HomeMy WebLinkAboutDocumentation_Miscellaneous_Tab 05_10/20/1993 �
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LA\VfON CHII.E ti � `j� �� , , . IhDNER
DMSION OF RETIREMEI�T `� SF R}•
G(��'ERVOK '
Ccdars Executive Ccnter . Build�ng C•?639 North Monr« Sveet • Tallah �� F �„ �S ` 2
��;, '��F�s
September 15, 1993 /� �
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MEMORANDIIM
TO: All FRS City Managers
Li
FROM: A.J. McMullian II
State Retirement D'
SUBJECT: Aqency 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 compu].sory 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 f�rom 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 opportur►ity, 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 with8rawinq from the FRS, there is no
need to survey your employees. Please select item a. on the State-
ment of Intent, sign and return it to the Division. If you fail to
respond by January 1, 1994, it will be assumed that your City is not
interested in withdrawing from the FRS.
. �
e �
� ' . .
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. .
8tatemeat 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 withc�raw from the FRS if the Legislature
amends the statutes to allow a one-time election �or 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, ar
(904) 488-5706 for help with any questions you may have.
CC: Mayor of City Council
(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 th.e 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 emplopee 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. 2tems 2,
3, and 4 should be checked to indicate that you understand the effect
af your choice.
1. I 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 members are quaranteed 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
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
the 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.
(_j 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 �ity withdraws completely from the FRS for �
both current and 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:
DFI'.�IJiT1�1E;�T OF A'UWACE�IF'�T
SER��Z�CES
_ ,�
�,���u��cFii�F.s � DIV1S101�' OF RE'I'IREMENT �� 'iLl.(M7 H(.I�U�Ek
GOl'EE'.OF •
SECR�TAA�
Cedars E�rcuti��e Ccncer . Build:ng C.?639 North I�lonroe Svicet . Tallahassec, FL 323y9
March 17, 1993
Honorable Shirley Brown
Representative, 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
withdraw from the Florida Retirement System (FRS) effective January 1, 1994
for all nev employees, vith 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 Co�nmittee 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 follows:
o The Legislaiure will not pass any legislation a1loWing cities
. ' and/or hospitals to vithdraw from the FRS until more consider-
ation and study have been given to this proposal and informatian
is available to identify the cities and hospitals Lhat vill 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 vithdrawal. The cities and
hospitals desiring to withdrav from participation in the FRS must
advise the Legislature of their desire to withdraw and vhether
the employees agree or object to agency withdrawal. •
Honorabie `'�hitley Br�vn
MdCCh :7 . lU���
Page � '
It is m� understanding that the Senate intends to address this issue o_` cities
and hospitals withdrawing from the FRS once and for all in early committee
meetings that vill be held prior to the 1994 Legislative Session. Conse-
quently, the Division of Retirement vill 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 information
requested for consideration by the 1994 Legislature.
Please advise if you have further questions or we can be of assistance in any
vay.
Looking forvard to vorking vith you on this project in the coming months, I am
Sincerely,
G���� '"fi".`�`� �
ti
�/ 9"' -
A. J. McMullian III .
State Retirement•Director ,
AJM/na '�
cc: Honorable Betty Holzendorf
Honorable Jim Davis
Florids Nouse of Representatives - 1993 � B � 50 9 a
By Representetive Kerrigsn
1 A bill to be enLitled
2 An sot rel�tiny to the Florlds Retire�ent
3 Syate�) ��ending s. 121.051, F.S., relating to
4 optionsl partioipatlon for cities and speciel
• b distriotaj authorizing cities snd independent
6 speoial distrieta whioh have opted to �oin the
7 Florid• RetireMent Syste� to revoke their
8 elaotion to psrtioipete in order !o estsblish
� 9 •n slternative retire�ent plsn) providing for
10 publio heerinyj providing for publicsLion of
11 notioej providing for sn aotuarisl report;
12 providing for presentstion of !he plen snd
13 cepor! !o esoh oertifled bargsi�ing unitj
14 requiring negoti�iio�) providlny for ■doption
lb of s revooslion �esolution) providing
16 eonditions) providing for inerease of
17 retirement oontributions) providing sn
18 effeolive dste.
