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SUBJECT: POLICE MASTER PLAN WITH COMPENSATION AND BENEFITS <br />DATE: MAY 9, 2017 <br />PAGE 11 OF 17 <br />Contribution Rates (see above), Beneficiary Election, Refunds, and Purchasing Service <br />Credits. <br />Pros: <br />Cons: <br />Provides a defined benefit plan that is desired by many Sworn Police Officers. <br />Defined benefit plans are seen as stable and predictable to members. <br />Could allow Sworn Officers the opportunity to retire at their desired age of 55 with <br />a pension plan in place. <br />Allows Police Officers who are already working for employers covered by FPPA, <br />or those with FPPA Service Credits, to come to work for the City of Louisville and <br />continue in the FPPA Retirement Plan. <br />May create a better competitive environment for recruiting and retaining Sworn <br />Officers. <br />Provides a different retirement option for Sworn Officers which creates a different <br />plan. Other City employees may feel dissatisfaction with the City by providing a <br />separate and "more beneficial" plan for Sworn Officers. This may create an "us <br />and them" mentality between the employee groups. <br />This plan only provides half the benefit of the other FPPA plans due to our <br />affiliation with Social Security, which may not be as beneficial to members as had <br />been hoped for. <br />Sworn Officers would need to vote on this option and it must pass by at least <br />65%. If this option does not pass, it could be seen as disappointing to Sworn <br />Officers. <br />This may increase turn -over if this option is voted down as Officers search for a <br />Defined Benefit program. <br />Cost: Estimated additional cost = about $102,000 annually, and increasing annually as <br />wages increase. <br />Recommendation for Implementation: <br />Hold informational meetings with FPPA representatives and Police Officers to hear <br />more details about this plan. Informational meetings would need to be scheduled in <br />advance of the adoption of the 2018 budget if this is a desired option for 2018. A vote of <br />all the Sworn Officers would need to be taken and it must pass by 65%. <br />FPPA is currently very busy with their annual Employer Seminars and could hold <br />meetings for Louisville, if so desired, in September of 2017. <br />Option 5A: Add ONLY the Death & Disability Benefit from FPPA. <br />CITY COUNCIL COMMUNICATION <br />