Local Government Retirement Benefits

David S.T. MatkinAskew School of Public Administration & Policy

November 9, 2010

LeRoy Collins Institute ~ Carol Weissert, Ph. D., Director

FSU Campus ~ 506 W Pensacola Street Tallahassee FL 32306-1601

850-644-1441 ~ 850-644-1442 fax

Overview

•Pensions

•Other Post-Employment Benefits (OPEB)

•Comprehensive Annual Financial Reports▫FY2003 to FY2009

Random selection of 100 Florida cities▫FY2009

Largest 100 Florida cities (OPEB only, 83 published)

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FRS Pension Contribution Rates

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County Pension Costs

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County Pension Costs

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County Pension Costs

•2009▫Sheriff – between 30 to 60 percent of cost▫General – between 30 to 60 percent of cost▫Clerk of Court – average about 7 percent▫Property Assessor – about 2 percent▫Tax Collector – about 2 percent▫Supervisor of Elections – about 1 percent

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City Pension Costs

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City Pension Costs

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City Pension Costs

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Other Post-Employment Benefits• What are OPEBs?

▫Recognizing expenses when services are performed

▫GASB statements no. 43 & no. 45▫Explicit and implicit benefits

Florida mandates implicit benefit▫Actuarially accrued liability

• Should we be concerned?▫Demographic▫Healthcare costs▫Equity

Measures of Impact

•Accrued Liability

•Annual “Required” Contribution

•Actual Contribution

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County Accrued OPEB Liability (Gross)

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City Accrued OPEB Liability (Gross)

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County Accrued OPEB Liability (Ratio)

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City Accrued OPEB Liability (Ratio)

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County Required Contributions (Ratio)

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City Required Contributions (Ratio)

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County Actual Contributions

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City Actual Contributions

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Largest 100 Florida Cities• Accrued Liabilities

▫28% of total governmental expenditures (average)

▫43 with liabilities lower than 15% of total government expenditures

▫14 with liabilities greater than 50% of total government expenditures

▫6 with liabilities greater than 100% of total government expenditures

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Largest 100 Florida Cities

•Annual “Required” Contribution▫2.7% of total government expenditures

(average)

▫43 with required contributions lower than 1.5% of total government expenditures

▫11 with required contributions greater than 3% of total government expenditures

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Largest 100 Florida Cities

•Actual Contribution▫32% of required contribution funded

(average)

▫4 fully fund their required contribution

▫3 over fund their required contribution

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