2010-27352 Reso RESOLUTION NO. .2010 27352 J
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO CREATE AN ' AGENCY
ACCOUNT FOR THE PURPOSE OF RETAINING THE ADDITIONAL TWO PERCENT (2 %)
EMPLOYEE PENSION CONTRIBUTION FOR THOSE EMPLOYEES INCLUDED IN -THE
AMERICAN.-FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES / LOCAL
1554 (AFSCME) AND GOVERNMENT SUPERVISORS ASSOCIATION OF FLORIDA
INTERNATIONAL UNION, LOCAL 100 (GSAF) BARGAINING UNITS WHO PARTICIPATE IN
THE MIAMI BEACH EMPLOYEES' RETIREMENT PLAN (MBERP), EFFECTIVE JULY 14,
2010,AND CONTINUING TO A DATE NOT LATER THAN'SEPTEMBER 30, 2010.
WHEREAS, on July 14, 2010, the City Commission ratified. a three (3) year Labor
agreement with the American Federation of State, County and Municipal Employees /Local 1554
(AFSCME), covering the time period of May 1, 2010 through April 30, 2013; and
WHEREAS, on July 14, 2010, the City Commission ratified an amended three (3) year
labor agreement with the Government Supervisors Association of Florida, International Union,
Local 100 (GSAF) bargaining unit, covering the time period of October 1, 2009 through
September 30, 2012; and
r
WHEREAS, effective on July 14, 2010, all employees covered by the AFSCME and
GSA bargaining units who participate in the Miami Beach Employees' Retirement Plan
(MBERP) began contributing an additional two - percent (2 %) of earnings toward their employee
k pension contribution, which additional employee contribution will correspondingly reduce the
City's annual required contribution to the MBERP; and
WHEREAS, the Administration has been authorized by the Mayor and City Commission
to create an agency Account (where the City acts' on behalf of the employee in ,collecting the
funds and transmitting those funds to the appropriate entity); and
WHEREAS, the additional employee contributions will be maintained in the Agency
Account until a date not later than September 30, 2010; and
WHEREAS, the. additional employee contributions will be deposited into the MBERP
fund on or before September 30, 2010.
NOW, WHEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA hereby approve this resolution
authorizing the Administration to create an Agency Account for the purpose of retaining the
additional two percent (2 %) employee pension contribution for those employees included in the
bargaining units represented by AFSCME and GSAF, who participate in the Miami Beach
Employees' Retirement Plan (MBERP), retroactive to July 14, 2010, and continuing to a date
not later than September 30, 2010, and the additional employee contributions will be deposited
into the MBERP fund on or before September 30, 2010, and hereby authorize the Mayor and
the City Clerk to execute this Resolution.
PASSED AND ADOPTED this 14 day of July, 2010.
APPROVED ��'� U TO *
ATTEST:
FOR E UTION
CITY CLERK M
n► ate
f .
COMMISSION ITEM SUMMARY
Condensed Title:
Creation Of An Agency Account For Additional two percent (2 %) Employee Contribution
1. A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Authorizing The
Administration To Create An Agency Account For The Purpose Of Retaining The Additional Two Percent (2 %)
Employee Pension Contribution For Employees In The Bargaining Unit Represented By The Government
Supervisors Association Of Florida /OPEIU Local 100, Who Participate. In The Miami Beach Employees'
Retirement Plan ( MBERP), Retroactive To The Pay Period Beginning On January 18, 2010, And Continuing for
Twelve (12) Months From That Date.
2. A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Authorizing The
Administration To Create An Agency Account For The Purpose Of Retaining The Additional Two Percent (2 %)
Employee Pension Contribution For All Employees Not Included In A Bargaining Unit And Known As The Groups
"Unclassifieds" And "Others ", Who Participate In The Miami Beach Employees' Retirement Plan ( MBERP),
Retroactive To The Pay Period Beginning On January 18, 201.0, And Continuing For Twelve (12) Months from
That Date.
Key Intended Outcome Supported:
Control costs of payroll including salary and fringes/ minimize taxes/ ensure expenditure trends are
sustainable over the lon term.
Supporting Data (Surveys, Environmental Scan, etc.): N/A
Issue:
Shall the City Commission authorize the Administration to create an Agency account for the purpose of retaining
the additional two percent (2 %) employee pension contribution for those employees in GSA, Others and
Unclassified salary groups?
