Summary
To: Town Commission
From: Stefan Massol, Director of Support Services
Date: 9/17/2019
______________________________________________________________________
Subject:
Title
Update on FOP Negotiations and Pension Cost Scenarios
Summary:
Staff will provide a general update on the status of FOP negotiations
End
Body
Background/Problem Discussion: Staff has held multiple meetings with the Fraternal Order of Police representative and their attorney to develop a new three-year agreement between the union and the Town of Belleair. Negotiations had been temporarily delayed as the Town awaited actuarial analysis of various scenarios for future pension plan participants, however this past week the town received the analysis requested.
Changes considered include raising the minimum years for eligibility to ten years by removing the 55 and 5 option for new participants. Additionally, reduction of the percentage benefit accrual rate from 3.5% to 2.75% was studied, as well as increase of the member contribution rate from 6% to 10%. Because these changes would affect new members as existing members reach retirement, the Town's annual pension payment savings would be gradually realized over the coming years. Possible savings are listed below.
Other issues to be resolved in this upcoming contract will be a simplification of the calculation for shift differential as well as additional health insurance options for those officers requesting spouse or dependent health insurance coverage.
The Finance Board has not had a chance to review the scenarios, but will at their next regular meeting.
Financial Implications: Staff is reviewing the savings for each pension scenario in comparison to offerings by other departments so that the Town continues to recruit qualified officers while improving the sustainability of future pension costs.
2021
2022
2023
2024
2025
2026
2027
55 & 10 Normal Retirement
19,055
27,869
33,315
41,536
43,933
46,468
55,185
3% Benefit Accrual Rate
...
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