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HomeMy WebLinkAboutO-12203• J-02-255 3/20/02 12 14. 0 ) ORDINANCE NO. AN EMERGENCY ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 40/ ARTICLE IV/ DIVISION 2 AND CHAPTER 42/ARTICLE 1 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "PERSONNEL/PENSION AND RETIREMENt PLAN/CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST" AND POLICE/IN GENERAL, TO PROVIDE THAT THE PROVISIONS OF THE CITY CODE ARE CONSISTENT WITH THE TERMS AND CONDITIONS OF CERTAIN COLLECTIVE BARGAINING AGREEMENTS; MORE PARTICULARLY BY AMENDING SECTIONS 40-202(6), 40-203(8), 40-203(p), AND 40-203(q) AND DELETING SECTION 42-7, IN ITS ENTIRETY, OF SAID CODE; CONTAINING A REPEALER PROVISION AND A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Miami and I.A.F.F., Local 587, collective bargaining agent for members in Local 587, and F.O.P., Lodge 20, collective bargaining agent for members in Lodge 20, have agreed to (1) extend the FORWARD DROP (the Deferred Retirement Option Program) and BACDROP from 36 months to 48 months, and (2) allow members of the City of City of Miami Firefighters' and Police Officers' Retirement Trust to purchase creditable service years from a tax qualified 457 Deferred Compensation Plan; and 122040 • WHEREAS, the provisions G contained in City Code Section 40-203(g)(3), the `Disability Presumption for Police Officers,' are duplicated in City Code Section 42-7(a); and WHEREAS, by adoption of this Ordinance, Section 42-7(b) is being incorporated into Section 40-203 as new subsection (b), and Section 42-7 is being deleted, in its entirety; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated as if fully set forth in this Section. Section 2. CHAPTER 40/ ARTICLE IV/ DIVISION 2 is amended in the following particulars:l/ "Chapter 40 PERSONNEL Article IV. PENSION AND RETIREMENT PLAN DIVISION 2. CITY OF CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST 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: r, 1� 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 omitted and unchanged material. Page 2 of 9 03 (6) Creditable service years purchase from leave balance and tax qualified 457 Deferred Compensation Plans. A retiring member who does not participate in the DROP and retires under service retirement, or rule of 64 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 option may not be utilized for eligibility for either service retirement, or rule of 64 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 purchase shall be the pro -rata actuarially determined present value based upon the employee's average final compensation used to determine the member's retirement benefit. This benefit shall be available using after tax value of the employee'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 employee's leave balances. Employees may purchase three (3) whole creditable service years by a tax qualified transfer of funds from a member's 457 Deferred Compensation Plan at present value as actuarially determined for each individual employee. In no case shall a member purchase more than three (3) 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. Sec. 40-203. Benefits. (g) Accidental or service -incurred disability retirement. Page 3 of 9 12 04 0 3 (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. (p) Deferred retirement option program. Effective October 1, 1995, there is hereby created the City of Miami 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 70, and who elect to defer receipt of their retirement benefit into a DROP account shall be eligible to participate in the DROP. The maximum participation in the DROP is 36 full months. Effective upon approval by the City Commission of the IAFF labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for firefighters shall be forty-eight (48) full months. Effective upon approval by the City Commission of the FOP labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for police officers who elect DROP on October 1, 2003, or thereafter, shall be forty- eight (48) full months. Page 4 of 9 -- 122013 (4) DROP participants may continue city employment for up to a maximum of 36 full months. Effective upon approval by the City Commission of the IAFF labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for firefighters shall be forty-eight (48) full months. Effective upon approval by the City Commission of the FOP labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for police officers who elect DROP on October 1, 2003, or thereafter, shall be forty-eight (48) full months. , and -tNo payment shall be made to or for the benefit of a DROP participant beyond that these periods. (q) Modified deferred retirement option program. (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 of 36 months. Effective upon approval by the City Commission of the IAFF labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for firefighters shall be forty-eight (48) full months. Effective upon approval by the City Commission of the FOP labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for police officers who elect DROP on Page 5 of 9 40 C� October 1, 2003, or thereafter, shall be forty-eight (48) full months. (2) Maximum participation. The maximum period of participation in the DROP is 36 months. Effective upon approval by the City Commission of the IAFF labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for firefighters shall be