Jacksonville mayor proposes ending pensions for new hires - Watchdog.org
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Jacksonville mayor proposes ending pensions for new hires

By   /   November 2, 2016  /   No Comments

Jacksonville Mayor Lenny Curry wants to end pensions for new general employee hires in the city.

Curry revealed the plan Tuesday in a collective bargaining session with the Jacksonville Supervisors Association, the Florida New-Times reports.

“Guaranteed pensions are not what a majority of the people of Jacksonville have,” according to the mayor.  “Legacy plans are not sustainable, and frankly they are dinosaurs.”

Jacksonville currently has $2.85 billion in pension debt.

In an Aug. 30 referendum, 65 percent of Duval County voters approved a new sales tax to pay down the debt.  Under the state law authorizing the referendum, the city must close one of its three existing pension programs — for police and firefighters, for general employees, or for corrections officers — to new hires before it can collect the new tax. The law also requires employees to increase their personal contribution to their pension from 8 percent to 10 percent of pay.

The law does not bar the creation of a different pension system for new hires as an option alongside the investment plan.

Under the current General Employee Pension Plan, city employees have the choice of either a defined benefit pension plan or an individual investment account.  They do not receive Social Security.  

Read more here.

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Erin Clark is a Florida reporter for Watchdog.org.