Thanks Tom. As a taxpayer, I'm thankful the City Mgr is leaning towards minimizing hiring (one of the biggest expenses in any organization) . The article is correct to attempt to illustrate the total cost of a employee by mentioning pensions. (Don't forget Health Care benefits). Thus the "fully burdened" cost of a employee is much higher than the gross salary indicates. I'm not well informed on City benefits, but why wouldn't non first responders be on 401Ks? As a taxpayer, the employer match should be a sunk cost, and thus I'm not obligated to support a employee into perpetuity well after they leave City employment. I seem to recall a discussion in a Council Mtg several years ago where now former Councilman Baily pointed out that PBPD's pension benefits outperformed many other law enforcement departments in the County. (I hope this is emphasized to prospects) Again, the total cost to the taxpayer should d be understood. Funny, how all of this new home construction, with homestead values set significantly higher to reflect recent increased home values/costs, and non-homestead homeowners paying property taxes on the full 2025 assessed value, a case of wage poverty is being made here. Where's the money going?
Good questions, Tom. The fully burdened cost is where it gets real.
Palm Bay has 6 bargaining units (FOP, IAFF, and two NAGE units for blue and white collar). Sworn police and fire are on a locally administered defined benefit pension. The formula is tiered: 3% per year of service at 20 years, then 5% for each year beyond 20. A police officer who retires at 28 years gets 100% of their final average salary. For life. Firefighters have a similar structure plus a $458 monthly supplemental.
That's not standard. Most Florida cities cap pension benefits at 80-90% and use the Florida Retirement System at a flat 3% per year. Palm Bay's 5% accelerator above 20 years is among the most generous in the state.
The city pays $11 million a year to fund both pension plans. The combined unfunded liability is $75 million. Police is 78.2% funded. Fire is 74.1%. Last fiscal year, police salaries rose 9.85% and fire salaries rose 13.18%, both against an actuarial assumption of 4.77%. Investment returns came in at 4.5% against a 7.5% assumption. When both sides of the equation miss by that much, the shortfall grows and the city's required contribution keeps climbing.
General employees get no pension. They're on a 401(a) with a 3% city match.
Your question about where the new construction revenue goes is one we're looking at. Stay tuned.
Funny they had money to build that big fancy city building on Malabar, spared no expense there! I’m sure the big shots got big raises and how about doing a 401K match instead of big employer paid pension, most companies did away with those years ago .. Seems to me more residents equals more tax money since the hugh surge of residents moving from other states.. infrastructure is a disaster here.. no money for that.. where has all the money gone?!?!?! Totally Rediculis but not surprising, I’ve been here since 1992 and not much has changed except for more high price single family houses, unaffordable apartment buildings, storage facilities, car washes and jiffy stores…sad
Thanks Tom. As a taxpayer, I'm thankful the City Mgr is leaning towards minimizing hiring (one of the biggest expenses in any organization) . The article is correct to attempt to illustrate the total cost of a employee by mentioning pensions. (Don't forget Health Care benefits). Thus the "fully burdened" cost of a employee is much higher than the gross salary indicates. I'm not well informed on City benefits, but why wouldn't non first responders be on 401Ks? As a taxpayer, the employer match should be a sunk cost, and thus I'm not obligated to support a employee into perpetuity well after they leave City employment. I seem to recall a discussion in a Council Mtg several years ago where now former Councilman Baily pointed out that PBPD's pension benefits outperformed many other law enforcement departments in the County. (I hope this is emphasized to prospects) Again, the total cost to the taxpayer should d be understood. Funny, how all of this new home construction, with homestead values set significantly higher to reflect recent increased home values/costs, and non-homestead homeowners paying property taxes on the full 2025 assessed value, a case of wage poverty is being made here. Where's the money going?
Good questions, Tom. The fully burdened cost is where it gets real.
Palm Bay has 6 bargaining units (FOP, IAFF, and two NAGE units for blue and white collar). Sworn police and fire are on a locally administered defined benefit pension. The formula is tiered: 3% per year of service at 20 years, then 5% for each year beyond 20. A police officer who retires at 28 years gets 100% of their final average salary. For life. Firefighters have a similar structure plus a $458 monthly supplemental.
That's not standard. Most Florida cities cap pension benefits at 80-90% and use the Florida Retirement System at a flat 3% per year. Palm Bay's 5% accelerator above 20 years is among the most generous in the state.
The city pays $11 million a year to fund both pension plans. The combined unfunded liability is $75 million. Police is 78.2% funded. Fire is 74.1%. Last fiscal year, police salaries rose 9.85% and fire salaries rose 13.18%, both against an actuarial assumption of 4.77%. Investment returns came in at 4.5% against a 7.5% assumption. When both sides of the equation miss by that much, the shortfall grows and the city's required contribution keeps climbing.
General employees get no pension. They're on a 401(a) with a 3% city match.
Your question about where the new construction revenue goes is one we're looking at. Stay tuned.
Funny they had money to build that big fancy city building on Malabar, spared no expense there! I’m sure the big shots got big raises and how about doing a 401K match instead of big employer paid pension, most companies did away with those years ago .. Seems to me more residents equals more tax money since the hugh surge of residents moving from other states.. infrastructure is a disaster here.. no money for that.. where has all the money gone?!?!?! Totally Rediculis but not surprising, I’ve been here since 1992 and not much has changed except for more high price single family houses, unaffordable apartment buildings, storage facilities, car washes and jiffy stores…sad