Loading...
HomeMy WebLinkAbout2012 01 09 Consent 201 Resolution 2012-03 Pension ReformsCOMMISSION AGENDA ITEM 201 January 09, 2012 Regular Meeting Informational Consent X Public Hearings Regular KS City Manager BE Department REQUEST: The City Manager and Finance and Administrative Services Department are requesting that the Commission consider adoption of Resolution 2012 -03 supporting The Florida League of Cities' initiative regarding Police Officers' and Firefighters' disability presumption reforms. SYNOPSIS: Resolution 2012 -03 supports The Florida League of Cities' initiative regarding Police Officers' and Firefighters' disability presumption reforms to make pension plan and worker's compensation benefits sustainable for current and future police officers and firefighters. CONSIDERATIONS: As directed by a consensus of the City of Winter Springs Commission on December 12, 2011, Resolution 2012 -03 is hereby presented. This resolution supports the initiative of the Florida League of Cities to secure sustainable pension plans and worker's compensation benefits for current and future police officers and firefighters. This resolution also encourages Florida legislators to add clarifying language to SB 1128. FISCAL IMPACT: The fiscal impact of the resolution is not measurable in aggregate dollar savings at this time. The intent is to address escalating pension costs and endeavor to make these pension plans more sustainable. Consent 201 PAGE 1 OF 2 - January 09, 2012 COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney /Staff, and is available on the City's Website, LaserFiche, and the City's Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City's Website, LaserFiche, and the City's Server; has been sent to applicable City Staff, eAlert/eCitizen Recipients, Media/Press Representatives who have requested Agendas /Agenda Item information, Homeowner's Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at five (5) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals. Upon adoption by the Commission, a copy of Resolution 2012 -03 will be forwarded to the related Bill Sponsors in the Florida House and Senate and to Allison Payne with the Florida League of Cities. RECOMMENDATION: City Manager and Director of Finance and Administrative Services recommend that the Commission adopt Resolution 2012 -03 in support of the League of Cities' initiative. ATTACHMENTS: Resolution 2012 -03 Consent 201 PAGE 2 OF 2 - January 09, 2012 RESOLUTION NO. 2012 -03 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA; STATING THE CITY COMMISSION'S SUPPORT OF POLICE OFFICER AND FIREFIGHTER DISABILITY PRESUMPTION REFORMS TO MAKE PENSION PLAN AND WORKERS' COMPENSATION BENEFITS SUSTAINABLE FOR CURRENT AND FUTURE POLICE OFFICERS AND FIREFIGHTERS; PROVIDING FOR REPEAL OF PRIOR INCONSISTENT RESOLUTIONS; SEVERABILITY; AND AN EFFECTIVE DATE. WHEREAS, the City of Winter Springs deeply honors and respects the services provided and sacrifices made by police officers and firefighters, and desires to provide current and future police officers and firefighters with a pension and workers' compensation system that is sustainable; and WHEREAS, the City also desires to protect local taxpayers from unsustainable and unsound pension and workers' compensation expenses; and WHEREAS, the City supports responsible reforms that protect pensions and workers' compensation benefits so they will be available for future generations of police officers and firefighters and safeguard taxpayer dollars; and WHEREAS, the Florida Legislature has provided that health conditions relating to heart disease, hypertension or tuberculosis suffered by a firefighter, law enforcement officer or correctional officer are presumed to be job related; and WHEREAS, these "disability presumptions" are applicable to both workers' compensation and disability pension claims and have introduced significant opportunities for abuse in the workers' compensation and police and firefighter pension systems; and WHEREAS, courts have interpreted the presumption laws so favorably toward these employees that cities and other government employers essentially cannot overcome the presumption and show the health condition was not work related; and WHEREAS, a Task Force on Public Employee Disability Presumptions is currently meeting to make findings and recommendations to the Legislature; and WHEREAS, changes to disability presumption laws being considered by the Task Force include requiring an employee to meet age and employment requirements, allowing a presumption to be overcome by a preponderance of evidence, and allowing certain individual risk factors to be considered when applying the presumption, such as tobacco use, weight /diet, genetics and lifestyle choices; and City of Winter Springs Resolution 2012 -03 Page 1 of 4 WHEREAS, said changes are designed to bring a fairer balance to the application of presumption laws; and WHEREAS, it is important to remember that just because an individual does not have a disability presumption does NOT mean they cannot make a workers' compensation or disability pension claim; rather, it just means that the individual must show the health condition is work related, just like every other employee who makes a workers' compensation or pension claim; and WHEREAS, HB 365 by Representative Fred Costello and SB 910 by Senator Alan Hays have been filed for consideration during the 2012 legislative session and both responsibly promote increased police and firefighter pension and workers' compensation stability, security and sustainability by making the following changes to current state law: 1. Collective Bargaining Over Retirement Benefits and Revenues: Allow cities and police and firefighter unions to collectively bargain the retirement benefits provided pursuant to, and the use of insurance premium tax revenues provided under, Chapters 175 or 185, Florida Statutes. 