HomeMy WebLinkAboutDocumentation_Regular_Tab 08C_11/18/1993 ' .___s_.
�' � � VILLAGE OF TEQUESTA
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� � Post Officc Box 3273 • 357 Tcqucsta Drivc
S�_ Tcqucsta, Flonda 33469-0273 •(407) 575-b200
� �-' Q Fax: (407) 575-6203
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MEMORANDUM:
T0: Village Council �
�
FROM: Thomas G. Bradford, Village Manager ����j
/
DATE: November 12, 1993
SUBJECT: Villaqe Council Statement of Intent to Withdraw
From the Florida Retireraent System (FRS); Agenda
Item
The FRS is once again on the agenda of municipalities seeking to
opt-out. In the last legislative session, legislators directed
that the Department of Management Service survey cities having an
interest in withdrawing from the FRS, as well as their employees,
so that the legislature would have additional information from
which to make a decision relative to opt-out legislation.
Attached is correspondence received from the DepaL,-ment of
Management Services in this regard. Also attached, pleas�� find a
copy of Resolution No. 5-88/89 of the Village Council. At the time
of that Resolution, the cost of Special Risk Employees was 17.98�,
and today it has risen to almost 28$. It is assumed that the
Village Council wishes to maintain the same posture, that is to
urge the legislature to allow municipalities an option to withdraw
from FRS for all future employees.
Assuming this to be true, it is recommended that th� Village
Council take the following position relative to the r�>quested
Statement of Intent:
1) Tequesta will withdraw from the FRS for all future new
employees, if given the opportunity.
2) Authorize the Mayor to sign the Statement of Intent on behalf
of the Village.
In a related matter, the Department of Management Services, in
response to the Legislature, is requesting each city to survey its
employees relative to the FRS. In this regard, please find a copy
of correspondence dated September 29, 1993, from Ray Sittig,
Executive Director, Florida League of Cities, pointing to the
Page 2—
absurdity of this employee survey request. It is recommended that
the Village Council direct the Village Manager to respond to the
Department of Management Services regarding the employee survey and
state that:
1) Since it is the intent of the Village Council of Tequesta to
withdraw from the FRS for all future employees, current
employees would not be affected. Therefore, the opinions of
the current employees are irrelevant.
2) It is the responsibility of the Village Council of Tequesta to
create and oversee the management of all employee benefits.
The desires of employees relative to benefits are taken into
consideration by the Village Council, along with all other
obligations of the Village Council as representatives to the
taxpayers of Tequesta. Accordingly, the opinion of the
Village Council should suffice.
It is recommended that the Village Council take the FRS actions as
referenced herein.
TGB/krb
Attachment
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DMSION OF RETIREMENT `j '� � ��
L11'1'T'ON CHILES ` � SE RY
Gn�'ERyOR '
Cedus Executive Center • Building C• 2639 I�iorth Monroc Svcct • Tallah sec�Fl��,.� ��6 9� 2
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September 15, 1993 u�
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MEMORANDIIM
TO: Al1 FRS City Managers
�_i
FROM: A.J. McMullian II
State Retirement D'
SUBJECT: Agency Withdrawal From Participation in the FRS
Over the past 10 years, the legislature has considered many different
bills to allow cities that previously had joined the Florida Retire-
ment System(FRS) a one-time option to withdraw from participation in
the FRS. None of these bills has passed both the House and the
Senate. Although membership in the FRS is not compulsory for cities,
a city that elects to join the FRS makes an irrevocable decision (see
s.121.051(2)(b),F.S.). As cities have experienced retirement cost
increases over the last several years, some of them have sought
relief from the FRS retirement contributions required by law, propos-
ing instead to offer a separate retirement plan in hopes of reducing
the cost of fringe benefits for employees.
During the 1993 Legislative Session, legislators received opposing
pressure from the employing cities, employee unions, and the city
employees whose retirement might be affected. As a result, the
legislative leadership determined that no further action would be
taken until more current and specific information was made available
as to the number of cities that would withdraw from the FRS, if given
the opportunity, and the attitude and position of the employees of
those cities.
The Senate Committee on Personnel, Retirement, and Collective
Bargaining has directed that all cities under the FRS be requested to
conduct a survey of their city council members and city employees to
determine the preferences of both groups. The Division will prepare
a summary report to the Legislature reflecting the results from all
106 cities.
If your City has no interest in withdrawing from the FRS, there is no
need to survey your employees. Please seiect item a. on the State-
ment of Intent, sign and return it to the D.ivision. If you fail to
respond by January 1, 1994, it will be assumed that your City is not
interested in withdrawing from the FRS.
All FRS City Managers
September 15, 1993
Page Two
Employee survey
Enclosed is a survey that should be copied and distributed to each of
your employees, and a form that should be taken up by the City
Commission and signed by the appropriate official. You may wish to
include additional questions on the survey and provide additional
information with your survey to help your employees understand the
alternative plan your City would propose in lieu of FRS benefits.
