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Jupiter council approves three‑year police contract and pension memorandum; year‑one cost estimated at $2M
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Summary
Council unanimously approved a three‑year collective bargaining agreement with the Police Benevolent Association and a related pension memorandum; staff projects roughly $2,000,000 cost in year one and long‑term pension changes to take effect in 2030, including removal of a tier and increased use of 1‑85 funds.
The Jupiter Town Council on Jan. 6 approved two interrelated actions to update compensation and retirement arrangements for sworn officers and sergeants. HR Director Ashley Wilson presented Resolution 15‑26, a three‑year collective bargaining agreement (CBA) between the Town of Jupiter and the Police Benevolent Association (PBA) covering the period retroactive to Oct. 1, 2025 through Sept. 30, 2028. Finance Director Scott Reynolds presented Resolution 16‑26, a memorandum of agreement (MOA) addressing Police Retirement Fund changes and longer‑term pension reforms.
Key financial terms presented to the council included scheduled average salary increases of 19.9% in year one, 9.4% in year two and 9.1% in year three, described by staff as a combined average increase of approximately 38.4% over the contract term. Staff estimated the direct cost to implement year‑one compensation changes at about $2,000,000; funding was described as expected to come from operating contingency and year‑end underruns. The CBA also includes an annual step/tenure payment (step 12) of $3,000, which staff estimated would amount to roughly $500,000 over three years, enhanced supplemental retiree health benefits and updated extra‑duty and assignment pay language.
On pension matters, Reynolds summarized changes included in the MOA and upcoming ordinance updates: elimination of the 10% contribution while an officer is in DROP (deferred retirement option plan) and a plan to remove the current tier‑2 pension structure at a later date (targeted for Oct. 1, 2030) with accompanying ordinance amendments to codify the change. The presentation noted existing 1‑85 funds (insurance dollars) that offset town pension costs and a planned increase in the portion of 1‑85 funds the town may use: staff reported the town currently receives roughly $615,000 of the approximately $1,000,000 available annually and that the agreement anticipates increasing the town’s usable share to about $750,000 in 2030 (an added offset of about $135,000).
Councilors thanked staff and bargaining teams for a year of negotiations and acknowledged the fiscal commitments involved. One councilor noted typographical errors in the contract text and suggested cleanup, but the council proceeded with formal votes. Councilor (speaker 3) moved to approve Resolution 15‑26; motion was seconded and carried unanimously. The council then moved and approved Resolution 16‑26 by voice vote.
Town staff noted the contract’s ratification by department membership: voting reported at approximately 84.1% in favor of the contract and 86.1% in favor of the MOA. Council members emphasized the goals of recruitment and retention and acknowledged the council will track budgetary impacts in routine quarterly updates.
The council voted to authorize the mayor to execute the agreements on behalf of the town. Implementation will require ordinance amendments to pension code language in future meetings and continued monitoring of budget impacts.
