How 1 Legislature Solved 1 City Pension Crisis.

Which state are talking about? Florida

Which city pension system was in “crisis”? Jacksonville

What did the Legislature do to “help” Jacksonville? 

• Limited Scope. carves out an exemption limited to Jacksonville
•  Exception to state actuarial standards. the exemption allows for Jacksonville to go “beyond the 30-year maximum period” statutory actuarial soundness requirement
• Permits Local Sales tax to fund local pension. allows local voters to decide if they want to “enact a half-cent sales tax dedicated to helping pay off the city’s roughly $2.7 billion in pension debt”
• Flexibility before 1/2 cent sales tax. Before any new sales tax revenue flows, the city can either:
  • borrow to pay pension costs
  • reduce the actuarial problem by allowing for an accounting mechanism that would allow the present value of the future sales tax increase to count on paper as a financial asset

Florida Times Union | Pension bill lets city exceed pension debt repayment limits, state agency says