HomeMy WebLinkAboutBack-Up from Law DeptDIVISION 2. - CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST
Sec. 40-191. - Definitions.
Unless a different meaning is plainly required by the context, the following words and phrases as used in this division
shall have the following meanings:
Accumulated contributions shall mean the sum of all amounts deducted or picked up from a member's compensation
plus all other amounts contributed to the retirement system by a member pursuant to this division, together with regular
interest thereon as provided in section 40-197(b).
Active membership shall mean membership in the retirement system as an employee.
Actuarial assumptions shall mean the benefit of equal value as determined using the RP 2000 Projected to 2020 Scale AA
and an interest rate of 7.42 percent compounded annually.
Actuarial equivalent shall mean a benefit having the same present value as the benefit it replaces, using the actuarial
assumptions listed above.
Average final compensation shall mean the annual earnable compensation of a member during either the last one year
or the highest one year of membership service, whichever is greater.
BACDROP shall mean Benefit Actuarially Calculated Deferred Retirement Option Program.
Beneficiary shall mean any person receiving a retirement allowance or other benefit from the retirement system.
Benefitshall mean a retirement allowance or other payment provided by the retirement system.
Board onboard oftrusteesshall mean the board of trustees of the retirement system.
City employee shall mean any person employed by the city.
COLA shall mean cost -of -living allowance.
Creditable service shall mean membership credit upon which a member's eligibility to receive benefits under the
retirement system is based or upon which the amount of such benefits is determined.
DROPshall mean Deferred Retirement Option Program and shall include a Forward DROP and a BACDROP.
DROP account shall mean the account established for each DROP participant.
DROP participant shall mean a beneficiary participating in the DROP.
Earlyservice retirement shall mean a member's withdrawal from service under circumstances permitting payment of a
retirement allowance before such member is eligible for normal service retirement.
Earnable compensation shall mean an employee's base salary, including pickup contributions, for all straight time hours
worked, plus assignment pay and payments received for vacation and sick leave taken, jury duty, and death -in -family leave
taken, and any other items, if any, currently included in the calculation of average final compensation. Earnable
compensation shall not include overtime pay; payments for accrued sick leave, accrued vacation leave, or accrued
compensatory leave; holiday pay; premium pay for holidays worked; the value of any employment benefits or nonmonetary
entitlements; or any other form of remuneration.
Employee shall mean a firefighter or police officer presently employed by the city as a firefighter or police officer,
whether in the classified or unclassified service of the city. Any member of the retirement system who becomes employed
by the Dade County metropolitan government by virtue of the merger, transfer or assignment of governmental units or
functions and who does not elect within six months thereafter to become a member of the state and county officers' and
employees' retirement system shall, so long as such employment continues, be deemed an employee within the meaning of
this section. In its capacity as the employer of such member, the Dade County metropolitan government shall be deemed to
be included with the term "city" as such term is used herein to refer to the city in its capacity as the employer of a member.
Excess interest earningsshall mean the difference between the return on the actuarial market value of the average
assets (investment and noninvestment) of the City of Miami firefighters' and police officers' retirement trust fund, as
calculated in accordance with F.S. ch. 112 and the assumed return on the actuarial market value of such assets for active
members on the current actuarial valuation report.
Firefighter shall mean any person initially employed as a full-time professional firefighter by the city, whose primary
responsibility is the prevention and extinguishment of fires, the protection of life and property, and the enforcement of any
law pertaining to the prevention and control of fires.
FOP shall mean The Fraternal Order of Police, Lodge #20.
Forward DROP shall mean a Deferred Retirement Option Program where benefit is equal to the regular retirement
allowance the member would have received had the member separated from service and commenced the receipt of
benefits from the system.
Fund shall mean the City of Miami firefighters' and police officers' retirement trust fund.
IAFFshall mean the International Association of Fire Fighters, AFL-CIO, Local 587.
ICA shall mean an individual contribution account.
Investment expensesshall mean the cost of money management fees.
Memberor member in service shall mean an employee for whom contributions to the retirement system are made as
required by this division.
Memberabsent from service shall mean any member ceasing to be a city employee who is absent from service less than
three years in a period of five consecutive years after last becoming a member and who does not withdraw his or her
accumulated contributions. In order for a member absent from service to be entitled to receive a benefit during the period
before membership elapses, the benefit must have vested prior to the member's ceasing to be a city employee.
Membernot in service shall mean any member who exercises a vested right to retirement pursuant to section 40-203(e).
Membership creditshall mean credit received by a member for time spent in membership service or for such time as is
otherwise authorized by this division.
Membership service shall mean service as an employee on account of which contributions to the retirement system are
made as required by this division.
Miami city employees'retirementsystem shall mean the city pension system which was established effective January 1,
1940, pursuant to Ordinance No. 2230, enacted December 6, 1939.
Noninvestment expenses shall mean the costs of administering the retirement system. Salaries for office staff, overhead,
professional fees for actuaries, accountants, and attorneys, and other similar costs are examples of noninvestment
expenses.
Normal costs shall mean the cost of benefits attributable to the current year under the frozen entry -age actuarial costs
method.
Option shall mean one of several choices available to members with respect to the manner in which a retirement
allowance may be paid.
Paybackshall mean a member's contribution to the retirement system for membership credit for which other than
regular contributions may be made pursuant to this division. Contributions permitted for paybacks shall not be picked up
by the city but may be deducted from a member's compensation.
Pension shall mean a series of periodic payments usually for life, payable in monthly installments.
Pickup amounts shall mean employer contributions derived from a member's earnable compensation through a
reduction in the member's earnable compensation.
Police ofRcershall mean any person employed by the city who is vested with authority to bear arms and make arrests,
and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, criminal, traffic,
or highway laws of the State of Florida.
Regular contributions shall mean amounts picked up by the city from the earnable compensation of a member. Regular
contributions shall not include payback contributions of any kind or nature or any other amounts which may be deducted
from a member's compensation pursuant to this division.
Regular interest shall mean interest at the rate determined by the board of trustees pursuant to section 40-197(b).
Retirementshall mean a member's withdrawal from service with a benefit granted to the member pursuant to the
provisions of this division.
Retirement allowance shall mean a pension provided by the retirement system.
Retirement system shall mean the City of Miami firefighters' and police officers' retirement trust.
Rule of64shall mean a computation consisting of the sum of a member's age and length of creditable service, which
sum shall permit normal service retirement upon the member's combined age and creditable service equaling at least 64.
The rule of 64 shall apply to all police officer members. The rule of 64 shall also apply to any firefighter member whose
combined age and length of creditable service is equal to or greater than 64 on or before September 30, 2009.
Rule of68shall mean a computation consisting of the sum of a member's age and length of creditable service, which
sum shall permit normal service retirement upon the member's combined age and creditable service equaling at least 68.
The rule of 68 shall only apply to firefighter members whose combined age and length of creditable service are less than 64
on September 30, 2009.
Service shall mean active service as an employee.
Service retirementshall mean a member's retirement from service under circumstances permitting payment of a
retirement allowance without reduction because of age or length of creditable service and without special qualifications
such as disability. Service retirement shall be considered normal retirement.
Trustee shall mean a member of the board of trustees of the retirement system.
Unfunded liabilityshall mean "unfunded actuarial liability" which is the excess of the actuarial accrued liability of the
retirement system over the value of its present assets. The term "unfunded liability" shall include the frozen unfunded
liability of the retirement system.
Vested benetitshall mean an immediate or deferred benefit to which a member has gained a nonforfeitable right under
the provisions of this division. Minimum vesting shall mean ten years of creditable membership before the member is
entitled to retirement benefits except accidental disability retirement, service incurred disability retirement, and ordinary
death benefits.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10910, § 1, 9-5-91; Ord. No. 11235, § 1, 3-27-95; Code 1980, § 40-200; Ord. No. 11300,
§ 1, 9-14-95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13202, § 2, 9-27-10; Ord. No. 13551, § 2, 9-
24-15; Ord. No. 14066, § 2, 5-12-22)
Sec. 40-192. - Retirement system established; purpose; name; date operative.
A retirement system is hereby established and placed under the administration and management of a board of trustees
for the purpose of providing retirement benefits pursuant to the provisions of this division. The retirement system
established herein shall be known as the "City of Miami firefighters' and police officers' retirement trust" and shall be
effective as of June 13, 1985.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-201)
Sec. 40-193. - Board of trustees.
(a) Selection.
(1) The board of trustees of the retirement system shall consist of nine persons selected as follows:
a. One trustee selected by the city manager, which trustee shall not be the mayor, a city commissioner, the
city manager, the city finance director, or an assistant finance director;
b. Two trustees selected by the firefighters, which trustees shall belong to the bargaining unit represented
by the IAFF and shall be elected and serve according to the constitution and bylaws of the IAFF;
c. Two trustees selected by the police officers, which trustees shall belong to the bargaining unit
represented by the FOP and shall be elected and serve according to the constitution and bylaws of the
FOP; and
d. Four independent trustees, which trustees shall not be city employees, selected by the commission. Two
such trustees shall be selected from a list of six persons submitted by the FOP according to its
constitution and bylaws, and two such trustees shall be selected from a list of six persons submitted by
the IAFF according to its constitution and bylaws. Each of the lists submitted to the commission shall not
contain any name which duplicates a name appearing on the other lists. In the event a duplication of
names does occur, both lists shall be returned by the commission for resubmission without duplication.
An independent trustee shall have at least the following qualifications:
1. Be presently employed or self-employed on a full-time basis, or be retired from such;
2. Have resided in Miami (or its immediate environs) for the past five years;
3. Be able to attend board meetings if scheduled well enough in advance and agree to resign from the
board if meeting attendance is less than 75 percent in a one-year period; however, the provisions of
this subsection shall not apply to those individuals who are members of city boards and who are (1)
reservists in the United States Armed Forces or members of the Florida National Guard, and have
been ordered to active military duty for national, state, or homeland defense and due to such duty
cannot attend board meetings, or (2) employees of agencies whose services are considered essential
for national, state, or homeland defense and due to such services cannot attend board meetings.
4. Have been involved in, within the last five years, and be knowledgeable about, employee pension or
similar fringe benefits;
5. Have knowledge of, be familiar with, and have had exposure to labor/management relations;
6. Have knowledge of and be familiar with business principles;
7. Have not been, within the last five years, a public employee union representative nor a representative
of management for the city;
8. Not be actively involved in nor aspire to be actively involved in city, county or state politics.
(2) A trustee shall take an oath of office within ten days following selection as a member of the board.
(b) Term of office.
(1) The term of office for each trustee shall be two years except for the initial trustees who shall serve as follows:
a. Of the trustees selected by the firefighters, one shall serve for a one-year term and the other for a two-
yearterm;
b. Of the trustees selected by the police officers, one shall serve for a one-year term and the other for a two-
yearterm;
c. Of the two independent trustees appointed by the commission from the list submitted by the IAFF, one
shall serve for a one-year term and the other for a two-year term;
d. Of the two independent trustees appointed by the commission from the list submitted by the FOP, one
shall serve for a one-year term and the other for a two-year term; and
e. The trustee appointed by the city manager shall serve for a two-year term.
(2) Trustees may serve as many consecutive terms as those participating in the respective selection processes
deem appropriate.
(c) Fiduciary responsibility. Members of the board of trustees shall be the named fiduciaries of the retirement
system. As named fiduciaries, the trustees shall discharge their duties and responsibilities solely in the interest of
members and beneficiaries of the retirement system:
(1) For the exclusive purpose of providing benefits to members and their beneficiaries and defraying reasonable
expenses of administering the retirement system;
(2) With the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person
acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like
character and with like aims; and
(3) In accordance with ordinances and other applicable law, documents and other instruments governing the
retirement system.
(d) Compensation. Trustees who are employees of the city, whether firefighters, police officers, or otherwise, shall
be granted leave with full pay when functioning as a trustee during their normal working hours. Such trustees
shall not otherwise be paid for their services as trustees. All other trustees shall be compensated at any given
time in the same manner as are members of the city's civil service board.
(e) Meetings,- voting, quorum; officers.
(1) The board shall meet at least once every two months following appropriate public notice and shall meet and
conduct the business of the retirement system in accordance with F.S. ch. 286.
(2) As a member of the board, each trustee shall be entitled to one vote, and five concurring votes shall be
necessary for a decision by the board. Five trustees shall constitute a quorum for the purpose of meeting and
transacting the business of the board.
(3) The board shall elect a trustee as chairperson and a trustee as vice -chairperson of the board.
(f) Vacancies,, removal.
(1) If a vacancy occurs on the board due to resignation, death, removal or otherwise, the vacancy shall be filled
for the unexpired term of the departing trustee in accordance with the provisions of this section for selection
of the trustee who has vacated the office.
(2) The board may remove a trustee prior to completion of his or her designated term of office for proper cause
only, which cause shall be stated in writing. Notwithstanding any provision of this division to the contrary, six
concurring votes shall be necessary to effect such removal. Proper cause shall mean a trustee's failure to
satisfactorily discharge his or her fiduciary duties and responsibilities, including, but not limited to, failure to
attend 75 percent or more board meetings in a one-year period.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-202; Ord. No. 11564, § 15, 10-28-97; Ord. No. 12201, § 1, 3-14-02; Ord. No.
13676, § 2, 4-27-17)
Sec. 40-194. - Administration of retirement system.
(a) Plan administrator. The board shall serve as plan administrator of the retirement system.
(1) The general administrative duties of the board shall be:
a. To maintain such records as are necessary for calculating and distributing retirement system benefits;
b. To maintain such records as are necessary for financial accounting and reporting of retirement system
funds;
c. To maintain such records as are necessary for actuarial evaluation of the retirement system, including
investigation into the mortality, service and compensation experience of its members and beneficiaries;
d. To compile such other administrative or investment information as is necessary for the management of
the retirement system;
e. To process, certify and/or respond to all correspondence, bills and statements received by the retirement
system, as well as all applications submitted to the board for retirement system benefits;
f. To establish and maintain communication with city departments and other local, state and federal
governmental units as is necessary for the management of the retirement system, including preparing,
filing, and distributing such reports and information as are required by law to be prepared, filed or
distributed on behalf of the retirement system;
g. To establish and maintain such other functions as are necessary to administer, manage and operate the
retirement system, or as otherwise required by law.
(2) The board shall submit the following information annually to the commission no later than July 1 of each
year: (a) a report showing the fiscal transactions of the retirement system for the year ending on the
preceding September 30 as well as the amount of accumulated cash, securities, and other property of the
retirement system on that date and (b) the current actuarial valuation of the assets and liabilities of the
system. The actuarial value of assets held by the retirement system shall be designated as the lower of
moving market value average (three years) or statement value. The board may approve other methods of
determining the actuarial value of retirement system assets if such other methods are recommended by the
actuary retained by the board and found by the Florida bureau of local retirement systems, division of
retirement, department of administration, or its successor, to be in compliance with state law. Prior to the
first meeting of the board to consider a change in the method of determining the actuarial value of
retirement system assets, the board shall give timely, written notice to the city of the proposed change.
(3) At least once in each three-year period, the board shall cause an actuarial investigation to be made into the
mortality, service and compensation experience of the members and beneficiaries of the retirement system.
