C01 Proposal to FOP (Patie) February 7, 2017 (Revision 2) (hike PYftlcrene antl Cos Chiet Negotiator (Giet Wegetator TENTATIVE AGREEMENT for (Police officers and Sergeants, Lieutenants and Captains) This constitutes the City of Jacksonville's complete proposal regarding wages and pension for ful time employees of the FOP (all Poe units, excluding al unit corrections offers, sworn bailiffs and judicial officers. Tls proposal accepted as set forth herein, shal ‘become effective only upon the occurrence ofeach contingency set forth in Seaton Iv Below wastes Increases follows: All active fulltime unit employee shal receive w Fiscal Year 2017, (One-time lump sum consideration: 3% ‘This lump sum consideration wil be equal to three percent (3%) of the bese ‘eges excliding any specie pay ems, and wil be taxed for Medicare and FIC, it applicable. The lump sum consideration wil be payable upon this proposal becoming effective, which shall not occur until the occurrence of each contingency st forth in Seton IV below, Fiscal Year 2048 effective October 1, 2017 Wage ncrease: 6.5% Fiscal Year 2019 effective October 1, 2018 Wage increase: 6.5% Fiscal Year 2020 effective October 1, 2019, Wageincrease: 7% Wage increases wil evse the base wages for active employees and adust the ‘wages for each step inthe step schedules by the wage increase percent. Each base wage ajustment will mpact all items that are drven/eaeuated bated on age oftCO) Proposal to FOP (Police) February 7, 2017 (Revision 2) COI Chief Negotiator GhieFNegotat ‘wages including but not necessary limited to, penson, Meticare, FICA, overtime life insurance and some special pay, . penRemenr ‘A. Defined Benefit Plan for POLICE and FIRE Unit Employees Hired BEFORE (october 1, 2017 1. Contibutons. All active, fulltime Police and Fire unit employees hired before October 1, 2017 and enrolled in the Citys Defined Senefit reticement plan wil remain in that plan. Allsuch employees willncrease ‘thei contribution to the plan fom eight percent (8%) to ten percent (10%), oF wil continue to pay ten percent (20%), of ther eamable compensation beginning on October 2, 2017. Additionally, on and after ‘October 1, 2017, employees enrolled in the Defined Benefit plan wil ‘remain in that plan and may not switch tothe Defined Contribution pan, 2. Benefits. The benefits for all active, fulltime Police and Fire unit ‘employees hired prior to October 1, 2017, (otherwise known as Group 1 and its sub-groups and Group 2} wll be consolidated. Such employees wil receive the same retirement benefits, including debility and death benefits, as those members previously classified a¢ “Group 1 members vith 20 or mare years af rele service as of lune 19,201," incuding: = DROP eibilty with an 8.40% annual rate of return Cost of Living Adjustment (COLA) of tree percent (3%); = Time service retrement benefit determined by 2 Final AveroBe ‘Compensation of 52 pay perods (based upon wages including an unlimite shit diferent) immediately roe to retirement; Vesting ater 5 yeas of creed servic; Page 2of2201 Proposal to FOP (Paice) February 7, 2017 (Revision 2} rire fillies cet CS “Annual Bension Compensation benefit is only limited by Internal Revenue Code (5); Accrual Rate: 3% fr fist 20 years 2% for upto 10 more years; Normal Retirement at 20 years The Defined Benefit plan wal be closed to any employee who begins ‘employment as fulltime Police Ofcer on October 1, 2017 or therester, unless such employee i 3 returning member of the Defined Beneft plan who has let his/her contributions in the pla. 8. Defined Contribution Plan fora FOP Police Employees hired on or after October 1, 2017 fon or after ‘ny employee who becomes 2 fulltime unit emlov ‘tober 1, 2017, and is nt 2 qualified returning employee, wil be enrolled in & Defined Contnbution reticement plan administered by the ity notwithstanding any previous employment by such employee wth the consolidated government ‘orany ofits independent agencies. With input rom the bargaining unt the City wil select, through its procurement process, and manage a third party fund ‘manager. General administrative pln fees willbe pad bythe iy. Fees charged + individual accounts wil be paid by the individuals. The terms ofthe Defined Contribution plan area follows contribution Employee Contribution 10% Employer Contribution 25% Vesting Upon leaving Cty employment, Defined Contribution plan members will be entitled to 100% of thei