After a 15-month trial, a Miami-Dade judge has ruled in favor of four former Doral elected officials in a lawsuit over the revocation of their pension benefits, declaring the city violated the Florida Constitution.
The plaintiffs, including former Mayor Juan Carlos Bermúdez, now a Miami-Dade commissioner, and former Council Member Pedro “Pete” Cabrera, who introduced the retirement plan, were joined by former council members Michael DiPietro and Sandra Ruiz in the lawsuit filed in Miami-Dade Circuit Court.
The court ruled Thursday that while the city council can amend the 2021 ordinance establishing the Elected Officials Pension Plan for future participants, it cannot apply those changes to former officials whose rights have already vested. Having retired and received benefits for nearly two years, the plaintiffs are eligible to retroactive payment of their pension benefits from the date the city discontinued them, as well as the continuation of their benefits under the original terms of the plan, the judge said, ruling the city’s actions violated the Florida Constitution.
Judge William Thomas barred the city from arguing that the plaintiffs were not vested, that the plan violated laws against extra compensation, or that the pensions were improperly paid.
DiPietro, who completed his term in 2012, began receiving pension benefits in December 2021. Ruiz, who ended her term in 2016, started receiving benefits in February 2022. Cabrera and Bermúdez, who completed their terms in 2022, began receiving benefits in February 2023 until the city, under new leadership, revoked their pensions in June 2023.
READ MORE: Former Doral officials sue city for revoking their lifetime pensions. The mayor responds
In June 2023, the Doral City Council repealed the pension plan in a 3-2 vote, with support from Mayor Christi Fraga and council members Maureen Porras and Rafael Pineyro. The decision followed the findings of a law firm, hired four months earlier, which concluded that the plan had not been enacted in compliance with Florida law or the state constitution. The plan also included retroactive benefits for former elected officials who had left office before its implementation, which the law firm considered a violation of Florida laws, an issue that ultimately led to the lawsuit.
All three council members who supported ending the pension plan had campaigned against it during the 2022 elections, criticizing lifetime benefits that could exceed $100,000 a year per person in some cases, as well as medical benefits covering family members and life insurance until death.
Fraga and Pineyro are up for reelection in November. Vice Mayor Oscar Puig-Corve and Councilwoman Digna Cabral, who supported the pension plan’s approval in 2021, voted against its repeal.
Puig-Corve, 57, one of the city’s founders, was first elected as a council member in 2020 but will not seek reelection this year, rendering him ineligible for the pension. In contrast, Cabral, 47, is currently serving her second term after being reelected in 2022, which makes her eligible for benefits at age 60.
The retirement plan provides pensions, life insurance and health insurance credits to former Doral officials who served at least two full terms or eight years in office once they reach the age of 60.
The financial impact of the retirement plan for the 2022-23 fiscal year, when it was revoked, was estimated at $500,000 based on actuarial calculations. However, a memo from the city attorney to the council explained that if the ordinance had not been repealed, the cost was expected to rise over time as more former elected officials became eligible.
The ordinance from 2021 authorized elected officials who served eight years or two full terms to an annual pension equivalent to 50% of the average of their last three years of compensation. Those who served 12 or more years could qualify for an annual pension equivalent to 100% of the average of their last three years of compensation.
The ruling deals a significant blow to city officials who voted in June 2023 to revoke the pension, citing its “illegality.” The judge said the city’s repeal and termination of the plan clearly violated state laws protecting pension benefits.
Fraga, who would be eligible for the pension plan after been a councilwoman for eight years, expressed her opposition to the ruling, telling the Herald that she is confident the city has a strong appeal case.
“I don’t agree with the decision; it doesn’t address the issue,” she said. “In my opinion, we should fight all the way. The ones who lose are the residents. We have many compelling arguments.”
Pineyro expressed surprise at the ruling. “When the decision was made, it wasn’t driven by political revenge but based on the conclusion from our expert team in government pensions, which found that the way it was adopted did not comply with Florida statutes,” he said.
“The pension system was funded from the budget, but residents were never consulted, and they should have been,” Pineyro added. “I will continue to defend the residents of Doral and safeguard the city’s fiscal health. We must appeal the ruling.”
Porras was more cautious, stating that she needs to see what the city’s attorneys recommends.
Deputy City Attorney Lorenzo Cobiella suggested in an email to council members that the city appeal the ruling.
The city has 30 days to decide what to do next.
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