Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Regarding Supplemental Distributions Made By The City's Pension Boards; Finding An Immediate Danger Or The Compromise Of Significant Legal Rights If A Court Proceeding Does Not Take Place Before The Florida Governmental Conflict Resolution Act Is Complied With.
Body
Staff Recommends: Approval of the Resolution.
Explanation:
Each of the defined benefit pension plans sponsored by the City of Hollywood - general employees, fire and police - provides for the pension board to make a supplemental distribution to eligible retirees when the rate of investment return on the assets of the pension fund exceeds a certain percentage. Supplemental distributions are governed not only by the pension plans but also by Florida Statute Section 112.61. Each of the City's pension boards (collectively, the "Boards") has made one or more supplemental distributions totaling millions of dollars which, in the opinion of the City Attorney, violated Section 112.61 and/or the applicable pension plan. Those supplemental distributions have had the effect of increasing, by millions of dollars, the City's annual required contributions to the pension plans.
On July 8, 2015, the City Commission adopted Resolution No. R-2015-214, which authorized the filing of one or more civil actions against the Boards and any other appropriate parties to enforce the City's rights with respect to supplemental distributions made by the Boards. Florida Statutes Chapter 164, known as the Florida Governmental Conflict Resolution Act (the "Act"), creates lengthy procedures (the "Chapter 164 Procedures") that must be complied with prior to the filing of a civil action by one governmental entity against another governmental entity, unless the first government entity, by a three-fourths vote of its governing body, finds that an immediate danger to the health, safety, or welfare of the public requires immediate action, or that signif...
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