HomeMy WebLinkAboutDocumentation_Regular_Tab 20_12/08/2011 VILLAGE CLERK'S OFFICE
AGENDA ITEM TRANSMITTAL FORM
Meeting Date: Meeting Type: Regular Ordinance #:
12/8/11
Consent Agenda: ".:`��oose an it�r�- Resolution #: 31-11
Originating Department: Viilage Manager
AGENDA ITEM TITLE: (VVording form the SUBJECT line of your staff report)
Resolution 31-11, Help Preserve and Protect Police and Fire Pensions — Pension Reform No
BUDGET I FINANCIAL IMPACT:
Account #: N/A Amount of this item: N/A
Current Budgeted Amount Available: N/A Amount Remaining after item: N/A
Budget Transfer Required: No Appropriate Fund Balance: No
EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item)
Resolution 31-11, Help Preserve and Protect Police and Fire Pensions — Pension Reform No
APPROVALS: SIGNATURE:
Department Head — -- -- -
o_ _ � - - --�
Finance Director
Reviewed for Financial Sufficiency ❑
No Financial Impact ❑
Attorney: (for legal sufficiency)
Village Manager: �✓-----
Submit for Council Discussion: �
Approve Item: � �
Deny Item: �
SPECIAL INSTRUCTIONS FOR CLERK: (if you wish to have agreements signed, be sure to include the
number of copies you want signed and place "Sign Here" sticker on them)
Form Amended: 10/20/11
RESOLUTI4N NO. 31-11
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, SUPPORTING POLICE OFFICER AND
FIREFIGHTER PENSION PLAN REFORIIAS; SUPPORTING
LEGISLATION THAT WILL MAKE SUCH PENSION PLANS
SUSTAINABLE, SOUND AND SECURE FOR BOTH CURRENT AIVD
FUTURE POLiCE OFFICERS AND FIREFIGHTERS; PROVIDING AN
EFFECTIVE DATE; AND FOR OTHER PURPOSES,
WHEREA,S, the Village of Tequesta deeply honors and respects the services
provided and the sacrifices made by its police o�cers and firefighters, and desires to
provide both current and future police officers and firefighters with a pension plan that is
sustainable, sound and secure; and
WHEREAS, the Village of Tequesta likewise desires to protect its local taxpayers
from the burden of funding unsustainable and unsound pension obligations; and
WHEREAS, the Village Council has taken great efforts over the past several
years to negotiate sustainable, sound and secure pension benefits for its police officers
and �refighters within the current parameters set forth by the Florida Legislature; and
WHEREAS, although the Village Council has realized a level of success in said
negotiations, it is a legislative priority of the Village Council for the Florida Legislature to
address the current state of police and fir�ghter defined benefit pension plans, and
review the legisfation that has created negative fiscal impacts on the Village and its
taxpayers; and
WHEREAS, the legislative reform being sought by the Village is not that which
would provide the Village with a"bail-out" by the Legislature relative to police officer and
firefighter pension plans, but is that which would create reasonable and responsible
changes to state law which would allow the Village and all municipalities to determine
and implement pension plan reform at the local level; and
WHEREAS, Representative Costello has filed HB 365, and Senator Hays has
filed Senate Bill 91p, both for consideration during the 2012 legislative session, which
bills would responsibly promote increased police o�cer and �refighter pension plan
stability, security and sustainability by making changes to state law relative to the use of
insurance premium tax money, the implementation of defined contribution plans, the
function and duties of pension boards, the termination of pension plans, the use of
overtime for retirement purposes and the use of disability presumptions.
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NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNGIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOW3:
� Section 1 The Village Council of the Village of Tequesta hereby supports
police officer and fireftghter pension reforms at the state level, and as spec�cally
proposed by HB 365 and SB 910 for the 2012 Flor�da legislative session. Specific
reforms that the �tlage supports include the use of insurance premium tax money, the
implementation of defined contribution plans, the function and duties of pension boards,
the termination of pension plans, the use of overtime for retirement purposes and the
use of disability presumptions.
Section 2 The Village Council urges the Florida Legislature to pass and the
Govemor to approve the respoRSible police officer and firefighter pension reforms
proposed by HB 365 and SB 910 for the 2012 Florida legislative session.
Sec__�____t�'on 3 The Village Clerk is hereby directed to transmit copies of this
resolution to Governor Rick Scott, the Speaker of the Florida House of Representatives,
the President of the Florida Senate, the Palm Beach County Legislative Delegation and
the Florida League of Cities, Inc.
Section 4 This Resoiution shall take effect immediately upon adoption.