To report the results of the employee survey, please use a blank
employee survey form and insert the total number of responses
submitted by your employees for each statement. For example, survey
question l.b. states "I think the City should: Withdraw from the FRS
for all future new employees." In the blank that follows that state-
ment, you would enter the number 56, if 56 of your employees had
selected that statement. Enter a zero if no employees marked the
statement. The survey results should be signed and dated by the
appropriate city official, identifying the City by name and agency
number.
Statement of Intent by City Commission or Council
The City Commission/Council should review the enclosed material and
indicate on the Statement of Intent the official position of the city
to remain in the FRS or withdraw from the FRS if the Legislature
amends the statutes to allow a one-time election for cities to
withdraw.
Enclosed for your information and use is a copy of HB 1509 (similar
to SB 1616), which was introduced during the 1993 legislative
session, and a letter to Representative Brown responding to her
concerns in this matter.
Upon completion of your survey, please return the following items to
the Division of Retirement, Research, Education and Policy Section,
2639-C N. Monroe St., Tallahassee, F1. 32399-1560, by January 1,
1994: �
1. A summary of the survey results in the format previously
described. Include your entire survey if additional
questions were added by you.
2. A copy of any information you distributed with your survey.
3. The Statement of Intent signed by the appropriate official
representing the City Commission/Council.
Please call Virginia Bryant or Sara Dugger at SUNCOM 278-5706, or
(904) 488-5706 for help with any questions you may have.
CC: Mayor of City Council
i
(Survey Form - City Employees)
Survey of Withdrawal
of the City of
from the Florida Retirement System
Date
Dear City Employee,
Your City may have a one-time opportunity to withdraw from the FRS.
In order to determine whether such withdrawal is in the best interest
of the City and its employees, the Florida Legislature has directed
that a survey be conducted of the City Council members and the City
employees in the 106 cities that participate in the FRS.
If your City withdraws from the FRS, it will be required to provide
its employees with retirement benefits that are comparable to those
provided by the FRS.
If you are a City employee who is a member of the FRS, please
complete this survey and return it to your personnel office as soon
as possible. Item 1 allows you to select your preference. Items 2,
3, and 4 should be checked to indicate that you understand the effect
of your choice.
1. Z think the City should:
: (_) a. Remain in the FRS
(_) b. Withdraw from the FRS for all future new employees.
(_) c. Withdraw from the FRS for all current employees and
future new employees.
(_) d. I don't know what is best or have a preference.
2, (_) I understand that if the City withdraws from the FRS for
all future new employees, I and all current employees will
remain in the FRS.
3, (_) I understand that if the City withdraws completely�from the
FRS for both current and future employees, I will retain
all service credit already earned in the FRS and can claim
a retirement benefit in the future if I am already vested,
but that my future service with the City will not be
included in the calculation of my FRS benefit.
4. (_) I understand that under Florida law I cannot earn a retire-
ment benefit from two separate retirement plans funded by a
public employer for the same period of service performed,
and therefore all of my existing service with the FRS
cannot be included in the new City plan toward a future
benefit.
ank you for your cooperation.
. cM lian III
State Retirement Director
(Intent Form - City Commissioners/Councilmen)
Statement of Intent
of the City of
to Withdraw
from the Florida Retirement System
Date
Dear City Commissioner,
Your City may have a one-time opportunity to withdraw from the FRS.
In order to determine whether such withdrawal is in the best
interests of the city and its employees, the Florida Legislature has
directed that a survey be conducted of the City Council members and
the City employees in the 106 cities that participate in the FRS.
Any city that withdraws from the FRS will be required to provide its
employees with retirement benefits that are comparable to those pro-
vided by the FRS. The FRS is an employee noncontributory plan. It
is a defined benefit plan, which means that melnbers are guaranteed a
retirement benefit based on the years of service and salaries earned
at the time of retirement. (By contrast, a defined contribution plan
guarantees that a certain dollar amount will be contributed to an
annuity for the employee. At retirement the employee will receive a
benefit based on the value of the annuity at that time.) Other
important benefits provided by the FRS include disability benefit
coverage, survivor benefit coverage and a 3� Cost-of-Living increase
each year after retirement. In addition, FRS retirees receive a
payment to help defray costs for health insurance. In calculating
the amount of the benefit, all of the service an employee has with
tr,e City will be combined with the service the employee has with any
of the other 755 public agencies that participate in the FRS. This
portability will be lost if the City withdraws from the FRS.
Please complete the following official statement by the City Council,
signed by the appropriate authority.
We have agreed that the City:
(_) a. Has no interest in withdrawing from the FRS and does not
need to survey the employees
(_) b. After surveying the employees, will remain in the FRS.
