HomeMy WebLinkAboutPension Stabilization FR/SRA. Members may elect to transfer funds from their account in the Miami
Firefighters' Relief & Pension Fund (175) to the FIPO Trust to
purchase the allowed time described in Article 43.9. This provision
shall also be allowed for those members electing to participate in the
DROP plan (both forward and BACDROP). The pension ordinance
shall be modified to reflect this change_
B. The rollover of DROP funds into the Miami Firefighters' Relief &
Pension Fund (175) shall be allowed if rollovers of this type are
approved by the Miami Firefighters.' Relief & Pension Fund (175)
trustee board.
43.11. Pension Stabilization.
A. The Union and the City agree to pursue, the creation and implementation
of a funding plan for the FIPO retirement system. The goal of such
funding plan is the long term stabilization (no less than ten (10) years) of
the City's general fund contribution to thirty seven" (37)% or less of
pensionable payroll by September 30th of each year. If the City's
contribution is.less than 34%, the excess dollars should go to fund the
pension stabilization -fund until such time as the actuaries determine the
Pension Stabilization Fund is considered reasonably actuarially sound to
stabilize the .City's contribution for 10 years.
B. In addition, the City shall establish a manner to ensure that the
appropriate dedicated funds are reserved with the intent to stabilize the
-77-
City's annual pension contribution. It is agreed that these monies will be
in Trust with the sole purpose of stabilizing the City's annual pension
contributions.
C. If the City's actuary and the FIPO Board actuary agree that the goal is
met by the deadlines, as outlined below, then sections D, E, F or G below
will not apply_ If there is a dispute on whether or not the, goal was met in
a timely manner, the dispute shall be resolved by using the same method
as outlined in Article 43.12. However, the timeframes outlined in Article
43.12 shall be as follows:
1. If the City's actuary and the FIPO board's actuary cannot agree
within thirty (30) days they shall select an Independent Actuary_
2. if the parties are unable to select an Independent Actuary within
fifteen (15) days, the American Academy of Actuaries shall appoint
one. If any actuary selected is unacceptable to both parties due to
excessive expense, conflict, or other good cause, the above time
frames . shall be extended by fifteen (15) days to accommodate the
selection of another actuary.
3. It. is the intent of the parties to resolve this issue within three (3)
months of the first actuarial submission. The parties agree, the
actuary may allow either party for good cause to extend for another
thirty (30) days.
MIE
During the dispute resolution the parties agree that the appropriate
Section (D, E or F) shall be implemented as if the goal had not been
achieved in a timely manner. However, if the independent actuary rules
that the goal was met, as outlined in Section A, the members shall be
reimbursed by the City for any increased contributions or wage loss.
D. If this goal is not met by September 30, 2008, the Union agrees that their
Pension contribution shall increase by one (1)% to a total of no more than
eight (8)%.
E. If this goal is not met by September 30, 2009, the Union agrees that their
Pension contribution shall increase by one (1)% to a total of no more than
nine (9)%, and the Rule of 64, as outlined in 43.5(A), shall be changed to a
Rule of 68.
F. If this goal is not met by September 30, 2010, the Union agrees that their
Pension contribution shall increase by one (1)% to a total of no more than
ten (10)%, and the calculation of average final compensation shall be
changed from one (1) year to two (2) years
G. If the increase in pension contributions is determined to be in violation of
Chapter 175 FS, then the wages of the bargaining unit members shall be
reduced at the same time, manner, and amount as stated above, and no
increase in pension contributions shall be made.
43.12. Funding of Pension.
-79-