City Commission to hold pension workshop

As unfunded pension liabilities loom as an ongoing problem for Sarasota, the City Commission will hold a workshop Aug. 23 for reports on the city’s various pension plans.

The Annual State of the City’s Pension Plans workshop will include presentations from the plans’ attorneys, investment consultants and actuaries. Topics of discussion will include trends in pensions statewide, comparisons to how other pension plans are funded and updates on how the investments that help fund the plans are faring.

According to the city’s 2012 comprehensive annual financial report, the city is on the hook for almost $296 million in unfunded pension liabilities at the assumed rate of return for investments. Individual pension boards set the rate of returns.

Several commissioners, including Susan Chapman and Shannon Snyder, have called the 7% assumed rate of return used for the general employees’ and police pensions unrealistic. A 6% rate of return on all pension fund investments, which those commissioners have said is closer to accurate, would leave the city with about $376.5 million in unfunded liabilities.

The workshop will focus on the General Employees’, Police Officers’ and Firefighters’ Defined Pension Plans, as well as the General Employees’ Defined Contribution Plan.

Commissioners approved a change to move general employees from a pension to a defined contribution plan two years ago.

The workshop will be held at 2 p.m. Friday, Aug. 23.

Contact David Conway at [email protected].