On February 22, 2018 the City entered into a labor agreement with the IAFF, Local 1158 which provided for some changes to the benefit structure as it relates to pension benefits. The agreement was formally ratified by Council on April 3, 2018. The purpose of the agenda item is to memorialize the changes in the form of an ordinance. The specific changes relate to the following benefit elements and are in general as noted below:
Salary: The total compensation for services rendered to the city as a firefighter reportable on the member's W-2 form including paramedic compensation and overtime, but excluding lump sum unused sick leave and lump sum unused vacation payments and plus all tax deferred, tax sheltered or tax exempt items of income derived from elective employee payroll deductions.
Member Contribution: The member contribution to the fund shall be in the amount of 6.5% of salary.
Normal Retirement Eligibility: The earlier of attainment of age fifty-two (52) and accrual of ten (10) years of credited service or the completion of twenty-three (23) years of credited service.
Normal Retirement Benefit: The monthly retirement benefit shall equal 3.25% of average final compensation for each year of credited service accrued after June 19, 2018. The monthly retirement benefit for any member shall not exceed seventy-five (75) percent of final average compensation; provided however that in any event the benefit will equal at least two and three-quarter (2.75) percent of average final compensation for each year of credited service averaged over the entire period of credited service of the member.
Early Retirement Eligibility: A member may retire upon the attainment of age fifty (50) and the completion of ten (10) years of credited service.
Early Retirement Benefit: Shall be calculated as for normal retirement but credited service and average final compensation shall be determined as of the early retirement date but actuarially reduced to take into account the member's younger age and the earlier commencement of retirement income benefits not to exceed three (3) percent for each year by which the member's age at retirement preceded the member's normal retirement age.
DROP Participation: In lieu of terminating employment as a firefighter, any member who is eligible for normal retirement under the system may elect to defer receipt of such service retirement pension and to participate in the DROP.
DROP Account: After the date of the adoption of the ordinance members shall have a one-time irrevocable option of being credited interest in the amount of one and a half (1.5) percent or the Pension Plans rate of return.
Chapter 175 Share Account: The total amount of accumulated excess premium tax monies shall be applied to reduce the city's contribution to the Firefighter Retirement System. Further, the total amount of future excess Chapter 175 premium tax monies shall be applied to reduce the city's annual required contribution to the retirement system. A share plan will also be created to implement the provisions of F.S. 175.351 (6) subject to the provisions as noted above.