HomeMy WebLinkAboutO-12111J.-01-640
9/2"4/O1
ORDINANCE NO.
AN EMERGENCY ORDINANCE OF THE MIAMI CITY COMMISSION
AMENDING CHAPTER 40, ARTICLE IV, DIVISION 3 OF THE
MIAMI CITY CODE RELATING TO THE CITY OF MIAMI
GENERAL EMPLOYEES AND SANITATION EMPLOYEES
RETIREMENT TRUST, SUBSTANTIALLY REVISING.
SECTIONS 40-241 THROUGH 40-264; ENACTING A NEW
SECTION 40-265 CREATING AN EXCESS BENEFIT PLAN
PURSUANT TO THE PROVISIONS OF SECTION 415 OF THE
INTERNAL REVENUE CODE; CREATING SECTION 40-266
PROVIDING FOR THE TRANSFER OF ACCUMULATED LEAVE; AND
AMENDING CHAPTER 40, ARTICLE IV, DIVISION 4 OF THE
MIAMI CITY CODE, RELATING TO THE ELECTED OFFICERS'
RETIREMENT TRUST TO PROVIDE FOR CONTINUED RECEIPT OF
THOSE RETIREMENT BENEFITS TO WHICH SAID OFFICERS ARE
ENTITLED PURSUANT TO THE CODE OF THE CITY OF MIAMI,
FLORIDA, AS 1MENDED, WHICH BENEFITS WOULD OTHERWISE
BE LIMITED 1M
BY THE PROVISIONS CONTAINED IN
SECTION 415 OF THE INTERNAL REVENUE CODE BY AMENDING
SECTION 40-296.AND ADDING SECTION 40-299 PROVIDING
FOR THE EXCESS BENEFITS PLAN TO ELECTED OFFICIALS.;
PROVIDING FOR PROCEDURES FOR PAYMENT OF SAID
BENEFITS; CONTAINING A REPEALER PROVISION, AND
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS the Miami City Commission received a recommendation
of the Board of Trustees of the City of Miami General Employees
and Sanitation Employees Retirement Trust and the Elected
Officers' Retirement Trust that the existing retirement code be
revised to
modernize
language,
eliminate
inconsistencies,
eliminate
obsolete
language; and
internal
ensure
continued compliance with Section 415 of the Internal Revenue
Code; and
WHEREAS, the Miami City Commission has determined that the
recommendation of the Board of Trustees is in the best interest
of the taxpayers and citizens of the City of Miami and the
members and beneficiaries of the .retirement plans;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
THE CITY OF MIAMI:
Section l: Chapter 40, Article IV, Divisions 3 and 4 of
the. Code of the City of Miami, Florida, as amended, is amended
in the following particulars:l/
Article IV.
"CHAPTER 40
PERSONNEL
Pension and Retirement Plan
Division 3. City of Miami General Employees' and Sanitation
Employees' Retirement Trust
Sec. 40-241. Definitions.
Unless a different meaningis plainly y r sem== =-? by re
eyentex� t -The following words and phrases as used in this
division shall have the following meanings:
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 114 _.
Accumulated employee contributions shall mean the sum of
all amounts deducted er pieked Grp from a member's compensation
or picked up on behalf of a member, plus all e'er= --mere
eentributed te the retirement plan by a member pursuant te thia
,ivis;^n together with regular interest Kheneen as provided in
seetienr---49 24q(b) this division. Accumulated employee
contributions shall also mean any amounts paid by a member for
the purchase of military service credits or other paybacks
permitted in this Plan.
Active membership shall mean membership in the retireme
pPlan as an employee.
Actuarial equivalent shall mean a benefit having the same
present value as the benefit it replaces based upon the
actuarial table adopted by the Board of Trustees.
And shall have a conjunctive meaning.
Average final compensation shall mean fer any member
b e ee m ee—a-n-emp l eyee-ems--e r-- after May 24, 1984, er f e r any
emp-levee where aet ve-- membership in t o retirem n -t r, �„
eemmeRees er reeemmenees after May 24, ,
the averag
earnab l e-eemp e n s -a t i -e n --e f ear -member -during either the last
years er the highest too=e years ef membership- serviee, w
24,— 1984, but whese—aetive--membership in the r iremer_T,—�
eeased befere-�May W, 198S, average final eempensatien shall
mean the annual earnable-eempensatien of sUeh member during
either -the -last twe-fiea.-r-s er the -highest twe-years of membership
serviee, whi-ehe;o==r is greater. erany member whe -bee,,
e tp e ee-b e e eMay 2 4, 1984, and e i s^ aetive members p-i-n-tA3e
retirement plan did neeea sty- e e e- May -3, !98S, average -Tina I
member during either the last efie year er the highest eF,--ye�r
of membership -Serowe, whieheyer is greaterpreyided, heweyer,
that the highest ene year ef annual earnnable eempensatien shall
net e3eeed the s eeen- highest year -e f annual e a r -n -ab le
dire- t e-- lengevity, anniversary and/er -meg etiat ed ee s t o f living
_________^ have a meaning dependent upon the date of hire and the
date of termination of service of the member. The two (2)
periods of time for which average final, compensation is
determined are:
Page 3 of 114
1 INO
(a) For members who became employed before May 24, 1984,
and whose active membership in the Plan did not cease
before May 23, 1985. In the case of such members,
average final compensation shall mean the highest
compensation of that member during any one (1) year of
membership service. The highest one (1) year of
compensation shall not exceed the second highest year
of compensation by more than fifteen (15) percent
excluding any difference due to longevity,
anniversary and negotiated cost of living increases.
The term "year" shall be calculated using the highest
twelve (12) months of compensation, but the months
need not be consecutive.
(b) In the case of a member who becomes an employee on or
after May 24, 1984, or for an employee whose service
has previously ended or who is not a member absent
from service, but recommences on, or after May 24,
1984, average final compensation shall mean the
average annual compensation of the member during the
last two (2) years of membership service, or the
highest two (2) years of membership service, whichever
is greater. In the case of the highest two (2) years
of membership service, the years need not be
consecutive. The term "year" shall be calculated
using the highest twelve (12) months of compensation,
but the months need not be consecutive.
Beneficiary shall mean any person receiving a retirement
allowance or other benefit from the r,-.,-; r-emepPlan.
Benefit shall mean a retirement allowance or other payment
provided by the retirement pPlan and made to a member, retiree
or beneficiarv.
Board or Board of Trustees shall mean the Board of Trustees
of thei-etireffie~' pPlan.
Child shall mean the natural or adopted child of a member
but shall not include foster children or step -children
Citv shall mean the Citv of Miami, Florida.
Page 4 of 114 _.
0 0
Citv Commission or Commission shall mean the Miami Cit
Commission.
COLA shall mean the cost of living allewane-e adjustment
rovided under the terms of the Plan.
Compensation shall mean a member's base salary, including
pick-up contributions for all straight time hours worked,
assignment pay, pay supplements, vacation, and sick leave used
while an active member, jury duty, and death in family leave
taken or any other administrative leave approved pursuant to
ordinance, labor agreement, or City personnel policy which is
used as part of the member's base salary. Compensation shall
not include overtime pay, payments for accumulated sick leave,
accumulated vacation leave, or accumulated compensatory leave,
premium pay for holidays worked, call back pay, uniform
allowances,, tool allowances, the value of any other employment
benefit or non -monetary entitlement, or any other form of
remuneration.
Creditable service shall mean r _rbers^-r credit upon which
a member's eligibility to receive benefits under the -r-
i=etirement pPlan is based, or upon which the amount of such
benefits is to be determined.
Disability shall mean the permanent and total incapacity to
perform useful and efficient service as an employee of the City
of Miami as determined by the Board pursuant to the terms of the
Plan.
.Early service retirement shall mean a member's withdrawal
from service under circumstances permitting the payment of a
retirement benefit allewaneem before such member is eligible for
normal service retirement.
Page 5 of 114
Employee shall mean any regular, a-nd permanent, and full-
time appointed officer or employee of the City, other than a
police officer or firefighter er peliee eff ee- as defined in
Section 40-191 of this the City Code. Any Faember of the
retirement plan -,he b eeemes empleyed by the Bade tt-y
Artetrepel-itan -ge-o �=-. ment by-3virtue ef the--ffier�fe ,tr-ansfe�e-r-
a-ss±�jnfnent-e€-gev- -.,menu units er funetieters and whe deer net
state and ee�int y e f f i F r s, acrd—emp l eye e s rete - --= - n systeffi
shall, se leng as-streh empleyment—eentintres, be deeRied an
emp l eyee-w iii n -t e- mea ring o f this r -s ee t i e n. in i t s ea a e -ice- as,
the —emg eyer ef smaeh Rieffib � ~gin -e --Dad e --C' e idn, 1 - - - - - - - p - - - - --- -
ge-o=event- shall be deefRed to be neluded within terFR "City"
ae-si:reh ter Ti s usedgerein to refer to -tom its eapaeity
ae-�e-effipleyer of aFftembr. The term "employee" shall include
both classified and unclassified employees, provided they are
appointed on a full-time basis as defined by the Civil Service
Rules, collective bargaining agreement, or other applicable City
personnel policy. The term "employee" shall also include
members of this Plan who become employees of Miami -Dade County
by virtue of the merger, transfer, or assignment of governmental
units or functions from the City to Miami -Dade County. Any such
employee shall continue as a member of this Plan unless they
elect within six (6) months after the date of the transfer to
become a member of the Florida Retirement System. For the
purpose of any such employee, Miami -Dade County shall be deemed
included within the term "City" as used in this Code.
Temporary, part-time or casual employees shall not be deemed
"employees."
Full time shall mean an employee who is compensated on a
forty (40) hour per week basis.
Fund shall mean the City of Miami General Employees' and
Sanitation Employees' Retirement Trust Fund.
Page 6 of 114 12111
IMIIIIIIII
Full time shall mean an employee who is compensated on a
forty (40) hour per week basis.
Fund shall mean the City of Miami General Employees' and
Sanitation Employees' Retirement Trust Fund.
Page 6 of 114 12111
i
General Employees' Union shall mean the certified
collective bargaining agent for all general employees of the
City, except Sanitation employees, managerial employees and
confidential employees.
May shall mean a permissive term.
Member er—meabr in-serviee shall mean an employee for whom
contributions to the retireme pPlan are picked up made as
required by this divisien Plan.
Member absent from service shall mean any member eeasirg
Who has ceased to be an employee wine is -absent f_emserviee for
less than (3) years in a period of five (5) consecutive years
after last becoming a member, and who de w thdi=aw his -e
her has not withdrawn the accumulated employee contributions.
rri—e r d ez—f ei T T_ :pem—siT%,re e t o be entitled
r eae i v e -a benefit -fig-ire--pe r i e d -be €e reffiembe r s h i p e -laps%-;-;
benefit ust havevestedprier te- the -ateFflbei=s eeeei}g�e
an empleyee .
Member not in service shall mean any member who e_________
has a vested right to retirement pursuant to seetien 49 255(d)
the provisions of this Plan. A member not in service shall also
be known as a vested separated member. This term shall not
include retired members who have been rehired by the City in
positions not eliqible for participation in this Plan.
Membership service shall mean service as an employee e -n
aeeeunt e= for which contributions to the==}=iE7ement pPlan are
were made as required by this div=sien Plan.
Miami City General Employees' Retirement Plan .shall mean
the City pension plan which was established effective July 1,
1956, pursuant to Ordinance No. 5624, .enacted May 2, 1956, as
amended.
Noninvestment expenses shall mean the ees-ts e f -
administering the --retirement —plan. exclude fees paid to money
managers whose duty it is to invest and manage the assets of the
Plan and to report on the performance of those investments.
Salaries for office staff, overhead, professional fees for
actuaries, accountants, financial consultants, performance
Page 7 of 114
0
monitors and attorneys, and other similar nonbenefit costs are
examples of non -investment expenses.
Normal costs shall mean the cost of benefits attributable
to the current year under the modified aggregate entry age
normal cost method.
Normal retirement age shall mean age fifty-five (55).
Option shall mean one of several choices available to
members with respect to the manner in which a retirement
-,, l ^._,- n benefit may be paid.
Payback shall mean a member's contribution to the
iFetirefRent pPlan for fflembership Bred= creditable service for
which other than regular contributions
this di-,�Psien have been made. Contributions permitted required
for paybacks shall not be picked up by the City, but may be
deducted from a member's compensation.
Pick-up amounts shall mean employer contributions derived
from a member's eai-nablem compensation through a reduction in the
member's earnable compensation. For the purposes of this Plan,
amounts picked -up shall be considered for state law purposes as
employee contributions.
Plan shall mean the City of Miami General Employees' and
Sanitation Emplovees' Retirement Trust.
Plan year shall mean the period from October 1 through
September 30 of the following year.
Pre-existing condition shall mean a condition of health
which pre -dated anv period of Plan membership.
Regular contributions shall mean amounts picked -up by the
City from the compensation of a member. Regular contributions
shall not include payback contributions ef any irrind eznatic�e or
any other amounts which may be deducted from a member's
compensation pursuant to this division.
Page 8 of 114
11211"x_
0 0
Regular interest shall mean interest at the rate determin
prescribed by the Board of Trustees
49 247(b - which_ shall be not less than one percent (1%) per
quarter of the contribution balance as of the end of the
previous calendar year, including interest.
Retiree shall mean a former member who is in receipt of
benefits from the Plan.
Retirement shall mean a member's withdrawal from service
with a benefit granted to the member pursuant to the provisions
of this n Plan.
Rule of 70 shall mean a computation eensisting of the sum,
ezf---d—ineRaberl3— age ---and length of eredit ble sei=-oxse , 9^ohieh sUM
shall peLcffiii nermal sei�yiee-- retirefRent upen the ReFaber'' s
eek red a�e and —eredita-b l e – s ery i e equaling at least 7 0
permitting normal retirement where the sum of the member's age
and length of creditable service is equal to at least seventy
(70), provided that the member has completed ten (10) years of
creditable service.
MIMI
Z- -, =M Z
Rule of 70 shall mean a computation eensisting of the sum,
ezf---d—ineRaberl3— age ---and length of eredit ble sei=-oxse , 9^ohieh sUM
shall peLcffiii nermal sei�yiee-- retirefRent upen the ReFaber'' s
eek red a�e and —eredita-b l e – s ery i e equaling at least 7 0
permitting normal retirement where the sum of the member's age
and length of creditable service is equal to at least seventy
(70), provided that the member has completed ten (10) years of
creditable service.
Sanitation Employees' Union shall mean the certified
collective bargaining agent for all Sanitation employees of the
City, except for managerial employees, confidential employees
and employees covered by another collective bargaining unit.
Page 9 of 114 12111
MIMI
Sanitation Employees' Union shall mean the certified
collective bargaining agent for all Sanitation employees of the
City, except for managerial employees, confidential employees
and employees covered by another collective bargaining unit.
Page 9 of 114 12111
Service shall mean active __r wee as employment as an
employee of the City.
Service retirement shall mean a member's retirement from
service under circumstances permitting payment of a retirement
,„ ^.,- n benefit without reduction because of age, er length of
=edit hAe service, or both and without special qualifications
such as disability. Gervi-ee reti event shall be—ee side'rfd-
neftal reti-refRent
Spouse shall mean the lawful husband or wife of a member or
retiree at the time benefits commence, unless a new designation
has been made in writing to the Board in accordance with the
provisions of this Plan. This section shall be interpreted
under Florida choice of law rules.
Surviving spouse means the spouse of the member at the time
benefits commence unless a new designation has been made in
accordance with the provisions of this Plan.
Trustee shall mean a member of the Board of Trustees of the
relc-irefRent jaPlan.
Useful and efficient service shall mean the performance of
the regular duties of the position to which the employee is
assigned by the City. The Board shall determine from the facts
of each disability application whether the member is performing
in accordance with this definition.
Unfunded liability. shall mean "i:infunded aet�iarral
liability"" which zs the excess of the actuarial accrued
liability of the ret reme pPlan over the valide—ef (the)
present asset value used to determine the City's funding
obligation
Vested benefit shall mean any an immediate or deferred
benefit to which a member has gained a non -forfeitable right
under the provisions of this men Plan, without the need for
additional creditable service. MinifRidm vesting shall mean ten
years o f ere d iib l e--FRe-mb ership—b e f e r e t h efReffibe _r is entitled te
r etirefRent benefits e3Eeeptz aeeidental disability, serviee
a reccr-disability, and—erdinary death rbenefits.
Vesting shall mean ten (10) years of creditable service
before the member is entitled to service retirement benefits and
non -service disability. -
Page 10 of 114 ��
Sec. 40-242. Ret r..w...pPlan established; purpose; name; date
operative date.
A rets eme pPlan is hereby established and placed under
the exclusive administration and management of a Board of
Trustees for the purpose of providing retirement benefits
pursuant to the provisions of this divisien Code and for payment
of the reasonable expenses of the Plan. the This Yet;,effi ..}
pPlan established herein shall be known as the "City of Miami
General Employees' and Sanitation Employees' Retirement Trust_"
and s�, ,tee e f f epi;�=e—a efdidne13, 198S.
Sec. 40-243. Board of trustees.
(a) Composition and Selection.
(1) The beard ef trastees of the retire ---"'t plan
shall eensi s t o f nine--persens s e l eet edas
£ems- The sole and exclusive administration of
and responsibility for the proper and effective
operation of this Plan is vested in a nine (9)
member Board of Trustees.
(2) The Board of Trustees shall be selected as
follows:
(a) One (1) trustee shall be 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 (2) trustees shall be selected by the
general employees and their names submitted
to the City Clerk. The trustee may be a
present or retired members of the bargaining
unit represented by the AFGGME General
Employees' Union and shall be eleeted
selected and serve according to the
constitution and bylaws of the AFSGMP;
General Employees' Union.
(c) Two (2) trustees shall be selected by the
sanitation employees and their names
submitted to the City Clerk. Whieh The
trustees shall beleng to —the be present
Page 11 of 114 12111
2
members of the bargaining unit represented
by the CIG Sanitation Employees' Union and
shall bested selected and serve
according to the constitution and bylaws #re
of GIG the Sanitation Employees' Union;and.
(d) Feur independent- The remaining four (4)
trustees, .�,hieh- trustees shall net -be -t-y
- l
mr, e.rees shall be selected by the Miami
City eCommission and may not be employees of
the City. Two (2) sideh of the trustees shall
be selected from a list of six (6) persons
submitted by the Tia General Employees'
Union according to its constitution and
bylaws and the other two (2) sueh trustees
shall be selected from a list of six (6)
persons submitted by the GIG Sanitation
Employees' Union according to its
constitution and bylaws. Eaeh of ire- iste
,- t
tee�t ethe eeRffR±S e i -e n shall --ne-t
eentain any naffie whieh duplicates a name
appearing en the ether list. in the event a
duplieetien e€ nafRes deer eeed, beth lists
shall be returned by the €er
resubmissien -- withe''t derea-tien A n
independent--trustee—shill have at least
€ellewing q _= lif=_=}-____ _ The Miami City
Commission may, at the request of the
General Employees' Union or the Sanitation
Employees' Union, accept a list consisting
of one (1) name for each position to be
filled. The lists submitted to the Miami
City Commission shall not contain
duplications. If a duplication occurs, the
City Commission shall return both lists for
resubmission.
(e) The trustees appointed by the City shall
have, . at the minimum, 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 (5) years;
Page 12 of 114 _
12111
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
seventy-five (7S) percent (75%) in a
one (1) year period;
4. Have been involved in, within the last
five (5) 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 past
five (5) 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.
(b) Term of office.
(1) The term of office for each trustee shall be two
( 2 ) years. e3Eoept er the
- - initial: -trc, 'Lscce=vhro
shlsew ellewsr
Page 13 of 114
(c)
- - -- ----------
- --- --- - -- -
MII
I'll,
- -- - ----- ---
-
- 11-1-1 --- - - -
(2)
these partieipating in gthe respeet- ve seleetien
pr-eeesses deux apprepr-iate. There shall be no
limit to the number of terms a Trustee may serve.
(3) A trustee shall take an oath of office
administered by the City Clerk within ten (10)
days after selection.
(4) A trustee shall serve until a successor trustee
is appointed and administered the oath of office.
Fiduciary responsibility.
the —retirefrent—�-,� - The board of trustees shall be
deemed the named fiduciary of the Plan and shall
discharge its responsibilities solely in the interest
of the members and beneficiaries of the Plan for the
exclusive purpose of providing benefits to the members
and their beneficiaries and to defray the reasonable
expenses of the Plan. The trustees shall exercise
those fiduciary responsibilities 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 similar character
and with similar aims.
Page 14 of 114
(1) —Fe r the e�El:�t i -a
to members and
reasenabl-e e3Epenses
retirement an;
pe s-e—e f p r-e�i dig b er e f- ; } s
benefieia-ries and defraying
ef- administering the
(2) With the—earss1sill,
,dnd-:��h��e r - -c t�1e-e�—�e�-p
p rid d-ent pe3�7sen—atm-i
pr-iden e and dil;gen e
pre -,Failing a
ng i velike —eap aGity and
familiar- with sueh
eendiiet—ef an enterrrse—ef
with like aims, and -
matters—weuld use in mac
a like--eharaeter and
(e) in aeeerdanee with
app l i e ab l e law, deeuments
ge - ___,_r J the retiiceffient
erdinanees and etest
and —ems^ v instruments
plan.
(d) Compensation. Trustees who are employees of the City
shall be granted leave with full pay when and benefits
while functioning as a trustee during their normal
working hours. Service on the Board shall not be
considered as "time worked" for the purposes of
overtime liability under the Fair Labor Standards Act.