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Pension Reform Advocacy Kit
Adopt a Resolution ASAP Supporting
Police/Fire Pension Reform!
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Pension Reform Advocacy Kit
Adopt a Resolution ASAP Supporting
Police/Fire Pension Reform!
One of the top Legislative Priorities for the Florida League of Cities is Reform of City Police
Officer and Firefighter Pension Plans and Disability Presumptions to make the pensions
sustainable, sound and secure.
Florida cities need to let their legislators know that their city supports HB 365 and SB 910.
Attached are sample resolutions (a long and short version) that your city can adopt and a talk
sheet with key message points on the issue. This information can also be found in electronic
form at we����-.11c;itic�.cc�m.
Because the legislative session begins early next year (January 10), we need cities to adopt
resolutions immediately.
Legislators must hear directly from their cities on the importance of adopting this legislation.
Thank you for being a part of the League's advocacy team!
Please provide a copy of your city's adopted resolution to:
Speaker of the House Senate President
The Honorable Dean Cannon The Honora.ble Mike Haridopolos
Florida House of Representatives Florida. Senate
420 Capitol 409 Capitol
402 S. Monroe Street 4Q4 S. Monroe Street
Tallahassee, FL 32399 Tallahassee, FL 32399
The Honorable Fred Costello (Bill sponsor) The Honora.ble Alan Hays (Bill Sponsor)
Florida House of Representatives Florida Senate
1101 Capitol 324 Senate Office Building
402 S. Monroe Street 404 S. Monroe Street
Tallahassee, FL 32399 Tallahassee, FL 32399
The Honorable Seth McKeel The Honorable Jeremy Ring
Florida House of Representa.tives Florida. Senate
422 Capitol 21 Q Senate Office Building
402 S. Monrae Street 404 S. Monroe Street
Tallahassee, FL 32399 Tallahassee, FL 32399
The Honorable Jimmy Patronis
Florida House af Representatives
317 House Office Building
402 S. Monroe Street
Tallahassee, FL 32399
Please also provide a copy of your city's advpted resolution to your House and Senate delegatians. You
can find conta.ct information for your House/Senate members at the links below:
House of Representatives -
http://www.myfloridahouse. com/Sections/Representatives/representatives. aspx
Senate - http://www.flsenate.gov/Senators/
Please also provide a copy to:
Allison Payne
Florida League of Cities
F� (850) 222-3806 or E-mail: anavne(c�flcities.com
Key Messages to Communicate to Public
Safeguarding municipal pensions is a critical issue for Florida's 410 cities, towns and villages.
Politically driven police and fire fighter pension manda.tes imposed on municipalities by
lawmakers in Tallahassee are driving costs up and increase the potential for abuse in the system.
The current taxpayer-funded pension structure is broken. It is unsta.ble, unsustainable and
unreliable for future police offieers and firefighters. The time has come to fix the system by
implementing responsibie reform that protects pensions for the future and stops pension abuse.
The pension issue is incredibly camplicated. It is important to communic�te the concems of
Florida's municipalities in a way that is easy for people to understand and framed appropriately
to win the public policy debate.
Under the umbrella "stop pension abuse" message, key supporting message
elements include:
1. Respect work of police officers and firefighters -- and protect tazpayers.
2. Identify haw the current pension system is nnsnstainable, unsvnnd and subject to
potential abuse.
3. Support responsible reforms that stop pension abuse, protect pensions so they will
be there for future gener�Nons of police officers and firefighters and safeguard
tazpayer doliars.
This messaging approach is supported by scientific research that shows when it comes to police
and firefighter pensions, Floriclians are most concerned by issues related to specific pension
abuses, like the disability determination and those who retire and make a lazge sum of maney at
an early age.
Research shows our most effective messages must communicate support for these key elements:
� Stapping specific abuses of the system.
• Enacting responsible reforms to protect pensions for future generations.
These are the strongest points to make to win the debate and bring people to our side of the issue.
In this messaging, we are positioned to be advocates for responsible pension reform that curbs
abuse in the system and puts the system on a more stable footing for the future.
The bottom line is, we support well-deserved pensions for police and firefighters that are
sound, secure and sustainable — not only for current officers and firefigbters, but for those
who choose to protect and serve in the future.
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Ston Pension Abuse: Key Messa�e Points
Umbrella MessaEe
• We must stop pension abuse and support responsible reform so good sound, secure
and stable pensions will be there for current �nd future police aad firefighters who
step up and answer the call to protect and serve our communities now and in years
to come.
