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HomeMy WebLinkAboutResolution 2026-34251RESOLUTION NO. 2026-34251 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND RATIFYING ALL EXCESS CONTRIBUTIONS MADE BY THE CITY TO THE MIAMI BEACH FRATERNAL ORDER OF POLICE INSURANCE TRUST FUND ("FOP HEALTH TRUST"), ON BEHALF OF POLICE EMPLOYEES INSURED THROUGH THE FOP HEALTH TRUST, AND TO THE MIAMI BEACH LOCAL 1510 FIREFIGHTERS INSURANCE TRUST FUND ("IAFF HEALTH TRUST"), ON BEHALF OF FIRE RESCUE EMPLOYEES INSURED THROUGH THE IAFF HEALTH TRUST, RESULTING FROM A REDUCTION TO THE INSURANCE ELIGIBILITY PERIOD FROM NINETY (90) DAYS TO THE FIRST OF THE MONTH AFTER THE INITIAL THIRTY (30) DAYS OF EMPLOYMENT, RETROACTIVE TO OCTOBER 1, 2022. WHEREAS, the FOP Health Trust sponsors a health insurance plan covering City of Miami Beach police employees who are part of the Miami Beach Fraternal Order of Police, William Nichols Lodge No. 8 ("FOP") bargaining unit; and WHEREAS, the IAFF Health Trust sponsors a health insurance plan covering City of Miami Beach fire/rescue employees who are part of the Fire Fighters of Miami Beach International Association of Fire Fighters, Local 1510 ("IAFF") bargaining unit; and WHEREAS, pursuant to the collective bargaining agreement between the FOP and the City, and the IAFF and the City, the City contributes money to the FOP Health Trust and the IAFF Health Trust to defray the cost of health insurance provided to their respective bargaining unit employees; and WHEREAS, the City's obligation to make contributions to the FOP Health Trust and the IAFF Health Trust is triggered by the date the employee becomes eligible for insurance coverage under the respective Health Trust sponsored health plans; and WHEREAS, pursuant to Resolution 2022-3208 (February 9, 2022), the City reduced the insurance eligibility period for Classified and Unclassified employees covered under the City's self -insured health plans from ninety (90) days to the first of the month after the initial thirty (30) days of employment effective October 1, 2022; and WHEREAS, with the consent of the City, the FOP Health Trust and the IAFF Health Trust, each also reduced the eligibility period for their respective members from ninety (90) days to thirty (30) days consistent and concurrent with the City's change to its eligibility period; and WHEREAS, the reduced eligibility period did not conform to the terms of the collective bargaining agreement between the City and the FOP in effect from October 1, 2022, to September 30, 2024, or the terms of the successor agreement in effect from October 1, 2024 through September 30, 2027; and WHEREAS, the reduced eligibility period did not conform to the terms of the collective bargaining agreement between the City and the IAFF in effect from October 1, 2021, to September 30, 2024, or the terms of the successor agreement in effect from October 1, 2024, through September 30, 2027; and WHEREAS, the FOP and the City have now amended the terms of their collective bargaining agreement to reflect the change to the eligibility period retroactive to October 1, 2022; and WHEREAS, the IAFF and the City have now amended the terms of their collective bargaining agreement to reflect the change to the eligibility period retroactive to October 1, 2022; and WHEREAS, reducing the eligibility period increased the aggregate amount of contributions made by the City to each of the Health Trusts because the City was required to make contributions earlier and over a greater portion of the year for all new hires; and WHEREAS, notwithstanding the inconsistency between the eligibility period defined by the collective bargaining agreements and the eligibility period in the FOP Health Trust sponsored plan document, all contributions made by the City to the FOP Health Trust have been budgeted and approved by the City Commission through the budget process. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and the City Commission hereby approve and ratify all excess contributions made by the City to the Miami Beach Fraternal Order of Police Insurance Trust Fund ("FOP Health Trust"), on behalf of police employees insured through the FOP Health Trust, and to the Miami Beach Local 1510 Firefighters Insurance Trust Fund ("IAFF Health Trust'), on behalf of fire rescue employees insured through the IAFF Health Trust, resulting from a reduction to the insurance eligibility period from ninety (90) days to the first of the month after the initial thirty (30) days of employment, retroactive to October 1, 2022. PASSED AND ADOPTED this -�O day of "Mle' , , 2026. ATTEST: MAY 2 6 2026Stevdn Meiner, Mayor Rafael E. Oranado, City Clerk -x•��' • APPROVED AS TO '•.INCORPORATED' FORM & LANGUAGE .,,-y�• ._......;�� ._ &FOR EX;E C U T I O N cN•26 Q 3 z0zg City Attorney RR Date 2 Resolutions - C7 E MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: May 20, 2026 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND RATIFYING ALL EXCESS CONTRIBUTIONS MADE BY THE CITY TO THE MIAMI BEACH FRATERNAL ORDER OF POLICE INSURANCE TRUST FUND ("FOP HEALTH TRUST') ON BEHALF OF POLICE EMPLOYEES INSURED THROUGH THE FOP HEALTH TRUST, AND TO THE MIAMI BEACH LOCAL 1510 FIREFIGHTERS INSURANCE TRUST FUND ("IAFF HEALTH TRUST') ON BEHALF OF FIRE RESCUE EMPLOYEES INSURED THROUGH THE IAFF HEALTH TRUST. RESULTING FROM A REDUCTION TO THE INSURANCE ELIGIBILITY PERIOD FROM NINETY (90) DAYS TO THE FIRST OF THE MONTH AFTER THE INITIAL THIRTY (30) DAYS OF EMPLOYMENT, RETROACTIVE TO OCTOBER 1, 2022. RECOMMENDATION The Administration recommends passing the resolution. BACKGROUND/HISTORY For over twenty years city police employees represented by the FOP and fire/rescue employees represented by the IAFF have been insured through separate group health insurance plans