This shall include attendance at board meetings,
workshops, board approved educational conferences and
board approved travel. B:aeh Employee trustees shall
not otherwise be paid for their services as trustees.
All ether. The nonemployee 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 (2)
months following appropriate public notice and
shall meet and conduct the business of the
et ; pPlan in accordance with F.S . eh. 286.
Chapter 286, Florida Statutes.
(2) As a— member --ef �.-he beard eEach trustee shall be
entitled to one (1) vote. and f -Five (5)
concurring votes shall be necessary for a
decision by the board. Five (5) trustees shall
constitute a quorum for the purpose of meeting
and transacting t -he business ef he—card. _A
lesser number of trustees may be appointed as a
committee to perform tasks on behalf of the
board. All committee meetings shall be subject
Page 15 of 114
12411
to the notice and meeting requirements of
Chapter 286, Florida Statutes.
(3) The board shall elect, every two (2) years, a
trustee as chairmtperson and a trustee as vice
chairma-nuerson of the board.
(f) Vacancies; removal.
(1) If a vacancy occurs en the beard of ti-ustees due
to resignation, death, or removal, er etherwisc,
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. Netwithstand,
p revs -ie n e f this dioise n to—the —e entral-y.—B-ii
eer c• g—o=etes shall be neeess ry to _f f==tda} =
e;:ieh refRe;,;al. No trustee shall be removed
pursuant to this section except upon proper
notice and hearing. The board shall prescribe
uniform rules for the conduct of such hearings.
Proper cause shall mean a trustee's failure to
satisfactorily discharge his or her fiduciary
fires and respensibilities responsibility,
including, but not limited to, failure to attend
seventy-five (7S) percent (75%) er FReV�--boas of
the meetings of the board in a one (1) year
period. For the purposes of removal only, six
(6) concurring votes shall be necessary.
Sec. 40-244. Administration of the retireme pPlan;
liability; misconduct of a co -trustee.
(a) Administrative duties of the board.
Page 16 of 114 - 1.12111
( (1) To maintain such records as are necessary for
calculating and distributing e -f- rel refRer. pPlan
benefits;
(2) To maintain such records as are necessary for
financial accounting and reporting of ret reffie ,
pPlan funds;
} (3) To maintain such records as are necessary for
actuarial evaluation of the retireffie } pPlan,
including investigations into the mortality,
service and compensation experience of ire its
members and beneficiaries of the—retrrement plan;
(4) To compile such other administrative or
investment information as may —b � qui_ _d' is
necessary for the management of the ret refRer}
pPlan;
4e-- (5) To process, certify andle-r respond to all
correspondence, bills and statements received by
the roti eme pPlan, as well as all applications
submitted to the board for ret Yer.,e pPlan
benefits;
{€} (6) To establish and maintain communication with City
departments,— and other leeal, state and federal-
gevernmental iiniagencies of government as may
be _r=ega__c-� is necessary for the management -of
the retirefRe } pPlan, including preparing, filing
and distributing such reports and information as
are required by law to be prepared, filed or
distributed on behalf of the retireme pPlan;
4_9_� Te es"C"C:r1.Jl2"Tt and maintain••ueh ether funetien's as
nesset-J1-eftentplan, e Y as e t h e i_= ops e— required- - by
-1 acv—
(7) To determine all questions relating to, and
process all applications for eligibility,
participation and benefits;
(8) To distribute at regular intervals a
comprehensive summary Plan description and
periodic reports to employees, not less than
Page 17 of 114
biennially, regarding the financial and actuarial
status of the Plan;
(9) To retain and compensate such professional and
technical expertise as is necessary to fulfill
its fiduciary responsibilities;
(10) To make recommendations regarding changes in the
provisions of the Plan;
(11) To assure the prompt deposit of all member
contributions, City contributions, and investment
earnings;
(12) To
establish a uniform set of rules and
regulations for the management of the trust;
(13) To take such other action as the trustees shall
deem, in their sole and exclusive discretion, as
being necessary for the efficient management of
the Plan.
Page 18 of 114 - 12111
Iffi-
Page 18 of 114 - 12111
(b) Pension administrator; beadr�•
siei ,dv .
(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, may
employ such staff as is necessary for the proper
administration of the r -et i-ef ,-.pPlan.
(2) The pension administrator selected by the board
shall have, at the minimum, the following
qualifications:
a. Havea19aAccounting or pension
administration background;
�— b. FRManagerial experience, including
hiring, directing and motivating a small
staff;
Page 19 of 114 121.11
3 c Have -&Sufficient knowledge or experience to
supervise data processing operations;
4. d. Have—eExperience with filing Government
forms (including federal and state
compliance requirements) and have the
initiative to inquire and successfully
obtain resource data when specific
information is not readily available;
S. e. Be capable of using benefit formulas to
calculate and pay benefits;
fr-- f. Be capable of prudent financial management
and obeying guidelines established by the
board;
7 g. Be capable of developing cash flow
projection;
8. h. Be capable of preparing financial reports
reflecting the activity of the trust and
financial trends;
9— i. Be capable of maintaining an investment
schedule;
j. Be capable of maintaining minutes of the
meetings of the board;
a:a:. k. Be capable of preparing correspondence,
issuing forms, receiving and processing
benefit claims, and expressing ideas in
writing;
4:2— 1. Be able to insist upon, and actively pursue
delivery of, all reports and other documents
required for the efficient operation of the
retirementpPlan;
M. Have eEffective oral communication-& skills;
34. n. Have eA good employment attendance record;
o. Be efficient, practical and committed to
responsible and effective operation of the
ret refRenl jaPlan, its finances and expenses;
Page 20 of 114
12111
Be able to remain neutral on decisions to be
made by the board and serve all board
members in an impartial and arm's length
fashion, giving due recognition to the
ultimate fiduciary obligation to
participants and beneficiaries of the
reti pPlan.
b- (3) The board shall have a continuing duty to observe
and evaluate the performance of any the pension
administrator empleyed by the bee -and. The board
shall, in selecting any sueh pensTsi a 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 -beard shall
beard i the
duties. he physiei
previde fer
under the
refer any
spee-ial sts—Fellewing
required by
Page
retain
iii- f e
any
emaxinee
d
a physieian--fie-
rmane e-ef its
-. shall e'endue-t
medieal-examinayrer
ef this
te a
any--medieal
visie , and
assist e
, d.., , r s t r -, t ;
e-ir etL,e,,wi s
required
divisien-and --r may
sp ee-i amt er
em i wren
after takinginto
eensideratTen
the playsieian
and reeemiendatiens-
Ward
the repents
shall
of spee-ialist,
submitwritten
regarding --the
if any,
eenelata-ia
-emam Te= te-�e
I��TZr—�Ti'eCe
W) The -beard --s shall
legal-eeunse-1
p-re-�eS-��-eira-�c�
perfermanee-ef
beard may aet
have
-aeeeuntants,
vis-e-i�
its
witheut
F. -u} h
aetuaries,
assist
administrative
independent-rnvestigatien
retain its
and ether
2e beard in the
-duties . The
upen the prefessie-
retained.
(4) ---The -beard -shall,
-eensi
,l advise ef
tent with
its advisers s -
its indep nde�ree
frem the beard
ef the
City -e f Miami
firefighters'
and -pe l i ee-e€
f i e e= s
' retirement
trust,
ende ave=
Ke share pers-enn^1;
the latter beard;-
eard-
scr-offees and
faeili ies with
Page 21 of 114 12111
(4) The pension administrator shall have a written
contract of employment with the board, which
shall include any tenure rights which the board,
in its discretion, may Grant.
(5) The pension administrator shall not be an
employee of the City of Miami.
(6) The pension administrator shall be a fiduciary of
t -he P1 an _
(c) Annual report to the City Commission. The board .shall
submit the following information annually to the City
Commission not later than Julv 13t of each vear:
(1) A report showing the fiscal transactions of the
Plan for the year ending on the preceding
September 30t as well as the amount of
accumulated cash, securities and other property
of the Plan.
(2) The current actuarial valuation of the assets and
liabilities of the Plan.
(d) Actuarial valuation; actuarial standards.
(1) At least once in each three (3) year period, the
board shall cause an actuarial investigation to
be made into the mortality, service and
compensation experience of the members of the
Plan. Taking into account the result, of such
investigation, the board shall adopt for the
Plan, 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 Plan shall be made.
(2) Actuarial assumptions based on the three (3) year
experience analysis may be modified by the board
at such times as it deems appropriate. No change
in actuarial assumptions shall be made by the
board without sixty (60) days' prior notice to
the City of the first meeting at which any change
or proposal or recommendation related to such
change is made. After the initial meeting where
such changes or proposals are considered, the
Page 22 of 114 -
City shall be given reasonable notice of any
subsequent meeting on the same or related
proposal.
(3) The actuarial value of the assets of the Plan
shall be the three (3) year moving market value
average. Each year the actuarial value shall,
starting with the market value as of October 1,
1997, be projected forward at the valuation date
based on the actual contribution .and benefit
payments at the assumed interest assumption.
This projected actuarial value is then compared
to the market value of assets at the valuation
date. One third of the difference plus prior
deferrals is added to the projected actuarial
asset value to equal the actuarial asset value.
Two-thirds of the difference between the
projected actuarial and market value is deferred
to each of the next two (2) years as future
adjustment to the actuarial value. The result
cannot be greater than one hundred twenty percent
(120%) of market value or less than eighty
percent (80%) of market value. The board may
approve other methods of determining the
actuarial value of the Plan 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 any change
in the method of determining the actuarial value
of Plan assets, the City shall be given timely
written notice of the proposed change.
(e) Authority to hire consultants.
(1) The board shall have the authority to retain its
own legal consultants, accountants, actuaries,
and other professional advisors to assist the
board in the performance of its duties. The board
may act without independent investigation upon
the professional advise of the advisors so
rptainpd-
1.
Page 23 of 114
12111
(2) The board shall retain a physician to assist it
in the performance of its administrative duties
with regard to the consideration of medical
questions arising under the Plan. The physician
shall conduct any required medical examinations
or refer the examinee to a specialist or
specialists.
(f) Defense of actions; trustee liability.
(1) The board is authorized to prosecute or defend
actions, claims or proceedings of any nature or
kind for the protection of the fund assets or for
the protection of the board in the performance of
its duties.
(2) Neither the board nor any of its individual
members shall have any personal liability for any
action taken in good faith. The trustees
individually and the board as a whole shall be
entitled to the protections contained in
Section 768.28, Florida Statutes. The trustees
shall also be authorized to purchase from the
assets of the fund, errors and omission insurance
to protect the trustees and staff in the
performance of their duties. Such insurance shall
not provide an individual with protection against
a fiduciary's fraud, intentional
misrepresentation, willful misconduct or gross
negligence.
(eq) Public records; board documents; written
communications 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.G. eh. 286
Chapters 119 and 286, Florida Statutes. Such
records shall reflect a complete and
comprehensive account of the discussions and
actions taken by the board.
4-2+ The board shall pr-evide—ire and the City manager
shall each provide the other with copies of all
'documents relating to the retireffie pPlan
contemporaneously with upon the making or receipt
Page 24 of 114
1211.
of such documents.
thereafter. All written communications relating
to ,the ret;refRe pPlan 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 adFainistrater ef the
beard.
(3) The board shall establish uniform procedures for
maintaining confidentiality of medical
information as required by state and federal law.
(34) When a hearing befere er consideration by the
City Commission is required for ret re-~^ jaPlan
business, such business shall be placed on the
agenda of the commission and heard at i -t -e the
next regularly scheduled meeting, previded,
that -
the request €er hearice.g—er en= ideratien e-€
retirefRentplan bidsi ess eeFftpliee—wi-th theGity'e
requ±ieftents ei-= guidelines as }"e timeliness
adequaey ef in Perm. ti , consistent with the
agenda rules of the commission.
(dh) Rules and regulations. Sub; rye,} t-Ee—any l -i m_ t i
eent-a-fined in this d; v s; e„ The board may, from time
to time, establish e rules and regulations as ---
which it deems necessary for the efficient
administration and management of the ret refRe pPlan.
No administrative rule may conflict with the
provisions of the City Charter or Code, state or
federal law. No administrative rule of the fund may
conflict with the provisions of any collective
bargainincr agreements affecting members of the Plan.
Sec. 40-245. Trust FU Asset management and investments.
(a) Nature of trust.
-( } The—Miami Cityygenei=aleffigl eyees , retii-effient plan
t LU
established by erdinanee The eemmissien, having
Page 25 of 114
121.1
retained that t right,
trustee to --administer
The
hereby appe; rt
the -trust thereby
a .,i:ieess
at
y t
- - - - - - - =?trustee—designated
eemmmien-shallbe
City of Miaf i
the beard oftresstees
general efftpl-eyees'
of the
tirefftent plan
,
trust - hall be
efftp-levees—and
ZTcrSz= mzca
the—s'aRi= itreveeable
ity-e r-dinan ees
knewx a the-Gity of
--sanita-tien-empleyees,
it shall�'eii�urrr—crl�d—ceTrtZ-�7�kL
tia�st-a's set
.
Mia = ----
J ^
re*-; reme^t
—a$
'
ferth in TAY'=-
r--
The Plan is an irrevocable trust fund into which
is deposited all of the assets of the Plan of
every kind and description. The Plan is a defined
benefit retirement fund. Members have an
ownership right in benefits accrued as provided
for in this Plan. No member has an ownership
right in the assets of the Plan.
(b) Custody; records.
The custody and supervision of the fund shall be
vested in the board. All assets of the Plan may be pooled,
provided that accurate records are maintained at all times
reflecting the financial composition of the fund, including
accurate accounts regarding the following:
(1) Current amounts of accumulated contributions of
members, both on an individual and aggregate basis;
(2) Receipts and disbursements;
(3) Benefits payments;
Page 26 of 114 121,11
4) All contributions from the Cit
(5) All interest, dividends, gains and losses from
investment;
(6) Such other entries as may be required for a clear,
complete financial report of the status of the fund.
44� Members of the Bard of trustees shall be the
i i du e -i a r i es of the fund. As named
trustees shall he1d,man-age, eentrel and safegi
fund selely in the interest ems --members and
b en e f ie-,wee--ems-theretirement-plan-
aw Fer the -ESeelus3ve-purpese-ef previding be f; is
te- members and their- benefieiarie-s and defraying
reasenable des of administering to
retirement plan;
b- With the -ea -re, skill, prudenee a -,a,-? diligenee
under the-eire-mstanees then prevailing t -halo: --a
familiarwithmatters —eulduse in
erendi e t o f an -enterprise-e# a like eharaeoe�anawith like aims;
e By diversifying the -}=vestments of the fund se a7
t e minimize the risk o f l e s s e s, unless under the
e, �i e m tan ees it el e pMrd e��e t t e �e
and
W in aeeerdanerte with,7 7.,e
e-raneee�n�-e-t��
applieable-law, deeuments and ether instruments
g" - =-ring the -€tend.-
44- The -beard shall have -cher i t y t e -retain ite-awn legal
eeunsel and ether prefessi-enal advisers te assist the
beard -i the p e r f e rmanee-e f its }rust duties. The
beard may aet withei:it= independent
-thee re f essi e n al adv i ee-e f advisers se retained.
45-} The beards aut he riz ed - t e -p re s ee t e -e r dcre-ad
aetiess, elai ms erreeeedings of any nature-er kind
f er the p retee t i -en e f fund assets and f e -r— -h
preteen-ien of the beard in the perfersnee of its
duties.
Page 27 of 114
1211
TAT T ,sell, e`enoT£i� , redeeffl,
e3Eelatg e -e r ethe rw i s e -ape s e -e f anypr-epees
held by '---h any ld:e--erprivate sales
ered-rwith er wi } h e , t e euri
ebligatien en the part ef any persen dealing witla
the to see the-applieatien of the--preeess
of er inqiize gate the valid -it T* 'emped-i_nee er
p rep r i e t y o f any ss ear-d3spe siren , and may lie-,
emcee,,te, ,eknewledg-e---and deliver eentraets-,-
.a-ssignments, vers er ether s, -r,, erts
Page 28 of 114 14;
ee r-peL=at i en
general es-�--speeifieyy-premres-and
, a s s eeiatrene
r trust
d t ewe
pewers
ef-
at e re with
e 002t2ie
pewer of siabstitdtien,
reei=ganizatiens
/
/
�..., , 1 �.,
reeapitaliatie
}
s, eenselidatien.9,
..� }.
and
sifflTt
CLT
bransaetiens
depesit sueh
with respeet
steek ere
to-saeh sem=tea
=r seeurrtres
in
any
er with depesiter--ilex
designated by
th., ,.-..
-,re
subj eet to
afFie r=ree-e
-- the -appreval
r fail te afRe
-e€-- the -ee
r t i z rtes
s - ear;
-ail
te,
e-€
the-P-e.�T
aequisiren
er d-rseeunt
-e x- dispesire
restrltrng--ref;
—ef--assets-i
the
. acrd
generally,-te
e3Eereis e -any
elk e pewers
of an
ew er with
investments
may deeffi te-be
to exere-e-
respeet testeeks,
eempicisin
te the
bends
e fundw hi e h
best interest e
er
t h e
f the
ethe-r
beard
fund
Page 28 of 114 14;
(c) Investments policy.
The board shall maintain a written investment policy, with
the advice and counsel. of such advisors as the board deems
necessary, and said investment policy shall set forth the types
of securities and other types of investments into which shall be
placed the assets of the fund. The policy shall further set
forth appropriate limitations on those investments, including,
but not limited to, anticipated rate of return, quality of
investment, class of investment, acceptable risk and any other
factor as required by law.
(d) Permissible investments.
(1) Trust funds may be invested without limitation in the
following asset classes:
(a) Bonds, notes, mortgage-backed securities, or
other obligations of the United States or those
guaranteed by the United States or any agency of
the United States Government or instrumentality
of the United States Government or for which the
credit of the United States Government,
Government agency or instrumentality is pledged
for the payment of the principal and interest or
dividends thereof.
(b) Certificates of deposit of any bank incorporated
under the laws of this the -&State of Florida, or
any national bank organized under the laws of the
United States, to do business and situated in
this state, to the extent that such savings
accounts are fully insured with the federal
government or an agency thereof, and 3€ that the
certificates of deposit are secured by the
Deposit of Securities of the United States
Government.
(c) Repurchase agreements with United States Treasury
Securities, and agencies of the United States
gGovernment as collateral, said collateral to be
held by trustees.
Page 29 of 114
(2) Not- more than five percent (5%) of the fund at book
value may be invested in any one (1) entity of the
categories listed below:
(a) Common stock, preferred stock and interest-
bearing obligations of corporations having an
option to convert into common stock, domestic or
foreign, when recognized on a major United States
stock exchange; provided that the aggregate
investment of the fund in any one (1) issuing
corporation shall not exceed three percent (3%)
of the outstanding capital stock of that
corporation.
(b) Notes secured by first mortgages Ion real
property, insured or guaranteed by the Federal
Housing Administration or the Veteran's
Administration.
(c) Interest-bearing obligations with a fixed
maturity of any corporation eindasseti aek
e-eeuritzes, within the United States; provided
that such obligations are rated by at least two
(2) nationally recognized rating services in any
one (1) of the four (4) highest classifications
approved by the comptroller of the currency for
the investment of funds of national banks, or if
only one (1) nationally recognized rating service
shall rate such obligations,- such rating service
must have rated such obligations in any one (1)
of the three (3) highest classifications
i,.,rete fe mentioned in this section. Any
security downgraded subsequent to purchase which
results in the security falling below the
recommended guidelines may be held at the
investment manager's discretion.
(d) Mortgages, excluding those backed by the United
States Government or Government agencies and
instrumentalities, which are a commercial
property secured by a first lien mortgage note
for up to, but not in excess of, eighty (89)
percent (80%) of the appraised value of the
property.
Page 30 of 114
(e) Common stock and preferred stock of foreign
corporations; provided that the overall
investment under this paragraph shall not exceed
ten percent of the market value of the total
trust fund. The i'etfRencTshall b�id
e
threugh-eeFFffRingled er FRut,,�l fldnd, rather tzhan
a separate--treeeiznt a d as susir- are —eiEefRp fr-m
the rpe3F entity .
(e) Limitations on investment.
(-3-1) Trust funds may not specifically be invested in---
private
yprivate placements, Eurodollar securities, foreign
credits or debt to equity exchanges.
(42) Within the limitations of t-ire—€eregeing standards in
this section, the board shall have the authority to
acquire every .kind of property and investment which
persons of prudence, discretion and intelligence
acquire for their own accounts. The board may retain
property properly acquired without limitation as to
time and without regard to its suitability for its
original purchase.
(,df) Money managers.
(1) The Board of trustees
shall retain one (1) or more money managers for ire
management of p3Fepert the assets held in the —City of
ami --g ene L -al ems le eeql qlq4
Sanitati—
retirementtrFdt by the Plan, and the board shall
convey property of the fund trust to such meney
managers 4-s-3- for investment and reinvestment in
accordance with the provisions of this section.