Taking into account the result of this investigation, the board shall adopt for the retirement system such
mortality, service and other tables as are necessary and proper. On the basis of these tables, an annual
actuarial valuation of the assets and liabilities of the funds of the retirement system shall be made. Actuarial
assumptions based on three-year experience analyses may be modified by the board at such times as it
deems appropriate. When a change in actuarial assumptions is considered by the board, 60 days' notice shall
be given to the city prior to the first meeting of the board to consider any such change or any proposal or
recommendation related thereto. Thereafter, reasonable notice shall be given to the city of any and all
subsequent meetings at which the issue of a change in actuarial assumptions or a related proposal or
recommendation is to be considered.
(b) Pension administrator, board physician,, advisors.
(1) The board shall employ a pension administrator to assist the board in the performance of its administrative
duties. The pension administrator may, subject to the approval of the board, employ such staff as is
necessary for the proper administration of the retirement system.
a. The pension administrator selected by the board shall have at least the following qualifications:
1. Have an accounting or pension administration background;
2. Have managerial experience including hiring, directing and motivating a small staff,
3. Have sufficient knowledge or experience to supervise data processing operations;
4. Have experience with filing government forms (including those related to federal and state
compliance requirements) and have the initiative to obtain resource data when specific information is
not readily available;
5. Be capable of using benefit formulas to calculate and pay benefits;
6. Be capable of prudent financial management and obeying guidelines established by the board;
7. Be capable of developing cash flow projections;
8. Be capable of preparing financial reports reflecting the activity of the trust and financial trends;
9. Be capable of maintaining an investment schedule;
10. Be capable of maintaining minutes of meetings of the board of trustees;
11. Be capable of preparing correspondence, issuing forms, receiving and processing benefit claims, and
expressing ideas in writing;
12. Be able to insist upon, and actively pursue delivery of, all reports and other documents required for
efficient operation of the retirement system;
13. Have effective oral communications skills;
14. Have a good employment attendance record;
15. Be efficient, practical and committed to responsible and effective operation of the retirement system,
its finances and expenses;
16. Be able to remain neutral on decisions to be made by the board and serve all board members in an
impartial and arms -length fashion, giving due recognition to the ultimate fiduciary obligation to
members and beneficiaries of the retirement system.
b. The board shall have a continuing duty to observe and evaluate the performance of any pension
administrator employed by the board. The board shall, in selecting any such pension administrator,
exercise all judgment and care under the circumstances then prevailing which persons of prudence,
discretion and intelligence exercise in the management of their own affairs.
(2) The board shall retain a physician to assist the board in the performance of its administrative duties. The
physician shall conduct or otherwise provide for any medical examination required under the provisions of
this division and may refer any examinee to a specialist or specialists. Following any medical examination
required by this division, and after taking into consideration the reports of specialists, if any, the physician
shall submit written conclusions and recommendations regarding the examinee to the board.
(3) The board shall have authority to retain its own legal counsel, accountants, actuaries, and other professional
advisors to assist the board in the performance of its administrative duties. The board may act without
independent investigation upon the professional advice of advisors so retained.
(4) The board shall, consistent with its independence from the board of trustees of the City of Miami general
employees' and sanitation enforcement retirement trust, endeavor to share personnel, services and facilities
with the latter board.
(c) Public records,- board documents,, written communication to and from city,, commission agenda.
(1) The board shall keep a record of all of its proceedings which shall be maintained and open to public
inspection in accordance with F.S. ch. 286. Such records shall reflect a complete and comprehensive account
of the discussions and actions taken by the board.
(2) The board shall provide the city manager with copies of all documents relating to the retirement system
contemporaneously with the making or receipt of such documents by the board or immediately thereafter.
The city manager shall provide the pension administrator of the board with copies of all documents relating
to the retirement system contemporaneously upon the making or receipt of such documents by the city or
immediately thereafter. All written communications relating to the retirement system from the board to the
city shall be made directly to the city manager. All written communications to the board from the city shall be
made directly to the board, with copies to the pension administrator of the board.
(3) When a hearing before or consideration by the commission is required for retirement system business, such
business shall be placed on the agenda of the commission and heard at its next regularly scheduled meeting;
provided, that any request for hearing or consideration of retirement system business complies with the
city's requirements or guidelines as to timeliness and adequacy of information.
(d) Rules and regulations. Subject to any limitation contained in this division, the board may from time to time
establish such rules and regulations as are necessary for efficient administration and management of the
retirement system.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-203)
Sec. 40-195. - Trust fund.
(a) Nature of trust.
(1) The Miami city employees' retirement system trust is an irrevocable trust previously established by
ordinance. The commission, having retained that right, hereby appoints a successor trustee to administer the
trust thereby created. The successor trustee designated by the commission shall be the board of trustees of
the City of Miami firefighters' and police officers' retirement trust. Hereafter, the Miami city employees'
retirement system trust shall be known as the City of Miami firefighters' and police officers' retirement trust
fund but it shall remain and continue as the same irrevocable trust as set forth in prior city ordinances.
(2) The board shall be vested with full legal title to the City of Miami firefighters' and police officers' retirement
trust fund and shall hold the fund as an irrevocable trust to be applied from time to time in accordance with
the provisions of this division. All payments made to the fund by the city and by members of the system, and
all assets whatsoever of the fund and the income thereof, without distinction between principal and income,
shall be held by the board in a single trust fund. The board may, however, segregate or invest separately any
portion of the fund.
(3) Members of the board of trustees shall be the named fiduciaries of the fund. As named fiduciaries, the
trustees shall hold, manage, control and safeguard the fund solely in the interest of members and
beneficiaries of the retirement system:
a. For the exclusive purpose of providing benefits to members and their beneficiaries and defraying
reasonable expenses of administering the retirement system;
b. With the care, skill, prudence and diligence under the circumstances then prevailing that a prudent
person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise
of a like character and with like aims;
c. By diversifying the investments of the fund so as to minimize the risk of losses, unless under the
circumstances it is clearly prudent not to do so;
d. In accordance with ordinances and other applicable law, documents and other instruments governing the
fund.
(4) The board shall have authority to retain its own legal counsel, accountants, actuaries and other professional
advisors to assist the board in the performance of its trust duties. The board may act without independent
investigation upon the professional advise of advisors so retained.
(5) The board is authorized to prosecute or defend actions, claims or proceedings of any nature or kind for the
protection of fund assets and for the protection of the board in the performance of its duties.
(b) Trust property.
(1) Trust property shall consist of all cash, securities and other property previously accumulated on behalf of the
Miami city employees' retirement system trust, together with such other cash, securities and other property
as the board may at any time hold or acquire from or on behalf of the city or members of the retirement
system pursuant to this division, and the accruals thereto.
(2) The board may buy, sell, convert, redeem, exchange or otherwise dispose of trust property at any public or
private sale without notice or advertisement, for cash or upon credit with or without security, without
obligation on the part of any person dealing with the board to see the application of the process of or inquire
into the validity, expedience or propriety of any such disposition, and may make, execute, acknowledge and
deliver contracts, assignments, waivers or other instruments.
(3) The board shall have the authority to vote upon any stocks, bonds or securities of any corporation,
association or trust and to give general or specific proxies and powers of attorney with or without power of
substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar
transactions with respect to such securities; to deposit such stock or other securities in any voting trust or
any protective or like committee or with depositories designated by the board, subject to the approval of the
commission; to amortize or fail to amortize any part or all of the premium or discount resulting from the
acquisition or disposition of assets; and generally, to exercise any of the powers of an owner with respect to
stocks, bonds or other investments comprising the fund which the board may deem to be in the best interest
of the fund to exercise.
(c) Investments.
(1) The trustees shall, in acquiring, investing, reinvesting, exchanging, retaining, selling and maintaining property
for the benefit of the FIPO trust fund exercise the judgment and care under the circumstances then
prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own
affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the
probable income as well as the probable safety of their capital. Within the limitations of the foregoing
standard, the trustees are authorized to acquire and retain every kind of property, real, personal or mixed,
and every kind of investment specifically including, but not byway of limitation, bonds, debentures and other
corporate obligations, and stocks, preferred or common, which persons of prudence, discretion and
intelligence acquire or retain for their own account and, within the limitations of the foregoing standard, the
trustees may retain property acquired, without limitation as to time and without regard to its suitability for
original purchase. The intent of this provision is to remove any and all restrictions which are otherwise
imposed by F.S. ch. 175 or 185, and which may be removed.
(d) Moneymanager.
(1) Pursuant to written agreement, the board shall retain one or more money managers for the management of
property held in the fund, and the board shall convey property of the fund to such money manager(s) for
investment and reinvestment in accordance with this section.
a. The board shall establish written guidelines and objectives against which the investment performance of
any money manager retained by the board shall be measured. If a money manger fails to meet the
guidelines and objectives, or fails to perform in accordance with its contractual agreement with the
board, the money manager may be terminated by the board. The performance of the investment
portfolio for the retirement system shall not be less than 90 percent of the median performance of
comparable portfolios as determined jointly by the board and the city manager. If the performance falls
below that minimum standard, the money manager(s) shall automatically be removed unless, based
upon extenuating circumstances, the board recommends continuation and such continuation is
approved by the commission.
b. In the acquisition, investment, reinvestment, exchange, retention, sale and management of property for
the benefit of the fund, the money manager(s) shall exercise all judgment and care under the
circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not in regard to speculation, but in regard to the permanent disposition
of their funds, considering the probable income as well as the probable safety of their capital.
c. Upon written request by the board, the money manager(s) shall disburse cash or property from the fund
to the board or its designee. In requesting the money manager(s) to make any such distribution, the
board shall follow the provisions of this division and shall not direct that any payment be made that
would cause any part of the fund to be used for or diverted to purposes other than providing benefits to
members and beneficiaries of the retirement system and defraying reasonable expenses of administering
the retirement system. Any written request to the money manager(s) from the board shall constitute a
certification that the distribution so requested is one that the board is authorized to direct, and the
money manager(s) shall not be required to investigate the application of such money by the board or its
designee.
(2) The board shall have a continuing duty to observe and evaluate the performance of any money manager or
other investment counsel retained by the board. The board shall, in selecting a money manager or other
investment counsel, exercise all judgment and care under the circumstances then prevailing which persons
of prudence, discretion and intelligence exercise in the management of their own affairs.
(e) Records to be maintained.
(1) The board shall require that any money manager or other agent who has custody or control of any trust
property keep accurate and detailed accounts of all investments, receipts, disbursements and other
transactions of or pertaining to such trust property, and the board shall further require that all accounts,
books and records relating thereto be open to inspection and audit at all reasonable times by the city, the
board, or their designees.
(2) The board shall also keep accurate and detailed accounts of all investments, receipts, disbursements and
other transactions of or pertaining to trust property, and all accounts, books and records relating thereto
shall be open to inspection and audit at all reasonable times by the city or its designees.
(f) DROP account exceptions.
(1) None of the restrictions in this section hereinabove shall apply to assets in DROP accounts which may be
invested in any investments otherwise not prohibited by law.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10500, § 1, 10-27-88; Code 1980, § 40-204; Ord. No. 11300, § 1, 9-14-95; Ord. No.
11752, § 2, 1-26-99; Ord. No. 13676, § 2, 4-27-17)
Sec. 40-196. - Contributions.
(a) Member contributions.
(1) Effective January 9, 1994, and thereafter, regular contributions of each member of the retirement system
shall be made each pay period at the rate of ten percent of each member's earnable compensation. Effective
the first full pay period following October 1, 1999, regular contributions of each member of the retirement
system shall be made each pay period at the rate of seven percent of each member's earnable
compensation.
(2) a, Effective the first full pay period following October 1, 2000, and thereafter, regular contributions of each
member of the retirement system shall be made each pay period at the rate of seven percent or equal to
the city's contribution, whichever is less.
b. Effective the first full pay period following October 1, 2000, should the member contribution be less than see
the difference between the seven percent and the actual contribution shall be deducted from the member's
placed into an individual contribution account (ICA), as part of the retirement system. ICA's shall be establisl
by IRS Code. Only if it is found that the IRS Code does not allow for an individual account, the reduction in cc
shall be reflected in the member's paycheck.
(3) a. Effective the first full pay period following the effective date of the ordinance from which this article
derives, and thereafter, regular contributions of each firefighter member of the retirement system shall be
made at the rate of eight percent of each firefighter member's earnable compensation.
b. Effective the first full pay period following the effective date of the ordinance from which this article
derives, should the firefighter member's contribution be less than eight percent, the difference between
the eight percent and the actual contribution shall be deducted from the firefighter member's paycheck
and placed into an individual contribution account (ICA), as part of the retirement system. ICA's shall be
established as allowed by IRS Code. If it is found that the IRS Code does not allow for an individual
account, the reduction in contribution shall be reflected in the member's paycheck.
(4) a. Effective the first full pay period following October 1, 2009, and thereafter, regular contributions of each
firefighter member of the retirement system shall be made at the rate of nine percent of each firefighter
member's earnable compensation.
b. Effective the first full pay period following October 1, 2009, should the firefighter member's contribution
be less than nine percent, the difference between the nine percent and the actual contribution shall be
deducted from the firefighter member's paycheck and placed into an individual contribution account
(ICA), as part of the retirement system. ICA's shall be established as allowed by IRS Code. If it is found that
the IRS Code does not allow for an individual account, the reduction in contribution shall be reflected in
the member's paycheck.
(5) a. Effective the first full pay period following October 1, 2010, and thereafter, regular contributions of each
firefighter member of the retirement system shall be made at the rate of ten percent of each firefighter
member's earnable compensation.
b. Effective the first full pay period following October 1, 2010, should the firefighter member's contribution
be less than ten percent, the difference between the ten percent and the actual contribution shall be
deducted from the firefighter member's paycheck and placed into an individual contribution account
(ICA), as part of the retirement system. ICA's shall be established as allowed by IRS Code. If it is found that
the IRS Code does not allow for an individual account, the reduction in contribution shall be reflected in
the member's paycheck.
(6) Individual contribution accounts.
a. Earnings. Interest on ICA's shall be determined in the same manner as the COLA transfer methodology.
Interest shall be credited periodically to the ICA's as determined by the retirement system board's
actuary, but not less than once a year.
b. Disbursements. Member contributions and earnings in ICA's shall be deemed 100 percent vested upon
deposit. Upon the member's separation, ICA balances shall be disbursed as provided under the IRS Code.
Disbursement of ICA funds may only occur upon separation or as mandated under the IRS Code.
(7) a. Effective the first full pay period following October 1, 2012, the member contribution for police officers
hired prior to October 1, 2012 shall be ten percent of earnable compensation; and effective September 30,
2014, the member contribution for police officers hired prior to October 1, 2012 shall be seven percent of
earnable compensation. The member contribution for police officers hired on or after October 1, 2012
shall be three percent of earnable compensation greater than the member contribution for police officer
members hired prior to October 1, 2012.
b. Effective the first full pay period following October 1, 2012, the member contribution for firefighters shall
be ten percent of earnable compensation. On September 30, 2014, the member contribution for
firefighters shall be seven percent of earnable compensation. The member contribution for firefighters
hired on or after October 1, 2014, shall be ten percent of earnable compensation.
(b) City contributions. Effective October 1, 1993, the city's annual fiscal contribution to the retirement system shall
provide for the following: (1) noninvestment expenses of the retirement system; and (2) required actuarial costs
of the retirement system.
