Bullock proposes defined-contribution firefighter plan

Town Manager David Bullock introduced a proposal that could transition firefighters to a defined-contribution 401a plan during today’s firefighter contract negotiations.

The proposal would freeze the current fire pension plan while allowing all employees to keep their vested benefits. However, no new benefits would accrue beyond the date at which the plan is frozen.

The town would contribute 10% of the fire employee’s base salary while requiring employees to contribute 3% to the plan. The town would match the next 3% of employee contributions dollar-for-dollar, contributing a maximum of 13%. Employees would be allowed to contribute up to the maximum employee limit.

The town would continue its Social Security payments for employees.

If the plan were implemented, it would not affect retirees or employees who retire before the “freeze” date.

As of Oct. 1, 2011, the firefighters’ pension plan had an unfunded actuarial liability of $15.3 million.

Firefighter/Paramedic Keith Tanner agreed to bring the proposal to firefighter union members for further consideration. Firefighters also asked the town for additional information, including data that would show the impact of the plan in various scenarios.

For more information, pick up a May 11 copy of the Longboat Observer.

Contact Robin Hartill at [email protected].