Item Summa /Recommendation:
At the January 13, 2010 City Commission meeting, the City Commission passed a resolution ratifying the 2009-
2012 Collective Bargaining Agreement between the City and the GSA. The City Commission also passed a
resolution authorizing an additional deduction of two percent (2 %) of earnings for the employee pension
contribution for all active GSA members who participate in the Miami Beach Employees' Retirement Plan
( MBERP). In addition, the City Commission authorized the Administration to effectuate the two percent (2 %)
increase in employee. pension contributions for those employees in the Unclassified and "Others" salary groups
simultaneously with the GSA salary group. This increase became effective with the pay period that began on
January 18, 2010 for the GSA, Others and Unclassified salary groups who participate in MBERP and shall
continue for a twelve (12) month period. As part of the terms and conditions of the Agreement with the GSA, the
additional two percent (2 %) pension contribution was to be placed in an Agency Account until such time as the
employee contribution for all members of the Miami Beach Employees' Retirement Plan is finalized. In the event
that the two percent (2 %) increase in employee pension contributions is not implemented for the remaining
general employee salary groups. (the CWA and AFSCME bargaining units), the additional two percent (2 %)
contributions made by the members of the GSA, Others and Unclassified salary groups shall be returned to the.
respective employees without interest.
Advisory Board Recommendation:
N/A
Financial Information:
i
Source of MA mount /account
Funds:
2
3
OBPI Total
Financial Impact Summary:'
City Clerk's Office Legislative Tracking:
[ Ramiro Inguanzo
S! gn Offs "Department Director As 's ant, City Mana er ' "; City Manager
T:\AGENDA\20101hrch 10 \Regular \Creati of Agency Acc u t for Increase Empl a Pension Contribution' um / / ary.d c
V
A AGENDA ITEM L' 7/"
- 19
DATE /
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: March 10, 2010
SUBJECT: A RESOLUTION OF THE. MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO CREATE
AN AGENCY ACCOUNT FOR THE PURPOSE OF RETAINING THE
ADDITIONAL TWO PERCENT (2 %) EMPLOYEE PENSION CONTRIBUTION
FOR EMPLOYEES IN THE BARGAINING UNIT REPRESENTED BY THE
GOVERNMENT SUPERVISORS ASSOCIATION OF FLORIDA/OPEIU LOCAL
100, WHO PARTICIPATE IN THE MIAMI BEACH EMPLOYEES' RETIREMENT
PLAN (MBERP), RETROACTIVE TO THE PAY PERIOD BEGINNING ON
JANUARY 18, 2 AND CONTINUING FOR TWELVE (12) MONTHS FROM
THAT DATE.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO CREATE
AN AGENCY ACCOUNT FOR THE PURPOSE OF RETAINING THE
ADDITIONAL TWO PERCENT (2 %) EMPLOYEE PENSION CONTRIBUTION
FOR ALL EMPLOYEES NOT INCLUDED IN ANY BARGAINING UNIT AND
KNOWN AS THE GROUPS "UNCLASSIFIEDS" AND "OTHERS ", WHO
PARTICIPATE IN THE MIAMI BEACH EMPLOYEES' RETIREMENT PLAN
(MBERP), RETROACTIVE TO THE PAY PERIOD BEGINNING ON JANUARY
18, 2010, AND CONTINUING FOR TWELVE (12) MONTHS FROM THAT DATE..
ADMINISTRATIVE RECOMMENDATION
Adopt both Resolutions.
BACKGROUND/ANALYSIS
During the July 2009 Finance and Citywide Projects Committee budget preparation
meetings, the Finance and Citywide Projects Committee requested that all City of Miami
Beach employees make certain financial concessions to help address the challenges being
faced. during the upcoming budget cycle. The Finance and Citywide Projects Committee
directed the Administration to budget for specific employee concessions for Fiscal Year
2009 -2010, which would in turn effectuate a cost savings of approximately $3.5 million
dollars to the General Fund. The employee concession initiatives that were directed by the
Finance and Citywide Projects Committee included the following: (1) a freeze on merit
increases and steps for all City employees; (2) a two' percent (2 %) increase to the
City Commission Memorandum.
March 10, 2010
Employee Increase to MBERP Contribution
Page 2 of 3
employees' contribution to the pension system; and (3) implementation of revised Condrey
and Associates recommendations from the Classification and Compensation Study that was
performed for the City. These concessions Were in addition to no cost of Living adjustment
(COLA).
