NCJ Number
47197
Journal
Police Magazine Volume: 1 Issue: 2 Dated: (MAY 1978) Pages: 4-16
Date Published
1978
Length
13 pages
Annotation
THE GENERAL CHARACTER AND PROBLEMS OF MUNICIPAL PENSIONS FOR FIRE AND POLICE PERSONNEL ARE DESCRIBED, AND THE SPECIFIC HISTORIES OF THE DISTRICT OF COLUMBIA AND OAKLAND, CALIF., SYSTEMS ARE PRESENTED.
Abstract
THE GENERAL PROBLEM OF MUNICIPAL FIRE AND POLICE PENSIONS IS SEEN TO BE TOO MANY PROMISED BENEFITS FOR THE FUNDING SYSTEMS DEVISED. SYSTEMS THAT HAVE FAILED OR ARE FAILING HAVE NOT PROVEN ACTUARIALLY SOUND ON A CONTINUING BASIS. BOTH THE WASHINGTON AND OAKLAND SYSTEMS SHOW THIS PATTERN. BROAD DISABILITY BENEFITS AND PROVISION FOR RETIREMENT AFTER 20 YEARS OF SERVICE ARE CITED AS THE MOST EXPENSIVE ASPECTS OF PENSION SYSTEMS. IN ORDER TO AVOID CRISIS SITUATIONS IN MUNICIPAL PENSION FUNDING, REGULAR ACTUARIAL EVALUATIONS BY 'OUTSIDE' PERSONNEL ARE URGED. DISCUSSIONS BY ACADEMICS, ACTUARIES, AND URBAN EXPERTS INDICATE A TREND TOWARD RESTRICTING BENEFITS UNDER THE PROVISION FOR RETIREMENT AFTER 20 YEARS SERVICE, IN LIGHT OF THE EARNING CAPABILITIES OF PERSONS RETIRING IN THEIR 40'S. ALSO, GREATER RESTRICTIONS ARE SUGGESTED FOR DISABILITY BENEFITS. STATE PENSION PLANS OFFER AN ALTERNATIVE TO MUNICIPAL PLANS, AND GUARANTEED SECOND CITY CAREERS AFTER RETIREMENT FROM POLICE OR FIRE SERVICE OFFER A POSSIBLE SOLUTION FOR REDUCING PENSION COSTS. POLICE AND FIRE DEPARTMENTS COULD ADOPT A MILITARY MODEL AND HIRE PERSONNEL FOR 3-T0-5-YEAR STINTS WITH RE-ENLISTMENT PRIVILEGES AS A WAY OF LIMITING FULL PENSION BENEFITS TO A SMALLER PERCENTAGE OF CAREER OFFICERS. WHILE THE REFORMS SUGGESTED ARE NOT UNDER SERIOUS CONSIDERATION IN ANY AMERICAN CITY, THE AUTHOR BELIEVES THE WAVE OF THE FUTURE IS LEGISLATIVE ACTION TO ENSURE THE SECURITY OF PUBLIC PENSION SYSTEMS. (RCB)