19
20 Be It Ensoted by the Legislsture of the State of Florida:
21
„ . 22 Seotion 1. Psrsgcaph tb) of s�bsection (2) of section
23 121.051� Florida Ststutes� 1992 5vpple�ent, is smended to
24 reedt
' 26 121.051 Psrtiolp�tion in the system.--
- 26 (2) OPTIONAL PARTICIPATION.--
� 27 (b)1. The governing body of any ciLy oc specisl
26 diitriot 1n tha st�te �nsy eleot to p�rtielpste in the syste�
29 upon proper �pp11e�llon to !ha •d�ainistr�tor •nd w�y oover �11
• 30 or any of its units sa spproved by the Seoretsry of Heslth •nd
31 Humsn Servicas •nd !he sd�ninistr�tor.
1
CODING: Oeletlons sre CtPLOI�YMj sddittons •re underllned �
•� HB 1509 Florid� Housa of Representstives - 1993 ��u •��'
Florld• House of Rep�esent�tives - 1993
` b26-102-1-3
526-102-1-3
1 2. Any city or apeoi�l dlstriot th�t h�s •n eKisting 1 ,
2 retfrewe�t systew covering the ewployees !n the units whloh 2 Thi• publio�tion w�s produoed •t ■n wvse�g• oost of 1.12 aents
pac sinyla p�ge in oo�pli�nae with tha Rules •nJ for
3•ra to be brought u�der tha Florid• Reti�awent Systew ��Y 3 tha Seforw�tion of �s�bars of tha Lagi�l�tub� �nd th� publio.
4 p�rtlofpote only •fter holding • referendu� S� whlah �11 4 /
5 ewployees ln the •ffeoted units h�ve the �lght to p�rtiolp�ta. . 6 `
6 Only those ewployees aleoting oover�ge under the Flocld� 6
7 Re!lre�ent Systew by •ffirw�tive vote !n s�ld referandu� sh�ll �
S b� �llylbla for oov�r�y• u�d�r �h1s oh�ptar� •nd thosa not 8
9 p�rticip�tiny or el�atiny noL to be ooversd by tha Florid• 9
10 Retlr��ent Syste� sh�ll rew�in in thalr present sysLaws •nd 10 -
I1 sh�ll noc ba ellgibla for oovsr�ga undae this oh�ptar. After 11
12 s�id referandu■ ls held, �11 future ewployaas sti�ll be 12
13 ao�pulsory we�bers of the Flocid� R�tirew�nt Syst��. 13
14 3. Ttie poverning body oE �ny oity oe speoi�l distriot � 14
lb oo�plying with subp�r�gr�ph l. w�y eleot to peovlda, or not 6
16 provlde, beneflt■ b�sed on p�st servioe of offloer• �nd 16
17 ewployees �s dascribed in s. 121.081(1). Howev�e� if suah 17 �
IS •�ployar al�ets to provlde p�st servSaa banefits, suoh 18
19 bsneffts sh�ll be provlded for •11 offloers �nd swployees of 19
20 lts coveced yroup. 20
Z1 4. Once thls eleation is w�de •nd �pprovad lt w�y not 21
22 be revoked, �Yeeet oursu�nt to avbe�caar�pha b �nd 6. •nd •11 ZZ • .
23 prasen! offlcars ■nd awployaas aleoting aove��ga under this 23
24 oh�pler �nd •11 futura offloars �nd ewployaes sh�ll be 24
25 cowpulsory wewbers of the Florid■ Ratire�ant Systa�. 26
26 � Sub�act to ths oond!*lons sat forth !n aubo�r�ar�ah 26
27 � •�e aovernlna bodv of �•��*•• •���►. dlstriot �a 2 �
2B aefined in s 121 021(9) whloh h�s eleatad to o�rtioin�ta in 28
29 .� c. e�rsy�nt to this p■r�ar�nh ��v ravoke its elaotion �
30
•� �+ in tha systa� in �000rd�noe Mith tha folloeioq 30
31
31 prooedvre: �
2
CODING: Oeletions �re atrl�k��) �dditions �r� unda_rllned. CODINGs Daletlons •re ot�lok��1 �dditions sra underlined.
