1. Local Government Retirement Benefits David S.T. Matkin Askew 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

2. 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) 2

3. FRS Pension Contribution Rates 3

4. County Pension Costs 4

5. 5

6. 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 6

7. City Pension Costs 7

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9. 9

10. 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

11. Measures of Impact Accrued Liability Annual “Required” Contribution Actual Contribution 11

12. County Accrued OPEB Liability (Gross) 12

13. City Accrued OPEB Liability (Gross) 13

14. County Accrued OPEB Liability (Ratio) 14

15. City Accrued OPEB Liability (Ratio) 15

16. County Required Contributions (Ratio) 16

17. City Required Contributions (Ratio) 17

18. County Actual Contributions 18

19. City Actual Contributions 19

20. 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 20

21. 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 21

22. Largest 100 Florida Cities Actual Contribution ▫32% of required contribution funded (average) ▫4 fully fund their required contribution ▫3 over fund their required contribution 22