(2) All money managers shall have a written contract with
the board specifying the assets to be invested; the
asset classes appropriate for utilization; expected
performance; standard of care and resolution of
disputes. All such contracts shall be governed in
accordance with the laws of the State of Florida and
shall have venue for resolution of disputes in Miami -
Dade County, Florida. In the event that any money
manager shall invest assets of the Plan in a
prohibited category of investment or shall otherwise
breach the terms of the investment management
agreement, if such breach causes a loss to the trust,
Page 31 of 114
12111
the contract shall require the money manager to make
the trust whole for any losses incurred. Each money
manager shall be a fiduciary of the Plan.
a— (3) 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 manager fails to meet the
guidelines and objectives, or fails to meet its
contractual agreement with the board, the money
manager may be terminated by the board. The
performance of the investment portfolio for the
retirement pPlan shall net be not less than ninety -}8
percent (90%) of the median performance of comparable
portfolios as determined jointly by the board and the
City manager. If ire performance falls below that
minimum standard, the money manager4s4- shall
automatically be removed, unless, based on extenuating
circumstances, the board recommends continuation and
such continuation is approved by the City Commission.
The board retains the right, at all times, to
terminate any money manager agreement, with or without
cause.
b— (4) In the ,
emehange,retentien, sale .,,a gefRext of prem-<,
r --r-- -1
€er the benefit ef the —€u^�'� , the conduct of their
affairs, all money managers shall exercise a4-1 the
judgment and care under the circumstances then
prevailing, which Ften 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 . e— T4pe? Ni I --
request by the 'earl, the fnMoney manager4s-)- shall
disburse cash or property from the fund to the board
ems—designee . in requesting j the FRei=r=y ...____ ger (s
� bu t 1 l 1
t e e` ��z-i��.]u-ire "z x�-x-re-b e-crr�a�iaT�r]eTl-e�
the -�3 r ey i s i ense���a C:r��l ems -ani -shall n e d i _= t
the —farad tebdsed fer er diverted te—purpeses ether
than peviding benrP is te—Ffiembers and benef�
o f the retireplan and efra ing reasenable
excpenses efz adfRinistering—the —retirex}en t plan. Ay
upon written request. Any Such written request tethe
fneney g^()frem the be shall constitute a
Page 32 of 114 12111
• 0
certification that the distribution so requested is
one that the board is authorized to direct and the
money manager(s) hal-I should not be required to
investigate the application of such money by the board
or its designee. No distribution under this section
may cause any part of the fund to be used for, or
diverted for, a purpose other than providing benefits
to members and beneficiaries of the Plan and defraying
the reasonable exnenses of administering the Plan.
(5) The board shall have a continuing duty to observe and
evaluate the performance of.any�money manager or other
investment eeidnsez advisor retained by the board. The
board shall, -J-n Seleeting—a fReney fRanager—er ethe=
investment e6usel , eHer_=s all judgment and eares
under the --ei Rst then prevailing o"o'hiehpew=
of pruden= , diseretien–and i}lelmlmigenee—e3Ee3=— -sc i
thefRanagefRent ef their ewn affairs may, as part of
its continuing duty to evaluate the performance of its
money managers, retain the services of a performance
monitor who shall be responsible for determining the
appropriate performance benchmarks and for advising
the board of needed changes in its investment policy
or asset allocation. Any such advisor shall
constitute a fiduciary of the Plan.
() (g) Records to be maintained.
(1)
transuetiens—hereiander, and a*eee, ,.,'-s, beaks --arra
reeerdsicelating—therete—shall be epee to inspeetien
and —audit at a l l reasenable—times—by—t h eCity, e
retirement beard ertheir designees. Any money manager
or investment advisor who has custody or control of
any trust property or who is otherwise employed,
directly or indirectly, in the management of Plan
assets shall keep accurate and detailed accounts of
all such activities, which records shall be open to
inspection and audit at all reasonable times by the,
City, the retirement board, or their designees.
(2) The board shall ase keep accurate and detailed
accounts of a4-1 its assets and investments, -s;
d sbiirsemen}c-..mac^rites—e-ther transaetiens hereunder, and
Page 33 of 114
•
ti a therete,
all aees�r��eeks tea such records relative
shall be open t -e for inspection and audit at all
reasonable times by the City, or its designees..
Sec. 40-246. Contributions.
(a) Member contributions.
(1) Regular contributions of each member of the
ret reffie pPlan shall be made each pay period at
the rate of ten (10) percent of each member's
earnable compensation. Gf that a meidnt,—a ___fn
eefapens a t i en shall be—e re d i t ed t o the GGL"f-und
established by s e e t i en- 49-2S6.
(2) The City shall pick up, rather than deduct, all
regular contributions of members. The City shall
derive pickup amounts from the same source of
funds which is used in compensating members of
the ret reme pPlan and shall do so by reducing
the earnable compensation of each member. All
pick up amounts shall be treated as employer
contributions for the purposes of determining tax
treatment under the Internal Revenue Code of
1954, as amended.
(3) The board shall certify to the appropriate City
authority or officer responsible for making up
the payroll for members of the `;r m r} pPlan,
the proper proportion of each member's earnable
compensation which shall be picked up each pay
period as well as any additional amounts which
shall be deducted for any member. In determining
the amount earnable by a member in each pay
period, the board may consider the rate of annual
compensation payable to such member on the first
day of each period as continuing throughout such
period, and the board may omit pickup of amounts
from earnable compensation for any period less
than a full period. To facilitate pickup of
contributions, the required contributions may be
modified by such an amount as shall not exceed
one-tenth of one. (1) percent of the annual
earnable compensation which is the basis upon
which such pick up amount is to be made.'
Page 34 of 114
(4) The proper authority or off:
making up the payroll fc
^t4 ^} pPlan shall certi
each payroll, the amounts
picked up by the City for
amounts shall be deducted c
City, and when deducted or
paid to the L=etireme~} pPlan
active membership account I
member.
0
Lcer responsible for
)r members of the
fy to the board, on
to be deducted or
each member. Such
r picked up by the
picked up, :shall be
and credited to the
_or each respective
(5) Regular contributions shall be made,
notwithstanding the fact that the minimum
compensation provided for by law for any member
shall be reduced thereby. Every member shall be
deemed to consent and agree to the pick up of
regular contributions provided for herein, and
payment of compensation less such contributions
shall be a full and complete discharge of all
claims and demands whatsoever for service
rendered during the period of employment covered
by such payment, except as to benefits otherwise
provided by this division.
(b) City contributions.
The City's annual fiscal contribution to the
Vet=ire pPlan shall provide for the following: (1)
noninvestment expenses of the ret refRe~ pPlan; (2) amortization
of the unfunded aetdarrizal aeeru liability of the retirement-
pPlan;
et remenpPlan; and (3) normal costs of the retireme pPlan.
(1) The City's contribution for noninvestment expenses of
the ~-et; r^ --e pPlan 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 offstreet
parking.
(2) The City's contribution for the unfunded liability of
the retic^m^r} pPlan shall be made in accordance with
the eeeend amended final judgment, as amended, in the
matter of Gates v. City of Miami, Case No. 77-9491, in
the- circuit court for the eleventh judicial circuit in
and for Miami -Dade County, Florida, and in accordance
with the following additional provisions:
Page 35 of 114 21
a. As of October 1, 1997, any dnfidnded�actuarial
accrued liability in excess of the market value
of assets at that date shall be amortized over
the aae rt ize pe = reds in of €e e t en that ---do
thirty (30) years as a level dollar amount. Ater
As of October 1, 1997, the—afRerti-satieT perie'c
shall as,€elle•-4— benefit improvements for
actives shall be amortized over thirty (30)
years. -2�—. Benefit improvements for retirees
shall be amortized over fifteen. (15) years.
Actuarial gains and losses shall be amortized
over 15 years. Changes in actuarial assumptions
shall be amortized over twenty (20) years.
(b) To the extent the actuarial liability plus normal
cost is less than the actuarial asset value, all
prior amortization bases are considered fully
funded.
(3) The actuarial method for evaluating assets shall be
changed to a moving market value average over
three (3) years beginning September 30, 1997. As of
October 1, 1997, market value shall be used; as of
October 1, 1998, a two (2). year moving average shall
be used; as of October 1, 1999, and thereafter, a 3
year moving average shall be used. Each year the
actuarial amt value, starting with the market value
as of October 1, 1997, will be projected forward at
the valuation date based on actual contributions and
benefit payments at the assumed interest assumption..
This projected actuarial value is then compared to the
market value of assets at the valuation date. One-
third of the difference plus prior deferrals is added
to the projected actuarial asset value to equal the
actuarial asset value. Two-thirds of the difference
between projected actuarial and market .asset value is
deferred to each of the next two (2) years as future
adjustment to the actuarial asset value. The result
cannot be greater than 129 one hundred twenty percent
(120%) of market value or less than 44 eighty percent
(80%) of market value.
(4) The modified aggregate entry age normal cost method
will be applied for costs as of October 1, 1998, and
each October 1St thereafter, based on demographic and
asset data as of the previous October ist adjusted for
interest from that date to reflect payment timing.
Page 36 of 114
i
This modification method will determine the annual
normal cost based on the present value of future
normal costs spread as a level percent of pay. The
present value of future normal cost will be based on
the present value of all benefits less present value
of future employee contributions less the greater of
the actuarial accrued liability or actuarial asset
value. Under no circumstances will the total cost be
determined to be less than zero.
The calculation for normal costs shall be performed
separately by actuaries for the City and for the
retirement pPlan in accordance with the provisions of
the foregoing paragraph. The actuary for the
retirement pPlan shall use the actuarial assumptions
adopted by the board. The actuary for the City may
use any actuarial assumptions deemed appropriate by
that actuary. If the actuary for the ret refRe-} pPlan
and the actuary for the City agree on the normal cost -a
contribution to be made by the City, that amount shall
be contributed by the City. If the two (2) actuaries
cannot agree on the normal costs contribution, 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
or Conference of Consulting Actuaries. The third
actuary shall, as soon as practicable, submit to the
board and the commission a funding recommendation
utilizing standard acceptable funding techniques and
assumptions. Thereafter, the commission shall fund
the amount recommended by either the actuary for the
ret Yeffien pPlan or for the City, whichever
recommendation is closer to the recommendation of the
third actuary.
(45) 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 and unfunded liability contributions
to the ret; refRe„} pPlan for the next fiscal year,
including the amount of any benefits payable on
account of any predecessor pension or retirement
fund; and
Page 37 of 114
0
n
L J
(b) The amount of appropriation required to pay the
noninvestment expenses of the ret r..,.,^„* pPlan
for the next fiscal year.
(--,;,6) On or before May 15 of each year, the director of
finance shall certify to the appropriate fiscal
officer of the Miami -Dade County Metre elites
Government, the amount payable by such Metropol.itan
Government under the provisions of Act 59-203 of the
General Laws of Florida. Such amount shall consist of
that proportion of the appropriation certified by the
board pursuant to paragraph (4) of this subsection as
the total earnable compensation of members who are
employees of such metropolitan government bears to the
total earnable compensation of all members. Upon
receipt of such amount from the Miami -Dade County
Metre e _t,n Government, the director of finance shall
cause the amount received, less that proportion
included for noninvestment expenses, to be paid into
the benefit account, and such amount shall be included
in the total appropriation payable by the City to_the
ret reffient pPlan as required by this section.
(,67) All contributions made by the City to the Yet; refRe
pPlan for any given fiscal year shall be made
quarterly, in equal payments, on the first day of each
quarter during 'the fiscal year in question. If the
amount of the City's contribution for normal costs has
not been determined by the initial payment date in any
given fiscal year, the City shall make quarterly
payments based upon the greater of (a) the prior
year's contribution to normal costs, or (b) the amount
calculated pursuant to the amended final judgment in
Gates V. City of Miami, as amended. Upen
de t erfRi n a t i e n efheCity's eentributien fe r nezfRal
e-eS-t ” , if the ameuir,_—required cebe eex=rcrrbuccd
differs frefR tzhe---amount previeu-s3 aid, a
eeri=espendii�f adjustmecmc--sh11 be�Rade—rn full en the
-lT payfRent date.
Sec. 40-247. Accounts.
(a) Generall
There shall be two (2) accounts within the Plan; the
membership account and the benefits account. Each
Page 38 of 114
E
account shall be operated in accordance with the
provisions of this section.
(ab) Membership account.
(1) The membership account shall be eredited with consist
of the accumulated contributions of eaeh the members
of the Yet;rem,., pPlan and the accumulated
contributions of each member absent from service. The
membership account shall also include regular interest
paid on member contributions in accordance with the
provisions of this section.
(2) All withdrawals of Aaccumulated contributions,
frem--serviee , and a eeuffiu fated —ee trib:utrens whether
made at the request of a member or paid to a legal
representative or designated beneficiary of a deceased
member, in the event ef a member's death i l e a
fflember 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.
(bc) Benefit account.
(1) The benefit account shall be—ea=edited-with consist of
all accumulated contributions transferred from the
membership account, all City contributions, tee
retirement plan all interest and dividends earned on
the funds of the retirement; plan (e)Eeept as previde
in aragi-aph (2) ef this 9:ribseetien` , aid fund
assets, all reserves for payment of ret refRer} pPlan
benefits and all other assets of the fund.
(2) On January 1 of each year, the board shall transfer
from the benefit account to the membership account, an
amount-& sufficient to allow regular interest on the
individual balances ef the—mefabei-s' aeee=ints- in the
membership account. "Regular- interest" shall: fRean
Page 39 of 114
1211
•
( 3 ) All expenses of the re'- i reFRe , pPlan shall be
chargeable to the benefit account. Such expenses
shall include, but are not limited to, the fel
a- payment of Aall retirement benefits pard to
beneficiaries of the Miami City General Employees'
Retirement Plan, and to beneficiaries of the City of
Miami General Employees' and Sanitation Employees'
Retirement Trust,, and b- A3-1 retirement allowances
pard to any other persons wire did net-begirtembers
of the -moi-amity general empleye_s retirement plan
bi±t- who retired under the provisions of any
predecessor pension or retirement fund.
(d) The Board, by uniform rule, may adopt alternate
bookkeeping methodology for the maintenance of
arrniinf-q
Sec. 40-248. Physical examination required; effect of pre-
employment -disab'_'_ity conditions.
(a)
All employees, as a condition of entry into the Plan,
shall agree to submit to a uniform medical
examination, as may be required by the board, for the
purpose of determining the existence of pre-existing
medical conditions. In lieu of a Board physical, an
employee consents to the Board's access for the
purposes of this section to any physical performed by
the City. No persons shall be denied entry into the
Plan on the basis of . any pre-existing medical
condition.
(b) Upen eemmeneeFRent ef—a-etive Faember-ship in the
at the td:fRe-eTempleymentby the -City -shall W-1 o—� ---
Writin any rght te-an aeeidental er service.= iiaeurred
disability iFetirem""nt allewanee based en the -fReffib r' s
pie efm-,pleyme nt—disability er any aggravatren the reed
Page 40 of 114 A �
Affieffib e i- with a p r-eeftp l eymLn—disability shall
eligible—€er ate—aeeidental er serviee ed
d i s ab i t rte—retrremc�=ewwe—er l y —, f it e an e
sh wn tofir satisfaetien —efie beard that sueh
member -mad{ uld ha -,,Fe been entitled ce an aeeident l er
se 'ree incurred disability retireffic„} allewanee
withstanding the p eefRpleyment disabilityr disabilityIn the
event that the physical examination described in this
section shall determine the presence of a pre-existing
medical condition, said condition shall be reported to
the employee and recorded in the records of the board.
Each employee shall acknowledge the receipt of the
medicalreport and execute a form, as prescribed by
the board, indicating knowledge of the pre-existing
condition and an agreement that said condition cannot
form the basis of a service -incurred disability
retirement unless it can be shown that the member
would have been entitled to a service -incurred
disability retirement allowance on the basis of
aggravation of the pre-existing condition.
(c) In the event that a member believes the medical report
is in error, the member may request a review by the
administrator within thirty (30) days of receipt of
notice of the physical examination results. If the
administrator's review does not satisfactorily resolve
the question of the pre-existing condition, the member
may request a hearing before the board. Failure to
request such a review will not preclude a later
challenge on this issue. The board shall prescribe
uniform rules for the conduct of such hearings.
Sec. 40-249. Membership; members absent from service.
(a) *The membership of the ret reme pPlan shall include
all employees as defined in this Plan,
and any fRefftbe-r-
except police officers and firefighters. Membership
shall also include an employee who i -s- has been absent
from service for less than three (3) years in a period
of five (5) consecutive years after last becoming a
member and who has not withdrawn his or her
accumulated contributions. The active membership of
the retireme„} pPlan shall include all employees, but
shall not include any member absent from service.
(b) With the emeeptie n ef persens eligible te —dee l i
mefabership in the --r et i refRent plan pursuant to see t i en
Page 41 of 114
12111
(c)
• 0
40 2S9 eerie —Cede, Pparticipation in the rets efRe }
pPlan is a mandatory condition of employment for all
employees except as permitted by Section 40-250. An
effipleyee's an_cceptance of employment with the City
shall constitute authorization for the City to pick up
contributions from the earnable compensation of the
employee. unless and atter—eleetien perffiitted—IDy
ee -i e n 4G 259 is FRade .
withdraw eeamidated eentributiens, er sheuld---an
member. beeeme--a fRember of any ether City srens--=d
retirement -plan er system, er sheuld—anry -fRembebeeeFfte
a bene -€i e —ems die, he er she shall t e
memership—eeas env-ee--previeu sly e--r=dcbl _
to air--ems1eyee shall beeeme veld,,and --sheulr- the
empleyee—againb eeefre—a f tem ei=, he—e r she shall e n
e—i=etr '_�-rplan —aS a --new fReFbcrwTcrrout—ci-ecci�—t-ez
Membership in the Plan shall end
under the following conditions:
(1) Absence from service due to resignation, termination,
budgetary reduction or layoff for more than three (3)
years in any period of five (5) consecutive years
after last becoming a member;
(2) Becoming a member of any other City sponsored Plan;
(3) End of appointment;
(4) Expiration of office;
(5) Death.
When membership ends, all creditable service
previously earned becomes void. If the member again
becomes an employee of the City, the employee shall
enter the Plan as a new member with no credit for
previous service, unless time is repurchased as
provided in the Plan. Upon becoming a retiree, a
member shall be entitled to those rights earned as of
the date of retirement or such benefits as are
specifically made applicable to retirees.
Page 42 of 114
12111
Sec. 40-250. Right of certain persons to reject membership.
Those persons employed in the following positions shall
have the right to reject membership in the retire pPlan
within the later of one year from the —of€eetive—date of
G:edinan-ee Ne - 44927 June 10, 2000, or within one year from their
respective commencements of employment or appointment with the
City, subject to performance of the conditions set forth in
paragraphs (1) and (2) below, within the aforesaid time period:
City manager, City attorney, City clerk, chief deputy City
attorney, deputy City attorney, assistant City attorney,
assistant City clerk, and those employees identified by the City
administration as employed in the executive service of the City.
The conditions upon which membership in the re ^m^r' pPlan 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 ret reffte ' pPlan 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
i,etirefaent pPlan.
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 compensation.
b. A contribution to
fund must be made
membership in the
contribution by the
by the City at a
percent of the
compensation.
the designated public trust
by the employee rejecting
^t pPlan, and such
employee shall be picked up
rate of not less than five
employee's annual earnable
Page 43 of 114
•
C. An employee may, if so
agreement, take actual of
his or her contribution,
made by the City on his
reaching age 55 or upon
totally disabled by mak--
of
ak:of distribution of accou.
of distribution of bene:
trust agreement.
0
provided in the trust
constructive receipt of
and those contributions
or her behalf prior to
becoming permanently and
ng a revocable election
its pursuant to the mode
:its as provided in the
d. The City manager may elect to participate in an
public trust fund designated by the employee and
approved by the City Commission. Contributions
made to the designated public trust fund by the
City shall be in accordance with the provisions
of a resolution designating benefits for the City
manager and approved by the City Commission.
Contributions, if any, by the City manager shall
be picked up by the City as provided by the
provisions of a resolution approved by the City
Commission. The City Manager may, if so provided
in the, trust agreement, take actual or
constructive receipt of his or her contributions,
and 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.
e. The City Attorney, assistant ' City Managers, and
assistants to the City Manager may elect to
participate in a public trust fund designated by
the employee and approved by the City Commission.
Contributions shall be made to the designated
public trust fund by the City at a. rate of 20
percent of the City attorney's annual base
salary, and eight percent of the annual base
salary for each of the assistant City managers
and assistants to the City manager. The City
attorney, assistant City managers, and assistants
to the City manager may, if so provided in the
trust agreement, take actual or constructive
receipt of his or her contributions, and those
contributions made by the City on his or her
behalf prior to reaching age 55 or disabled, by
Page 44 of 114
making a revocable election of distribution of
accounts pursuant to the mode of distribution of
benefits as provided in the trust agreement.
(2) Upon rejecting membership in the retirefRe pPlan,
employees in the foregoing positions as defined in
this subsection (e), above, may not elect at a later
date to transfer membership to the retirem^r} pPlan,
unless the election is the result of the loss of one
of these positions. . Should an eligible individual
elect to reject membership in the retireTM^„} pPlan,
all previous membership service in the ^�'
pPlan shall be deemed lost upon disbursement or
transfer of the employee's member contributions from
the retic^m^pPlan. Rejection of membership in the
public trust fund, in favor of membership in the
retirefRent. pPlan, shall preclude employees in the
foregoing positions from transferring membership to
the public trust fund at a later date.
(3) 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 retire -R^„}
pPlan.
Sec. 40-251. Transfer of City employees to retireme pPlan.
