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Board attorney: pension restatement largely editorial; state and federal updates noted
Summary
Board Attorney Pedro Herrera said the pension restatement is a rewrite without substantive benefit changes, will move through the city’s legislative process and that an actuarial impact statement should be immaterial; he also summarized state-level proposals and the recent federal Social Security Fairness Act.
The board’s attorney described the pension plan restatement as a largely organizational rewrite rather than a change to benefits and told the board staff and city counsel will shepherd it through the legislative process.
Pedro Herrera, the board attorney, said the draft restatement had been reviewed and that the board’s requested language appears to be included. He told members the actuary will prepare a requisite impact statement for the local legislative body and that, because the restatement does not change benefits, “the impact should be 0 or immaterial.” A trustee pointed out a typographical error on page 13; Pedro confirmed the typo would be corrected and said no additional board motion was required at this time.
Herrera also gave a legislative update. He said he has not seen state-level bills that would affect this local plan but noted the Florida Retirement System is discussing reinstating a 3% cost-of-living adjustment for some members. At the federal level he said the Social Security Fairness Act was enacted Jan. 5 and repealed the Windfall Elimination Provision and the Government Pension Offset, measures that had reduced Social Security for some public retirees; Pedro observed the local plan contributed to Social Security and thus would not be directly affected.
Next steps: staff and the city attorney’s office will continue to process the restatement through the city’s legislative steps and the actuary will provide the formal impact statement.
