Overview city of Jacksonville pensions

Laws Governing Jacksonville Pensions State Laws Chapter 112, Part VII – Actuarial Soundness of Retirement Systems Chapter 175 – Firefighter Pensions Chapter 185 – Municipal Police Pensions Chapter 212.055(9) – Pension Liability Surtax Local Laws Article 16 – Retirement and Pension Benefits Article 19 – Employee Relations Article 22 – Jacksonville Police and Fire Pension Board of Trustees Chapter 120 – General Employees and Corrections Officers Retirement Plans Chapter 121 – Police and Firefighters Pension Plan City Council Rules Chapter 4, Part 12 – Collective Bargaining

COJ Pension Funds General Employees Pension Fund (1937) Correctional Officers Pension Fund (created within the GEPF & administered separately by the BOT) Police and Fire Pension Fund (1937)

Unions City JEA JHA Police and Fire ASFCME CWA JSA LIUNA FOP – Corrections, Judicial Officers and Bailiffs JEA IBEW PEA JHA Police and Fire FOP – Police Officers through Sergeants / Lieutenants through Captains IAFF – Firefighters through Captains / District Chiefs

Role of City Council During Collective Bargaining: During Impasse Acts as a legislative body Consults with executive team in executive session Approves or rejects agreements negotiated between the Mayor and the Unions During Impasse Acts as a quasi judicial body Determines the outcome of the dispute between the Mayor and the Unions

Pension Legislation Timeline Historical Information Regarding the city of Jacksonville's pension plans

Original Agreement (1992) Original Agreement Enacted: August 1992 Mayor Austin Ordinance: 91-1017-605 1st Amendment Enacted: June 1993 Ordinance: 93-299-329 2nd Amendment Enacted: April 1996 Mayor Delaney Ordinance: 93-1983-1407 3rd Amendment Enacted: August 1998 Ordinance: 97-1103-E

Original Agreement (1992) Original 1992 Agreement resolved litigation between the PFPF Board and the City relating to the City’s contribution rates and management of pension funds. Commences the PFPF Board’s involvement in negotiating pension benefits. The 1992 Agreement and its Amendments established the base benefits from which the benefits in the future agreements were based.

Restated Agreement (2001) Restated Agreement Enacted: February 2001 Mayor Delaney Ordinance: 2000-1164-E 1st Amendment Enacted: April 2003 Ordinance: 2003-303-E 2nd Amendment Enacted: March 2004 Mayor Peyton Ordinance: 2003-1338-E 3rd Amendment Enacted: May 2006 Ordinance: 2006-508-E

Restated Agreement (2001) The Restated Agreement and the Amendments thereto were negotiated between the City and the PFPF Board. This 2001 agreement and its amendments were often referred to as the “30 year agreement.” After approximately 5 years, attempts were made to renegotiate the terms.

Lawsuits The so-called “30 year agreement” the amendments thereto and a 2013 mediated settlement proposal were the subject of several lawsuits and all thrown out: Randall Wyse et al. v. City of Jacksonville Alleged violation of the terms of the Restated Agreement when attempts were made to renegotiate pension benefits (Complaint filed 2/4/2013) Frank Denton v. Mayor Brown, et al. Alleged the mediation in the Wyse case violated the sunshine law (Complaint filed 6/6/2013) Resulted in the appellate court affirming that the PFPF Board was collectively bargaining for the Unions and the original settlement in Wyse was void ab initio (i.e., to be treated as invalid from the outset) (Hon. W. Wallace SJ Order – 12-31-2013; 1st DCA aff – 10/21/2014) Florida Supreme Court declined jurisdiction and denied a petition for review (Fl Sup Ct – 2/24/ 2016) Curtis Lee et al. v. City of Jacksonville, et al. Alleged the Restated Agreement and Amendments thereto were illegal (Complaint filed 6/3/2011) Court declared Restated Agreement void ab initio as well (Hon. T. Beverly SJ Order – 3/24/2015) Appellate court affirms in per curiam order (i.e., ruling issued by multiple judges acting collectively and unanimously) (1st DCA aff – 4/6/2016)

Mayor Peyton’s Pension Reform Proposals Ordinance: 2011-399 Amending Chapter 120 General Employee’s Pension Plan Enacted contingent on 2011-400 Ordinance: 2011-400 Amending Chapter 121 Police and Fire Pension Plan Withdrawn by Mayor Brown Neither Ordinance went into effect after Mayor Brown took office.

Pension Reform Task Force Mayor Brown created a Pension Reform Task Force which met to discuss and, ultimately, propose recommendations regarding pension reform. A comprehensive report was issued on March 19, 2014. The recommendations were considered in further reform efforts. Mayor Brown initiated negotiations regarding pension benefits which led to the Wyse litigation being filed.

Mayor Brown’s Pension Reform Proposals 2013-366 Sought approval of mediated settlement agreement in Wyse litigation. Denied by Council July 23, 2013. Ultimately, agreement upon which it was based was found void as a result of Denton litigation. 2014-386 Sought approval of the 2014 Retirement Reform Agreement negotiated in public meetings with the City and the Board. Approved by Council (substituted and amended, December 9, 2014). PFPF Board approves with counter-proposal amendments; Thus Ordinance 2014-386 becomes null and void. 2015-54 Counter-proposal from PFPF Board drafted into a new ordinance for Council consideration. Denied by Council March 25, 2015.

2015 Retirement Reform Agreement Council Member Gulliford introduces Ordinance 2015-304 on April 28, 2015. Council’s counter-proposal back to the Board. Approved by Council on June 9, 2015. Subsequently adopted by the PFPF Board. Current terms of Police and Fire Pension benefits.

Mayor Brown’s Proposed Funding Sources Ordinance: 2015-150 Interlocal Agreement with JEA paying the City $120,000,000 Withdrawn July 28, 2015 Ordinance: 2015-151 Interlocal Agreement with JEA authorizing a Bond Agreement No permanent funding source was secured for the 2015 Retirement Reform Agreement.

Mayor Curry’s Pension Funding Solution Laws of Florida Chapter 2016-146 House Bill No. 1297 Signed by Governor: 3/25/2016 Authorizes pension liability surtax Ordinance: 2016-300-E Enacted: 5/10/2016 Establishment of surtax and placement on the ballot 2016 Primary Election August 30, 2016 Referendum on Pension Liability Surtax is passed by voters 65.11% Yes, 34.89% No

Defined Benefit Plan Closure & Funding Source 2017 Retirement Reform Defined Benefit Plan Closure & Funding Source Implementation of the pension liability surtax requires several steps to become effective, primarily accomplished through traditional collective bargaining. Collective bargaining commences with Unions entering into Tentative Agreements with the City to close defined benefit plans. Legislation enacting the agreements anticipated to be filed March 2017. Requirements to implement PLS include: • underfunded plan is below 80% of actuarial funding, • closing of underfunded plan, • 10% employee contribution min for underfunded plan, • BOT for the plan is prohibited from participating in the collective bargaining process and engaging in the determination of pension benefits, • Subject county currently levies an infrastructure surtax scheduled to terminate and pension surtax takes effect upon termination of infrastructure surtax.