If the sales tax extension does not pass in the August primary, the new director of the City of Jacksonville's Police and Fire Pension Fund said there is not a ‘Plan B’ to pay down the $1.6 billion pension debt.
Tim Johnson said this pension vote is a big one, for the city, voters and especially firefighters and police officers and despite the controversy surrounding the pension fund, it’s important for everyone to vote either way.
“The Jacksonville situation has gotten national coverage,” said Johnson.
It’s all about the firefighter and police officers' pension plan.
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“Right now, the plan is about 46 percent funded,” said Johnson.
But Johnson said that’s not enough.
“Right now, there’s a liability of $3 billion. That’s how much money the plan would have to pay today if it had to pay every member. The plan has assets of $1.6 billion. The challenge is how do you come up with that other $1.4 billion,” said Johnson.
That’s where the pension vote comes in. In just two weeks, voters will head to the polls, to vote either yes or no for the sales tax to fund city pensions.
“The vote involves creating the funding necessary, and dedicated funding to pay for those benefits. It’ll expire in 14 years and then a half a cent of that current sales tax would then be dedicated to paying down that pension liability,” said Johnson.
Action News Jax: "What if it doesn’t pass, what would happen?"
Johnson: "That’s the bigger question, and that’s the unknown and unchartered water."
Johnson said if this plan doesn’t pass, the taxpayers and the city will have to come up with an alternative and right now, there isn’t one.
Cox Media Group
