Florida Division of Retirement gives green light to Lenny Curry pension reform

An important milestone for proposed pension reforms by Jacksonville Mayor Lenny Curry was given the green light by the state of Florida this week.

State retirement system actuarial experts signed off on the reform package, saying that the financials are clear and consistent with law, for all three plans: General Employees, Corrections, and Police and Fire

The letters sent from the Florida Division of Retirement to the city of Jacksonville validate the pension reform, including the use of present value calculations — a key component of the Curry plan.

“A share of the present value as of 10/1/2016 of the total projected proceeds of the sales surtax is amortized over 30 years and applied as a credit to the annual required contribution,” reads the letter from Douglas Beckendorf, plan actuary.

Beckendorf discussed payroll growth assumptions also, and is on board with Curry’s projections of growth to 1.5 percent per annum, writing that “the methods and assumptions used to calculate the annual required contribution” from the city jibe with statute.

Beckendorf offered no opinion on the “reasonableness of the estimates of the financial status of the plan,” however, as the review was limited to financial impact statements.

______

This was a timely communique, with the Jacksonville City Council weighing pension reform, via

2017-257 creates a new ordinance section:  Chapter 776 (Pension Liability Surtax).

Bill 2017-258 affects the general employees and correctional worker plans, closing the extant defined benefit plans to those hired after Oct. 1, 2017, and committing the city to a 12 percent contribution for those general employees and a 25 percent contribution for correctional officers hired after October.

Bill 2017-259 implements revisions to the Police and Fire & Rescue plans.

258 and 259 both offer fixed costs via a defined contribution plan for new hires, while offering 25 percent contributions from the city to those hires.

As well, there will be raises across the board: 20 percent over the next three years for all current police, fire, and corrections employees, and 14 percent for general employees.