.
Florid� Houia of Represent�liveo - 1993 HB 1609 Floclda Nouse of Representetives - 1993 H8 1509 ,
626-102-1-3 626-102-1-3
l sffiae to formallv �nske �uoh el�etien in writinn. Ona�_thi• 1 a No a+a�e than 30 dava �nd at leeai 7 daya bafoca
2 elaotion is msda !t n+av noL be ravoked. 2 �•' �*i to cevoka election to perticiaeta ln �ha
3 jV Anv emolovee or otfloec f�ilina to ti�aaly s�ka 3 Fi i'a rte�ic@mBn' ° "G�am :.-� �. •° �°••� "'� •^ ■1lern�tive
4���ah nlaotion shall ba enrolled !n the loo�l ol�n. In suoh 4 •' •� ��{� heaclna shall ba hald on the
b o�ses enrolln�ent in the looal dlan shwll b��in�l �nd bindinn ' b pronomed revoo�tion •nd aroaosed alternetive al�n.
6 50 o�land�r d�vs followlnsf amnloy�nent or_�pwaation of offloe. 6 � From 7 to 15 d�va arioc to such heerina. notice of
7 Seotion 2. To fund the orovisions of this �ot. tha 7.tntant �o revoke aaeaif�ina the time end vl�ce of the
8 resaeo4ive neroentena oontrib rates snnlioabls to g�,srina sl�ell be arovlded in writlna to emalavees snd
• 9 e�nloyer■ of a�an�bar• of tha re�aular and saeoi�l risk olasie■ 9 offioers of the oity or Spl6�01 distrlat proaosl�a ravocation
10 of tha F1or1d■ Ratirement Svstan+ on Jenu�rsr 1, 1996. ■nd on 10 •nd shsll be aublished !n A 11lMS4pSPEC af senerel clrauletlon
11 Jwnu�rv 1. 1996._ sh�ll asoh ba inora�sed bv .03 aaraant. ■nd 11 '•'-- -- -ss..,�..+_ .. n�nvld� bv ss 50 011-50 031. Pcaof
12 j,�� re�peotive oontrlbution rele■ �oalio�bla to a�nnloyara of 12 of nublio��ion of •uoh notioe sh�ll be sub�nitted to the
1� �ne�nbers of bha �eaoi�l risk •dminL lr�tiva_suanor! eLa■ an 13 Dlv Llon of Ratirament.
1$ 3�n�rrv 1. 199b, ■nd on J�nu�rv 1. 1996. sh�ll a�oh b� 14 o The oovernina bodv of anv oitv or saeol�l dlstriot
16 Snora��ed bv 02 naroen! Said inore�aas sh�ll b� ln •dditlon lb �eklnn to revoka ita eleotion to aarLiolag�e !n the svate�
16 j�q •11 othar oh�naea to suoh oontrlbutiQR r�te• whioh �nay ba 16 •h�ll orior Lo suoh revooation, h�ve sn �ctua�irl reoort
17 4p�otad into l�w to L�ke effao� on ■�id data. 17 araa�r�d •nd oartified b� an enrolled �etvary �s deflned in
18 Seotion 3. Thls sot shell tska affeot upon baooming • 16 11 625(3) illustrstina the eost to the citv o� saeoi�l
19 l�w. 19 disEriot of aro�ldlno throuah the retlrament al�n MhS.ch the
20 20 �itv or saeoial distri�ct ia to adoat benafits for new
Zi ::xx�c�t�c:xt��c*x�r:�ttx�rxYSx�c�c�::�cx�c�rx�c�xtx�c 21 amnlo�aes oomoarable to those arovlded under the Florld•
2Q HOUSE SUNMARY 22 ReLireman! System as reaulred bv sub-subaeraaceah 6.�. The
23 Rsvises provision� of tha Floride Raticem�nt Systa�+ to 23 �� �-•�+ •��•��•*�°• °��^ "^d reaoct shell bs aresenied to
�uthorize oitiea •nd independsht apeoisl dislriots whioh
24 h�va optad to ,�oin tha system to revoke tb�ir al�otlon to � 24 g� *�fied bera�lnlna unit arioc to sdoatl�on of a
p�rtioipate in order to establish sn elternetiva
2b reticement plsn. Provides for publio he�rings notioe 26 revoostion reaolution under sub-subaeraaraoh e.
