Coversheet


CITY OF RIVIERA BEACH CITY COUNCIL AGENDA ITEM SUMMARY

Meeting Date:	8/29/2016
Agenda Category:

Subject:

DISCUSSION OF THE DEFERRED RETIREMENT OPTION PLAN (DROP).

Recommendation/Motion:

Originating Dept	EXECUTIVE DEPARTMENT	Costs
User Dept.	VARIOUS	Funding Source
Advertised	No	Budget Account Number
Date
Paper
Affected Parties	Not Required

Background/Summary:

Deferred Retirement Option Plan (DROP) was approved in the City of Riviera Beach in May 2009. In order for any employee to enter DROP, the employee must first be eligible for retirement.

The initial General Employee DROP Ordinance 3065 (2009) limited an employee’s participation to five (5) years in DROP with no more than 30 years of service to the City. At DROP initiation, employees with more than 25 years of service had a 90 day window to enter the DROP. Any member who does not make an election within the (90) day period may do so at a later date, but will be limited to the period remaining until their 30^th year. After such they could no longer enter DROP.

The amendment to Ordinance 3086 (2011) increased a DROP participant’s service time to the City from 30 years to 35 years of total service to the City. This adjustment permitted all qualified General Employees to participate in the DROP for the maximum five (5) years without exceeding the maximum allowed of 35 years of service (35^th year).

Benefits of DROP

· Employee monthly pension benefits are less, because it is fixed at the time they enter DROP

· City no longer contributes to the pension plan for an employee in DROP

· DROP is an additional incentive for recruiting and retaining employees.

Fiscal Years
Capital Expenditures
Operating Costs
External Revenues
Program Income (city)
In-kind Match (city)
Net Fiscal Impact
NO. Additional FTE Positions (cumulative)


III. Review Comments

A. Finance Department Comments:

B. Purchasing/Intergovernmental Relations/Grants Comments:

C. Department Director Review:

Contract Start Date
Contract End Date
Renewal Start Date
Renewal End Date
Number of 12 month terms this renewal
Dollar Amount
Contractor Company Name
Contractor Contact
Contractor Address
Contractor Phone Number
Contractor Email
Type of Contract
Describe

ATTACHMENTS:
File Name	Description	Upload Date	Type
ORD_3065_DROP.AUG_5_2009.pdf	ORD 3065 - D.R.O.P., -AUG 5, 2009	8/25/2016	Cover Memo
ORD_3086_DROP.FEB_2_2011.pdf	ORD 3086 -D.R.O.P. -FEB 2, 2011	8/25/2016	Cover Memo
EMPLOYEES_IN_THE_DROP.AUG_12_2016.pdf	EMPLOYEES IN D.R.O.P OF AS 8/12/16	8/25/2016	Cover Memo
EMPLOYEES_-_25_YEARS_SERVICE_AND_MORE.pdf	EMPLOYEES w/25 YEARS OR MORE	8/25/2016	Cover Memo

REVIEWERS:
Department	Reviewer	Action	Date
City Manager	Mitchell, Dorothy	Approved	8/25/2016 - 1:05 PM