Supporting Message ,Statements
We Honor Police and Firefighters' Service by Stopping Pension Abuse
• We all deeply honor and respect the service provided by police officers and firefighters.
That's why current and future officers and firefighters deserve a�nsion system that is
sound, sustainable and reliable.
• We appreciate the work police and firefighters do but when it comes to their pensions,
here are the facts:
o The current police and firefighter pension system is full of Tallahassee mandates
that have helped make it unsustainable, unstable and unreliable.
o Police and firefighter pensions are breaking the bank in many communities and
hurting service delivery.
o There is a high potential for pension abuse that must be stopped.
o Taxpayers deserve to know that their hard-earned tax dollars are not creating
inflated windfall lifetime annuities.
I Support Responsible Pension Reform to Stop Abuse and Protect Pensions
for Current for Future Generations
• I support responsible pension reform that curbs abuse, protects local tazpayers and
ensures good pensions will be available for current and future generations of police
officers and firefighters. Police and firefighter fanulies are taxpayers, too. They also
deserve to have a pension plan that is sound, stable and sustainable.
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Stopping Pension Abuse Protects Local Tazpayers
• We've a11 worked hard to tighten our belts and ensure every ta��payer dollar local
government receives is wisely spent. Responsible reform tv stop peesion abuse is so
critical to protecting your hard-earned tag dollars.
• The current pension system is broken and ripe for abuse that must be tackled.
o It allows some police officers or firefighters to re�ire early and make more than
$80,000 a year ... before they turn 50.
o It allows officers and firefighters with active lifestyles to claim disability and
retire early while collecting full benefits — some even draw disa.bility and leave
service to take other physically demanding jobs.
o It automatically assumes a police officer with high blood pressure or a breathing
condition contraetect tha.t illness on the job and allows them to retire early on
disability — even if the cause of the illness is due to family history or their lifesiyle
and not their job.
• To protect local taxpayers, responsible reform is needed to reign in unchecked benefit
growth, crack down on abuse and put police and firefighter pensions on a strong,
secure and sustainable footing for the futuxe.
• Loca1 government is the government closest to the people — and the one ta�cpayers irust
the most. We need pension reform that allows Iocal government — not Tatlahassee — to
determine salaries and benefits for poGce and firefigbters. Let's respect home rule
and a11ow cities to deal with local problems locally.
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Long Version Specific to HB 365 and SB 910:
Draft Resolution on Police and Firefighter Pension and Disability Presumption Reforms
2011-
A RESOLUTION OF THE [CITY/TOWN/VILLAGE OF 1 SUPPORTING
POLICE OFFICER AND FYREFIGHTER PENSION PLAN AND DISABILTTY
PRESUMPTION REFORMS TO MAKE THE PLANS SUSTAINABLE, SOUND AND
SECURE FOR CURRENT AND FUTURE POLICE OFFICERS AND FIREFIGHTERS.
(Please add any additional information specific to the City/Town/Village)
WHEREAS, the [City/Town/Village] deeply honors and respects the services provided and
sacrifices rnade by police officers and firefighters, and desires to provide current
and future police officers and firefighters with a pension system that is sound,
sustainable and reliable. The [City/Town/Village] also desires to protect local
taxpayers from unsustainable and uusound pension levels. The
[City/Town/Viltage] supports responsible reforms that protect pensions so they
will be there for fitture genera.tions of police officers and firefighters and
safeguard taxpayer dollars; and
WHEREAS, a priority of the [City/Town/Village] is for the Florida Legislature to address
numerous legislative aetions it has taken throughout the past 40 years relating to
the ECity's/Town'slVillage's] police and firefighter defined benefit pension
plans. These actions have had significant negative fiscal impacts on the
[CitylTown/Village] and its taxpayers. The legislative reforms the
[City/Town/VillageJ is seeking do not provide cities with a"hand-out" from or
a"bail-out" by the Legislature relative to police and firefighter pensions.