(a)
1.1--- .- - ice --.ri, .. .... -- ---....----- - ---- - N L....... �.. �. .... -
pes-i t i en ether than firefighter e r pe free—effreer ana
whe, prier tze—ideh appeintftent, • as a FaeR:Jbei= of the
City ef—Fiaffij firefightersl and l i e^ „ f f;^ s,
-ret-irefRent r3d s etireFaent syst^ shall haves
mefabership transfixed —=et etirefaent jalanT
e-�the—date —ef siderx—crppe-= rr cnie3=t .—Crccrrccrb r2
sereee—earned es—a— FReFabei= ef the retirement
shall be deefaed—ereditab4 _ serviee in the retirefftent
plate—upen sueh t:rans€er. In the event that a
firefighter or police officer of the City who is a
member of the City of Miami Firefighters' and Police
Officers' Retirement Trust ("retirement system") is
reclassified to a position other than firefighter or
police officer, the employee shall be automatically
transferred to membership in this Plan. Creditable
service earned as a member of the retirement system
shall be deemed creditable service in this Plan.
Page 45 of 114
12111
(b) Any current employee employed prior to April 1, 1996,
by the City in a position defined in section 40-250
who has previously rejected membership in the
retirement pPlan and elects membership in the
-retirement pPlan by June 30, 1996, shall have
membership transferred to the ,,e ;reme pPlan,
effective July 1, 1996. Creditable service as a
member of the public trust fund defined in section 40-
250 shall be deemed creditable service in the
retirement pPlan upon such transfer.
(c) Past service buy-back. Prior to election for
membership transfer under paragraph (b) above, an
employee in a position defined in section 40-250 may
elect to enter into an agreement between the employee
and the City to purchase creditable service as a
member of the public trust fund, from his or her
original date of employment to the date he or she
first becomes a member of the public trust fund
defined in section 40-250 above.
(d) Outstanding loan balance. Any member of the public
trust fund who has an outstanding loan against his or
her public trust fund account balance and who elects
to transfer to the retireffie } pPlan must repay said
loan in full prior to transfer to the ret rem^r}
pPlan.
(e) Commencing on the effective date of transfer to the
retirement pPlan, a member who has transferred from
the retirement system or public trust fund as defined
in section 40-250 shall make regular contributions at
the rate required by the ret refRer} pPlan.
Accumulated contributions credited in the retirement
system or public trust fund as defined in section 40-
250 to the account of such member shall be transferred
to the membership account of the ret re. Re„} pPlan and
credited to the member thereunder. There shall be
transferred:
Page 46 of 114
1211
the aT}eiint of assets,
as
Eby ae da -i -.l
uatien, held by
system ffiefRbei whe
the retirement
transfers ffteffib
system €ems–any
ri pte rn
r�rrefftent p—ems
Page 46 of 114
1211
(21-1) The employee/employer contribution account
balance held in a public trust fund on behalf of
any section 40-250 defined employee who transfers
membership to the retireffie„' pPlan.- .
(f) If any member of the V^};Veme„} pPlan has transferred
from the retirement system or a section 40-250 public
trust fund and his or her contributions pursuant to
membership in the retirement system or public trust
fund cause accumulated contributions at the member's
normal retirement age to exceed the amount such
accumulated contributions would have been had the
member been a member of the retirefRen pPlan during
his or her entire period of service with the City,
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 member of the ret reffie pPlan during his
or her entire period of service with the City.
Sec. 40-252. Creditable service.
(a) F-er any fRefab=Tefthe —retrrefRent pian, eCreditable
service shall consist of all time spent in fReFa =rshl-.
---r
service since last becoming a member, plus any other
time for which ___mbersh'-r creditable service is
received pursuant to the provisions of this division.
Creditable serviee-previeters-ly ebtained as a FReR9 er of
the Miami City genei4-empleye_s' Kure -en -t- plan r
as a FReffiber e f the -M i afRi Gtyeffi levees ' retzirement
eytefR shall be under th
�eeR3eE�e�e���b�-e-9 e-1^�o ' •• •• the.
Gity—e f Miaffii g erre.ra l emp leve_ -s and sanica t i en
empleyeee,etirement-tryst te- the -e3Eent 9s ieh servien
r efta i ned-eL-edited t e aFReffib er-en May 23, 1:98S.
(eb) The board shall
administrative
f-~= and -determine by
rule-& and regul ati ene the
service in any year which is equivalent t
Page 47 of 114
amount of
o a year of
membership service. n„t in ne ease shall The board
may not grant more than one (1) year of membership
service be ereditable for all service in erre any
calendar year. The beard-sball net allew er-edit fems'
(c) The board may adopt rules and regulations to verif
membership credit claimed by any member.
Sec. 40-253. Dismissal for willful misconduct.
(a) Netwithstanding any previsie„ in this diviszen tethe
eentrae-t--,Upon a member's dismissal from employment for
willful misconduct associated with the duties or
responsibilities of his or her employment or office
with the City, the following shall apply:
(1) All ownership rights, title,-_ and property
interest- in such member's accumulated
contributions shall immediately vest in the
,mr member; and
(2) The dismissed member shall no longer be entitled
to receive any benefit whatsoever under the
et r} jaPlan.
a. The term "willful misconduct" as used in
this section shall mean the commission of
any act which would constitute a forfeitable
offense under Section 112.3173, Florida
Statutes.
(b) Should dismissal of an employee for willful misconduct
asseeiated with the duties and respensibilities ef his
er her emgieyffient with the City as defined in this
section be reversed by the City Manager or by a court
of final jurisdiction, the former employee, if he or
she again becomes a member, may elect to. reconvey all
ownership rights, titles and interest in his or her
accumulated contributions to the retiL-eme pPlan and
may elect to payback for time during which the member
was dismissed. Payments made to the ret reme pPlan
Page 48 of 114
1111
0
pursuant to this paragraph shall be made in such
manner as the Board shall, by.rule, prescribe.
(c) The Board shall, by administrative rule, adopt a due
process procedure to implement this section.
Sec. 40-254. Paybacks for membership credit.
Members shall have the right to receive membership credit
in the retirement pPlan in accordance with the f`„ _w n
provisions- of this section. Each payback provided for in this
section shall be independent of any other payback and may, where
appropriate, result in cumulative credits. If a member revokes
the payback election, is terminated, resigns or is otherwise
separated from the City before the payback is completed, the
member shall only receive that portion of credited service
purchased as of the date of separation.
(1) Or-rt€e±= 13Y-e-�,i e u s mem ci szi3p ser -vi eye f e: ee±=tain
r=emplej,,edfer-m^Y -aem e±=a Restoration of prior service
credit for reemployed members.
M
has net been terffiinated
€ems -a peried
in e3£eess e -f
tree wears and
whe,
at the time
ten inati
ezfReFabership,
hLTive
6I
mere years e-€
e red i t ab l e s epi
she--may-apply
FRefRber-ship servree-blfil-„gf
e-leetien to pay
ee
fer
baek
again
fRembership--eredit
b eeefRes
with
the-ameunt
a faember, he er-
fer prie�
the beard an
ef—ee=umidlatz
eentributrens previeuslir
3z�iell e e t i e n
made sdant to
pay b a ek wwithdrawn
t err
tk-,-i-s
e
a-eeidfRidla
returned
ee-ive FRefftbei=ship---erred
paragraph,
t ed-eentrib;trens
- to-hifft er hem
i t
a Faefaber shall
at
the rate- in e
1'tte't't'bershl'p }e:FR
f f e et—whee
-rimto
, t -e _+-Le=w4:1.-ki
regular -
interest eche Teen
-ems
s ubjeette-
the -app reva l e f
tUh beard,
ttleT.C� •v1 t efaeeufR
Ced
een Ci ibut
i ens
y
withdrawn, -tegethe=
thereen.
with regular
1 r _ . _ _ __s
intereet
a. Reemployed former member may restore previous
membership service by repaying the accumulated.
contributions withdrawn together with a uniform
Page 49 of 114
•
rate of interest as determined by the Board.
This benefit is only available to persons who
separated from prior employment with the City
other than by involuntary dismissal.
MEN
mefnbershi
p –e re d i t f e r --prier FRemb
er-s h i p se
te—a—iiia)
fr-em Prre
idfR of f$idr- years, previded
i= empl-eyfRent was
sep
under
r_3t-i en
he e3Fable
eenditiens
er-edit
an e-leetren to reeerye
is e this
fRefabcrsh-r
paragr-ap
h, the
aeeeidnt
the member's
of prieic Fnembrship shall�-mob'^
e Trent earnable—eemsatien
based
dpe
a
the eua�:iaent {- ,-� �
interest. t.
TA
uLSIrate,
„ J
b. The board shall, by uniform rule, promulgate an
election form to be filled out by employees
wishing to exercise this option. The election
form shall specify the form of repayment. All
repayments must be completed within five (5)
nears of the completion of the election form.
C. To receive full credit for the membership service
permitted under this section, the member. must
have completed the repayment of all contributions
and interest.
Page 50 of 114
12111
d. If the member is separated for more than three
(3) years the member shall be eligible to combine
prior and new service for the purpose of Rule of
Seventy (70) retirement, but prior service shall
be paid at the benefit rate in effect at the time
of the first separation. If the member is
separated less than three (3) years, all service
will be combined for benefit calculation
purposes. The member shall again be an active
member of the Plan on the date employment
recommences and the member shall make regular
contributions to the Plan at the rate prescribed
by ordinance.
(e) All rights under this section must be exercised
in accordance with uniform rules adopted by the
Board.
--of-f 4::ve
of
eetive
peried years
-Hibsequent t
datze—e
---..mbei-_hi
f
e --ca ffiefab
fRembe_- shall be
ers
with
his er herpreviede
FResh�i Terviee;
of disability
previded,
t prieate--the
that in the event
yyre�efRe�
Gam, 1.�,.i]TThaving bee�'G,�I.Jll�shall
edit fer- previews
disability benefit
service
shall be
rr___�?_n
1Ze—yi,3�0,,-,
bidt hiser iCi
redueed—bye
Page 51 of 114
�2�.11
i
M
Qn
(2) Credit for continuous service as a nonmember.
(a) Any prebatienary, t-emperary—er pe3Fmanent efRpleyeem
person who is now a member of this the Plan armee
has been in eentinueus ser,v,iee sinee bii =-,—a3i
emp l eyee-faay e-1 ee t to pay baek f e r- prier eentinueus
se ry i ee-asa nenfRexber dp -t-e a fflamimufn o f feur years.
if 9,deh eleetien i-s—made, fReffimership ereditrete-lyed
fer sueh -prier eentinueus serviee-shalret be apr, ied'
teward the -ered-i-tab1e--sere e= req ireftent-€er _Yd -r__ y
v�lr
debility reti-rex,er Further, any in-liney
±rummy-su eh as weul d be required t -e reee ive aeei denta l
disdbility-benefits (flus eems-after- the --ff leti--- =f
parent empleyee eleet to payer- baek undue
e ubs ee tie rsaid payb a c shall be based upen the
member's went-eamable-eempensati-en and the „t-
eenribiiti-eniate, eHe-lading interest- who had prior
service with the City as a probationary, full -.time
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 (4)'
years of that prior nonmembership service. The
provisions of this section shall not apply to the
position of standby laborer in the Department of Solid
Waste regardless of the pay basis. 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.
Page 52 of 114
previded-€er in
this subseetien
ei- whe,
havin
(Rade the -eleetzie
within the -reqdired--
, fails to eemp1e
time -eiEee r}
as
ethe__.__-
eenside -ed ane new
retirement ---plan
riterati-en and
t e rights acrd--
bs et
fneffiber fei=-,tea,
---as -ef his er
--shall net be entitled
benefits previded
pu yeses
her
idnderthi-a
-ewe
E'te of
to any of
(2) Credit for continuous service as a nonmember.
(a) Any prebatienary, t-emperary—er pe3Fmanent efRpleyeem
person who is now a member of this the Plan armee
has been in eentinueus ser,v,iee sinee bii =-,—a3i
emp l eyee-faay e-1 ee t to pay baek f e r- prier eentinueus
se ry i ee-asa nenfRexber dp -t-e a fflamimufn o f feur years.
if 9,deh eleetien i-s—made, fReffimership ereditrete-lyed
fer sueh -prier eentinueus serviee-shalret be apr, ied'
teward the -ered-i-tab1e--sere e= req ireftent-€er _Yd -r__ y
v�lr
debility reti-rex,er Further, any in-liney
±rummy-su eh as weul d be required t -e reee ive aeei denta l
disdbility-benefits (flus eems-after- the --ff leti--- =f
parent empleyee eleet to payer- baek undue
e ubs ee tie rsaid payb a c shall be based upen the
member's went-eamable-eempensati-en and the „t-
eenribiiti-eniate, eHe-lading interest- who had prior
service with the City as a probationary, full -.time
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 (4)'
years of that prior nonmembership service. The
provisions of this section shall not apply to the
position of standby laborer in the Department of Solid
Waste regardless of the pay basis. 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.
Page 52 of 114
U
b- (b) An el eet i ear-pe.-Itedby this subs eet i e n fRu s t be
made en€erm previded by the beard. The femshall
returned to the beard within 30 days-€ellewing reeeipt
cnczco-r in e i-dEr cv--establish the erccts-6n—desTrecc–
The board shall promulgate a uniform policy for the
election and purchase of this benefit. All purchases
of credit under this section must be completed within
five (5) years of the date of election.
s—(c)
subseetiei=i may be fftade-e'eby a sing -le l tftp- sit
payffient-e r by a --series e f p e r i e die payments -- =i = , , .
- lj
p eT=edie-dedi:retiens frefR the merg=r/ 4 eeFftpensatien.
eentributiens pursuant te-this sub s eetren ffpdst he
eempleted within five-yeai=s of netifreatien to he
In the event
that a member becomes disabled in the line of duty,
contributions paid under this section shall be
refunded with .regular interest, at a uniform rate as
determined by the Board. Benefits purchased under
this section may not be used for calculating the
minimum service necessary to receive an ordinary
disability retirement.
-F3+ C-:i=ed�t:: €e:i- p:revrEu s--emp _ l m:: n t €e±=±ee:ta in , r. : F
Page 53 of 114
12111
MM
I
Page 53 of 114
12111
E
!PIZ I I
= Z . I - Z -
Page 54 of 114 12111
ROOM
Page 54 of 114 12111
C
m
-2-
�r service.
(43i Credit for mi��tar�
121
page 55 of 114
b- Any member whe -has seiFved ear-aetiv e military du}l-
se-1Gviee_ under subsle=tiern (4)a shall rcc�l�a�C
ffiefflbeiFship er{ d i t dp to a fnairciffiizifR o f f eidr years
fer the time -spent en aetive mi 1 i tart' ^erviee
the armed e €-- he United States, r r i d e
that,
-1- The aetive mi 1 i tary-eryie= was wartifRe
service as dee-cared - by -federal statute-er
e3Eeet ti:ve erd=r; and --the -atember presents to
the beard- eirehpre e f e f -=o ane- ser ee-ae
the beard, in its seleshall
determine te b , f fieient;
The -ffieffib ehas—eemp le t ed ten years e f
er editab4-« .-.-.
Page 56 of 114 12111
• 0
ra
(a) Any member of the Plan whose service with the
City is interrupted by military service shall
have all pension rights accorded veterans as.
provided by state or federal law.
(b) Any member who has served active military duty,
but whose service is not interrupted by that
military duty, may purchase up to a maximum of
four (4) years for the time spent in military
service under the conditions set forth in this
section.
(c) To be eligible for the four (4) year service
credit set forth in subsection (b), the member
must:
(1) have engaged in wartime service as declared
by state or federal statute or executive
order of the President;
2) military service under honorable conditions
(3) be vested in this Plan;
Page 57 of 114
cZ'Let-= rens—f rerA #-Ine
nemb
afFie,cint te be e6ntzibii
subseetien fRustt be
ced
paid
pursuant Y -sl 3 ccizt
to —the
i an
e--czr=s
ret=int=
system within five
the —m effiber ef the—awe
TF L,
��le ,
retrrefRentprier
years
un t—t
�e�'07L-- �eee�OF'e�
r
te— he
of netifieatien
e—b e—een
eek1et-ien
4�e
t r i b'
.7i -.b; l ; t,r
__- _ ____ - - - _ 1
of a
paybaek eleeted under
FtefRber shall be eredited---wrthh=
seov ee—e l adrRed bathe
ber3efit� snallbe—redueed—
equivalent ef the
this
unpaid
paragraph,
eche=
by the
pertien
t
__.-nary
disability
et,, l
ef the
(a) Any member of the Plan whose service with the
City is interrupted by military service shall
have all pension rights accorded veterans as.
provided by state or federal law.
(b) Any member who has served active military duty,
but whose service is not interrupted by that
military duty, may purchase up to a maximum of
four (4) years for the time spent in military
service under the conditions set forth in this
section.
(c) To be eligible for the four (4) year service
credit set forth in subsection (b), the member
must:
(1) have engaged in wartime service as declared
by state or federal statute or executive
order of the President;
2) military service under honorable conditions
(3) be vested in this Plan;
Page 57 of 114
(4) complete the election form promulgated by
the board within the time limits set forth
by the board within the time limits set
forth by uniform rule of the board;
(5) make a contribution to the Plan equal to the
member's rate of earnable compensation at
the date membership service first commenced
and that the contribution rate then in
effect, together with four ('4) percent
interest, be compounded annually.
All such payments must be completed within five
(5) years of election to participate in the
benefits of this subsection.
(d) If a member becomes disabled in the line of duty,
the member shall have the option of receiving a
return of contributions and no military service
credit or accepting a service retirement and
completing the purchase of the military service
credits by the payment of the remaining
contributions.
(e) If a member becomes disabled from causes other
than service with the City, the member shall have
the option of receiving a return of contributions
and no military service credit or completing the
purchase of the military service credits by
payment of the remaining contributions.
(-E�4) Credit for maternity/medical leave.
(a) Any No member who takes an unpaid leave of
absence for maternity or medical purposes under
the Family Medical Leave Act (FMLA),
the beard fer fReffibership ewe did—€er the tixne--ate
member was en sueh unpaid leave ef absenee up te
of absenee €er hiehffieFaber-sdrip eredit is
prepertien theree �sewe--light io=er
effered by the Gity. shall suffer a break in
membership. All unpaid leaves of absence taken
pursuant to FMLA shall be treated as continuous
Page 58 of 114
12111
service, regardless of any other limitation on
service within this Plan.
(b) A member who takes an unpaid leave of absence for
maternity or medical leave may purchase
membership credit not to exceed one hundred
eighty (180) days. If the member requests light
duty employment from the City but is denied such
employment, the amount of membership credit which
may be purchased shall increase to two hundred
forty (240) days.
(c) An Eelection to pay buyback for membership credit
under this subsection shall be
available for thirty (30) days after notification.
to the member by the board that such pay buyback
is available. The pensien -.,Rii strate board
shall en sem^ that s u eh netifi et=eT�e—mzxde
within !S day-ef a—member's return te- were, by
uniform rule, establish procedures for
notification of members.
M
} f t� � f � �
ize�z-E'uvz-e-ix—ce�—crre-� eur-a—ez�zr�Te-ir�rG "' —d=eirl e 1q.
er FRedieal pidrpeses. Gentributiens
FtefAb e r f e r s d eh fReaF�b erste—ere
series of equal installfRent payfnent-s—whieh fie
ded,deted Prem the Faembi —' c eeFapensatien.
Regardless ef the FRanner e f payfRent, any payba
of eentributiens pursuant te-- is sidbseetien ffiu&;
the feregeing qualifieatiens wav=es any and al -I
future—el-aimsthe member f ermefnbershi p e remit
fer iinpaid lea v=ane—€er maternity er ed;
(d) Contributions for this benefit shall be made in
accordance with uniform rules established by the
board, but payback of all contributions' must be
completed within one (1) year. Interest shall be
charged at a uniform rate as determined by the
Board. Contributions shall be at the member's
current rate of compensation and the current rate
of contribution. If a member fails to meet the
Page 59 of 114 ����
qualifications of this subsection, all
contributions shall be returned and the member
waives the right to membership credit for this
period.
444- i=edrtf-e±= disability =e tr±=efr en±=este±catien--e€
benefi e -i a�yte s e iF�=Ee e .
Any member,
subsequent te–
raving—bee _ restered to FReffibership
iATgbeen= refired as a ,a, _-,b, l _t,
benefieia ,FRay,upenapp-lieatien-
to the beard and
appr-e-,Falthereems=
retire fRent plan
eccrve fReFabei-ship—eredit—€er the
the afiieunt he —e is h e w eta—hcrye
eentr-iu-ted.—ets—a
retire t, a"ahieh
-- - nn = r a s shall
Fneffibr dping sueh peried e€
payments shall be—FRade—in such
be. ree eribed- by thed
(45) Restoration of service credit for prior continuous
servi ce .
Page 60 of 114 12111
0-111
Page 60 of 114 12111
I
affiei:int te. be paid . Any member with prior service
with the City whose membership in the Plan was delayed
due to administrative error, either by the board or
the member which resulted in a delay in the
commencement of membership shall purchase said prior
continuous service, without limitation. Contributions
shall be based on the rate of compensation and at the
contribution rate in effect on the date of the error.
No interest shall be charged if the error was caused
by the City or the Board. If the error is caused by
the member, a uniform rate of interest shall be
charged, as determined by the Board. The payback
shall be made in accordance with uniform rules
established by the board and payment must be completed
within five (5) years. In the event of a service -
connected disability, prior to the completion of the
buyback, the member shall be offered the opportunity
of receiving either a return of contributions paid or
the opportunity to complete the buyback through the
payment of the additional contributions. In the event
of a refund, contributions shall be refunded without
interest. In the case of a nonservice-connected
disability prior to the completion of the buyback, the
member shall be offered the opportunity of receiving
either a return of the contributions paid or the
opportunity to complete the payback through the
payment of the additional contributions or reduction
of the disability benefit until the contributions are
fully paid. In the case of a return of accumulated
contributions, said contributions shall be returned
with interest, at a uniform rate as determined by the
Board.
ems^ plc se:r-�-:ie Purchase of additional
service upon retirement. A member in service who has
continuous service may, at time of retirement,
purchase up to a maximum of three (3) whole creditable
years of service yew based upon the present value as
e* uai=j all!'- determined by the actuary for the Plan.
