Florida Cities Call for Pension Reform
December 12th, 2011 by Mike VasilindaFlorida Cities today called on state lawmakers to make police and fire pension reform a top priority for the 2012 session. A glitch passed last year is having the unintended consequence of requiring local pension funds to allow officers three hundred hours of overtime each year to be counted toward benefits. The goal last year was to reduce the amount of overtime. Kraig Conn with the League of Cities says the change is important because by counting the overtime, officers and firefighters can retire with significantly higher pension benefits.
“They would essentially be receiving a 15 or 16-month, a payment based on 15 or 16 months for one fiscal year period,” Kahn said. “So it can increase the cost of the pensions by easily one-third of what they normally should be.”
Governor Rick Scott has made the overtime provision one of the few pension changes he will tackle in 2012. Pensions are based on an average of the last five years of salary. When overtime is also allowed, it drives up benefits and reduces the soundness of the plan..
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