(1) The city's contribution for noninvestment expenses of the retirement system in any given fiscal year shall be
determined by the same process the city uses for that fiscal year in determining the budget of the downtown
development authority and the department of off-street parking.
(2) The city's contribution to the retirement system shall be determined by applying the individual entry age
actuarial funding method, as such method is defined by the American Academy of Actuaries, to the projected
liabilities of the system as of October 1, 2011, using an assumed system payroll growth rate of three percent
and using an unfunded liability amortization period of 25 years, or such other reasonable payroll growth rate
and amortization period as agreed by the retirement system's actuary and the city's actuary. The contribution
shall be determined as of October 1 of each year (based on the valuation payroll and the program provisions
in effect at that time) for the fiscal year beginning on the subsequent October 1, adjusted for interest for one
year, based on the actuarial assumptions.
(3) Effective as of the actuarial valuation for October 1, 1998, the investment assumption shall be net of any
investment expense assumptions.
(4) The actuarial methodology for evaluating assets shall be a moving market value averaged over three years,
from October 1, 1992, prospectively. (As of October 1, 1992, market value shall be used; as of October 1,
1993, a two-year moving average shall be used; as of October 1, 1994, and thereafter, the three-year moving
average shall be used.) The average of ratios of market to book values as of the current and two most recent
September 30's is applied to book value at the current September 30. The result cannot be greater than 100
percent of market value or less than 80 percent of market value.
(5) The parties recognize that the amount to be contributed by the city to normal costs in any given year is
affected by the assumptions made by the actuaries who calculate the normal costs by the method set forth in
subsection (b)(2) above.
(6) The calculation for normal costs shall be performed separately by actuaries for the city and for the
retirement system each using the method set forth in subsections (2), (3) and (4) above. The retirement
system's actuary shall use the actuarial assumptions adopted by the board. The city's actuary may use any
actuarial assumptions deemed appropriate by that actuary. If the retirement system's actuary and the city's
actuary agree on the normal costs contribution for the city, that amount shall be contributed by the city. If
the two actuaries cannot agree on the normal costs of contribution after attempting to do so, they shall
promptly select an independent third actuary. If they are unable to agree on a third actuary, one shall be
selected by the American Academy of Actuaries. The third actuary shall, as soon as practicable, submit a
funding recommendation utilizing standard acceptable funding techniques and assumptions to the
retirement system and the city commission. The city commission shall then fund the amount recommended
by either the retirement system's actuary or the city's actuary, whichever recommendation is closer to the
recommendation of the third actuary.
(7) On or before May 15 of each year, the board shall certify to the city manager:
a. The amount of appropriation necessary to pay the normal costs to the retirement system for the next
fiscal year; and
b. The amount of appropriation required to pay the noninvestment expenses of the retirement system for
the next fiscal year.
(8) All contributions made by the city to the retirement system for any given fiscal year shall be made quarterly,
plus interest, in equal payments, on the first day of each quarter during the fiscal year in question; or sooner,
at the city's option, with appropriate interest adjustment. If the amount of the contribution for normal costs
to the retirement system has not been determined by the payment date, then the city shall make quarterly
payments, based upon the prior year's contribution. Once the amount of normal costs is determined, if the
amount of the contribution differs from the amount previously paid, then a corresponding adjustment shall
be made in full on the next quarterly payment.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 11110, § 2, 1-13-94; Code 1980, § 40-205; Ord. No. 11300, § 1, 9-14-95; Ord. No.
11752, § 2, 1-26-99; Ord. No. 13072, § 2, 6-11-09; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13210, § 1, 10-14-10; Ord. No. 13344,
§ 1, 9-27-12)
Sec. 40-197. - Accounts.
(a) Membership account.
(1) The membership account shall be credited with the accumulated contributions of each member of the
retirement system and the accumulated contributions of each member absent from service.
(2) Accumulated contributions withdrawn by a member or withdrawn by a member absent from service, and
accumulated contributions paid to a legal representative or designated beneficiary in the event of a
member's death while a member, shall be charged to the membership account.
(3) Upon the retirement of a member or upon a member's election of a vested right to retirement, an amount
equal to the member's accumulated contributions shall be transferred from the membership account to the
benefit account.
(b) Benefit account.
(1) The benefit account shall be credited with accumulated contributions transferred from the membership
account, all city contributions to the retirement system, all miscellaneous income payable to the retirement
system, all interest and dividends earned on the funds of the retirement system (except as provided in
paragraph (b)(1)b below), and all reserves for payment of retirement system benefits.
a. Miscellaneous income. The benefit account shall be credited with any miscellaneous income payable to
the retirement system. Such income includes:
1. All fines and penalties imposed on firefighters or police officers for breach of any rule of the police or
fire -rescue departments;
2. All rewards in moneys, fees, gifts and emoluments that may be paid or given for or on account of
extraordinary service by the police or fire -rescue departments or any member thereof (except when
allowed to be retained by competitive award or by the rules of the departments), and all moneys, gifts
or donations received or given or earned by the police and fire -rescue departments for pension or
retirement benefits; and
3. All other sums which may be paid or payable to the retirement system other than pursuant to this
division.
Miscellaneous income shall be applied as a credit against contributions otherwise required to be made to
the retirement system by the city.
b. Interest and dividends. All interest and dividends earned on the funds of the retirement system shall be
credited to the benefit account. On January 1 of each year, the board shall transfer, from the benefit
account to the membership account, amounts sufficient to allow regular interest on the balances of the
members' accounts in the membership account. "Regular interest" shall mean interest at such
percentage rate compounded annually as shall be determined by the board to be equitable both to
members and to taxpayers of the city, after taking into consideration the actual interest earnings of the
retirement system for the preceding years and the probable earnings of the system in the future. Such
rate shall be limited to a minimum of three percent and a maximum of four percent.
(2) All expenses of the retirement system shall be chargeable to the benefit account. Such expenses include, but
are not limited to, the following:
a. All retirement benefits paid to beneficiaries of the Miami city employees' retirement system and to
beneficiaries of the City of Miami firefighters' and police officers' retirement trust; and
b. All retirement allowances paid to persons under the provisions of the former pension and/or retirement
fund for members of the police and fire -rescue departments of the City of Miami or paid to former
members of that fund who did not become members of the Miami city employees' retirement system.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-206)
Sec. 40-198. - Physical examination required; effect of preemployment disability.
(a) An employee must submit to a physical examination by the city physician or some other physician authorized by
the board before such employee may be accepted as a member of the retirement system.
(b) Upon commencement of active membership in the retirement system, a member with a specific disability at the
time of employment by the city shall waive in writing any right to an accidental or service -incurred disability
retirement allowance based on the member's preemployment disability or any aggravation thereof. A member
with a preemployment disability shall be eligible for an accidental or service -incurred disability retirement
allowance only if it can be shown to the satisfaction of the board that such member would have been entitled to
an accidental or service -incurred disability retirement allowance notwithstanding the preemployment disability.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-207)
City Code cross reference —Physical examination required for membership in retirement system or plan, medical
requirements for membership, § 40-3.
Sec. 40-199. - Membership; right of certain persons to reject membership.
(a) The membership of the retirement system shall include all employees, and any member who is absent from service
than three years in a period of five consecutive years after last becoming a member and who has not withdrawn his
accumulated contributions. The active membership of the retirement system shall include all employees but shall n
include any member absent from service or any DROP participant.
(b) With the exception of persons eligible to decline membership in the retirement system, participation in the
retirement system is a mandatory condition of employment for employees. An employee's acceptance of
employment with the city shall constitute authorization for the city to pick up contributions from the earnable
compensation of the employee, unless and until an election is made. Those persons employed in the following
positions shall have the right to reject membership in the City of Miami firefighters' and police officers'
retirement trust ("retirement system") within one year from their respective commencements of employment
with the city, subject to performance of the conditions set forth in paragraphs (b)(1) and (2), below, within the
aforesaid time period: chief of the fire -rescue department, assistant chiefs of the fire -rescue department, chief of
police and assistant chiefs of police. The conditions upon which membership in the retirement system may be
rejected by any person employed in any of the foregoing positions shall be as follows:
(1) Submission to the commission of a written trust agreement wherein the employee rejects membership in the
retirement system and wherein provision is made for the city to contribute moneys on behalf of such
employee to a public trust fund designated by the employee and approved by the commission, such
contribution to be made in lieu of the city's contribution on behalf of the employee to the retirement system.
a. The contribution to be made by the city under the terms of the above agreement shall be calculated at
the rate of eight percent of the individual's annual earnable compensation.
b. A contribution to the designated public trust fund must be made by the employee rejecting membership
in the retirement system, and such contribution by the employee shall be picked up by the city at a rate
of not less than five percent of the employee's annual earnable compensation.
c. An employee may, if so provided in the trust agreement, take actual or constructive receipt of his or her
contribution, or those contributions made by the city on his or her behalf prior to reaching age 55 or
upon becoming permanently and totally disabled by making a revocable election of distribution of
accounts pursuant to the mode of distribution of benefits as provided in the trust agreement.
(2) If an eligible employee fails to comply with all of the conditions set forth above, the employee shall not have
the right to reject membership in the retirement system.
(c) Should any member in any period of five consecutive years after last becoming a member be absent from service
more than three years, or should any member withdraw accumulated contributions, or should any member
become a member of any other city -sponsored retirement plan or system, or should any member become a
beneficiary or die, he or she shall thereupon cease to be a member of the retirement system.
(d) Upon request by the board, the city manager shall submit to the board a statement showing the name, title,
compensation, duties, date of birth and length of service of each member, as well as such other information
regarding members as the board may require in order to transact the business of the retirement system.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10458, § 1, 7-14-88; Code 1980, § 40-208; Ord. No. 11300, § 1, 9-14-95)
Sec. 40-200. - Transfer of city employees to retirement system.
(a) Any person employed by the city in a capacity other than firefighter or police officer, who is reclassified and
appointed to the position of firefighter or police officer and who, prior to such appointment, was a member of
the City of Miami general employees' and sanitation employees' retirement trust ("retirement plan") shall have
membership in the retirement plan transferred to the retirement system, effective the date of such appointment.
Creditable service earned while a member of the retirement plan shall be deemed creditable service in the
retirement system upon such transfer.
(b) Commencing on the effective date of transfer to the retirement system, a member who has transferred from the
retirement plan shall make regular contributions at the rate required by the retirement system. Accumulated
contributions credited in the retirement plan to the account of such member shall be transferred to the
membership account of the retirement system and credited to the member thereunder. There shall also be
transferred, from the benefit account of the retirement plan to the benefit account of the retirement system, the
amount of assets, as determined by actuarial valuation, held by the retirement plan for any plan member who
transfers to the retirement system.
(c) Any member of the retirement system who transferred from the retirement plan may contribute to the
retirement system an amount computed to be sufficient with the member's prospective regular contributions to
make accumulated contributions at normal retirement age equal to the amount such accumulated contributions
would have been had the member been a member of the retirement system during his or her entire period of
service with the city. If such election is not made, upon service, early service, rule of 64 or 68 or ordinary disability
retirement, the member's retirement allowance shall be reduced by the actuarial equivalent of the amount by
which accumulated contributions fall short of the full amount which would have been the member's accumulated
contributions had he or she been a member of the retirement system during his or her entire period of service
with the city. Any member who elects to make a contribution pursuant to this subsection, and who is granted
disability retirement under the retirement system, shall have his or her disability retirement allowance reduced
by the actuarial equivalent of the then unpaid amounts.
(1) An election permitted by this subsection must be made on a form provided by the board.
(2) Contributions made by a member pursuant to this subsection may be made either by a single lump -sum
payment or by a series of periodic payments mutually agreed upon by the member and the board, including
periodic deductions from the member's compensation. Regardless of the manner of payment, an amount to
be contributed pursuant to this subsection must be paid to the retirement system within five years of
notification to the member of the amount to be contributed.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-209; Ord. No. 13091, § 1, 9-24-09)
Sec. 40-201. - Creditable service.
(a) For any member of the retirement system, creditable service shall consist of all time spent in membership
service since last becoming a member, plus any other time for which membership credit is received pursuant to
the provisions of this division. Creditable service previously obtained as a member of the Miami city employees'
retirement system shall be deemed creditable service under the City of Miami firefighters' and police officers'
retirement trust to the extent such service remained credited to the member on May 23, 1985.
(b) The board shall fix and determine by appropriate rules and regulations the amount of service in any year which
is equivalent to a year of membership service, but in no case shall more than one year of membership service be
creditable for all service in one calendar year. The board shall not allow credit for membership service for any
period of more than one month during which an employee is continuously absent without pay. Subject to the
foregoing restrictions, the board may adopt rules and regulations to verify membership credit claimed by any
member.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-210)
Sec. 40-202. - Paybacks for membership credit.
Members shall have the right to receive membership credit in the retirement system in accordance with the following
provisions:
(1) Credit for previous membership service for certain reemployed former members.
a. If a former member of the retirement system who is not a beneficiary and is not within five years of
reaching normal retirement age, whose membership has not been terminated for a period in excess of
three years and who, at the time of termination of membership, had five or more years of creditable
service, again becomes a member, he or she may apply for membership credit for prior membership
service by filing with the board an election to pay back the amount of accumulated contributions
previously returned to him or her. If an election to receive membership credit is made pursuant to this
paragraph, a member shall pay back withdrawn accumulated contributions at the rate in effect when his
or her previous membership terminated, together with regular interest thereon, or, subject to the
approval of the board, pay back an amount equal to the total amount of accumulated contributions
previously withdrawn, together with regular interest thereon.
b. If a former member, who is not a beneficiary, again becomes a member and is not otherwise eligible to
receive membership credit pursuant to subsection (1)a, he or she may apply to the board for
membership credit for prior membership service up to a maximum of four years, provided separation
from prior employment was under honorable conditions. If an election to receive membership credit is
made pursuant to this paragraph, the amount of contributions to be paid back on account of prior
membership service shall be based upon the member's current earnable compensation and the current
contribution rate, excluding interest.
c. If a former member of the retirement system was terminated by the city due to reduction in personnel
and is thereafter reemployed by the city within a period of three years, he or she may apply for
membership credit for prior membership service by filing with the board an election to pay back the
amount of accumulated contributions previously returned to him or her. If an election to receive
membership credit is made pursuant to this paragraph, a member shall pay back withdrawn accumulated
contributions to the retirement system in an amount determined by the board. Credit shall not be
allowed under the provisions of this paragraph for employment with the city prior to January 1, 1940.
d. Any election permitted by this subsection must be made on a form provided by the board. The form shall
be sent to a member by registered mail and must be returned to the board within 30 days following
receipt thereof in order to establish the election desired.
e. Contributions made by a member pursuant to this subsection may be made either by a single lump -sum
payment or by a series of periodic payments mutually agreed upon by the member and the board,
including periodic deductions from the member's compensation. Regardless of the manner of payment,
any payback of contributions pursuant to the subsection must be completed within five years of
notification to the member of the amount to be paid back.
f. Upon timely payment in full of a payback permitted by this subsection, and following a period of five years c
membership subsequent to a member's date of restoration, a member shall be credited with his or her pre%
membership service; provided, that in the event of disability retirement prior to the preceding terms having
member shall receive credit for previous service but his or her disability benefit retirement allowance shall t
the actuarial equivalent of the unpaid portion of the amount to be paid back.
g. Any person restored to active membership who is eligible to, but does not, make an election provided for
in this subsection, or who, having made the election, fails to complete a payback within the required time
(except as otherwise provided in paragraph (1)f above), shall be considered a new member for all
purposes of the retirement system as of his or her date of restoration and shall not be entitled to any of
the rights and benefits provided under this subsection.