(_) c. Will withdraw from the FRS for all future new employees,
if given the opportunity.
(_) d. Will withdraw from the FRS for all current employees and
future new employees,if given the opportunity.
We understand that if the City withdraws from the FRS for all future
new employees, current employees will remain in the FRS.
Date
Statement of Intent �
Page Two
We understand that if the City withdraws completely from the FRS for
both current aad future employees, current employees will retain all
service credit already earned in the FRS and can claim an FRS retire-
ment benefit in the future if they are already vested, but that all
future service with the City will be included only in the City plan.
We understand that the employees of this City cannot earn a
retirement benefit from two separate retirement plans funded by a
public employer for the same period of service performed, and
therefore none of the employees' existing service with the FRS can be
included in the benefit earned in the City's new plan as provided in
s.112.65(2), F.S. [All FRS creditable service earned by a member
remains creditable, to be applied toward a future benefit, unless
employee contributions are refunded at termination. Creditable
service paid with contributions by the employer only is maintained on
behalf of the employee indefinitely. A former member who is vested
may elect to commence FRS benefits for which he is eligible at any
time. Creditable service for a former member who is not vested is
retained and will be added to any future FRS creditable service the
member may earn].
Signature:
Name:
(Authorized Official of the City Council)
Title:
Agency Number:
Date•
DEf'ART�1�:�T OF A1AhAGE�tE�'T'
s�R��v1
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L���T( CHILE� DMSION OF RE"IIREMEN�1' �� '1:.1-1.�.�1 H Li�[)�'ER
GO�'ER�UR
Sr�hETARI
Ccdars Earcutn�c Centcr . Building C. 2639 North I�'Ionroc Svicet .'Tallahassec, FL 3�399
March 17, 1993
Honorable Shirley Brown
P.epresentative, District 69
300 House Office Building
Tallahassee, Florida 32399-1300
Re: CS/HB 805
Dear Representative Brown:
This will confirm our discussion today regarding the above subject bill vhich,
- if passed, will allow the 15 hospitals (3 county/dependent special district
hospitals and 12 independent special district hospitals) a one-time option to
vithdraw from the Florida Retirement System (FRS) effective January l, 1994
for all new employees, with all current employees remaining members of the FRS
for as long as such employees remain employed by these hospitals.
SB 1240, sponsored by Senator John Grant, which is the companion bill to your
bill, CS/HB 805, was. heard recently by the Senate Committee on Personnel,
Retirement, and Collective Bargaining, but SB 1240 failed to pass this Senate
Committee. The Committee Chairman, Senator Holzendorf, directed the Division
of Retirement to write to all of these hospitals, as well as to all cities
under the FRS, advising said hospitals and cities as follous:
� o The Legislature will not pass any legislation alloving cities
and/or hospitals to withdraw from the FRS until more consider-
ation and siudy have been given to this proposal and information
is available to identify the cities and hospitals that will opt
out of the FRS if such legislation is passed.
o The Division of Retirement shall ask all cities and hospitals
currently participating in the FRS to conduct a sUrvey of their
council members, board members, and their employees to determine
individual preferences relative to withdrawal. The cities and
hospitals desiring to withdraw from participation in the FRS must
advise the Legislature of their desire to withdraw and whether
the employees agree or object to agency withdrawal.
Honorable Shirley Brovn
March 17, 1993
Page �
It is my understanding that the Senate intends to address this issue of cities
and hospitals withdrawing from the FRS once and for all in early cor.,mittee
meetings that vill be held prior to the 1994 Legislative Session. Conse-
quently, the Division of Retirement will follov the Senate's direction and
prepare an appropriate questionnaire to all cities and hospitals currently
participating under the FRS. Said inquiry will request the cities and hos-
pitals to participate in this survey and to provide the specific infor�ation
requested for consideration by the 1994 Legislature.
Please advise if you have further questions or we can be of assistance in any
wa`: .
Looking for��ard to working with you on this project in the coming months, I am
Sincerel_; ,
LC� 1"lr�� .
A. J. McMullian III
State Retirement�Director
AJM/na
cc: Honorable Betty Holzendorf
Honorable Jim Davis
Floria� riouse of Repcesentatives - 1993 �B 1509 �
By Representetive.Kerrigan
1 A bill to be entitled
2 An act releting to the Flocids Retirement
3 System� amending s. 121.051, F.S., relati�g to
4 optional participation for cities and special
5 districts� authorizing eities snd independent
6 �pecial districts which heve opted to �oin the
7 Florida Retirement System to revoke their
8 election to partleipate in ordec to establish
9 sn elternative retirement plan� providing for
10 public hearing) providing for publiesLion of
11 notice) providing for sn aetuacial report�
12 providing for presentaLion of the plen snd
13 report to ench certified bargaining unit�
14 reQUiring negotietion; providing for sdoption
15 of s revocation resolution) providing
16 conditions� providing for ine�ease of
17 retirement contribt.+tions) providing sn
18 effective date.
