Police and fire pension reform plans are an initiative of the government. They come with a backdrop of declining city incomes and rapidly rising pension costs. It is necessary for fire fighting persons and police offers to a pension board that gives attention to the concerns of their pension schemes. There are two important aspects to consider when coming up and implementing pension reform plans for law enforcement officers and fire fighters. One is the sustainability of such a fund and two, the economic stability that enables a state, country or city to fund such a fund. The core aspect of a public fund is that it should not affect the current employed personnel but rather, should take effect on future employees.
The importance of this tenet is that introducing a new scheme to old employees may not sink well in their planning. It also touches of savings for future use and any disruptions of such savings are always taken with a bad taste in the mouth. Further, older employees tend to stay with policies and plans that have been tried and tested over a considerable length of time.
The Actual Reforms
Coming up with new pension plan policies have to be accompanied by tools that successfully incorporate the policies to the employees, making the reforms agreeable to all and sundry. Because some policies on police and fire pension reform plans touch on hard earned money for long standing employees, the implementing body or agency should be highly diligent in implementing the schemes.
Some changes to such pension reform schemes may include changes in the length of period that a police officer or a fire fighting offer has worked in respective departments. What would ideally change, usually increase, is the many years that they would have to work before they are entitled to their pension funds. Another reform generally expected in police and fire pension reform plans would be the amount of money put in the pension plan by the employee. Employees would be expected to put aside more money per agreed period as opposed to the original amount agreed initially. Another more sensitive aspect of police and fire pension reform plans is the establishment of payment of benefits. The changed policy may spell out different schedules of payment to the retired individual after they have served their years in the various departments.
A Good Pension Plan
A good and acceptable pension plan takes into account all factors that affect the employee in their line of duty including the length of service. Most plans make it mandatory for employees to have attained a certain number of years service to enjoy pension fund benefits. The reform plan should also take into account that the current employees are already contributing a fund towards their retirement security. The new plan should therefore maintain this amount and put a markup on the percentage being currently contribution, and which is comfortable for all employees.
Different states have different police and fire pension reform plans and the government is usually invited to intervene in proper and fair reforms that benefit both the states and the employees.