As the latest rendition of pension reform nears the finish line, at least a couple of hurdles are considering being pulled off the track.
But one potential stumbling block has emerged.
After a week that’s seen two City Council committees approve the latest reform package, Police and Fire Pension Fund board members met Wednesday to hear updates and express their thoughts on the deal.
It was there that John Keane, the fund’s administrator, said he was willing to concede a point that personally affects him. He and a couple of others are in a senior staff pension plan, which the city’s former general counsel deemed unauthorized.
Language rectifying the situation was included in the bill Keane and Mayor Alvin Brown negotiated last summer.
Yet, the latest version spearheaded by council member Bill Gulliford left it out. Gulliford wants another opinion on the issue. Keane has wanted it back in, leading to one of few sticking points in this version.
But Wednesday, he told the board he was willing to sacrifice on the subject.
“I can’t let one issue which impacted me directly stand in the way of comprehensive pension reform,” Keane later said.
It also looks like the length of the deal might be OK for both sides.
The board in the past has been adamant about keeping it 10 years — a concession from the 15 years left on the deal currently in place.
Nat Glover, former sheriff and current Edward Waters College president, was among the board members who felt that way.
He told the board he was “still struggling with that, but in the spirit of compromise, I might be able to get there.”
Larry Schmitt and Richard Tuten III, the police and fire representatives, respectfully, didn’t mention the length of the deal Wednesday but did voice other concerns.
Schmitt talked about the need for police salary cuts being restored to equal the additional payments personnel would make toward their retirements. And Tuten expressed hesitancy that future city leaders would stick with the plan to pay down the plan’s more than $1.6 billion in unfunded liability.
“Nothing in here guarantees the new administration does anything to live up to their end,” Tuten said. “It worries me.”
Keane responded that leaders ignoring the long-discussed need would lead to facing the “wrath” of the citizens, JAX Chamber and others who have pushed so strongly for reform.
Gulliford told the group he’s talked the plan over with Mayor-elect Lenny Curry, who didn’t object. And the council members who will be around another four years feel strongly about reform, too.
Currently, the financial part of the deal is structured to have the city and fund board pay $5 million in the coming year, $10 million the year after and $15 million in the third year toward that liability.
After that, the city’s payment would boost to $32 million, while the fund’s would dip to $8 million. That would be for 13 to 14 years or until the plan hits the 80 percent funding mark.
No funding source has been identified, but that would be the first priority once this part is accomplished, Gulliford said.
Despite the momentum, there is a potential tripping point.
The Concerned Taxpayers of Duval County filed for an injunction Tuesday, seeking to prevent the council from voting on the reform package.
Their rationale is the deal violates Circuit Judge Tom Beverly’s decision that voided the 30-year deal and states that council nor Keane and the fund are the appropriate parties to negotiate pension deals.
Additionally, the group says anything longer than three years violates state law — a position several council members also have held fast.
“It’s just something else we have to work with,” Keane said.
Council is slated to vote on the package Tuesday, although several floor amendments are expected to be introduced.
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