19
20 Be It Enscted by the Legislatuce of the State of Florida:
21
22 Seation 1. Peragreph <b) of subseetion (2) of section
23 121.051, Florida Statutes, 1992 Supple�nent, is smended to
24 read:
25 121.051 Participstion in Lhe system.--
26 (2) CPTIG.;:,L rARTICIPATIO?�.--
27 h'.. 'i',r goveri,�ng body of eny citl• nr specisl
28 distrlc:� i� the state mey elect to psrticipete in the systen�
29 upon p�oper epplicaiion to the •dministr�tor end ��y cover •I1
30 or any of its units as npproved by the Seecetnry of Health snd
31 Hu�nsn Services snd the administrator.
1
CODING: Dcletions ere etriokow� nddit[ons •re underlined,
, H� lsuy
� _ HB 1509 Floridr House of Represent�tivea - 1993
Flor�d• Nouse of Represent�tives - 1993 526-102-1-3
526-102-1-
1
1 2, A�y city or spaoi�l dlstrlot th�t hrs .n eKisting 2 This publio�tlo� w�s produo�d •t �n �v�r�p• cost of 1.12 oents
per singls p�ge Sn oomPliwnae with thisl�ture��ndith� publio.
2 retice�ent systew eovering the ewployeas !n the units which 3 the inform�tion of ine�be�s of tha Leg
3 rr• to be brought under tha Florid• Retice�ent Syste� T�Y 4
y p��tiolp�te only •fter holding • referendum in whicti ell 5
S ewployees ln the �ffected units h�ve the rlght to p�rtieipate.
6
6 Only thosa e�ployees eleoting coverege under the Florida '
7 Rctire�ent Systew by •ffirw�tive vote in seld referendum shsll 8
8 ba elSgible for cover�ge under this ohspter, wnd tF�ose not
9
9 p�rtLcipatlny or eleeting not to be oovered by the Florlds 10
10 Retir��ent Syste� sh�ll ren�ln in their present systen�s snd 11
11 sh�ll not ba ellgible for cover�ge under this ohspter. After
12
12 s�ld rafer�ndu� !s held, •11 future en�ployees sh�ll be 13
13 eo�pulsocy �ewbecs of the Florld• Retice�ent Systen�. 14
14 3. The governing body of •nY a1tY ec SPa°isl distriat 5
15 oo�plying rith subp�r�gr�ph 1. w*Y elec! to pcovide, or not 16
16 provide, benefits b�sed on p�st servioe of offiaars •nd 17
17 e�ploye�s •s dascribed in s. 121.061(1). Howavar� lf such 18
lB ewploysr aleots to provlde p�st secvice benaflts, suoh 19
19 benefits sh�ll be provlded for •11 officers end employees of 20
20 its covered group• 21
4, Onee this election is �ade and •pproved it way not
21 22 •
22 be revoked, at auc usnt to subParsareahs 5 and 6._ •nd �11 23
Q; present offlcers ■nd enploynas aleating eoversge under this 24
24 oh�pter �nd �11 future officers end employees sh�ll be 25
25 co�pulsocY ■ewbecs of the flocids Retirement Systew. 26
26 c c►,� .-y to !he 1 1 ns t forth in subp�raara�hh 27
2� 6 0o rnina bod� of •n 28
� �leated 4o w� *�alp�te in
28 '" a �n s 12L Q11t9) whloh : 9
29 • ° � 30
� �� � e� ln �oaordMnce w1` *h� folloNino 31
7
;1 oroo_ edvc _a t
2 CODING: Deletions •re �t►iok�^f •dditions •re unde� !.d•
COOING: Deletlons •re si�i�k�wj •dditionc ■ra underlined.
