HomeMy WebLinkAboutCity of Tamarac Ordinance O-2016-0021
Temp. Ord. #2336
January 14, 2016
Page 1
CITY OF TAMARAC, FLORIDA
ORDINANCE NO. 0-2016-
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF TAMARAC,
FLORIDA; AMENDING CHAPTER 16, PENSIONS AND RETIREMENT, ARTICLE VI,
PENSION PLAN; AMENDING SECTION 16-493 OPTIONAL BENEFITS, PROVIDING
FOR MODIFICATION OF DROP ELIGIBILITY; AMENDING SECTION 16-515
RETIREMENT SUBSIDY, PROVIDING FOR MODIFICATION OF RETIREMENT
SUBSIDY; AMENDING SECTION 16-516 SUPPLEMENTAL PENSION BENEFIT,
PROVIDING FOR MODIFICATION OF SUPPLEMENTAL PENSION; PROVIDING FOR
A SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR
CODIFICATION AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Tamarac and the International Association of Fire Fighters ("IAFF") have
ratified a new collective bargaining agreement that includes certain changes to pension benefits as
provided for herein and attached hereto as Exhibit A; and
WHEREAS, the City of Tamarac and the IAFF have agreed to add eligibility for DROP at 18
years of service and age 55 with the same maximum DROP period; and
WHEREAS, the City of Tamarac and the IAFF have agreed to eliminate the retirement subsidy
for deferred vested plan participants; and
WHEREAS, the City of Tamarac and the IAFF have agreed to modify the supplemental pension
for all plan participants who retire to provide such benefit only if the participant has a balance of 200
hours or more of unpaid sick leave upon separation of service; and
WHEREAS, the trustees of the City of Tamarac Firefighters' Pension Trust Fund has reviewed
the proposed changes; and
CODING: Words in straskthPewgh type are deletions from existing law;
Words in underscored type are additions.
Temp. Ord. #2336
January 14, 2016
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WHEREAS, the City Commission has received, reviewed and considered an actuarial impact
statement describing the liabilities associated with the amendments provided for herein and attached
hereto as Exhibit B; and
WHEREAS, the City Commission of the City of Tamarac has deemed it to be in the best interest
of the citizens of the City of Tamarac to amend the plan to reflect these changes.
NOW THEREFORE, BE IT ORDAINED by the City Commission of the City of Tamarac, Florida:
Section 1: That the foregoing recitals are hereby ratified and confirmed as being true and
correct and are hereby made a specific part of this Ordinance upon adoption hereof.
Section 2: That Section 16-493 of Chapter 16, Article VI, Division 4, of the City of Tamarac
Code of Ordinances, be and is hereby amended as follows:
Sec. 16-493. Optional benefits.
(3) Deferred retirement option plan (DROP). A DROP, as defined in this plan, is
established and shall be administered by the board of trustees of the city firefighters'
pension plan. Participation shall be subject to the following terms and conditions:
a. Eligibility. An "eligible participant' of the city firefighters' pension plan, which
is defined as an individual currently on full-time work status, May elect to
participate in the DROP on the first day of the month coincident with or next
following the completion of twenty-five (25) years of credited service,
regardless of age, which date shall constitute the "initial date of eligibility."
Effective January J. 2016 the "initial date of eligibility" shall also include the
first day of the month coincident with or next following the completion of
eighteen (18) years of service and the attainment of age fifty-five (55),
provided that DROP participation shall never exceed five (5) years (Le. 60
months) and provided further that an eligible participant shall not participate
in DROP at any time after exceeding thirty (30) years of credited service.
Eligible participants entering after the completion of twenty-five (25) years of
credited service shall have DROP eligibility reduced by one (1) month for
each month in which participation is delayed up to the completion of a total of
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Words in underscored type are additions.
Temp. Ord. #2336
January 14, 2016
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thirty (30) years- of employment as a firefighter for the city, after which no
further DROP eligibility shall be available.
Section 3: That Section 16-515 of Chapter 16, Article Vl, Division 4, of the City of Tamarac
Code of Ordinances, be and is hereby amended as follows:
Sec.16-615. Retirement subsidy.
