The 30 Year Settlement

 

Every year, the State of Florida contributes funds to qualified police and fire pension funds, which are derived from insurance rebates.  This is commonly referred to as Chapter 175/185 monies.

In 1990 and 1991, the State of Florida withheld these funds from the City of Jacksonville because the City failed to comply with certain statutory provisions.  In or about 1992, the Police and Fire Board of Trustees sued the City for failing to make mandatory contributions and misusing state premium tax revenues, among other things.

To settle their disputes, the City and the Board of Trustees entered into an eight-year contract with specific provisions for benefits, funding requirements and actuarial assumptions, which was approved and adopted by City ordinance, and the Board of Trustees dismissed the lawsuit.

On or about March 5th, 2001, the City and the Board of Trustees entered into a replacement contract entitled, “Restated Contract between the City of Jacksonville and the Jacksonville Police and Fire Fund Board of Trustees,” which was approved and adopted by another City Council ordinance. 

Both parties agreed to amend the contract in 2003, 2004, and 2006.  Each time, the Jacksonville City Council agreed to the contract, adopted an ordinance stating their support, and approved it.

Both the City of Jacksonville and the Police and Fire Pension Fund Board of Trustees agreed to a 30-year contract that will expire on September 30th, 2030.  This contract applies to ALL fire fighters and police officers hired by the City of Jacksonville through September 30th, 2030.

 

The 30-Year Settlement Agreement also has a clause for cooperation, clearly stating:

        -Both the City of Jacksonville and the Police and Fire Pension Board of Trustees hereby covenant and agree that they shall neither take any action nor fail to take any action, to the extent that they may do so, permit any person to take any action which if either taken or not taken, would adversely affect the terms of this contract. 

The 30-Year Settlement Agreement is a contract which allows the City to enhance or increase pension benefits but not reduce benefits.  Reducing benefits is a violation of the state statute pertaining to what is commonly known as 175/185 monies, which is free money given to the City by the State of Florida for pension enhancements.  Violation of this statute disqualifies the City of Jacksonville from receiving this free money and shifts the burden of this $10 million annual payment from the State of Florida to the Jacksonville tax payer.

The Jacksonville Association of Fire Fighters and the Fraternal Order of Police, who contractually represent Jacksonville’s fire fighters and police officers, are not mentioned in the 30-Year Settlement Agreement and do not administer the Jacksonville Police and Fire Pension Fund.

The City of Jacksonville and the Jacksonville Association of Fire Fighters have NEVER collectively bargained pension benefits.  Of all the contracts negotiated by these two entities, none of them have any language in that pertains to the pension.