Florids House of Represe�t�tives - 1993 HB 1509 Flocida House of Representatives - 1993 HB 1509
b26-102-1-3 526-102-1-3 �
1 9ffice o formslls make such �eleation in Ncitina. Once this 1 v No more than 30 dDY3 •nd at le�st 7 d■va bsfore
2■leotion is m�de it mev not be revoked 2 gdopLina a resolution to revoke election to p�rL1G�P�tC 1� th�
3 IV Anv emalovee or officer fsilina to timely mAke 3 Floclde Retirement Svstem in order to estnblish sn •lter��tive
4 such eleo ion ahsll be encolled in the looel p10� In such 4 �etirement alen, e p�blia hearina shsll be held on the
5 s enrol nt in the locsl p1An shall bn finwl snd bindina ' 5 p�oposed revocation snd aroposed slternetive plsn
6 60 oal ndar devs folloxina emalovment oc wss�mation of offioe 6 b From 7 to �5 davs arior to such he�cina, notice of
7 Section 2. ,To fund the acovisions of this sot, tha 7 lntent to cevoke saeeifvina the time end alace of the
8�saaot��•� aero ^t.a. �e�tri6ution r�tes sealloeble to 6�---'-^ �`� " be acovided in Ncitina to l�PlOylOi •nd
9�maloy rs of inembars of the re�ular snd saeoi*1 risk classss 9 offlQers of the citv or saecisl d�strict aroposina �evoc�tion
10 of the Florld� Retirement Ss��sM on Jwnuacv 1, �995, �nd on 10 end shell be aublished in O ntMSPDPlC of oenersl cicculatlon
11 Jenu�rv 1. 1996, shwll each be inore*sed bv .03 veraent. *nd 11 in Lhe area affected �s arovided bv ss 50.011-50.031. Proof
12 *hs resaeotive aontrlb�tion rates �DPZiCwbl! to emrloyera of 12 of aublicstion of such notice sh�ll be sub�itted to the
1� �.�ti.�. �s +ti. .�.�i.t ri.� .d�i�i■tretive .unoort ol�ss on 13 Division of Reticement.
14 ��n�srv 1 1995 �nd on J�nu�rv 1 1496 shall esoh be 14 The aovernina bodv of pny eitv or speei�l district
Ib inore*-ed bv 0 2 recoent Said inoressea shell be in addiLion 15 seeki�a to revoke its election to asrticia■ta in the svste■
16 �_ �jLo�har oh�naes to s�oh oontrib�tion r�te• xhiQh mwv be 16 -�- "-�'^^ to such �evocstion have ■n •etu�ri�l rsaort
17 �n�oted into l�x to L�ke effeot on �wid d�te. 17 arenrred 4nd cert�fled bv �n enrolled ret�wrv� �s defined in
18 Seotion 3. This •ot sh�ll t�ke affeot upon beoomi�y � 18 s 112 625(3) illust��tina the cos� to the eity oc saeci�l
19 l�w. . I9 di *rict of arovidina throvah the retlrewent ol�n Mhich the
20 20 its oc speeisl district is to �doat benefits for neM
Z1 Yz�xx:xxx�zxxx�z*�xxx:xxx����xx�xxx*xz�xx 21 emnlovees comaersble to those arovidcd under the Florid.
22 HOUSE SUHMARY 22 Re�icement Svstem as reauired bv sub-suba�caacsph 6.e. The
23 Revises provisions of thn Florid� Retirement System to 23 pcoaosed altecnetive alsn end report shell be acesented to
suthorize eities •nd independent speaisl districts which
24 have opted to �oin the syste� to revoke their aleotion to • 24 g,p4h certifled ba�aoinina unit prior to sdontion of �
partioipate i� ordec to eatablish sn slternstive
2b retirewent Pl�n. Provides for publio he�rings, notioe 26 cs�� r�enlution under SUb-SUbApCaqClPh s�
wn •atu�rial ceport, and for the presentatlon of thn pt�n
26 •nd report to each oarLified bsrg�i�ing unit. See bill 26 d No citv or speciei dist�ict which h�s ■ collective
for deteils.
27 27 bsrg�inina eareement xith a eectified bs�4ain�na •cen_� T�Y
2g 28 exsroise the ciaht of revocetlon o# the membershla of the
29 29 veced class xithin the unit without neootietina such
30 30 � ^�*�^^ � PCOpOStd alternwtive pl�n •� PCOY��Cd bY
31 31 chpptec 447 with the effected barasinina �nit If �ore th*n
6 3
CODINGt D�lstlons •r• �i�i�k��{ •dditlon• ■ra underllnad. CODING: Deletlons •re stnlok�w; •dditlons •re underlined.
� Florida House of Representetives - 1993 NB 1509
Flovld■ No�se of Representatives - 1993 NB 1509
526-102-1-3
526-10?-1-3
cwr5 5hU11
; e�� b■ro�inina unit eKists eMC� ��^s* shNll indcaendent�t
1�istriat the �* m �nd the em�lo�ees and offi-
2 Fgmpin in full forae end affe�L Exoeot ws orovided in sub-
2 neaoti�te.
3��oaeaaraah c no em»lovees and offi�err who sre hire or
3 e Uaon �estlna the �eauirements Set forth �� sub-
4 subPSr�a * d ■s oPPi1COD1! an d subiect to the 4�n ffice on or after Januarv 1 1995 m�v be oertioinsnts
5�onditio�s s�t forth in S�bPOCOaSAPh b revocation of
5 in the Florida Retire� °' and the revokina citv o[
6 41 i n to P�CLICIP�CC in the svstem, and edoption of the 6 g�•ei�l distriat �hall_h«�a no obliaation to the svs_tem with
� ��••�.: .�d offieers.