�n satusciel report, end for ths preaentation of tha p��n
26 •nd report to eaoh oartified bergsininp unit. Sae bill 26 a No oitv or saeaial d�strlet whlch hes a colleative
for deteils.
27 27 6...-�.i.,i�e �er�Qment wlth a aerLif,led becaeinlna aaent w�v
2g 28 exeroiae the ciaht of revocation of the membershia of the
29 29 ooverad olasa xithin the uni0 wlthout neaotistina such
30 30 revooetlon and aroaosesd altarn�tiva plan as arovlded bs
31 31 ohaa er 447 with tha affeoted baraainina unit If more th�n
6 3
CODINGt Deletions ere •4v1ak�N� sdditiona ■re underllnad. CODING: Oalationa •re �tvlok�wi additions ere underlined.
�
s•lorld� House of Represrn�attves - 1993 HB-1509 Florid• Housa of Rapresentatives - 1993 HB 1509
526-102-1-3 526-102-1-3
'� � b�ra�inina unit exists each unit shall•indeue�dentiv 1 distriot, the svstem. ■nd the�mnlovees and offlcers shala.
2 eeaotirte. 2=___`-= '-- `°''-'- `"-' °" '��'^'- Exaeat ss orovided in aub-
3 Q. Uaon meetina the reauiren�ents set forth in sub- 3 °"� " '� emplovees and offl�aera who are hired or
'� SY DpwCiOCpDF15 a d as avplicable end sub�eat to the 4+.ake off�oe on or after Janusrv 1�, 1995,_lnav be aartioiosnts
S a+•'�ns set farth in SYbP@CACCAPII G revocatio� of , 6 in tha Florid• Retirement Svstem and tha revokina aity or
6 eleetion to asrticiaete in the svstem and adontion of the 6 g�ge�iwl distriot shrll hrve no obliaation to the svstem Nith
7��,lrewent plan as arovided under sub suba*r�arpah o s�all 7 resneot to cunh e�nnlosreas and offiaers.
B be •ccon�alished by resoluLion dulv sdoated bv the city or 8 Q, Nith rasnaot t�,�ny emolo.y�a hired or elinibin
9 saeei�l distriet The eitv or saecial district sh�ll nrovide 9 g�ficer elnoted or �pnointad on or ptter January 1 1996, who
.0 wri ten notice oi s�ch revocation to the division bv �aiii�� a 10 Ln his most raoent arevious a�blio emalovmant or nublio offioe
ll ppS' of he resolution to the division nostmarked no later 11 ber of thn Florida Reticemon! Svstem the revokina
:2 •� ^ e�nber 15 1994 The revocation shall take effect 12 oitv or soeoiol distriot shali offer eaoh suoh emplovee or
:3 J�nwr� 1, 1995. � 13 offioar the oation to aleat to partfoiaate in dither thn local
l4 6 � A citv or saecial district khich revokes its 14 *�� ��^� s�stew or the Florida Retiremant Svatem Pursuant
.5 p2rticia� ion in the Florida Retirement Svstem ahwll nrovide 5 thecetot
i6 defined benefits �o its emalovees and officers Nhich_are 16 I. Any eli�ible emnloysa or affioer oatina to eleat
17 oea�r�ble to those arovided bv the Florida Retiremant System. 17 aar iola�tion in-the Florid' Retirement Svstem shsll maka suoh
19 "�owa�r�ble benefi0s," �s used in thls section. mesns the 18 elaotion in writinsf within 60 oolendar davs aftec the dete of
19 �don 1on of � al�n in �ccordance with ch�wter 185 for oolioe 19 aQ�nmenoen�ent o4 e�nnlovman� or •ssumntion of offioa. Suoh
�0 offieers rnd sdoation of a alan in acoordance with ohaater 17b 20 9]9ation sh�ll be filed with the Division of Retlremant_snd
21 foc fireflahters Nothina ahall preclude a oc caeoi�l 21 wheca aporopriwta with tha looal aersonne_a o_ff_ioer. Onoe
22 �,istrict from establishina a defined contributlon alan Mith 22 this eleotion is �nade. it�mav not be cevoked.