oun conteibutions and earings and wil entitled Page 3028C0) Propesato FOP (Poi) February 7, 2017 (Revision 2) (CO chet Negetitor ‘eT Negonsor to the folowing percentage of the Employers contribution and earnings after ‘the indicated number of years of serie: months of service 25% year of service 50% 2 yeas of service 15% 3 years of sere 300% fully vested) Financial Counseling ‘The City wil, a its own expense, arrange for all unit members of the Defined Contribution plan to meet with 3 financial advisor to provide financial counseling thre times during each members career. These meetings wil occur (a) when the member en the inl taining academy; (2) atthe members 10 ‘year anniversary; and (3) at the member's 20 year anniversary Disability and Survivor Benefits ‘The following Diabilty Senefits and Surdvor (Death) Bonefts are ‘ential othe Group 14 Police and Fre Disability Benefits and Survivor (Death) Benefits. Disability Benefits Al etive, fulltime unit employees who are permanenty and totaly sable from useful and efclentserice as 2 police officer, as established by competent medical evidence, willbe entitled to disability benefits equal to ssty percent (60%) of the average salary ceceived by the member for the 52 pay periods immediatly preceding the time of dsabilty An anoua, three percent (35) COLA wil spel. Adtonaly, the employee will receive a supplemental ‘benefit of $5 per month fr each year of actual credited servic, which willbe no less than $25 or more than $180 per month ope 42C0) Proposal ta FOP (Poti) February 7, 2017 (Revision 2) Col Chet Negotiator ier Negotiator ‘Sunvivor Death) Benefits In the event ofthe death of an active, fulltime unit employes, (2) the surviving spouse, oF (2) unmarried, orphaned children under the age of 28 years wil receive @ benefit equal to seventy-five percent (75%) of the sum of sixty peccent (60%) plus an addtional 2% for each ful year of sevice in excess of 20), (of the average salary received by the member for the 52 pay periods Immediately preceding the employee's death, An annual three percent (3%) COLA wl apy Iv there i 9 surviving spouse, each child of the deceased fulltime unit ‘employee will receive $200 per month uni the child reaches age 18, or age 22 if 1 ualfied student, or untl the child macied. The total surviving benefit of spouse and children will not exceed ssty percent (60K), plus an additonal 2% {or each fl yoa of service in excess of 20, ofthe average salary recived by the member for the 52 pay periods immediately preceding the employee's death, and wil result la the survivors’ benefits being prorated. An annual, three percent 3%) COLA wll app. there is no surviving spouse, ach ch of the deceased fultime unit employee under the age of 18 wil receive the greater of $200 per month ora proportionate share of the surviving spouse's benefit (described above), until, ‘each child reaches age 16 or becomes married. If there is no surviving spouse, leach child of the deceased employee who is age 18 or over and who He & qualified student wil reelve $200 per month unt the child reaches age 22 or becomes maried. I there is no Surviving spouse, each child of the deceased ‘employee who is ssabled and reaches age 18 wil receive fifty percent (50%) of the benefit otherwise allocable tothe surviving spouse, during the presence of the asabing condition. An annual, three percent (3%) COLA wil apply Adatonal, the survival benefit wil include a Supplemental benefit of $$ ‘er manth for each year of actual credited service, which wl be fo less than $25 ‘ermore than $150 per month Pages oft0) Proposal to FOP (Poi) February 7, 2017 (Revision 2) = Catch eget it Nestor If death benefits ae paid to any survive, such benefits wil be in ew of the payment of the employee's contributions and earnings to the Defined Ccantibution Plan, and any employer contributions and earings to which the employee had a vested ight In the event that 2 deceased employee's qualified survivors decline the benefits described above, the deceased employee's designated beneficiaries wl receive the employe’s contributions and earnings to the Defined Contribution Plan, and any employer contributions and easing to which the employes had 3 vested ight Disability and Survival benefts wil be administered consistent with current restrictions. i, ADOMONAL TERMS A tobe Contained inthe I i “2 ‘he follow language is agreed to by the partis, and shall be contained in the