note to editor - start deleting 2 1 12
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If the State of Florida would change the law, the City of Port Orange’s OPED would go away.
City Manager of Port Orange comments on article shared with us by Craig E. Young, Port Orange, Fl.
The author of the article headed the ICMA-Retirement Corporation’s Defined Contribution (401 a) and Deferred Income (457) Programs for a number of years. I met him while I was on the ICMA Board of Directors. Girard currently works for PFM who is the City’s Investment Advisor for our investments. PFM does not advise any of our Pension Plans. Girard is extremely knowledgeable about pensions and pension issues. Girard makes a great case for Pension Reforms. I plan to provide a copy of his material to the members of the Legislature this week while I am in Tallahassee.
One of the items that he mentions in his article is OPED. The OPED obligation that we have is based upon a requirement in the State Law that requires the City to offer retirees health insurance at the same prices that are charged the group. If the State of Florida would change the law, the City of Port Orange’s OPED would go away. The City of Port Orange requires the retirees to pay 100% of their health insurance cost. This is an area where the State could easily change the law. There is very little discussion in the Legislature about changing the law.
Ken Parker
City Manager of Port Orange, Fl.
poanposted 1 30 12
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Is this what the City's Pension Board is betting on?
And, who will pay the bill, if they lose this bet?
-- Craig E. Young, Port Orange, Fl.
"Some of today's pension Pollyannas claim that when stock-market trends return to their historical averages, everything works out. That is simply ignorance and puffery from people who don't even bother to understand pension math. The actuarial projections used by most public pension plans are already assuming that 85-year historical returns will continue indefinitely, even though many of the major investment consultants have already dialed down their projections for the next decade. Perpetual stock-market increases of 10 percent annually are already baked into the funding ratios that now hover just above 70 percent on average nationwide. Even if stocks return next year to their previous peak levels (DJIA 14,100), that wouldn't restore pre-recession funding ratios. That's because there have been no capital gains from equities for the five intervening years while the underlying liabilities have grown about 50 percent. Stocks may have good and bad growing seasons, but there is never a crop failure on the liabilities farm. As I explained last year, stock indexes would have to double in the next two years to restore most pension funds to their 2007 funding ratios. To return the average pension fund to full funding, stock markets would have to produce 14 percent compounded returns the rest of this decade, with no intervening recession. That would put the Dow Industrials at 30,000 in January 2020. I'll gladly give even odds against that scenario to anyone who wants to buy into that long-shot."
Read the full article Pension Puffery; Here are 12 half-truths that deserve to be debunked in 2012
poanposted 1 29 12 |
Port Orange Firefighter's Pension Plan didn't manage to earn ANYTHING, on its investments, during the past year
From Craig E. Young, Port Orange, Fl.
During last night's City Council Meeting, I heard Councilmen Polhman note, that our Port Orange Firefighter's Pension Plan didn't manage to earn ANYTHING, on its investments, during the past year.....This of course means, the Taxpayers of Port Orange, will once again, for forced to make up the difference between what they were "ASSUMED" to earn ( 8%) .....and the money they earned ( which was ZERO)
Now, I don’t expect any of our Councilmen to tell us in plain commonly-understandable language
......that the reason why they will "need" to "raise additional revenue" next year.............is that our that Firefighter's Pension Plan
didn't manage to earn ANYTHING, on its investments, during the past year!.
NO!
Instead, we're more likely to hear the same old excuses from them.......as we did in the past, such as.....
"gas went up!"
"insurance went up!"
"we need to cut the grass!"
And the Mayor's favorite:
We need more of your money: to insure YOUR "quality of life".......
Of course, the Mayor has never mentioned, that all, if not more, of this "addition revenue" the City has gotten in the past, has gone to the PENSIONS of City Employees!
QUESTION: WHAT DO GOLD-PLATED PENSIONS......FOR CITY EMPLOYEES.......HAVE TO DO WITH YOUR "QUALITY OF LIFE"?
ASK YOUR CITY COUNCILMEN!
ref.