2. Alternative Retirement Plans: Allow cities to unilaterally transition to a defined contribution plan, the Florida Retirement System, or another retirement program for police and firefighters and continue to receive insurance premium tax revenues to pay for the retirement expenses. 3. Boards of Trustees Fiscal Transparency and Accountability: Require statutorily created police and firefighter pension boards of trustees to adopt and operate under an administrative expense budget, and require a detailed accounting of pension boards of trustees' expenses. 4. Fiscally Responsible Retirement Plan Termination: Require police and firefighter pension boards of trustees and cities to work together for a fiscally responsible distribution of plan assets if a city must terminate its police or firefighter retirement plan. 5. Clarify Police Overtime Used for Retirement Purposes: Clarify (due to an incorrect interpretation by the Division of Retirement of a law passed in 2011) that police officers may use up to 300 hours per year in overtime compensation when calculating retirement benefits as provided in the plan or collective bargaining agreement, and that police officers are not entitled to the use of a minimum of 300 hours per year in overtime compensation for retirement purposes. 6. Disability Presumptions: Reform current statutory disability presumptions for firefighters, law enforcement officers and correctional officers relating to health City of Winter Springs Resolution 2012 -03 Page 2 of 4 conditions caused by tuberculosis, heart disease or hypertension to require the employee to meet age and employment requirements, allow the presumption to be overcome by a preponderance of evidence, and allow certain individual risk factors to be considered when applying the presumption. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1 . Recitals. The foregoing recitals are hereby fully incorporated herein by this reference and are deemed a material part of this Resolution. Section 2. Support for Disability Presumption Reforms. The City Commission of the City of Winter Springs hereby states its support for police and firefighter pension and disability presumption reforms in general, and as more specifically provided in HB 365 and SB 910 for the 2012 Florida legislative session. The City Commission hereby requests the Florida Legislature amend current statutory disability presumptions for firefighters, law enforcement officers and correctional officers relating to health conditions caused by tuberculosis, heart disease or hypertension to require the employee to meet age and employment requirements, allow the presumption to be overcome by a preponderance of evidence, and allow certain individual risk factors to be considered when applying the presumption. The City Commission hereby urges the Florida Legislature to pass and the Governor to approve the above responsible reform recommendations relating to police and firefighter pension plans and disability presumptions in the 2012 Legislative Session. Section 3. City Clerk to Transmit Resolution to Governor. Upon adoption, the City Commission hereby directs that the City Clerk transmit a copy of this Resolution to Governor Rick Scott, the Florida Legislature, and the Florida League of Cities, Inc. Section 4. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word, or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. Section 6. Effective Date. This Resolution shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. DONE AND ADOPTED in regular session of the City Commission of the City of Winter Springs, Florida, this 9th day of January, 2012. CHARLES LACEY, Mayor City of Winter Springs Resolution 2012 -03 Page 3 of 4 ATTEST: ANDREA LORENZO- LUACES, City Clerk APPROVED AS TO FORM AND SUFFICIENCY FOR THE CITY OF WINTER SPRINGS ONLY: ANTHONY A. GARGANESE, City Attorney City of Winter Springs Resolution 2012 -03 Page 4 of 4 RESOLUTION NO. 2012-03 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA; STATING THE CITY COMMISSION'S SUPPORT OF POLICE OFFICER AND FIREFIGHTER DISABILITY PRESUMPTION REFORMS TO MAKE PENSION PLAN AND WORKERS' COMPENSATION BENEFITS SUSTAINABLE FOR CURRENT AND FUTURE POLICE OFFICERS AND FIREFIGHTERS; PROVIDING FOR REPEAL OF PRIOR INCONSISTENT RESOLUTIONS; SEVERABILITY; AND AN EFFECTIVE DATE. WHEREAS, the City of Winter Springs deeply honors and respects the services provided and sacrifices made by police officers and firefighters, and desires to provide current and future police officers and firefighters with a pension and workers' compensation system that is sustainable; and WHEREAS, the City also desires to protect local taxpayers from unsustainable and unsound pension and workers' compensation expenses; and WHEREAS, the City supports responsible reforms that protect pensions and workers' compensation benefits so they will be available for future generations of police officers and firefighters and safeguard taxpayer dollars; and WHEREAS, the Florida Legislature has provided that health conditions relating to heart disease, hypertension or tuberculosis suffered by a firefighter, law enforcement officer or correctional officer are presumed to be job related; and WHEREAS, these "disability presumptions" are applicable to both workers' compensation and disability pension claims and have introduced significant opportunities for abuse in the workers' compensation and police and firefighter pension systems; and WHEREAS, courts have interpreted the presumption laws so favorably toward these employees that cities and other government employers essentially cannot overcome the presumption and show the