After a rewrite, a provision that exempts Jacksonville's Police and Fire Pension Fund from a law regulating other similar plans will remain in place.

The original version of legislation aiming to put police and firefighter pensions on stronger financial footing included language removing the exemption. That would have prompted changes to Jacksonville’s plan, including adding overtime into the formula used to dole out benefits.

“That was a drafting error,” said state Sen. Jeremy Ring, R-Margate.

He said after the initial bill was filed, Jacksonville officials immediately reached out to his staff pointing out the change.

“Yeah, we heard from them,” he joked.

His committee is working on plan to shore up the state’s 500 police and firefighter pension funds, many of which are under funded. Jacksonville, along with Coral Gables and Miami, are exempt because they were in place prior to the passage of state laws creating the funds

The issue, which has been on lawmaker’s plate for the past three years, largely pits cities versus police and firefighter unions.

Officials representing local governments oppose a 1999 law that requires revenue collected over 1997-levels be applied to benefits above the baseline level, or “extra benefits.”

“We have lived with that for 13-years, it has cost cities $500 million,” said Kraig Conn, a lobbyist for the Florida League of Cities.

Union representatives turned the table, saying cities approve the plans so have no one to blame but themselves.

“If they want to see who's at fault, they need took in a mirror, because they did it and now they want you to bail them out," said David Murrell, executive director of the Florida Police Benevolent Association.

That “extra benefits” flowed to local police and firefighter’s pensions until a ruling this summer by the Division of Retirement reversed the 1999 law, freeing up the money for cities. They want that ruling made permanent, a request Ring seemed cool to.

"The cities want the whole thing back, and I don’t personally feel comfortable giving the whole thing back,” he said.

The committee, which did not take a vote, is currently considering two plans.

One authored by Ring would allow cities to use a majority of money to shore up ailing pension funds, while sending the remainder into a 401(k)-style plan.

A second option, written by state Sen. Rob Bradley, R-Fleming Island, would require cities maintain 1999 benefit levels, but allow them to decrease the amount they pay for benefits.

Either way, it means fewer benefits for police in firefighters, but a more sustainable system.

Link:  http://jacksonville.com/opinion/blog/403455/matt-dixon/2013-02-06/p...