Placement: New Business
Action Requested: Motion / Vote
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Approval of Increase to Retirement Plan Contribution for Non-Bargaining Unit Civilian Personnel
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Submitted By: Kristina Ciuperger, Human Resources
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): Request for approval from the City Council to increase the City’s contribution to the retirement plan for non-bargaining unit civilian personnel from 11.4% to 12% and to approve an increase in the mandatory employee contribution from 1% to 3%, to become effective as of the second pay date in September; to wit: September 17, 2021.
Presentation Information: Staff and Mr. Daniel Kleman will be available to answer any questions the Council may have.
Staff Recommendation: Move that the Council approve the requested increase.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the requested increase.
2. Move that the Council deny the recommendation and provide staff direction.
Background: During negotiations, the civilian bargaining units were interested in joining the Florida Retirement System (“FRS”) and declined an increase to the City’s retirement plan contribution and a corresponding increase to the mandatory contribution of bargaining unit employees. Many retirement professionals believe that a minimum of 15% of salary should be contributed to retirement savings to ensure retirement security. After negotiations, staff held several focus groups and meetings with non-bargaining unit civilian personnel to discuss, and ascertain the employees’ amenability to, implementation of an increase in the City’s retirement plan contribution from 11.4% to 12% and the corresponding increase in the mandatory employee contribution from 1% to 3%. Positive feedback was received from the various focus groups in support of the increased contribution.
Issues/Analysis: As the response from the focus groups was overwhelmingly positive, staff is proposing that the City’s contribution to the retirement plans of non-bargaining unit civilian personnel be increased from 11.4% to 12%, effective as of September 17, 2021. The mandatory contribution for non-bargaining unit civilian personnel will also increase from 1% to 3%, effective as of September 17, 2021. The proposed increase is within City Council’s authorized economic parameters for compensation adjustments for Fiscal Year 20-21. The Human Resources Department, in collaboration with the Retirement Office, will implement these changes and provide notice to all affected employees.
Financial Information: The increase in retirement contribution represents a .05% increase in compensation for Fiscal Year 20-21. When coupled with the across the board increase in October 2020, and merit increase in December 2020, the total compensation increase will be less than 3% for the current fiscal year. The City’s expenditure for such an increase, effective September 17, 2021, would result in an additional expense of approximately $6,074.10 for Fiscal Year 20-21.
Special Consideration: The proposed increase is for the benefit of the non-bargaining unit civilian personnel only. During negotiations, the bargaining units declined such an increase. We believe that non-bargaining unit civilian employees should not be denied this benefit increase simply because bargaining unit employees did not accept it. The Human Resources Department will spearhead the implementation of the approved changes with the assistance of the Retirement Office.
Location of Project: N/A
Attachments: N/A
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: N/A
Legal Sufficiency Review:
Reviewed by James D. Stokes, City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.