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TO Howard V. Gary, September 7, 1982
City Manager
Agenda - Item #10
yRandolph B. Rosencrantz
-P-... p
Ass't. City Manager 1
Item #10 deals with increasing the amount the City is presently
subsidizing retirees. Presently, the City is subsidizing retirees
1/2 of 1% on the first $300 of their pension. This money comes
from the General Fund and has been paid for the last three or four
years. The cost to the City is approximately $300,000 per year.
Supplemental nayments such as these place the City between a rock
and a hard place. If we continue to make these payments each year,
then they become "institutionalized." If they become institution-
alized, then they should be placed on an actuarially sound basis.
Failure to do so causes two problems.
1. The State insists that such payments should -.be "funded and
2. On our official statement, such commitments are shown as
"unfunded liabilities."
Although we can continually state that these payments are of a
temporary nature, they very quickly become institutionalized if
they are continued more than two or three years.
RBR: to
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Mr. Edward K. Rawls
3021 N.W. 1 Street
Miami, 33125
(305) 649-4837
Auaust 6, 1982
Mr. Howard Gary
City Manager of Miami
P.O. Box 330708
Miami 33133
Dear Mr. Gary:
On behalf of the Retired City Employees of the City of Miami,
I would appreciate the opportunity of addressina the Miami
City Commission on September 9 regardina the l% increase of
the 1st $300. on our pension checks.
Also we would like to discuss our insurance program.
Would you please advise me at your earliest convenience
regarding my appearance.
Thanking you for your consideration.
I remain,
Sincerely your f�
i r�1001
Edward K. Rawls
President
City of Miami
Retired City Employees
cc: Mayor•Maurice A. Ferre
Miami City Commission
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CITY OF MIAMI ASSOCIATION OF RETIRED EMPLOYEES
3021 N. W. First Street
Miami, Florida 33125 Tel. No. 649-4837
August 18, 1982.
Honorable Howard V. Gary
City Manager, City of Miami
P. 0. Box 330708
Miami, Florida 33133
Re: Retired Employees Pension Benefits and Increase
Group Health Insurance Benefits Cost.
Dear Mr. Gary:
The retired employees request that an opportunity be granted to
them for a hearing before the City Commission in order that
additional monies be budgeted by the City to decrease the cost
of health insurance benefits for the retirees and their dependants.
Formerly the City contributed towards the death benefit, however,
this was terminated on June 22, 1978, predicated on an Amendment
to Section 112.0801 FS. This Section has now been repealed and
there is no prohibition in the Florida Statutes preventing the
cities from reinstating this payment or to increase the cities'
contribution towards the reduction of the premiums.
The Association further request that we be given an opportunity to
present to the Commission our request for an increase of 1% of
the first $300.00 of benefit paid to pension employees for a cost
of living increase. This is imperative as under the present
appropriation this benefit will stop October 1, 1982.
We recognize the City has budgetary problems, however, the tremendous
escalation of living cost and the recent increase in insurance cost
for those under 65 (over 60%) has made it impossible for some
employees to continue in the City•s insurance program.
The retired employees are in desparate need of assistance. We
urgently request that you place this matter on the City Commission
agenda of September 9th. We would appreciate an opportunity to
discuss this with you personally prior to the Commission meeting.
Your favorable consideration of our request will be appreciated.
EKR/fr
cc/Mayor Maurice Ferre
Vice Mayor Joe Carollo
Commissioners
J.L. Plummer, Jr.
Miller J. Dawkins
Demetrio Perez, Jr.
Margaret Kern, Secretary
Very truly yours,
Edward K. Rawls,
President
82-809