(2) Credit for previous employment for certain laborers, securityguards and custodial workers.
a. Any member who has denied the right at any time between April 1, 1955, and September 1, 1962, to
participate in the Miami city employees' retirement system or in the Miami city general employees' plan
by reason of employment with the city as a laborer, security guard or custodial worker, may receive
membership credit for time employed as a laborer, security guard, or custodial worker between the
aforesaid dates, provided that:
1. The member files a written claim with the board on or before December 31, 1995, which claim shall
state all employment with the city between April 1, 1955, and September 1, 1962, as well as any other
facts the board may require for the proper determination of the membership credit claimed pursuant
to this subsection; and
2. The member, prior to retirement or departure from city employment, pays to the retirement system
contributions for the membership credit claimed. Such contributions shall be computed at the then
contribution rate of the member's group and class times the member's then annual earnable
compensation, plus four percent interest thereon, compounded annually from the date of first
creditable service hereunder to the date of payment.
b. Contributions made by a member pursuant to this subsection may be made either by a single lump -sum
payment or by a series of periodic payments mutually agreed upon by the member and the board,
including periodic deductions from the member's compensation. Regardless of the manner of payment,
an amount to be contributed pursuant to this subsection must be paid to the retirement system within
five years of notification to the member of the amount to be contributed.
c. A payback permitted by this subsection must be completed in full and within the required time period in
order for any membership credit granted hereunder to be utilized as a basis for determining any
retirement system benefit.
(3) Credit for military service.
a. Notwithstanding any provision in this division to the contrary, any employee who was a member of the
retirement system prior to entry into military service, and who did not withdraw accumulated
contributions prior to military service, who was granted a leave of absence by the city under the
provisions of Resolution No. 16366, passed and adopted by the commission August 28, 1940, as amended
by Resolution No. 18115, passed and adopted by the commission March 24, 1943, and who returns to
service under the provisions of such resolution, shall retain membership in the retirement system
regardless of the length of the period of absence. In determining the creditable service of any firefighter
or police officer whose retirement becomes effective on or after December 31, 1999, credit for up to a
maximum of five years of the time spent in the military service of the Armed Forces of the United States
shall be added to the years of actual service, if: (i) the firefighter or police officer is in the active employ of
the city prior to such service and leaves a position, other than a temporary position, for the purpose of
voluntary or involuntary service in the Armed Forces of the United States; and (ii) the firefighter or police
officer is entitled to reemployment under the provisions of the Uniformed Services Employment and
Reemployment Rights Act; and (iii) the firefighter or the police officer returns to his or her employment as
a firefighter or police officer of the city within one year from the date of his or her release from such
active service. Any member of the retirement system who qualifies for service credit as hereinabove set
forth and serves a period of time in excess of five years shall, receive membership credit for the time
spent in the military service in excess of five years, by contributing the amount he or she would have
contributed had he or she remained in service for the period of time in excess of five years. Payments
made to the retirement system pursuant to this paragraph shall be made in such manner as the board
prescribes.
b. Any member of the retirement system who withdrew accumulated contributions due to entrance into
military service during World War II, and who qualifies under the provisions of Resolution No. 16366,
passed and adopted by the commission August 28, 1940, as amended by Resolution No. 18115, passed
and adopted by the commission March 24, 1943, may receive membership credit for prior membership
service by redepositing the accumulated contributions withdrawn, together with regular interest thereon,
in such manner as shall be prescribed by the board.
c. Any member who has served on active military duty but is ineligible to claim credit for such service under
subsection (3)a or (3)b shall receive membership credit up to a maximum of four years for the time spent
on active military service in the armed forces of the United States, provided that:
1. The active military service was wartime service as declared by federal statute or executive order, and
the member presents to the board such proof of wartime service as the board shall determine to be
sufficient;
2. The member was discharged or released from the military service under honorable conditions;
3. The member has completed ten years of creditable service;
4. The member elects to claim membership credit on a form provided by the board, which form shall be
sent to eligible members by registered mail upon completion of ten years' creditable service and must
be returned to the board within 30 days after receipt thereof in order to establish such election; and
5. The member, prior to retirement, pays to the retirement system contributions for such military
service. Such contributions shall be computed at the current contribution rate times the member's
first year of earnable compensation subsequent to July 1, 1945, for which creditable service has been
earned under the retirement system, plus four percent interest thereon, compounded annually from
the date of first creditable service to the date of payment.
Contributions made by a member pursuant to this paragraph may be made either by a single lump -sum
payment or by a series of periodic payments mutually agreed upon by the member and the board, including
periodic deductions from the member's compensation. Regardless of the manner of payment, an amount to
be contributed pursuant to this subsection must be paid to the retirement system within five years of
notification to the member of the amount to be contributed. If, however, any member receives disability
retirement prior to the completion of a payback elected under this paragraph, the member shall be credited
with the military service claimed but his or her disability benefit shall be reduced by the actuarial equivalent
of the unpaid portion of the amount to be paid back.
(4) Credit for maternity leave.
a. Any member of the retirement system who, prior to March 8, 1984, took an unpaid leave of absence for
maternity purposes shall be eligible to receive membership credit for such unpaid leave up to a
maximum of 180 days. Said election shall be available until June 24, 1985. Those members electing to
claim membership credit pursuant to this provision shall pay into the retirement system accumulated
contributions at the current contribution rate times their current earnable compensation, such payment
to be made either in a lump sum or prorated over a period not to exceed one year.
b. On or after May 23, 1985, members shall be eligible to receive membership credit for unpaid leave taken
for maternity purposes up to a maximum of 180 days, provided that they have exhausted all vacation
time, sick leave time, earned overtime, or similar time. Those members electing to claim membership
credit pursuant to this provision shall pay into the retirement system accumulated contributions at the
current contribution rate times their current earnable compensation, such payment to be made either in
a lump sum or prorated over a period not to exceed one year. Any payback made pursuant to this
paragraph must commence within 30 days of the member's return from the unpaid maternity leave.
(5) Restoration of service credit for prior continuous service. Any member who has continuous service with the
City of Miami prior to becoming a member of the system may elect to claim membership credit for such prior
service provided that such member pay back for said prior continuous service in the following manner: (1) If it
has been determined that an error occurred (which resulted in a delay in enrollment in the system) and such
error was through no fault of the member and there is no evidence that the member had been offered an
opportunity to payback at the time such error was discovered, then the payback shall be computed at the
rates prevailing at the time the error occurred, with regular interest thereon to date; (2) if it has been
determined that no error occurred (which resulted in a delay in enrollment in the system) or that such error
did occur and was the fault of the member or there is evidence that such error was not the fault of the
member but he/she had been offered an opportunity to payback at the time such error was discovered and
chose not to elect to pay back at that time, then the payback shall be computed at current rates without
interest. Such payment is to be made either in a lump sum or prorated over a period not to exceed five years
from the date such member receives the board's verification of the amount. If however, any member
receives a disability retirement prior to the completion of a payback elected under this paragraph, the
member shall be credited with the time purchased but his or her disability benefit shall be reduced by the
actuarial equivalent of the unpaid portion of the amount to be paid back.
(6) Creditable service years purchase.
a. Firefighter members.
1. A retiring firefighter member, including I.A.F.F. bargaining unit member, who does not participate in
the DROP and retires under service retirement, or rule of 64 or 68 retirement, may purchase from
available leave balances, whole years of creditable service up to a maximum of three years. The
purchase of creditable service under this subsection may not be utilized for eligibility for either
service retirement, or rule of 64 or 68 retirement. Once the leave balances have been applied toward
the purchase of whole years of creditable service, and the amount thereof actually paid to and
received by the trust, the member may purchase the balance of the three years by a lump sum cash
payment to the trust. Leave balances shall be determined in accordance with the applicable labor
agreement and/or leave payoff practices. The cost of creditable service purchased shall be the
prorata actuarially determined present value based upon the member's average final compensation
used to determine the member's retirement benefit. This benefit shall be available using after tax
value of the member's leave balance; if, in the future, the issue of income taxes is resolved, then it will
be available using pre-tax value of the member's leave balances. Effective June 12, 2007, firefighter
members and I.A.F.F. bargaining unit members, including those electing to participate in either the
FORWARD DROP or BACDROP, may elect to transfer funds from their accounts in the Miami
Firefighters' Relief and Pension Fund (175) to the trust to purchase the three years of creditable
service referred to herein. Members may purchase three whole creditable service years by a lump
sum payment of cash to the trust or a tax qualified transfer of funds from a member's 457 Deferred
Compensation Plan at present value as actuarially determined for each individual member. In no case
shall a firefighter member, including I.A.F.F. bargaining unit member, purchase more than three years
of creditable service through any combination of the above provisions. No benefit provided under this
subsection shall be effective unless and until full payment in accordance herewith is made.
2. Effective the full pay period following October 1, 2009, the following provisions shall supersede the
provisions of subsection a.1., and govern the purchase of creditable service by firefighter members,
including, but not limited to, I.A.F.F. bargaining unit members:
A. A retiring firefighter member, including, I.A.F.F. bargaining unit member, who does not participate
in the DROP and retires under service retirement, or rule of 64 or 68 retirement, may purchase up
to three whole years of creditable service utilizing the member's available leave balances, a tax
qualified transfer of funds to the trust from the member's 457 Deferred Compensation Plan at
present value as actuarially determined for the individual retiring member, lump sum payment of
cash to the trust, or funds transferred to the trust from the member's account with the Miami
Firefighters' Relief and Pension Fund (175).
B. A retiring firefighter member, including I.A.F.F. bargaining unit member, who participates in either
the FORWARD DROP or BACDROP, may purchase up to three whole years of creditable service
utilizing a tax qualified transfer of funds to the trust from the member's 457 Deferred
Compensation Plan at present value as actuarially determined for the individual retiring member,
a lump sum payment of cash to the trust, or funds transferred to the trust from the member's
account with the Miami Firefighters' Relief and Pension Fund (175).
C. The following provisions shall apply to all purchases of creditable service under paragraphs a.2.A.
and 2.B..
i. The purchase of creditable service shall be allowed only immediately prior to retirement.
ii. The purchase of creditable service may not be utilized for eligibility for either service
retirement, or rule of 64 or 68 retirement. Once the leave balances or the funds from the
member's account with the Miami Firefighters' Relief and Pension Fund (175) or those from
the member's 457 Deferred Compensation Plan have been applied toward the purchase of
whole years of creditable service, and the amount thereof actually paid to and received by the
trust, the member may purchase the balance of the three years by a lump sum cash payment
to the trust. Leave balances shall be determined in accordance with the applicable labor
agreement and/or leave payoff practices. The cost of creditable service purchased shall be the
prorata actuarially determined present value based upon the member's average final
compensation used to determine the member's retirement benefit. The use of leave balances
shall be available using after tax value of the member's leave balance; if, in the future, the
issue of income taxes is resolved, then it will be available using pre-tax value of the member's
leave balances. In no case shall a member purchase more than three years of creditable
service through any combination of the above provisions. No benefit provided under this
subsection shall be effective unless and until full payment in accordance herewith is made.
b. Police officer members.
1. A police officer member, including F.O.P. bargaining unit member, who retires on or after April 26,
2007, and does not participate in the DROP and retires under service retirement or rule of 64
retirement, may purchase up to three whole years of creditable service utilizing the member's
available leave balances, a tax qualified transfer of funds from the member's 457 Deferred
Compensation Plan at present value as actuarially determined for the individual retiring member, or a
lump sum cash payment. The purchase of creditable service under this subsection may not be utilized
for eligibility for either service retirement or rule of 64 retirement. Once the leave balances and/or
funds from the member's 457 Deferred Compensation Plan have been applied toward the purchase
of whole years of creditable service, and the amount thereof actually paid to and received by the
trust, the member may purchase the balance of the three years by a lump sum cash payment to the
trust. Leave balances shall be determined in accordance with the applicable labor agreement and/or
leave payoff practices. The cost of creditable service purchased shall be the prorata actuarially
determined present value based upon the member's average final compensation used to determine
the member's retirement benefit. This benefit shall be available using after tax value of the member's
leave balance; if, in the future, the issue of income taxes is resolved, then it will be available using pre-
tax value of the member's leave balances. In no case shall a member purchase more than three years
of creditable service through any combination of the above provisions. No benefit provided under this
subsection shall be effective unless and until full payment in accordance herewith is made. A police
officer member, including F.O.P. bargaining unit member, shall only be allowed to purchase creditable
service under this sub -section immediately prior to the member's retirement.
2. A police officer member, including F.O.P. bargaining unit member, who retires on or after April 26,
2007, and participates in the DROP may purchase up to three whole years of creditable service
utilizing a tax qualified transfer of funds from a member's 457 Deferred Compensation Plan at
present value as actuarially determined for the individual retiring member, or a lump sum cash
payment. The purchase of creditable service under this subsection may not be utilized for eligibility
for either service retirement or rule of 64 retirement. Once the funds from the member's 457
Deferred Compensation Plan have been applied toward the purchase of whole years of creditable
service and the amount thereof actually paid to and received by the trust, the member may purchase
the balance of the three years by a lump sum cash payment to the trust. The cost of creditable service
purchased shall be the prorata actuarially determined present value based upon the member's
average final compensation used to determine the member's retirement benefit. In no case shall a
member purchase more than three years of creditable service through any combination of the above
provisions. No benefit provided under this subsection shall be effective unless and until full payment
in accordance herewith is made. A police officer member, including F.O.P. bargaining unit member,
shall only be allowed to purchase creditable service under this subsection immediately prior to the
member's retirement, including entry into the DROP.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10910, § 1, 9-5-91; Ord. No. 11235, § 1, 3-27-95; Code 1980, § 40-211; Ord. No. 11300,
§ 1, 9-14-95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 11944, § 2, 7-27-00; Ord. No. 12203, § 2, 3-27-02; Ord. No. 12718, § 2, 7-
28-05; Ord. No. 12941, § 2, 9-11-07; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13676, § 2, 4-27-17)
Sec. 40-203. - Benefits.
(a) Service retirement.
(1) Any member in service who has ten or more years of creditable service may elect to retire upon the
attainment of normal retirement age. Such election shall be made upon written application to the board,
setting forth not less than ten nor more than 90 days subsequent to the execution and filing thereof, the date
the member desires to be retired.
(2) For police officer members, normal retirement age for members employed on September 26, 2010 who as of
that date had attained ten or more years of creditable service shall be rule of 64 retirement or age 50 with
ten years of creditable service including members who retired or entered DROP on or after September 26,
2010. For firefighter members, normal retirement age for members employed on September 26, 2010 who as
of that date had attained ten or more years of creditable service shall be rule of 68 retirement or age 50 with
ten years of creditable service including members who retired or entered DROP on or after September 26,
2010. Members may continue in service after attaining normal retirement age and participate in all aspects of
the retirement system.