In August 2009, the City began contract negotiations with the four (4) unions whose
contracts would expire on September 30, 2009. The City proposed all of the concessions
referenced above in the negotiations for successor collective bargaining agreements with
each of those unions. In addition, the City has already begun negotiations with American
Federation of State, County and Municipal Employees (AFSCME), whose current contract
expires on April 30, 2010, and has also included these provisions as part of the negotiations
for a successor collective bargaining agreement.
On October 29,2009, the City and the GSA successfully concluded negotiations fora three
(3) year successor Agreement. The term of the Agreement is from October 1, 2009 through
September 30, 2012. At the January 13, 2010 City Commission meeting, the City
Commission passed a resolution ratifying the 2009 -2012 Collective Bargaining Agreement
between the City and the GSA.
To implement the terms and conditions of the 2009 -2012. GSA Agreement, the City
Commission passed a resolution at the January 13, 2010 City Commission meeting
authorizing an additional deduction of two percent (2 %) of earnings for the employee
pension contribution for all active GSA members who participate in the Miami Beach
Employees' Retirement Plan ( MBERP), the City's pension plan for general employees. This
means an increase from ten percent (10 %) to twelve percent (12 %) of earnings for "Tier A"
employees (hired prior to August 1, 1993), and an increase from eight percent (8 %) to ten
percent (10 %) of earnings for "Tier B" employees (hired on or after August 1, 1993). This
increase became effective with the pay period that began on January 18, 2010 and shall
continue for a twelve (12) month period.
In keeping with the spirit of treating similar groups of employees the same, the City
Commission authorized the Administration to effectuate the two pe.rcent (2 %) increase in
employee pension contributions for those employees in the Unclassified and "Others" salary
groups simultaneously with the GSA salary group. This increase became effective with the
pay period that began on January 18, 2010 for Unclassified and "Others" employees who
participate in MBERP and shall continue for a twelve (12) month period. For Unclassified
employees, this means an increase from ten percent (10 %) to twelve percent (12 %) of
earnings for "Tier A" employees (hired prior to October 18, 1992), and an increase from eight
percent (8 %) to ten percent (10 %) of earnings for "Tier B" employees (hired on or after
October 18, 1992). For employees in the "Others" salary group, this means an increase
from ten percent (10 %) to twelve percent (12 %) of earnings for "Tier A" employees (hired
prior to August 1, 1993), and an increase from eight percent (8 %) to ten percent (10 %) of
earnings for "Tier B" employees (hired on or after August 1, 1993). This increase became
effective with the pay period that began on January 18, 2010 and shall continue for a twelve
(12) month period.
As part of the terms and conditions of the Agreement with the GSA, the additional two
percent (2 %) pension contribution was to be placed in an Agency Account (where the. City
acts on behalf of the employee in collecting the funds and transmitting those funds to" the
appropriate agency) until such time as the employee contribution for all members of the
Miami Beach Employees' Retirement Plan is finalized. In the event that the two percent
.(2 %) increase in employee pension contributions is not implemented for the remaining
general employee salary groups (the CWA and AFSCME bargaining units), the additional
City Commission Memorandum
March 10, 2010
Employee Increase to MBERP Contribution
Page 3 of 3
two percent (2 %) contributions made by the members of the GSA bargaining unit and by
employees in the Unclassified and "Others" salary groups shall be returned to the respective
employees without interest.
Given that the City makes its employer annual required contribution (ARC) to the pension
fund on October 1 s of each year, the timing of negotiations has resulted in the City already
making its required contributions for Fiscal Year 2009 -2010 in full an October 1, 2009.
Should the additional two percent (2 %) contribution also be collected from the employees in
the CWA and AFSCME bargaining units, then the entire amount that is held in the Agency
Account through September 30, 2010 shall be contributed to the MBERP effective October
1, 2010, thus reducing the use of other City funding sources to fund the City's ARC payable
on October 1, 2010 by the amount in the Agency Account. Effective October 1 2010, the
additional two percent (2 %) paid by the employees in the AFSCME, . CWA, GSA,
Unclassified and "Others" employee groups shall be made directly to- the MBERP for the
remainder of the twelve (12) month period for each of those respective employee groups. In
this event, the actuary for the MBERP will need to revise the actuarial valuation report or
provide an actuarial impact statement prior to' October 1, 2010 to reflect the additional
employee contributions, and correspondingly reducing the City's ARC.
CONCLUSION
The- Administration recommends adopting the two Resolutions which would authorize the
Administration to create an Agency Account for the purposes of retaining the additional two
percent (2 %) employee contribution currently being collected from the GSA, Unclassified
and "Others" salary groups, retroactive to January 18, 2010.
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