Police and Fire Pensions in Florida: A Historical Perspective and Cause for Future Concerns

Supplementary contributions to pension plans are predicted to increase for some Florida municipal governments because of the funding source used for police and fire plans. This article examines the history of local government pensions and focuses on Chapter 175 and 185 Pension Plans, which access funding through a tax on property insurance premiums. The notable legislative changes, Attorney General Opinions and court cases are also briefly assessed. This study research examines a sample of 32 pension funds in 20 Florida cities and indicates that the cost of providing these pensions is increasing because of legislative mandates for use of these revenues. This is evidenced by a historical decrease in the funding ratios of the funds of the cities sampled.