CITY COUNCIL AGENDA ITEM
Memo Date: November 13, 2024
Agenda Date: December 10, 2024
Prepared By: Tammy B. Gemmati, Administrative Services Director
Through: Stockton Whitten, City Manager
Requested Action:
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Approval of Ordinance No. 17-2024/Final Reading: Amending Chapter 2, Administration, Article VIII, Firefighters’ Retirement Plan of the Code by amending: Section 2-326, Cost of Living Increase; Section 2-331, Deferred Retirement Option Plan; Providing for Codification; Providing for Severability of Provisions; Repealing all Ordinances in Conflict Herewith and Providing an Effective Date. 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.
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 extending the Deferred Retirement Option Plan (DROP) term from five years to eight years. 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 no financial impact 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. 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 and there were no additional changes. The Plan’s actuary also provided a no impact letter, due to these changes not having a plan impact.
The following amendments to the pension plan in the proposed ordinance include:
1. Section 2-326, Cost of Living Increase
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. Section 2-331, 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.
3. 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.
4. Repeal of Prior Inconsistent Ordinances and Resolutions. All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed.
5. 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.
6. Effective Date. The Ordinance shall be effective immediately upon adoption by the City Council after this final reading.
There have been no changes since the first reading. A copy of the public notice has been attached to this agenda item.
City Administration recommends final approval of Ordinance No. 17-2024, related to changes in the Firefighters’ Retirement Plan: Section 2-326, Cost of Living Increase; Section 2-331, Deferred Retirement Option Plan; Providing for Codification; Providing for Severability of Provisions; Repealing all Ordinances in Conflict Herewith and Providing an Effective Date.
STRATEGIC PLAN CONNECTION:
Operational Effectiveness
BUDGETARY IMPACT:
Budgeted: N/A
The Pension Plan’s Actuary provided a No Impact Letter.
PREVIOUS ACTION:
At the regular City Council Meeting on November 12, City Council approved the first reading of Ordinance No. 17-2024.
At a regular City Council Meeting on December 14, 2021, City Council approved Ordinance No. 12-2021: 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.
RECOMMENDED MOTION:
Recommendation
Approval of Ordinance No. 17-2024/Final Reading: Amending Chapter 2, Administration, Article VIII, Firefighters’ Retirement Plan of the Code by amending: Section 2-326, Cost of Living Increase; Section 2-331, Deferred Retirement Option Plan; Providing for Codification; Providing for Severability of Provisions; Repealing all Ordinances in Conflict Herewith and Providing an Effective Date.