A.G. Gancarski
The final Lenny Curry transition budget meeting of the day covers the Jacksonville Retirement System. Sam Mousa chairs the meeting.
3:05: A review of the Operating Budget for the General Employees’ Pension. Salaries are up $16K; vacancies have been filled. This is a six person shop.
3:07: Professional services and money management fees are always a sticking point with Council. They are described as “relatively uncontrollable.” They are considering consolidating managers to control break costs.
3:09: Money managers and external legal counsel, actuarial services, a portfolio investment consultant, and such fall under the aegis of professional services. They have a subscription to a Social Security Death Masterfile, as well, to track beneficiaries, at $1200 per annum. Find one fraudster, and “it pays for itself,” according to Wood.
3:11: A discussion of coaching people into the appropriate pension plan.
3:15: The goal is to be fully-funded. Over the last few years, they’ve gradually throttled down the rate of return.
3:17: The market value of the fund: $2.1B.
3:19: There are $100M in deferred gains that will create a tailwind, a nice cushion to protect the fund when it “tanks” so it “won’t get wacked.”
3:22: The city’s estimated contribution… there is an $89M contribution, $24M from the General Fund.
3:26: Police and Fire Pension Deal discussed. Out of the annual savings ($148M per year), the vast majority ($111M) will go to debt service. Without the unfunded liability, the cost of these pensions would be comparable to Social Security. The fund will be healthy, if all projections work out, in 23 years. With the city contribution in the plan, that number is whittled down to 17 years.
3:30: End.
