st. petersburg city employee forum protecting your retirement benefits and preventing bankruptcy

St. Petersburg City Employee ForumProtecting your

Retirement Benefitsand

Preventing Bankruptcy

Natural RightsNatural RightsIndividual LibertyIndividual Liberty

Limited Limited GovernmentGovernment

Consent of the Consent of the GovernedGoverned

Property RightsProperty RightsFree MarketsFree MarketsEqual JusticeEqual JusticeRule of LawRule of Law

Cost of St. Cost of St. Pete Pete

GovernmentGovernment

Lower TaxesLower Taxes

Prosperity Prosperity and Jobsand Jobs

ACCOUNTABIACCOUNTABILITYLITY

FreedomFreedom

Community of Community of NeighborsNeighbors

$325 Million

!

City STILL City STILL underfunds underfunds

Pensions Pensions with with

maximum maximum property property

tax tax collections collections

in 2007!in 2007!

General, Fire and Police Promised Vs. Actual Growth in Pension funds

Fire

PoliceGeneral

GeneralPolice

FireFire

“City councils continued approving raises and benefits for workers, ignoring warnings from citizen oversight commissions. Police and fire officials could retire at 50 with 90% of their final year's salary. After one year of service, public employees could get health care coverage for life, and so could their families. Starting in 2005, the city began spending $3 million to $4 million a year more than it was taking in, draining its reserve fund.”

Huffington Post 7/23/2012

Vallejo, CA Stockton, CA San Bernadino, CA Central Falls, RI Jefferson County, AL Boise County, Idaho Harrisburg, PA DETROIT

“…up to $100 million in health care obligations were removed when the city cut benefits for retirees to $300 per month, down from $1,500 in some cases.”

But Vallejo also racked up $13 million in legal bills and was unable to rework its pension plan, still a $165 million unfunded liability.

(St. Pete is $140 million unfunded for pensions and $177 mill unfunded for Health benefits!)

"It is painful to say to people who supported you in an election that I have to cut your salaries. That's hard," said Mayor Osby Davis, who has held that seat since 2007.

Huffington Post 7/23/2012

Deep staff cuts Sworn police from 155 to 90 Firefighters from 122 to 70 with three

fire station closures Deep cuts in spending on streets,

building maintenance and other programs

CENTRAL FALLS RI – Bankrupt!

55% HAIR CUT TO PENSION 55% HAIR CUT TO PENSION PAYOUTSPAYOUTS“It is a settlement about which no

government officials associated with Central Falls should be proud,” said Matt McGowan, the lawyer who represents retirees. “In an example of abject irresponsibility on the part of its elected officials, its pension plans were persistently and habitually underfunded for a decade or more.”

1. Get the Truth from your Union Leaders and Politicians

2. Fund the Pensions!3. Focus Spending on Core Services first

A. Public Safety, Roads, Utilities, Parks

4. Reform pension to protect it.5. Prevent bankruptcy.6. Stop Wasting Money on Things we

can’t afford. (Lens, SRI, Rays, Rail)

1. You own it2. Incentives to Change – LEVERAGE

needed change to your advantage3. Pay Raise,4. Earlier Vestment5. Portable benefits6. Change last-in, First out7. Free financial planning

Keep current obligations CHOICE – Defined benefit or Defined

contribution – You Choose based on Incentives Raise, Earlier vestment, portability,

changed hire/fire, free financial advice Transition to Defined Contribution Plan Re-evaluate retirement age Re-evaluate overtime rules Save the city from Bankruptcy-

Prevent you from being left in the cold.

THANK YOU!