The purchase of the service years will be r rehase
with made by utilizing the employee's available leave
Page 61 of 114
balance at time of retirement less reduced by any
required federal withholding taxes.
the vali:ie ez the -leave balanees, empleyee5fflay
purchase the -remainder ef the three years by luFRp--su
exp l eyed ewer^- --„_ of this ep t i en , t � = r a_ ^hese value
of the -emp levee=s—leave- ba l amore e shall be transferred
by the City --t-e=the taFust- If the amount of the leave
balance is insufficient to pay the full cost of the
three (3) years, the member may make a lump sum
purchase in cash for the difference. The purchase the
three whele of these years of creditable service yew
shall be based upon the average final compensation of
the member as defined in section 40-241. The hourly
rate t-&rapplicable to the calculation of the leave
balances shall be as specified under the labor
agreement and/ei= leave paye f praetiees applicable to
the employee or, in the case of exempt employees, the
appropriate administrative policy of the City. The
pureha-se-ef serviee-years under this eptien may net be
utilized ifer serviee1ui-e---ef 64 ietiiFefnent
eligibility. This sTtb'seetien deems—net --' apply t
e
FfiefAber—represented by the �argr__=T7Tr}.
(7) Re-employment after an early retirement window.
Should any member be reemployed after leaving on an
early retirement window, no enhancement shall apply to
benefits earned during the period of re-employment.
All service retirement benefits earned during the
period of re-employment shall not apply to prior
service and shall only apply prospectively.
Sec. 40-255. Benefits.
(a) Service retirement.
Page 62 of 114 12111
0 1 0
member in service may elect to retire on a
service retirement upon the attainment of
retirement eligibility as defined in this
section. An election to retire shall be made
upon a written application, prescribed by the,,
Board. Benefits shall be effective on the date
the application is approved in accordance with
the administrative rules adopted by the Board.
( 2 ) Nermal-retirement age fer members shall beS-5
empleyee— after —attainting nermal retirement al
shall remain a member —while—an empleyeeand
during suehperied shall part -lute in the
retirement p1 -an in all respe^ts Retirement—
shall be. eempulseryas---age - 9 fer members ii -n
serviee, previded, that en reeemmendatien ef a
member's department head and appreval by the
eivil serviee beard after review —ef the--merrberL_8
his e r her duties, tie--ee ris s ien may pe r�na
member whe has attained age VC) te eentinue in
serviee- f er peri ed-s-Petr-eHees s e f twe— years —at
a—Vis A member shall be considered eligible for
a service retirement upon attaining the earliest
of the following:
a. The completion of ten (10) years of credited
service and the attainment of age fifty-five
(55) ; or,
b. Rule of 70 retirement. The completion of a
combination of years of creditable service
plus attained age equaling seventy (70)
points. To be eligible for this benefit, the
member must have completed not less than ten
(10) years of creditable service.
Page 63 of 114 12111
0
..
MINUM...
The service
retirement benefit for persons retiring after
October 1, 1998, shall be equal to three percent
(3.0%) of the member's average final compensation
multiplied by the number of years of creditable
service, which amount shall be paid yearly in
monthly installments for the life of the member.
The benefit paid shall be the benefit in effect
on the date of separation.
(4) AftefFdber ins;Tvree—whe is entitzled to r-eee-ive
theeretrrefR^ta l l ewane�e--set ferth in paragraph
(-3)—ef this —subs-ee-tshalleals e—b e—entitle"rt-
eleet ene-ef LIS-tel1ewing three l -nJ_vity
supplements p rev i ded—ate—ewe—qualifies —asst-
fe bele Any member eligible for a service
retirement may choose any of the optional
allowances provided in Section 40-255(i).
Page 64 of 114
�— Any eligible FRemb =r ins_ rv± ee--MalI
Page 65 of 114 12111
HOME`
-01
�— Any eligible FRemb =r ins_ rv± ee--MalI
Page 65 of 114 12111
i:f the number ef
r,
years e f s eroiee— needed t o tetal--T9
when added to the FRefber' s age is lees
than 7n, that =ccb
a Y 6 year -5 ef
serviee shall be the ffta3Ed':fRdFR years ef
servie? number used in the fermula to
per year b e n'1eT2't
psi
<iTi7!i►!J!i!�'T`R7�f/in+i7Titt•7�i�T7T��
♦
•
♦
•
Oil 1,1111
■
■
Page 66 of 114 12111
0
0
Members in s T��=whe—are--fRemb ers e - e
Members in sc rviee—wh e—arm--members e f the
464- A ffie ffiber--eligible f e r s e r,o, eet i r ement Fftay
etre e eey--r ene—e f the—epee n a , , l � ane e
a -u -a tsa b l e t o him -e r her en the date 'ace -e -f
eatenaap revi-de d in subseetien (1) .
Page 67 of 114 12111
-- - -- o-- -- M-1 - R
Page 67 of 114 12111
Page 68 of 114 12111
Millill
OWN
Iwo Will
Page 68 of 114 12111
�—BfRpleyee—e�Eeeidtee a=i- r evems l e—e-1 e e t i ente
retie -pen attainment o f the—rix l e—e f-64 ;
ead
3— That the i,rreveeable—e-leetren te=retire- be
Page 69 of 114
E
n
U
4-3+ womb er e3lgib l e f eL- rule ef 75 :eetirefRent , rit l e
etreese—any ef the—eptienal—alley" anees cry ai4able
t e—hi:FR —e r-- her en the —date —e f re t i i-ement- , a&
previded in subtree (I)—ef this seetien.
(eb) Early service retirement.
(1) Any member who has twenty (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 nermal resefRert= age
fifty-five (55). Such election shall be made
upon a written application prescribed by -t-e the
Board_ setting ferth—net l-ees than ten days
nel= mere than 99 d6ys subsequent te the
e3Eee en and ilinf t =eree, the date the
member desires 'tee -tee retired. Benefits shall
be effective on the date the application is
Page 70 of 114
Iz-
4-3+ womb er e3lgib l e f eL- rule ef 75 :eetirefRent , rit l e
etreese—any ef the—eptienal—alley" anees cry ai4able
t e—hi:FR —e r-- her en the —date —e f re t i i-ement- , a&
previded in subtree (I)—ef this seetien.
(eb) Early service retirement.
(1) Any member who has twenty (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 nermal resefRert= age
fifty-five (55). Such election shall be made
upon a written application prescribed by -t-e the
Board_ setting ferth—net l-ees than ten days
nel= mere than 99 d6ys subsequent te the
e3Eee en and ilinf t =eree, the date the
member desires 'tee -tee retired. Benefits shall
be effective on the date the application is
Page 70 of 114
approved in accordance with the administrative
rules adopted by the Board.
(2) A member eligible for early service retirement
may choose any of the optional allowances
available t e him er her e1q #Iqpdate —e f
retirement, as provided for in subse�ren (1) .
Section 40-255(i) of this Plan.
(dc) Vested right to retirement.
(1) If a member who is not entitled to retire on
either a service retirement or early service
retirement, ceases to be an employee for any
reason other than death or willful misconduct,
in effiee, he er she the member may elect to
continue as a member not in service and retire
upon the subsequent attainment of nem=
retirefRent age fifty-five (55), provided:
a. That at the time when the member ceased to
be an employee, the member hand completed
ten (10) years of creditable service; and
r --
b. That the member deer had not withdrawn his
or her accumulated contributions.
c. The retirement benefit shall be the same as
a service retirement benefit.
Page 71 of 114 12111
(42) 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 an employee, e)Eeluding all affteun-ts
p i eked u - frefft the FRemb =r's earnabl
and eredited to the GG4�,A fund, plus en3-j- regular
interest as has been a-ee�ifRtla-ted-didrinthe first
three years thereafter.
(4-3) If a member not in service dies prior to
retirement, his or her designated beneficiary
shall be paid the amount of his or her
accumulated contributions at the time he-epi=e
the member ceased to be an employee, _xe dd n
a l l amo�int-;e-pied , ed -u. -p -rem -tire- FReffibe is e am ab le
eempensatien and eicedited te-the GGLA fund, plus
regular interest thereen to the date of the
member's death.
(-F3-4) If a persen member elects a vested right to
retirement under any
spenser-ed by t City retirement program and
thereafter again becomes an employee more than
three (3) years after separation, he-er the
member shall beeeme—a new ffieFaberef'e
retirefRent plan en the date eFapleyFflent-
-r-eeemme pees and shall fRadc r, , , r eentribdtiens
te the retcii=efftent plan at the ral��e required by
Page 72 of 114
12111
I MIN
I ME ROOM
(42) 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 an employee, e)Eeluding all affteun-ts
p i eked u - frefft the FRemb =r's earnabl
and eredited to the GG4�,A fund, plus en3-j- regular
interest as has been a-ee�ifRtla-ted-didrinthe first
three years thereafter.
(4-3) If a member not in service dies prior to
retirement, his or her designated beneficiary
shall be paid the amount of his or her
accumulated contributions at the time he-epi=e
the member ceased to be an employee, _xe dd n
a l l amo�int-;e-pied , ed -u. -p -rem -tire- FReffibe is e am ab le
eempensatien and eicedited te-the GGLA fund, plus
regular interest thereen to the date of the
member's death.
(-F3-4) If a persen member elects a vested right to
retirement under any
spenser-ed by t City retirement program and
thereafter again becomes an employee more than
three (3) years after separation, he-er the
member shall beeeme—a new ffieFaberef'e
retirefRent plan en the date eFapleyFflent-
-r-eeemme pees and shall fRadc r, , , r eentribdtiens
te the retcii=efftent plan at the ral��e required by
Page 72 of 114
12111
0
seetien 40 246 (aT be eligible to combine prior
and new service for the purpose of Rule of
Seventy (70) retirement, but prior service shall
be paid at the benefit rate in effect when vested
rights were elected. If the member is separated
for less than three (3) years, all service will
be combined for benefit calculation purposes. The
member shall again be an active member of the
Plan on the date employment re -commences and the
member shall make regular contributions to the
Plan at the rate prescribed by ordinance. Such
member shall be entitled to r eeive -a accrue
retirement benefits therefer as if he er she the
member were a new entrant upon the date of
subsequent employment, a-nd except as the right to
combine service as set forth in this paragraph
and, in addition, shall be entitled to receive a
retirement benefit for his or her prior
employment in aeeerdaneewi as provided in this
paragraph (d) (2)--abeve . A second period of
vesting shall not be required and the member
shall be eligible for all rights available to
vested employees. This provision shall also be
applied to reemployed retired members, who have
been retired for more than three (3) years.
(5) A member may choose any of the Optional
allowances provided for in Section` 40-255(i) of
this Plan at the time the vested retirement
allowance commences.
4e-� (d) Ordinary disability retirement.
,��Any ne mb= r
Mere --ears
whe—isnet
retireffient
in s e a=.-± e e—'vdh
ef ereditab
eligible
allewanee Faa
ehas-weir-ems
l e s e r vi e e but
€er a --9=r.— ee
,
applieatr^,oretred
an erdi nary
disability
by the beard e
-etireffient-
all-ewanee,
retained—b�.e-
emaRinatTen
eertify that
physieal1_y
the further
a -r e s ulz eZ
perfermanee
previded-,-- that
beard
of Sdeh
slueh Fnefaber
€etally ineapae'rtated
perfermanee
an aeeident
ef duty
the physieian
fter a merge a l
FR bei- shall
is FRentally=er
fer
ef duty net as
t L. CTS
in
as defined—i n
Page 73 of 114
such aneapaGit ±8 likely to be
b e retired.
,
sem, �rrcc-7
.
retirement be€ere Gelc-ebeL= 4, 1991,
€er erdinary disability, af _,,,,be_
5rh a l l be entitled t e- r ee e-iy e -a
retirement alrewanee
percent ef 90 pereent of the—x}efHbei==s
average final eempensatien ---=, t=i , a
by S=ara ef er-editable sei=v ; e , .,h„ e.h
ame, nt shall be pard yearly in11.
installments, pre=�-d:ded -side r=re'E lr fRent
al lewanee—ems ere^tef the
member 1 s average final eemrensat =,a -
et ti Teti'rement allewanee equal
te—twe—pereent ef 9G pereent of the
faefRb ems a=o=e rag e=ra l eemp ens a t i en ,
pleder—the —number ef years ..,h; e
erre-ii�e ei 9s{1'vL ee to eentinue- until
attainfRent-ef the fiReiib Yea nerfRal
retirement a'g„e, previded further that
the
shall net e3Eeeed 39 percent of the
tftefffibems average final eeffipens=ti___.
Page 74 of 114
12111
a:�tainment= of 'gym bek' E3—rreicffial
r�rrefRent age, provided further that
the
i,t
the resulting retirement allewanee
shall net emeeed 39 Pereent of the
mefaber's vera nal eefRp ns- t-
-r �-
disability retireF "'c nt azlewanee shall net -
be eligibl
et-
be—elrgibl e f e r .a re ti:rrn o f eentributiena
e—gre�Lrde sbseetien 4) ,—nem€ems
ep allewane_s as —previded ±n
subschien (1) .
(1) Any vested member of the Plan who
becomes permanently and totally
incapacitated for further performance
of duty with the City from a cause
other than the performance of duty
shall be eligible for an ordinary
disabilitv retirement.
(2)
A member shall be deemed disabled for
the purposes of this section if they
are permanently and totally unable to
engage in any useful and efficient
Page 75 of 114
•
0111
•
disability retireF "'c nt azlewanee shall net -
be eligibl
et-
be—elrgibl e f e r .a re ti:rrn o f eentributiena
e—gre�Lrde sbseetien 4) ,—nem€ems
ep allewane_s as —previded ±n
subschien (1) .
(1) Any vested member of the Plan who
becomes permanently and totally
incapacitated for further performance
of duty with the City from a cause
other than the performance of duty
shall be eligible for an ordinary
disabilitv retirement.
(2)
A member shall be deemed disabled for
the purposes of this section if they
are permanently and totally unable to
engage in any useful and efficient
Page 75 of 114
service within the City workforce due
to a physical or mental impairment.
(3) No member may receive an ordinary
disability retirement on the basis of a
pre-existing medical condition, unless
the disability would have occurred
regardless of that pre-existing
condition. The Board, as part of the
disability review process, shall
determine whether a vacant position
exists within the City's workforce,
consistent with the member's training,
skill and medical limitations. If the
member is capable of performing any
such vacant position and the member
refuses the assignment, that refusal
shall be grounds for denial of an
ordinary disability retirement.
Nothing in this section shall require
the City to create a job where none
presently exists or to accept an
employee who lacks the training or
skills necessary to perform any such
vacant position.
(4) Benefits under this section shall
commence. on the date disability is
determined to exist by the Board and
shall continue for the life of the
member. Benefits shall be paid monthly
and the member shall not be eligible
for a return of accumulated
contributions or for any survivorship
or other payment option provided under
this Plan.
(5) The procedure for determining
disability shall be as set forth in
this Plan for the determination of
service -incurred disability.
(6) The Board of Trustees shall have the
continuing right to require disabled
members to submit to a medical
examination when the Board has reason
Page 76 of 114
0 0
(-fe )
to believe that the disabled member is
committing a fraud on the Fund.
(7) Benefits payable under this section
shall be the greater of ninety percent
(90%) of the 'product of three percent
(3%) multiplied by the number of years
of credited service; or thirty percent
(30%) of the member's average final
compensation.
(8) Upon f inding that a member is no longer
disabled as defined in this Plan,
ordinary disability benefits shall
cease, and the member shall be eligible
for a regular service retirement as if
he had retired on the date his
disability retirement benefits
commenced.
Aeeident;al e -_Service-incurred disability
retirement.
a. S, ..i-, ineapaGity fer
tem, -p erffidnr, ,., +
duty
and
has been
b. The hysleian
beard, after __ fRedieal—e-3Eam4:n�ien
retained�-
the
o f sdeh fRefRber,
writing that
fRentally e r— y s i
pertf}an ntly ineapaeitatedfla=
shall eertify
�
�nemdber
ca l l y totally
In
ia
acrd
further _= f erfRanee—ef
___ _ iee—ef the
with the —definitz
dIdtyin
e n
th-e
aeeer te=
e fte
Page 77 of 114 . 12111
e . The beard shall l e-e-neur with the
r-epert of the py ie-ia„ retai
by the beai=d; and
el The physd:eal
mem =r shall
review by
by the beard,
eenditien e f- the
to —a
the physieian retai
at the request -&f
the beard,
a Lrrall de it
a ^s e fze�al,---T.s t he e r�
advisable.
to—reeeive-a
goo iel' shall
be
equal —te-6f-2/�3
pensien
pereent e the—fnefHbems
aver -age final
♦- ezf
pereen�
eeffigen s a t s en e r
the fnb-. e r r s
�
66 2/3
f iq--, l
eempensatien,
hiehever iear^tom
net e eligible €erg--ret:urn e f-
eentrib�rtiens—as—prevrded in subseetien
pre-�Frded in semseetien l
Page 78 of 114
12111_
• - 0
paragraph (1) ef this sub s eet i en, whien
shall bepresuffted t e-bra-oxe been e d
in the line-ef duty, idniessa rhysi-= l
revealed thatte�ieh eenditien eiEisted at
that tAfRe, may be retired by - the -mear-d
fix' :-^--vL� =ineurred disability;
_ lr
prevrded, that thephysielar et, ea
by the bea rd after a FRe rieal
e, fytea- Slueh FReffiber is tet_ l l lr
neapaeitated—€er furtherr e rf=r a^--
ef dldty ±H aeeer-d'anee with the
dzinrrt-i e n ef lltezineapac-= t, r f e_
-
d}kty" as defined in this subseetien.
a.Upen retirefRent er=erviee-
i-eu urred—disability,
s'�nom- be--ent-it ee to reeeivtea
i� et eFRen t—a«ewan e e -eta -1 t e-- e
gereent e reeof the
mem aver -age final
eefftpensatien, fRidltiplied by years
of eredi-tabl sei=o ee . r-" = -e -'-'
sueh retirerftent aliewanee--exeee - -
4 0 p eree nt o f the f text er's aq�e
final eefftpe nsatiez ; etherwise,a
retirefRent-zaiiewanee -eg-u to-tom;e
pereent ef 99 pereent ef the
LLL.L ber1 s average f ; r, l
e empensati en , multiplied by t
rut _r e f years—whreh weird d- be
LL—Lbers Stir-yd:ee--te eerbinue _= }d:
the t +� r-r-a--r-r Ri + f nerfaal
retirement --age, pre -,p4 de d—fitrt he=
-that -the resulting firemen
erreTooTane_ shall net eEeeed 4-4
pe r een t—e f the fneffibems
final eeffipensatien.
b- A member entitled t e---rem-a
s envie= in eurre`a re t i rement-
a3lewanee shall net be eaibl
fer-a- return of eentributiens as
previ]
Page 79 of 114
(1) A member shall be disabled under the
terms of this section if the member has
suffered an injury or illness arising
out of, performance of service for the
City and which renders the member
permanently and totally disabled for
useful and efficient service with the
City.
(2) A member shall be deemed permanentl
and totally disabled when he or she is
totally unable to engage in any useful
and efficient service within the City
due to a physical or mental impairment
which is the natural and proximate
Page 80 of 114 12111
result of an accident, injury or
illness which occurred while in the
actual performance of duty; provided,
however, that said accident was without
gross negligence on the part of the
member.
(3) A member shall be eligible for a
service -incurred disability retirement
from the date of entry into the Plan.
Application for disability retirement
shall be made on a form prescribed by
the Board of Trustees. The member
shall execute such medical releases as
are necessary to permit the board to
review the medical records needed to
determine the question of disability
and to discuss said records at a public
meeting. Upon receipt of an
application for a disability, the Board
shall refer the application to its
physician for review. The applicant
for a disability shall be required to
submit to such medical examinations as
the Board appointed physician shall
deem necessary. The board appointed
physician, and any referring
specialists, shall report, their
findings to the board. The report
shall include a determination, to the
extent reasonably possible, of the
origin of the disability, whether the
disability is permanent and whether the
disability is total. In making those
determinations, the physician(s) shall
be bound by the definition of
disability set forth in this Plan.
(4) Upon receipt of the report of the
Board's physician(s), the Board of
Trustees shall schedule a public
hearing at which time the board shall
review all, medical reports, together
with such documentary evidence as the
applicant may wish to submit. The
board shall conduct a preliminary
determination as to whether the member
Page 81 of 114
0 0
is permanently and totally disabled
based upon the written documentation
presented. If the Board does not grant
the application based on the written
documentation, it shall inform the
applicant in writing of the reasons for
the denial of the application. The
member may, within thirty (30) days of
receipt of the board's preliminary
denial, request a full evidentiary
hearing before the board. Said hearing
will be conducted consistent with the
principles of due process and the rules
of evidence generally applicable to
administrative proceedings shall apply.