�3 protected benefits comasrable to those orovid�d ►rithin the 23 II If �n eliaible emalovee oc offiaer timely eleata
�4 Florids Retirement SvsteT 24 � •�oioetn in the Florlda Ratirement Svste�n. the emnlover
25 b Followina the �doation of s revocetion Eesolution 2b ' 11 anroll the amalovea or offiaer in the systa�n ratrosetive
26 undec_tub-s ubp�c�crsah 5.e., sll emp�ovees �nd offiears of the 26 *� the first ds� of emolovmnnt oc aasumt►tion of offioe and
27 it� or saecirl dist�iot who Nere p�rtlel,nsnts Sn tha Florid• 27 g�,�l s�bmit to the Division of Retirement the reauired
Z g o.• • c�c.. e�io� to January 1 194�• shell re��in •a 28 retirenent oontrib�tions.
29 e�rL1ola�nts in the s�tstem for es lona �s thev era en+alovees 9 - IIZ. Anv elioibla e-_?o�-ee =r ^-f��Qer ootina to eleot
30 oeriioiow�ion in the loc�l al�n ah�?1 tia�e 60 cslendar daya
...�e� a� -
30 or offi cers of the citv oc �^ striot, •nd •11 rl�hts,
31 �+ ties. �nd obllcat�,ons betNeen the oitst, the saeoi�l 31 gf_l.�: the d�te of oommanoemant of emplosrment or aesumatioe_o_f_
5
4
CODING: Deletions •re ssvioka�i �ddltions •re underlinad. CODINOt Oeletions �re 4lnlak�wj •dd�tions •re unde�llned.
a
� President Flonda League of Cities, Inc.
„ Ilene Lieberman � 20� West Park Avenue
Mayor, Lauderhill ='� Post Office Box � 757
Tallahassee, FL 32302-1757
F�rst Vice Pres/deni
Telephone (904) 222-9684
Clarence Anthon .. � Suncom 278-533t
Y $ �X (904) 222-3806
Mayor, South Bay �FIDRIDAIFACIIEOFCl1'[FS � �.
�
�—� ��
Second Vice Presldent - = - - _ _ _ _ _ _ _ _ _ � � � �
Larry Schultz � -- _ _ — � - o �
Councilman, Rockledge — ��� j,
Z� �,��� 9� �'
� �� f .
September 29, 1993 0��, �
�t;,1 �1�
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 participating 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 qoverning body of the city. They may
take into consideration the desires of the employees alonq
with all the other obliqations they enjoy as representatives
of the taxpayers. In some instances, they may have aqreed to
such benefits through the collective barqaining 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 inforn�ed
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 funding an
actuarial debit that neither you or your city had
anything at all to do with creating?" or, perhaps,
"Are you aware that if.your city took the contributio�
they are makinq for FRS for your retirement, and managed
At-Large:ErieSmith,Cour�cilman,Jadcsonviile • AlexanderPenelsa.Commissioner,Metro-DadeCourriy • (iereldThompso�,Commi�imrer,BrowaMCourriy • BarbaraSheen
Todd. Commissioner, Pirrellas Courriy • Robert E TutUa, Commissioner, Voluaa CouMy • Olstrld Dirocfon: Richard Gape, Councilman, Cinco Bayou • Robsrt F. 8emard,
Commissioner. Panama City • Glenel Bowden, Counciiman, Lake City . Georpe E Musson. Mayor, New Srtryma Beach • John 4 Smart, Mayror, Lake Helen • Wllllam Copeland..