7 _ � to such_e-�_ - - -
� E, i e�nent alsn es provided under sub-subParaaranh c.. Sha� „t...... 6ir.c� oc elicit�
g Q Nith reanect to anv Q�
8�{ •ccon�nlished bvi cesolution dulY Pdoated bv_the cltv or 9 0��, �+�d or aaoointed on - i` - � `anu*cs+ 1 1995 Mho
9 e 1 1 district The citv or saecisl district shsll arovide fous publio emaloyment or aublic offis�
10 in his mo ,'
10 +� t otice of uch revocstion to the division by mai B 11 N mb of the Florida ReLirement Svstem the c�vokina
11 �'eov of thc r�solutlon to the division, rQStmarked no a te or sa oial disGriot shall offer �ech suoh amplovee or
12 ��,y
12 • QeceTber 15 1994 The �evocstion ahall take eff_ss� �►, ., c�on to elec4 to nartioinwte ln either the lo�Ql_
13 offiaec
13 �n��c� 1� 1995. • •he Florida Retirement Svstem Pursu�nt
:-• { ♦ ..1.Sr.F� reunkwb iti 1 � 1 [Si,� v`
14 6� A c i tv Q '•� 5 ther_____ e___to ,
15 p3 ti •tion ir� tha Florid• Retirewe�t Svstem shall arov p li ! 1 malo e or offi r oatina to elect
16 � fined Deneflts to its emalovees �nd officers Mhich are
16 1.
1� �ble Lo those arovided by the Florida Retirement Svstem. 17 p,p,�y a, ion in ihe Florid■ Retirement Svstem �hall mwke suoh
lg � in ►+riti within 60 awleodar dsvs sfter th2 dste of
16 S 1 fi ° �s used 1n this section means� r emalovmant or ass�mat of offioe, Sueh
*-r 165 for aolice 19
1! � 1 f 1 in •ceordrnce MiCh CI1MP „
2p �ention shall be filed with the Divi `� of Retirement an ,_
20 Qf icers �nd •doation of 9 Pla�1 in eccordance with chapter 5 21 N a � iate. with the local aecsonnel s►fficer. Once
21 � ficefiohtecs Nothina shell preclude a_citv oc snecial 22 this election is made it mav not be revoked.
22 di t'ct from estsblishina s defined eontribution plan �ith 23 � zf en � i +tii �iwnlpVf,'G or offi,�-r timels eleats
23 oiected beneflts comas�able to thos� provided within the
24 to aarticipato in the Flocida Retirement S�stem the emalover
24 Florids ReLiren�ent Svstem.
25 ell 11 h emalo or officer i� the svs_*-�__retrosot ve
25 b FolloNlna the sdovtlon of s revocrtion cesolu�l4Q 26 to t first dav of lo�ment or e�ssut�ntion of offiQ�l1�.
p;• ---�-•• es and officers of thg
26 ��der sub suba�c� a 27 i h Di i ion of Retirement the rsauired
27 �� i�l dis��ict who were e�rticiaants ln th� Plocid� 28 �P tirement contcib utions.
2e � e t Svste� arior to Janurcy 1 1995. shutl remain as 9 � x p elloib' t Vee or offi��� optin�t_to eleet
29 � ticiP�nts 1n the ssstem for as lona •s thev are emPlostet� 30 �i tpation in the loesl plen s6s11 have 60 ^°��^dar davs
n�e`!pl distri t d O1 i t5 me __ a i � .+lovment OC dS 4111 C
30 vr offlce�s of the cits oc f 31 ccpr #he date
31 du ie ` �nd oblla�tions between the citv the specia 5
4
CODING: Deletions are etvlok�wi �ddltions rre undr_ rlined•
CODING: Delatio�s •re etriokow� •dditions •ce undecline .
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� RESOLUTION N0. 5-88/89
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J1 RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE !
OF TEQUESTII, P1�LM BEACH COUNTY, FLORIDA, REQUESTING �
THAT THE 1989 SESSION OF THE FLORIDI� LEGISLIITURE ,
I ENACT LEGISLATION WHICH WOULD P+LLOW MUNICIPALITIES
TO WITHDRAW FROM THE FLORIDII RETIREMENT SYSTEM.
