HomeMy WebLinkAboutExhibit 1MEMORANDUM OF UNDERSTANDING
Between the City of Miami, Florida and the International Association of Fire Fighters,
Local 587
Pertaining to Article 43.11— Pension Stabilization
Collective Bargaining Agreement (2007-2010)
Tliis Memorandum of Understanding is entered into this /o7 '11/day of
ep$r/L. , 2008 between the City of Miami, Florida ("City") and the
International Association of Fire Fighters, Local 587 ("IAFF") (jointly "the Parties") to
amend the 2007-2010 Collective -Bargaining -Agreement ("CBA") as follows:
ARTICLE 43, Section 43.11- Pension Stabilization
WHEREAS, Article 43, Section 43.11 (Pension Stabilization), states:
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 Iess 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 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.
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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)%.
B. 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.
NOWTHEREFORE, the Parties agree to amend Article 43, Section 43.11 of the
CBA by extending the specific deadline of September 30, 2008 for 180 days (March 29,
2009), upon ratification by the Parties.
Pedro G. Hernandez
City Manager/Chief Administrator
City of Miami
obert Suarez, President
IAFF, Local 587
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