Caurtalman. Archer • Paula NL Del,ansy, Commissioner, Gain�ville • John Lsnd, Mayor. Apopka . Bettye D. Smith. Mayor, Seniord • Joaeph Greco. Council Chairman, Tampa
• Frank R. Satchel. Jr., Mayar, Muiberty • Holland G. Mangum, Mayor, Semirrole . wane►sa,a� Mayor, T►easure Island • Rocky i�els, Counalman, Cape Canaveral . Flskn
Ludwi�.Cour�ilperson. West Melboume • Kevin I�nderaon. Commissiorrer. Swart • Nors Petterson. Vice Mayor, Saraso� • Rlahard G. Bashaw. Counalman. FoR Myers
' • Ste�ren Abran�. Councilman. Baca Raton • Samuel J. Ferrori, Mayor. Greenacres • John "Jaff" Koons. Comrttissioner. West Palm Beach • Thamaa Lynch. Mayor. Defray
Beach . Atax Felcete, �ce Mayor, Pembroke Pines • Sam Goldsmith. Commissioner, Coc:onut Creek • Thomas Hasb. Commissioner, LighUrouse Point • Joan Kovac, V�e Mayor,
Davie • Dan P�rl. Commissioner, Sunrise • Sandre Stesn, Mayor, �Iton Marrors . Jassph Gerdnsr, Councilman, Bay Harbor Islands . John Kur�nan, Vice Mayor. North Miami
Beach • Roy S. Shiver, Commissioner, Florida City • 10 Large�t Cldea: E Denlae Les, Councilperson. Jadcsornille . J. L Plummn, Jr., Commissioner, Miami • Ssndy W.
Freedman, Mayor, Tampa • David J. Flsctror, Mayor. St. Petersburg • Julio Martlnsz, Mayor, Hialeah • Sh�ldon B. Watson. Commissione►, Orlando • Jim Neugls, Mayor, Fort
Lauderdate • Dorothy Inmen-Crews, Mayor, Tallaha�see . Mare Gtullentl, Mayor, Hollywood • Fdta J. ti�nny. Mayor, Clearwater • Past Proaldsnt: Wllliam A. Evers, Mayor.
Braderrton • FCCMA: Mlchael J. Roberto, Cky Manager, Nor� Miami 8each . Rayrtwnd C. SItNp, Enecutive Director • Harry Morrieon, Jr.. Genaral Caunsel
r
. '
Andrew McMullian
September 29, 1993
Page Two
it 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 e:aployees?
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 obliqations back from the
State for all its employees. And remember, retirement
programs and commensurate vested rights along 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 mailings, 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
� ` �tf�T IIf �888j�PY't�1 � � �'`�.,
• \\ � ,L�.
tn�coRVOanreo �9ao 6' �//� . , �,�.
95 TRIPLET LAKE DRIVE `� ; CF' �
CASSELBERRY,FLORiDA3270 S � �'C� QUFSj,4F �-�
CITYCOMMt55ION v�, • J ` 4 �t� ONE 263-390A
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October S, 1993
Thotnas G. Bradford
City Manager
VII.LAGE OF TEQUESTA
P.O. Box 3273
Tequesta, FI. 33469-3273 �
Dear Mr. Bradford:
As indicated in my previous communication to you, attached is a Cost Sharing Agreement Lo
form a consortium of cities to research the "Opt Out for new Employees". Casselberry a,cted
. to approve Monday, September 27, 1993. As soon as we receive agreements and checks from
six other cities we will activate the procedures as set out in the agreement. On a r+elated matter,
the Florida Division of Retirement recentiy sent out a survey to cities involved in the State
Retirement System. It is probably in our best interest to present a united, uniform response to
them before the January deadline. This may also ne� extra coordination wluch will likely be
discussed at the League meeting in November and in League communications.
We look forward to your response and participation.
Sincerely, ,
� Jo . Hillebrandt
11�a or-Commissioner
JMH/emj ,
Attachment: Cost Sharing Agreement
� � RESOLUTION 779
"A RrSOLUTION OF TIiE CITY Or CASS�LB�RRY, rLORIDA,
APPROVIh'G CITY Or CASSELBERRY PARTICIPATION IN A COST
SH:�ItII�'G AGREENIEtiT RELATII�'G TO "OPT' OUT I�OR N��V
E�'�LPLOYEES" FRO�i THE FLORIDA RETIlZEMENT SYSTEI�i;
PROVIDING FOR COi��FLIC'fS, SEVERABILITY, AND AN EFFCCTIVE
DATE."
'�'4'HEREAS,it is in the best interest of cities in the FRS to "opt out" all new city
employees from the FRS which would allow cities to provide retirement benefits to new city
employees through better and less expensive private independent retirement programs.