Implementing ordnance ofthe pension surtax: (2) Nothing inthis section shall be construed to imple the rights provided under Aicle 1, Section 6 of the Florida Constittion oF (Chapter 447, Fonda Statutes; (2) Nothing herein shal be construed to waive the City’s or the certied bargaining agent's right to demand collective bargaining ‘as authorized under Floris law and (3) The City and any authorized certified bargaining agent shall, have ll of the rights and be subject tothe provisions of Chapter 407, Florida Stattes, including but not limited to the requirement for negotiations, the term limitation set forth in Section 147 209(5), Florida Statute, and the impasse process, provided however thatthe Cty shall not unifateraly alter the retirement benefits of members of the defined benefit plan or members of the defined contribution plan, as authorted by Section 447.403(e(é), Flecida Statutes, for a period of 3 years from Page bof tt0) Proposal to FOP (Police) February 7, 2017 (Revision 2} Colchiet Negoiatse ieFnegoh ator (October 2, 2017, and such period shall automatically extend for two additonal year periods, and one addtional 1-year period, Lunde the following ccumstances If the fiscal contin of the economy for the City of Jacksonville, a6 determined and certies in writing by the City’s Director of Finance and Administration, within 90 days after the termination ofthe fist 3.year period, and, if applicable, within 80 days after the termination of the second 3-year period, and, i applicable, within 50 days after the termination ofthe third 3-year erod, meets the following 2 requirements (a) The average annual growth rate of the city of Jacksonvil’s total shate of sd valorem revenues collected for Dual County fr the theee most recent fal yar is no less than 25%, as provided in writing by the City’s Dvector of Finance and Administration. For the purposes of this subsection, during 2 particular fiscal year, if) theresa milage rate reduction, end i) the 25% threshold is not met, that particular fiscal year shall not be counted as part of the three most racent fiscal year average and Instead only the eemaining non-efected fiscal yers shall be used to caleulte the average anual growth rate annual 2°85 (b) The time-weighted, average seveheturn on investment for the Police and Fire Pension Fund for the three most recent fiscal yearsisno less than the actuarial asumad rate of return, less 1% a5 provided in writing by the Palice and Fire Pension Fund investment consutant. ‘The three most recent fiscal years shall be the three fiscal years terminating pir to oF during the S0day period) noted in this subsection ‘The automatic extensions) above shall not take effect ifthe certfied collective bargaining agent declares an impasse on Fetiement benefits age 7 oftC01 Proposal to FOP (Police) February 7, 2017 (Revision 2} cor ill Neg = TrietNegckator ‘Shanter Funds ‘Now that 9 long-term funding slution is identified, Its agreed by the partis thatthe Cty and the Police and Fie Pension Fund wil no longer make the addtional UAAL payments set forth in Ordinance 2015-3046 a6 these payment obligations were 2 placeholder for 2 long term solution to the unfunded lablty. The “Pension Uabity Sutax” adopted by the Stat of Florida ‘and passed by local referendum will now serve the purpose of addessng this Effective October 1, 2017, a retum for reassigning (1 ll future Chapter 185 proceeds for FOP’ legal use; and (2) 20% of the balances, together with interest ‘thereon Inthe Unfunded Lnbifty Payment Account (UALPA, and Supplemental Payment Account (SPA) tothe Fund for FOP’ legal use is agreed that the remaining balances, together with interest thereon, in the City Budget Stabiizaton Account (CBSA), Enhanced Senefit Account (EBA), Unfunded Lsbity Payment Account (UALPA), and Supplemental Payment Account (SPA) shall be applied to the City’s Actually Oetermined Employer's Contribution [ADEC) forthe year) selacted bythe Cy. Goth the City and the FOP agree to ‘not inate any changes tothe balances of those funds. tn summary, this proposal: 1) Cancels the immediate addtional ability payments in light of the long term solution being dented; 2) Effective Oeober 2, 2017, reassigns 20% ofthe accumulated balances Inthe UALPA, and SPA to the Fund for FOS legal use, and the remaining balances of the UALPA, SPA, CBSA, and EBA to the City's ADEC, and; 3) effective October 2, 2017, eassign all future Chapter 185 