Posted on 02/14/2011 11:25:55 AM PST by SeekAndFind
Unfunded pension obligations are a "ticking time bomb" for cities and counties across Florida, according to a new report.
The report, from researchers at Florida State University, found that local government's have failed to set aside enough money to fund generous pension and health care plans for public employees. Now, as baby-boomers reach retirement, pension obligations are putting a serious strain on already tight municipal budgets.
The problem is affecting nearly every large city in Florida. Miami, one of the worst offenders, only set aside $74 million of the $100 million it owed in 2009, the Miami Herald reports. Orlando and Fort Lauderdale underfunded their pension plans by 30%.
On average, pension obligations are nearly 10% of Florida cities' annual spending, the report says. In Miami and St. Petersburg, retirement costs are more than 50% of total payrolls.
The study comes on the heels of Florida Gov. Rick Scott's $65 billion budget proposal, which includes a sweeping overhaul of the state employee pension system.
(Excerpt) Read more at businessinsider.com ...
Florida Repubs are RINOs and the FL Dems are the spawn of Satan. Where was Jeb that “great” Gov?
This is so ridiculous. First of all the reason for this is because millions upon millions of boomers are ready to retire. Secondly, this is the LAST group that gets the great retirement. 1987 on DO NOT GET THIS GREAT DEAL!!!! I wish FREEPERS would educate themselves instead of adding everyone in the pot. I guess that is too much to ask.
To Gov Rick Scott and all other serious FL budget cutters..”Gentlemen, start your engines.”
Odd.
Those cities are liberal big Democrat centers of power in this state.
Just a coincidence, I’m sure.....................
Never mind certain facts like for example those cities - like most cities - are ruled by LIB DEMS...
Are all of the FL municipal employess (many, various communities) in the SAME plan? You said (those hired?) from 1987 on do not get this great deal? Isn’t part of the problem related to the fact that the plans used defined benefits in the past, and projected higher investment earnings than have been attained? Or is is just because millions and millions of boomers are retiring in Florida now/soon?
Study: States must fill $1 trillion pension gap
http://www.msnbc.msn.com/id/35448576/ns/us_news-life
HARRISBURG, Pa. - States may be forced to reduce benefits, raise taxes or slash government services to address a $1 trillion funding shortfall in public sector retirement benefits, according to a new study that warns of even more debilitating costs if immediate action isn’t taken.
Another time bomb waiting to go off.
I’ve been reading this for years.
—nowhere is it more true than CA an NY. They are the models of our pending demise. don’t expect any in government to take any SERIOUS action .
http://www.pensiontsunami.com/public.php
Or is is just because millions and millions of boomers are retiring in Florida now/soon?
That is the problem right there. These states have known for YEARS that this was coming up and like Social Security they ignored the problem. Well it is time to pay the piper and now the states are complaining. I laugh at their stupidity.
Lehman's managed Fla's public assets, sold securities, underwrote bond deals, and handled residential and commercial mortgages. Local FLA governments are stuck with about $556M in tainted securities that they can't redeem.
Fla's hurricane claims, health care, community colleges and infants with disabilities care are in jeopardy. Counties, cities, school districts face more than $300M in losses for roads, sewers and schools.
In total, Fla lost $1Billion from Lehman's bankruptcy.
HOW MUCH WAS YOUR STATE HIT FROM LEHMAN'S BANKRUPTCY?
Jeb was in charge of the coming meltdown.
Sink was in charge of sinking that deal.
Can you please explain the fact you offered about 1987 and Florida then? And your comment about FReepers not doing their research? I don’t understand what point you are trying to make about FReepers and Florida’s retirement plan shortfalls. The problem with the states having the shortfalls, might be humorous to some, but where those plans and benefits cannot be renegotiated or shorn up, the working taxpayers will be left holding the financial obligations.
This is how politicians “make budget”. They underfund pension plans or self-insurance plans. Thus, they can give the employees big raises without increasing taxes.
Taxpayers need to hold the local politicians feet to the fire.
OUCH
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