I
WHEREAS, the Florida Legislature in 1970 adopted I
legislation which allowed munieipalities of the State to join �
�the Florida Retirement System; an¢ �
WHEREAS, at the time when many municipalities entered the i
i Florida Retirement System, the cities' contributions were 4� of
the employee's salary and the employee was required to �
contribute 4$; and i
WHEREAS, the Florida Legislature made said Florida
Retirement System non-contributory for city employees without �
the consent of inember cities; and i
WHEREAS, effective January 1, 1989 Tequesta is required to i
contribute 14.38$ of gross salary for zegular employees and
17.98� for special risk employees; and
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WHEREAS, the city governing bodies hava no control over �
additional increases and benefits and additional contributions;
� and
WHEREAS, said increases and benefits and contributions may I
result in additional tax burden on the citizens of the I
�municipality includinq the Village of Tequesta; and �
WHEREAS, cities individually may provide benefits that are
actuarially equivalent to the Florida Retirement System at less
cost; and
WHEREAS, many city employees are forced to forfeit the '
entire city's contributions to the Florida Retirement System
without vesting in such system; and
WHEREAS, much of the city contributions are now being
I allocated to pay for actuarial deficits and unfunded liability ,
created prior to the city's enroliment into the State program; �
and �
WHEREl,S, the State's own independent actuarial valuations
indicate that allowing cities to withdraw from the system for
all future employees wouid result in an insiqnificant effect on
the remaining members of the Florida Retirement System.
�
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF �
ITHE VILLAGE OF TEQUESTA:
Section 1. The legislature of the State of Florida should
limmediately pass legislation which would allow municipalities
in the State to have one (1) year to withdraw from the Florida
�Retirement System for ail future employees.
Section 2. Specificaily, the Palm Beach County Leqislative �
Deleqation is zequested to support any such leqislatioia which
would allow municipalities in the State to have one (1) year to �
withdraw from the Fiorida Retirement System for all future '
employees.
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Section 3. Senatorial Membere of the Palm Beach County
Legieletive Delegation are requested to give due consideration
��to being the Senate'e sponaor for the bill filed by House
I Representative Harxy C. Gooda, Jr. of Melbourne which will
� permit municipalities to opt out of the Florida Retirement
, System.
I
Section 4. The Village Clerk is hereby directed to provide
copies of this Resolution to the Palm Beach County Legislative
Delegation, Secretary of the Florida Senate, Clerk of the
Florida House of Representatives, Palm Beach County Board of
� County Commissioners, all Palm Beach County municipalities, and
the Executive Director of the Florida League of Cities for
purposes of information dissemination and consideration of the
Il matters contained herein.
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THE FOREGOING RESOLUTION was offered by
Councilmember William E. Burckart who moved its
adoption. The Resolution was seconded by
Councilmember Joseph V. Capretta , and upon being put to a
l ivote, the vote was as follows:
( I
FOR ADOPTION �GAINST ADOPTION '
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Earl L. Collin�s
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Edward C. Howell
;
Ron T. Mackail • (
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tir'illaim E. Burckart
Joseph N. Capretta ,
�
The Mayor thereupon deciared the Resolution duly passed and
adopted this 9th day of March , A.D., 1989. �
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1 I MAYOR OF TEQUESTA I
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; � ,Q� �. r.� �,�..:�
� Ron T. Mackail �
( AT'PEST : �
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d�
Bili C. as elis �
Finance Dir tor/Clerk �
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� Pies/dent Fionda league of Cities, 1nc
' ilene Lieberman � 20� West Park Avenue
Mayor, Lauderhill Post dn�ce Box i; 5'
Tallahassee. FL 32302-�'S'
Flrst Vice Pres/dent Telephone (904) 222-968-�
Clarence Anthony ¢ .� Suncom 278-533�
AX (904) 222•38Q6
Mayor, South Bay � �� � ��� � '�
Second Vlce Presldent = — _ _ _ _ _ _ _ = _ � ��� �
Larry Schultz - _ - — - s ��• �T,/
Councilman, Rockledge j
, L � ,���� �99� �
� %. �'�, R'J
September 29, 1993 0��,, e�
/i�i ��,� �
Andrew J. McMullian, III
State Retirement Director
Division of Retirement
2639 North Monroe Street, Bldq. C
Tallahassee, Florida 32399-1560
Dear Mr. McMullian:
This letter is in response to the notice you have sent to
all cities participatinq in the Florida Retirement System
(FRS) asking that they survey their employees to determine if
they (the employees) wish to opt-out of FRS. We believe that
question to be most inappropriate and unfair on two accounts.
First of all, you are certainly well aware that the
creation and management of all employee benefits is a
responsibility of the qoverninq body of the city. They may
take into consideration the desires of the employees along
with all the other obligations they enjoy as representatives
of the taxpayers. In some instances, they may have agreed to
such benefits through the collective barqaininq process and
that opportunity has been assured by, in my opinion, a
decision by the Florida Supreme Court.
