Presentation on theme: "Florida’s Municipal Pensions (and OPEBs): Research from the LeRoy Collins Institute Carol S. Weissert Director of Institute Professor of Political Science."— Presentation transcript:
Florida’s Municipal Pensions (and OPEBs): Research from the LeRoy Collins Institute Carol S. Weissert Director of Institute Professor of Political Science Florida State University October 9, 2013
LeRoy Collins Institute The mission of the LeRoy Collins Institute is to perpetuate the leadership of Governor LeRoy Collins by developing and promoting bold, visionary public policy that will empower and uplift Floridians for generations to come.
Pension Reports Trouble Ahead: Florida Local Governments and Retirement Benefits 2/11 Report Card: Florida Municipal pension Plans 11/11 Years in the Making: Florida’s Underfunded Municipal Pensions 9/12 Looking at Florida’s Municipal Pensions 2/13 Doing It Right: Recognizing Best Practices in Florida’s Municipal Pensions 8/13
OPEB(s) Beyond Pensions: Florida Local Governments and Retiree Health Benefits 12/13
Scope of Problem Many, but by all means not all, municipal pensions in Florida are underfunded Recent trends are toward more underfunding Health benefits are the below-the-radar issue
Average annual retirement contributions for cities is 5.5 percent of their total expenditures
Typical municipal pension plan in Florida is 70 percent funded
One-third of municipal plans had failing grades Looked at funding levels—assets/liabilities Grades based on % funded; <70 failing
In 2010 for the first time, the typical municipality paid out more money to retirement benefits than it contributed in benefits earned that year.
Doing It Right Funding ARCs Requiring employees to share in costs Limiting the size of COLAs Limiting pension spiking Setting realistic actuarial assumptions
Our Recommendations Raise retirement benefit recipient age Provide minimum contribution rate in good times to cushion needs in fiscal stress Exclude overtime and bonuses in pension benefit calculation Remove statutory restriction on premium tax dollars Encourage transparency