Jax City Council delays police, fire pension debt decision

A vote on a plan to pay off Jacksonville’s Police and Fire pension debt will have to wait at least another two weeks.

Citing concerns recently raised regarding mortality tables Council President Clay Yarbrough on Tuesday sent the bill back to its three committees.

The bill was expected to be voted upon at the meeting.

At issue is how long it would be before the Council could unilaterally impose changes to benefit and retirement packages for current employees. Many council members want a three-year wait, but the Police and Fire Pension Board is insisting on 10.

Supporters of the shorter wait point to the mortality tables that show retirees are living longer life spans. They say a 10-year moratorium could leave the city vulnerable if it pays out far more in pension benefits than initially planned.

“If we were to adopt the 10-year term, that would significantly affect the agreement with what the financial impact might be,” Yarborough said.

Nevertheless, the administration sees no reason for the delay.

“The city is not required to use the 2014 mortality tables and our actuary is one of many who has objected to their validity because they exclude data from public sector pension plans,” the chief of staff, Chris Hand, said. “No matter what mortality tables are used, the fact is that the pension reform proposal will save taxpayers far more than the status quo.

The Council split as to whether the restriction should be for three or 10 years, but the Pension Board is insisting on the 10-year figure.

Mayor Alvin Brown‘s office issued a statement Tuesday night stating that the Mayor is committed to passing pension reform.

“Various independent groups like the Jacksonville Civic Council and Florida Times-Union have called on Council to pass this bill. These reforms would save taxpayers at least $1.3 billion, and we should do everything we can to resolve this issue as quickly as possible for taxpayers and our first responders. It is time for the nearly eight-year debate on pension reform to end.”

The three committees will again discuss the bill next week.