health condition was not work related; and WHEREAS, a Task Force on Public Employee Disability Presumptions is currently meeting to make findings and recommendations to the Legislature; and WHEREAS, changes to disability presumption laws being considered by the Task Force include requiring an employee to meet age and employment requirements, allowing a presumption to be overcome by a preponderance of evidence, and allowing certain individual risk factors to be considered when applying the presumption, such as tobacco use, weight /diet, genetics and lifestyle choices; and City of Winter Springs Resolution 2012 -03 Page 1 of 4 WHEREAS, said changes are designed to bring a fairer balance to the application of presumption laws; and WHEREAS, it is important to remember that just because an individual does not have a disability presumption does NOT mean they cannot make a workers' compensation or disability pension claim; rather, it just means that the individual must show the health condition is work related, just like every other employee who makes a workers' compensation or pension claim; and WHEREAS, HB 365 by Representative Fred Costello and SB 910 by Senator Alan Hays have been filed for consideration during the 2012 legislative session and both responsibly promote increased police and firefighter pension and workers' compensation stability, security and sustainability by making the following changes to current state law: 1. Collective Bargaining Over Retirement Benefits and Revenues: Allow cities and police and firefighter unions to collectively bargain the retirement benefits provided pursuant to, and the use of insurance premium tax revenues provided under, Chapters 175 or 185, Florida Statutes. 2. Alternative Retirement Plans: Allow cities to unilaterally transition to a defined contribution plan, the Florida Retirement System, or another retirement program for police and firefighters and continue to receive insurance premium tax revenues to pay for the retirement expenses. 3. Boards of Trustees Fiscal Transparency and Accountability: Require statutorily created police and firefighter pension boards of trustees to adopt and operate under an administrative expense budget, and require a detailed accounting of pension boards of trustees' expenses. 4. Fiscally Responsible Retirement Plan Termination: Require police and firefighter pension boards of trustees and cities to work together for a fiscally responsible distribution of plan assets if a city must terminate its police or firefighter retirement plan. 5. Clarify Police Overtime Used for Retirement Purposes: Clarify (due to an incorrect interpretation by the Division of Retirement of a law passed in 2011) that police officers may use up to 300 hours per year in overtime compensation when calculating retirement benefits as provided in the plan or collective bargaining agreement, and that police officers are not entitled to the use of a minimum of 300 hours per year in overtime compensation for retirement purposes. 6. Disability Presumptions: Reform current statutory disability presumptions for firefighters, law enforcement officers and correctional officers relating to health City of Winter Springs Resolution 20U -03 Page 2 of 4 conditions caused by tuberculosis, heart disease or hypertension to require the employee to meet age and employment requirements, allow the presumption to be overcome by a preponderance of evidence, and allow certain individual risk factors to be considered when applying the presumption. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: Section 1. Recitals. The foregoing recitals are hereby fully incorporated herein by this reference and are deemed a material part of this Resolution. Section 2. Support for Disability Presumption Reforms. The City Commission of the City of Winter Springs hereby states its support for police and firefighter pension and disability presumption reforms in general, and as more specifically provided in HB 365 and SB 910 for the 2012 Florida legislative session. The City Commission hereby requests the Florida Legislature amend current statutory disability presumptions for firefighters, law enforcement officers and correctional officers relating to health conditions caused by tuberculosis, heart disease or hypertension to require the employee to meet age and employment requirements, allow the presumption to be overcome by a preponderance of evidence, and allow certain individual risk factors to be considered when applying the presumption. The City Commission hereby urges the Florida Legislature to pass and the Governor to approve the above responsible reform recommendations relating to police and firefighter pension plans and disability presumptions in the 2012 Legislative Session. Section 3. City Clerk to Transmit Resolution to Governor. Upon adoption, the City Commission hereby directs that the City Clerk transmit a copy of this Resolution to Governor Rick Scott, the Florida Legislature, and the Florida League of Cities, Inc. Section 4. Repeal of Prior Inconsistent Resolutions. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict. Section 5. Severability. If any section, subsection, sentence, clause, phrase, word, or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. Section 6. Effective Date. This Resolution shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. DONE AND ADOPTED in regular session of the City Commission of the City of Winter Springs, Florida, this 9th day of January, 2012. ESL • v •. yor City of Winter Springs Resolution 2012 -03 Page 3 of 4 ATT S r :' AN 1'+J. LORENZO- LUACES, City Clerk APPROVED AS TO FORM AND SUFFICIENCY FOR TH CITY OF WINTER SPRINGS ONLY: ANTHONY A. GARGANESE, City Attorney City of Winter Springs Resolution 2012 -03 Page 4 of 4