FL retirement changes bill also aims to help Jax pension problem

On Friday, the Florida House will vote on a bill that would change the state's traditional pension retirement system.  WOKV News has learned the bill would also aims to help local police and fire pension funds.

Jacksonville has a $1.65 billion debt in its police and fire pension fund.   Palm Beach Post veteran reporter John Kennedy in Tallahassee says other cities have similar problems, and reforming them has been a “long fought-over issue” between the cities and unions.

Kennedy says the two sides are agreeing this year.  The changes proposed under the current bill (HB 7181) would allow city governments to redirect tax money collected from insurance premiums back into pension funds.

“Cities can use some of that insurance premium money to bolster the existing fund,” Kennedy says.

Back in 1999, Florida approved using the insurance premium funds flowing into the accounts only for additional benefits.  This bill would change that.

“It will only really help us in the long term scenario,” says Jacksonville Representative Lake Ray. “It will not help fill that hole in.”

Ray says this will help in future hires, as it only applies to new employees entering the police and fire pension fund.