HomeMy WebLinkAboutR-2006-019 FRS Participation for General Employees RESOLUTION NO. 2006-019
A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA,
AUTHORIZING AND DIRECTING THE CITY MANAGER TO TAKE STEPS
NECESSARY TO (1) PROVIDE FOR PARTICIPATION BY NEW GENERAL
EMPLOYEES IN THE FLORIDA RETIREMENT SYSTEM; (2) PREPARE AN
ORDINANCE AMENDMENT TO CHANGE THE VESTING PERIOD OF THE
CITY OF DANIA BEACH RETIREMENT PLAN FOR EXISTING GENERAL
EMPLOYEES; AND (3) PREPARE CERTAIN CHANGES TO THE CITY'S
SECTION 457 PLAN; PROVIDING FOR CONFLICTS; FURTHER,
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, bargaining between the City of Dania Beach and the Dania Beach
Employees Association, AFSCME Local 3535 AFL-CIO, has resulted in the following
agreement:
(1) That the City shall make provision for general employees presently
required to participate in the City of Dania Beach General Employees' Retirement System to
instead elect, if they choose to do so, to participate in the Florida Retirement System and to
require all newly hired, eligible general employees to participate in the Florida Retirement
System;
(2) That the City shall amend the City of Dania Beach General Employees'
Retirement System to provide for a vesting period of six years rather than eight years for those
employees who elect to remain in the City of Dania Beach Retirement System rather than
participate in the Florida Retirement System;
(3) That only those employees who are required to participate in the Florida
Retirement System shall also be required to participate in the City's Section 457 plan and shall
also be required to contribute 1.8 percent of their salaries to the Section 457 plan, which
contribution shall be matched by the City;
(4) That the provision described in subparagraph (3) of this paragraph shall
not apply to those employees who participate in the Section 457 plan but who do not participate
in the Florida Retirement System; and
WHEREAS, the Dania Beach Employees Association, AFSCME Local 3535 AFL-CIO
has ratified the terms of the foregoing agreement; and
WHEREAS, the members of the City of Dania Beach Bargaining Unit have voted by
overwhelming majority to approve the described changes to the Plan; and
WHEREAS,the City of Dania Beach is desirous of putting this agreement into effect;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. The agreement as set forth above is ratified.
Section 2. The City Manager is authorized and directed to take all necessary steps to
• effectuate the agreement, including the negotiation and, upon approval by the City Commission,
the execution of an agreement with the Florida Retirement System.
Section 3. That all resolutions or parts of resolutions in conflict with this Resolution
are repealed to the extent of such conflict.
Section 4. That this Resolution shall be in force and take effect immediately upon its
passage and adoption.
PASSED AND ADOPTED on January 24, 2006.
ANNE CASTRO
MAYOR-COMMISSIONER
2 RESOLUTION #2006-019
ATTEST: ROLL CALL:
COMMISSIONER ANTON - YES
Adid)1 COMMISSIONER BERTINO - YES
LOUISE STILSON COMMISSIONER MCELYEA - YES
CITY CLERK VICE-MAYOR FLURY - YES
MAYOR CASTRO - YES
APPROVED AS TO FO CORRECTNESS
BY: 1)� I, )�
THOM S J. A BR'W �
CITY ATTORNEY
•
3 RESOLUTION#2006-019
77
• CITY OF DANIA BEACH
DEPARTMENT OF HUMAN RESOURCES AND RISK
MANAGEMENT
TO: Mayor Castro
Vice Mayor Flury
Commissioner Anton
Commissioner Bertino
Commissioner McElyea
Cc: City Manager Ivan Pato
Finance Director Patricia Varney
AFSCME Local 3535 President, William Dubisky
FROM: Mary McDonald, Director Human Resources
DATE: January 18, 2006
SUBJECT: Resolution: Accepting Negotiated Terms for Pension Revision
•
The attached resolution addresses the tentative pension revision agreement reached
between the City of Dania Beach and AFSCME Local 3535-AFL-CIO. Upon your
adoption, the City will begin taking steps to implement the Florida State Retirement
System for new hires.
The significant components of this action are:
1) The Florida Retirement System ("FRS") will be adopted for all new hires, resulting
in immediate cost savings to the City through the elimination of the 16.08%
employer pick-up of employee's pension contributions required under the existing
pension plan. Future savings will include the additional employer's contribution
that the actuary calculates annually, which in FY 2006 is 15.33% of payroll.
2) Under FRS, the City's (employer) contribution is currently 7.83%; currently no
employee contribution is required. New hires will be required to contribute 1.8%
to a 457 plan, with a matching contribution of 1.8% made by the City. There is no
vesting for the 1.8% City match
3) All employees will have the option to "opt out" of the current pension plan and
join FRS. Employees opting out of the City's pension plan will not be eligible for
the 1.8% match to a 457 plan. Employees (vested or not vested in the current
City's plan) must relinquish their accrued benefits to the City's pension plan
• before they can purchase past service utilizing their own contributions.
4) State statute considers DROP employees as no longer actively contributing to a
• pension program. "DROP" employees must join FRS. The City (employer) will be
required to make the employer contribution (Currently 7.83%).
5) The eight year vesting period defined under the Dania Beach Retirement System
will be reduced to six years.
6) According to FRS Rule 60S-1.004, all part-time regular positions must participate
in the FRS system.
7) Once the City joins the FRS, under the current Florida Statute, the City cannot opt
out of the FRS unless there is a change in the legislature.
Upon your approval of this agreement, the City will take steps to initiate the FRS
program, with an anticipated March 1, 2006 implementation.
Additional issues will need to be resolved prior to implementation. These issues include:
1) Define positions to be classified as "Senior Management". City Manager position
is automatically classified under this category by FRS. Current employer
contribution rate is 10.45%. Any positions defined under this category can opt out
of FRS.
2) Elected Officials (should they be members of General Employee plan or members
,of the Elected Official Plan under the FRS system?). If under the Elected Official
plan, future elected officials can opt out of FRS. The City has to submit the
• City's Charter to FRS to ensure no conflict exists to enter in this plan. The
current contribution rate is 15.23%.
3) Revisions to current City pension ordinances.
•