CITY OF FORT LAUDERDALE 

POLICE AND FIREFIGHTERS’  
RETIREMENT SYSTEM 

FLORIDA PENSION NEWS STORIES ON POLICE AND FIREFIGHTERS

Prepared by Fred Nesbitt, Director of Public Information fnesbitt911@gmail.com October 31, 2009

There have been two great articles questioning the validity of 401(k) plans:

Why It's Time to Retire the 401(k)

By Stephen Gandel, Time/CNN, October 9, 2009
The ugly truth, though, is that the 401(k) is a lousy idea, a financial flop, a rotten repository for our
retirement reserves. In the past two years, that has become all too clear. From the end of 2007 to the end
of March 2009, the average 401(k) balance fell 31%, according to Fidelity. The accounts have rebounded,
along with the rest of the market, but that's little help for those who retired — or were forced to — during
the recession. In a system in which one year's gains build on the next, the disaster of 2008 will dent
retirement savings long after the recession ends.

Retirement overhaul: 401(k)s may not be the answer now

By Christine Dugas, USA TODAY, October 23, 2009
The 401(k) is clearly the center of the retirement storm. Some consumer advocates say the 401(k) is a
failure that should end. Others, especially financial industry representatives, think 401(k) plans are still the
best retirement option and they simply need shoring up. Retirement USA wants to keep the best parts of
the current system and add to it. Many workers — especially women, Hispanics and African Americans
— don't contribute to a 401(k) plan at all. Women also face an obstacle men do not. They need to replace
more of their final pay for retirement — 2% more than the average male — because they live longer.

Forum Hears About Police and Firefighter Pensions

At a September meeting of the Fort Lauderdale Forum, the topic was, “Fort Lauderdale’s Police and Fire
Pension Plan: Is There a Better Way.” “Police and Fire pensions are a major cost to the City, but are a
vital part on our competitiveness in hiring and retaining public safety professionals. Can we find a better
way to do this?” was the theme of the discussion. The website has a video of the panel discussion.

Did Merrill Lynch break a promise?

By Robert Trigaux, St. Petersburg Times, October 27, 2009
Did Merrill Lynch engage in Me First financial advising at the expense of Florida pension fund clients?
Earlier this month, the pension fund maintained by the City of Largo for its retired and disabled police
officers and firefighters sued Merrill and Callaway. And last week, another pension fund for St.
Petersburg's retired and disabled firefighters also sued, making similar arguments.
Options on Jacksonville pension mess: tax hike or cut in benefits
By Ron Littlepage, Florida Times-Union, October 22, 2009
The city's pension plans - especially the interest payments on the unfunded liability - is "what's eating the
city's lunch," according to John Keane. Keane is the executive director of the Jacksonville Police and Fire
Pension Fund, which accounted for about $789 million in unfunded liability after the stock market went
south. Keane blames that huge shortfall on the city's habit of rolling back the millage rate year after year
instead of properly funding the city's three pension plans.

Growth Fund seeking tech firm investments

By Bill Frogameni, Orlando Business Journal, October 13, 2009
Central Florida technology firms expect a boost from a $250 million state investment fund designed to
spur innovation. The Florida Growth Fund, an arm of the state’s pension fund, will open offices in
Orlando and Fort Lauderdale to invest in companies statewide. State lawmakers created the fund last year
to invest in private firms with a significant presence in Florida.

Investment firms pay to play with state retirement funds

By Sydney P. Freedberg and Connie Humburg, St. Petersburg Times, October 11, 2009
On June 23, Florida Attorney General Bill McCollum pulled in a bundle of campaign checks from a single
address in Pittsburgh. In all, $28,000 in checks from that address made their way to McCollum's campaign
for governor. It's business as usual at the SBA, which has a ton of public money to invest — about $132
billion — on behalf of hundreds of Florida cities, counties and state organizations, and on behalf of the
pension fund for a million current and retired teachers, police officers and other public servants.

City pensions: Tough choices

Florida Times-Union, October 23, 2009
Like a slow moving tidal wave, the city of Jacksonville's pension obligations threaten to swamp future city
budgets, as well as Jacksonville's reputation for having progressive government. Here are logical
improvements: End the cushy defined benefit plans for new employees. They are too easy to "game,"
putting the bills on future generations. Use defined contribution programs, like 401(k) types, instead. Cut
back the deferred retirement program, called DROP, which has turned into another windfall for city
employees with its 8.4 percent guaranteed return. Push back the date that retirement benefits can be
collected closer to age 65. The bottom line: Pension benefits of government workers should not be so
much greater than all the constituents they serve. It's unreasonable in this day and age to be receiving
retirement benefits decades before you reach normal retirement age.

