Letter from Mayor Iorio to Chairman Ring IP: 96.228.149.77 Posted on March 9, 2011 at 01:42:26 AM by Sonny Lefstead
March 7, 2011
The Honorable Jeremy Ring, Chairman and Members of the Senate Governmental Oversight and Accountability Committee
210 Senate Office Building
404 South Monroe Street
Tallahassee, FL 32399-1100
Dear Chairman Ring:
I am writing to you regarding your efforts to change pension systems. As you go about this task, please keep in mind the following:
One, if you require the conversion from a defined benefit plan to a defined contribution plan there exists the potential for financial consequences for cities with established defined benefit plans if the bill contains a requirement that plans become defined contribution plans in a short period of time. Such a transition may change the actuarial assumptions that are currently relied on to determine funding for the defined benefit plan.
Second, it is important for the Legislature to recognize that there are substantial differences in existing local plans. For example, unlike many plans in Florida, the Tampa Fire and Police members’ contribute a significant portion of their pay to fund the plan. In addition, they are not in the Social Security system, and therefore rely more heavily on their pension plan, which also includes disability and death benefits.
We ask that you proceed cautiously when establishing new minimum standards or eliminating current law provisions, so that the actuarial merits of each may be determined.
This type of approach will also provide additional time to recognize and prevent any unintended consequences of increasing costs to both cities and plan members.
Thank you for the time and effort you and your committee members have spent on this important issue. We appreciate the opportunity to provide our input for your consideration.
Sincerely,
Pam Iorio
cc/Members of the Hillsborough County Legislative Delegation
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