Pension contributions higher than average

A recent Florida League of Cities report states that the town of Longboat Key is one of just six cities in the state of Florida in which required pension contributions exceed 50% of police payroll costs.

The town is also one of 19 Florida cities in which required firefighter pension costs exceed 35% of payroll costs, according to the report.

The report states that for the 2010-11 fiscal year, the town’s required police and fire contributions were $2,002,000. Required police pension contributions totaled 64.85% of police payroll costs, the report said, while required firefighter pension contributions totaled 44.14% of firefighter payroll costs.

According to the report, the average required contribution for cities statewide was 19.14% of police payrolls and 17.08% of firefighter payrolls.

Commissioner Phill Younger said that he was “not a bit” surprised by the report’s findings.

“It’s a combination of a lot of factors,” Younger said. “It’s the benefits granted by the town, especially over the past decade; it’s the way it has been funded; it’s the performance of the stock market.”

Commissioner Lynn Larson, who has been critical of the town’s pension plans, said Tuesday afternoon that she had not seen the report. Although she has been vocal about her belief that the plans have major flaws, she was surprised by the extent of costs included in the report.

“The more than 50% surprises me,” Larson said. “I knew they were bad, but I was not aware that they were quite as bad.”

The town’s pension issues have been the subject of ongoing debate for several years. At a Longboat Key Public Interest Committee (PIC) meeting last March, a committee that formed to evaluate the town’s three pension plans reported that pension payments had risen from 5% of the town’s revenue in 1999 to 32% of revenue in 2010.

Town Manager Bruce St. Denis said that he could not comment on the report, which he hadn’t seen as of Tuesday afternoon. He said that he does not know where the league gets its data, therefore, could not comment on the report’s accuracy.

The report, available at the league’s website, floridaleagueofcities.com, states that it received responses from 317 of 410 cities.

Larson said she believes that major changes are needed.

“We need to look at a complete overhaul to the benefits package,” Larson said, stating that the town needs to consider a defined contribution plan, rather than its current defined benefits plan. “If you’re going to have a defined benefits plan, you must be very determined to fund it every year based on long-term needs.”

In the same league
The following cities’ police pension contributions top 50% of payroll costs, according to the report: Fort Myers, Longboat Key, Melbourne, Pembroke Pines, Pompano Beach and Port Orange.

The following cities’ firefighter pension contributions top 35% of payroll costs, according to the report: Cocoa, Dania Beach, Davie, Daytona Beach, Delray Beach, Fort Myers, Longboat Key, Naples, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pinellas Park, Pompano Beach, Port Orange, Sarasota, Sebring, Starke, Tamarac and Venice.