WCOM NEWS

7-11-04

Miramar OKs pension plan changes

MIRAMAR--The city's firefighters and police would see adjustments to their pension plans under proposals given initial approvals last week.

For firefighters, the city has tentatively agreed to implement a Deferred Retirement Option Program. This would allow employees to "retire" after 25 years and begin receiving a pension, even though they continue to work for the city for five more years. The pension earnings accumulate in a trust account with tax-deferred earnings.]

Meantime, police, who would continue with the current retirement plan, would get pension perks for overtime work.

Commissioners on Wednesday night voted 5-0 to allow firefighters to work for the city for the additional five years. Usually when firefighters put in 25 years on the job, they must quit and start all over again to receive additional pension benefits.

For experienced employees who stick around, DROP makes for a bigger payout.

"For the firefighters, it gives us an additional option to stay on a few years," said Jay Gillette, secretary of the Miramar Firefighter Pension Fund. "I started working for the city when I turned 19 years old. DROP enables me to work a little bit longer and save money for things like health care."

He said the state-run program would benefit the city because employees are not eligible for disability and the city does not contribute to a retirement fund for those in the program.

The union has agreed employees would pay for the initial 0.47 percent increase in pension costs -- or 8.47 percent of their paychecks, every two weeks. But the union has not agreed to pay for future DROP program cost increases.

City commissioners also tentatively voted 5-0 for a plan to allow Police Department employees to contribute money into their pension fund for up to 100 hours of overtime.

"It's something that's long overdue," said Tim Nevins, president of the Miramar chapter of the Police Benevolent Association. "It's good for the Police Department and doesn't cost the city anything."

The employee contribution into the overtime pension plan would be paid by the membership, but the city's contribution would be paid by the Florida Statute Chapter 185 fund.

City Manager Bob Payton said the Internal Revenue System mandates the reallocation of the money.

A final vote on both items is set for Sept. 1.

(source) Sun Sentinel (Lori Sykes) 7-11-04)