Rather, the [City/'FownNillage] seeks reasonable anc� responsible ehanges to
sta#e law to "level the playing field" and a11ow cities to detemune and
implement police and firefighter pension reform at the local Ievel; and
WHEREAS, in 2011, the Florida Legislature passed SB 1128, which took important initial
steps in reforming city police and firefighter defined benefit pension plans. T'he
legislation addressed several issues, including prohibiting "spiking" of pension
benefits by restricting the use of overtime and unused sick or annual leave
payments for pension purposes; eliminating the requirement that increases in
police and firefighter member contributions to the pensio� plan must also
include increases in pension benefits; and creating a task force to study issues
with various disability presumptions for firefighters and police and corrections
offieers. Importantly, the 2011 bill did not address the 1999 legislative mandate
to perpetually provide "e�rtra." pension benefits to police and firefighters with
insurance premaum tax revenues; and
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WHEREAS, prior to 1999, cities were largely free to bargain with local police and firefighter
unions, or provide far the non-unionized police and firefighters, the pension
benefits that best fit the priorities and needs of the city and its police and
firefighters. In 1999, the Florida Legislature a.mended Chapters 175 and 185,
Florida Statutes, relating to city police and fuefighter defined benefit pensions
to require that additional city insurance premium t� revenues (taxes on
property and casualty insurance premiums) over a base amount be used to
provide only "extra" pension benefits to police officers and firefighters. An
"extra" pension benefit is a pension benefit that must ha.ve been given to police
and firefighters after 1999 and the benefit must be greater than a pension benefit
provided to general city employees. In aggregate numbers, this mandate has
required cities and city taxpayers to provide more than $460 million in new
"extra" pension benefits to police officers and firefighters since 1999. This
mandate to keep providing "extra" pension be�ef ts is r�ot sustainab�e, rather the
[City/Town/Village] needs the flexibility to use insurance premium tax revenues
for the current or a decreased level of poliee and firefighter pension benefits to
meet the [City's/Town's/Vitlage's] budget constraints; and
WHEREAS, due to severe budget constraints and rapidly increasing personnel costs, the
[City/Town/Village] has attempted to reduce pension costs for general
employees, police and firefighters. Numerous other cities ha.ve also either
attempted or considered reducing pension benefit levels for police and
firefighters to levels below those in effect before the 1999 legisladve pension
mandates. The state Division of Retirement interprets current law to say that if a
police or firefighter pension benefit is reduced to a leyel below the 1999 level,
the pension pl� will vio�ate state law and the eity wotild farFeit all insurance
premium tax revenues. Thus, when cities attempt to bring police and firefighter
pensian costs under control, the cities' actions are frequentiy blacked by the
Division of Retirement; and
WHEREAS, the Florida. Legislature has provided that health conditions relating to heart
disease, hypertension or tuberculosis suffered by a firefighter, lavv enforcement
officer or correctional officer are presumed to be job related. These "disability
presumptions" are applicable to both workers' compensation and disability
pension elaims and have introduced significant opportunities for abuse in the
police and firefighter pension system. Courts have interpreted the presumption
laws so favora.bly toward these employees that cities and other government
employers basically cannot overcome the presumption and show the heatth
condition was not work related. A Task Force on Public Employee Disability
Presumptions is currently meeting to make findings and recommendatians to the
Legislature. Changes to presumption laws being considered by the Task Force
include requiring an employee to meet age and employment requirements,
allowing a presumption to be overcome by a preponderance of evidence, and
allawing certa.in individual risl� factors to be considered when applying the
presumption, such as tobacco use, weightldiet, genetics and lifestyle choices.
All of these proposals are designed to bring a fairer batance to the application of
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presumption laws. It is important to remember that just because an individual
does not have a disalrility presumption does NOT mean they cannat make a
workers' compensation or disa.bility pension claim. Rather, it just means that
the individual must show the health condition is work related, just like every
other emplo�ee who makes a workers' compensation or pension claim; and
WHEREAS, beginning in 1986, the Florida Legislature transferred all operational and
administrative control of city police and firefighter defined benefit pensions to
legislatively created boards of trustees. These boazds of trustees run afoul of
local control and are separate legal entities apart from a city that exercise broad
powers outside a city's eontrol, such as directing all investments of the pension
fund; hiring plan attorneys, actuaries and other professionals; and making
regular and disability pension determinations. In spite of being legislatively
created entities and not locally controlled, all costs �.nd expenses, including
investment losses, incurred by the boards of trustees of pension plans ultimately
becorne a cost to the city because the city is responsible for paying for a11
pension benefits. Additionatly, boards of trustees are nvt required to provide
fiscal transparency or accountability for substantial amounts of public funds;
aud
WHEREAS, HB 365 by Representative Fred Costello and SB 910 by Senator Alan Hays
have been filed for consideration during the 2012 legislative session. HB 365
and SB 910 wouid responsibly promote increased police and firefighter pension
stability, security and sustai.nability by making the following changes to current
sta.te law:
1. Coilective Bargaining Over Retirement Benefits and Revenues: Allow cities
and police and �refighter unions to collectively bargain the retirement
bene�ts provided pursuaRt to, and the use of insur2rnce prerrrium tax
revenues provided under, Chapters 175 or 185, Florida Statutes.
