Commission amends police and firefighter retirement contributions at second reading
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Summary
The commission adopted on second reading changes to the City of Daytona Beach police officers and firefighters retirement system that remove an automatic reduction in member contributions for employees at the $5,500 monthly pension cap and allow a one‑time election to remain at a reduced rate or in a 401(a) plan; vote was 6‑0.
The City Commission on Oct. 15 adopted an ordinance amending the City of Daytona Beach Police Officers and Firefighters Retirement System (subpart D of the city charter). The ordinance eliminates an automatic reduction in member contributions when a member reaches the maximum monthly pension benefit cap of $5,500. It also allows capped members a one‑time election to remain at a reduced contribution rate of 0.50% and forgo a future recalculation of benefits, or, if at the cap and in DROP A, to elect to remain in the city’s 401(a) plan for capped employees and forego future recalculation of benefits.
Why it matters: The ordinance changes contribution mechanics and gives certain capped members a one‑time choice about contribution rates and benefit recalculation; the policy affects members of the retirement system and the retirement plan’s administration.
Vote: The commission approved the ordinance on second reading by a 6‑0 vote. The motion was made and seconded and the clerk recorded a unanimous vote among commissioners present.
Background: The ordinance description and the second‑reading motion were placed on the agenda; no members of the public spoke on this item during the hearing.
Implementation: The approved ordinance includes codification and standard effective-date language; staff will proceed with updates necessary to payroll, member notices and plan administration.