CITY COUNCIL AGENDA ITEM
Memo Date: October 27, 2021
Agenda Date: November 9, 2021
Prepared By: Tammy B. Gemmati, Administrative Services Director
Through: Stockton Whitten, City Manager
Requested Action:
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Approval of Ordinance No. 12-2021/first reading: Amending Chapter 2, Administration, Article VIII, Firefighters’ Retirement Plan of the Code by amending: Section 2-271, Definitions, adding definition of death in the line of duty; Section 2-324, Disability, amending the benefit for a service incurred disability; Section 2-325, Preretirement Death, amending to create a new pre-retirement death benefit for members killed in the line-of-duty. End
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BACKGROUND:
The City of Cocoa has an established Firefighters’ Retirement Plan in accordance with Chapter 175, Florida Statutes for the benefit of the City’s Firefighters. Under this statute, the City is required to provide a minimum level of pension benefits, which includes a pension benefit for a service-connected disability. The City recently concluded collective bargaining with both the International Association of Firefighters Local 2416 for the rank and file members and Teamsters Fire District Chiefs which resulted in adding specific benefits for in the line-of-duty death benefits if the disability occurs as the result of an active shooter event or mass killing.
These proposed benefit changes have been done so under the guidance of the City’s pension attorney Glenn Thomas of Lewis, Longman, & Walker. According to information provided by legal counsel, there are not many pension plans that have specific benefits for situations defined in this ordinance. A draft ordinance was provided to the Pension Plan’s attorney Mark Floyd, Mierzwa & Floyd, P.A. and the Plan’s actuarial firm Foster and Foster. Additionally, edits were made to the disability section to reflect the current disability multiplier being used and to comply with Florida State Statute Section 112.1816 for firefighters who become disabled due to a cancer diagnosis or circumstances that arise out of the treatment of such cancer on or after July 1, 2019.
After the first reading the actuary will provide an impact statement to accompany the second reading. City Staff hired a third-party actuary firm to conduct an analysis of these changes and it was found to have a minimal budgetary impact.
The following amendments to the pension plan in the proposed ordinance include:
1. Section 2-271, Definitions
This section was amended to include a new definition of “death in the line of duty.” The definition complies with the requirements of Section 112.1816, for firefighters who die as the result of cancer or the treatment of cancer.
2. Section 2-324, Disability
(a) Service Incurred.
• Effective October 1, 2021, the disability benefit shall be an amount equal to the member's accrued retirement benefit accrued at three percent (3%) of average monthly earnings; provided such amount is not less than forty-two percent (42%) of the member's average monthly earnings at the time of disability.
• A separate disability benefit was added if the service incurred disability is the result of an active shooter situation or mass killing event. In these two situations, the minimum benefit would not be less than sixty percent (60%) of the member’s average monthly salary at the time of death versus the plan’s current minimum benefit of forty-two percent (42%). An active shooter situation is defined in the ordinance and with the FBI as an individual actively engaged in killing or attempting to kill people in a confined and populated area. Our ordinance references the federal code 28 U.S.C. s. 530C which has defined a mass killing event as three or more killings in a single incident.
(f) Cancer Presumption. The plan is amended to reference the Florida Statute 112.1816 where as a firefighter is eligible for certain benefits upon a cancer diagnosis on or after July 1, 2019. The City’s Plan is now being updated to reflect this change.
3. Section 2-325, Preretirement Death
(c) Death in line of duty. When evaluating the changes for the active shooter and mass casualty disability it was recommended by the City’s pension attorney to define in line of duty death benefits for members effective October 1, 2021. The proposed language in the City’s ordinance mirrors language in the Florida Retirement System (FRS), except for deaths as a result of an active shooter and mass casualty situation. Specifically, this new language covers different situations dependent on whether the member is married or unmarried at the time of event.
4. Incorporation into the Code. Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Cocoa.
5. Repeal of Prior Inconsistent Ordinances and Resolutions. All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed.
6. Severability. If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby.
7. Effective Date. The Ordinance shall be effective immediately upon adoption by the City Council after the second reading, which will be scheduled at the December 14, 2021 Council Meeting. The actuary will be preparing an impact statement which will be provided with the final reading.
City Administration recommends approval of Ordinance No. 12-2021/first reading, related to changes in the Firefighters’ Retirement Plan: Section 2-271, Definitions, adding definition of death in the line of duty; Section 2-324, Disability, amending the benefit for a service incurred disability; Section 2-325, Preretirement Death, amending to create a new pre-retirement death benefit for members killed in the line-of-duty.
STRATEGIC PLAN CONNECTION:
N/A
BUDGETARY IMPACT:
Budgeted: Yes
An actuarial analysis was conducted by an outside actuary on this benefit change and it was determined the budgetary impact is minimal. The Pension Plan’s actuary will be preparing an impact statement which will be provided with the final reading.
PREVIOUS ACTION:
At a regular City Council Meeting on July 10, 2019, City Council approved Ordinance No. 9-2019: Amending Chapter 2, Administration, Article VIII, Firefighters’ Retirement Plan of the Code by amending: Section 2-281, Board Designated as Administrator, Composition, extending the terms of office for the Board of Trustees from two to four years; Section 2-308, Investment Powers of the Board, modifying the investment policy to allow the board to invest up to twenty-five percent of plan assets in foreign securities.
RECOMMENDED MOTION:
Recommendation
Approval of Ordinance No. 12-2021/first reading: Amending Chapter 2, Administration, Article VIII, Firefighters’ Retirement Plan of the Code by amending: Section 2-271, Definitions, adding definition of death in the line of duty; Section 2-324, Disability, amending the benefit for a service incurred disability; Section 2-325, Preretirement Death, amending to create a new pre-retirement death benefit for members killed in the line-of-duty