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 ("DROP") 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.
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 employment upon completion of the DROP.
In a separate but related issue, non-represented (non-union) employees of the City who completed their DROP and have continued working for the City have been in the position of not being able to access their own funds in their DROP account until they separate from the City. And after the DROP period ends, no further interest is earned on DROP account balances, so those employees are and have been in the unfortunate and unfair position of having their own funds tied up, earning no inter...
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