Board told city ordinance didn’t include trustees’ requested DROP changes; counsel explains collective-bargaining constraints

Ron, the board’s attorney, told trustees that the city passed an ordinance altering the police pension plan but omitted changes the board had requested related to DROP (Deferred Retirement Option Program) withdrawals. He explained that, under Florida state law and relevant Florida Supreme Court precedent, pension benefits are considered terms and conditions of employment and cannot be unilaterally changed by management if a bargaining unit raises the issue.

Ron advised two practical paths: negotiate the change with the certified bargaining unit or secure a written waiver from the union consenting to the modification. He said parties sometimes mutually waive collective bargaining to implement changes more quickly, but cautioned that waiver disputes often arise. Trustees discussed whether the city should approach the unions to request a waiver for specific DROP-distribution language and asked staff to continue coordinating with the city and unions as appropriate.

Brad Cassell emphasized the board’s practical concern about administrability: without clear mechanics and systems to track variable returns, he said the ordinance language was difficult for staff to administer and could lead to errors in benefit payments. Board counsel committed to follow up with city negotiators and to report progress at the next meeting.