CalPERS earns 1.1% on investments in 2011
The nation's largest public pension fund, the California Public Employees' Retirement System, posted a 1.1% return on its investment portfolio in 2011, Chief Investment Officer Joseph Dear told his board.
The 2011 performance was well below the estimated average annual return of 7.75% that the fund's actuaries say is needed to meet current and future obligations to its members.
READ MORON PUBLIC PENSIONS @
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Port Orange City Councilman asks for bio/qualifications of applicant to the Fire Pension Board.
The response from the pension board administrator to City Manager was underwhelming, and not forthcoming.
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From Port Orange City Councilman Don Burnette to
Hank,
As you know, the fire pension board is made up of 5 members. Two are appointed by the city council, two by the fire union, and a fifth that those 4 individuals elect amongst themselves. On the agenda last night was the ratification of the 5th member of the fire pension board, which they selected. It is to reappoint the person currently serving. Since I do not know the individual (Frank Sheridan, former firefighter), I asked for a bio/qualifications. The response from the pension board administrator to Ken Parker was underwhelming, and not forthcoming. (See email chain below) We were told that our ratification was required by law, and is ministerial in nature per FL statute 175, and that an application is not required. Council tabled the item last night until late March, after we have the pension board come present to us. There were plenty of character references for Mr. Sheridan by some individuals last night, which is good, but I still have no idea what his qualifications are. I just wanted to share my thoughts, as it seems inconceivable to me that we should be required to ratify their selection without proper scrutiny. I am still of the opinion that this is not an unreasonable request, and that at some point the information will be provided. If anyone wants to discuss with me, they should feel free to do so.
Take care,
Don
Don Burnette, MBA
Councilman, City of Port Orange, Dist 2
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From: Parker, Ken
Sent: Wednesday, January 18, 2012 1:13 PM
To: Sheila Hutcheson
Cc: Fenwick, Robin; Roberts, Margaret; Pohlmann, Bob; Jim.Reardon@edwardjones.com; LtPMfirefighter@bellsouth.net; Bastian, Gregg; Gherlone, Richard; scott@cdpension.com; City Council
Subject: Re: pension board appointments - Port Orange Fire
Robin Fenwich does not place items on the Agenda. The city council made it clear that they would consider the appointments at the end of March. Unless directed by the City Council to add this item to the agenda prior to that date, we will not place the item on the agenda until the March meeting date.
In reading the law, the members continue to serve until such time as the Council acts. I will make the City Council aware of your request. If they chose to add the appointment to an agenda prior to the March date, I will notify you.
Robin,
Please see the information from Atty. Christiansen. Since the Council has no authority to not ratify Mr. Sheridan's appointment as fifth member, please place this item on the
next Council agenda for action to ensure that we have a quorum for our next Pension Board meeting on Feb. 21. Thank you.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321-267-3082
321-267-4728 (facsimile)
shutch9750@aol.com
-----Original Message-----
From: Scott Christiansen <scott@cdpension.com>
To: shutch9750 <shutch9750@aol.com>
Sent: Wed, Jan 18, 2012 12:18 pm
Subject: RE: Fwd: RE: FW: pension board appointments - Port Orange Fire
The ordinance does not say that the 5th trustee is appointed by the other four, it says by a majority of the other four, in other words---three:
"The board shall consist of five trustees, two of whom, unless otherwise prohibited by law, shall be legal residents of the city, who shall be appointed by the city council, and two of whom shall be members of the system, who shall be elected by a majority of the firefighters who are members of the system. The fifth trustee shall be chosen by a majority of the previous four trustees as provided for in this subsection, and such person's name shall be submitted to the city council. Upon receipt of the fifth person's name, the city council shall, as a ministerial duty, appoint such person to the board of trustees as the fifth trustee."
"ministerial duty" is defined in Blacks Law Dictionary as "One regarding which nothing is left to discretion--- a simple and definite duty, imposed by law, and arising under conditions admitted or proved to exist."
I have had this happen before. Attached is a copy of a letter I wrote in connection with another client. It is a public record.