forty-eight (48) full months. Effective upon approval by the City Commission of the FOP labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for police officers who elect DROP on October 1, 2003, or thereafter, shall be forty-eight (48) full months. Once the maximum participation has been achieved, the participant must terminate employment. (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 thirty six (36) month DROP as of the date of the ratification of the IAFF labor agreement effective October 1, 2001 through September 30, 2004 may extend their existing DROP agreements to a maximum of forty-eight (48) 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. (13) BACDROP. A 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 approval by the City Commission of the IAFF labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for firefighters shall be forty-eight (48) full months. Effective upon approval by the Citv Page 6 of 9 Commission of the FOP labor agreement for October 1, 2001 through September 30, 2004, the maximum participation in the DROP for police officers who elect DROP on October 1, 2003, or thereafter, shall be forty-eight (48) full months. Participation in the BACDROP does not preclude participation in the Forward DROP program. Section 3. Chapter 42/Article 1 of the Code of the City of Miami Florida, as amended, entitled Police/In General is further- amended by deleting Section 42-7, in its entirety, entitled "Presumption in favor of police officers concerning death or disability.2/ "Chapter 42 POLICE Article I. In General ee I�C�r=re n resiilics=ii �et ccriand pei=fRanent ireapaertalc-ren been aeeidentland fer duty, shall s,(:4fer-ed be in the te-gave line didty ,anless the eentrary-be evidenee; pre-�Fded, shall h a-o-esue'e'e hewever, s s f 1 7-1 l�-y shewn that any passed by eempetent =a:-eTmemb=- p by _ e l firefighter -e r f ailed to reveal , .a , t p e3 re e—e €€i any e�eT whi eh ev-4-de'nee -e�Eamratren e Page 7 of 9 Nething herein shall be eenstru ed to extender etherwise of f eet the—prevlens ef F.G . eh. 44G -pertaining tewerk . Sec. 4-2 8. 42-7. Secs. 429. 42-8. - 42-35 Reserved. Section 4. All ordinances or parts of ordinances that are inconsistent or in conflict with the provisions of this Ordinance are repealed. Section 5. 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 6. This Ordinance is declared to be an emergency measure on the grounds of urgent public need for the preservation of peace, health, safety, and property of the City of Miami, and upon the further grounds of the necessity to make the required and necessary payments to its employees and officers, payment of its debts, necessary and required purchases of goods and supplies, and to generally carry on the functions and duties of municipal affairs. Section 6. The requirements 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. Page 8 of 9 203 Section 7. For determination of pension benefits, the provisions of this Ordinance shall be effective on the retroactive dates set forth in the amendments contained herein. Section 8. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.3/ PASSED AND ADOPTED BY TITLE ONLY this 27th day of March , 2002. ATTEST: PRISCILLA A. THOMPSON CITY CLERK APPROVED,, RM AND CORRECTNESS :% u v� 7Q,oWI LARELLO Y TTORNEY 37:LRC:egq:BSS 1ANUEL A. DIAZ, 3/ 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 9 of 9 g 2.' 010 . CITY OF MIAMI, FLORIDA .0 �5 INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and DATE: Members of the City Commission SUBJECT: FROM: ar �g eneZ REFERENCES City Man ger ENCLOSURES: RECOMMENDATION March 20, 2002 FILE: Emergency Ordinance Amending Sections 40-202, 40-203 and Deleting 42-7 of the City of Miami Code Emergency Ordinance The Administration recommends that the City Commission approve the attached Ordinance amending Sections 40-202 (6), 40-203 (g), 40-203 (p) and 40-203 (q), and deleting Section 42-7 of the City of Miami Code. The amended Sections extend the FORWARD DROP and BACDROP from 36 months to 48 months and allow for the purchase of creditable service years from a tax qualified 457 Deferred Compensation Plan for members participating in the Fire Fighters' and Police Officers' Retirement Trust. BACKGROUND In recently concluded contract negotiations the City of Miami and the IAFF, Local 587 and FOP, Lodge No. 20 negotiated an extension of the Deferred Retirement Option Plan (DROP) from 36 to 48 months for members of the Fire Fighters' and Police Officers' Retirement Trust. The provisions affecting members of the IAFF, Local 587 include extending the DROP to employees currently in the 36 month DROP effective upon ratification of the labor agreement and the provisions affecting members of the FOP, Lodge No. 20 include extending the DROP effective October, 2003. In addition, the parties negotiated a provision allowing members of the FIPO Trust the to ability to purchase up to three creditable service years from their 457 Deferred Compensation Plan. NATURE OF EMERGENCY ORDINANCE The amendments to Sections 40-202 (6), 40-203 (g), 40-203 (p) and 40-203 (q), and deleting 40-7 of the City of Miami Code are requested on an emergency basis as the new pension provisions are effective upon ratification of the labor agreements which is expected to occur today. Delay of amending Sections 40-202, 40-203 and deleting 40-7 would delay implementation of the labor agreement. Vol,, CAG/RSW/rsw 12261