Title
ORDINANCE NO. 250-08-126: AN ORDINANCE OF THE CITY OF LAUDERHILL, FLORIDA, AMENDING THE CITY OF LAUDERHILL CODE OF ORDINANCES, CHAPTER 2 - ADMINISTRATION, ARTICLE II - OFFICERS AND EMPLOYEES, DIVISION 3 - RETIREMENT, PART 4 - SENIOR MANAGEMENT PENSION PLAN AND TRUST FUND, SECTION 2-88.15 -- DEFERRED RETIREMENT OPTION PLAN, BY INCREASING THE MAXIMUM PARTICIPATION IN THE DEFERRED RETIREMENT OPTION PLAN (DROP) FROM FIVE YEARS TO SEVEN YEARS WITH CONDITIONS; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE (REQUESTED BY CITY MANAGER, KENNIE HOBBS, JR.).
Body
Request Action:
This ordinance modifies section2-88.15 of the City Code to extend the maximum period an eligible employee may participate in the Deferred Retirement Option Plan (DROP) from five (5) years to seven (7) years, effective September 8, 20205. The extension applies only if members make an additional contribution of 1.5% of applicable earnable compensation for any time worked during the sixth and seventh years of DROP participation. The public purpose of this ordinance is to enhance the City's ability to retain experienced and highly skilled employees for a longer period, thereby promoting continuity, operational stability, and efficiency within City departments. Extending the DROP participation period provides an incentive for employees to remain in service while controlling pension fund impacts through additional employee contributions. This benefit matches one provided to members of the police and fire pensions.
Need Summary Explanation/ Background:
To amend the code and provide the 7-year DROP as an option to employees in the Confidential/Managerial Pension group, as is offered to members of the police and fire pension.
Cost Summary/ Fiscal Impact:
This ordinance change includes a fee of 1.5% for members wanting to participate in years 6 and 7 of the DROP, also matching the language in the police and fire pensions.
Attachments:
#1 - Ordinance
#2 - Business Impact Statement
Budget Code Number(s): N/A as it impacts members throughout the City.
Procurement Information: [check all that apply]
[ ] RFP/Bid [ ] Emergency Purchase [ ] SBE
[ ] Proposal/Quote [ ] State Grant Funds [ ] Local Preference
[ ] Piggyback Contract [ ] Federal Grant Funds
[ ] Sole Source [ ] Matching Required