(3) A member exercising service retirement on or after October 4, 1991, and before January 9, 1994, shall be
entitled to receive a retirement allowance equal to 2.75 percent of the member's average final compensation
multiplied by years of creditable service, which amount shall be paid yearly in monthly installments. A
member exercising service retirement on or after January 9, 1994 shall be entitled to receive a retirement
allowance equal to 2.75 percent of the member's average final compensation multiplied by years of
creditable service for the first 15 years of such creditable service. Such member shall also be entitled to
receive a retirement allowance equal to three percent of member's final average compensation multiplied by
the years of creditable service in excess of 15 years.
A police officer member exercising service retirement on or after May 28, 1995, shall be entitled to receive a
retirement allowance equal to 2.75 percent of the member's average final compensation multiplied by years
of creditable service for the first 15 years of such creditable service. Such member shall also be entitled to
receive a retirement allowance equal to three percent of member's final average compensation multiplied by
the years of creditable service in the excess of 15 years, which amount shall be paid yearly in monthly
installments.
A firefighter member exercising service retirement on or after May 28, 1995, shall be entitled to receive a
retirement allowance equal to three percent of the member's average final compensation multiplied by years
of creditable service, which amount shall be paid yearly in monthly installments.
(4) Effective October 1, 1998, a member exercising service retirement on or after October 1, 1998 shall be
entitled to receive a retirement allowance equal to three percent of the member's average final
compensation multiplied by years of creditable service for the first 15 years of such creditable service. Such
member shall also be entitled to receive a retirement allowance equal to three and one-half percent of
member's final average compensation multiplied by the years of creditable service in excess of 15 years,
which amount shall be paid yearly in monthly installments.
(5) A member eligible for service retirement may choose any one of the optional allowances available to him or
her on the date of retirement, as provided in subsection (m).
(b) Rule of 64 or rule of 68 retirement.
(1) Any member in service who did not withdraw from active membership in the retirement system and retiring
effective May 28, 1995, may elect service retirement on the basis of his or her combined age and creditable
service equaling 64 for police officer members and 68 for fire fighter members, or more provided that the
member has reached minimum vesting requirements. Such election shall be made upon written application
to the board no less than ten days nor more than 90 days subsequent to the execution and filing thereof, the
date the member desires to be retired.
(2) Upon rule of 64 retirement, on or after May 28, 1995, a police officer member shall be entitled to receive a
retirement allowance equal to 2.75 percent of the member's average final compensation multiplied by the
years of creditable service for the first 15 years of such creditable service. Such member shall also be entitled
to receive a retirement allowance equal to three percent of the member's final average compensation
multiplied by the years of creditable service in excess of 15 years.
Upon rule of 64 retirement, a firefighter member retiring on May 28, 1995, shall be entitled to receive a
retirement allowance equal to three percent of the member's average final compensation multiplied by years
of creditable service which amount shall be paid yearly in monthly installments.
A member eligible for rule of 64 or rule of 68 retirement may choose one of the optional allowances available
to him or her on the date of retirement, as provided in subsection (m).
(3) Upon rule of 64 retirement for police officer members on or after October 1, 1998, or upon the Rule of 68
retirement for fire fighter members on or after October 1, 2009, a member shall be entitled to receive a
retirement allowance equal to three percent of the member's average final compensation multiplied by years
of creditable service for the first 15 years of such creditable service. Such member shall also be entitled to
receive a retirement allowance equal to three and one-half percent of member's final average compensation
multiplied by the years of creditable service in excess of 15 years, which amount shall be paid yearly in
monthly installments. A member eligible for rule of 64 or rule of 68 retirement may choose one of the
optional allowances available to him or her on the date of retirement, as provided in subsection (m).
(c) Limitation on benefits.
(1) Effective October 1, 1998, member retirement allowances shall not exceed 100 percent of the member's final
average compensation for members retiring under service retirement or rule of 64 retirement, and effective
October 1, 2009 for rule of 68 retirement with the following exceptions:
a. Members whose retirement allowances, prior to October 1, 1998, who had already earned 100 percent or
greater of the member's average final compensation shall continue to accrue pension benefits as
outlined under section 40-203.
b. Members whose retirement allowance exceeds 100 percent of their average final compensation as of
October 1, 1998, due to the multiplier change, shall be capped at the new percentage.
(2) Effective June 12, 2007, firefighter member, including, but not limited to, I.A.F.F. bargaining unit member, retirer
allowances shall not exceed 100 percent of the member's final average compensation for firefighter members a
bargaining unit members retiring under service retirement, rule of 64 retirement or rule of 68 retirement.
(3) Members who as of September 26, 2010 had not attained tenor more years of creditable service and
members hired on or after October 1, 2010 shall have a maximum retirement benefit which shall not exceed
the lesser of $120,000.00 or 100 percent of final average compensation. Members who retired prior to
September 26, 2010 shall have no limitation on benefits accrued.
(d) Early service retirement.
(1) Any member in service who has 20 or more years of creditable service may elect to retire on a retirement
allowance which shall be the actuarial equivalent of the service retirement allowance otherwise available to
the member upon the attainment of normal retirement age. Such election shall be made upon written
application to the board, setting forth not less than ten nor more than 90 days subsequent to the execution
and filing thereof, the date the member desires to be retired.
(2) A member eligible for early service retirement may choose any one of the optional allowances available to
him or her on the date of retirement, as provided in subsection (m).
(3) A member who has elected to retire on an early service retirement shall not be eligible to participate in the
DROP.
(e) Vested right to retirement.
(1) If a member who is not entitled to retire ceases to be a city employee for any reason other than death or
willful misconduct in office, he or she may elect to continue as a member not in service and retire upon
subsequent attainment of normal retirement age, provided:
a. That when the member ceases to be a city employee, the member has completed at least ten years of
creditable service; and further provided
b. That the member does not withdraw his or her accumulated contributions.
(2) A member electing to become a member not in service on or after October 4, 1991, and before January 9,
1994, shall be entitled to receive a retirement allowance equal to 2.75 percent of member's average final
compensation multiplied by years of creditable service which amount shall be paid yearly in monthly
installments, upon attainment of normal retirement age. A member electing to become a member not in
service on or after January 9, 1994, shall be entitled to receive a retirement allowance equal to 2.75 percent
of the member's average final compensation multiplied by the average final compensation multiplied by the
years of creditable service for the first 15 years of such creditable service. Such member shall also be entitled
to receive a retirement allowance equal to three percent of member's final average compensation multiplied
by the years of creditable service in excess of 15 years, upon attainment of normal retirement age.
A member electing to become a member not in service on or after October 1, 1998, shall be entitled to
receive a retirement allowance equal to three percent of the member's average final compensation
multiplied by years of creditable service for the first 15 years of such creditable service. Such member shall
also be entitled to receive a retirement allowance equal to three and one-half percent of member's final
average compensation multiplied by the years of creditable service in excess of 15 years, upon attainment of
normal retirement age.
(3) If a member who elects to become a member not in service subsequently elects to withdraw his or her
accumulated contributions, the member not in service shall be paid the amount of his or her accumulated
contributions at the time he or she ceased to be a city employee, excluding all amounts picked up from the
member's earnable compensation and credited to the COLA fund, plus only such regular interest as has been
accumulated during the first three years thereafter.
(4) If a member not in service dies prior to retirement, his or her beneficiary shall be paid the amount of his or
her accumulated contributions at the time he or she ceased to be a city employee, excluding all amounts
picked up from the member's earnable compensation and credited to the COLA fund, plus regular interest
thereon to the date of the member's death.
(5) If a person elects a vested right to retirement under any retirement system or plan sponsored by the city and
thereafter becomes an employee, he or she shall become a new member of the retirement system on the
date employment recommences and shall make regular contributions to the retirement system at the rate
required by subsection 40-196(a). Such member shall be entitled to receive a retirement benefit therefor as if
he or she were a new entrant upon the date of subsequent employment and, in addition, shall be entitled to
receive a retirement benefit for his or her employment in accordance with subsection (d)(2).
(6) A member not in service shall not be eligible to participate in the DROP.
(f) Ordinary disability retirement.
(1) Any member in service who has ten or more years of creditable service but who is not eligible for a service
retirement allowance may, upon written application, be retired by the board on an ordinary disability
retirement allowance; provided, that after medical examination of such applicant, the physician retained by
the board shall certify that the member is mentally or physically totally incapacitated for the further
performance of duty (not as a result of an accident in the actual performance of duty as defined in
subsection (i) of this section), that such incapacity is likely to be permanent, and that such member should be
retired.
(2) a. Upon retirement for ordinary disability on or after October 4, 1991 and before January 9, 1994, a member
shall be entitled to receive a retirement allowance equal to 2.75 percent of 90 percent of the member's
average final compensation multiplied by years of creditable service, which amount shall be paid yearly in
monthly installments, provided such retirement allowance exceeds 30 percent of the member's average
final compensation; otherwise, 30 percent of the member's average final compensation shall be paid
yearly in monthly installments.
b. Upon retirement for ordinary disability on or after January 9, 1994, a member shall be entitled to receive
a retirement allowance equal to 2.75 percent of 90 percent of the member's average final compensation
multiplied by the first 15 years of creditable service. Creditable service of such member in excess of 15
years shall be multiplied by three percent of 90 percent of the member's average final compensation
times years of creditable service, which amount shall be paid yearly in monthly installments, provided
such retirement allowance is at least 30 percent of the member's average final compensation, otherwise
30 percent of the member's average final compensation shall be paid yearly in monthly installments.
c. Upon retirement for ordinary disability on or after October 1, 1998, a member shall be entitled to receive
a retirement allowance equal to three percent of 90 percent of the member's average final compensation
multiplied by the first 15 years of creditable service. Creditable service of such member in excess of 15
years shall be multiplied by three and one-half percent of 90 percent of the member's average final
compensation times years of creditable service which amount shall be paid yearly in monthly
installments, provided such retirement allowance is at least 30 percent of the member's average final
compensation, otherwise 30 percent of the member's average final compensation shall be paid yearly in
monthly installments.
d. For those members who retire effective on or after December 31, 1999, the retirement allowance shall be
payable for life, except that in the event the member dies before such allowance has been received for a
period of ten years, the member's beneficiary or beneficiaries shall be paid the same allowance for the
remainder of the ten-year period.
(3) A member entitled to receive an ordinary disability retirement allowance shall not be eligible for a return of
contributions as provided in subsection 40-2120) for optional allowances as provided in subsection 40-
212(m), nor for participation in the DROP.
(4) A DROP participant shall not be entitled to receive an ordinary disability retirement.
(g) Accidental or service -incurred disability retirement.
(1) Any member in service who, prior to attaining the age of 60, has been totally and permanently incapacitated
for duty as the natural and proximate result of an accident occurring while in the actual performance of duty
at some definite time and place, shall be retired for accidentally incurred disability; provided that:
a. Such incapacity for duty has been total, permanent and continuous from a time prior to the member
attaining the age of 60;
b. The physician retained by the board, after a medical examination of such member, shall certify in writing
that the member is mentally or physically totally incapacitated in accordance with the definition of
permanent total disability;
c. The board shall concur with the report of the physician employed by the board; and
d. The physical condition of the member shall be subject to a review by the physician retained by the board,
at the request of the board, as often as the board shall deem it advisable.
(2) A member may be considered totally and permanently disabled for further performance of duty for the
purpose of this section when said member is unable, due to an accident, illness or injury incurred in the line
of duty, to perform within the member's classification.
(3) a. Any condition or impairment of health caused by tuberculosis, heart disease or hypertension, on the part
of a member, which condition results in total and permanent incapacitation for duty, shall be presumed to
have been accidental and suffered in the line of duty unless the contrary be shown by competent
evidence; provided, however, that any such member shall have successfully passed a physical examination
upon entering into service as a firefighter or police officer, which examination failed to reveal any
evidence of any such condition.
b. Nothing herein shall be construed to extend or otherwise affect the provisions of F.S. ch. 440 pertaining
to workers' compensation.
(4) When deciding whether to grant an accidental or service -incurred disability retirement, the board shall obtain
any and all available information, including, but not limited to, medical reports which the board deems
necessary in order to assist the board in arriving at its decision.
(5) a. Upon retirement for accidental disability or service -incurred disability, a member shall receive a pension
which shall be equal to 66% percent of his/her average final compensation or 66% percent of his/her final
compensation, whichever is greater.
b. For those members who retire effective on or after December 31, 1999, upon retirement for accidental disal
incurred disability, a member shall receive a retirement allowance payable for life which shall be equal to 66
the member's average final compensation or 66% percent of the member's final compensation, whichever i!
except that in the event a member dies before such allowance has been received for a period of ten years, t
beneficiary or beneficiaries shall be paid the same allowance for the remainder of the ten-year period.
(6) A member entitled to receive an accidental or service -incurred disability retirement allowance shall not be
eligible for a return of contributions as provided in subsection 0), for optional allowances as provided in
subsection (m), nor for participation in the DROP.
(7) In lieu of the benefits set forth in subsection (5) above, upon the death of any member who has received an
accidental or service -incurred disability retirement, the spouse of said member who has been nominated and
designated by the member as said member's beneficiary if eligible shall receive the payment of an amount
equal to 40 percent of the member's monthly retirement allowance during the lifetime of said spouse, in
accordance with subsection (n) of this section.
(8) A DROP participant shall not be entitled to receive an accidental or service -incurred disability retirement.
(h) Ordinary death benefit.
(1) Upon receipt by the board of proper proofs of the death of a member in service who has three or more years
of creditable service, which death is not the result of an accident in the actual performance of duty as defined
in subsection (i) of this section, there shall be paid to such person, if any, as the member shall have
nominated by written designation duly executed and filed with the board, otherwise to the member's legal
representative, a benefit equal to a lump -sum payment of 50 percent of the earnable compensation received
by the member during the year immediately preceding the member's death.
(2) For those members who retire effective on or after December 31, 1999, the member's beneficiary or
beneficiaries shall be entitled to the benefits otherwise payable to the member at early or normal retirement
age for a period of ten years, should a member having at least ten years of creditable service die prior to
retirement. Anything herein to the contrary, notwithstanding this provision, shall not be implemented as to
police officer members unless and until there are "additional premium tax revenues" as defined in F.S. §
185.35(1)(b), to the extent necessary to fund such benefit.
(3) a. Notwithstanding any provision in this division to the contrary, in the event a member who has become
eligible for service, early service or rule of 64 retirement but has not retired dies, the member shall be
considered to have been retired on the date of death. In such event the payment of 40 percent of the
member's monthly retirement allowance shall be paid at the member's death to the member's spouse
during the lifetime of such spouse or, at the option of such spouse, the spouse shall receive the sum of
the deceased member's accumulated contributions to the date of death plus a benefit equal to a lump -
sum payment of 50 percent of the earnable compensation received by the member during the year
immediately preceding the member's death.
b. In lieu of the benefits set forth in subsection (2), for those members who retire effective on or after
December 31, 1999, in the event a member who has become eligible for service, or early service
retirement but has no retired dies, the member shall be considered to have been retired on the date of
death. In such event the payment of 40 percent of the member's monthly retirement allowance shall be
paid at the member's death to the member's spouse during the lifetime of such spouse or, at the option
of such spouse the spouse shall receive the sum of deceased member's accumulated contributions to the
date of death plus a benefit equal to a lump -sum payment of 50 percent of the earned compensation
received by the member during the year immediately preceding the member's death.
