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File #: PO-2025-03    Version: Name: Amending Pension General Ordinance re DROP Participation and Disbursement
Type: Ordinance Status: Passed
File created: 4/8/2025 In control: Regular City Commission Meeting
On agenda: 6/18/2025 Final action: 6/18/2025
Title: An Ordinance Of The City Of Hollywood, Florida, Amending Section 33.025 Related To Providing The Availability Of Participation In A Deferred Retirement Option Plan For All Members Of The City Of Hollywood Employees Retirement Fund And To Provide For Distribution Of Drop Account Balances.
Attachments: 1. DROP Ordinance FINAL Second Reading.pdf, 2. Hollywood Employees Retirement Fund - Actuarial Impact Statement 5-19-2025 (003).pdf, 3. Business Impact Form for Ordinance PO -2025-03 DROP.pdf
Title
An Ordinance Of The City Of Hollywood, Florida, Amending Section 33.025 Related To Providing The Availability Of Participation In A Deferred Retirement Option Plan For All Members Of The City Of Hollywood Employees Retirement Fund And To Provide For Distribution Of Drop Account Balances.

Strategic Plan Focus
Financial Management and Administration


Body


Staff Recommends: Approval of the attached Ordinance.


SECOND READING:
On June 2, 2025, a vote was held by the members of AFSCME, which resulted in approval of the ordinance and the three MOUs which were used as the source documents to draft the revisions included in the ordinance. A separate vote was held on June 10, 2025, by the eligible members of the City of Hollywood Employees Retirement Fund, also approving the proposed changes to the ordinance. The sixth and seventh Whereas clauses of the ordinance were revised to indicate that these votes have now occurred.


FIRST READING:

Explanation:
Participation in the Deferred Retirement Option Plan ("DROP") benefit was not open to all members of AFSCME and therefore not all members of the City of Hollywood Employees' Retirement Fund ("COHERF"). In addition, the current Collective Bargaining Unit ("CBA") stipulated that those employees AFSCME who were eligible to participate in the DROP were required to separate from the City upon completion of the DROP. Given the difficulties found nationally in recruitment for certain positions, it makes good business sense to provide for flexibility in instances where the City has a desire to keep an employee and that employee desires to continue working for the City to allow for such continuance of employment after completion of the employee's DROP period.

Representatives of AFSCME Local 2432 ("AFSCME") and the City met in Impact Bargaining to negotiate to provide the opportunity for all members of AFSCME to be able to participate in the DROP benefit and to remove language requiring separation from City empl...

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