The board shall have the power to issue
subpoenas compelling the attendance of
witnesses. At said hearing, the
applicant may present such oral and
written evidence as the applicant deems
necessary to establish its burden of
proof. The board may appoint special
counsel as an advocate to cross-examine
witnesses and to offer argument in
opposition to the application. The
attorney for the board shall not serve
both as advocate and as advisor to the
board in the same proceeding. The
applicant and the board shall have the
right to examine and cross-examine all
witnesses. The decision of the board
shall be based solely upon the evidence
presented and the law applicable to
this Plan. Following the conclusion of
the hearing, the board shall render an
opinion in writing setting forth the
reasons for the grant or denial of the
benefit
(5) The board may prescribe rules of
procedure to implement the provisions
of this Plan relating to the conduct of
disability hearings.
(6) No applicant for a service -incurred
disability retirement may receive
benefits under this section if the
Page 82 of 114
1�1�
accident, injury or illness is shown to
have occurred due to the gross
negligence on the part of the member.
The term "gross negligence" shall be
defined as willful, wanton or malicious
conduct on the part of the member
demonstrating a total disregard for
human life, safetv and property.
(7) Except for disabilities arising from
the causes outlined in subsection (11),
a member who is granted a service -
incurred disability retirement shall
receive a benefit equal to sixty-six
and two-thirds (66-2/3) percent of the
member's average final compensation or
sixty-six and two-thirds- (66-2/3) of
the member's compensation in the year
immediately preceding the member's
disability, whichever is greater. The
benefit shall be paid yearly, in
monthly installments, for the life of
the member. Members receiving a
benefit under this section shall not be
eligible for a return of contribution
nor for optional allowances provided in
this Plan under Section 40-[ ].
(8) Upon the death of a member in receipt
of benefits under this section, the
spouse of the member shall receive
payment of an amount equal to forty
percent (40%) of the member's monthly
retirement allowance during the
lifetime of the spouse.
(9) The Board of Trustees shall have the
continuing right to require disabled
members to submit to a medical
examination when the Board has reason
to believe that the disabled member is
no longer entitled to receive benefits
from the Fund. If the examination
reveals the member is no longer
entitled to receive disability
benefits, the benefits shall cease and,
if vested, the member will be eligible
Page 83 of 114
12.11
for a regular service retirement as if
he had retired on the date his
disability retirement benefits
commenced. The Board has discretion to
exercise this power as the
circumstances warrant.
(10) Any benefits received from this Plan
shall be reduced by the amount of
workers' compensation indemnity
benefits received by the member to the
extent that the sum of the worker's
compensation benefits and the benefits
received under this Plan exceeds the
average monthly compensation of the
member at the time of disability. The
board shall, by uniform rule, prescribe
a procedure for treatment of lump sum
workers' compensation indemnity
payments as if they had been received
on a monthly basis.
(11) Any member who becomes totally and
permanently incapacitated for duty as a
result of heart disease, hypertension
or tuberculosis, shall be presumed to
have been injured in the line of duty,
unless a physical examination upon
entering the plan revealed that such
condition existed at that time or
competent substantial evidence
determines that the injury is not the
result of a workplace injury. Such
person may be eligible for a service -
incurred disability provided that a
physician retained by the board, after
a medical examination of such member,
certifies that such member is totally
incapacitated for duty. Such person
shall receive benefits equal to those
paid for an ordinary disability, with a
minimum benefit of forty percent ( 40%)
of average final compensation.
Page 84 of 114 12111
(�f) Ordinary death benefit; post-retirement
death benefits.
(1) Upon= = = }i the beard ef prepe-r
p reef 9 e the death e f -a fReFftb erg
ereditable servie , whieh death net
the -result efanaeeident in- the -a:_a_
perferxRane -ef ditty as defined in
sub s e c t rem -e f tz h i s s eetien, there
shall be- paid -to-sueh per -se ,
as the faexbems-ehall -Sa=o=e neffiinatedb--
written
yw-ritten des i gnat i est --duly ye3Eeeuted--and
filed with the beard, etherwis to the
meffiber-I s legal representat i
i
death. If a member in service who has
completed three (3) or more years of
creditable service, whether or not the
member is eligible for normal or early
retirement, dies from a nonduty related
cause, a lump sum benefit equal to
fifty percent (50%)* of the member's
earnable compensation for the year
immediately preceding death shall be
paid, together with the return of the
member's. accumulated contributions plus
interest. If the member has completed
less than three (3) years of credited
service at the time of death, there
shall be a return of contributions with
interest only. The benefit shall be
paid to any person nominated in writing
by the member. In the absence of a
written nomination, or if the person
nominated is deceased or cannot
otherwise be located, the member's
estate shall be deemed the nominated
beneficia
} Net o i t hs t anding any -p reds -i e r in this
dioisen to tete eentrary, in the event
a fftefab e r- whe has b eeefRe-eligible fer
serviee, er rule ef 7S retitireFfte t e -r -
Page 85 of 114 12111
rile of 79retrr-ement benefits but has
net retired di -es, the meZ;—leer Shall be
eensidered #-�e�y—�ve been retired en the
dame—e —death. in sueh event, the
fieffib ems sp euse shall have the— even
e f _ _ ,--e-o-,-r, g t h .�, .
c
' it—ef zr�—ci2emb�eT-
a eeumu-1 ated eentz-i burens—t eg e t he r with
interest frefR the date ef the—Frember's
death t e --t he—date—e fient--er, if net
eHereis ng sueh eptien, the speuse
shall re
members' FRenthly retirefRent an
aillepwainfee—whieczar--we:ald- have be2fi
payable te--thefReffbber if he—er 9
hadattainedneral retTi-eme
age, sard a-1 i ewane eb-ng payable
va':recrae-c-crai-l-al rcccucti-en fez
the differenein r_?_g= sheicild-suz�z
d i f f- ren e e—e3rtr
b. PayfRent—ef a—retrrement allewanee
equal tee erre--mereent of av
^J-
o f s e i -v i ee—e r f i= a t i ei{ h e i=-cez
that sueh i eFab : r s ryi-ved as Gity
fRanage-r, assistant City manage -3F
ity eler :, assistant City eler�—,
eHeeidtive s ee re t -a ry o f the
beard, -1T r --Ir-
City atterney, assistant d , e t
enthe —d egai-tfRe n t o f law er as
d i r e et e r e r assistant diccez—e-f
a—department established b'y—tire
Gharter of the amity er---��
erdinanee—as autherized by si
Ghartzer, p e;uFided that the—fn«ibe
hall have served in any of sueh
e apae i t ies €erase }ter—eemb into
peer=ie d—e f net less han thre-e
years prie te May
s bjeet, heweve-r; ems—pic�pes-es e -
this paragraph, t e--a---ffla3—ef
t -en years' se rvi ee ;
Page 86 of 114 12111
e--Payffient of a retireffient allewanee
equal te—an additiena3 ten peree
e f the —FReffLb = rte a�rag ^tee=
eexFipat. i -en d:fz sueh Fneffib
Piave—qualified fei sueh additienal
benefit as set ferth in subseeti
subseetiens--Fg\gip d (g) (2--)-e
to eentinue enly fer-- se l e ng ate
I�he dui -"F± ±ngspeuse refRains
.7
A member in service who is
eligible for any form of early or
normal retirement under the terms of
this Plan dies prior to retirement from
a nonduty related cause, the member
shall be treated as if he or she had
retired on the date preceding death.
The member's spouse shall have the
option to receive:
(a) Forty percent (40%) of the
member's monthly retirement
allowance which would have been
payable at normal retirement date,
without actuarial reduction
together with fifty percent (50%)
of the member's compensation in
the year immediately preceding the
member's death; and
(b) In the event the monthly
retirement allowance provided for
in sub -paragraph (a) above is
chosen, and the member has served
as City manager, assistant City
manager, City clerk, assistant
City clerk, executive secretary of
the civil service board, City
physician, City attorney,
assistant director of the law
department, or as director or
assistant director of any
department or office established
by the City Charter, or by
ordinance established by the Citv
Page 87 of 114 12111-
Charter, for a combined period of
at least three (3) years prior to
May 23, 1985, an additional one
percent (1%) of the member's final
average final compensation
multiplied by the number of years
of service in that position, up to
a maximum of ten (10) years shall
be paid to the surviving spouse.
C. A return of the member's
accumulated contributions, with
accumulated interest together with
fifty percent (50%) of the
member's compensation in the year
immediately preceding the member's
death. This benefit is payable on
behalf of any member, whether or
not there is a surviving spouse.
In the absence of a surviving
spouse, the benefit will be paid
to the person designated in
writing to the Board by the
member, or if no such designation
exists or the designated
beneficiary has predeceased the
member, then the benefit will be
payable to the member's estate.;
or, in the case of a surviving
spouse
The payments under subsections (a)
and (b) shall be paid yearly in monthly
installments.
4-2- If a retired member dies prior to
having i=eeeived receiving twelve (12)
monthly retirement aliewanee—payments
and prior to the effective date of any
optional allowance eleeted b �hc
fnezrbeT---shaving beeefRe--ef f eet i v e ,
permitted by this Plan, there shall be
paid —t eiaeh p ems era , if any, t
, uric
m,eR—b.er shall have neminated by wLitteTi
designatien —eHee:ated---ai4d filed
With the beard,—ewerwise to the
member's legal repre sent at ive , a -1 uFftp
Page 88 of 114
• 0
ettm- benefit equal to th the ef the 12-
Rtent�ly retirement allewanee payments
t 1-, the , l ,a t 7-. e
�e�o o'�rcT�cTr�tiie� e = TdoLeurcr—e-crrcrwi-s-e
have—bee ewe—entitledless the
the FRember r—eei-,=ed_ a benefit payable
in a lump sum equal to the unpaid
difference of twelve (12) monthly
navments. This benefit may be paid to
any person nominated in writing by the
member. In the absence of a nomination,
or if the person nominated has died or
is otherwise unavailable, the member's
estate shall be deemed the nominated.
beneficiarv.
(hg) Aeeident.tService-incurred death benefit. 3-f—I
Page 89 of 114
WE
Page 89 of 114
be paid -to the ember's—le�fariFe =esentatiye. If
a member in service dies from a cause arising in
the line of duty, other than the gross negligence
of the member, there shall be a service -incurred
death benefit equal to one-half (M) of the
member's average final compensation, which shall
be paid yearly in monthly installments, together
with the member's accumulated contributions plus
interest, which shall be payable in a single sum.
This benefit shall only be paid to the following
persons in the order set forth below:
(1) To the spouse of the member until the death
of the spouse;
(2) If there is no spouse or if the spouse dies
before the youngest child of the deceased
member has attained the age of eighteen
(18), then to the children of the member
under the age of eighteen (18) in equal
shares. As each child reaches the age of
eighteen (18), the shares of the remaining
children shall be adjusted accordingly;
(3) If there are no spouse or children under the
age of eighteen (18) years living at the
time of the member's death, then payment may
be made to the dependent father or dependent
mother for life. The board shall determine,
by uniform rule, proof necessary to
establish dependency. If both the dependent
father and mother are living, the benefit
shall be shared equally. Upon the death of
one, the living dependent parent shall
receive the entire benefit. If there is no
spouse, dependent child or dependent parent
living at the time of the member's death,
the member's estate shall receive an amount
equal to fifty percent (50%) of the member's
compensation for the year immediately
preceding the member's death, together with
a return of accumulated contributions plus
interest.
Page 90 of 114
121,11
(4-h) Return of contributions. Gheuld-amember eease deb_
an efag-ley =; the mefRbei- shall be paid en deman�
the -sum-ef his ewe r aeeumulated eentribiatiens,
with the f -el i ,-...ter J exeep lens
(1) If a member ceases to be an employee, a
member may demand a return of accumulated
contributions. Receipt of said
contributions shall constitute a full
discharge of all rights under the Plan and
any creditable service is waived.
(2) in event of tzhe-death -e ,
a-eeufRulated-eentributiens unless a-Re#+ber
died In servie^ in sueh even::, the
aeeuffiulated eentribdtiens shall bepayable
te-s u e h pew en , if any, as -the fReffibe-ehal=
have nemd:natc-edby written des igfratien duly
exeeuted- and -filed with the beard, e-therw se
te-th.-efRemberI s legal representative. The
Leturn of aeeun+ulated eentributiens
any s en te-air-e rd inary-de , } I be er e f i
an aeeidental death benefit as he-rei-nbeve
set ferth. If a member has been granted a
retirement benefit, the member shall not be
eligible to receive accumulated
contributions unless provided for as an
optional allowance under the terms of this
Plan or any other prior Plan of the City.
Page 91 of 114 12 111.
etheL-wise lifftsa d-is,.rrbuteels
eieetien r d . this , rtielea
distributee may eieezat- he time and
i., t i, e mane=—pre eery --the -plan
administrateert-ien e€
an -eligible -relieve -_r distributien-aid
.dire y to an eligible retirement plan
speeified by the distributee i -a
relleverr
b-. Definitiens.
ee t rt�ev: ra ,��ea�a
er ferfRer-'emsleyee. in a .a; t;
the --em l eyeel s --ems e rf e r
emp l eyee , s o o ngspeidse is -a
distributee with regai- }e tie
interest ef- the -speuse .
-3- Eligible r-eti:rement 131 an shall
FRean an individual retirement
Page 92 of 114 12111
0 0
,a; t
shall nee-�a�r��r;butrenr-e
er any pertien of t� e b,lanee—tea
the—eredid—ef the ,aistrib ee
e3Eeept that an eligible=.=ellever
.dit but i ende _s net ine l ude-:--awry
dist-ri b u tie=r—that--z s erre—e f—a
Ten--e€—disability benefits,- ±=ewren e�
M 0,11
Ten--e€—disability benefits,- ±=ewren e�
Page 93 of 114
12111
. .
NMNIIII
Page 93 of 114
12111
9 •
WAMV
SLI
i
ineapae±tated-but is net restored—te-
£ffe berbeeause—ef his e '�== ewn
sery1eye
Terms
-as-a
—tee
a eeeptefiip l eyfRelm—e f f e r ed i n a eeerd
a n ee w
d: err—}cnc
retir-effT^c rr allewanee—Shall be t::erfrinated,
ems--sire—shall have the right te
eleekwhateve-r-
and he
0411 wil
Ml
SLI
Page 94 of 114
i
ineapae±tated-but is net restored—te-
£ffe berbeeause—ef his e '�== ewn
sery1eye
Terms
-as-a
—tee
a eeeptefiip l eyfRelm—e f f e r ed i n a eeerd
a n ee w
d: err—}cnc
retir-effT^c rr allewanee—Shall be t::erfrinated,
ems--sire—shall have the right te
eleekwhateve-r-
and he
Page 94 of 114
4k+ Remteratien e€ benefi --a±=iea tc -- -,,be± H,
(-ih) Optional allowances.
(1) Any Ffi effib er Faay—el ee t t e— r eee-i ve in gree—e f t h e
-etireffient allewanee—etherwise payable to h; m e -r-
her, the—aetuazial equivalent at hat—tiffie e
Page 95 of 114
ems--- her retireffient allewane= in a reddeed
-retirement allewanee payable-a€ellews,
at ne eleetien of an -ept enrallewanee-shall-
be ef
hal_be-ef € e e t iso== in ease a- b ene f i e-rary dies withii-9.
tear -days ---after the el ee t i e n o f an ep t i e _n_ }s
pre-oFd:ded—pis seetien, and —further -gievidea
t h atst:ir -b en ef-re-i ary -shall bc ee n s i dere d as a
member in s e ry i eettht ifne of death, untl the
first payment en--a-eeednt of anybenefit b
1
nermally dixe-r A member may receive payment of
retirement benefits under the Plan in accordance
with the options set forth in this section. The
Board, by rule, shall prescribe the method for
selecting payment options consistent with the
provisions of this Section.
(2) The options permitted under the Plan are:
Option 1: if tlae fReFab er dies befere
reeeiving in payfRent of he -R,ember's retire ne
allewanee, heoalide-e f his er her ulated
ee b;atiens at the �}xfire—ef retireffien.-t, he
beianee shall be paid te strehpers eT , if any, a ss
theFRefRber shall have g wed by written
desi�fnatien didly—e3Eeeted- and --file with hes
beard, etherwise---te the TMeffibr r' s serol
representative; er Equal payment survivor
annuity. A member may receive a reduced
retirement allowance throughout his or her life
with an equal sum being paid to the member's
designated beneficiary at the death of the
member. If this option is chosen for a surviving
spouse, the reduction shall be ten percent (10%)
of the member's benefit. If any person other
than a surviving spouse is chosen as the
beneficiary, the reduction shall be based on the
actuarially euuivalent sum.
Option 2: U3enthe -fRemb r' s death, , his e -r
her redueed reelcirement allewanee shall- be
written designatien duly eiEeeuted and filed with
the beardathe time-ef re; i refRent; -er One-half
payment survivor option. A member may receive a
reduced retirement allowance payable for the life
of the member with one-half of the member's
Page 96 of 114 12111
benefit being paid to a designated beneficiary at
the death of the member. If this option is
chosen for a surviving spouse, the reduction
shall be two percent (2%) of the member's
benefit. If any person other than a surviving
spouse is chosen as the beneficiary, the
reduction shall be based on the actuarially
equivalent sum.
Option 3: ,
9 er her reu$eretirement anew;.:
ntinued threidgheut the -life ef, ar
the at the time-ef i=e:�iefaen}ter Return of
contributions and reduced pension. A member may,
in lieu of any other benefit from this Plan,
receive a return of contributions, excluding
amounts picked up from the member's earnable
compensation and credited to the COLA fund
between June 23, 1985 and September 30, 1993.
Under this option, the member shall also receive
a monthly service allowance equal to one-half (%)
of the amount to which the member would have been
entitled under this Plan. This option has no
survivorship benefit.
Option 4: Upen the ember's death, se
benefit —shall m be payable; p-=-e3Lrd2cc— that -cr
benefit shall be--appreved by the beard; Life
annuity. A member may receive the normal monthly
service retirement allowance plus an additional
five (5) percent payable for the life of the
member, with no survivorship benefit. The
payment of this benefit shall be guaranteed for
at least one (1) year.
Option 5: if-, as a resialt of an aeeide tal
injiary Burred in 1. -he -Sine—ef dat , the ffiefaber
shall leo=e- been se ser i edel� ,a that t �
1 -�'--J '� V C.�TiLtl-Iie e'r
she is unable t o eirzee u to—acrd- fie -a d e s i g n a t i &n
of an eptrenal allewanee, the beard ay, with th-e
Page 97 of 114
2111
• 0
eensent of the pi-ineipal—benefieiary; designate
an ept-ien, and if sueh eendit-ren shall have
delayed the applAeatien fer retii=efRent and the
sC11'ee'Cre'n ef an ee „TTthe beard may waive
requirefRent as to the mem er's li=e—€erten
after retirement—date, and FRay deelare--gin
errenal allewanee —Yre� ea�31. _ f f _„t , - -
if►me d i a the FReffibe rte— retirement; r
Surviving spouse annuity. A member may receive
an unreduced retirement payment through the life
of the member and upon the member's death the
surviving spouse shall receive forty percent
(40%) of the member's retirement allowance
payable during the lifetime of the spouse. A
member who desires to leave a greater
survivorship percentage to a surviving spouse may
elect Options 1 or 2.
b— due h fflemb er fflaye l e e t t o reeeioLehis e r
nerfRal me n t h 1 y—s e v i e e—r-e t reme nt a l l urea
p3�is an —a dditi enlTuve— pe r e ent--ern
sery iee retirement- alle;o"oxanee; ei'
Page 98 of 114
the tifae of r-etirefRent, sueh benefit te—be
ppbl e,si=r J the l-; €etixae ef si:reh s e.
has nefRinated
ire- trffle ef
and deeig'nehis
his ei= heiretirefrent
ei= her-
as the
epe e
te—reeer�pe
d^ca-cr,
payment of the benefit
the —ce-c-crirrrri
3;v=urcce—e
persen
open —tee
ffle e - q
rir'ari
crrc
�ie�ae�e-e��ng
eideeeeding—benefi:s
equi;o-xlent
he e -r she—wems-id
ehesear--tehave-moi
paid under
.J }i -e f s
er ��=z-e—arm
rail be—eemptited
aetiaarial vialue-te th—allewanee
ha3o-e—r-ee-eived
s er her retir-efft_nt
the-prevrsiens of emstrey}-6.e.
1_�_�
had --the
d the
��-��
to—he—e€
whieh
—fReafibe-r-
allewan-eem
SAM 1-9m M
(mj ) Changes in beneficiary afte±—±=eti:r-ement. Any member
who elects a survivorship option for a spouse pursuant
to subsection (1), may designate a new spousal
beneficiary in accordance with procedures established
by the board; provided, that an actuarial valuation
will be made following such election, and the benefit
for the retiree will be recalculated so that it is the
actuarial equivalent of the benefit payable to the
original spouse; previded, further, that the erigina-1
plan by—eperatien of law. It is intended that the
Girt¢ Plan will pay only one survivor benefit for any
member of the icet r..f..e pPlan and will not incur an
increase in benefit costs by reason of a change in
designated beneficiary.
Page 99 of 114
(k) Reemployment of retirees. 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. This
section shall not apply to any employment other than
with the Citv of Miami.
Sec. 40-256. Cost -of -living allowance.
