Title
An Ordinance of the City Commission amending Chapter 46 of the "Code of the City of Coral Gables," entitled "Pensions," implementing provisions of the 2024-2027 Collective Bargaining Agreement between the City and Teamsters Local Union 769, amending Section 46-25, Definitions; Section 46-26, Compulsory Participation; Section 46-27, Purchase of Credited Service; Section 46-29, City Contributions; Section 46-34, Employee Contributions; Section 46-253, Normal Retirement Income; and Section 46-269 Deferred Retirement Option Plan (Drop); and providing for severability clause, repealer provision, codification, and providing for an effective date.
Body
This Ordinance implements the following pension changes contained in the recently ratified collective bargaining agreement between the City and the Teamsters, Local 769 (the “Agreement”):
• Effective October 7, 2024, the employee contribution to the Retirement System shall be 10% of compensation.
• Effective October 7, 2024, the maximum benefit limit of $67,500 is removed. The maximum benefit limit of 75 percent of average final compensation applied to a member's normal retirement income payable in the normal form of benefit is maintained.
• Effective October 7, 2024, the maximum participation in the DROP shall be extended to 96 months (8 years).
• Open the Retirement System for a limited time to allow employees who chose to participate in the Defined Contribution Plan instead of the Retirement System an opportunity to become a member of the Retirement System going forward. Employees will be allowed to purchase their prior full-time service with the City at an amount equal to the full actuarial cost of the service as determined by the plan actuary.
Additionally, the following change was made between first and second reading:
• One of the normal retirement dates for appointed officials will be on the date on which the appointed official attains a cumulative benefit multiplier of 75%, regardless of the appointed official’s average final compensation at the time of retirement.
FINANCIAL INFORMATION:
|
No. |
Amount |
Account No. |
Source of Funds |
|
1. |
$400,000 |
Various |
General Fund |
|
Total: |
$400,000 |
|
|
Fiscal Impact: The amount reflected herein is the approximate fiscal impact for fiscal year 2025. |
Recommended Action
Approval.