The Apopka City Council on Wednesday approved the first reading of an amendment to the general employees’ retirement system, which would increase the retirement benefit multiplier from the current 2.75% to 3%. 

Mayor Bryan Nelson recused himself from the vote because he was “a part of this,” he said. The final vote was 4-0.  

General employees will see their contribution rates rise from the current 4.9% to 5.5% of their salary, said Frank Mega of HY Consulting, the city pension plan administrator for general employees, police and fire. 

John Hanson, a city building official who sat on the Pension Plan Board for 12 years, said the time has come for employees to receive a raise in their pension plan. He said general employees never had a pension plan increase, but police and fire did.  

“I think there’s a heck of a deal for the employees. I mean, we’ve been wanting this since the last administration,” Hanson said. “It’s been a long time… Let’s get it done.” 

The boost in pension pay is the result of a year-long initiative driven by the employees themselves, Mega said. The Pension Board conducted a benefit impact study, which included many options, their costs, and the cost to the city. The Pension Board recommended a few options for presentation to the membership, then to the City Council.  

An online vote was held among the approximately 260 active general employees, but only 187 participated. The outcome was that 185 votes favored increasing the multiplier over an alternative provision for early retirement based on years of service, according to Mega.  

As a result of the proposed general employees’ pension benefit increase, the city and employees will share the cost. The city will contribute $240,000, while employees chip in $82,500. Mega told the City Council that this would be prorated for this year, based on when the ordinance’s second reading is adopted.  

Commissioner Nadia Anderson said the increase was important for employee retention. 

“Our employees work hard for the city,” she said. “We appreciate what you guys do. We want to make sure that we actually retain good employees. So, I’m definitely in favor of the increase.” 

In two separate votes, the City Council unanimously approved the first reading of non-financial changes to the police and fire retirement systems.  

The change was to update the required minimum distribution age from 77 to 73 to align with the SECURE 2.0 Act, a federal law created to improve retirement savings by making changes to retirement plans.  

According to Mega, the plan has been operating since 2023, but the amendment must be done by 2027.  

No set date has been made for the second reading and adoption of all three amendment ordinances.