ARS MIAMI LODGE gy FRATERNAL ORDER OF POLICE Verdi 710 Southwest 12" Avenue. Miami, Florida 33130 Phone (305) 854-5019 Ortiz @fopmiami.com Javier Ortiz ‘Thomas Reyes PRESIDENT ‘SECRETARY ‘August 11, 2015 MAEMAIL Mayor Tomas Regalado C/O City of Miami 9500 Pan American Drive Miami, Florida 33133 Dear Mayor Reguiado: it has been brought to my attention that the City Manager has authorized approximately $500,000 in funds to hire part time police officers. With that said, the Fraternal Order of Police is the sole bargaining agent of all polce officers that are ‘assigned to the Miami Police Department. This is something that would have to be bargained. At this time, we have @ valid collective bargalning agreement and there Is no interest to reopen it. | would like to caution our elected officials in buying into this latest "quick fix’ for public safety. The City of Fort Lauderdale will be making payments in the millions to the IRS for a similar part time officer program in which retirees were used. ‘There are tax Implications when hiring retired officers since they are receiving a pension benefit. Also, it must be noted that any Miami Police retiree that decides to enter this program will have their retirement benefits suspended. They will also have to contribute into our retirement plan as if they are a new member. Attached to this correspondence is an pinion letter from Holland & Knight. | understand that there is a significant amount of poltical pressure on this administration to fix our public safety problem. ‘You all need to stop focusing on band-aid approaches and begin to suppor long term solutions. Restore police benefits that you took back in 2010 and make the Miami Police Department compettive. Fix our retirement system and put our ‘agency on the right track. When you can easily transfer $9 milion dollars in surplus to capital, and another $10 millon dollars to the commissioners for special projects, there is no excuse when it comes to restoring our benefits. You all talk @ big game when it comes to making public safety a top priority. Id lke to see our elected officials return that $10 milion dollars to restore police wage and benefits. Actions speak louder than words. Sincerely, ‘Tioutenant Javier Ortiz, President Miami Fratemal Order of Police, Lodge #20Holland & Knight 701 Bcke Avenuo, ute S200 | Mam, F.88181 | T'905:974.8500 | F908.780.7700 Holand & Kright LLP | verwtidaw.com Robert J. Friedman 305-789-7791 robert.sriedman@bklaw.com August 11, 2015 VIA E-mail: dania@miamifipo.org Dania L. Orta Assistant Administrator City of Miami FIPO 1895 Southwest 3 Avenue Miami, Florida 33129-1456 Re: Part-Time Employment Dear Dania: You have asked for our response to the question presented by Amy Klose, the Director of the City’s Department of Human Resources. Ms. Klose advised you that the City's police department wants to hire part-time officers from the current group of reserve officers, most of whom are City retirees and are currently receiving pension payments from the FIPO plan. The question asked by Ms. Klose is whether the retirees” part-time work for the City would, in any way, affect their pension payments from the FIPO plan. We believe that the retirees” part-time work for the City would affect their pension payments in ‘vo ways: 1. Under Section 40-191 of the City Code, the term “Employee” is defined as a firefighter or police officer presently employed by the City. The definition does not make a distinction between full-time and part-time employment. Similarly, under Section 40-191, the term “Police officer” is defined, in part, as any person who is employed by the City. This definition also does not make a distinction between full-time and part-time employment. Section 40-199(b) of the City Code provides in part that “With the exception of persons eligible to decline membership in the retirement system, participation in the retirement system is @ mandatory condition of employment for employees.” Therefore, if a retiree is hired by the police department as a part-time officer, the retiree will be required to become a member of the retirement system. 2, Section 40-203(1)(1) of the City Code provides, “Should a disability beneficiary be restored to or be in service at a compensation equal to or greater than his or her average final compensation at retirement, or should any other beneficiary be restored to service, the following shall apply: a. The retirement allowance of the beneficiary shall cease, he or she shall again become a member of the retirement system and regular contributions shall resume at the rate required by the retirement system” (emphasis added). Therefore, if a retiree is hired by theDania L. Orta Assistant Administrator City of Miami FIPO August 11, 2015 Page 2 police department as a part-time officer, the retiree’s pension payment from the FIPO plan will ‘cease during such employment. Section 40-203(1)(1) also confirms that the retiree will be required to become a member of the retirement system. Please let me know if you have any questions regarding this letter. Sincerely yours, HOLLAND & KNIGHT LLP Robert J, Friedman ce: Steve Cypen 136935919 vi