The Herald recommends

Editorial, Miami Herald, October 24, 2009
With Miami facing a financial crisis as overly generous city workers' pensions threaten to bust the budget,
voters want more attention to basic city services in a high-poverty city where economic development
remains a critical challenge. Maria ``Beba'' Sardiña Mann’s top priority is stabilizing city finances by
reducing too-high salaries and escalating pension debt. A former city attorney, Mr. Rodriguez-Fonts
proposes to overhaul the pension system that contributed to the city's $118 million budget hole. Jeff
Torain proposes renegotiating the city's untenable pension fund obligations. [The Herald endorsed these
three candidates.]
Pension solution will be expensive
By Jim Brown, Sarasota Herald Tribune, October 13, 2009
Longboat Key town commissioners meet Thursday in the first of two special workshops designed to see
how they can work their way out of their $26 million pension dilemma. Longboat's employees, St. Denis
said, actually have one of the highest contribution levels in the state. Sarasota County firefighters, for
example, are covered by the state system; they contribute nothing and get a 3 percent multiplier in
determining their pension payout. Longboat's, on the other hand, contribute 10 percent and get a 3.5
percent multiplier. Critics say that most businesses across the country have gone to a "defined
contribution" system. Much like a 401(k) plan, a specific contribution is made and employees can invest it
as they will.

We need to examine county employee benefits

Editorial, St. Augustine Historic City News, October 31, 2009
Let me ask you a question. Do you think it is fair that taxpayers have to work into their 70’s so that their
civil servants can retire in their 40’s? Do you think government workers deserve a better pension plan
than the taxpayers who pay their salaries? The real problem is the hidden fact that Florida’s pension plan
is not actuarially sound or self funding. The fund lost $31.1 billion last year, or 25% of its value. The
taxpayer is liable for the fund making a 7.75% return each and every year, so the gap in value is now $40
billion and we, as taxpayers, have to pay again. Instead of a “defined benefit” system, what about a
“defined contribution” system; where we put the retirement funds into the employees 401k account like
the private sector does?

Police union officials rip Tampa mayor's spending priorities

By Janet Zink, St. Petersburg Times, October 29, 2009
Conceding to the police union's demands would cost Tampa more than $12.6 million and force nearly 200
layoffs, Mayor Pam Iorio said Wednesday. But union representatives said Iorio is overstating the financial
impact of the proposed contract by inflating dollar figures and applying police union contract requests to
the city's firefighter and general employees unions. William Mann, vice president of the firefighters
union, said Iorio has made choices about how to spend city money that indicate she doesn't really care
about employees. Specifically, he notes $12,000 budgeted to pay a poet laureate and money earmarked for
lighting street signs.

Miami Beach Mayor Matti Bower faces criticism, accusations from opponents
By David Smiley, Miami Herald October 23, 2009
Levey also said Mayor Matti Bower has been unwilling to take a lead in slashing an unfunded employee
pension liability that city officials say could balloon and cripple Miami Beach's finances in the near future.
``Matti is not paying attention to the unfunded pension,'' Levey said. ``She doesn't want to get in bad with
the unions because they are supporting her.'' The Florida International University graduate says her first
priorities would be to address the unfunded pension liability, cut the city's payroll and further promote the
city's convention center and tourism abroad.

Police reform: A bold, flawed idea

Editorial, Florida Times-Union, October 23, 2009
Credit Michael Hallett for straight talk without the whitewash. The University of North Florida
criminologist says the city's rising police pensions put the city on a direct path to financial disaster.
The Herald recommends Julio Robaina for Hialeah mayor
Editorial, Miami Herald, October 22, 2009
Hialeah has managed to avoid the problem of skyrocketing pension obligations because its system is run
by the state of Florida, keeping costs in check. This allows the mayor to boast of a balanced budget
without the need to increase taxes or resort to layoffs or dramatic service cutbacks. He says public safety
remains one of his top priorities.

Bus stops, union 'pool time,' other thoughts for City Hall
By Phil Fretz, Florida Times-Union, October 26, 2009
Stop paying the salaries of the police and fire union presidents. Their job is to represent the interests of
union members, often at the expense of taxpayers. Their pay should come from the rank-and-file.
Combined, the police and fire unions get 14,800 hours of "pool time," The Times-Union has reported.
That means their members get paid by taxpayers to spend a lot of time doing union work, instead of their
actual jobs, at a time when they say they need more help. The city has proposed cutbacks. Follow through
with bulldog-like determination.