(4) If a retired member dies prior to having received 12 monthly retirement allowance payments and prior to any
optional allowance elected by the member having become effective, there shall be paid to such person, if
any, as the member shall have nominated by written designation duly executed and filed with the board,
otherwise, to the member's legal representative, a lump -sum benefit equal to the sum of the 12 monthly
retirement allowance payments to which the member would otherwise have become entitled, less the
payments the member received.
(5) Notwithstanding the foregoing, any pre -retirement death benefit payable under this section shall be
"incidental" in compliance with Treasury Regulations Section 1.4011 (b)(1).
(6) In the case of a death occurring on or after January 1, 2007, if a member dies while performing qualified
military service (as defined in Code Section 414 (u)), the survivors of the member are entitled to any
additional benefits (other than benefit accruals relating to the period of qualified military service) provided
under the plan as if the member had resumed and then terminated employment on account of death.
(i) Accidental death benefit.
(1) If the board shall decide that the death of a member in service was the result of an accident in the
performance of duty and not caused by willful negligence on the part of the member, then there shall be paid
an amount equal to one-half of the member's average final compensation, which amount shall be paid yearly
in monthly installments, to the member's spouse, if he or she leaves a spouse, to continue until the death or
remarriage of such spouse; or if there be no spouse, or if the spouse dies or remarries before the youngest
child of such deceased member shall have attained the age of 18, then to his or her children under such age,
if he or she leaves children, divided in such manner as the board in its discretion shall determine, to continue
as a joint and survivorship pension for the benefit of the children under such age until every child dies or
attains such age; or if there be no spouse or children under the age of 18 years living at the death of such
member, then to his or her dependent father or dependent mother, as the board in its discretion shall direct,
to continue for life; provided that if there be no such beneficiary, the amount which otherwise would have
been paid as an ordinary death benefit shall be paid to the member's legal representative. Provided,
however, in the event a member who retires effective on or after December 31, 1999, has at least ten years of
creditable service dies prior to retirement, the member's beneficiary or beneficiaries shall be entitled to the
benefits otherwise payable to the member at early or normal retirement age for a period of ten years.
Anything herein to the contrary notwithstanding, this provision shall not be implemented as to police officer
members unless and until there are "additional premium tax revenues" as defined in F.S. § 185.35(1)(b), to
the extent necessary to fund such benefit.
(2) The board shall decide whether the death of a member in service was the result of an accident in the
performance of duty and not caused by willful negligence on the part of the member in the following
circumstances:
a. Upon receipt of proper proofs of the death of a member in service indicating that such death was the
natural and proximate result of an accident occurring at some definite time and place while the member
was in the actual performance of duty, or
b. Upon receipt of proper proofs of death of a member in service indicating that such death resulted from a
condition or impairment of health caused by tuberculosis, hypertension or heart disease, which condition
or impairment of health shall be presumed by the board to have been accidentally incurred in the line of
duty unless the contrary be shown by competent evidence; provided, that the deceased member shall
have successfully passed a physical examination upon entering into service as a firefighter or police
officer, which examination failed to reveal any evidence of such condition.
(3) Notwithstanding any other provision of this chapter to the contrary, the surviving spouse of any member
killed in the line of duty shall not lose survivor retirement benefits if the spouse remarries. The surviving
spouse of such deceased member whose benefit terminated because of remarriage shall have the benefit
reinstated as of July 1, 1994, at an amount that would have been payable had such benefit not been
terminated.
(4) In the case of a DROP participant, there shall be no accidental death benefit.
(5) Notwithstanding the foregoing, any pre -retirement death benefit payable under this section shall be
"incidental" in compliance with Treasury Regulations Section 1.401 -1 (b)(1).
Q) Return of contributions. Should a member cease to be a city employee, the member shall be paid on demand the
sum of his or her accumulated contributions, with the following exceptions:
(1) Any member who has been granted a retirement benefit shall not be entitled to a return of any accumulated
contributions unless the member is eligible for the benefits of option 6.a as set forth in subsection (m) or
unless the member is entitled to a return of excess contributions as a result of membership in the city
employees' retirement system as set forth in subsection 40-205(2).
(2) In the event of the death of any member, there shall be no distribution of the member's accumulated
contributions unless the member died in service. In such event, accumulated contributions shall be payable
to such persons, if any, as the member shall have nominated by written designation duly executed and filed
with the board, otherwise to the member's legal representative. The return of accumulated contributions
pursuant to the provisions of this paragraph shall not be construed as foreclosing the right of any person to
an ordinary death benefit or an accidental death benefit as hereinabove set forth.
(3) a. This article applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the
plan to the contrary that would otherwise limit a distributee's election under this article, a distributee may
elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a
direct rollover.
b. Definitions.
1. Direct rollover shall mean a payment by the plan to the eligible retirement plan specified by the
distributee.
2. Distributee shall mean an employee or former employee. In addition, the employee's or former
employee's surviving spouse is a distributee with regard to the interest of the spouse.
3. Eligible retirement plan shall mean an individual retirement account described in section 408(a) of the
Internal Revenue Code, an individual retirement annuity described in section 408(b) of the Code, an
annuity plan described in section 403(a) of the Internal Revenue Code, or a qualified trust described
in section 401(a) of the Internal Revenue Code, that accepts the distributee's eligible rollover
distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an
eligible retirement plan is an individual retirement account or individual retirement annuity.
4. Eligible rollover distribution shall mean any distribution of all or any portion of the balance to the credit
except that an eligible rollover distribution does not include: any distribution that is one of a series of su
periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distribL
lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a sF
ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of
Revenue Code; and the portion of any distribution that is not included in gross income.
(k) Limitation of disability benefits,- reexamination of beneficiaries retired on account of disability.
(1) Any member who is unable to perform within the member's classification maybe assigned to any other job
classification; provided, that the member consents to such assignment and further provided, that the
member's salary in the newjob class shall be no less than 100 percent of the job class from which the
member was transferred.
(2) If a former member who has received an accidental disability retirement is performing the duties of a police
officer or firefighter, or is performing services which are substantially equivalent to duties that can be
assigned within the employment classification from which the member was retired, the board shall have the
authority to limit the retirement benefits of such member as hereinafter provided: If a former member who
has received an accidental disability retirement is engaged in such gainful occupation, the former member's
salary from said occupation when added to the sum which he or she is receiving on account of accidental
disability retirement shall not exceed 100 percent of the current salary for the classification from which the
member was retired. If the retirement benefit plus the salary exceeds 100 percent of the current
classification salary, the retirement benefit shall be reduced by the amount in excess of 100 percent. The
board may periodically require of former members receiving a disability pension, on a form approved by the
board for such purpose, a statement of salary and type of employment.
(3) Any former member who is receiving a disability retirement allowance shall be subject, prior to normal
retirement age, to examination by a physician or physicians upon request by the board. Such examination
may be conducted at the member's place of residence or at a place mutually agreed upon by the member
and the board. Following such examination, the physician or physicians shall report to the board as to the
continuance of the former member's total and permanent incapacity for duty.
a. In the event the board finds that a disability beneficiary is no longer incapacitated for service within his or
her former classification in accordance with requirements of the civil service rules and regulations, the
board may require that the beneficiary be returned to the former classification with all rights and benefits
of such classification or, with the beneficiary's consent, to other classifications within the limits of his or
her mental or physical capacities at a rate of compensation not less than 100 percent of the pay which he
or she would be entitled to receive at the time of return to service for the classification occupied by the
beneficiary prior to his or her incapacity.
b. Should any disability beneficiary refuse to submit to a medical examination upon request by the board,
his or her retirement allowance may be discontinued until withdrawal of the refusal, and should the
refusal continue for one year, all right in and to a retirement benefit may be revoked by the board. If any
beneficiary in receipt of a disability retirement allowance is found by the board, prior to normal
retirement age, to be no longer incapacitated but is not restored to service as a member in the
classification from which he or she was retired because of his or her own refusal to accept employment
offered to him or her, the beneficiary's disability retirement allowance shall be terminated.
(1) Restoration of beneficiaries to membership.
(1) Should a disability beneficiary be restored to or be in service at a compensation equal to or greater than his
or her average final compensation at retirement, or should any other beneficiary be restored to service, the
following shall apply:
a. The retirement allowance of the beneficiary shall cease, he or she shall again become a member of the
retirement system and regular contributions shall resume at the rate required by the retirement system;
and
b. The beneficiary shall be credited with all service as a member standing to his or her credit at the time of
retirement, providing he or she returns, in such manner as shall be prescribed by the board, the amount
of any accumulated contributions of money received upon retirement.
(2) If a beneficiary is restored to membership on or after the attainment of age 50, he or she shall, on
subsequent retirement, be credited with all service as a member subsequent to his or her last restoration to
membership and shall receive a retirement allowance therefor as if he or she were a new entrant, and, in
addition, the former beneficiary shall receive the retirement allowance which he or she was receiving
immediately prior to his or her last restoration, but the total pension shall not exceed the proportion of
average final compensation he or she would have received as a retirement allowance had he or she remained
during the period of prior retirement.
(3) Participation in the DROP shall not be considered restoration to service under subsection (1).
(m) Optional allowances.
(1) Any member may elect to receive in lieu of the retirement allowance otherwise payable to him or her, the
actuarial equivalent at that time of his or her retirement allowance in a reduced retirement allowance
payable as follows; provided, that no election of an optional allowance shall be effective in case a beneficiary
dies within ten days after the election of an option as provided in this section, and further provided that such
a beneficiary shall be considered as a member in service at the time of death, until the first payment on
account of any benefit becomes normally due:
Option 1: If the member dies before receiving in payment of the member's retirement allowance, the value of
his or her accumulated contributions at the time of retirement, the balance shall be paid to such person, if
any, as the member shall have nominated by written designation duly executed and filed with the board,
otherwise to the member's legal representative; or
Option 2. Upon the member's death, his or her reduced retirement allowance shall be continued through the
life of, and paid to, such person as the member shall have nominated by written designation duly executed
and filed with the board at the time of retirement; or
Option 3. Upon the member's death, one-half of his or her reduced retirement allowance shall be continued
throughout the life of, and paid to such person as the member shall have nominated by written designation
duly executed and filed with the board at the time of retirement; or
Option 4. Upon the member's death, some other benefit shall be payable; provided, that the total value of
the allowance during the member's life and the succeeding benefit shall be computed to be of equivalent
actuarial value to the allowance which he or she would receive without optional modification; and provided,
that the benefit shall be approved by the board; or
Option 5. If, as a result of an accidental injury incurred in the line of duty, the member shall have been so
seriously injured that he or she is unable to execute and file a designation of an optional allowance, the
board may, with the consent of the principal beneficiary, designate an option, and if such condition shall have
delayed the application for retirement and the selection of an option, the board may waive the requirement
as to the member's life for ten days after retirement date, and may declare such optional allowance
irrevocably effective immediately upon the member's retirement; or
Option 6. Any member upon service, early service, rule of 64 or rule of 68 retirement may elect to receive
benefits in one of the following three forms, in lieu of the retirement allowance otherwise payable to the
member:
a. Such member may elect to withdraw the sum of his or her accumulated contributions credited as of
the member's date of retirement, excluding all amounts picked up from the member's earnable
compensation and credited to the COLA fund, and be paid a monthly service retirement allowance of
one-half the amount to which he or she would otherwise be entitled;
b. Such member may elect to receive his or her normal monthly service retirement allowance plus an
additional five percent of such service retirement allowance; or
c. Such member may direct the payment of a benefit of 40 percent of the member's monthly retirement
allowance to be paid at the member's death to his or her spouse nominated and designated by him or
her at the time of retirement, such benefit to be payable during the lifetime of such spouse; or
d. For those members who retire effective on or after December 31, 1999, such member(s) may elect to
receive his or her normal monthly service retirement allowance payable for life; except that in the event
the member dies before he or she has received such allowance for a period of ten years, the member's
beneficiary or beneficiaries shall be paid the same allowance for the remainder of the ten-year period.
(2) In the event a member elects a retirement allowance under option 2, 3, or 4 and has nominated and
designated his or her spouse at the time of retirement as the person to receive payment of the benefit upon
the member's death, the total minimum value of the allowance during the member's life and the succeeding
benefit shall be computed to be of equivalent actuarial value to the allowance which he or she would have
received had the member chosen to have his or her retirement allowance paid under the provisions of option
6c.
(3) In no event shall any language contained herein be construed as authorizing or allowing any member the
right or privilege to exercise more than one of options 1 through 6 enumerated at this subsection.
(n) Changes in beneficiary after retirement. Any member of the retirement system who retires from service and
thereafter desires to change a designated beneficiary may do so to the extent the to -be -substituted beneficiary is
younger (older) than the to -be -deleted beneficiary, an actuarial adjustment shall be applied to reflect the
expected longer (shorter) life expectancy of the to -be -substituted beneficiary.
(o) Pension offset by other compensation benefit. Any periodic or lump -sum amounts which maybe paid or payable
under the provisions of any state worker's compensation or similar law to a member or to the dependents of a
member on account of any disability or death, shall be offset against and payable in lieu of any benefits payable
from funds provided by the city under the provisions of the retirement system on account of the same disability
or death.
(p) Deferred retirement option program. Effective October 1, 1995, there is hereby created the City Deferred
Retirement Option Program (DROP) to be administered by the board of trustees. Only firefighters who have
retired after reaching age 50 within ten years of creditable service or who have retired after reaching a
combination of age plus years of creditable service equal to either 64 or 68 as applicable, and who elect to defer
receipt of their retirement benefit into a DROP account shall be eligible to participate in the DROP. Effective upon
the ratification of the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010
collective bargaining agreement with the IAFF, the maximum participation in the Forward DROP for firefighters
shall be 54 full months. Effective upon the ratification of the Memorandum of Understanding of May 8, 2008
amending Article 39 of the 2007-2010 collective bargaining agreement with the FOP, the maximum participation
in the Forward DROP for police officers who elect Forward DROP or are currently in Forward DROP shall be 84 full
months. No payment shall be made to or for the benefit of a DROP participant beyond these periods.
(1) Election to participate in the DROP shall be made by using forms and procedures prescribed by the board.
(2) A firefighter's creditable service, accrued benefits and compensation calculation shall be frozen upon
retirement. The amount of the monthly benefit shall be determined based on the creditable service, average
final compensation, and retirement option selected in accordance with subsection (m) herein. Average final
compensation shall be based on the single highest year preceding participation in the DROP.
(3) Upon commencement of participation in the DROP, the participant's contribution and the city's contribution
to the retirement trust for that participant shall cease as the participant will not earn further creditable
service for pension purposes.
(4) For each person electing participation in the DROP, and individual DROP account shall be created. Payment
shall be made by the retirement trust into the employee's DROP account in an amount equal to the regular
monthly retirement benefit which the participant would have received had the participant separated from
service and commenced receipt of pension benefits.
(5) The board of trustees shall establish, by administrative rule, a series of investment vehicles which may be
chosen by DROP participants. Any losses, charges, or expenses incurred by the participant in the participant's
DROP account by virtue of the option selected by the participant or otherwise, shall not be made up by the
City of Miami or the pension trust, but all of same shall be borne by the participant.
(6) Upon termination of employment, a member may receive distribution from the DROP account in the
following manner:
a. Lump sum distribution (which may be used at the DROP participant's discretion to purchase an annuity).
b. Periodic payments.
c. Roll over of the balance to another qualified retirement plan, such as an IRA.
