As I am sure you will recall on May 5, 2017 the City entered into an agreement with the West Central Florida Police Benevolent Association which provided for a new benefit structure relating to pension benefits.  The agreement was formally ratified by Council on June 20, 2017.  The purpose of this agenda item is to memorialize those changes in the form of an ordinance.  The specific changes are as noted below:

• Member Contributions: 6.5% of salary, reduced to equal the city contribution in any year that the city required contribution is less than 6.5% of covered payroll.

• Average Final Compensation:  One-twelfth of the total cash remuneration paid during the highest three (3) of the last five (5) years of service immediately preceding retirement, termination or death.  Salary excludes overtime payments in excess of 300 hours and accrued unused sick or annual leave.

• Normal Retirement Eligibility:  The earlier of attainment of age fifty-two (52) (age fifty (50) if ten (10) or more years of credited service on the effective date of the adoption of the ordinance) and the completion of ten (10) years of credited service, or the completion of twenty-three (23) years of credited service.

• Normal Retirement Benefits: 3.25% (future accruals) of average final compensation times years of credited service with a maximum benefit of 75% of average final compensation and a minimum benefit of 2% of average final compensation times years of credited service payable for ten (10) years certain and life thereafter.

• Early Retirement Eligibility:  Attainment of age fifty (50) and completion of ten (10) years of credited service.

• Early Retirement Benefits:  Calculated as for normal retirement based upon average final compensation and credited service as of early retirement date actuarially reduced for early commencement which is not to exceed 3% for each year by that the member's age at retirement proceeds the member's normal retirement age.

• Disability Benefits:  The minimum disability benefits are based upon the 3.25% accrual rate (future accruals).

• DROP Account: Member's accounts in the program shall be credited with interest based upon the actual return of the fund but not less than 0% or a fixed return of 1.5% compounded monthly as elected by the member.

• Chapter 185 Share Account: The total amount of future excess Chapter 185 premium tax monies shall be applied to reduce the City's annual required contribution to the Police Retirement system.