Title
An Ordinance Of The City Of Hollywood, Florida, Amending Section 33.025 Of The Code Of Ordinances Titled "Employees' Retirement Fund" Pertaining To The City Of Hollywood Employees' Retirement Fund; Related To Providing New Benefit Options, Revising The Makeup Of The Board Of Trustees, And Revising Language Governing Purchase Of Credited Service.
Strategic Plan Focus
Financial Management and Administration
Body
Staff Recommends: Approval of the attached Ordinance.
Explanation:
SECOND READING:
A vote was held by members of AFSCME on September 9, 2025, resulting in overwhelming support of the proposed changes in the ordinance by a vote of 238-10. A separate vote was held on August 12, 2025, by the eligible members of the City of Hollywood Employees Retirement Fund, supporting the proposed changes to the ordinance by a vote of 432-153. The fifth Whereas clause of the ordinance was revised to indicate these votes have now occurred.
Additionally, certain dates were revised to reflect an effective date of the new pension benefit plans of February 1, 2026. A preliminary Impact Statement from the Actuary is also now attached showing preliminary estimates of savings to the City. The Impact Statement is preliminary pending election by current employees of which of the three retirement benefit Plans they choose to select. The information in the Impact Statement supersedes the information presented in the Fiscal Impact portion of this Staff Summary shown below for First Reading.
It is important to note that adding the two new options actually strengthens the current Defined Benefit Plan, in three ways. First, the unfunded liability is lowered and will be paid off more quickly, leaving more assets to pay for current and future retiree benefits. Second, the funded ratio increases more quickly, indicating a stronger financial position of the Defined Benefit Plan. These first two can be gleaned by reviewing the table on page 9 of the Impact Statement. Th...
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