A member may defer distribution until the latest date authorized by section 401(a)(9) of the Internal Revenue
Code.
(7) DROP participation shall not affect any other death or disability benefit provided to a firefighter under federal
law, state law, city ordinance, or any rights or benefits under any applicable collective bargaining agreement.
(8) If a DROP participant dies before the DROP account balances are paid out in full, the person(s) duly so
designated by such DROP participant shall receive such DROP account balances in accordance with the DROP
participant election in effect at the time of death.
(q) Modified deferred retirement option program. Effective upon approval by the city commission of the F.O.P. and
I.A.F.F. labor agreements for October 1, 1998, through September 30, 2001, the DROP of the retirement system
shall consist of a Forward DROP and a BACDROP. Any member who has reached age 50 with ten years of
creditable service, or who has attained a combination of age plus years of creditable service equal to either 64 or
68 as applicable, shall be eligible to participate in the DROP.
(1) Election to participate. Upon election of participation in the DROP, by using forms and procedures as
prescribed by the board of trustees, a member's creditable service, accrued benefits, and compensation
calculation shall be frozen and shall be based on the single highest year preceding participation in the DROP,
as the basis of calculating the DROP payment. Upon commencement of participation in the DROP, the
participant's contribution and the city contribution to the retirement system for that participant shall cease
as the participant will be earning no further service credit. The participant shall not acquire additional
pension credit for the purposes of the pension plan but may continue city employment for up to a maximum
as established in this article. Effective upon the ratification of the Memorandum of Understanding of July 11,
2008 amending Article 43 of the 2007-2010 collective bargaining agreement with the IAFF, the maximum
participation in the Forward DROP for firefighters shall be 54 full months. Effective upon the ratification of
the Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective
bargaining agreement with the FOP, the maximum participation in the Forward DROP for police officers who
elect Forward DROP or are currently in Forward DROP shall be 84 full months.
(2) Maximum participation. Effective upon the ratification of the Memorandum of Understanding of July 11, 2008
amending Article 43 of the 2007-2010 collective bargaining agreement with the IAFF, the maximum
participation in the Forward DROP for firefighters shall be 54 full months. Effective upon the ratification of
the Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective
bargaining agreement with the FOP, the maximum participation in the Forward DROP for police officers who
elect Forward DROP or are currently in Forward DROP shall be 84 full months. Once the maximum
participation has been achieved, the participant must terminate employment.
(3) Creation of individual account For each person electing participation in the DROP, an individual account shall
be created.
(4) Earnings on DROP account. The board of trustees of the retirement system shall establish, by administrative
rule, a series of investment vehicles which may be chosen by participants in the DROP. Any losses incurred on
account of the option selected by the participant shall not be made up by the city or the FIPO trust fund, but
any such loss shall be borne by the participant only. Upon participation in the DROP, the participant shall
make a selection of the earnings program on forms provided by the board. All interest shall be credited to
the participant's DROP account.
(5) Distribution of DROP benefits. Upon conclusion of a period of participation in the DROP not to exceed the
maximum set forth in subsection (2), the participant shall terminate employment. Upon termination of
employment, a participant may receive payment from the DROP account in the following manner:
a. Lump sum distribution;
b. Periodic payments;
c. Rollover of the balance to another qualified retirement plan.
A participant may defer payment until the latest date authorized by Section 401(a)(9) of the Internal Revenue
Code.
(6) Disability. A DROP participant shall not be entitled to receive an ordinary or service incurred disability
retirement.
(7) Death. In the case of the death of a DROP participant, there shall be no accidental death benefit for pension pur
(8) Participation does not affect other disability benefit. DROP participation shall not affect any other death or
disability benefit provided to a member under federal law, state law, city ordinance, or any rights or benefits
under any applicable collective bargaining agreement.
(9) Death ofparticipant before account balances paid out in full. If a DROP participant dies before the DROP
account balances are paid out in full, the person(s) duly so designated by such DROP participant shall receive
such DROP account balances in accordance with the DROP participant election in effect at the time of death.
(10) COLA participation. Eligibility for payments for cost of living adjustment (COLA) shall not commence until a
member has actually separated from employment with the city. COLA service years shall be based upon
creditable years of service in calculating the employee's pension. For the purpose of complying with Section
H(3)(m) of the Amended Final Judgment in Gates, the employee's "date of retirement" shall be the date of
actual termination of employment as an employee with the city and not the date of election to DROP.
(11) Agreement binding. Any employee who enters into a DROP agreement shall be bound by the terms and
conditions of that said agreement, except that firefighters who are members of the 48-month DROP as of the
date of the ratification of the Memorandum of Understanding of July 11, 2008 amending Article 43 of the
2007-2010 IAFF collective bargaining agreement may extend their existing DROP agreements to a maximum
of 54 months. Any member who enters into a DROP agreement shall be bound by the terms and conditions
of said agreement, except that who are members of the 48-month DROP as of the date of the ratification of
the Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective
bargaining agreement with the FOP, may extend their existing DROP agreements to a maximum of 84
months. Any member who elects to be a DROP participant in the future shall be bound by the specific terms
of the participant's DROP agreement entered into at that time.
(12) Forward DROP. The date of entry into the Forward DROP shall be the beginning of a pay period. Payment
shall be made by the retirement system into the participant's DROP account in an amount equal to the
regular monthly retirement benefit which the participant would have received had the participant separated
from service and commenced the receipt of benefits from the system. The amount of the monthly benefit
shall be determined based on the creditable service, average final compensation, and retirement option
selected in accordance with subsection 40-203(m). Upon conclusion of a period of participation in the DROP
not to exceed the maximum set forth in subsection (2), the participant shall terminate employment with the
city.
Election of a forward DROP program precludes participation in a BACKDROP program.
(13) BACDROP. An I.A.F.F. bargaining unit member may elect to BACDROP to a date (retirement date) no further
back than the date of the member's retirement eligibility date. The BACDROP period must be in 12-month
increments, beginning at the start of a pay period, not to exceed 36 months. Effective upon the ratification of
the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective
bargaining agreement with the IAFF the maximum participation in the Forward DROP for firefighters shall be
54 full months. Effective upon the ratification of the Memorandum of Understanding of May 8, 2008
amending Article 39 of the 2007-2010 collective bargaining agreement with the FOP, the maximum
participation in the Forward DROP for police officers shall be 84 full months. Upon ratification of the 2004-
2005 F.O.P. labor agreement, an F.O.P. bargaining unit member may elect to BACDROP to a date (retirement
date) no further back than the date of the member's retirement eligibility date, provided that the BACDROP
period must be in 12-month increments, beginning at the start of a pay period, not to exceed a total of 12
months. Participation in the BACDROP does not preclude participation in the forward DROP program.
(14) BACKDROP option. A backdrop benefit option was implemented on January 1, 2013 to replace the BACDROP.
a. An eligible employee who elects the backdrop option shall receive a monthly benefit payable on the
employee's actual retirement date (date of retirement and separation from city employment) based on
the benefit the employee would have received if he/she had left city employment and retired on an
earlier date after attaining normal retirement eligibility ("backdrop date"). In addition, an eligible
employee who elects the backdrop option will receive a lump sum payment equal to the accumulation of
monthly retirement benefit payments he/she would have received during the period following the
backdrop date through the actual retirement date ("backdrop period"), plus interest at the rate of three
percent per year, compounded annually. An eligible employee may elect a minimum backdrop period of
one year and maximum backdrop period of up to seven years. An eligible employee who elects the
backdrop option must select the normal form of benefit or an optional form of benefit in accordance with
subsection 40-203(m) at the time of electing the backdrop option. The employee's monthly benefit as well
as the lump sum payment under the backdrop option is based on the form of benefit selected.
b. Employees are eligible to elect the backdrop option after completing one year of creditable service
following the normal retirement date. The maximum backdrop period is seven years. Eligible employees
who wish to elect the backdrop option must provide written notification to the department director and
the department of human resources at least eight months prior to the employee's retirement date;
provided a lesser notice period may be approved by the city manager due to special circumstances.
Employees will be able to revoke their backdrop election one time, but within one month of their election.
However, if an employee is granted a lesser notice period by the city manager due to special
circumstances, the employee will not be eligible for the one-time backdrop election revocation.
Employees are not required to elect the backdrop option.
c. All or a portion of the lump sum payment under the backdrop option may be rolled over to an eligible
retirement plan or IRA in accordance with federal law. The rollover of DROP funds into the Miami
Firefighters' Relief & Pension Fund (175) shall be allowed if rollovers of this type are approved by the
Miami Firefighters' Relief & Pension Fund (175) trustee board.
d. If the backdrop option is ever terminated, for any reason, the rights of all persons then in the DROP shall
not be diminished or impaired. Additionally, if the backdrop is ever terminated, all persons who are then
eligible for the backdrop option will still be eligible for a seven year backdrop. The board of trustees of
shall develop operational rules for the implementation of this provision.
(15) Compliance with internal Revenue Code Sections 414(k) and 414(i). To the extent required under the Internal
Revenue Code, the DROP under the retirement system shall be treated as a defined contribution plan to the
extent that the member's benefits under the retirement system are based on the member's DROP account.
The amount of "annual additions" (as such term is defined in Section 415(c)(2) of the Internal Revenue Code
and Treasury Regulations 1.415(c)-1 (b)) which may be allocated under the DROP to a member's DROP
account for a "limitation year" may not exceed the maximum permissible amount under Section 415(c)(1) of
the Internal Revenue Code and Treasury Regulations 1.415(c)-l(a)(1) (the "Annual Maximum Amount"). For
purposes hereof, the term "limitation year" means the 12-month period beginning on October 1. In addition,
for purposes of determining a member's annual maximum amount, the member's compensation shall be
determined in compliance with Treasury Regulations 1.415(c)-2.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10910, § 1, 9-5-91; Ord. No. 11074, § 2, 7-22-93; Ord. No. 11110, § 3, 1-13-94; Ord. No.
11190, § 2, 10-27-94; Ord. No. 11235, § 1, 3-27-95; Code 1980, § 40-212; Ord. No. 11752, § 2, 1-26-99; Ord. No. 11944, § 2, 7-
27-00; Ord. No. 12203, § 2, 3-27-02; Ord. No. 12718, § 2, 7-28-05; Ord. No. 12941, § 2, 9-11-07; Ord. No. 12993, § 2, 5-8-08;
Ord. No. 13019, § 2, 7-24-08; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13202, § 2, 9-27-10; Ord. No. 13344, § 1, 9-27-12; Ord.
No. 13551, § 2, 9-24-15; Ord. No. 13676, § 2, 4-27-17; Ord. No. 13874, § 2, 11-21-19; Ord. No. 14066, § 2, 5-12-22)
Case Law reference- Pension provision authorizing deduction of workers' compensation benefits from pension benefits
held constitutional. Hoffkins v. City of Miami, 339 So. 2d 1145.
Sec. 40-204. - Cost -of -living allowance.
(a) A COLA account shall be established for beneficiaries of the retirement system to be financed as follows:
(1) The two -percent COLA contribution made by a member prior to January 9, 1994 shall be a picked up
contribution and shall be credited to the COLA account.
(2) Any contributions to the retirement system which are credited to the COLA account on behalf of any member
in accordance with section 40-196(a), and which are subsequently returned pursuant to any provision of this
division which provides for the return of accumulated contributions, shall be paid from the COLA account.
(3) All other matters regarding the COLA account shall be determined by the COLA committee. The COLA
committee shall be composed of the following: a) a representative of IAFF, Local 587; b) a representative of
FOP, Lodge No. 20; c) the city manager's designee; d) the city's labor relations officer; and e) a representative
of the board.
(b) Beginning with the 1994 COLA benefit, distributions shall be in addition to COLA benefits granted through 1993.
The COLA benefit granted through 1993 shall be frozen.
(c) COLA account established as of January 1, 1994:
(1) The COLA shall be funded by a percentage of annual excess investment return from other than COLA account
assets. The excess return will be determined as the difference between the actual return on actuarial asset
value, net of investment expenses, and the lesser of: (1) a 7.75 percent time -weighted rate of return on the
actuarial value of assets; or (2) the current actuarial interest assumption, applied on a time weighted basis to
the actuarial value of assets. The excess earnings going into the COLA account shall be used to fund a
minimum annual payment of $2,500,000.00, increasing by four percent compounded per year. To the extent
necessary, the city will fund the portion of the minimum annual payment not funded by annual excess
earnings no later than January 1 of each year.
(2) The first year's actual return shall be based on the time weighted rate of return on the actuarial value of the
assets from October 1, 1991, through September 30, 1992. Thereafter, the actual rate of return will be based
on the prior fiscal year to be used in the succeeding fiscal year.
(3) The percentages of such excess return to be transferred to the COLA account shall be determined as follows:
Excess Return Percentage to be Transferred
First 2.5%
Next 2.5%
Next 2.5%
Remainder
75
50
25
0
(4) The transfers shall be made by the board as soon as practicable after the beginning of each fiscal year, but
not later than January 1, and shall be transferred only if the retirement system remained in a net positive
experience position, determined on a cumulative basis from October 1, 1982. The determination of the net
experience position will be based on the difference between the actual unfunded actuarial liability and the
expected unfunded actuarial liability, adjusted for any changes in benefits or assumptions, calculated under
the individual entry age normal cost method.
(5) All retirement system pension assets, including the COLA account, are integrated for investment purposes,
with separate accounting maintained for administrative purposes. Earnings of the COLA account will not be
considered for determining excess investment earnings.
(6) All assets in the COLA account at September 30, 1993, will be used for COLA benefits, contribution refunds
and allocated expenses.
(7) The actuarial interest and mortality assumptions used for the retirement system will be used for COLA.
(8) COLA benefits will be determined on a defined benefit basis, based on the minimum city scheduled
contribution.
(9) The active member contributions into the COLA account will have an effective termination date of January 1,
1994.
ii
■I
■
J
(10) In addition to current inactive and active employees, funding for the COLA benefits of future employees hired
during the remaining term of the amended final judgment shall be defined and allocated through the
remaining term of the amended final judgment.
(11) The monthly COLA benefit distribution beginning January 1, 1994, is summarized in table "A" of amended
final judgment, Gates v. City of Miami, Circuit Court Case No. 77-9491 CA 04. Such table is subject to
modification by the COLA committee annually based solely upon available assets and joint recommendations
by the retirement system actuary and the city's actuary, using generally accepted actuarial principles and
prudent reserves, and subject to the arbitration provisions of section 40-196(b)(5).
(12) The available assets shall be identified and distributed in a defined tabular format. The COLA benefits table
shall be based upon full years of creditable service at time of retirement and full years of retirement, as of
April 1, 1994, and each April 1 thereafter. There shall be increasing dollar amounts for each additional full
year of creditable service and full year of retirement.
(13) Creditable service with the exception of accidental death, accident disability, and service -incurred disability is
defined as follows:
Date of retirement:
minus; date of membership
plus; service bought back and military credit purchased
plus; time before 1940
minus; time without pay
(14) Years of retirement for benefits distributed beginning January 1 of a given year shall be projected forward to
April 1 of that same year.
(15) The present value of assets available for COLA benefits as defined within Stanley, Holcombe and Associates,
Inc.'s September 21, 1993, actuarial impact statement is $32,854,426.00.
