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CASSELBERRY CITY COMMISSION Minutes of August 12, 2013 — Regular Meeting Page 5 of 16 Employees covered by the Casselberry Police Officers' and Firefighters' Pension Plan and hired prior to the effective date of the changes will have a 3% employee contribution toward the plan cost. The employees currently pay 0.5 %. The increase of 3.5% will be offset by a corresponding 2.5% salary adjustment. - Employees hired after the effective date will have a 3% employee contribution rather than 0.5 %. - Employees hired after the effective date will have a change in normal retirement eligibility • to become age 55 with 10 years of service instead of 6 years of service, or • age 52 with 25 years of service instead of 25 years of service regardless of age. - Employees hired after the effective date will have a delay in the COLA (to begin after the 5'1' full year after retirement instead of at inception). - Employees hired after the effective date will have a longer vesting period (full vesting after 8 years of service instead of 6 years). Budget Impact: The Budget impact will be determined upon an actuarial impact study. It is anticipated that the change in the contribution rate of the employee and the other plan changes will reduce the amount of contribution to the pension plan from the City. Recommendation: The City Manager recommended approval of Resolution 13 -2516. E. Resolution 13 -2517 — Amending Article 34 of the Casselberry Professional Firefighters Collective Bargaining Agreement "A RESOLUTION OF THE CITY OF CASSELBERRY, FLORIDA, AME NDING AND RATIFYING ARTICLE 34 OF THE, COLLECTIVE BARGAINING AGREEME NT BETWEEN THE CITY OF CASSELBERRY AND THE CASSELBERRY PROFESSIONAL FIREFIGHTERS; PROVIDING FOR CONFLICTS, SEVERABILITY, AND EFFECTIVE DATE." Introduction: Resolution 13 -2517 amends and ratifies Article 34 of the Collective Bargaining Agreement (CBA) between the City of Casselberry and the Casselberry Professional Firefighters Association (CPF). Background: The City Commission approved Resolution 13 -2476 to ratify the current CBA between the City and the CPF on March 11, 2013. The agreement includes 42 articles, including Article 34 — Pension Fund. The article includes a provision that requires negotiations prior to implementation of significant benefit changes to the pension plan. Discussion: City staff and CPF representatives have reached a mutual agreement to revise Article 34 in a manner that better suits the needs of the City. Members of the CPF voted and approved the revised article. The amendment to Article 34, specifically 34.2 b.2., provides for a change to the normal retirement date from the CBA approved in March but not yet implemented. The change is to provide for consistency with minimum standards established in Chapter 175, State Statute for Firefighter pension plans to be eligible for "Premium Tax Distribution ". The amendment would provide for continued eligibility to receive the Premium Tax Distribution as provided by the Statute following an actuarial study and subsequent ordinance.