Council orders staff survey on Florida Retirement System; debate exposes tight split

The Destin City Council directed city staff to survey municipal employees on whether they want the option of participating in the Florida Retirement System (FRS) — which would also require Social Security participation — and, if the option were available, whether they would choose FRS. The instruction followed a 30‑minute presentation by Kathy Gould of the Florida Division of Retirement and a lengthy council debate.

Kathy Gould, identified as an FRS representative, explained the program’s defined‑benefit and defined‑contribution options, the DROP program, funding status, an assumed investment return rate and the health‑insurance subsidy for retirees. City staff and council members pressed for the budgetary impacts on a small municipality; staff estimated the worst‑case employer cost (if all eligible employees switched) and explained the separate Social Security employer portion would increase municipal payroll taxes.

Council members voiced differing priorities. Supporters said giving employees a formal choice would help recruitment and retention; opponents said prior council votes and previous staff communications meant the matter had been decided and warned that re‑opening the question risked second‑guessing an earlier vote. The council ultimately directed staff to run a two-question employee survey: (1) whether employees want the option to participate in FRS (and Social Security), and (2) if the option were available, whether they would opt into FRS.

City staff said budget planning already models the “worst‑case” fiscal impact (everyone switching) and can refine estimates if the survey shows meaningful interest. Staff also offered to provide comparative information from the city’s current Thrift/401(a) plan and to make the FRS presenter available for employee Q&A.

Council members emphasized clarity: the questions must be specific and accompanied by explanatory materials so employees make an informed choice. The council did not change the city’s current retirement plan at the meeting; the vote authorized only the staff survey and information campaign.