HomeMy WebLinkAboutExhibitAFSCME Local 1907 and City of Miami Negotiations
Union Proposal — August 15, 2022
ARTICLE 52
PENSION
52.1 The parties agree that for the term of this agreement the pension
benefits and employee contributions of employees covered by this agreement shall be
as provided in the City of Miami General Employees' and Sanitation Employees'
Retirement Trust Section 40-241 through 40-290, Miami City Code ("GESE"), as
amended except as follows
52.2 The parties agree that effective October 1, 2011, the GESE
amortization periods will be revised to add 5 years to the existing amortization
periods and change periods for future amortizations as follows:
A. Plan benefit changes for active employees over 20 years (currently 15).
B. Plan benefit changes for retired employees over 15 years (no change).
C. Assumption changes over 20 years (currently 15).
D. Experience Gains and Losses over 20 years (currently 15).
52.3 Effective upon ratification, member retirement allowance shall not
exceed the lesser of 100% of the member's average final compensation or an annual
allowance of $120,000 as of retirement or DROP entry based on the normal form of
benefit in effect on the date of retirement for members eligible to retire as of October
1, 2012; and effective October 1, 2022, member retirement allowance shall not exceed
i
1' u�
the lesser of 100% of the member's average final compensation or $100,000 as of
retirement or DROP entry based on the normal form of benefit in effect on the date
of retirement for members who were not eligible to retire as of October 1, 2012;
provided that any employee who has an accrued benefit in excess of these annual
allowance caps shall retain that benefit.
52.4 BACKDROP option. A backdrop benefit option shall be implemented
on January 1, 2013. The Backdrop option shall replace the existing DROP program.
Employees who have not attained normal retirement eligibility as of the effective date
or were not vested by October 1, 2010, and all employees hired on or after that date,
will be eligible for the Backdrop option, but will not be eligible for the DROP. Anyone
eligible for the forward DROP as of January 1, 2013, remains eligible for the forward
DROP as it presently exists and anyone eligible for the forward DROP as of January
1, 2013 or vested prior to October 1, 2010, who chooses not to enter the forward DROP
remains eligible for the Backdrop.
(a) An eligible employee who elects the Backdrop option shall receive a monthly
benefit payable on the employee's actual retirement date (date of retirement and
separation from City employment) based on the benefit the employee would have
received if he/she had left City employment and retired on an earlier date after
attaining normal retirement eligibility (the Backdrop date"). In addition, an eligible
employee who elects the Backdrop option will receive a lump sum payment equal to
the accumulation of monthly retirement benefit payments he/she would have received
during the period following the Backdrop date through the actual retirement date
(Backdrop period"), plus interest at the rate of 3% per year, compounded annually.
An eligible employee may elect a minimum Backdrop period of 1 year and maximum
Backdrop period of up to seven years. An eligible employee who elects the Backdrop
option must select the normal form of benefit or an optional form of benefit at the
time of electing the Backdrop option. The employee's monthly benefit as well as the
lump sum payment under the Backdrop option is based on the form of benefit
selected.
(b) Employees are eligible to elect the Backdrop option after completing one year of
creditable service following the normal retirement date. A Backdrop election must
be made within 10 years after becoming eligible for normal retirement. The maximum
Backdrop period is 7 years. Eligible employees who wish to elect the Backdrop option
must provide written notification to the City at least 8 months prior to the employee's
retirement date; provided a lesser notice period may be approved by the City Manager
due to special circumstances. Bargaining unit members will be eligible to revoke their
Backdrop election one time, but within 1 month of their election. However, if a
bargaining unit employee is granted a lesser notice period by the City Manager due
to special circumstances, the employee will not be eligible for the one-time Backdrop
election revocation. Employees are not required to elect the Backdrop option.
(c) All or a portion of the lump sum payment under the Backdrop option may be
rolled over to an eligible retirement plan or IRA in accordance with federal law.
52.5 The employee pension contribution shall be 10%.
IS)
--�. wrs/ Z2
If the back DROP is ever terminated, for any reason, the rights of all persons
then in the DROP shall not be diminished or impaired. Additionally, if the back
DROP is ever terminated, all persons who are then eligible for a back DROP will still
be eligible for a 7 year back DROP. The Board of Trustees of GESE shall develop
operational rules for the implementation of this provision.
52.6 The service retirement benefit for employees hired prior to October 1,
2010 shall be equal to three percent (3%) of the member's highest one year of
compensation multiplied by the number of years of creditable service. The service
retirement benefit shall be based on a member's total creditable service and the
benefit multiplier set forth in this provision (not the benefit multiplier in effect at the
time the service is earned), multiplied by average final compensation in effect at the
time of retirement or separation from employment.
52.7 Upon retirement, bargaining unit members shall receive a retroactive
salary increase of five percent (5%) for the bargaining unit member's highest one (1)
year's salary. The five percent (5%) salary increase shall be reflected in the hourly
pay rate for the purpose of calculating leave balance payoffs. The five percent (5%)
salary increase shall not be applicable to overtime.
52.8 For employees hired prior to October 1, 2010, effective September 30,
2020, a member who separates from employment with ten or more years of service
shall be considered eligible for a service retirement upon attaining the earliest of the
following: (a) age 55 with ten years of creditable service, or (b) the completion of a
combination of years of creditable service plus attained age equaling 70 points.
C8' 1 Is a3aa�
52.9 Effective September 19, 2022, notwithstanding any provisions to the contrary in
this Agreement, including 52.4, the maximum period of participation in the DROP shall be 84
months. The backdrop option shall not replace the DROP program. All bargaining unit employees
who attain normal retirement eligibility shall be eligible for the forward DROP as amended, and
any bargaining unit employee who chooses not to enter the forward DROP shall be eligible for the
backdrop.
Tentati 1.1y Agr:'-d to by:
AFSCME Local 1907
sl a -Da �---
City of Miami
2 Z2