Pension Shortfalls Felt By Police Departments As Hiring, Retainment Becomes More Difficult for Cities

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Pension obligations have strained police departments across the county as they weigh ways to cut costs without hurting the quality of their force.

But sound solutions are hard to come by as benefit cuts make it harder to recruit and retain good officers.

By the same token, mounting pension obligations make it more unlikely cities will spend money on hiring new officers even as department numbers dwindle.

From Bloomberg:

The shortfalls in the 25 largest state and local-government pensions have tripled over the past decade to more than $2 trillion, according to Moody’s Investors Service. Those gaps, which persist even as the stock market reaches record highs, have mayors scrapping plans to increase patrols and reopen precincts as they spend more on retirement instead.

In cities that cut benefits, officers have quit or retired, underscoring the challenge of balancing the promises of the past with the duties of the present.

“The difficulty you run into when you have minimal staffing is there’s less proactive time that an officer can spend on community-oriented policing,” said Brian Marvel, president of the police union in San Diego, where the number of officers has dropped by 200 since 2009. “There are officers out there doing great work every day. They’re just not doing as much of it.”

[…]

The diminished force in San Diego, which has declined to 1,850 sworn officers from 2,050 five years ago, mirrors a national trend: There were about 390,000 police officers nationwide in 2013, down 14 percent from four years earlier, according to the Federal Bureau of Investigation’s most recent figures.

Rebuilding police ranks is crucial to preventing their standing in communities from slipping even more, said George Kelling, a senior fellow at the Manhattan Institute for Policy Research, a New York nonprofit that studies techniques for making police more effective at reducing crime.

“Community policing is very labor intensive, and if you want to get out into the community, you have to have the resources,” said Kelling, who helped develop law-enforcement tactics adopted in New York. “Most cities ought to be viewing policing as an investment rather than a cost.”

San Diego’s police force isn’t only declining in terms of officers employed; the force has become less experienced, as the average officer only has 6 years of police experience, according to Bloomberg.

 

Photo by  www.GlynLowe.com via Flickr CC License

Scranton Considering Court Action to Halt Pension Raises for Retirees

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Scranton’s pension systems could run out of money in less than 5 years. That looming insolvency is forcing the city to consider halting pension raises coming this year for retired police officers and firefighters.

From the Times-Tribune:

Arguing that the pension funds are not financially sound, Scranton continues to evaluate legal options to halt raises that are due retired police officers and firefighters, including possibly seeking an injunction, city solicitor Jason Shrive said Wednesday.

Mr. Shrive said no court action has been taken yet, but it remains a possibility if the fire and police pension boards go through with a plan to pay retirees half of the 1.75 percent salary increase that active police officers and firefighters will receive in January.

[…]

The raises go into effect today, but there is still time to challenge the payments because checks to retirees, who are paid semimonthly, won’t be issued until Jan. 15 and Jan. 28.

Mr. Shrive wrote to the police and fire pension boards in November, advising them that the city maintains that no raises can be paid to retirees based on a section of the city code that says increases in pensions “shall not be granted” unless the pension funds are actuarially sound. Mr. Shrive cited a report prepared in October by the plans’ actuary, who determined both plans are unsound.

[…]

“The city is still hopeful the various pension boards and the pension plan administrator will think better of the decision to pay the increases, in light of the plans’ funding,” he said. “If the boards and investment administrator still intend to make the increases … our legal options could be to seek injunctive relief against the issuance of those raises.”

Scranton’s police and fire pension funds have a combined deficit of $141 million.