Tuesday, April 12, 2011

Local governments get option to pay for unfunded liabilities from Union Pension Plans

The Government Operations Subcommittee just approved of GVOPS 11-17 where local governments would be able to use additional proceeds from insurance premium taxes to pay for unfunded liabilities within their pension plans. Here in Lake Worth the unfunded liability is a whopper.

It was reported by WCTV that the measure, which passed on a 10-5 party-line vote, differs from a less sweeping Senate plan that would allow local governments with substantial unfunded liabilities to use some of the tax proceeds to fill the gap.

I can't find the vote tally on this Bill but if the above is correct, we can assume that Jeff Clemens voted "NO" on this Bill as there are 10 Republicans and 5 Democrats on the Government Operations Subcommittee. Jeff please explain. I recently read that Lake Worth was already doing this.

Union members of police and fire in Lake Worth virtually get three different pensions: 1) a percentage of the taxes from the total of residents' paid home insurance premiums, 2) social security and 3) local Retirement plans.

I approve of this Bill.

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