Politicians have gotten us into this mess by agreeing to lucrative contracts when the economy was booming but also they know, if they play ball, those campaign contributions will "keep on a comin." It is the mindset of some politicians (not only in Union contracts) that "a contract is a contract" and we need to meet the obligation no matter what. We have done this with non-union contracts that cost us some money to terminate which ended up to the betterment of Lake Worth. Unfavorable, costly and unsustainable contracts to our city must be re-negotiated and 2013 is the time to get serious. It's past time.
Over a year ago, Florida State Senator John Thrasher introduced legislation that would prevent governments from collecting union dues from the paychecks of state union workers. This was one beginning in an effort by a politician but Governments all across the country are considering ways to reduce the costs associated with public unions whose paychecks are substantially higher than the private sector.
When Governor Christie of New Jersey was elected he said, "At some point, there has to be parity between what is happening in the real world and what is happening in the public-sector world."
The Leroy Collins Institute issued a report late last year that gave reviews on the financial health of pension plans in 100 Florida cities. Lake Worth got a D rating. One of the problems is less workers supporting those who are retiring as we, along with many cities, have had to lay-off workers in order to meet budget. Other reasons are just plain union greed and politician apathy that are killing cities and killing ours.
Their recommendations for local governments on retiree benefits include:
- The minimum age before a retiree qualifies for benefits should be gradually raised. A reasonable age to begin receiving benefits could be approximately 60.
- Localities should not include overtime or additional earnings/bonus pay
in the base salary used to calculate pension benefits.
Recommendations for state government on health benefits: - Among other options, Florida lawmakers should give much consideration to
repealing current Florida law requiring the implicit subsidization of healthcare benefits for Florida local governmental retirees. - State oversight by a relevant state agency should be provided in statute to manage local retiree health benefit obligations. This agency should establish standards and provide technical assistance, if desired, to local government staff and local officials. Recommendations for state and local governments on administration and transparency:
- Cities should set a minimum contribution rate to ensure minimal contribution levels during good years and reduce the need to significantly increase contributions during periods of fiscal stress.
- The statutory restrictions on the use of premium tax dollars that link increases in tax premium funds to the provision of additional benefits should be reduced or removed. Cities and counties should be able to use premium tax dollars to cover their current pension obligations.
- Localities should improve the accessibility of funding, actuarial reporting and liabilities information to its taxpayers.
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