Scott Christiansen
Christiansen & Dehner, P. A.
63 Sarasota Center Blvd., Ste 107
Sarasota, Florida 34240
941-377-2200
Original message
From: "Sheila Hutcheson"
To: scott@cdpension.com; debbie@cdpension.com
Received: 1/18/2012 10:04:33 AM
Subject: Fwd: RE: FW: pension board appointments - Port Orange Fire
By this delay, can Frank and Jim Reardon attend the Feb. 21 Board meeting as "hold-over" trustees?
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321-267-3082
321-267-4728 (facsimile)
shutch9750@aol.com
-------- Original Message --------
The Statute as Margaret read it last night, states that the other four members must appoint the fifth member. They wanted verification that ALL four members were present at that meeting and all four members voted to approve Mr. Sheridan’s appointment. Vice Mayor Pohlmann couldn’t remember clearly if all four members were present and how they voted, other than the fact that the motion passed.
No, Mr. Reardon was not reappointed either.
They have moved the whole item to a meeting after the fire pension presentation on March 20th.
I understand your position. Sorry to be the bearer of bad news.
////////////////////////////////////////////////////////////////////
From: Sheila Hutcheson [mailto:shutch9750@aol.com]
Sent: Wednesday, January 18, 2012 9:06 AM
To: Fenwick, Robin; scott christiansen; debbie mccord
Subject: Re: FW: pension board appointments - Port Orange Fire
Robin,
Yes, the other Board members appointed Mr. Sheridan (see excerpt from the draft minutes of the Nov. 21, 2011 meeting below) contingent upon the re-election/reappointment of Trustees Gherlone and Pohlmann, which had occurred when I submitted the fifth member appointment to you earlier this month. The request for ratification of this appointment by the Council is in accordance with the Statute and ordinance and is consistent with prior actions of the Council in this regard. I have worked for the Board since May 2006 and Mr. Sheridan has been appointed fifth member several times during my tenure and his appointment has been ratified by the City Council as the Ordinance specifies.
I am copying the Pension Board Attorney for his input, as I don't know how to respond since Council's action, by Statute and Ordinance, is only ratification as a ministerial duty.
Mr. Christiansen, please advise.
Was Mr. Reardon reappointed by the City Council?
From the Nov. 21 minutes:
Consideration of Fifth Member Appointment
Member Gherlone made a motion to appoint Frank Sheridan as the fifth member contingent upon the reappointment/re-election of Trustees Pohlmann and Gherlone, respectively; Member Bastian seconded the motion which passed unanimously. The Administrator will notify the City Clerk of this appointment and request that it be submitted to the City Council for their ratification as a ministerial duty prior to the February 21, 2012 Board meeting, assuming Trustees Pohlmann and Gherlone continue in their respective slots.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321-267-3082
321-267-4728 (facsimile)
shutch9750@aol.com
On 1/17/2012 8:08 PM, Fenwick, Robin wrote:
They did not approve Mr. Sheridan's appointment
because they want more information.
Did all four members approve his appointment from the Fire board?
Robin
________________________________________
From: Sheila Hutcheson [shutch9750@aol.com]
Sent: Tuesday, January 17, 2012 10:08 AM
To: Fenwick, Robin
Subject: Re: FW: pension board appointments
Robin,
There is no application as Mr. Sheridan is the "fifth" member of the
Board. In accordance with F.S., Chapter 175 and the City's ordinance
(based on the statute), the fifth member
is appointed by the other Board Members (same as Police) at their
discretion, and the appointment is submitted to the legislative body for
ratification as a ministerial duty. No application is required.
Sheila Hutcheson
Pension Plan Administrator
3860 Grantline Road
Mims, FL 32754
321-267-3082
321-267-4728 (facsimile)
shutch9750@aol.com
On 1/17/2012 10:03 AM, Fenwick, Robin wrote:
Do you have a volunteer application for Frank Sheridan?
If not, is there any way you can ask that he go online
and fill it out for me? It will come directly to my email that way.
Thanks.
