
Called a “time bomb” by the report, and a “catastrophe” by state Senator Jeremy RIng (D-Parkland), the report makes several recommendations to ease the burden – none of which will be good news to those who have had promises made to them.
Read the story HERE.
It should be noted that Palm Beach County government, including PBSO and Fire/Rescue, participate in the state run Florida Retirement System (FRS). Although not fully funded this year, it is in better shape than some states, and Governor Scott has proposed major changes to FRS that will make it much more affordable for participating governments. By our measure, the Scott proposal could save up to $60M per year for PBC, although it will depend on some details that haven’t yet been analysed – particularly the contribution rate for special risk employees if the accrual drops to 2%. TAB will be publishing our estimates in this area in a coming article.