revenues ta the Fund forthe FOP’ legal use. Page sof ttOu Proposal to FOP (Poi) February 7, 2017 (Revision 2) Co) Chet Negotinar Ghiet Negstatl C Rewoaeity of 1) Police unit members who entered DROP as members of pension {aroup 18 or 1C willbe made whole as far 35 COLA and 8.4% DROP Interest, as they never et Group 1A 2} Police unit members who have retired since June 19, 2015 willbe retroactively compensated with a 3% COLA, as if they never left the plan 2. Reopeners xcept forthe wages and pension benefits expressed herein, the Cty agsees to reopen negotiations during the fist year of this agreement to negotiate other terms and conditions of employment including, but not limited to the following propossts: 1) £00 proposal that all members who are currently appcinted wil retice at ther highest Ci Service attained rank: 2) Heath insurance issues; and 3} Voluntary individual Employee Benefit Contracts IV. CONTINGENCIES AND EFFECT » ‘This proposals contingent upon: This proposal, when accepted, supersedes and repudiates all previous reticemant baneft agreements and past practices inuding but not limited to ‘the 2015 Retiement Reform Agreement (effective on or about June 19,2015) ‘and the Parties and the Police and Fire Pension Soard of Trustees shall succetstuly dissolve the 2015 Retirement Reform Agreement and all actions necessary to cissolve it shall be accomplished; Page 9thC01 Propesalto FOP (Polis) February 7, 2017 (Revision 2} con 7 web Fiat weadtator a 3 4 3) 4 a In the event that Section 232.055, Fla Statutes, is succesfully challenged {upon the cenditon of a final judgment by a Fourth Juda Circuit Judge) before ‘october 2, 207, then none af the wage or retirement benefits described inthe City’s proposal will ga into effect and the agreement wil be dissolves. should ‘this condition occur, the partes shal ener collective bargaining negotiations ver woges and benefits within 30 days. In the event that Section 212.055), Flori Statutes, successful challenged (upon the rendition of a final judgment by 2 Fourth Judicial Circuit Judge) after ‘october 3, 2017, then any future wage increases described Inthe G's proposal that have nat been realized will not occur; however any wage increases and benefits that have been realized atthe time the lawsuit resolved against the City wil remain intact, inuding the October 1, 2017 wage increase, the one- time lump-sum payment, and the consoldation of defined benefit plan participants. should this condition occur, the parties shall enter collective bargaining negotiations over wages within 30 days; “The tatifcation ofthis proposal by the Cty Counc the closure ofthe current Defined Benefit retirement plan to employees hired on or ater October 1, 2017 and the realization and continued benefit of the terms of hall-cent sales tax ‘eferendum and implementing legislation; ‘This proposal must be accepted on or before February 11, 2017. H not acepted con or bore February 11,2017, itis withdrawn; The Parties agree to take all necessary actions to effectuate this Agreement pursuant to Chapter 447, Parti; ‘on or before March 15,2017, the bargaining unk shall atiy the agreement, and ‘any necessary approvals by the PFPF shal have occurred. On or before March 33,2017 the Cty shall submit the agreement to the City Council for atifetion; ‘Allbargining units within thee applicable Pension Fund must have agred tothe ‘Same new Defined Contribution Pon for new employees effective October 1, Page af 1801 Proposal to FOP (Paice) February 7, 2017 Reision 2} oe biti. Gri egoriator 2017, which must be ratified by the Cty Counc, including City Counc approval of an implementing ordinance; and 18) Allbargtining nits must agree and understand that any existing ordinance code ‘which contradicts this agreement willbe changed to effectuate and coincide with this agreement 8... CB) Additional Lenguage | Tt is understood the city Will leave their monies ia the Accounts of Yhe Police and Fire Pension Fund, “These monies will be credited ty the City by the PFPF te emake here payments Canc) in Phe amount Chosen by the Cry ach Year. Tt ig also understood if tris AGCeomant 15 determined +n violate any Tas tax ovles or Causes & negative tac implication for the Rad or membecs of Fhe Find bows patties Gace +e fe Open ~Hhis aagcoament, The Ce opening F the agcee ment will be for The Sele purpose of Correcting ang Degachve +94 Implication oF TRS cule vidle-tion, Page a of