Robin
ROBIN FENWICK
DEPUTY CITY CLERK
CITY OF PORT ORANGE
1000 City Center Circle
Port Orange, FL 32129
TEL: 386-506-5566
FAX: 386-756-5290
-----Original Message-----
From: Parker, Ken
Sent: Tuesday, January 17, 2012 10:00 AM
To: Burnette, Don; City Council
Cc: Fenwick, Robin; Parker, Ken
Subject: RE: pension board appointments
Don: I will see if I can find something.
Frank is a retired Port Orange Firefighter.
He served on the Pension Board as an elected member from the Fire Dept.
for a number of years. After he retired, the four members agreed
to have Frank to be the fifth member. He was a Fire Lt. and paramedic.
He has investment properties that he and his wife had fixed up,
rented and sold over the years. He has other investments.
He has advised members of the Pension fund to not to rely on the Fire Pension
as their only source of money in retirement.
He has encouraged them to put money in the 457 deferred compensation program
that is offered by the City.
I don't know if he completed an application for the Pension Board
when he was first appointed as the fifth member by the City Council.
Ken
Robin: did Frank fill out an Board application?
If he did, would you provide it to the City Council.
Ken
-----Original Message-----
From: Burnette, Don
Sent: Tuesday, January 17, 2012 7:50 AM
To: Parker, Ken; City Council
Subject: Re: pension board appointments
Ken
Do we have a bio or list of qualifications for Frank Sherriden
and his appointment to the fire pension board on the agenda tonight?
Thanks,
Don
Don Burnette, MBA
Councilman, District 2
City of Port Orange
POANPOSTED 1 18 12
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The Port Orange Fire Pension Board's advice wasn't worth the paper it was written on!
from Craig E. Young, Port Orange, Fl.
Below, are the 15 biggest gainers of the 30 companies who comprise the DOW , and their performance in 2011, and then, below that, are the other 15 "Dogs of the DOW".....
Out of the Top 15, the Fire Pension Board managed to buy stock in just 3 of them.....INTC, CVX and WMT, and out of the bottom 15, the Fire Pension Board managed to buy stock in 6 of them.....DIS, GE, MMM, MSFT, CSO, JPM
SEEMS TO ME,
The Pension Board would have made-out better, if they had simply invested in an Index Fund that tracks the DOW, rather then spending a fortune, on "Financial Advisors"......because their financial advice, wasn't worth the paper it was written on!
1. McDonald's Corp.............................................. + | 30.71% |
| 2. International Business Machines Corp.............. + | 25.29% |
| 3. Pfizer Inc........................................................... | +23.59% |
| 4. Home Depot Inc. | ................................................+19.91% |
| 5. Kraft Foods Inc. | .................................................+18.57% |
| 6. Chevron Corp.................................................... | +16.6% |
| 7. Exxon Mobil Corp. | ............................................+15.92% |
| 8. Intel Corp........................................................... | +15.31% |
| 9. Boeing Co. | .........................................................+12.4% |
| 10. Verizon Communications Inc | ............................+12.13% |
11. Wal-Mart Stores Inc..........................................+ | 10.81% |
| 12. American Express Co........................................+ | 9.90% |
| 13. Coca-Cola Co | ...................................................+6.39% |
| 14. Travelers Cos. Inc. | ............................................+6.21% |
| 15 Johnson & Johnson..............................................+ | 6.03% |
| |
*******************************************************************
16. Merck & Co. Inc. ................................................
4.61% | | 17. Procter & Gamble Co. | .......................................3.70% |
| 18. AT&T Inc. | ...........................................................2.93% |
| 19. Walt Disney Co................................................. | -0.03% |
| 20. General Electric Co........................................... | -2.08% |
| 21. Caterpillar Inc................................................... | -3.27% |
| 22. 3M Co................................................................ | -5.30% |
| 23. Microsoft Corp. | .................................................-7.02% |
| 24 United Technologies Corp | .................................-7.15% |
| 25. E.I. DuPont de Nemours & Co........................... | -8.22% |
| |
26. Cisco Systems Inc. ..............................................| -10.63% |
| 27. JPMorgan Chase & Co. | .....................................-21.62% |
| 28. Hewlett-Packard Co. | .........................................-38.81% |
| 29. Alcoa Inc. | ...........................................................-43.79% |
| 30. Bank of America Corp. | ......................................-58.32% |
ref.