(a) A cost of living (COLA) fidnd—allowance shall be
est-ablished—€ems paid to beneficiaries of the
rem�ireffient pPlan fie- be finaneed as follows:
()Asset ferth in Seetien-4G 2-46 ( ) (,), }we
pe r eent (2%) o f the —ee- l e--eempensati en—ems- ea
member sha-11 be pieked—up. eaeh pay pe=redb�e
pay r
Gity
and ere d i t .-..7 t o t 7-, . GLii fdndr
-Bu"cz -anHie ,,-,+available —f -e FR eHeess ±nteiest
earnings det e ed- en an aee�ifail amebasis f re„z
Geteber- 1, 1982, t -e -- the —begi--=-ing of the year of
de t ien, i=edueed by any GGT=Atransfer 4:
pier vers The—City's eentribuen —shall be
eal etrmat ed—after=e—e l e s e—e f the fiseal year-,
andthe transfer o f assets fre m t is rs tftind s e -f
the r e t l regent plan -t e ie9 J72T f,Ci1TRshall l L
1 TT�17e
fRadein timely fashien. City een-trib:wlciens t e
theGGLTn fund —3ursidaTt —ce—the p revLs1 e ns ef this
a
para be--xiandat e ry f ems -3-1/2 years
enly, beginning Geteberer i no
Every October 1, there shall be calculated a four
percent (4%) COLA benefit equal to four percent
(4%) of the benefit payable at that time. There
shall be a minimum COLA benefit of 554.00 ner
year and a maximum COLA benefit increase of
Page 100 of 114
0 •
$400.00 per year provided the retiree's first
anniversary of retirement has been reached.
(3-2 ) Effeeti'd(Dteber , 198;, there ---s 11 be
eate,alated a twe-pereenGO6A benefit egaal to
twe-pereent e��re—eembined annual base pensief.
and the prier GGE1benefit f€er the peried eetems.er
3, 1992 thr-eugh Septeflaber 30, 1993 with
GLA be eI$11S4 . 99 per year and a ffta3rE±ffl'dfft
GGLA
n.d--
GLA benefit i t i re rens e—e f $2GG.G9 per year as e=
teteb 1, 3:9931 evaded the— retiree's first
ann
;a-
ann i v=ems a-ry-e f re tr effie t has been reaehed. The
koro=e-p-e r eent-C OL•A—benefit -- shall , added t e the
pier GGLA benefit te p3Feduee the new GGl
benefit. The new GGEA benefit, —en art_ _lr _rl,
Z �__
basis,shall net e3Eeeed theFRenthl
benefit upen reti-r-eien- The nnLT-beief t will -
be paid en a
ilrbe-aide-e
fRenthly ba Retirees exercising
the return of contributions and reduced pension
option shall receive a minimum COLA benefit of
$27.00 per year and a maximum COLA benefit of
$200.00 per year, provided the retiree's first
anniversary of retirement has been reached.
Page 101 of 114
.
.
-- --
----
- -- -
-
- - -
----
-
.
----
-
--
Page 101 of 114
Page 102 of 114
IMI MI
.long..
.----
MAIN.
Page 102 of 114
0
(--9,3) The Board shall administer COLA payments and COLA
assets shall be deemed an integral part of the
trust for which separate accounting is not
required.
MEN
■mEr■
Sec. 40-257. Adjustment in benefits.
Members who belonged to the Miami -&City gGeneral
eEmployees' rRetirement pPlan, presently known as the City of
Miami gGeneral e -Employees' and -&Sanitation eEmployees'
rRetirement t -Trust, shall continue to be subject to the
following adjustments in benefits:
Page 103 of 114
12111
beard, and the bxinin�f
represent Ives
of
AFSGME
and the —SEA/ pre-v4ded
that ai n deter
-mining
the
disbi:irsefRent of GGLA—wands—te
shall e given tedhe,�refie-iaries
benefi=-
whe e_ rentl�
_e_rV--
e empa r a'ti-o=e3y sfRa l l e r :., .eh—
length of time they -ha-i�Fe
extent that their —siial -rer benefits
benefits
be en—retrred, e3Eeeptz
aretherc5irt
dude—
t o the
tethe
e-f—c
Sec. 40-257. Adjustment in benefits.
Members who belonged to the Miami -&City gGeneral
eEmployees' rRetirement pPlan, presently known as the City of
Miami gGeneral e -Employees' and -&Sanitation eEmployees'
rRetirement t -Trust, shall continue to be subject to the
following adjustments in benefits:
Page 103 of 114
12111
(-21) Any member who, on or before May 23, 1985, had a
vested right to receive an additional retirement
allowance under the provisions of the Miami City
General eEmployees' -YRetirement pPlan, presently
known as the City of Miami General eEmployees' and
-&Sanitation eEmployees -rRetirement t -Trust, which
benefit was previously 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 or "rule of 75" or "rule of 70" 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.
Sec. 40-258. Assignments and loans 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, except
with respect to alimony, child support, or medical payments to a
former spouse. Loans to participants are prohibited.
Sec. 40-259. 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 pPlan, shall be punished as provided in section 1-13
of this Code
Sec. 40-260. Errors.
Should any change or error in retireFfie pPlan records be
discovered or result in any member or beneficiary receiving from
the Yl..t ; ,, em...n} pPlan more or less than he or she would have been
Page 104 of 114
1211.1.
0 •
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 insuch a manner that the
actuarial equivalent of the benefit to which such member or
beneficiary was correctly entitled shall be paid.
Sec. 40-261. Bonding; fiduciary insurance.
(a) Prior to exercising custody or control of any funds or
property of the icetireme pPlan, every fiduciary of the
retirem,.r:� pPlan and every person who handles funds or other
property of the retirement pPlan shall be bonded. Such bond
shall provide protection to the r.,tireme pPlan 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 rets efne }
pPlan 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.
Sec. 40-262. Compliance with the Internal Revenue Code.
(a) 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.
(b) 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) .
(c) 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.
The Term "eligible employee" means an individual who was a
member before the first plan year beginning on or after
January 1, '1996.
(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 seventy and one-half (70-1/2),
Page 105 of 114 1211
or April 1st of the year following the calendar year in which the
member retires.
When a distribution of the participant's entire
interest is not made in a lump sum, the distribution will be
made in one (1) or more of the following ways: over the life of
the participant; over the life of the participant and designated
beneficiary,; over a period certain not extending beyond the life
expectancy of the participant; or over a period certain not
extending beyond the joint life and last survivor expectancy of
the participant and a designated beneficiary.
(e) If the distribution has commenced before the
participant's death, the remaining interest will be distributed
at least as rapidly as under the method of distribution being
used as of the date of the participant's death.
The method of distribution, if the participant dies
before distribution is commenced, must satisfy the following
requirements:
(i) Any remaining portion of the participant's
interest that is not payable to a beneficiary
designated by the participant will be distributed
within five (5) years after the participant's
death.
(ii) Any portion of the participant's interest that is
payable to a beneficiary designated by the
participant will be distributed either: (i)
within five (5) years after the participant's
death; or (ii) over the life of the beneficiary,
or over a period certain not extending beyond the
life expectancy of the beneficiary, commencing
not later than the end of the calendar year
following the calendar year in which the
participant died (or, if a designated beneficiary
is the participant's surviving spouse, commencing
not later than the end of the calendar year
following the calendar year in which the
participant would have attained age seventy and
one-half (70-1/2)).
(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
Page 106 of 114
12111
0
time and in the manner prescribed by the Plan administrator, to
have any portion of an eligible rollover distribution paid
directly to an eligible Plan specified by the distributee in a
direct rollover.
(1) For the purposes of this section, the following
words and phrases shall have' the meanings
indicated:
(a) "Eligible rollover distribution" is 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:
(i) 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 (10) years or more;
(ii) any distribution to the extent such
distribution is required under Section
401(a)(9) of the Internal Revenue Code;
and
(iii) the portion of any distribution that is
not includable in Gross income.
(b) "Eligible- Plan" 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 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 Plan is an
Page 107 of 114
individual retirement account or individual
retirement annuity.
(c) "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.
(d) "Direct rollover" is a payment by the Plan
to the eligible Plan specified by the
distributee.
Sec. 40-263. Distribution of marital interests in the plan;
intervention in legal proceedings affecting the
Plan.
(a) In the event that the board is served with a domestic
relations order or other legal process purporting to require the
payment of any portion of a member's benefit to another person
as a result of a dissolution of marriage, .the board shall cause
such order to be reviewed to determine compliance with the
provisions of the Plan.
(b) The Board of Trustees shall be authorized to intervene
in any such dissolution of marriage proceeding to ensure that
such domestic relations order is otherwise consistent with the
distribution of an interest in a public employees retirement
plan under state law.
(c) Any cost associated with the modification or
correction of such domestic relations orders shall be the
responsibility of the Plan member.
(d) The Board shall be authorized to seek intervention as
provided by law in any legal proceedings which, in the opinion
of the Board, affects the substantial interests of the Plan.
(e) The parties may consent to the entry of an order
distributing benefits in a manner not otherwise inconsistent
with the terms of the Plan.
Sec. 40-262--264. General conditions.
Page 108 of 114 1- II
(ba) The City of Miami General Employees' and Sanitation
Employees' Retirement Trust may sue a-nd or be sued as an entity.
(-eb) The Miami City eCommission shall have ire 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.
Sec. 40-265.
Excess benefit plan.
(a) The excess retirement benefits above the limits
permitted by the Internal Revenue Code shall be as follows:
(1) funded from the City of Miami General Fund; and
(2) paid annually concurrently with the City's annual
contribution to normal. pension costs, which shall
cause the City to realize a reduction in normal
pension costs in the same amount; and
(3) be deposited in separate accounts for each respective
plan to receive the City's excess retirement benefit
contributions, which accounts shall be separate and
apart from the accounts established to receive the
City's normal pension contributions for each
retirement trust;
(b) The Board of Trustees for General Employees' and
Sanitation Employees' (GESE) is appointed as the committee to
administer the Excess Benefit for the GESE retirees.
Page 109 of 114 r
111
..
Sec. 40-265.
Excess benefit plan.
(a) The excess retirement benefits above the limits
permitted by the Internal Revenue Code shall be as follows:
(1) funded from the City of Miami General Fund; and
(2) paid annually concurrently with the City's annual
contribution to normal. pension costs, which shall
cause the City to realize a reduction in normal
pension costs in the same amount; and
(3) be deposited in separate accounts for each respective
plan to receive the City's excess retirement benefit
contributions, which accounts shall be separate and
apart from the accounts established to receive the
City's normal pension contributions for each
retirement trust;
(b) The Board of Trustees for General Employees' and
Sanitation Employees' (GESE) is appointed as the committee to
administer the Excess Benefit for the GESE retirees.
Page 109 of 114 r
111
(c) The actuaries for the GESS Board of Trustees shall
calculate the amounts necessary to fund the defined benefit
plans giving effect to the reductions caused by implementation
of Section 415 of the Internal Revenue Code.
(d) The excess benefits shall be paid to each eligible
member of the Plans on a monthly basis in.an amount equal to the
difference between the allowable pension to be paid under the
Internal Revenue Code and the amount of the defined benefit
granted eligible members pursuant to the provisions set forth in
the Code.
(e) Should additional retirements occur during the year
where the eligible member's retirement benefit exceeds the
Section 415 limits, the GESE Board of Trustees shall calculate
the additional excess benefit amount required for the remainder
of the fiscal year and should such amount exceed the amount
available from the funds provided for the fiscal year, the GESE
Board of Trustees shall notify the City of the additional funds
required.
(f) Upon the City's receipt of notice of the additional
funds required, the City shall forward the additional funds
required. The requirement for additional funds paid by the City
to fund the Excess Benefit Plan shall be reflected as a
reduction in the City's annual contribution of normal pension
costs for the following near.
Sec. 40-266. Transfer of Accumulated Leave.
(a) Members eligible to receive accumulated sick leave,
accumulated vacation leave or any other accumulated leave
payable upon separation may elect, not later than the year prior
to the year of retirement to have the leave transferred to the
Plan. Members on whose behalf leave has been transferred may
elect one of the following options within thirty (30)days of
separation. Members failing to elect a distribution option
within thirty (30) days of separation will be deemed to have
elected Option 1 below:
(1) Receive a lump sum equal to the transferred leave
balance, or
(2) Transfer the entire amount of the transferred leave
balance directly to any eligible retirement plan, or
Page 110 of 114 121,11
(3) Purchase additional service credit as may permitted by
the Code. If the leave balance exceeds the cost of
the service credit purchased, the balance shall be
paid to the member in a lump sum.
(b) Members who fail to elect a transfer in the year prior
to retirement or other separation will receive payment in a lump
sum at time of separation with all attendant tax consequences.
(c) If a member on whose behalf the City makes a
transferred leave balance to the Plan dies after retirement or
other separation, but before making an election, as provided, or
after making an election but before any distribution is made,
the election option shall be void. In such an event, any person
who would have received a death benefit had the member died in
service immediately prior to the date of retirement or other
separation, shall be entitled to receive an amount equal to the
transferred leave balance in a lump sum. In the case of a
surviving spouse or former spouse, an election may be made to
transfer the leave balance to an eligible retirement plan in
lieu of the lump sum payment. Failure to make such an election
by the surviving spouse or former spouse within sixty (60) days
of the member's death, will be deemed an election to receive a
lump sum payment.
(d) The Board, by rule, shall prescribe the method for
implementing the provisions of this Section.
Division 4. City of Miami
Elected Officer's Retirement Trust
Sec. 40-296. Benefits.
No member's annual benefit may exceed the amounts permitted
under Section 415 of the Internal Revenue Code of 1986 as
amended, including cost -of -living adjustments under Section
415 (d) _
Page 111 of 114
Sec. 40-299. Elected Officers' Excess benefit plan.
(a) The excess retirement benefits above the limits
permitted by the Internal Revenue Code shall be as follows:
(1) funded from the City of Miami General Fund; and
(2) paid annually; and
(3) be deposited in a separate account to receive the
City's excess retirement benefit contributions,
such account shall be separate and apart from the
account established to receive the City's normal
pension contributions for the Elected Officers'
Retirement Trust; and
(b) The City administration shall select an administrator
for the Elected Officers' Retirement Trust.
(c) The actuaries shall calculate the amounts necessary to
fund the defined benefit plans giving the effect to the
reductions caused by implementation of Section 415 of the
Internal Revenue Code.
(_d) The excess benefits shall be paid to each eligible
member of the plan on a monthly basis in an amount equal to the
difference between the allowable pension to be paid under the
Internal Revenue Code and the amount of the defined benefit
granted eligible members pursuant to the provisions set forth in
tha rnrla
(e) Should additional retirements occur during the year
where the eligible member's retirement benefit exceeds the
Section 415 limits, the actuary shall calculate the additional
excess benefit amount required for the remainder of, the fiscal
year and should such amount exceed the amount available from the
funds provided for the fiscal year, the administrator shall
notifv the Citv of the additional funds reauired.
(d) Upon the City's receipt of notice of the additional
funds required, the City shall forward the additional funds
required.
Page 112 of 114,
121.11
• 1 •
Section 2. This Ordinance shall be applied on a
prospective basis only. No person who is a separated vested
member; a member not in service or currently a beneficiary under
the plan shall be entitled to the benefits provided for in this
Ordinance, except as otherwise specifically provided. Benefits
available to those persons shall be the benefits in effect on
the date of separation from service. The deletion of obsolete
language shall not impair or diminish the rights of any person
to whom those benefits are applicable. .
Section 3. All ordinances or parts of ordinances that
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 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.
Page 113 of 114
12111
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. This Ordinance shall become effective
immediately upon its adoption and signature of the Mayor.V
PASSED AND ADOPTED BY TITLE ONLY this 25th day of
September , 2001.
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2-36, since the Msyor did not in %cato o.p Foval of
this legislation by signing it in the designated place provided, said legislat n row
becomes effective with the elapse of ten (i 0) day, om they of Con -un n a,A
regarding same, without the Mayor exercis' to.
AT TEST c '"-
WALTER J. FOEMAN
CITY CLERK
F -A9
ALEJ RO VILARELLO
feIT ATTORNEY
1112:SW:LRC:BSS
•..n, City Clerk
,-',.
CORRECTNESS:tl-
2/ 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 114 of 114
CITY OF MIAMI, FLORIDA 7 A
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and
Members of the City Commission
FROM: OS ez
City Manage
RECOMMENDATION
DATE: September 17, 2001 FILE :
SUBJECT: Emergency Ordinance
Amending Sections 40-241
through 40-264 and 40-296
REFERENCES: and Adding Sections 40-265,
ENCLOSURES: 266 and 299
The City Administration recommends the City Commission approve the attached
Emergency Ordinance substantially revising Sections 40-241 through 264 and creating
two new Sections, 40-265 and 40-266 relating to the City of Miami General Employees
and Sanitation Employees Retirement Trust as well as amending Section 40-296 and
adding Section 40-299 relating to the Elected Officers' Retirement Trust.
BACKGROUND
The Board of Trustees of the City of Miami General Employees and Sanitation
Employees Retirement Trust (GESE) having reviewed Sections 40-241 through 40-264
of the City of Miami Code recommends to the Miami City Commission the revision of
the existing retirement code to modernize language, to eliminate internal inconsistencies,
to eliminate obsolete language, and to ensure continued compliance with the provisions
of the Internal Revenue Code. A summary of the changes to the Ordinance, prepared by
Ron Silver, Counsel for the GESE Board, and Robert Klausner, Special Counsel for the
GESE Board, is attached (pages 1 — 47).
The GESE Trustees also recommend creating two new Sections, 40-265 and 40-266. In
July, 2000, the City Commission passed Resolution 00-657 establishing an Excess
Benefit Plan to allow eligible members to continue receiving retirement benefits which
would otherwise be limited by the provisions contained in Section 415 of the Internal
Revenue Code. The GESE Trustees are recommending incorporating the Excess Benefit
Plan in the City of Miami Code. The creation of Section 40-266 will provide for an
employee upon retirement to transfer accumulated leave (vacation and sick leave),
payable upon separation, to the GESE Trust and select a distribution option. This
provision is currently available to employees in the FIPO Trust. The administration is
also proposing to amend Section 40-296 and add Section 40-299, detailing the
administrative procedures of an Excess Benefit Plan, which would be applicable to the
Elected Officers' Retirement Trust.
The actuary for the GESE Trust and the City's actuary have reviewed the proposed
revisions and are in agreement that there will be no cost impact to the Plan.
CITY OF MIAMI
GENERAL EMPLOYEES' AND SANITATION EMPLOYEES'
RETIREMENT TRUST FUND
ORDINANCE CHANGE SUMMARY
In the summary below, changes in the ordinance are outlined by
section. Where there is no change or the change is cosmetic
(grammar or syntax) only, no reference is made.
This summary is intended as a guide for review of this
ordinance and to express the intent of the GESE Board in the
drafting of the document.
Sec. 40 -241 -Definitions
Accumulated employee contributions - The definition of accumulated
employee contributions continues to include amounts deducted from a
member's compensation or picked up by the City. However, a section
was added that specifically addresses purchase .of credit for
military service and other buybacks. Obsolete or repetitive
language was deleted.
Actuarial equivalent -. Changed to provide that the benefit being
replaced should be based on an actuarial table adopted by the Board
of Trustees. The precise actuarial table is not.included as it may
change from time.to time. The methodology required by the final
judgment in Gates v. City remains in the plan, as it has been
amended over -time
AFSCME - Deleted this definition and replaced it with definition
for General Employees Union should there ever be a change in the
bargaining unit for general employees. The plan would not have to
be, amended, should -a change in the collective bargaining agent
occur.
Average final compensation'.- This ..section was clarified and
simplified. Obsolete language was deleted. The question of the.
meaning of.the two highest years was clarified to state that time
need not be consecutive.
Benefit - Changed so that any benefit paid shall be made to a
member, retiree or beneficiary.
Child - A definition for child was added to include adopted
children, but not step or foster children as persons who may be
entitled to survivorship.benefits.
CIGU - The definition for the City Independent Group Union. was
deleted as this Union no longer exists.
-2-
City - A definition for City was added so that City is defined as
the City of Miami.
City Commission - A definition was added for the Miami City
Commission:
City employee - The definition for City employee was deleted and is
now included under the definition of."Employee".
COLA - Definition changed from "cost of living allowance" to "cost
of living adjustment provided under the terms of the plan". No
major change. _.
Compensation - A definition for compensation was added in place of
the definition for "earnable compensation" so that the term is now
more clearly defined and should not be susceptible to numerous
interpretations as to what should and should not be included as
compensation. If not clearly defined, the potential for litigation
as to what the term compensation actually includes is much greater
than if it is clearly defined. The term "compensation" has been
clarified to follow the existing practice that includes base
salary, pick-up contributions for straight time hours worked,
assignment pay, pay supplements, vacation, sick leave used while an
active member, jury duty, death in family leave, and other
administrative leave which is approved as part of the member's base
salary. Compensation does not include overtime.pay, accumulated
sick leave payouts, accumulated vacation leave, accumulated
-3-
compensatory leave, premium pay for holidays, call back pay,
uniform allowance pay, tool allowance pay, and. other forms of
remuneration.
Disability - A definition for disability was added as it was not
originally defined in. the definition section of the original
ordinance. Disability is now defined as the permanent and total
incapacity to perform useful and efficient service as an employee
of the City. Previously, it was set forth in the original
ordinance as a. member being mentally or physically totally.
incapacitated for the performance of duty not as a result of an
accident in the actual performance of .duty, and that such
incapacity is.likely to be permanent, and that such member should
be retired.
Early service retirement - No relevant change; still means
withdrawal from service under circumstances permitting the payment
of a retirement benefit
Earnabl&
compensation
- Moved
to definition of "compensation":
Employee
- Changed to
include
regular, permanent, and full-time
appointed officers and employees of the City, whether classified or
unclassified. Also includes members of the Plan who become
employees of Miami -Dade County unless they elect to become a member
of the Florida Retirement System. Specifically excludes temporary,
-4-
part-time or casual employees as employees under this Plan which
was not done in the original ordinance.
Excess interest earnings - Definition deleted as it was obsolete.
