THE SAME CONTRACT: SAME OLD, SAME OLD:
TWO YEARS AND NO CHANGE
FROM THE SHADOW ARCHIVES: July 23, 2007
CITY OF NEW SMYRNA BEACH FIREFIGHTER BENEFITS
Health/Dental Insurance
City pays 100% for employee and 0% for dependent coverage.
Health
Employee has choice of Florida Health Care (HMO) or Aetna (QPOS).
Dental
Pacific Mutual – 2 cleanings and 1 x-ray/year.
80% Preventative – 50% Major.
Life Insurance
City pays 1 x your annual salary (max. $100,000).
Supplemental Life Insurance per State of Florida. (In line of duty only).
Short Term Disability
If employee is injured off the job, employee has 2 week waiting period and then is paid for up to 13 weeks of disability. Maternity leave is treated as any other illness, but is generally paid for 4 weeks after the 2 week waiting period unless the doctor states otherwise. (2/3 City, 1/3 Employee PL time).
Retirement
Defined Benefit Plan through The City of New Smyrna Beach Fire Pension Board. Normal retirement is age 55 and completion of 10 years of service or 25 years service at any age. Earn 3% credit per service year. Employee pays 1% of salary. Employee contributions are considered qualified (tax exempt).
Personal Leave
Employee will accrue 202 hours of personal leave in the first year up to 5 years. Accruals will increase with years of service. Employee can use one week of personal leave after 6 months.
Longevity
Employee will receive 24 hours of pay after 5 years of service. Longevity will increase as years of service increase.
Holidays
11 paid holidays (1 includes employees Birthday)
The retirement age is age 55 and 10 years of service, or 25 years and any age. This means that any firefighter hired at age 18 and can choose to retire at age 43 with a 75% pension.
The increase pay to Cindy Richenberg of $7,200 per year as the public relation officer adds significantly to her five year average since this is in her high five year average and her current 23 years of service provides a huge pension benefit. In 2006, she replaced 2001, which was a $36,000 year salary with a $91,000 year. One adds all five years and divides by five. Shucking a bad year for the world's greatest year is pretty good. This means that she increased her annuity by about $7,000 ($55,000 increase in high five divided by 5 = $11,000 increase). At the end of 2007 she will also get rid of a $46,000 for another $91,000 year and add almost another $50,000 to her high five and another $6,000 a year for the rest of her life. From an actuarial point of view, that extra 1% on how this is calculated is $25,000 a year times 35 or 40 years. $900,000 and $1,000,000 than if figured at the 2%. So far, that little extra duty for Cindy Richenberg has cost you about $2500 in an extra annuity payment for the rest of her life.
Another hooker in the equation for the above contract is that the fire fighters only contribute 1% to their pension fund. If they contributed 8% as do police officers, the amount of their contribution would offset some of these pension costs.
Just to keep everything in perspective, a week or two ago a United Airlines stewardess was highlighted in a feature article as saying she would be required to work after qualifying a pension in her sixties, because the pension would not be enough to support her. Really that’s too bad. She should have been a new Smyrna beach firefighter!