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Council approves pension changes tied to AFSCME and FOP contracts
Summary
Council approved ordinance amendments to the general retirement system and police pension plans to implement negotiated contract changes for AFSCME and the Fraternal Order of Police bargaining units, including changes to final‑average compensation, contribution rates and COLA provisions.
City Council on April 2 voted unanimously to amend the City of Naples code implementing pension changes negotiated in recent collective bargaining agreements. City Human Resources Director Charlotte Lowell said the ordinance changes implement the pension enhancements contained in the ratified three‑year agreements with AFSCME for general employees and with the Fraternal Order of Police (officers and supervisors). Foster & Foster, the board’s actuarial firm, prepared the actuarial study summarizing plan changes and the required Department of Management Services Division of Retirement impact statements will be filed with the clerk.
What changed: the ordinance amendments update the normal retirement date for certain participants, adjust the formula for final average compensation used in benefit calculations, increase employee contribution rates and add a cost‑of‑living adjustment (COLA) provision in the pension formulas. For the police pension, the ordinance also adjusts the DROP interest rate and increases the benefit accrual rate; staff said the changes apply to employees who retire after October 1, 2024, consistent with the ratified contracts.
Actions and next steps: Council made the approving motions for the ordinances on April 2 and voted in final action; staff will file required paperwork with the Florida Department of Management Services, Division of Retirement, and the pension board’s actuary will finalize impact statements and update plan accounting. Councilwoman Charlotte Lowell (HR Director) said Foster & Foster’s impact statement will be provided at the April 16 reading packet.
Ending: The moves implement negotiated labor agreements and the city said actuarial materials will be circulated to the pension board and filed with state retirement authorities as required by law.