sponsored by the FOP Health Trust and the IAFF Health Trust, respectively. Contributions to each of the Health Trusts by the city, to defray the costs of health insurance for covered employees and their eligible dependents, is a mandatory subject of bargaining. The collective bargaining agreements between the city and the FOP and the city and the IAFF, in effect, set forth basic eligibility criteria for new hire insurance coverage under each of the health plans and the amount of city contribution based on the tier of coverage elected by each member. ANALYSIS For over twenty-six years, the collective bargaining agreements with the FOP and IAFF, respectively, have provided that bargaining unit members first become eligible to enroll in a Trust - sponsored health insurance plan after being employed by the city in the police or fire department for at least ninety days. After the first ninety days of employment, a bargaining unit member and the member's eligible dependents can enroll in a Trust -sponsored health plan. Upon enrollment, the city makes monthly contributions on behalf of the member to the Trust to defray the costs of health insurance coverage. The amount of contribution made by the city for each enrolled member and their eligible dependents depends on the tier of coverage elected by the member. The Trust sponsored health insurance plan is the exclusive plan for police and fire rescue employee -members. That is, under the collective bargaining agreements a member is not eligible to obtain insurance coverage through a city -sponsored health plan. Contributions made by the city to the Health Trusts are subject to mandatory bargaining with the respective unions. By agreement of the parties, the amount contributed by the city is increased annually following health costs trends. As mentioned previously, eligibility and enrollment trigger 221 of 1709 the city's obligation to contribute to the Health Trusts on behalf of a member. Based on a ninety - day eligibility period, the city would contribute approximately three out of twelve months less for new hires during their first year of employment when compared to an existing employee. The ninety -day eligibility period under each of the Health Trust -sponsored plans was consistent with the City's eligibility period under its own city -sponsored health plans until fiscal year 2022- 2023. On February 9, 2022, the Commission passed Resolution 2022-32038. Resolution 2022- 32038 required that the Administration ascertain the costs of reducing the eligibility period for health insurance coverage for new hires from ninety days to zero - that is, provide health insurance to all new hires on day one of employment - and present a recommendation to the Commission as part of the fiscal year 2023 budget adoption process. During the adoption of the fiscal year 2023 budget, the recommendation of the Administration and the budget that was approved by the Commission reduced the eligibility period for the city -sponsored health plans from ninety days to the first of the month after the initial thirty days of employment. To maintain consistency among all city hires, and with the agreement of the city, the Health Trusts also reduced their respective eligibility periods from ninety days to the first of the month after the initial thirty days of employment at the same time. This meant new hires were covered by the Health Trusts -sponsored plans earlier than before and consequently caused an increase in city contributions on their behalf during their first year of employment. Notwithstanding the change in practice, the language in the collective bargaining agreements remained the same - a ninety -day eligibility period - due to an oversight to amend the language of the agreement. At the beginning of April 2026, the city and the unions amended their respective collective bargaining agreements to reflect the change to the eligibility period effective October 1, 2022. This resolution proposes to retroactively approve and ratify all increased contributions made by city to each Health Trust -sponsored health insurance plan covering bargaining unit members represented by the FOP and the IAFF and their eligible dependents as a result of the reduction to the eligibility period for insurance enrollment. FISCAL IMPACT STATEMENT The City's contributions to both the FOP Health Trust and the IAFF Health Trust are determined by fixed amounts established in each collective bargaining agreement. These amounts are adjusted annually based on the Segal Health Plan Cost Trend Survey for Open Access PPO/POS plans. Adjustments take effect each January 1, which are not influenced by the actual plan experience or performance of the underlying plans. The actual expenditures may have changed based upon the extra two months of coverage for new hires but the budgeted amounts for the contributions to the respective Health Trusts did not. Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https•//www miamibeachfl.gov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION 222 of 1709 N/A CONCLUSION The Administration recommends that the Commission pass the resolution to retroactively approve and ratify the increased contributions caused by the reduced eligibility period for new hires covered under each of the Health Trust sponsored health insurance plans. Applicable Area Citywide Is this a "Residents Riqht to Know" item, pursuant to City Code Section 2-17? No Is this item related to a G.O. Bond Proiect? No Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No If so, specify the name of lobbyist(s) and principal(s): Department Human Resources Sponsor(s) Co-sponsors) Condensed Title Ratify all Excess Contributions Made by FOP Health Trust and IAFF Health Trust. HR Previous Action (For City Clerk Use Only) 223 of 1709