I`TOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF CASSELBERRY, FLORIDA AS FOLLOWS:
SECTION ONE. Cost Sharing Agreement, affixed as Attachment A, is hereby apgroved
and Joseph M. Hillebrandt as Mayor-Commissioner is authorized to effect said agreement.
SECTION TWO. Casselberry Finance Department is authorized to establish and operate
an Escrow Account in accord with the agreement provisions.
SECTION THREE. A transfer of funds in the amount of $5,000 is authorized from the
Legal Department Budget to effect provisions of this agreement at such time as the City of
Casselberry receives agreements and checks from six other Florida cities, as stipulated in the �
agreement. The City Manager shall report such transfer to the Commission upon its occurrence.
SECTION FOUR. nfli . All Resolutions or parts of Resolutions in conflict with
any of the provisions of this Resolution are hereby repealed.
SECTION FIVE. ev rabili . If any Section or portion of a Section of this Resolution
proves to be invalid, unlawful, or unconstitutional, it shall not be held to invalidate or impair
the validity, force, or effect of any other Section or part af this Resolution.
SECTION SL�. Effective Date. This Resolution shall become effecrive immediately
upon its passage and adoption.
PASSED AND ADOPTED this � day of , A.D. I993.
.� ,� �/.�� . �� '
� -
. sepr� M. Hillebrandt
ATTFST: Mayor/Commissioner
����Z�Yih�-t �G
Thelma McPherson � �
City Clerk � ,
COST SHARING AGREEMENT
sssssssssssssssssss�ss*s�sssss
� THIS AGREEMENT, Made and entered into by and between the undersigned
parties, hereinafter referred to as the Initial Organizing Group ("IOG"} .
WITNSSSSTH:
WHBRBAS, at the time cities joined the Florida Retirement System, hereinafter
� referred to as the "FRS," the FAS provided for established benefits to city
employees with a cost of .four percent (4$) of salary to the local taxpayers and four
percent (4�) of salary to the regular city employee and a cost of six percent (6$) of
salary to the local taxpayers and six percent {6�) of salary to the special risk city
employee; and
WHBREAS, on January 1, 1975, the Florida Legislature amended the FRS from
a contributory plan to a noncontributory plan and mandated that local taxpayers pay
the total contribution to the FItS at a cost of nine percent (9$) of regular city
employees salary and thirteen percent (13$} of special risk city employees salary;
and .
� WHEREAS, the Florida Legislature has since increased the local taxpayer's
total contribution to the F1tS from four percent (4$) to a present contribution by
local taxpayers of seventeea and twenty-seven hundredths percent (1?.27$) of
regular city employees salary; and �
WI�BRSAS, the Florida Legislature has since increased the local taxpayer's
total contribution to the FR.S from six percent (6�) to a present contri'bution by local
taxpayers of twenty-seven and fourteen hundredths percent (27.14�) of special risk
city employees salary; and
.
WHEREAS, the Florida Legislature has also eliminated the employee waiting
period of four (4) months that allowed cities to avoid paying contributions to the FRS
on short-term employees; and
WHLRBAS, the Florida Legislature has also eliminated any return of local
taxpayer contributions for city employees who terminated their employment with the
city before becoming eligible for receiving benefits from the FRS with the State
keeping all local taxpayer contributions; and
WHgRBAS, it is in the best interest of cities in the FRS to "opt out" all new
city employees from the FRS which would allow cities to provide retirement benefits
to new city employees through better and less expensive private independent
retirement programs; and
WHSRBAS, the parties to this Agreement desire to provide an arrangement for
and funding of legal research in an effort to evaluate the potential for local
governments to "opt out" new employees from the Florida Retirement System.
NOiV THBRBFORB, FOR AND IN CONSIDBRATION OF THS FORBCAING AND
THg 1LUTUAL COVSNANTS AND PROI[ISSS CONTAINBD HBRSIN, the unders3gned
parties hereby agree as follows:
1. Upon execution of this Agreement, IOG agrees to devise a plan that is
acceptable to each of them to determine whether and how cities may "opi out" new
employees from the FRS.
