Three Sun Coast-area municipal pension funds are over-extended — and that has red flags flying in the financial community…
It’s about what’s called the “ratio of unfunded liabilities”. In other words, does a pension fund have enough cash on hand to cover its retirement obligations? According to a new study by Florida State University, the answer for three local funds is: NO. Two of them are firefighter pension plans in Sarasota and Punta Gorda. The third is the North Port Police pension fund. All three are being given a “D” grade, lumping them in the bottom third of municipal pension plans statewide. The firefighters and police officers who administer those funds say they think they’ll be fine in the long run. For now, they say, it’s the market that’s caused the shortfalls. They’re not alone, either: The study says it found similar cash shortages for cities throughout Florida.
I’m Jack Cameron.