September 2, 2009

Contact: Fred Nesbitt FPPTA Media Consultant 954-564-4329 954-881-2842 - Cell Fnesbitt911@gmail.com

Editorial “How to fix pension mess” was Misleading When did The Miami Herald become a mouthpiece for the League of Cities, and what happened to its well-known reputation for journalistic accuracy?

In your editorial of 8/31/09: How to fix pension mess, the newspaper sacrificed both its independence and integrity by printing antagonistic propaganda. While you implied factual accuracy, your editorial was a collection of hyperbole and insinuations about government pensions.

Where to begin? Only about 10 percent of public sector employees can retire before the

age of 50 – typically public safety employees – and most of them hardly retire “long before” that age. Even public safety employees must serve 20-25 years before retirement.

The editorial implied that public pensioners receive nearly their full working salary.

Wrong again. Most top out at about 80 percent of their salary and then only after 25-30 years on the job. Many don’t receive that much, and since public sector salaries still lag behind the private sector for the same jobs, the idea that 80 percent of a public salary is overly generous is a stretch. In fact, the average public pension in Florida is $1,354 per month – hardly lavish.

The editorial also stated that “cost of living adjustments go far beyond the national

average”, when in fact 50 percent of Florida’s plans do not have COLAs. And what, pray tell, does “far beyond the national average” actually mean?

Overtime pay included in salary calculations for pension benefits was represented as an

excessive perk. Public sector workers labor in notoriously under-staffed departments that require them to far exceed the productivity expectations of their private sector counterparts, and oblige them to spend far too much time away from their families to serve the public, a daily condition of work for which they deserve to be paid.

The statement that “most businesses were turning to 401(k) plans, in the 1980s and

1990s…” was another misrepresentation. Defined benefit plans are still prominent among Fortune 1000 companies. It has been small employers, or those who have gone bankrupt, who have steadily moved in the direction of defined contribution plans.

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FPPTA – Editorial Response Page 2 of 2

Cities certainly face challenges in meeting pension funding obligations during a down

market. Reduced revenues caused by the housing slump hurt. However, let’s not forget that during strong stock market years, many cities made no contribution to their employees’ pension plan. In fact, approximately 80 percent of public pension payouts nationally come from earnings on investments and employee contributions, not taxpayer dollars.

If there are problems with public pension plans, then let’s fix them. If there are abuses,

let’s stop them. We oppose enhancing pension benefits without added funding. To fix the problems, we should engage in honest discussions with real facts and figures. Sarcastic hyperbole won’t solve any problems. The Miami Herald can do better. Raymond T. Edmondson, Jr., CPPT FPPTA, Chief Executive Officer 2946 Wellington Circle East, Suite A Tallahassee, Florida 32309 Phone: 1-800-842-4064 | Email: fppta@fppta.org

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The FPPTA was established in 1984 and provides educational and support services to

488 pension boards throughout the state. Programs include local continuing education

courses and seminars, education certification, and an annual professional development

conference for members statewide.