Brooksville council votes 4–1 to terminate firefighters' pension fund; pension board to handle payouts

A Brooksville City Council majority voted Wednesday to adopt Ordinance 1010, terminating the City of Brooksville Firefighters Retirement Trust Fund and directing the pension board to administer member payouts.

The 4–1 roll-call decision came after more than an hour of public comment and technical briefing. Council members debated whether to “close” the plan — stopping new hires but continuing annual funding — or to “terminate” it, a statutory process that shifts distribution decisions to the pension board and typically requires a near-term payment from the city to buy annuities or pay lump sums.

Retirees and former chiefs urged the council to delay any final action until individual actuarial figures and options were provided. “They have not been given any options. It’s either a closed or a terminated plan… That is a travesty,” said Joe Pecora during the public-comment period. Several speakers likewise asked for actuarial studies and warned that near-retirees could be penalized or lose benefits if the board’s payout choices and timing were unfavorable.

City staff and outside advisors said individual actuarial equivalents would be calculated by the pension board’s actuary after the council’s ordinance decision. The city’s actuary estimated an annuity-purchase scenario could cost roughly $14.1 million in gross annuity value, with plan assets around $8.9 million — leaving an estimated funding gap in the neighborhood of $4.9–5.0 million that the city would need to address if the plan were terminated immediately. By contrast, closing the plan while continuing annual contributions would keep an ongoing city cost in the neighborhood of $200,000 a year, staff said.

“I just did an estimate… it was about $3,700,000. It might be a little bit higher right now if everybody selected annuities,” the city’s actuary explained during the hearing, later clarifying broader estimates and the role of formal annuity quotes.

Legal counsel described the distinct responsibilities created by state law: council action (by ordinance) decides closure versus termination; the pension board of trustees then administers distribution and any annuity purchases in accordance with Florida statutes. Attorney Glenn Thomas told the council the fiduciary responsibilities differ between the pension board (administration of benefits) and the city (funding obligations tied to actuarial calculations).

Council members said they weighed both the obligation to “make members whole” for benefits already earned and the long-term fiscal responsibility to taxpayers. After deliberation Councilmember McKeithen moved to terminate the plan; the motion was seconded and passed on roll call with the following votes: Hallow — Aye; Earhart — Aye; McKeithen — Nay; Bronson (Vice Mayor) — Aye; Mayor Tanner — Aye.

By adopting Ordinance 1010 on its second and final reading, the council authorized staff and the pension board to complete the required state filings under Florida law. The pension board of trustees will determine whether members receive annuities or lump sums and the precise individual payouts once the board obtains formal annuity quotes and conducts its actuarial calculations.

Council and staff emphasized that the action does not mean members lose earned benefits; rather, the form of distribution and the timing will be managed by the pension board within statutory rules. The city’s eligibility for certain excise-tax premium reimbursements (chapter 175 funds) would end with termination, staff advised.

Next steps: the ordinance takes effect as provided in the text and the pension board will complete the administrative steps to calculate and distribute member benefits. The council said it expects to continue communications with firefighters, the pension board and counsel as that process unfolds.