The City of Jacksonville’s current pension contribution rates are growing at an unsustainable rate and, if not addressed, will affect the city’s ability to fund government services properly.
In 2003, pension costs were about $40 million. Last year they were more than $100 million and 10 years from now, pension costs could absorb more than $260 million from the general fund. To view historical pension costs and the cost projections please see the charts below.
The driving forces behind increasing pension costs have been growth in benefits, actuarial charts that masked the actual cost of benefits and the market’s failure to meet investment targets in a declining economy.
The city is currently negotiating with the Police and Fire Pension Fund to modify the city’s pension system and create a plan that is fair, competitive and sustainable. The General Employee Pension Fund has already settled negotiations with the city which have been implemented for new employees.