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St. Petersburg City Employee Forum Protecting your Retirement Benefits and Preventing Bankruptcy. America’s Founding Principles. Natural Rights Individual Liberty Limited Government Consent of the Governed Property Rights Free Markets Equal Justice Rule of Law.
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St. Petersburg City Employee Forum Protecting your Retirement Benefits and Preventing Bankruptcy
America’s Founding Principles Natural Rights Individual Liberty Limited Government Consent of the Governed Property Rights Free Markets Equal Justice Rule of Law
$325 Million! UNFUNDED LIABILITY – Retiree benefits!
Pension Fund Shortfalls! City STILL underfunds Pensions with maximum property tax collections in 2007!
General, Fire and Police Promised Vs. Actual Growth in Pension funds Police General Fire
Police General Fire Fire
“City councils continued approving raises and benefits for workers, ignoring warnings from citizen oversight commissions. Police and fire officials could retire at 50 with 90% of their final year's salary. After one year of service, public employees could get health care coverage for life, and so could their families. Starting in 2005, the city began spending $3 million to $4 million a year more than it was taking in, draining its reserve fund.” Huffington Post 7/23/2012 ValleJo, Ca – one of many bankrupt Cities
Vallejo, CA Stockton, CA San Bernadino, CA Central Falls, RI Jefferson County, AL Boise County, Idaho Harrisburg, PA DETROIT BankRupt cities
“…up to $100 million in health care obligations were removed when the city cut benefits for retirees to $300 per month, down from $1,500 in some cases.” • But Vallejo also racked up $13 million in legal bills and was unable to rework its pension plan, still a $165 million unfunded liability. • (St. Pete is $140 million unfunded for pensions and $177 mill unfunded for Health benefits!) "It is painful to say to people who supported you in an election that I have to cut your salaries. That's hard," said Mayor Osby Davis, who has held that seat since 2007. Huffington Post 7/23/2012 ValleJo, Ca – Bankruptcy Effecs
Deep staff cuts Sworn police from 155 to 90 Firefighters from 122 to 70 with three fire station closures Deep cuts in spending on streets, building maintenance and other programs Vallejo, CA - bankruptcyCity Jobs GONE!
“It is a settlement about which no government officials associated with Central Falls should be proud,” said Matt McGowan, the lawyer who represents retirees. “In an example of abject irresponsibility on the part of its elected officials, its pension plans were persistently and habitually underfunded for a decade or more.” Central Falls RI – Bankrupt!55% Hair cut to Pension Payouts
Get the Truth from your Union Leaders and Politicians • Fund the Pensions! • Focus Spending on Core Services first • Public Safety, Roads, Utilities, Parks • Reform pension to protect it. • Prevent bankruptcy. • Stop Wasting Money on Things we can’t afford. (Lens, SRI, Rays, Rail) Pension Reform
Reserves…Move From One savings Account to Pension Savings Account! – FUND THE PENSIONS!
You own it Incentives to Change – LEVERAGE needed change to your advantage Pay Raise, Earlier Vestment Portable benefits Change last-in, First out Free financial planning Pension Reform - Benefits
Keep current obligations • CHOICE – Defined benefit or Defined contribution – You Choose based on Incentives • Raise, Earlier vestment, portability, changed hire/fire, free financial advice • Transition to Defined Contribution Plan • Re-evaluate retirement age • Re-evaluate overtime rules • Save the city from Bankruptcy- • Prevent you from being left in the cold. Pension Reform
