Title
An Emergency Ordinance amending Chapter 50 of the "Code of the City of Coral Gables," entitled "Pensions," implementing provisions of the 2017-2020 Collective Bargaining Agreement between the City and the Teamsters and implementing similar changes for Excluded Employees, amending Section 50-29, City Contributions; amending Section 50-230, Normal Retirement Income; providing for repealer provision, severability clause, 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”):
• The retirement cost sharing contribution cap for bargaining unit employees covered by the Agreement shall be reduced by 0.5% for each fiscal year of the Agreement (current cap 15%) as follows:
• Fiscal Year 2018 - 14.5% (effective March 19, 2018)
• Fiscal Year 2019 - 14%
• Fiscal Year 2020 - 13.5%
• The retirement cost sharing contribution cap for bargaining unit employees covered by the Agreement returns to 15% at expiration of the Agreement.
• The maximum retirement benefit in the normal annuity form for bargaining unit employees covered by the Agreement shall not exceed the lesser of: $50,000 annually or 75 percent of final average compensation for participants with less than 10 years of credited service on March 13, 2018; and $67,500 annually or 75 percent of final average compensation for participants with 10 or more years of credited service on March 13, 2018; provided in no event shall a participant’s benefit be less than the accrued benefit on March 13, 2018.
This Ordinance also implements the following pension changes for excluded employees (general employees not covered by the Agreement):
• The retirement contribution for excluded employees for each of the next 3 fiscal years shall be as follows:
• Fiscal Year 2018 - 0.5% less than the percent of compensation determined in accordance with the current cost-sharing provisions of the pension plan (effective March 19, 2018)
• Fiscal Year 2019 - 1.0% less than the percent of compensation determined in accordance with the current cost-sharing provisions of the pension plan
• Fiscal Year 2020 - 1.5% less than the percent of compensation determined in accordance with the current cost-sharing provisions of pension plan
• In no event shall the employee’s retirement contribution be less than 10%.
Effective September 30, 2020, the employee’s retirement contribution shall be in accordance with the current cost-sharing provision of the pension (no reduction).