Dow Jones Industrial Average | 2011 | | components | Performance |
| 1. McDonald's Corp. | 30.71% |
| 2. International Business Machines Corp. | 25.29% |
| 3. Pfizer Inc. | 23.59% |
| 4. Home Depot Inc. | 19.91% |
| 5. Kraft Foods Inc. Cl A | 18.57% |
| 6. Chevron Corp. | 16.6% |
| 7. Exxon Mobil Corp. | 15.92% |
| 8. Intel Corp. | 15.31% |
| 9. Boeing Co. | 12.4% |
| 10. Verizon Communications Inc | 12.13% |
| 11. Wal-Mart Stores Inc. | 10.81% |
| 12. American Express Co. | 9.90% |
| 13. Coca-Cola Co | 6.39% |
| 14. Travelers Cos. Inc. | 6.21% |
| 15 Johnson & Johnson | 6.03% |
| 16. Merck & Co. Inc. | 4.61% |
| 17. Procter & Gamble Co. | 3.70% |
| 18. AT&T Inc. | 2.93% |
| 19. Walt Disney Co. | -0.03% |
| 20. General Electric Co. | -2.08% |
| 21. Caterpillar Inc. | -3.27% |
| 22. 3M Co. | -5.30% |
| 23. Microsoft Corp. | -7.02% |
| 24 United Technologies Corp | -7.15% |
| 25. E.I. DuPont de Nemours & Co. | -8.22% |
| 26. Cisco Systems Inc. | -10.63% |
| 27. JPMorgan Chase & Co. | -21.62% |
| 28. Hewlett-Packard Co. | -38.81% |
| 29. Alcoa Inc. | -43.79% |
| 30. Bank of America Corp. | -58.32% |
http://www.benzinga.com/pressreleases/11/12/g2234121/dow-jones-industrial-average-closes-up-5-53-in-2011-third-consecutive-y#ixzz1iK529vt6
From:Craig E. Young, Port Orange, Fl.
Sent: Monday, January 02, 2012 3:01 PM
Subject: stock performance/FF's pension plan 2011
These are the stocks below, that our Firefighter's Pension Fund has listed in its latest Valuation Report; and how each stock preformed in 2011.
( not including dividends)
11 stocks were up for the year ( in Green)
20 stocks were down for the year ( in Red)
5 stocks were @ zero ( in Black)
QUESTIONS:
#1. HOW MUCH DOES THE FIRE PENSION BOARD PAY FINANCIAL ADVISORS....... TO DO THIS TO THEM?
#2. HOW DO THEY PLAN TO EARN 8 PERCENT THIS WAY?
#3. WHO WILL MAKE UP THE DIFFERENCE?
