City of Doral has to restore pension plan for former elected officials

DORAL, FL – The City of Doral was ordered to reinstate pension plan for former elected officials that was repealed last year during a council meeting.

The order was given by Miami-Dade County arguing the city terminated it illegally last year. Judge William Thomas prohibited the city from claiming the plaintiffs were not vested, that the plan violated laws against extra compensation, or that the pensions were improperly paid.

Plaintiffs Pete Cabrera, a former council member and who introduced the pension plan, Sandra Ruiz, former council member, Juan Carlos Bermudez, former mayor and now Miami-Dade County commissioner, and Michael Di Pietro, former council member, were included in the lawsuit.

The trial lasted 15 months and was intended to reinstate their pension benefits under the argument that the city violated the Florida Constitution, which the judge agreed on.

Now City of Doral will have to provide plaintiffs with retroactive payments of their pension benefits from the date the city discontinued them, as well as continuing paying their benefits under the original terms of the plan.

The court determined that even though the city council can amend the 2021 ordinance of the Elected Officials Pension Plan for future participants, it cannot apply those changes to former officials whose rights have already been vested. 

Mayor Christi Fraga, who would also be eligible for this plan in the future, said that “paying lifelong pensions is unfair and immoral” and that she will “appeal the decision as many times as necessary”, arguing the plan negatively affects residents and the city’s finances.

By the time it was revoked, the financial impact of the pension plan for the 2022-23 fiscal year was estimated at $500,000 based on actuarial calculations and the city attorney explained at the moment that if it hadn’t been repealed, the cost was expected to rise over time.

The pension plan was implemented in 2021 and was set to provide pension benefits, life insurance and health insurance to former Doral officials who served at least two full terms or eight years in office once they reach the age of 60.