PANAMA CITY— Bay County’s state lawmakers were unequivocal Thursday — an embattled hospital-employee pension fund will be put into an irrevocable trust if that’s what the County Commission wants.
State Rep. Jimmy Patronis, R-Panama City, presented the measure — called a local bill — to the county’s three-member local delegation at its annual meeting at the Bay County Government Center. The delegation, which includes state Senate President Don Gaetz, R-Niceville, and state Rep. Marti Coley, R-Marianna, passed the measure unanimously.
Patronis will file it with the Florida Legislature. If passed, it would create an irrevocable trust for the pension. The pension belongs to current and former Bay Medical Center Sacred Heart Health System employees. It is closed to new members.
“I think that the legislation that is being proposed is just a precautionary measure, and it may not even be necessary that we pursue it, but the County Commission needed to react while this meeting was taking place,” Patronis said.
Patronis downplayed how contentious the issue has been between the County Commission and the Bay Health Foundation, which oversees the pension. Both he and Gaetz couched the discussion as if the bill may be unnecessary, provided the two boards can reach an agreement on the pension.
The pension had a $15.4 million unfunded liability in its last actuarial report and the County Commission worries that under the worst case scenario it — and thus the taxpayers — will be left holding the bag.
Gaetz pointed out that Patronis could pull the bill back, even after it passes the House, if an agreement is worked out. Otherwise it will proceed.
“If Rep. Patronis sends the bill over to the Senate, I guarantee you the Senate will pass Rep. Patronis’ bill,” Gaetz said.
The County Commission and the foundation have disagreed over how well protected the pension is. The foundation’s lawyer has said the pension is already in an irrevocable trust and believes the legislation is unnecessary.
Patronis, meanwhile, said the bill doesn’t mean the County Commission distrusts the foundation and the pension’s solvency has never even been debated.
The County Commission, however, became more stressed about the pension after receiving a state attorney general opinion that said it would be on the hook for the liabilities if the pension ran out of money. That prompted the legislative action.
Additionally, for about a year the County Commission has fought the foundation to put a commissioner on the board, but the foundation has refused.
Still Patronis said the County Commission has a “fine working relationship” with the foundation. The comment came shortly after the delegation approved another local bill that would allow the County Commission to remove its only foundation appointee with or without cause.
In total, the delegation unanimously approved four local bills Thursday. The other two would set up entertainment districts in downtown Panama City, where alcoholic drinks could be carried out of bars and into the street during a special event, and would alter how Panama City members would be selected for the Bay County Tourist Development Council.