Readers of local newspapers around the country have become accustomed in the last several years to newspaper investigations that expose pension nightmares for taxpayers. The Miami-Herald has added to the literature with a detailed investigation of abusive pension practices in South Florida that are draining funds.
Some of the Miami Herald's findings:
- In Miami Beach, of the 38 police and firefighters who began receiving a pension in fiscal year 2009, 26 did so in their 40s with an average retirement benefit of $104,000 -- and a promised annual increase of 2.5 percent.
- In Coral Gables, pension formulas that factor in hundreds of hours of overtime in addition to base pay and bonuses are allowing many to retire with pensions significantly larger than their base salary. Examples: Fire Lt. Jeffrey Fabyan, 48, whose $106,000 pension dwarfs his $81,000 base salary; fire Lt. Donald Griffiths, 50, whose base pay is $81,720 but whose pension is $108,606; and police Sgt. John McRae, 49, whose salary is $79,414 but who will collect a $99,297 pension.
- Of the 154 Miami police and firefighters who "retired" (actually entered the DROP) on Sept. 26, 2010, 55 have annual pensions in excess of $100,000, 10 of them greater than $150,000. The latter group includes Chief Fire Officer Ronald Khawly, who transitioned into retirement at 52 with a pension of $181,856; Assistant Fire Chief Veldora Arthur (44, with a pension of $166,687) and Chief Fire Officer Joe Burns (54, with a pension of $165,910).
- •In Hollywood, firefighters who left the city's employ since 2008 after eight years in the DROP program have walked away with savings accounts of $500,000 or more, some as high as $1 million.
• In 2001, Miami's annual contribution to its pension program -- the part not covered by employee contributions -- was $14 million. By 2010, it was $79.1 million.
• A decade ago, the taxpayer pension contribution was $3.5 million in Miami Beach. Last year: $49 million.
• Fort Lauderdale's pension contributions have jumped from $10.6 million a decade ago to $52.2 million today.
• Hollywood's taxpayer contribution rose from $8.5 million in 2001 to $36.6 million last year.
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