Secondly, even if it were appropriate to poll the
employees on a subject of this nature, it is unfair for them
to respond without the data necessary to help make an informed
decision. A truthful and straightforward question might
better be put in this manner:
'�Do you believe that up to 50� of the retirement
contribution made by your city on your behalf of the
Florida retirement System should be spent on fundinq an
actuarial debit that neither you or your city had
anythinq at all to do with creatinq?" or, perhaps,
"Are you aware that if your city took the contribution
they are makinq for FRS for your retirement, and manaqed
AhLasys:EricSmRh,Councilman,Jadcsonville • Alex�nderPenelas,Commissioner.Metro•OadeCounty • GenidThompson,Commissioner,BrowardCounry • BarberaSfwen
Todd, Commissioner, Pinellas County • Robert E. Tuttf�, Commissioner, Volusia Courriy • DlsMct Dlisctws: Rkhard (iaq�, Counplman, Cinco Bayou . Rab�rt F. Bamard.
Gommissiarer, Panama City • GknalBowden. Counalman, Lake City • Georye E. INusson, Mayor, New Smyma Beach • John L Sm�A, Mayor. Lake Heten . Wllllam Copeland.
Councilman, Archer • Psula M. O�Laney. Commissioner, Gainesville • John Land, Mayor. Apopka • 8ettye D. SmNh, Mayw, Sanford • Jossph Gnco. Counal Chairman, Tampa
• Fnnk R. SatcMl, Jr., Mayor, Mulberry • Holland G. Mar�um, Mayw, Seminole • W�Posr Stubbs. Mayor, �reasure Island • Rodry RandMs, Counalman, Cape Canaveral • 1MM�
Ludwl9.Couna�person, West Melbourne . Kevin Hsnd�non, Commissioner, Stuart • Non P�ttenon, Yice Mayor, Sarasota • Rlchud Ci. Bashaw. Counatman, Fort Mysrs
' . Steven Abrams, Councilman. Boca Raton • SamuN J. FtmN. Mayor. Greenacres • John "JsH" Koons, Commissioner, West Palm Beach • Thomas Lynch, Mayor, Dslray
Beach • Alez FNcst�, Vice Mayor, Pembroke Pines • Sam Goldsmlth, Commissioner, CxonutCreek • Thomas Hasls, Commissioner. L'phthouse Pant • Joan Kovac, Vice Mapor,
Dav�e . Oan Psar1, Commissioner, Sunrise • 3andra Steen, Mayw, Wilton Marwrs • Joseph Gardner, Councilman, Bay Harbor Islands • John Kurzm�n, Vice Maya, North Ir6ami
Beach • Roy S. SMv�r, Commissioner, Fbnda City • 10 L+rpsst Cld�t: E Dsnlse Ls�, Councilperson, Jadcsonville • J. L Plumm�r, Jr.. Commissioner, Miami • Sandy W.
Froedman. Mayor. Tampa • Davld J. Flschsr, Mayor, St. Petersburq • Jullo Wrtlnu. Mayor, Hialeah • ShNdon B. Watson, Commiss�oner, Orlando • Jlm Nau�N, Mayor. Fat
Lauderdale • Dorothy Inman-Cnws, Mayor, Ta�lahassee • IMars GIuHaMI, Maya. Holtywood • Rka J. Qarwy, Mayor, Clearvrater • Put Pnsldsnt: Wllll�m A. Ewrs, Mayor.
R�ademon . FCCMA: Mlchesl J. Roberto. City Manaqer, North Miami Beach • Raymo�A C. Slrilp. Executive Director • Harry Rbrtison, Jr., Genera� Counsel
Andrew McMullian
September 29, 1993
Page Two
ft themselves, that they could nearly double your
benefits?" or perhaps,
"Are you aware that your city could save up to 50$ of
their taxpayers money spent for employee retirement by
withdrawing from FRS and still provide you with the same
benefits?"
Finally, due to the fear of the state that the opt-out,
estimated to cost less than 1� of the entire program, will
cause massive fiscal trauma, we have carefully comprised the
proposed legislation to apply only to new employees. Why in
the world would you wish to poll existing employees on a
program that would only affect future employees?
It is purely and simply a matter of equity. The State
"changed the rules" substantially after the cities got in
(with our recommendation) and then cranked in the judicial and
school actuarial shortfall to make a"unified" system and the
cities got it in the ear.
Any reasonable sense of justice would allow a city to
secure its retirement rights and obligations back from the
State for all its employees. And remember, retirement
programs and commensurate vested rights alonq with collective
bargaininq and the political and altruistic desires of the
city government will not jeopardize the current benefits of
current employees.
Had you had the courtesy to discuss these issues with us
prior to the mailinqs, we would have been quite accommodating.
We are today notifying all cities in FRS by copy of this
letter that if they choose to respond to your request, the
poll be conducted with the information as provided herein.
..
'ncerely, �
h^�
aym d C. Sittig
Executive Director
cc: Cities in the FRS
Honorable Matthew Meadows, Chair, Personnel, Retirement
and Collective Bargaininq Committee
Honorable Jim Davis, Chair, Employee and Manaqement
Relations Committee