Each participant who was an active employee on or after March 1, 2001, shall
receive, upon retirement and receipt of monthly benefits from this pension plan
(separation of service), a monthly subsidy benefit of ten dollars ($10.00) for each
completed year of credited service, as adjusted herein, to be not less than fifty
dollars ($50.00) and not to exceed three hundred dollars ($300.00) per month.
Such subsidy benefit shall be adjusted annually, commencing March 1, 2002, by
a two and one-half (2'/2) percent increase. This retirement subsidy shall continue
until the participant attains Medicare eligibility, at which time the subsidy benefit
shall cease. Effective January 1 2016 all deferred vested Plan participants 0.e.
those participants who separated service elected to leave contributions in plan
and have deferred receipt of pension benefits until attainment of Early or Normal
_Retirement Age as defined herein) shall no longer be eligible for receipt of the
retirement subsidy.
Section 4: That Section 16-516 of Chapter 16, Article VI, Division 4, of the City of Tamarac
Code of Ordinances, be and is hereby amended as follows:
Sec. 16-516. Supplemental Pension Benefits.
Each eligible participant who was an active employee on or after March 1, 2007, shall be
entitled to a supplemental pension benefit that shall be considered an "extra benefit"
within the meaning of F.S. § 175.351(1)(b) and a supplemental benefit within the
meaning of F.S. § 112.65(1).
(1) Eligibility for the supplemental pension benefit shall require:
a. Termination of employment as a firefighter with the city;
b. Receipt of a normal, early or disability pension benefit from this plan;
c. Effective January 1 2016 an eligible participant must have a
balance of at least two hundred (200) or more hours of Aaccruedal
unpaid unused sick leave at the time of separation of service.
(2) Eligible firefighter participants shall; receive a supplemental pension benefit
that:
a. Shall be in the form of an increased benefit that:
1. For the maximum of two thousand four hundred ninety-six
(2,496) hours of accrued sick leave (for which no payment
has been received) is equivalent to three (3) percent of the
average monthly compensation that was used to calculate
the retiree's standard monthly benefit; and
CODING: Words in str�f} type are deletions from existing law;
Words in underscored type are additions.
Temp. Ord. #2336
January 14, 2016
Page 4
2. Is proportionally reduced for lesser amounts of accrued sick
leave.
b. Shall be adjusted in accordance with the optional form of benefit, if
any, elected at the time of retirement and shall be payable for the
remaining period that a pension benefit is payable under this plan.
c. Shall not be subject to cost of living adjustment provided in section
16-503(c) nor benefit limitations provided in section 16-506.
Section 5: It is the intention of the City Commission and it is hereby ordained that the
provisions of this Ordinance shall become and be made part of the Code of Ordinances of the City of
Tamarac, Florida, and that the Sections of this Ordinance may be renumbered or relettered, and the word
"Ordinance" may be changed to "Section", "Article" or such other word or phrase in order to accomplish
such intention.
Section 6: All Ordinances or parts of Ordinances in conflict herewith are hereby repealed to
the extent of such conflict.
Section 7: If any provision of this Ordinance or the application thereof to any person or
circumstances is held invalid, such invalidity shall not affect other provisions or applications of this
Ordinance that can be given affect without the invalid provision or application, and to this end the
provisions of this Ordinance are declared to be severable.
Section 8: This Ordinance shall become effective on adoption, satisfaction of each of the
following three requirements set forth below having been achieved prior to second reading:
(a) The City Commission received and has accepted a report establishing the actuarial
soundness of these amendments in a letter of opinion from the Plan Actuary; and
(b) The Ordinance and impact statement have been sent to the State of Florida Division of
Retirement; and
(c) The International Association of Firefighters has accepted the changes proposed in this
ordinance in writing.
CODING: Words in strusMthreugh type are deletions from existing law;
Words in underscored type are additions.
L
1
n
PASSED, FIRST READING this f day of
PASSED, SECOND READING this l -o day of
ATTEST:
i
PATRICIA TEUFEL, MC
CITY CLERK
I HEREBY CERTIFY that
I have approved this
ORDINANCE as to form
svSAM EL S. GOREN
CITY ATTORNEY
MAYOR
2016.
