CITY COUNCIL AGENDA ITEM
Memo Date: October 8, 2024
Agenda Date: November 12, 2024
Prepared By: Tammy B. Gemmati, Administrative Services Director
Through: Stockton E. Whitten, City Manager
Requested Action:
title
Approval of Ordinance No. 16-2024/1st reading: related to Chapter 2, Administration, Article VII Police Officers’ Retirement Plan; Amending Section 2-196, Benefit Amounts and Eligibility; Amending Section 2-198, Disability; Amending Section 2-218, Deferred Retirement Option Plan; Providing for incorporation into the Code; Providing for severability of provisions; Repealing all ordinances and resolutions in conflict herewith and providing an effective date. End
body
BACKGROUND:
The City of Cocoa has an established Police Officers’ Retirement Plan in accordance with Chapter 185, Florida Statutes for the benefit of the City’s Police Officers.
At the May 2024 Pension Board Meeting, the board members discussed the possibilities of extending the Deferred Retirement Option Plan (DROP) period to a maximum of eight (8) years, versus the current maximum of five (5) years. Additionally, a minimum disability benefit was added in the event a member becomes disabled as a result of an active or mass shooter event. These changes were collectively bargained with the Central Florida Police Benevolent Association (CFPBA) with the latest Collective Bargaining Agreement. It was also recommended by Staff to modify the code language of the Cost of Living Adjustment (COLA) Increase section where the pension benefit could never be decreased in accordance with the COLA.
Staff consulted with Gabriel, Roeder, Smith & Company over these changes and it was advised there were minimal financial impacts on the plan. These proposed benefit changes have been done so under the guidance of the City’s pension attorney Glenn Thomas of Lewis, Longman, & Walker. This proposed ordinance was submitted to the board’s pension attorney Stu Kaufman of Office of Klausner, Kaufman, Jensen, and Levinson for review. After this review, Staff moved forward with the Ordinance.
The proposed ordinance includes the following amendments to the pension plan:
1. Section 2-196, Benefit Amounts and Eligibility
As of each October first, retirees and disabled members who have attained their sixty-fifth (65th) birthday, and beneficiaries receiving monthly benefits on behalf of deceased members who would have attained their sixty-fifth (65th) birthday, shall have their benefits adjusted for changes in the cost-of-living as measured by the consumer price index for the one-year period ended on the preceding June thirtieth. This section was amended where at no time the pension benefit can be reduced.
2. Amending Section 2-198, Disability
This section was modified to increase disability benefits in the rare event a member becomes disabled due to an active shooter or mass shooter event. This change would allow for a minimum sixty percent (60%) benefit in this situation.
3. Section 2-218, Deferred Retirement Option Plan
This section of the Code was modified to allow current or future DROP participants to be able to participate up to eight years, or 96 months.
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 is scheduled for the November 12, 2024 Council Meeting. It will also be advertised as a public hearing.
The pension plan’s actuary has provided an actuarial impact analysis statement showing there will be no impact to the plan. This statement will also be provided to the State of Florida Division of Retirement Services upon ordinance adoption.
City Staff recommends approval of Ordinance No. 16-2024, related to Amending Chapter 2, Administration, Article VII Police Officers’ Retirement Plan; Amending Section 2-196, Benefit Amounts and Eligibility; Amending Section 2-198, Disability; Amending Section 2-218, Deferred Retirement Option Plan.
STRATEGIC PLAN CONNECTION:
Organizational Effectiveness
BUDGETARY IMPACT:
No
The Plan’s actuary provided an Actuarial Impact Statement demonstrating there is no impact to the plan’s funding or contributions (attached to agenda).
PREVIOUS ACTION:
At a Regular City Council on January 10, 2023, Council approved Ordinance 16-2022, Amending Section 2-197, Pre-Retirement Death.
RECOMMENDED MOTION:
Recommendation
Approval of Ordinance No. 16-2024/1st reading: related to Amending Chapter 2, Administration, Article VII Police Officers’ Retirement Plan; Amending Section 2-196, Benefit Amounts and Eligibility; Amending Section 2-198, Disability; Amending Section 2-218, Deferred Retirement Option Plan; Providing for incorporation into the Code; Providing for severability of provisions; Repealing all ordinances and resolutions in conflict herewith and providing an effective date.