Donna Deegan administration outlines benefits of FRS for Jacksonville Fire and Rescue employees

Image via Donna Deegan Twitter/City of Jacksonville.

A lot is still unknown about the ultimate costs to Jacksonville taxpayers if fire and rescue unions choose to enter Florida Retirement System pension plans. But the Mayor’s Office is saying that the price will be worth it due to operational improvements.

“The move to FRS will improve hiring and retention, which will reduce overall turnover costs, improve service levels, and deliver tangible operational benefits that will offset additional contributions,” said spokesperson Phil Perry. “We anticipate these benefits will begin immediately as prospective employees anticipate the implementation of FRS in 2027.”

Perry’s comments come after the administration announced on Friday that a new labor proposal to the Jacksonville Association of Fire Fighters includes an option to get fire and rescue onto FRS. That comes after the local Fraternal Order of Police announced that a similar deal was offered to that union.

“The first realized budget impacts will be in FY28. There are several variables that make it difficult to pinpoint the exact financial impact until employee elections occur in 2027,” Perry added.

Those elections in 2027 will include three options for employees employed in 2027, with new hires from that date going automatically in FRS.

The first would be the “Jacksonville Public Safety DC Plan,” a 10% employee-25% employer split with no Social Security.

The FRS Special Risk Defined Benefit Plan includes a 3% employee, 35.79% employer contribution split, where both employee and employer pay 6.2% into Social Security as well.

Finally, the FRS Special Risk DC Plan includes a 3% employee, 16% employer split, with both paying 6.2% into Social Security.

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.