Opinion: Restoring defined benefit pensions is crucial for Jacksonville public safety

I commend Mayor Donna Deegan and the Jacksonville City Council for reinstating defined benefit pensions for our public safety officers through the Florida Retirement System. Our leaders reversed a tragic misstep made by the previous mayoral administration and council that failed to fully evaluate the importance of our pension structure.

A decade ago, Jacksonville was grappling with the consequences of unfunded pension liabilities for public employees. Instead of addressing these issues responsibly, we relied instead on hopes of forever positive stock market trends. When the market suffered, the debt reached a breaking point and suddenly we heard claims that defined benefit pensions were unsustainable.

Rather than thoughtfully devising a plan to responsibly manage our commitments, city leaders adopted an ill-conceived approach that only deferred the problem and increased costs in the long run.

Police officers and firefighters provide essential services that are physically demanding, stressful and carry immense responsibility. Defined benefit pension plans are designed to compensate public servants — not just during their career but throughout retirement — in exchange for their dedication and the trust we place in them.

It's not unlike paying a contractor a portion of compensation after the work is complete, ensuring that the job is done well and in accordance with expectations. A defined benefit pension promotes retention, accountability and performance, all of which are critical for public safety.

In 2017, the city eliminated defined benefit pensions in favor of a 401(k)-style plan , satisfying employees by raising public safety salaries by 25% and contributing another 25% of salaries to new employee investment plans. It cost more per employee than the pension task force plan and deferred payment on the pension debt for decades, relying on a future sales tax to cover the gap.

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As a result, we saw an exodus of highly trained public safety officers, lured away by other departments that offered defined benefit pensions. The “golden handcuffs” that once incentivized long-term service disappeared and our community’s safety has been compromised as a result.

Although the decision to join the Florida Retirement System is not without cost, it is a necessary correction. It may not fully replicate the retention benefits of the original pension structure, but it is far superior to the short-sighted reforms of 2017. This costly mistake serves as a reminder that we must avoid such gimmicky financial schemes in the future.

Kudos to our city leaders for taking a bold step toward correcting past mistakes and ensuring that Jacksonville’s public safety officers are supported in a way that promotes long-term retention and high performance. Our community’s safety depends on it.

Tad Delegal, attorney, Jacksonville

This guest column is the opinion of the author and does not necessarily represent the views of the Times-Union. We welcome a diversity of opinions .

This article originally appeared on Florida Times-Union: Opinion: Restoring defined benefit pensions is crucial for Jacksonville public safety