Pensions rise, putting S. Florida cities in tough spot

The Miami Herald reports:

In Miami Beach, where the city is considering cutting the number of firefighters on duty each shift, a typical police officer can retire after 23 years with more than $72,000 in annual pension benefits.

In Hollywood, where residents could be facing higher ambulance fees and a four-day workweek for City Hall, retired firefighters just received $26,000 bonus checks thanks to a provision in their pension contracts.

City leaders throughout South Florida -- serving on the very bodies that made these payouts possible over the years -- are now taking aim at disparities like these as they grapple with big budget holes and pension payouts growing far faster than government bottom lines.

As budget season hits crunch time, the pension battle could emerge as a bruising fight pitting various city halls against retirees and politically powerful unions.

Political leaders say rough economic times require immediate action.

''By taking up more and more of the budget, you actually have less and less for the citizens,'' said Hollywood Commissioner Beam Furr, who has pushed for reform and become the target of union political attacks. ``We have to get a handle on that as quickly as possible because right now it's not sustainable.''

While pensions have disappeared from large sections of the private sector, government employees -- most notably firefighters and police officers -- have seen their retirement benefits balloon as city leaders agreed to approve plush pensions in exchange for short-term salary savings.

As a result, local government employees, police officers and firefighters in many South Florida cities can retire in their 50s on close to their full salaries.

Some retirees get supplemental checks as their pension funds rise. That's how retired Hollywood firefighters pocketed $26,000 checks this spring -- a pension provision fire union representatives say they are willing to reexamine this year.

County governments in Broward and Miami-Dade have largely been spared from skyrocketing pension costs through their participation in the state's larger, more stable retirement system. But for cities running their own pension funds, the costs have been enormous.