DISNEY WALT CO (DIS)................................ | 0% |
WAL-MART STORES INC (WMT)................+10.81%
CHEVRON CORPORATION (CVX)................+16.6%
GENERAL ELECTRIC CO (GE)...................... | -2.08% |
3M COMPANY (MMM)......................... ......-5.30%
MICROSOFT CORP (MSFT).......................... | -7.02% |
CISCO SYSTEMS INC (CSCO......................... | -10.63% |
JPMORGAN CHASE & CO (JPM)..................-21.62%
INTEL CORP (INTC)....................................... +| 15.31% |
AT&T INC (T)............................................... +2.93%
PUBLIC SERVICE ENTERPRISE (PEG) 31/33.....+0 %
MONSANTO CO (MON) ..................................+0%
FREEPORT MCMORAN (FCX).........................-38 %
TEXAS INSTRUMENTS INC (TXN).................. -9 %
SANDISK CORP (SNDK)......................... .........-4 %
ORACLE CORP (ORCL).....................................-19%
GOOGLE INC-CL A (GOOG)............................+6.8 %
EMC CORP (EMC)......................................... -8.6 %
DELL INC (DELL).............................................+7 %
CISCO SYSTEMS INC (CSCO)......................... -10 %
APPLE INC (AAPL) .........................................+23
NORFOLK SOUTHERN CORP (NSC) ...............+14
KENNAMETAL INC (KMT)..............................-10%
HONEYWELL INTL INC (HON) ........................0%
EMERSON ELECTRIC CO (EMR)..................... -19 %
DOVER CORP (DOV) .........................................0%
ZIMMER HOLDINGS INC (ZMH)..................... -2%
VARIAN MEDICAL SYSTEMS INC (VAR) .........-4.3 %
QUEST DIAGNOSTICS INC (DGX).....................+7
MEDCO HEALTH SOLUTIONS INC (MHS) ........ -8.2%
ENDO PHARMA HLDGS INC (ENDP)............. -2.8 %
CELGENE CORP (CELG) ......................................+11
ABBOTT LABORATORIES INC (ABT)..................+19
COVIDIEN PLC (COV) .........................................-4 %
WELLS FARGO & COMPANY (WFC) ..................-13%
GOLDMAN SACHS GROUP INC (GS).................-48%
BANK NY MELLON CORP COM (BK)..................-33%
ref.
Dow Jones Industrial Average | 2011 | | components | Performance |
| 1. McDonald's Corp. | 30.71% |
| 2. International Business Machines Corp. | 25.29% |
| 3. Pfizer Inc. | 23.59% |
| 4. Home Depot Inc. | 19.91% |
| 5. Kraft Foods Inc. Cl A | 18.57% |
| 6. Chevron Corp. | 16.6% |
| 7. Exxon Mobil Corp. | 15.92% |
| 8. Intel Corp. | 15.31% |
| 9. Boeing Co. | 12.4% |
| 10. Verizon Communications Inc | 12.13% |
| 11. Wal-Mart Stores Inc. | 10.81% |
| 12. American Express Co. | 9.90% |
| 13. Coca-Cola Co | 6.39% |
| 14. Travelers Cos. Inc. | 6.21% |
| 15 Johnson & Johnson | 6.03% |
| 16. Merck & Co. Inc. | 4.61% |
| 17. Procter & Gamble Co. | 3.70% |
| 18. AT&T Inc. | 2.93% |
| 19. Walt Disney Co. | -0.03% |
| 20. General Electric Co. | -2.08% |
| 21. Caterpillar Inc. | -3.27% |
| 22. 3M Co. | -5.30% |
| 23. Microsoft Corp. | -7.02% |
| 24 United Technologies Corp | -7.15% |
| 25. E.I. DuPont de Nemours & Co. | -8.22% |
| 26. Cisco Systems Inc. | -10.63% |
| 27. JPMorgan Chase & Co. | -21.62% |
| 28. Hewlett-Packard Co. | -38.81% |
| 29. Alcoa Inc. | -43.79% |
| 30. Bank of America Corp. | -58.32% |
http://www.benzinga.com/pressreleases/11/12/g2234121/dow-jones-industrial-average-closes-up-5-53-in-2011-third-consecutive-y#ixzz1iK529vt6
1 2 12
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.we're talking tens of thousands of dollars in "investment fees" here........and for WHAT?
Is there any accountability to the taxpayer's here?
Henry,
I’m sure, that if we get a response from this at all, it will go something like this........
"Craig, you failed to mention the impact that "dividends" have on the "Total Return" to the Firefighter's Pension Plan."
But, nobody should be fooled by that kind of talk.....The fact is, "dividends", in the case of this Pension Plan, wouldn't be large enough to offset their loses in equity. However, the dividends will mitigate their equity loses to a certain degree.......But, they are STILL, a long way away from their "assumed" 8 percent earnings....
And lets not forget, stocks are just 60% of their entire portfolio.....the other 40% is in government and corporate bonds.
And these days, their combined bond portfolio is earning approx. 4 percent.
