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Council approves pension ordinance changes amid debate over funded ratios
Summary
On second reading and public comment, Plantation’s City Council approved ordinances amending retirement provisions for volunteer firefighters and police officers; council members and residents raised concerns about the city's funded ratios and the long-term cost of defined-benefit plans.
The Plantation City Council on Jan. 15 approved ordinance changes affecting retirement plans for the city's volunteer firefighters and for certain police officer pension provisions, after debate on the financial effect of enhancing defined-benefit benefits.
Nut graf: Council members and residents urged caution and recommended shifting more emphasis to defined-contribution accounts over time, while staff and pension-board supporters said the changes address specific retirement-date and pensionable-overtime issues.
The council conducted a first reading of an ordinance amending Chapter 18, Article 3, that governs volunteer firefighter pensions and retirements; that item advanced on a voice motion and later a roll call during the meeting. Item 15, an ordinance amending Chapter 18, Article 2, division 2 (police officers), was adopted on second reading. The police ordinance increases the number of overtime hours that may be included in pensionable compensation and adjusts retirement dates for certain tier 1 and tier 2 police officers.
Council member Fadgen summarized fiscal concerns: she said the city's funded ratio could fall from about 82.2% to roughly 81.7% after the change, increasing the city's unfunded actuarial accrued liability by roughly $1.3 million. She reviewed national and Florida comparisons for funded ratios and cautioned the council about repeatedly enhancing defined-benefit plan features.
Public commenters urged caution and presented personal experience. Dennis Conklin and Rob Corman, who identified themselves as having worked under different pension systems, urged the council to favor defined-contribution plans and to avoid future enhancements to guaranteed benefits that shift long-term risk to taxpayers.
The council voted to approve the ordinance changes. Council members said they expect continued oversight from pension boards and investment committees, and some council members said future collective-bargaining or policy decisions should prioritize fiscal sustainability.
Ending: Council members and residents agreed the work of the pension boards is important, but several council members asked administration to examine ways to strengthen defined-contribution options for future employees so the city is not overly exposed to future market or demographic shocks.
