Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. You need to know this news in the fight for a secure retirement.
NPPC News
Michigan has a long and complicated history with pensions. One of the first states in the country to stop offering state employees defined-benefit retirement plans, the time to reintroduce pensions may finally be here. Read more about Michigan’s history–and where they’re hoping to go in the future–in our latest blog, High Pension Stakes in the Great Lakes State.
Jacksonville Brings Back Pensions for Firefighters and Police
Firefighters in Jacksonville, Florida, secured a more stable retirement plan this week, in addition to other benefits–including salary increases. After negotiations with the Jacksonville Association of Firefighters, the city has announced that all new hires will be enrolled in the Florida Retirement System (FRS), and current employees who are part of the Defined Contribution plan will have the option to switch over if they choose.
This took place a day after a similar deal was made with the Fraternal Order of Police, allowing an on-ramp and return to a defined benefit pension plan for its members. Pensions are vitally crucial for our public safety officers because of the inherent risk in these positions. The average retirement age for police officers and firefighters is younger than other positions due to the physical and emotional toll of these jobs, which often lead to people retiring long before workers in other sectors, so they must have a fair and equitable pension to support them.
Pensions retain employees. Due to the ubiquity of fire and police departments, many municipalities, counties, and states that do not offer Defined Benefit pension plans struggle to retain workers when neighboring departments provide superior benefits. Jacksonville has taken the right step in investing in its workforce and giving its first responders a fair retirement plan.
States Lacking a DB Plan Have Trouble Retaining Workers
Noah Zuss writes in PLANSPONSOR about the dire situation in Alaska and Rhode Island regarding the retention of public employees. Despite a widespread campaign and advocacy from working-class people, the Alaska state legislature still needs to bring back pensions for public workers. The proposal will remain on hold until at least January 2025, when the next legislative session opens. Alaska is so understaffed with state troopers that residents have been advised to “arm themselves.” Defined Benefit pension plan is the best way for a state to retain public sector workers. By providing a consistent and supportive retirement, workers know they will have security and support after their public service career ends. Without these plans, turnover skyrockets, and communities are left underserved. We must support individuals who are willing to sacrifice for these demanding careers by providing them with a solid and equitable defined benefit pension plan.
