Jacksonville announces labor deal with fire union, includes FRS pensions

Image via City of Jacksonville

In the rare positive instance of the Friday news dump, the city of Jacksonville has struck a new labor deal with firefighters that will give them a road to traditional pensions in what appears to be another major accomplishment by the Donna Deegan administration in its first year in office.

Negotiators have agreed with the Jacksonville Association of Fire Fighters to raise salaries 12% in Fiscal Year 2024-25 and 5% in the next two fiscal years, and that labor accord includes a way out of defined contribution pensions in effect for new hires since 2017 when the Lenny Curry administration closed the traditional and debt-ridden defined benefit program to new entrants.

“In 2027, retirement benefits for new enrollees will move to the Florida Retirement System (FRS), and current enrollees of the defined contribution plan will have the option to remain there or move to the FRS,” the administration announced.

“It’s an honor to present this historic agreement to the courageous men and women who work so hard to keep our citizens healthy and safe,” Deegan said. “We continue to have the best fire department in the country because of their efforts, and the tentative agreement ensures their benefits match their talent and dedication to our community.”

The formal announcement of the fire deal comes a day after news broke that the Fraternal Order of Police would also have an FRS on ramp.

“I’m grateful to Mayor Deegan and her administration for negotiating in good faith to deliver the most generous agreement our union has ever received,” said International Association of Firefighters, Local 122 President Kelly Dobson. “This tentative agreement makes good on broken promises of the past and makes whole our deserving members who put their lives on the line every day.”

Defined benefit pensions were eliminated for new hires as of 2017, a condition of pension reform legislation in Jacksonville and Tallahassee. The measures authorized a successful referendum dedicating a current half-cent sales tax to defraying legacy pension debt once its current purpose of paying down Better Jacksonville Plan obligations is fulfilled.

“This tentative agreement will ensure we retain our brave firefighters, while recruiting the best and brightest to serve alongside us,” said Jacksonville Fire and Rescue Department Chief Keith Powers. “I want to thank Mayor Deegan, President Dobson, and their teams for giving us the tools to build an even stronger team to protect the public and take our department into the future.”

However, if the administration’s plans to use the BJP tax as a capital improvement funding source amid a plan for $775 million in stadium renovations materialize into legislative reality, the BJP tax (which had been expected to be repurposed by 2026 or so) will stay devoted to capital purposes until 2031. Jacksonville has roughly $5 billion in unfunded liability between the city’s various pension plans.

“This tentative collective bargaining agreement signifies a preliminary accord reached, pending further ratification and adoption,” said Jacksonville City Council President Ron Salem. “I believe this marks a significant step in formalizing historic raises, changes to the retirement benefits and many positive terms ensuring the welfare of the men and women of our Fire Rescue Department.”

A white paper released during the Curry administration warned against unraveling what his administration calls pension reform, but it’s clear that for the Deegan administration and the unions, the price is worth it.

“I am pleased that both the city and union leadership have come to terms on a tentative agreement, and I look forward to the men and women of JFRD voicing their opinion before the final adoption by the City Council,” said Jacksonville City Council President-Designate Randy White. “This is a step in the right direction for the department.”