Court cases, bill rejections and measures being introduced have dominated public safety-related pension plans in recent weeks.
Now, there’s another option.
City Council member Bill Gulliford filed a bill this week taking another stab at reform, although this version has some changes to a negotiated version council rejected in late March via a 9-9 split.
One heavily debated point on that bill was the length of time council couldn’t impose benefits. Some held fast to three years, as collective bargaining laws state.
Others said the Police and Fire Pension Fund board wouldn’t approve anything less than 10 years, which shaved five years off the so-called 30-year agreement that defined benefits.
Gulliford was among those who were adamant about three years, but his latest measure sets the length at seven years. He called it a “very difficult” point to compromise.
“I can’t get three and they can’t get 10,” he said, referring to the fund board. “That’s between the two and I think it’s fair.”
Another massive change: The city wouldn’t have to make accelerated payments toward the $1.6 billion unfunded liability problem within the plan.
One idea proposed by Mayor Alvin Brown had the city and JEA each borrowing $120 million, with the remaining another $60 million coming from pension fund accounts.
The $300 million would be a present-day equivalent of $400 million paid over time that has been determined is needed to get the fund at healthy levels.
Gulliford said there isn’t a funding source for that part and by decoupling that part from the rest of the bill will lock in some savings now.
“This helps stop some of the bleeding now,” he said.
In the short term, he said, any excess pay-down up to $20 million would have to be matched by the fund.
He didn’t bend when it came to removing language about the plan’s senior-staff retirement plan.
That plan, which is used by fund administrator John Keane and a couple of others, has been called illegal by the Office of General Counsel.
Leaving it in the bill would have effectively “swept the issue under the rug” by validating it, Gulliford said.
In a statement, Brown said his administration would review the legislation and “will work with anyone committed to true reform.”
“We are very close to reaching our community’s goal, and my administration and will listen to anyone who might be a genuine partner,” he said.
Gulliford says the bill reintroduces the topic to council and allows for discussion and possible amendments.
It will be introduced Tuesday to the full council.
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