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Item #07 Police & Fire Pension & Disabilty Presumption Reform the meter of YGood Lip AGENDA ITEM COVER SHEET Meeting Date: January 3, 2012 Item # 7 Reviewed By: Contact Name: Craig Shadrix Department Director: Contact Number: 1081 City Manager: Subject: Background Summary: The Florida League of Cities has requested all cities to adopt a resolution for the 2012 Legislative Session supporting police /fire pension and disability presumption reforms. The attached draft resolution supports reforms to police /fire "heart /hypertension" disability presumptions, which impacts all cities receiving police or fire service in workers' compensation and other costs. Issue: If the City of Ocoee is in the Chapters 175 or 185 programs and the city has not yet adopted a resolution supporting reforms, it should consider adopting one as soon as possible. Recommendations Adopt a Resolution now supporting police /fire pension reform. One of the top legislative priorities for the Florida League of Cities is reform of city police officer and firefighter pension plans and disability presumptions to make the pensions sustainable, sound and secure. Because the legislative session begins on January 10, 2012, cities should adopt resolutions immediately. Legislators must hear directly from their cities on the importance of adopting this legislation. Florida cities need to let their legislators know that their city supports HB 365 and SB 910. Attachments: Resolution is attached. Financial Impact: Not known. Type of Item: (please mark with an "x") Public Hearing For Clerk's Dent Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing X Resolution Regular Agenda Commission Approval Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Reviewed by 0 N/A 2 Short Version: Draft Resolution on Police and Firefighter Pension and Disability Presumption Reforms 2011 - A RESOLUTION OF THE [CITY/TOWN/VILLAGE OF ] SUPPORTING POLICE OFFICER AND FIREFIGHTER PENSION PLAN AND DISABILITY PRESUMPTION REFORMS TO MAKE THE PLANS SUSTAINABLE, SOUND AND SECURE FOR CURRENT AND FUTURE POLICE OFFICERS AND FIREFIGHTERS. (Please add any additional information specific to the City/Town/Village) WHEREAS, to honor their service now and in years to come, current and future police officers and firefighters in the [City, Town, Village of ] deserve pension plans that are sound, secure and sustainable; and WHEREAS, [City, Town, Village of ] opposes unfunded mandates from the Florida Legislature that have created a pension plan system for local police officers and firefighters that is unstable, unsustainable and unreliable for current and future police officers and firefighters; and WHEREAS, the Florida Legislature has imposed significant unfunded mandates onto the [City, Town, Village] relative to the operation of the [City's, Town's, Village's] police officer and firefighter defined benefit pension plans by mandating minimum pension benefit levels and mandating the use of revenues to fund pension plan costs; and WHEREAS, the Florida Legislature has provided that health conditions related to heart disease, hypertension or tuberculosis suffered by a police officer or firefighter are presumed to be job related, and these "disability presumptions" are applicable to both workers' compensation and disability pension claims; and WHEREAS, the Florida Legislature has written and the courts have interpreted the disability presumption laws so favorably toward these employees that cities and other government employers basically cannot overcome the presumption and show the health condition was not work related; and WHEREAS, the Florida Legislature transferred all operational and administrative control of police and firefighter pension plans from the [City /Town/Village] to a legislatively created board of trustees, a separate legal entity apart from the [City, Town, Village] that exercises broad powers outside the [City's /Town's/Village's] control, and is not required to provide fiscal transparency or accountability for substantial amounts of public funds; and WHEREAS, the [City, Town, Village] is seeking immediate mandate relief from the Florida Legislature and requests the Legislature to untie its hands so that it can responsibly address its pension and other personnel issues locally and in a manner that best serves its taxpayers, stops potential pension abuse and protects pensions for current and future generations of police and firefighters. NOW, THEREFORE, BE IT RESOLVED BY THE [COUNCIL /COMMISSION] OF THE [CITY/TOWN/VILLAGE OF ], FLORIDA: Section 1. That the [City / Town/Village] hereby supports responsible police and firefighter defined benefit pension and disability presumption reforms to ensure sound, secure and stable pensions will be there for current and future police and firefighters. Section 2. That the [City /Town/Village] believes local issues should be addressed locally and hereby requests the Florida Legislature to remove itself from the local collective bargaining process between the [City /Town/Village] and its police and firefighters. Section 3. That the [City /Town/Village] hereby requests the Florida Legislature to remove mandates establishing minimum pension benefit standards for police and firefighter pensions, remove the requirement to provide new, extra pension benefits to police and firefighters, and allow the [City /Town/Village] to use insurance premium tax revenues to pay for the level of pension benefits for police and firefighters that meets the needs and priorities of the [City/Town/Village]. Section 4. That the [City /Town/Village] hereby requests the Florida Legislature to enact responsible reforms to bring a fairer balance to the application of disability presumption laws relating to certain health conditions suffered by firefighters and police officers by requiring a police officer or firefighter to meet age and employment standards, allowing a disability presumption to be overcome by a preponderance of the evidence, and allowing certain individual risk factors to be considered when applying a disability presumption, such as tobacco use, weight and diet, genetics and lifestyle choices. Section 5. That the [City /Town/Village] hereby requests the Florida Legislature to impose reasonable fiscal transparency and accountability standards on legislatively created police and firefighter pension boards of trustees. Section 6. That the [City /Town/Village] urges the Florida Legislature to pass and the Governor to approve the above responsible pension reform recommendations relating to police and firefighter pension plans and disability presumptions in the 2012 legislative session. Section 7. That the [City /Town/Village] Clerk is directed to transmit a copy of this resolution to Governor Rick Scott, the Florida Legislature, and the Florida League of Cities, Inc. Section 8. That this resolution shall be effective upon adoption. PASSED IN OPEN AND REGULAR SESSION OF THE [CITY COUNCIL/ COMMISSION OF THE CITY/TOWN/VILLAGE OF ], FLORIDA, THIS DAY OF , 2011. Version: 11/28/2011