So, that means: to attain the Firefighter's Pension Fund overall "assumed" rate of return of 8 percent; their stock portfolio would have to attain at least a 13/14 percent growth rate. And that isn't going to happen.....dividends or no dividends....
ps
I did this today, while watching football, because I was interested in seeing how the performance of our City's Firefighter's "Professionally Managed" Pension Funds, ( They actually pay people to do this ) stacked-up against an Index Fund......that any Harry-Homeowner could invest in.
And frankly, I don’t see any difference......except for the FEES these "Financial Advisors" have been charging to the Fire Pension Board.....
And that makes me wonder......
Who hired them?
And what process was used to Hire them?
Was there a "process"?
And what "process" was that?
.................we're talking tens of thousands of dollars in "investment fees" here........and for WHAT?
Is there any accountability to the taxpayer's here?
Bottom Line:
You must realize, the Pension Board is NOT the City Council......it's "independent" of the City Council.
So it is the Pension Board who hired these "Professionals".
Of course, when the Pension Board runs short of funds.....the City Council will get the call.....and the bill.....and then, the Taxpayers will get the bill..
........so the natural laws of gravity are still in effect here: it all runs downhill......right to us, the Taxpayers!
One day, I'm going pick-up one of those things that keep floating downhill from them, and throw it back in their faces!
( I'll be sure to pick it up by the "clean end")
-- Craig E. Young, Port Orange, Fl.
1 2 12
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=================================================
imaginary satire letter sent to us by Craig E. Young, Port Orange,Fl. 1 1 12
Dear Abby,
WE WERE "ASSUMING" WE WOULD EARN 8 PERCENT every year, forever, so we could all retire after just 20 years of working as firefighters........
What should we do?
A.) Lower our expectations...and forget about retiring at age 40
B.) Have the City Council write our Pension Fund a Bigger Check, by increasing taxes and fees on people who live on their Unemployment checks, Social Security checks and their dwindling 401K's, or maybe have them stop cutting the lawns in the medians, and close down the Parks and Recreation Department.
After all, what's more important, parks and other "stuff" like that, or our pensions?
Here's a little overview of the year-to-date performance of some of the major banking stocks we invested in, as of December 29, 2011:
- BofA: -60.38%
- Citi: -44.76%
- Goldman Sachs: -46.41%
- JPMorgan: -23.03%
- Morgan Stanley: -45.24%
As you can see, we didn't earn 8 percent....And with the S&P 500 flat for the year, the NASDAQ down 1 percent, and Bonds paying next to nothing, we don't know what to do!
I don't think its FAIR that we should have to work until we're 50! That's not what we were PROMISED!
And now, the City Council wants to change our Pensions, so we have to work longer, and they won't even pay us that 6.5 percent interest on our DROP account balances anymore!
( DROP is where we get a paycheck and a pension check placed into special account for 5 years. And when we finally retire, we get a really Big Check of $250,000 to $300,000+ and start collecting our monthly pension checks of $4000-$5000)
And we won't even get Step Increases on top of Cost of Living Adjustments ( COLAS) anymore either!
Our 2.5 percent annual Step Increases used to be AUTOMATIC, and with the 5 percent COLAS we used to get, we really got raises of 7.5+ percent.
This went on for years.....and now its all gone!
And then, back in 2004, the City Council was nice enough to lower our contributions to our own pension plan from 8 percent to one half of one percent!
Wow! That was some year!
And now, they want to raise that back to 8 percent! But they can't-not without our approval...so they want to cut our pay by 6 percent instead!
WHAT SHOULD WE DO?
signed,
Your Firefighting Hero,
Lt. Bob,
Commissar, Port Orange Firefighters Union
ps
Why doesn't the City Council consider doubling the current 10 percent tax on water? Or the current 6 percent fee on electricity?
I see a lot more people using Food Stamps in our town, and more kids are getting Free School Lunches than ever!
So, I know they've got more money for our Pensions!
imaginary satire letter sent to us by Craig E. Young, Port Orange,Fl. 1 1 12
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