File #: ID 2023-198    Version: 2 Name:
Type: Discussion and Possible Action Status: Agenda Ready
File created: 6/12/2023 In control: Regular City Commission Meeting
On agenda: 11/6/2024 Final action:
Title: DISCUSSION AND POSSIBLE ACTION - PROVIDING RETROACTIVE COMPENSATION IN THE AMOUNT OF $51,383.62 TO VICE MAYOR ARLENE R. SCHWARTZ DUE TO THE NON-RECEIPT OF THE ELECTED OFFICERS' CLASS RETIREMENT BENEFIT DURING HER SERVICE AS A CITY OFFICIAL FROM 1997 THROUGH 2004, AS WELL AS FROM 2016 THROUGH 2021; PROVIDING FOR DIFFERENTIAL FORMULA; PROVIDING FOR DEPOSIT INTO EXISTING 457 DEFERRED COMPENSATION PLAN
Attachments: 1. Legal Memo Re Retirement Benefit for Schwartz - 10-14-24_ (002), 2. 1997-2004 Differential Calculation, 3. 2016-2021 Differential Calculation, 4. Lost Earnings and Interest Calculation, 5. Minutes 1998
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TO:                     Mayor and City Commission

 

FROM:                     Cale Curtis, City Manager

 

DATE:                     October 16, 2024

 

 

Title

DISCUSSION AND POSSIBLE ACTION - PROVIDING RETROACTIVE COMPENSATION IN THE AMOUNT OF $51,383.62 TO VICE MAYOR ARLENE R. SCHWARTZ DUE TO THE NON-RECEIPT OF THE ELECTED OFFICERS’ CLASS RETIREMENT BENEFIT DURING HER SERVICE AS A CITY OFFICIAL FROM 1997 THROUGH 2004, AS WELL AS FROM 2016 THROUGH 2021; PROVIDING FOR DIFFERENTIAL FORMULA; PROVIDING FOR DEPOSIT INTO EXISTING 457 DEFERRED COMPENSATION PLAN

 

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BACKGROUND:                                          Vice Mayor Arlene R. Schwartz was duly elected to serve as a City official in 1991 and, from 1991 through 1994, as well as from 1997 through 2004, served as an elected official.  The City had been a participating employer of the FRS, but in 1997 established an Elected Officers’ Class for its elected officials via the approval of Resolution No. 8437.  This resulted in elected officials being eligible to receive a 3% multiplier on and after 1997.  At the time the Elected Officers’ Class was established, Vice Mayor Schwartz was working for the School Board of Broward County (“School Board”), another FRS employer.  Because State law prohibited a person who was dually employed with one or more FRS employer from simultaneously earning two benefits, Vice Mayor Schwartz was legally prohibited from receiving the Elected Officers’ Class benefit.  On June 8, 1998, Vice Mayor Schwartz advised the Commission that she was required to choose between being an Elected Officers’ Class member with the City or remaining a Regular Class member with the School Board.  She chose the latter, as accepting the Elected Officers’ Class benefit would have required her to forfeit a full-time retirement benefit with the School Board.

The City, as early as 1998, explored options to provide an equivalent retirement benefit to Vice Mayor Schwartz for those years of elected service.  Though the matter was broached on several occasions in subsequent years, no formal action was taken by the City.  Should the City Commission wish to address this now, they have two potential options to consider: (1) Provide retroactive contribution of monies (including lost interest) into Vice Mayor Schwartz existing deferred compensation plan, or (2) increase Vice Mayor Schwartz annual salary as allowed by City Charter. Both options were evaluated by the City Attorney for legal sufficiency.  The recommended option would be to make Vice Mayor Schwartz whole using a differential formula, which would result in a retroactive contribution of monies (including lost interest) into her existing deferred compensation plan. 

 

RECOMMENDATION:                     For consideration by the City Commission to retroactively make Vice Mayor Schwartz whole utilizing the Elected Officers’ Class and Regular Class contribution differential formula, including lost interest, by placing the calculated amount into Commissioner’s existing 457 deferred compensation plan. 

                                

FISCAL IMPACT:                     $51,383.62

 

CONTACT PERSON:                     Cale Curtis, City Manager