Old and new IAFF pension limits compared

December 6, 2014

To compare the old pension limit with the new limit agreed upon in Lansing's new contract with the IAFF, signed April 29, 2014, I selected pension information for several firefighters who retired in 2010 and 2011, before the Michigan legislature passed a law prohibiting public agencies from releasing details of public employee pensions. As you can see, the new limit - 110% of salary - comes out to be substantially higher than the old limit, 80% of final average compensation (FAC). Actually, the new limit is 110% of "base wage," whatever that is. I'm assuming it is annual salary, which is tricky to calculate for firefighters in the fire suppression division. Normally, I would calculate it by multiplying hourly wage times 40 (hours per week) times 52 (weeks in a year), but for retirees from the fire suppression division, I calculate it as hourly rate times 2799.94 (53.845 hours a week - see Work Week for Fire Suppression Division.

Although the new limit seems to be higher, I can't see that it will make a difference, since pensions are, in effect, 80% of FAC - the old limit. For firefighters hired before April 29, 2014, the pension is calculated as FAC times 25 years times 3.2% (.032). .032 times 25 equals .8 (80%). So the old 80% of FAC pension limit was a joke: no limit at all.

I have fairly complete lists of retirements from both of the City's retirement systems going back to 2010:

Police and Fire Retirement System

Employees Retirement System (ERS)

 

Name	Fire Sup Division?	Retirement Date	Age	Total Service	Purchased Service	Salary	FAC	Actual Pension	Old Limit: 80% of FAC	New Limit: 110% of Salary
Ness, David T.	Y	5/7/2010	47 y ? m	25 y 8 m		$78,958	$88,649	$70,919	$70,919.20	$86,853.80
Burnett, Todd E.	Y	6/14/2010	47 y 0 m	25 y 0 m	2 m	$68,095	$77,266	$61,813	$61,812.80	$74,904.50
Fulger Jr., Charles J.		6/14/2010	58 y ? m	25 y 0 m	11 m	$71,718	$81,574	$65,259	$65,259.20	$78,889.80
Ford, David R.	Y	6/21/2010	46 y ? m	25 y 10 m		$78,958	$87,945	$70,356	$70,356.00	$86,853.80
Walsdorf, Joseph R.	Y	6/21/2010	49 y ? m	25 y 0 m	2 y 7 m	$68,095	$79,183	$63,346	$63,346.40	$74,904.50
Huff Jr., Orval D.	Y	6/23/2010	53 y ? m	25 y 0 m	2 m	$68,095	$80,968	$64,774	$64,774.40	$74,904.50
Smith, Paul M.	Y	6/23/2010	45 y ? m	25 y 0 m	2 m	$78,958	$86,355	$69,084	$69,084.00	$86,853.80
Haueter, Peter L.	Y	6/26/2010	48 y 7 m	25 y 0 m	2 m	$78,958	$89,187	$71,350	$71,349.60	$86,853.80
Perrone, Daniel A.	Y	6/30/2010	45 y ? m	25 y 0 m	12 m	$60,955	$69,382	$55,505	$55,505.60	$67,050.50
Doerr, David B.		6/15/2011	50 y ? m	25 y 0 m		$68,120	$77,264	$61,812	$61,811.20	$74,932.00
Kirchen, Thomas J.	Y	6/15/2011	55 y ? m	25 y 0 m		$60,955	$71,103	$56,883	$56,882.40	$67,050.50
Squire, James E.	Y	6/15/2011	53 y ? m	25 y 0 m		$68,095	$75,302	$60,242	$60,241.60	$74,904.50
Holden, Walter M.	Y	6/16/2011	51 y ? m	25 y 0 m		$68,095	$77,860	$62,288	$62,288.00	$74,904.50
Tolbert, Jerome C.		6/18/2011	59 y ? m	25 y 0 m	11 m	$71,718	$80,574	$64,459	$64,459.20	$78,889.80
Pulver, Lynn A.	Y	6/19/2011	49 y ? m	25 y 0 m		$68,095	$80,767	$64,613	$64,613.60	$74,904.50
Christainsen, William	Y	6/24/2011	55 y ? m	25 y 8 m		$78,958	$91,328	$73,062	$73,062.40	$86,853.80
Peacock, Matthew A.	Y	6/30/2011	46 y ? m	25 y 0 m		$78,958	$90,657	$72,526	$72,525.60	$86,853.80
Wojtysiak, Mark	Y	6/30/2011	47 y ? m	25 y 0 m		$78,958	$91,586	$73,269	$73,268.80	$86,853.80
Miller, Dennis L.	Y	7/1/2011	53 y ? m	25 y 0 m		$68,095	$87,860	$70,288	$70,288.00	$74,904.50
Sabon, Philip D.		7/1/2011	49 y ? m	25 y 0 m	2 m	$78,478	$95,398	$76,318	$76,318.40	$86,325.80