(16) The present value of benefits defined within the approved allocation table is $29,581,845.00.
(17) Eligibility for receipt of the COLA benefit shall be based upon a retiree reaching at least four full years of
retirement after 46 years of age. Years of retirement shall be determined each year. For this paragraph only,
in the case of DROP participants, date of retirement shall mean date of separation from city employment.
(18) For accidental death, accidental disability, and service -incurred disability, years of service shall be defined as
25 years or actual creditable service if greater. Receipt of the COLA benefit shall be based on the retiree
reaching at least four full years of retirement and 50 years of age. In the case of accidental death, the
beneficiary shall be entitled to the COLA benefit on the April 1 following the 50th anniversary of the
employee's birth and the fourth anniversary of the employee's death.
(19) COLA benefits for vested rights retirees shall be based upon such retiree reaching at least four full years of
retirement after 50 years of age.
(20) The COLA benefit shall reflect the defined the retirement system benefit options. Existing beneficiaries'
benefits shall be based on the retirement system option, e.g., if the original option was joint and 40 percent,
then the beneficiary would receive 40 percent of the benefit amount in the benefit table. In the case of a
retiree's life annuity option, benefits shall be 105 percent of the table amount.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 11110, § 4, 1-13-94; Code 1980, § 40-213; Ord. No. 11300, § 1, 9-14-95)
Sec. 40-205. - Adjustments in benefits.
Members who belonged to the Miami city employees' retirement system, presently known as the City of Miami
firefighters' and police officers' retirement trust, shall continue to be subject to the following adjustments in benefits:
(1) Election of increased benefit of class A membership.
a. Any member who belonged to the Miami city employees' retirement system and who elected an
increased rate of benefit under that system or who was not a class A member under that system but who
elected to become a class A member, shall contribute to the City of Miami firefighters' and police officers'
retirement trust, by a single payment or by a series of payments, an amount computed to be sufficient
with the member's prospective regular contributions to make accumulated contributions at his or her
normal retirement age equal to the amount such accumulated contributions would have been had the
member been a class A member or contributed at the increased rate during the entire period of his or
her membership in the Miami city employees' retirement system.
1. Any member may waive payment of the foregoing amount, in which case, upon service, early service,
rule of 64, rule of 68 or ordinary disability retirement, the member's retirement allowance shall be
reduced by the actuarial equivalent of the amount by which accumulated contributions fall short of
the full amount which would have been the member's accumulated contributions had he or she been
a class A member or contributed at the increased rate during his or her entire period of membership
in the Miami city employees' retirement system.
2. Any member who elects to pay the foregoing amount over an extended period and who is granted
disability retirement under the City of Miami firefighters' and police officers' retirement trust, shall
have his or her disability retirement allowance reduced by the actuarial equivalent of the then unpaid
amounts.
b. If any member of the retirement system elected class A membership or an increased rate of benefit
under the Miami city employees' retirement system, and his or her contributions pursuant to such
election cause accumulated contributions at the member's normal retirement age to exceed the amount
such accumulated contributions would have been had the member maintained a class A membership or
been contributing at an increased rate for the entire period of membership in the Miami city employees'
retirement system, such member shall be entitled to the return of the excess contributions upon
retirement or shall have his or her retirement allowance increased by the actuarial equivalent of the
amount by which his or her contributions exceed the full amount which would have been the member's
accumulated contributions had he or she been a class A member or had the increased rate been in effect
during his or her entire membership in the Miami city employees' retirement system.
(2) Executive benefit. Any members who, on or before May 23, 1985, had a vested right to receive an additional
retirement allowance equal to one percent of average final compensation under the provisions of the Miami
city employees' retirement system, presently known as the City of Miami firefighters' and police officers'
retirement trust, which benefit was set forth in former section 40-235(A)(3)(a) of this Code (repealed June 13,
1985), shall be entitled to such additional benefit upon service retirement, early service retirement, "rule of
64" or rule of 68 retirement pursuant to this division. A member shall be deemed to have a vested right if said
member, on or before May 23, 1985, was serving in any of the capacities enumerated in former section 40-
235(A)(3)(a) and thereafter continued to serve in such capacity uninterruptedly for a total combined period of
not less than three years. Those members having such vested right may only continue to earn credit for such
allowance up to a combined period of ten years' service.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10458, § 1, 7-14-88; Code 1980, § 40-214; Ord. No. 11752, § 2, 1-26-99; Ord. No.
13091, § 1, 9-24-09; Ord. No. 13676, § 2, 4-27-17)
Editor's note— Printed herein is former section 40-235(A)(3)(a) of the Code prior to the adoption of Ordinance Number
10002 which section is referred to and apparently adopted by reference in this section.
"(A)(3)(a) Upon such retirement, if he/she has three (3) or more years' service since last becoming a member, he/she shall
also receive a pension equal to one (1) percent of average final compensation for each year of service or fraction thereof
that such member served as the city manager, assistant city manager, city clerk, assistant city clerk, executive secretary of
the civil service board, assistant executive secretary of the civil service board, executive secretary of the planning and
zoning board, assistant executive secretary of the planning board or its predecessor the planning and zoning board, city
physician, city attorney, assistant director of the department of law or as director or assistant director of a department
established by the charter of the city or by ordinance as authorized by such charter; provided that he/she has served in any
of such capacities for a total combined period of not less than three (3) years; subject, however, for purposes of this
paragraph, to a maximum of ten (10) years' service. The benefits provided herein shall not be diminished after retirement."
Sec. 40-206. - Assignments prohibited.
The present or future right of a person to moneys in the fund or to a retirement allowance, an optional allowance, a
death benefit, the return of contributions, or any other right accrued or accruing to any person under the provisions of this
division, shall be unassignable and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy
or insolvency law or any other process of law whatsoever.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-215; Ord. No. 11300, § 1, 9-14-95)
Case Law reference— Pension benefits held subject to garnishment for alimony, child support and medical payments to a
pensioner's divorced wife, notwithstanding ordinance provisions exempting pension funds from garnishment. City of Miami
v. Spurrier, 320 So. 2d 397.
Sec. 40-207. - Protection against fraud.
Whoever, with intent to deceive, shall make any statements or reports required under this division which are untrue or
shall falsify or permit to be falsified any record of this retirement system, shall be punished as provided in section 1-13 of
this Code.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-216)
Sec. 40-208. - Errors.
Should any change or error in retirement system records be discovered or result in any member or beneficiary receiving
from the retirement system more or less than he or she would have been entitled to receive had the records been correct,
the board shall have the power to correct such error and, as far as possible, adjust the payments in such a manner that the
actuarial equivalent of the benefit to which such member or beneficiary was correctly entitled shall be paid.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-217)
Sec. 40-209. - Bonding; fiduciary insurance.
(a) Prior to exercising custody or control of any funds or property of the retirement system, every fiduciary of the
retirement system and every person who handles funds or other property of the retirement system shall be
bonded. Such bond shall provide protection to the retirement system against loss by reason of acts of fraud or
dishonesty on the part of the bonded individual, directly or through connivance with others.
(b) The board shall purchase insurance for the retirement system and for the members of the board of trustees to
cover liability or losses occurring by reason of an act or omission of a fiduciary, providing, however, that such
insurance permits recourse by the insurer against the fiduciary in case of a breach of a fiduciary obligation by
such fiduciary.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-218)
Sec. 40-210. - General conditions.
(a) It is intended that the City of Miami firefighters' and police officers' retirement trust be and remain tax qualified
pursuant to the Internal Revenue Code of 1986, as amended. The provisions of this division shall be interpreted
in accordance with such intent.
(b) The City of Miami firefighters' and police officers' retirement trust may sue and be sued as an entity.
(c) The commission shall have continuing power to amend or supplement this division, but no amendment shall be
adopted which will reduce the then accrued benefits of members or beneficiaries covered by accumulated
reserves, which reserves shall constitute a trust fund for the payment of such benefits.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-219; Ord. No. 13551, § 2, 9-24-15)
Sec. 40-211. - Limitation on compensation.
(a) Compensation in excess of limitations set forth in section 401(a)(17) of the Internal Revenue Code shall be
disregarded. The limitation on compensation for an "eligible employee" shall not be less than the amount which
was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual
who was a member before the first plan year beginning on or after January 1, 1996.
(b) It is the intention of the city and of the board that the plan remain at all times a qualified plan, as that term is
defined under the Internal Revenue Code.
(c) No member's annual benefit may exceed the amounts permitted under Section 415 of the Internal Revenue
Code as amended, including cost of living adjustments under Section 415(d).
(d) In no event may a member's retirement benefit be delayed beyond the later of April 1st following the calendar
year in which the member attains age 70Y2, or April 1 st of the year following the calendar year which the member
retires.
Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable from this plan,
shall satisfy the following conditions:
(1) If the retirement income is payable before the member's death:
a. It shall either be distributed or commence to the member not later than April 1 of the calendar year
following the later of the calendar year in which the member attains age 70Y, or the calendar year in
which member retires;
b. The distribution shall commence no later than the calendar year defined above; and (a) shall be paid over
the life of the member or over the lifetimes of the member and spouse, issue or dependent, or (b) shall
be paid over the period extending not beyond the life expectancy of the member and spouse, issue or
dependent.
Where a form of retirement income payment has commenced in accordance with the preceding paragraphs
and the member dies before his/her entire interest in the plan has been distributed, the remaining portion of
such interest in the plan shall be distributed no less rapidly than under the form of distribution in effect at
the time of the member's death.
(2) If the member's death occurs before the distribution of his/her interest in the plan has commenced,
member's entire interest in the plan shall be distributed within five years of member's death, unless it is to be
distributed in accordance with the following rules:
a. The member's remaining interest in the plan is payable to his/her spouse, issue or dependent; and
b. The remaining interest is to be distributed over the life of the spouse, issue or dependent or over a
period not extending beyond the life expectancy of the spouse, issue or dependent; and
c. Such distribution begins within one year of the member's death unless the member's spouse is the sole
designated beneficiary, in which case, the distribution need not begin before the date on which the
member would have attained age 70Y and if the member's spouse dies before the distribution to the
spouse begins, this section shall be applied as if the spouse were the member.
(e) Notwithstanding any provision of this plan to the contrary, effective December 12, 1994, contributions, benefits
and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of
the Internal Revenue Code of 1986, as amended, USERRA or F.S. chs. 175 and 185, as applicable.
(f) Differential wage payments. For years beginning after December 31, 2008 (i) an individual receiving a differential
wage payment, as defined in Section 3401(h)(2) of the Internal Revenue Code, shall be treated as an employee of
the employer making the payment, (ii) the differential wage payment shall be treated as compensation, and (iii)
the plan shall not be treated as failing to meet the requirements of any provision described in Section 414(u)(1)
(C) of the Internal Revenue Code by reason of any contribution or benefit which is based on the differential wage
payment.
(g) No pension provided hereunder shall be assignable or subject part of the corpus or income of the fund be used
for, or diverted to, purposes other than for the exclusive benefit of members and their beneficiaries and until
those liabilities are satisfied, all city contributions will remain in the fund for the benefit of the members or
beneficiaries in the event the plan is terminated or city contributions cease.
(h) Upon the termination of the plan or on the complete discontinuance of contributions under the plan, each
member shall have nonforfeitable, 100 percent vested rights to benefit accrued to date of the termination or
discontinuance to the extent funded at that time.
(i) The city shall solely for the purpose of compliance with Sections 125, 457, and 414(h) of the Internal Revenue
Code, pick up the members' contributions. The member contributions so picked up shall be designated as
employer contributions in determining tax treatment under the Internal Revenue Code. No member shall have
the option of choosing to receive the contributed amounts directly instead of having them paid by the city to the
plan.
(Ord. No. 11190, § 3, 10-27-94; Code 1980, § 40-220; Ord. No. 13551, § 2, 9-24-15; Ord. No. 13676, § 2, 4-27-17)
Editor's note— As set out in Ord. No. 11190, § 7, adopted Oct. 27, 1994, § 40-211 shall become effective on September 30,
1996.
Sec. 40-212. - Direct transfers of eligible rollover distributions.
(a) Genera/. Notwithstanding any provision of the retirement system to the contrary that would otherwise limit a
distributee's election under this section, a distributee may elect, at the time and in the manner prescribed by the
board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified
by the distributee in a direct rollover.
(b) The plan may allow a public safety officer to elect a tax free distribution of up to $3,000.00 annually directly to a
retiree medical plan or long term care insurance on a pre-tax basis, so long as the public safety officer separates
from service either at the plan's normal retirement age or due to his or her disability. Insurance premiums may
be paid for the public safety officer, his/her spouse or his/her dependents, but once he/she is deceased, the
benefit ceases and may not be used by his/her spouse or beneficiaries to pay for their insurance premiums.
Insurance premium payments may only be made directly to the insurance company. "Public Safety officers"
include law enforcement officers, firefighters, chaplains, rescue crew members or ambulance crew members.
(c) Definitions.
Direct rollover means a payment by the plan to the eligible retirement plan specified by the distributee. Effective as of
January 1, 2010, a non -spouse beneficiary may make a direct rollover only to an "inherited" individual retirement account as
described in Section 408(b) of the Internal Revenue Code. If a non -spouse beneficiary receives a distribution from the Plan,
the distribution is not eligible for a 60-day (non -direct) rollover.
Distributee includes an employee or former employee. In addition, the employee's or former employee's surviving
spouse is a distributee with regard to the interest of the spouse. Effective as of January 1, 2010, as an employee's or former
employee's non -spouse beneficiary is a distributee with regard to the interest of the employee or former employee.
Eligible retirement plan means an individual retirement account described in section 408(a) of the Code, an individual
retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403(a) of the Code, an
eligible deferred compensation plan described in section 457(b) of the Code which is maintained by an eligible employer
described in section 457(e)(1)(A) of the Code and which agrees to separately account for amounts transferred into such plan
from this plan, an annuity contract described in section 403(b) of the Code, a qualified trust described in section 401(a) of
the Code, that accepts the distributee's eligible rollover distribution, or any other retirement plan determined to be an
eligible retirement plan under the Code as it may be amended from time to time. This definition shall apply in the case of an
eligible rollover distribution to the surviving spouse.
Eligible rollover distribution means any distribution of all or any portion of the balance to the credit of the distributee,
except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint
lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of
ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Internal
Revenue Code and the portion of any distribution that is not includible in gross income. Any portion of any distribution
which would be includible in gross income will be an eligible rollover distribution if the distribution is made to an individual
retirement account described in section 408(a) of the Internal Revenue Code, to an individual retirement annuity described
in section 408(b) of the Internal Revenue Code or to a qualified defined contribution plan described in sections 401(a) or
403(a) of the Internal Revenue Code that agrees to separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible in gross income and the portion of such distribution
which is not so includible.
(d) Plan transfers into the fund. The retirement system will accept a direct transfer or rollover of an eligible rollover
distribution or a member contribution of an eligible rollover distribution from an eligible retirement plan which is
maintained by the city, solely for the purpose of purchasing creditable service as provided in subsection 40-
202(6) herein.
(Ord. No. 12941, § 2, 9-11-07; Ord. No. 13551, § 2, 9-24-15; Ord. No. 13676, § 2, 4-27-17)
Secs. 40-213-40-240. - Reserved.