SECRETARY-TREASURER’S DESK | MIKE LOPEZ

Beyond the Pension: Building a Secure Financial Future as a Union Firefighter

When we talk about retirement in the fire service, we often focus on our pensions, and for good reason. Our pensions are one of the most stable and hard-fought benefits we have as members of CPF. They reflect decades of organizing, bargaining, and advocacy. But in today’s financial landscape, even the strongest pension may not cover everything we need for a long, healthy, and financially secure retirement.

That’s why financial planning beyond your pension isn’t just a luxury, it’s a necessity.

The cost of living in California is among the highest in the nation. Healthcare costs continue to rise and at times outpace inflation and the cost-of-living adjustments built into our pension systems. As your CPF Secretary-Treasurer, I want to ensure every member is set up not just to retire, but to thrive in retirement. That means planning for more than just monthly income, it means preparing for medical expenses, emergencies, and the flexibility to enjoy the life you’ve earned.

Established in 1999, the IAFF Medical Expense Reimbursement Plan (MERP) is one of the most valuable benefits available to CPF members. This program is a union-managed, firefighter-led program designed to provide a lifetime stream of tax-free reimbursements for qualified medical expenses in retirement. That includes health insurance premiums, Medicare costs, and out-of-pocket expenses that can quickly add up. CPF affiliates can fund their MERP in different ways, like regular employer contributions, tax-exempt transfers of accrued leave annually or at retirement, or even employee contributions, giving unions flexible options to address retiree healthcare costs. It’s a smart way to supplement your pension with a resource dedicated solely to healthcare, a cost that becomes more pressing as we age.

But MERP is only one part of a well-rounded financial strategy. Through CPF’s partnership with Firefighters First Credit Union, members can access personalized financial planning services, many at no cost. Whether you’re just starting your career or you’re a few years from retirement, their advisors can help you create a plan that includes savings, debt management, homeownership, and retirement accounts like Roth IRAs or 457(b)s, also known as a deferred compensation plan, allowing employees to defer income taxes on their retirement savings until they withdraw the funds. At CPF, we fight daily to protect your benefits, just as your Local does. As Spring winds down, we are looking forward to the annual Trustee audit. CPF partakes in an annual audit by our elected CPF Trustees to help protect the future of the organization and ensure compliance with the IRS standards and regulations. As a best practice, it is recommended that all CPF-affiliated Locals have annual audits done by independently elected trustees.

Here’s the bottom line: The earlier you start planning, the more options you’ll have. You don’t have to be a financial expert, you just need to take that first step. Talk to your local union leaders about MERP, schedule a financial planning session with Firefighters First Credit Union, build your emergency savings, and plan for your future.

You’ve sacrificed a lot to serve your community, and you deserve a retirement that reflects that sacrifice, not just in income, but in security, dignity, and peace of mind.