On May 21, City of Jacksonville, Fla., Mayor Alvin Brown announced a tentative agreement on retirement reform with the American Federation of State, County and Municipal Employees (AFSCME) union. AFSCME represents approximately 2,000 general employees, 90 of which work in the fleet department.

Mayor Brown’s retirement reform agreement with AFSCME has two main provisions. First, it will modify retirement benefits for new employees hired on or after Oct. 1. Second, current AFSCME employees will contribute more to the pension plan but retain their current benefits. 

The proposed changes for new employees include vesting time of 10 years (five years for current employees), an elimination of early retirement, and a change that requires employees to be at least 62 and have worked 30 years of service in order to collect full benefits. Current employees can collect full benefits after 30 years despite age. Additionally, final average pay for new employees will be averaged from the final 60 months instead of best 36 months in the last 10 years. Current employees will contribute 8% toward their retirement plan; future employees will contribute 12%.

This agreement now goes to the AFSCME membership and the Jacksonville City Council for ratification. If ratified, it would take effect on Oct.1. This is the second agreement between AFSCME and Mayor Brown. In 2012, the City ratified a new three-year contract with AFSCME on wages and non-retirement benefits.

This week, the City is meeting on the subject of retirement reform with three other general employee unions: the Jacksonville Supervisors Association (JSA), the Laborers International Union of North America (LIUNA), and the Communications Workers of America (CWA). 

Attached is a side-by-side analysis comparing the current system of retirement benefits with the modified benefits that will be in place for new AFSCME employees hired on or after October 1, 2013.