By Stefan Jaeger
St. Petersburg Times (Florida)
ST. PETERSBURG, Fla. — When it comes to their pensions, 158 former St. Petersburg firefighters feel they have been badly burned.
Since their pension plan was implemented in 1971, the firefighters have gotten only three cost-of-living adjustments, in 1988, 1997 and 2006. And their request for a 3 percent increase in 2010 is not likely to win approval.
The city says its pockets are virtually empty in a tough budget year.
“To be honest, it’s unlikely that they will receive an increase. We are looking for cuts, not additional recurring expenses,” said Gary Cornwell, the city’s director of human resources.
“All we are asking for is the fourth adjustment in nearly four decades,” said Michael J. Reilly, a veteran of 31 years with the fire department. “We’re floating out there and they’re forgetting about us.”
The 3 percent increase the retired firefighters are seeking would add $140,700 to the city pension fund’s payroll. The total amount for last year’s benefits under the plan was $5,483,699.
“The problem is that no automatic adjustment exists for their plan,” said Ray Landis, a lieutenant in the fire department and one of five members on the firefighters pension board.
Increases are recommended by the pension board, then forwarded to the city’s administration. If the mayor approves an increase, it is sent to the City Council for a final vote.
The board has recommended yearly increases ever since the last adjustment was granted in 2006. But the city administration denied them in 2007, 2008 and 2009.
In the meantime the U.S. Consumer Price Index for the St. Petersburg-Clearwater area has steadily risen, 4 percent in 2006, 5.2 in 2007 and 3.2 in 2008.
“After everything is taken out, I’m left with around $900 a month,” said Mike Bingham, 57, who joined the fire department in 1972 and stayed for 27 years.
“I run a small pest-control company which barely keeps my family afloat,” he said. “I had to lay off three full-time workers over the last eight months.”
Firefighters who retire after Oct. 1, 2008, stand to receive an annual cost-of-living increase. “We’re working on a change to their plan,” said Vicki Grant, the city’s benefits manager. “However, this will only take effect under the condition that sufficient state premium tax funds are available.”
That change does nothing for Reilly and others who retired earlier.
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