2. IOG hereby agrees to retain qualified legal counsel for the purpose of
� resear►ching and possibly litigating the issue of whether and how cities may "opt out"
new employees from the FRS. Proposals for this work shall be solicited from
� 5 llgreeo�nt
qualified attorneys for receipt by IOG no later than November 1, 1993 , and IOG shall
meet and by majority vote agree upon legal counsel no later than November 30, 1993.
3. To ensure adequate funding to retain legal counsel, to fund legal
research, and to defray necessary administrative expenses by no later than
. November 1, 1993, each party shall deliver to Joseph M. Hillebrandt, hiayor of the
City of Casselberry, Florida, 95 Triplet Lake Drive, Casselberry, Florida, 32707,
a check made payable to the City of Casselberry Escrow Account in the amount of
FIVE THOUSAND DOLLARS (�5,000.00) . Thereafter, if additional work is required
and approved in writing by all parties, each party shall deliver to Joseph M.
Hillebrandt, Mayor of the City of Casselberry, Florida, 95 Triplet Lake Drive,
Casselberry, Florida, 32707, checks made payable to the City of Casselberry Escrow
Account in such amounts as are consistent with that party's pro rata share of said
costs in accordance with the terms and conditions of the formal Agreement to be
entered into between the parties hereto and the legal counsel in a form acceptable to
all parties. Such funds shall then be used to defray necessary incidental
administrative expenses . e with the terms and conditions of IOG's formal Agreement
vrrith legal counsel. The City of Casselberry will deliver to the parties a monthly
prog�ress report on the legal counsel's progress, all transactions, and the status of
the Escrow Account with respect to this matter. The City of Casselberry vvill
promptly transmit to each party copies of all bills received from legal c�unsel e.nd for
payment of necessary incidental administrative expenses .
4. All drafts of any legal memoranda, reports, briefs, or any letters by
legal counsel and the IOG concerning this issue shall be submitted to each party for
review and return comments . Each party shall then provide all parties with their
f 5 Agre�ent
9e
• „
written return comments to said drafts within ten (10) days after the date such
documents are received .
5, All parties shall be provided with oral or written notice of all
communications, either oral or written, to be initiated by any party hereto with the
legal counsel retained by the parties and IOG.
g, Upon termination of this Agreement, the City of Casselberry shall pay
all outstanding bills of legal counsel for work performed up to the time of the
termination of this Agreement, and the Agreement with legal counsel shall be
terminated. Any sums remaining in the City of Casselberry Escrow Account paid by
IOG pursuant to this Agreement shall then be refunded to the parties on a pro rata
basis in accordance with their contributions . Nothing in this Agreement shall
prevent any party from proceeding to utilize legal counsel for further work following
the termination of tlzis Agreement as provided above .
7, All information generated by, and all of the written and oral -
�ommunications among or between the parties with respect to this Agreement, or the
legal reseaY'ch conducted, are intended to be work product in anticipation of
litigation. Such information shall be confidential and privileged to the fullest extent
. ,permitted by law. The part3es understand that at the conclusion of any litigation or
settlement, the information obtained as a result of tbis cooperative effort will become
public record and agree to protect the records in accordance with the requirements
of Chapter 119, Floride Statutes.
8. This Agreement supersedes any and all oral or written agreements and
. understanding heretofore made relating to the subject matter hereof and contains the
entire agreement of IOG relating to the subject �►tter hereof . This Agreement may
�t �ari rg llgreement
�
be amended or modified only by a writing executed by each party hereto. This �
Agreement can be executed in any number of counterparts and by separate signature :
;
pages, each of which shall be deemed ta be an original as against any party whose
r
signature is affixed thereon, and which, when attached together and containing the j
i
signatures of all of the parties of this Agreement, shall be deemed to be a dul� i
executed and finalized Agreement . i
;
9. This Agreement shall terminate on November 1, 1994. �
�
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed on their behalf by their respective representatives, each such
representative having been first duly suthorized so to act, this � day of
�
�„ „t�.: � , A. D. 1993.
CITY O� , FLORIDA
By.r . ! �, - �j - /r
Titl .. ;:. •
�
ATT T •
V ���
ltle : (. •
Cost Shari ng Ayreemerit
paqe 5