Winter Springs approves pension changes aimed at improving police recruitment and retention

The Winter Springs City Commission voted June 22 to approve a set of changes to the city's defined-benefit retirement plan intended to make the city more competitive in recruiting and retaining officers and other employees. City manager Kevin Sweet and the city's actuary recommended "Scenario 7," a combination package of enhancements that staff said balances increased benefits with the plan's strong funding position.

The changes considered included increasing the maximum accrued benefit, raising the maximum hours of pensionable overtime for hourly employees, adding unreduced retirement eligibility at 30 years of service regardless of age, changes to a DROP account with a 4% interest credit for three years, and the option of a 2% automatic cost-of-living adjustment for future retirees. City manager Kevin Sweet told the commission those ideas were developed after 15 months of study and comparison with other Seminole County municipalities and the Florida Retirement System.

Residents who spoke before the vote urged caution. Kyle Stewart, who said he lives at 623 Marnie Drive, asked the commission to postpone substantive pension changes until the city adopts a final FY27 budget and until officials can fully account for the possible fiscal effects of a statewide property-tax change expected on the November ballot. "It seems imprudent to be making long-term financial commitments without knowing our projections for next year," Stewart said during public input.

Shelley Jones, the consulting actuary from GRS Consulting who worked on the projection study, told the commission that the analysis presumes the city will fund the actuary-calculated required contribution and that the plan's long-term projections are 30-year forecasts based on the October 1, 2025 valuation. Jones said the incremental net city cost of Scenario 7 is approximately $184,000 in the first year under the assumptions used in the study.

City staff said the pension fund is currently well-funded. "The fund is 100% funded," City Manager Kevin Sweet said, adding that the FY26 budget continues to include a 30% funding target and that the proposed FY27 budget would carry that same commitment. Under staff projections presented to the commission, moving forward with Scenario 7 would raise the city's required contribution to roughly 23.5% (an increase from the current required rate), a change staff said they view as manageable given the plan's returns and the commission's budget strategy.

Commissioner Sarah Baker moved to adopt Scenario 7; Commissioner Mark Caruso seconded. The commission recorded four "Aye" votes (Deputy Mayor Kate Resnick, Commissioner Victoria Bruce, Commissioner Sarah Baker and Commissioner Mark Caruso) and one "No" vote (Commissioner Paul Diaz). The motion passed. Staff said the commission will return with a formal resolution and work with the city's pension attorney to prepare implementation steps, with an anticipated effective date of October 1.

Why it matters: Commissioners said improving benefits is part of a broader strategy to keep Winter Springs' police and municipal workforce competitive with neighboring cities and the county. The city's emphasis on holding a high funded-ratio and setting aside a larger-than-required budget carry (30%) was cited repeatedly as the reason staff believes the package is fiscally sustainable.

Next steps: Staff will prepare a formal resolution for a future meeting, coordinate with the pension attorney on plan documents, and present any implementation timeline or budget adjustments required to enact the changes.

Attribution: Quotes and factual statements in this article are drawn from the commission meeting transcript and from the actuarial consultant and city-manager comments presented at the June 22 meeting.