Florida cities face crushing weight of expected benefits
Cities throughout Florida need to find a way to fund employee pensions or they will face a crushing economic shortfall that could cripple retirement benefits for thousands of workers, the Miami Herald reports.
According to the Herald, Miami was on the hook for approximately $100 million a year in pension payments and healthcare coverage in 2009, but had just $74 million on the books to fund such responsibilities. Similarly, St. Petersburg had just $40 million available to fund $51 million worth of entitlements.
"Florida’s been served a warning," Carol Weissert, a Florida State University political science professor, told the paper.
"When you have that backlog of not fully-funding your obligation, you have to increase how much you pay each year to try to catch up," added David Matkin, an assistant professor at the Askew School of Public Administration at FSU.
According to the Sunshine State News, Florida Governor Rick Scott and the state legislature will debate a bill that would mandate employees contribute to their retirement benefits. Florida is currently the only state in which retirement benefits are 100 percent publicly funded.
According to the Herald, Miami was on the hook for approximately $100 million a year in pension payments and healthcare coverage in 2009, but had just $74 million on the books to fund such responsibilities. Similarly, St. Petersburg had just $40 million available to fund $51 million worth of entitlements.
"Florida’s been served a warning," Carol Weissert, a Florida State University political science professor, told the paper.
"When you have that backlog of not fully-funding your obligation, you have to increase how much you pay each year to try to catch up," added David Matkin, an assistant professor at the Askew School of Public Administration at FSU.
According to the Sunshine State News, Florida Governor Rick Scott and the state legislature will debate a bill that would mandate employees contribute to their retirement benefits. Florida is currently the only state in which retirement benefits are 100 percent publicly funded.
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