The URL can be used to link to this page

Home My WebLink AboutO-12249J-02-485 6/27/02. r .r ORDINANCE N0. 24249 AN 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 EXCLUDE APPOINTED CITY COMMISSION AND MAYORAL OFFICE STAFF FROM PENSION FORFEITURE PROVISIONS; MORE PARTICULARLY BY AMENDING SECTION 40-255(K); CONTAINING A SEVERABILITY CLAUSE; CONTAINING A REPEALER PROVISION, SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. Chapter 40, Article IV, Division 3 of the Code of the City of Miami, Florida, as amended, is further amended in the follow particulars: -1/ "Chapter 40 PERSONNEL ARTICLE IV. PENSION AND RETIREMENT PLAN i� 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. 12249 • • DIVISION 3. CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST Sec. 40-255. Benefits. (k) Reemployment of retirees. Except as expressly provided herein, should any retiree be reemployed by the city in any capacity as defined in this Plan, the benefits payable under this Plan shall be suspended during the period of re-employment. Upon termination of the period of re-employment with the city, benefits shall be automatically restored, as provided for in this Plan, on the first day of the month following the termination of re-employment. No additional vesting period shall be required. Effective November 1, 2001, -Tthis section shall not apply to City Commission and Mayoral assistants and secretarial staff positions, as described in Civil Service Rule 1, Sec. 1.2(a), authorized in the city budget for the offices of the Mayor and members of the City Commission; or to any employment other than with the city. Employees in the above job classifications may opt to continue collecting their pensions during their re-employment, but they may not accrue any further pension service credit. Section 2. All ordinances or parts of ordinances that are inconsistent or in conflict with the provisions of this Ordinance are repealed.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. Page 2 of 3 12249 Section 4. This Ordinance shall become effective thirty (30) days after final reading and adoption thereof .2 PASSED ON FIRST READING BY TITLE ONLY this 23rd day of May 2002. PASSED AND ADOPTED ON SECOND AND FINAL READING BY TITLE ONLY this 27th day of June ATTEST: PRISCILLA A. THOMPSON CITY CLERK APPRO -D AS 0 F M AND CORRECTNESS LE�ANDRO ILARELLO CITY AZT Wl 3.SS.MJC:smg:LB:BSS 2002. Mr F.T. A. DIAZ, MAYO 2i This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten 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 or upon the effective date stated herein, whichever is later. Page 3 of 3 12249 Ci Second Reading Ordinance C TO: Mayor and Members of the City Commission FROM: Alejandro Vilarello, City Attorney/ DATE: May 16, 2002 RE: For City Commission Meeting -May 23, 2002 Ordinance amending Section 40-255(k) Forfeiture of benefits for re-employed retirees (J-02-485) Commissioner Angel Gonzalez has requested that this amendment to Section 40-255(k) of the Code of the City of Miami be presented to the City Commission to provide that the office staff of the Mayor and City Commissioners would not be required to forfeit City pensions. These positions are unclassified and are filled at the will of the Mayor and City Commissioners (through the City Manager). The positions of Assistant City Attorney have also been included in the amendment for similar consideration. These positions are also unclassified and are filled at the will of the City Attorney or City Manager, respectively. . W712:MJC:LB Attachments c: Carlos A. Gimenez, City Manager Elvi G. Alonso, Agenda Coordinator 12249 JUN 26 2002 15:17 FR TO 913054162065 BUr ed'CNSULTANTS- A Mellon Consulfing Compony 200 Galleria Parkway, N.W. Suite 1900 Atlanta, Georgia 30339-5945 June 26, 2002 Ms. Sandra Elenberg Pension Administrator City of Miami GESE Retirement Trust 1000 Brickel) Avenue, Suite 1010 Miami, Florida 33131 Rehired Retirees Proposal Dear Sandra: P.02/03 4 H As requested, we are writing to comment on the cost impact to the City of Miami General Employees' and Sanitation Employees' (GESE) Retirement Trust if retired members are permitted to return to work and to continue receiving their pension benefits. Currently, if a retired member from the GESE plan returns to work with the City of Miami, his or her pension benefits stop. Once the rehired employee retires again his or her original pension benefit resumes plus an additional benefit for the re-employment service. We understand the proposal under consideration is for a rehired retired member to elect to continue receiving his or her pension benefit. The rehired retiree would not accrue any additional benefits under the GESE plan with respect to the return to service period. Also, there would be no City or member contributions to the plan with respect to the rehired member. The proposal would apply to all retired members from the GESE plan. We expect the proposal will have no cost impact on the GESE plan unless average age at retirement changes as a result. Under the proposal, rehired retired members will not earn any additional benefits from the GESE plan. Therefore, for GESE plan purposes the rehired member would be the same as any other retiree and should generate no additional cost to the plan if he or she returns to work. As mentioned above, we estimate there may be a cost to the plan if as a result of the change, plan members retire at earlier ages than currently. This may occur if a pattern develops of members retiring earlier than expected so they may be rehired by the City. The City may encourage this practice in order to save on contributions to the plan and retain employees with experience. Likewise, the member may perceive value in the practice since he or she will also save on contributions to the plan, and receive a salary and a pension benefit at the same time. We should point out the rehired retiree will lose Buck Consultants, Inc. 7701955-2488 Fax 7701933-8336 12249 JUN 26 2002 15:19 FR TO 913054162065 P.03iO3 Ms. Sandra Elenberg June 26, 2002 Page 2 the value of additional pension benefits (3% of pay times re-employment service payable for life). Without any actual experience to guide us, it is impossible to know at this time how prevalent a practice it will be for members to retire at earlier ages and then be rehired by the City. However, we do have a margin of conservatism in the rates of retirement used in the actuarial valuation of the plan. Based on the most recent experience study of the plan, there are fewer actual early retirements under.the plan than expected by the actuarial assumptions. Therefore, until we accumulate actual experience after the City adopts the proposal, we believe the current assumptions do provide some room to cover the possible increase in the incident of early retirements under the plan. This situation is similar to the possible increase in the number of early retirements under the DROP. Of course, with the DROP it is the member who decides to retire early and join the DROP. Under the current proposal, the City controls the decision to rehire a retired member. if . the City adopts the proposal, we will monitor future experience and make a recommendation to the Board if we believe the retirement assumptions should be adjusted. Please let us know if you have any questions, or if you need additional information. Sincerely, r -- Jose I. Fernandez Principal, Consulting Actuary JIF;sjh Pftmiami 0E$E12002\DocumenTS%CorraspondencelRahked Retirees Proposal 11696-0001 REr271025 Copy to: Sue Weller 12249 ** TOTAL PAGE.03 ** JUN 26 2002 15=17 FR TO 913054162065 09 00 r W 200 Galleria Parkway, N.W. Suite 1900 Atlanta, Georgia 30339 TELECOPY TRANSMI£SION DATE: June 26, 2002 TO: ORGANIZATION: TOTAL # OF PAGES: (including cover sheet) FROM: Ext. FAX: MESSAGE: Mr. Michael Eddy City of Miami (305) 416-2065 3 Jose I. Fernandez (770) 916-4105 (770) 933-8336 Rehired Retirees Proposal CONFIDENTIAL P.01iO3 THIS TELECOPY TRANSMISSION HAS CONFIDENTIAL INFORMATION INTENDED ONLY FOR THE ADDRESSEE_ If you are not the addressee or someone delivering it to the addressee, you are hereby notified that any distribution or copying of this material is strictly prohibited_ If you have received this transmission in error, please notify us immediately by telephoning 770-955-2488. 12249