Furloughs End When Police, Fire Agree To Defined Contribution Pension Plans

TITUSVILLE, FL &#8211 Titusville residents don’t have to worry about their police or firefighters being out on unpaid furloughs anymore.

Just weeks after a deal was closed with firefighters, the city ratified a contract with the police union.

“We just had to reduce the costs,” said Titusville Mayor Jim Tulley.

Tulley said the deal changes the pension plans for its public safety employees.

The city eliminated some things that allowed employees to enhance their pensions. The new agreement also created a hybrid pension plan.

“If they put up 3 percent of their salary in a defined contribution plane, the city will match it dollar for dollar,” said Tulley.

Even with the match, the city estimates its new fire and police contracts will save more than $900,000 per year.

Three years ago, pension costs for Titusville were less than $1 million per year. By 2012, the cost rose to more than $3 million per year.

The city said it hopes to further reduce its pension costs in its final negotiation, with the general employee union.

“The furloughs will continue for the general employees until such time we reach a contract,” said Tulley.

That means while police and firefighters are back on the clock full-time, City Hall will still close twice a month for furloughs.

The city said it’s optimistic an agreement with the general employees union will be reached soon.

From WFTV.com

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