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Bailout for Jacksonville’s Pension Plans?

From The Times-Union:

The two largest retirement funds for Jacksonville’s city employees have declined by more than $700 million collectively in the past 15 months.

The losses – about 25 percent in each account – have not been as crushing as that of the Dow Jones Industrial Average, which fell almost 38 percent in the same period, since the start of the 2008 fiscal year.

But after small gains in December, the fund managers say signs of recovery may be starting to show.

“We don’t think it’s going to be ‘no more trouble in paradise.’ We don’t think anyone will sing that song, but we think a turn has occurred,” said John Keane, executive director of the police and fire pension.

Still, the overall picture shows losses that have been an issue slowly coming to a boil at City Hall.

Spokeswoman Misty Skipper said Mayor John Peyton plans to begin debating possible solutions with the City Council soon.

Peyton’s chief administrator, Alan Mosley, sent a memo to council members Friday showing nearly $73 million would be coming from the city this year to help the two shrinking funds. The bulk of that money will go to the police and fire pension.

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One Response - Comments are closed.

  1. g8rluvr says:

    I don’t think you can term it a bailout when you consider the information put forth in the Police and Fire Pension Fund Administrator’s letter to city council members.

    We posted earlier about it here: https://jaxpolitics.wordpress.com/2008/12/26/police-and-fire-pension-administrator-fights-back/

    Keane’s 36 page letter documents that among other things, the City did not make contributions to the funds in numerous years that it should have and that the City swept pension reserves to fund reductions in millage rates.

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