Tonight the Pensacola City Council ratified a new three-year collective bargaining agreement with the International Association of Firefighters (IAFF) Local 707, the labor union representing City of Pensacola firefighters.
Unlike the contracts with the general employees and police officers’ unions, the Fire Pension will remain open to current and future firefighters. However there are several changes that will reduce the unfunded liability of the pension plan:
- Caps the number of overtime hours considered pensionable,
- Changes the way in which final average earnings are calculated for firefighters with less than 20 years of service,
- Conforms spousal benefits for new hires to those offered by the Florida Retirement System (FRS), and
- Reduces cost of living adjustments for future Deferred Retirement Option Plan (DROP) participants and retirees.
In return, firefighters will receive a one-time bonus, and those not enrolled in DROP also receive wage increases spread out over the three-year term of the contract.
Since the Fire Pension was established by Special Act, all changes are contingent upon the approval of the Florida Legislature.
In a press release, Pensacola Mayor Ashton Hayward said the vote tonight fulfilled a campaign promise he made in 2010 to “get the city’s pension costs under control.”
He said, “Reaching these agreements took unity and teamwork, and I want to thank the City Council, Local 707 president Jose Cobbs, and our employees for working with us to protect the City’s financial health. Cities across America are struggling with pension issues, but we are working together in Pensacola to find solutions.â€
According to the release, the collective bargaining agreements with the general employees and police officers’ unions, which were ratified in 2012, reduced the City’s unfunded pension liability by nearly $15 million. The IAFF contract is expected to result in a further reduction of approximately $4.8 million.
