|
Agenda Item: 14(A) |
Prepared By: Chris Byrne, Fire-Rescue Chief |
|
Business: Ordinance - Second Reading |
Department: Fire Rescue Department |
Subject:
Title
Ordinance - Second Reading - Amending Chapter 22 “Fire Prevention and Protection,” Article III “Firefighters’ Pension Plan,” in Accordance with the Collective Bargaining Agreement between the City and the International Association of Fire Fighters Local No. 2887 for the Period October 1, 2021 through September 30, 2025; By Amending Section 22-57 “Benefit Amounts and Eligibility,” Section 22-73 “Retiree Health Insurance Subsidy,” and Section 22-74 “Deferred Retirement Option Plan (DROP)” - Chris Byrne, Fire-Rescue Chief, Fire-Rescue Department
Body
BACKGROUND:
The City maintains a defined benefit pension plan for its firefighters, which is known as the City of Marco Island Firefighters' Pension Plan (the “Plan”), and which is codified in Chapter 22 of the City’s Code of Ordinances. The City and the International Association of Fire Fighters Local No. 2887 collectively bargained certain changes to the Plan in the 2021-2025 Collective Bargaining Agreement, and in accordance with statutory law, the Code must be amended to conform with said changes. These changes include (1) reducing the normal retirement vesting period from ten years to eight years for those hired on or after July 1, 2022; (2) increasing the retiree health insurance monthly subsidy to $7.50 per month for each year of service, resulting in a maximum of $225 per month. The present benefit is based on $3.50 per month for each year of service, with a maximum of $90 per month; and (3) an increase in the DROP participation period from five to eight years. These changes reflect the parties' agreement that the Plan’s benefits would be equal to or better than those provided under the Florida Retirement System (“FRS”), Special Risk class.
This Ordinance amends the Code to effectuate the various proposed changes to the Plan and has been reviewed by the City Attorney and forwarded to the Plan’s general counsel.
FUNDING SOURCE / FISCAL IMPACT: Impact occurs during FY 2025/26 and will be budgeted accordingly. Estimated difference is $16,430, a 0.38% increase.
PUBLIC NOTICE REQUIREMENTS: 10 days prior to second reading.
NOTICE APPEARANCE DATE(S): Notice published on April 9, 2025, for the April 21, 2025, Second Reading. Note, a business impact estimate is not required if the Ordinance is required to implement a contract/agreement.
RECOMMENDATION: Approve Ordinance 25-03 on second reading
POTENTIAL MOTION: “Move to approve Ordinance 25-03 on second reading.”