HomeMy WebLinkAboutO-12181J-02-116
1/23/02
1218.1.
ORDINANCE NO.
AN EMERGENCY ORDINANCE OF THE MIAMI CITY
COMMISSION AMENDING CHAPTER
40/ARTICLE IV/DIVISION 3 OF THE CODE OF THE
CITY OF MIAMI, FLORIDA, AS AMENDED,
ENTITLED "PERSONNEL/ PENSION AND RETIREMENT
PLAN/CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST", BY
CLARIFYING THE DEFINITION OF AN ELIGIBLE
RETIREMENT PLAN TO INCLUDE AN ELIGIBLE
DEFERRED COMPENSATION PLAN AS DESCRIBED IN
SECTION 457(b) OF THE INTERNAL REVENUE
CODE; MORE PARTICULARLY BY AMENDING SECTION
40-262 TO SAID CODE; CONTAINING A REPEALER
PROVISION AND A SEVERABILITY CLAUSE.
WHEREAS, the Miami City Commission desires to provide
flexibility in investment options to its employees electing to
transfer accumulated leave balances upon retirement;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. Chapter 40, Articles IV, Division 3, of the
Code of the City of Miami, Florida, as amended, is further
amended in the following particulars:!'
ii Words and/or figures stricken through shall be deleted. Underscored
words and/or figures shall be added. The remaining provisions are now
in effect and remain unchanged. Asterisks indicate omitteedd
L
unchanged material. F
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12181.
"Chapter 40
PERSONNEL
ARTICLE IV. PENSION AND RETIREMENT PLAN
DIVISION 3. CITY OF MIAMI GENERAL EMPLOYEES' AND
SANITATION EMPLOYEES' RETIREMENT TRUST
Sec. 40-262. Compliance with the Internal Revenue
Code.
(f) This subsection 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
subsection, 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 -Pplan
specified by the distributee in a direct
rollover.
(1) For the purposes of this -&Section and
Section 40-266 of this Plan, the following
words and phrases shall have the meanings
indicated:
b. "Eligible retirement elan" is 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 Internal Revenue Code, an annuity
Page 2 of 4 121 � 1
plan described in Section 403(a) of the
Internal Revenue Code, or _ qualified
tL-�stdes erib ed in-- S eet i e n 401(a) o f
the internal Reveniae tee; an eligible
defined compensation plan described in
Section 457(b) of the Internal Revenue
Code which is maintained by an eligible
employer described in Section
457(e)(i)(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.
Section 2. All Ordinances or parts of Ordinances
insofar as they are inconsistent or in conflict with the
provisions of this Ordinance are repealed.
Section 3. If any section, part of section, paragraph,
clause, phrase, or word of this Ordinance is declared invalid,
the remaining provisions of this Ordinance shall not be
affected.
Section 4. This Ordinance is declared to be an
emergency measure on the grounds of the necessity to make the
required and necessary payments to employees and officers of the
City of Miami and to generally carry on the functions and duties
of municipal affairs.
Page 3 of 3 . 12181-
Section 5. The requirement of reading this Ordinance on
two separate days is dispensed with by an affirmative vote of
not less than four-fifths of the members of the Commission.
Section 6. This Ordinance shall become effective
immediately upon its adoption and signature of the Mayor./
PASSED AND ADOPTED BY TITLE ONLY this 24th day
of January 2002.
NUEL A. DIAZ, TOR
ATTEST:
WAL R J. FOEMAN
CITY CLERK
APPR( �D)AS./0 FQRf AND CORRECTNESS :b
AWANDRO VILARELLO
ITY ATTORNEY
W12O6:tr:LB:BSS
zi If the Mayor does not sign this Ordinance, it shall become effective at
the end of ten calendar days from the date it was passed and adopted.
If the Mayor vetoes this Ordinance, it shall become effective
immediately upon override of the veto by the City Commission.
Page 4 of 4 1 2181
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and
Members of the City Commission
FROM: Carlos A. Gimenez
City Manager
RECOMINIENDATION
3
DATE: JAN 14 2002 FILE:
SUBJECT: Emergency Ordinance
Amending Section 40-262
of the City of Miami Code
REFERENCES:
ENCLOSURES:
The City Administration recommends the City Commission approve the attached
Emergency Ordinance relating to the City of Miami General Employees' and Sanitation
Employees' Trust (GESE) amending Section 40-262 to clarify the definition of an eligible
retirement plan for the purpose of permitting the rollover of transferred leave balances into
an eligible deferred compensation plan.
BACKGROUND
In September, the City Commission approved the creation of Section 40-262 providing an
employee, upon retirement, the opportunity to transfer accumulated leave, payable upon
separation, to the GESE Trust and to select a distribution option. Subsequently, the City
was advised that with the passage of the Economic Growth and Tax Relief Reconciliation
Act of 2001 the definition of "eligible retirement plan" was expanded to include an eligible
deferred compensation plan as described in Section 457(b) of the Internal Revenue Code.
The amendment to Section 40-262, as proposed by the City Administration, will provide
employees the flexibility to transfer accumulated leave balances to a deferred compensation
plan upon separation in addition to the other options currently available.
It is requested that the amendment to Section 40-262 be approved on an emergency basis.
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