Letter from Andy Bemis re Recommendation for Resolving Impasse April 8, 2013
VIA EMAIL
Honorable Mike Borno, Mayor,
Maria Mark,
Carolyn Woods,
Mark Beckenbach,
Jonathan Daughterys
Re: Recommendation for Resolving Impasse
City of Atlantic Beach and Laborers International Union of North America, Local 630
PERC No.:SM-2012-68
Dear Mayor and Commissioners:
Please accept this letter as Northeast Florida Public Employees' Local 630 position on Special Magistrate Trott's
recommendation made on February 25, 2013.The Union is willing to accept the Special Magistrates decision with
the exception of Article 20(Pension). In this letter we will outline the Union's position on Article 20.
The City has two proposals to the pension plan.The first would impact current vested employees.The first proposal
would increase the required employee contribution by 1%. This proposed increase would mean that current vested
employee's contribution rate would increase from 5% of their salaries to 6% of their salaries. Under the City's
proposal, employees would be required to contribute at least 6% of their salary to the pension plan. The Union is
willing to agree to this change in Article 20.
The Second part of the City's Article 20 proposal is that all current non-vested employees be converted to a
newly created defined contribution plan. The City would transfer to that new plan employee contributions made to
date, including interest credited, and would match the full amount dollar for dollar. In addition, the City would
match employee contributions up to 6% for the first ten (10) years of employment. After ten (10) years of
employment, the City would contribute an additional 4% into the employee's plan, with no matching required in
order to receive this 4%. Also, the vesting period for the newly created defined contribution plan would be five (5)
years and not ten (10) years as previously provided under the defined benefit plan. The Union is opposed to this
proposal in that we feel all current employees should remain in the City's pension plan. The Union is willing to
accept the proposed change for all employees hired in the future.
The Union understands the City's position and recognizes the fact that the City is taking steps it deems financially
responsible, however the Union would like to point out that since 2005 the employees have agreed to several
changes to help in making the pension costs more reasonable. Contribution rates have been increased three times
(2005-2007) resulting in an increase of 3% over three years. In 2005 the employees also agreed to reduce the
multiplier from 2.85%to 2.5% for all new hires. Finally in 2008 the employees agreed increase vesting from 5 years
to 10 years. If add the proposed increase 1% increase the employees have willingly made substantial sacrifices to
keep the pension cost down.
The Union understands that the economy has been poor for several years, but it is the Unions position that if given
more time and hopefully some positive economic changes the recent concessions made by the employees that
substantial improvements in the pension liability will be realized. The Union also would like to point out that all
current employees accepted position with the City under the agreement that they would be part of the pension plan.
When an employee makes the decision to accept a job they weigh many issues one of which is the fringe benefits
including the retirement plan. The current employees have remained loyal to the City even during these difficult
times;they have not received a salary increase in several years while the cost of living has continued to increase.The
Union would request that the City show the employees the same loyalty and honor the pension plan the employees
agreed to when being hired and only future employees be placed into the proposed defined contribution plan.
Thank you for your consideration in this matter.
Respectfully,
Andy Bemis, Business Manager
Northeast Florida Public Employees' Local 630