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Home My WebLink AboutO-12225J-02-406 5/9/02 12225 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," TO PROVIDE THAT THE PROVISIONS OF THE CITY CODE ARE CONSISTENT WITH THE TERMS AND CONDITIONS OF A CERTAIN COLLECTIVE BARGAINING AGREEMENT, INCLUDING A DEFERRED RETIREMENT OPTION PROGRAM FOR THE FLORIDA PUBLIC EMPLOYEES COUNCIL 79, AMERICAN FEDERATION OF STATE, COUNTY, AND MUNICIPAL EMPLOYEES, LOCAL 871; AND PROVIDING FOR STAND- BY LABORERS TO BUY BACK PRIOR CONTINUOUS SERVICE AS A NON-MEMBER; MORE PARTICULARLY BY AMENDING SECTIONS 40-254 AND 40-25 OF SAID CODE; CONTAINING A REPEALER PROVISION AND A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.. WHEREAS, the City of Miami and the Florida Public Employees, Council 79, American Federation of State, County, and Municipal Employees, ("A.F.S.C.M.E.") Local 871, have agreed to establish a I Deferred Retirement Option Program, to include a ForwardiDeferred Retirement Option Program ("DROP") and Benefit Actuarially Calculated Deferred Retirement Option Program (BACDROP);;and 9 X222 I WHEREAS, the City of Miami and A.F.S.C.M.E. Local 871 have agreed to allow Standby Laborers to buy back prior continuous service as an non-member of the Plan; 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 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", is amended in the following particulars:l� "Chapter 40 PERSONNEL Article IV. PENSION AND RETIREMENT PLAN DIVISION 3. CITY OF CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST 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 5 12225 Sec. 40-254. Paybacks for membership credit (2) Credit for continuous service as a non-member. (a) Any member who is now a member of the Plan who had prior service with the city as a probationary, temporary, or permanent employee, classified or unclassified, but who at the time of that service was not a member of the Plan, may purchase up to four years of that prior non -membership service. The provisions of this section shall not apply to the position of standby laborer in the department of Solid waste until ratification of the labor agreement between the city, and A.F.S.C.M.E, Local 871 for October 1, 2001 through September 30, 2004 regardless ef the pay status. Standby Laborers prior to June 1, 1992 may purchase up to four years of prior continuous service as a non- member for time in a paid status of at lease forty hours a week, as verifiable by City records. Standby Laborers -after June 1 1992 may purchase up to four years of prior continuous service as a non-member for that time if City records verify full forty -hour week employment. Standby laborers who worked less than 2080 hours annually according to City records may purchase prior continuous service as a non-member for each full forty -hour week in that yearly period. Contributions will be based on the member's current rate of earnable compensation and the current contribution, rate. Interest shall be charged at a uniform rate as determined by the board. Sec. 40-255. (k) Deferred retirement option program. Effective upon ratification of the A.F.S.C.M.E., Local 1907, and the A.F.S.C.M.E., Local 871 labor agreements for October 1, 2001 through September 30, 2004, the DROP of the Retirement Plan shall be available for general employees and sanitation employees and shall consist of a FORWARD DROP and a BACDROP. Page 3 of 5 12225 Any general employee or sanitation employee who has reached age fifty-five (55 with ten (10) years of creditable service, or who has attained a combination of age plus years of creditable service equal to seventy (70), shall be eligible to participate in the DROP. Section 3. All ordinances or parts of ordinances or resolutions insofar as they are inconsistent or in conflict with the provisions of this Ordinance are repealed. Section 4. 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 5. This Ordinance is declared to be an emergency measure on the grounds of urgent public need of 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, an to generally carry on the functions and duties of municipal affairs. Section 6. 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 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. Page 4 of 5 12225 Section 8. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.2/ PASSED AND ADOPTED BY TITLE ONLY this 9th day of May , 2002. L- MANUEL A. .DIAZ, MA O ATTEST: PRI CILLA A. THOMPSON CITY CLERK APPROVE AS TO/FORM P,,PdDf CORRECTNESS: A,�DRQ VILATTELLO CITY ATTORNEY W12-S7:LRC:BSS 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, 5 of 5 12225 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM 23 The Honorable Mayor and ' TO : Y DATE ' � � FILE Members of the City Commission SUBJECT: Amendments to Sections 40-241, -254, -255 and -256 of the City Code FROM:OS enez REFERENCES: --.5;City Mana r Emergency Ordinance ENCLOSURES RECOMMENDATION The Administration recommends that the City Commission approve the attached Ordinance amending Sections 40-241, 40-254, 40-255, and 40-256 of the City of Miami Code by establishing a Deferred Retirement Option Program (DROP) for members participating in the General Employees' and Sanitation Employees' Retirement Trust. BACKGROUND In recently concluded contract negotiations the City of Miami and the AFSCME, Local 871 negotiated a three year labor agreement which provided for, in part, the establishment of a thirty-six (36) month Deferred Retirement Option Program (DROP) and the buy-back of prior service time as a Standby Laborer. Under the DROP an employee may, upon Service or Rule of 70 retirement, elect to continue working for the City in their same classification and with the same benefits for up to a maximum of thirty-six (36) months. Upon commencement of participation in the DROP, the employee contribution and the City contribution to the GESE Trust shall cease as the employee will not earn any further service credit. The employee's regular monthly retirement benefit shall be placed into an individual defined contribution account providing for various investment vehicles established by the Board of Trustees of the Retirement System. Upon termination of employment from the City, the employee may receive payment from the DROP account. The buy-back provision allows bargaining unit employees who worked as Standby Laborers prior to becoming classified employees to buy-back prior service time as verified by City records. NATURE OF EMERGENCY ORDINANCE The amendments to Sections 40-241, 40-254, 40-255, and 40-256 of the City of Miami Code are requested on an emergency basis as the new pension provisions are effective upon ratification of the labor agreement, which is expected to occur today. Delay of amending Sections 40-241, 40,254, 40-255, and 40-256 would delay implementation of the labor agreement. Ifl pv CAG/R H1 sw S:\Unions\Solid Waste\2001 Negotiations\CAG-MayorCComnrGESE-DROPOrd.doc