HomeMy WebLinkAboutLETTER SRConc0 t S Managcmcnt Advisors
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September 3, 2009
Mr. Pedro G. Hernandez
City Manager
City of Miami
3500 Pan American Drive
Miami, Florida 33133-5595
Dear Mr. Hernandez:
FIPO CONTRIBUTION STABILIZATION
The collective bargaining agreements (CBAs) entered into in 2007 requires that the City
reach contribution stabilization of not greater than 37% of covered payroll for not less
than 10 years; and if that goal is not achieved, then the contingent provisions of the
CBAs would apply (including increased contributions for the firefighter employees and
contract reopener on pensions for police).
Recent adverse investment experience has made it apparent that the FIPO system is not
currently "stable," as defined by the provision of the collective bargaining agreement.
In addition, it is highly unlikely that the City will be able to obtain a "not greater than
37% of covered payroll" contribution in the foreseeable future.
Therefore, given that FIPO is not "stable" as of September 30, 2009, in accordance with
Article 43.11.E of the collective bargaining agreement, the City should now apply the
applicable adjustments to member contributions and normal retirement eligibility
conditions effective October 1, 2009.
Sincerely,
emtita,t -zk d
Michael J. Tierney
30`20 NarUcy Wt. 6uite 250. Jeci~soa mie, n 32232
Vhc a= (904) 262-5020, Y= (904) 26a.3374
Z -veil: ae@eetusrialcoacepts.com