2016.
Temp. Ord. #2336
January 14, 2016
Page 5
RECORD OF COMMISSION VOTE: 1st Reading
MAYOR DRESSLER
DIST 1: COMM. BUSHNELL—�/
DIST 2: COMM. GOMEZ
DIST 3: VICE MAYOR GLASSER ti
DIST 4: COMM. PLACKO
RECORD OF COMMISSION VOTE: 2nd Reading
MAYOR DRESSLER
DIST 1: COMM. BUSHNELL
DIST 2: COMM. GOMEZ
DIST 3: VICE MAYOR GLASSER
DIST 4: COMM. PLACKO
CODING: Words in stfuskthreegh type are deletions from existing law;
Words in underscored type are additions.
G
Mr. John Gaul
�i;a` } Presldent
Local 3080
Tamarac, Florida
Dear John:
EXHIBIT A
T. Alp,
r
November 19, 2015 1
As a condition of the acceptance and ratification of the proposed collective bargaining
agreement, effective October 1, 2015, the City and the IAFF, Local 3080 agree to present and
recommend to the Firefighters' Pension Board and the City Commission, amendments to the
Pension Ordinance, which provides the following changes to the Firefighter's Pension Plan:
• Effective 1/1/2016 -Add eligibility for DROP at 18 years of service and age 55 with the
same maximum DROP period of 5 years; and
• Effective 1/1/2016 - Eliminate the Retirement Subsidy (Section 16.515) for deferred
vested plan participants; and
• Effective 1/1/2016 — Modify the Supplemental Pension (Section 16.516) for all plan
participants who retire (or enter DROP) to provide such benefit only if the participant has
a balance of 200 hours or more of unpaid sick leave upon separation of service.
The City and the IAFF, Local 3080 mutually consent and agree that the use of all insurance
premium tax revenues, whether base premium tax revenue or additional premium tax revenue,
received by the City will be used by the City to meet its annual actuarial required contributions to
the City of Tamarac's Firefighter's Pension Plan via separate Mutual Consent Agreement (see
attached.)
Sincerely,
Maria Swanson
Director of Human Resources
Cc: Michael C. Cernech, City Manager
Sam Goren, City Attorney
Mike Burton, Fire Chief
-= SOUTHERN
== ACTUARIAL
owl SERVICES
January 27. 2016
Trustees of the City of Tamarac Firefighters' Pension Fund
c/o Ms. Maria Swanson
Director of Human Resources
City of Tamarac
7525 N. W. 88h Avenue
Tamarac. FL 33321-2401
Re: City of Tamarac Firefighters' Pension Plan
Ladies and Gentlemen:
TO #2336 EXHIBIT B
POST O[fuBOX 8883y3
ATLAHTk G[ORCIA 30356- 03113
JULIPROK P0.39z.0980
IA(SIMILE n0,392.ZI93
In response to your request, I have reviewed Temporary Ordinance No. 2336. Effective
January 1. 2016. this ordinance makes the following changes to the plan:
(I) Participants are allowed to enter the Deferred Retirement option Plan {DROP) at age 55 if
they have earned at least 18 years qj'service:
(2) The retirement subsidy
y benefit ($10.00 per month for each year of service to a maximum of
$300.00 per month) was eliminated for deferred vested participants; and
(3) The supplemental pension is only available to those participants who have accumulated at
least 200 hours of unused sick leave upon separation from service.
Because we already assume that employees will retire at the earlier of age 55 or the attainment of
25 years of service and that future retirees will have accumulated 1.080 hours of unused sick
leave and because no deferred vested participants are eligible for the retirement subsidy benefit.
we have determined that the proposed ordinance will have no actuarial impact on the plan.
If you have any questions, please do not hesitate to call me.
Sincerely.
Charles 1'. Carr
Consulting Actuary
OUR Off K[ IS LOWED AT 5A JOP[NA BOULEVARD, HOSWON, UORGIA 305�8