2. Altemative Retirement Ptans: Allvw cities to unilaterally transition to a
defined cont�ibution plan, the Florida Retirement System, or another
retirement pragram for police and frrefighters and continue to receive
insurance premium tax revenues to pay for the retirement expenses.
3. Boards of Trustees Fiscal Transparency and Accourrtability: Require
statutorify created police and firefighter pension boards of trustees to
adopt and operate under an administrative expense budget, and require a
detailed accounting of pension boards of trustees' expenses.
4. Fiscatly Responsible Retiremertt Plan Termination: Require poiice and
firefighter pension boards of trustees and cities to work together for a
fiscally respansible distribution of pfan assets if a city must termir�ate its
police or firefighter retirement plan.
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5. Clarify (Again) Police Overtime Used for Re#irement Purposes: Clarify
(due to an incorrect interpretation by the Division of Retirement of the law
passed in 20111 that police ofFicers may use up to 300 Mours per year in
overtime compensation when cafculating retirement benefits as provided
in the plan or collective bargaining agreement, and that police officers are
not entitled to the use of a minimum of 300 hours per year in overtime
compensation for retirement purposes.
6. Disability Presumptions: Reform current statutory disability presumptions
for firefighters, law enforcement offieers and correctional officers relating
to health conditions caused by tuberculosis, heart disease or hypertension
to require the employee to meet age and employment requirements, allow
the presumption to be overcome by a preponderance of evidence, and
allow certain individual risk factors to be considered when applying the
presumption.
NOW, THEREFORE, BE IT RESOLVED BY THE [COUNCIL/COMMISSION] OF THE
[CITY/TOWN/VILLAGE OF _ }, FLORIDA:
Section 1. That the [City/Town/Village] hereby supports police and firefighter �nsion and
disability presumption reforms in general, and as more specifieally provided in
HB 365 and SB 910 for the 2012 Florida. legislative session.
Section 2. That the [CityfTownNillage] hereby requests the Florida Legislature to allow
cities and poliee and firefighter unions to collectively bargain the retirement
benefits provided pursuant to, and the use of insurance premiuxn tax revenues
provided under, Chapters 175 or 185, Florida Statutes.
Section 3. That the [City/Town/Village] hereby requests the Florida. Legislature to allow
cities to unilaterally transition to a defined contribution plan, the Florida
Retirement System, ar another retirement program for palice and firefighters
and continue to receive insurance premium ta�c revenues to pay for the
retirement expenses.
Section 4. That the [City/Town/Village] hereby requests the Florida Legislature to require
statutorily created po�ice and firefighter pension boards of trustees to adopt and
operate under an administrative expense buaget, and require a detailed
accaunting of pension boards of trustees' expenses.
Section 5. That the [City/Town/Village] hereby requests the Florida Legislatiu�e to require
police and firefighter pension boards a€ hustees and cities to work together for a
fiscally responsible distribution of plan assets if a city must terminate its police
or firefighter retirement plan.
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Section 6. That the [City/Town/Village] hereby requests the Florida. Legislature to clarify
that, due to an incorrect interpretation by the Division of Retirement of the law
passed in 2011, police officers may use up to 300 hours per year in overtime
compensation when calculating retirement benefits as provided in the plan or
. col�ective bargaining agreement, and that police officers are not entitled to the
use of a minimum of 300 hours per year in overtime compensation for
retirement purposes.
Section 7. T'hat the [City/Town/Village] hereby requests the Florida Legislature to close
loopholes that promote abuse in the police and firefighter system and amend
current statutory disability presumptions for firefighters, law enforcement
officers and correctional officers relating to health conditions caused by
tuberculosis, heart disease or hypertension to require the employee to meet age
and employment requirements, allow the presumption to be overcome by a
preponderance of evidence, and allow certain individual risk factors to be
considered when applying the presuxnption.
Section 8. That the [City/Town/Village} urges the Florida LegislatLUe to pass and the
Governor to approve the above responsible reform x�ecommenda.tions relating to
police and firefighter pension plans and disability presumptions in the 2U12
legislative session.
SecNon 9. That the [City/Town/Village] Clerk is directed to transmit a copy of this
resolution to Governor Rick Scott, the Florida Legislature, and the Florida
League of Cities, Inc.
Section 10. That this resolution shall be effective upon adaption.
PASSED IN OPEN AND REGULAR SESSION OF THE [CITY COUNCIL/
COMMISSION OF THE CITY/T4WN/VILLAGE OF 1, FLQRIDA, THIS
DAY OF , 2011.
Version:ll/18/2011
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