Full-time Added so that the term is clearly defined and not
susceptible to interpretation as to the number of hours worked and
whether those hours actually constitute full-time or part-time.
Specifically states employees compensated, on a forty (40) hour
workweek basis.
Fund - No change; still means the General Employees' and Sanitation
Employees' Retirement Trust Fund.
General Employees' Union - Added to define the union as the
certified bargaining agent for all general employees of the City,
except Sanitation employees, managerial employees and confidential
employees. Replaced the definition for AFSCME.
May - Added to, define it as a permissive term rather than a
definitive term.
Member - No relevant changes; still means an employee for whom
contributions are picked up.
Member absent from service - Still defined as an employee who has
ceased to be an employee for less than three (3) years in a period
of five (5) consecutive years after last becoming a member. Deleted
a provision which only allowed a member absent from service to be
entitled to a benefit during the period before membership elapses
-5-
12111
only if the benefit vested prior. to the member ceasing to be an
employee.
Member not in service - Still defined as a member who has'a vested
right to•retirement who is no longer in service. Provision added
to similarly,, define "vested separated member" as a member not in
service. Provision added to specifically exclude retired members
who have subsequently been rehired by the City in a position not
eligible for participation in this plan.
Membership credit - Definition deleted as unnecessary. Now included
in membership service.
Noninvestment expenses - Changed to distinguish between fees paid
to money managers and specifically include fees for., financial
consultants, and performance monitors. -Still includes salaries for
office staff, overhead, professional fees for actuaries,-
accountants and attorneys.
Normal retirement age - Added to define age fifty-five (55) as
normal retirement age.
Pension - Definition deleted as unnecessary.
Pink -up amounts - Added a provision including amounts picked -up as
employee :contributions for ownership purposes in the event of a
return of contributions.
Plan Added to, define City of Miami General Employeesand
Sanitation Employees' Retirement Trust as the Plan.
-6-
Plan year - Added to describe statutorily mandated fiscal year from
October l through September 30.
Pre-existing condition - Added to specifically define it as a
condition of health which arose prior to City employment.
Regular interest - Added a provision so that it shall not be less
than one (10) percent per quarter of the contribution balance as of
the end of the previous calendar year, including interest. Deleted
an obsolete range of interest.
Retiree - Added to define it as a former member who is in receipt
of benefits.
Retirement allowance – Deleted. Properly defined under definition
for benefit.
Retirement plan - Deleted; now defined as "plan".
Rule
of
64 -
Deleted;
no longer
relevant as
program has
.expired.
Rule
of
70 -
Clarifies
that for
this benefit
the member
must have
completed a minimum ten (10) years of creditable service.
Rule of 75 - Deleted, as this benefit has been replaced by the Rule
of 70.
Sanitation Employees Union —Definition added to define the union
as the certified bargaining agent for all sanitation employees of
the City, except managerial employees, confidential employees and
employees. covered by another collective bargaining unit. ,
Service - Definition changed to provide that "service" shall mean
active employment with the City.
Spouse - Definition added specifically defining spouse as the
lawful husband or wife of a member at the time that benefits
commence.
Surviving spouse - Added definition defining surviving spouse as
the spouse of the member at the time benefits commence.
Useful and efficient service - Definition added to clarify the
standard applicable to the determination of disability.
Vested
benefit -
Deleted
a provision
of this definition
which
service before
defined
minimum
vesting
requirement
and transferred
it to
definition of "vesting".
Vesting -
Added definition;
vesting occurs
upon ten (10)
years of
creditable
service before
the member is
entitled to
service
retirement benefits and non -service disability.
Sec. 40-242. Retirement plan established; purpose; name; operative
date.
Clarifies that the Plan is under the exclusive control of the Board
of Trustees to carry out its terms.
Sec. 40-243. Board of Trustees
(1) Composition and Selection
-8-
12111
n
11
(2) Rather than merely stating that the Board shall consist
of nine (9) members, this subsection was changed to
provide that a nine (9)'member Board shall have the sole
and exclusive authority for administration of the Plan.
(3) Old provision was moved which stated that each trustee
had to take an oath of office within ten (10) days after
their selection. This section was changed to specifically
provide for the selection of the Board members. Further
amended to conform to current practice of submitting a
single citizen name for each Commission appointed
position.
(b) Term of Office
(1), Previously provided for the City Manager appointee to
serve for a two (2) year term, four trustees to serve for
a one (1)
year
term,
and four trustees to serve
for a
two
(2) year
term.
This
subsection was changed so
that
all
terms are now for two (2) year. periods. The change was
designed to make administration of the Plan much easier
as well as to provide for, increased continuity and
stability in the Plan.
(2) Previously allowed as many consecutive terms as those
participating in. :the selection processes deemed
-9-
•
appropriate. The subsection now provides that there shall
be no limit to the number of terms.
(3)Provides that a newly appointed trustee shall take an
oath of office within ten (10) days after being selected.
(4) A hold over provision was added stating
that a trustee in office shall hold over
in office until the new trustee is
appointed and has taken the oath of
office. This provision was added so that
there should not be any vacancies in
office after a term has been completed..
(1) Fiduciary responsibility
This section was consolidated so that the fiduciary
responsibilities of the trustees are clearly defined.
Trustees shall discharge their responsibilities solely in
the interests of the members and beneficiaries of the
Plan. The trustees are required to act with the care,
skill and diligence of a prudent person acting in a
similar capacity.
(d) Compensation
Trustees are still granted leave .with full pay when
functioning as 'a' trustee .during normal work hours.
Trustees are not compensated otherwise for their service.
Trustees who are not employees of the City are
compensated in the same manner as members of the City's
Civil Service Board. A provision was added specifically
exempting those hours worked as a trustee from the
overtime provisions of the Fair Labor Standards Act.
(5) Meetings; voting; quorum; officers.
(1) A provision was added that allows trustees to
be appointed to.committees to perform tasks.on
behalf of the Board. Committee meetings.are
subject to the Florida Sunshine Law.
(2) This section now provides that a chairperson
and vice chairperson shall be elected every
two years. The section previously did not.
state how often these positions would be
subject to election.
(6) Vacancies; removal
(1) This section still provides that a trustee can
be removed from office for cause upon the vote
of six (6) trustees. However, a provision was
added that the trustee needs to be provided
with notice and hearing prior to being
removed. The section now accordingly provides
the trustee subject to removal with due
-11-
12111
process rights thereby protecting the Board
from any challenges based: on violation of
those rights.
Sec. 40-244. Administration of the retirement plan;
liability; misconduct of a co -trustee
(2) Administrative duties of the Board
The Board is still responsible for handling administrative duties;
they are carried out by the Administrator. The Section previously
listed the basic administrative duties of the Board; several
additional duties have been added in the revisions' made to the Plan
which should carefully be reviewed by all trustees. The additional
.duties are:
(7) to. process . all applications for eligibility,
participation and benefits
(8) to distribute a summary plan, description to members
at least.biennially;
(9) to retain professionals if necessary to carry out
their fiduciary responsibilities;
(10) to recommend changes in the'Plan;
(11) to promptly deposit all contributions and income;
(12) to establish rules and regulations for °the
management of the Plan;
-12-
(13) to take any other proper action.
Several actuarial requirements were removed from the remainder of
this Section and placed in more appropriate places within the
Ordinance.
(b) Pension administrator
(1) Section was renumbered; however; no relevant
changes were made. The renumbered Section sets
forth the same minimum requirements that have to be
met by a potential Administrator prior to being
retained. This Section previously provided for the
retention of a physician; it was moved into a new
section providing for the retention of consultants.
(2) This Section was renumbered. This prior subsection
permitted the Board to retain legal counsel,,
accountants, actuaries, and other professional
advisors. The section was moved to a new section
within the Ordinance. The section now restates the
Board's duty to evaluate the performance of the
Pension Administrator.
(3) This section previously called for cooperation
between the different retirement Boards within the
City. This provision was deleted and replaced with
a new provision which mandates that the Board have
-13-
a written contract with the pension administrator.
This protects both parties- from any
misunderstandings and specifically gives notice to
the Administrator as to what is required from him
or her.
(4) A new section was added providing that the pension
administrator shall not be an employee of the City.
The job of Administrator 'carries too many
responsibilities for the person to serve as both
Administrator and City employee. There is also the
potential for irreconcilable conflicts to arise if
the Administrator wears two hats.
(5) Another new section was added providing that the
.Administrator shall be considered a fiduciary of
the Plan. 'This section specifically places the
same fiduciary responsibilities and obligations on
the Administrator as are on the trustees.
(3) Annual report to the City Commission This section was
relocated and reworded.
(4) Actuarial valuation; actuarial standards
(1) This section was conformed to the.most recent Gates
language.
(e) Authority to hire consultants
-14-
(2) This section allows the Board to hire counsel,
accountants, actuaries and other professional
advisors to assist. the Board. This section
previously existed in another section of the
original ordinance.
(3) This section allows the Board to retain a physician
to assist the Board with any questions that arise
under the Plan, such as disability questions.
(6) Defense of actions; trustee liability
(1) This section was added specifically authorizing the
Board to prosecute and defend claims involving the
Plan in order to protect the, fund assets or the
Board themselves in the performance of their
duties.
(2) This section was added providing that trustees have
no. personal liability for actions taken in the
.scope of the performance of their duties as a
trustee. This immunity is set forth in Florida
Statutes. The section also authorizes the Board to
purchase errors and omissions insurance for further
protection from personal liability. The insurance
will not provide coverage against fraud,
intentional misrepresentation, wilful misconduct or
-15-
�2�11
gross negligence 'claims, which are not to be
considered as- arising within the scope of a
trustees' duties.
(7) Public records; board documents; written communications
to and from the City; commission agenda
(1) Revisions were made to this section providing that
there be required reciprocity between the Board and
City Manager with regard to all documents relating
to the Plan.
(2) This section was added to the Plan requiring the
trustees to develop a policy to maintain the
confidentiality of member's medical information.
This information is exempt from the State and
Federal Public Records Law and it is important for
a sound policy to be developed as penalties may be
imposed for improperly releasing this information.
(3) Minor changes were made to this section which
requires that business items that require
consideration by the Board be placed on the agenda
for the next meeting.
(h) Rules and regulations
The section authorizes the Board to establish administrative rules.
A provision was added to this section stating that administrative
-16-
rules adopted by the Board may not conflict with provisions of the
City Charter, state or federal law, or provisions of the collective
bargaining agreement. All of the following take precedence over
administrative rules in cases of conflict.
Sec. 40-245 Asset management and investments
(a) Nature of trust
The section previously defined the Plan as an irrevocable trust.
The section was rewritten so that it isnot only labeled as an
irrevocable trust fund but is also established as a defined benefit
retirement fund. The section gives members an ownership interest
of their accrued benefits in the Plan, as distinguished from the
entire assets of the Plan, in which there is no ownership interest.
(b) Custody; records
This section was added specifically placing custody of the assets
of the Plan in .the Board of Trustees. The section allows the
pooling of all assets so long as records are maintained reflecting
the financial composition of the fund, including contributions
made, receipts, disbursements, and other relevant entries.
(c) Investment policy
This section was added requiring the Board to develop and maintain
a written investment policy setting forth the types of securities
-17-
12.11
and investments allowed to be placed in the fund. The policy shall
also set certain limitations on investments - as set forth in the
section.
(d) Permissible investments
No major changes were made to this section which sets forth the
investments allowed to be made by the trustees. The specific
guidelines set forth in the section must be followed by the
trustees, or else questions of breach of fiduciary responsibility
arise.
(e) Limitations on investment
No relevant changes were made to this section. The section
outlines those investments which may not be made by the Board
becauseof potential speculativeness and requires investments to be
made in a prudent manner.
(f) Money managers
(2) This section was added specifying that the
Board shall have written contracts with all
money managers. The contracts are to contain a
provision that if the money manager invests
assets in a prohibited category causing a loss
to the trust, the money manager shall make the
Board whole for the loss. This section was
added to remove any ambiguities in the Board
-18-
of Trustee/money manager relationship and to
protect the Board from improper actions of the
money manager. The section also defines the
money manager as a fiduciary of the Plan,
imposing fiduciary responsibilities on the
manager.
(3) A provision was added to this section allowing the Board
to terminate the money manager agreement with or without
cause. The Board will not have to justify a decision to
terminate a money manager. The section also requires the
Board to establish written guidelines and objectives for
the money managers which must be met or the money manager
becomes subject to automatic removal.
(4) This section sets forth the level of standard expected of
the money manager while investing funds of the trust.
The section also provides the mechanism for funds to be
transferred from the money manager to the Board. Any
distributions received by the Board must be used for the
exclusive purpose of providing benefits to members or pay
for expenses accrued in administering the Plan.
(g) Records to be maintained
_19-
(1) This section was rewritten so that the duty of the
money managers to retain records is in compliance
with State and Federal Public Records Laws.
(2) This section was streamlined requiring the board to
keep accurate accounts of its assets so that
audits may be performed by the City at reasonable
times.
Sec. 40-246. Contributions.
(a) Member contributions.
(2) The requirement of a member to contribute ten (10)
percent of his/her earnable compensation is still
codified in this section. A provision_ requiring two (2)
percent of the member's contribution to be credited to
the COLA fund was deleted.
(5) No changes were made to this section providing that
members shall be deemed to consent and agree to the
pick up of contributions.
(b) City contributions
This section was conformed to the most recent Gates language.
Sec. 40-247. Accounts.
-20-
•
(a) Generally.
This section was added clarifying that there are two (2) accounts
within the plan; the membership account and the benefits account.
(b) Membership account.
(i) The section provides that the membership account shall
consist of the contributions of the members of the plan.
A provision was added so that regular interest paid on
contributions are considered part of the membership
account.
(ii) This section was streamlined so that it clearly
provides that all withdrawals of contributions
should be charged to the membership account.
(c) Benefit account.
(ii) A provision in this section defining "regular
interest" was deleted which required the Board to
determine the rate. The provision left the rate
determination open to too much interpretation by
the trustees which in turn would -lead to second-
guessing the Board as to how they reached their
decision. The section still requires the Board to
transfer from the benefit account to the membership
account on January 1 of each year, an, amount
-21-
sufficient to allow regular interest on the
individual balances in the membership account.
(3) Grammatical changes were made to this section
providing that all expenses of the plan are
chargeable to the benefit account.
(4) A provision was added allowing the Board to adopt
standard bookkeeping practices for maintenance of the
accounts.
Sec. 40-248. Physical examination; effect of pre-employment
conditions.
(1) This section underwent substantial revisions and now sets
forth in sufficient detail the requirement of employees,
as a condition of entry into the Plan, to submit to a
uniform medical examination. The purpose. of the
examination is to determine if any pre-existing medical
• conditions exist. The section allows the Board to rely
upon any pre-employment physicals performed by the City.
A person cannot be denied membership in the plan based
on a pre-existing condition.
(2) Several changes were made to this section. The section
previously called for the member to execute a waiver of
the right to a service -incurred disability in cases where
-22'-
•
pre-existing conditions are discovered. The more
appropriate manner to handle the pre-existing condition
situation is for the member to acknowledge the pre-
existing condition in writing. The member also
acknowledges that the condition cannot 'be used as the.
basis for a service -incurred disability retirement unless
it is proved that the member would have been entitled to
a service -incurred disability on the basis of the
aggravation of the pre-existing condition.
(3) This section was.added to the ordinance providing the
member certain due process rights to challenge the
medical report results if it is felt there are errors.
The section allows a review by the administrator and a
subsequent hearing before the Board..
Sec. 40-249. Membership; members absent from service
(1) A change was made to the section specifically excluding
police officers and firefighters from participating in
the plan. The plan is open to all employees except
police and fire. The section also defines membership as
employees absent from service for less than three (3)
years in the five (5) year period after. last becoming a
member.
-23-
(2) Participation in the plan is mandatory for all employees.
A provision allowing certain persons -to decline
membership in the plan was deleted.
(3) Revisions were made to this section setting forth the
conditions under which membership in the plan terminates.
The new provisions clearly set forth the circumstances.
Resignation, termination, budgetary reduction and layoff
for more than three (3) years were all added as
disqualifying events. Additionally, joining another City
retirement plan and the expiration of office were also
added as terminating events. The section further
provides that upon membership ending, all creditable
service earned becomes void.
Sec. 40-250. Right of certain persons to reject membership.
This section clarifies the date upon which certain persons may
reject plan membership.
Sec. 40-251. Transfer of city employees to retirement plan
(1) This section was rewritten, however, it still allows
police officers and firefighters who are reclassified to
positions other than firefighter or police officer to be
automatically transferred to this plan along with the
transfer of their creditable service.
-24-
Sec. 40-252. Creditable service.
(1) This section was streamlined and .now encourages
operational matters and interpretations to be codified as
administrative rules. Creditable service consists of all
time spent in service plus other time for which
membership service is received. Deletions were made to a
provision allowing service previously obtained as a
member in the City general employees' retirement plan or
City employees' retirement system to be included as
creditable service in this plan.
(2) Provisions to this section were deleted which allowed the
tolling of creditable service when in a non -pay status
and did not allow credit for service in situations where
employees were continuously absent without pay. .The
section, after rewrite, allows the Board to develop rules
to determine the amount of service in any given year.
This gives.the plan more flexibility to determine what
should be considered service credit in situations where
it may be proper to grant credit but where it was
previously disallowed under the ordinance.
(3) A section was added allowing the Board to adopt rules and
regulations to verify membership in given situations.
-25-
Sec. 40-253. Dismissal for willful misconduct.
The section as previously written could have led to Constitutional
challenges due to its vagueness in interpreting what constituted
willful misconduct. A definition for "willful misconduct" was added
to this section defining it as any offense enumerated in Florida
Statute Section 112.3173 as that statute now sets the standard for
when a pension should be forfeited.: Members dismissed from
employment for willful misconduct forfeit all rights to benefits
other than accumulated contributions. If the dismissal is reversed,
the member may elect to buy back service in the plan. Another
provision was added to the section excluding resignation as a
forfeitable event — The section also tow requires the Board to adopt
administrative rules providing a due process procedure to determine
forfeiture matters.
Sec. 40-254. Paybacks for membership credit.
(1) This section was rewritten providing 'for the procedure
for paybacks for membership credit. The procedure was
simplified and rationalized as a result of the rewrite.
The section. now allows any reemployed former member to
restore previous membership service as long as that
-26-
:2:
person had not been involuntarily dismissed. Previously,
the ordinance only allowed -former members not within
five (5) years of reaching normal retirement age, whose
membership had not been terminated for a period more than
three ( 3 ) years, and who had f ive ( 5 ) or more years of
creditable service, from purchasing service credit. The
section now mandates the Board to promulgate an election
form for members wishing to exercise the payback option
along_with rules governing the payback procedure.
(2) Credit for continuous service as a nonmember. This
section was rewritten allowing individuals with prior
service with the City to purchase up to four (4) years of
prior nonmembership service. All purchases must be
completed within five (5) years of the election to
purchase the time. The Board must develop a policy
providing for the election and purchase of this benefit.
The rewrite provides the Board with more flexibility in
determining the procedure for payment for the benefit.
Stringent procedures were in effect prior to the rewrite
handcuffing the Board from providing options more
suitable to an individuals ability to purchase the
benefit. In case of a disability during the period of
repayment, contributions are refunded to the member.
-27-
(3) PRIOR TO REWRITE Credit for previous employment for
certain laborers, watchmen or custodial workers.
outdated provisions relating to the ability of this class of
workers to receive membership credit if employed between 1955 and
1962 were deleted as there are no members of the plan who qualify
for the credit. The claim for credit needed to be filed before
May, 1977.
(3) SUBSEQUENT TO REWRITE Credit for military
service.[previously section (4)]
The entire section relating to credit for military service .was
rewritten, updated, .and consolidated to conform to. Federal and
State law. All pension rights granted to veterans under federal and
state law providing for purchase of time served in the military are
applicable to this plan. Additionally, the plan provides for
members who have served active military duty but who have not had
their service with the City interrupted, to purchase up to four (4)
years of service credit. Repayments under this provision must be
purchased within five (5) years of the election.
(4) Credit for maternity/medical leave. [previously section
(5)]
-28-_
The section previously allowed members absent for maternity or
other medical purposes to apply for membership credit for the
period -of the leave. The section now complies with Federal and
State law providing that no member who takes an unpaid leave of
absence for maternity or medical purposes shall suffer a break in
membership and they shall be allowed to purchase credit for the
time out on leave.
(5) Restoration of service credit for prior continuous
service.[previously section 71
This section was renumbered and rewritten setting forth the
situations where members may purchase prior service with the City
if their membership in the plan was delayed due to administrative
error. .No interest is to be charged if the error was caused by the
City or Board..
(6) PRIOR TO REWRITE Credit for disability retirement upon
restoration of beneficiary to service.
This section was deleted as the reinstatement of disability
retirees by the Board has been eliminated as a means of limiting
increased liability should an employee be re-injured while at a
higher rate of pay.
(6) - SUBSEQUENT TO REWRITE Purchase of additional service upon
retirement. [previously section (8)]
-29-
This section was renumbered and rewritten allowing a member who has
continuous service to -purchase up to a maximum of three (3)..years
of service at the time of retirement. Purchase is made utilizing
the amount of leave balance due to member upon retirement with any
shortfalls to be paid by member in a lump sum.
(7) Re-employment after an early retirement window.
A section was added to the plan disallowing an enhancement to
retirement benefits earned during the period of re-employment.
Sec. 40-255. Benefits.
(a) Service retirement.
(i) This section was rewritten deleting provisions outdated
and no longer applicable as the basis for a service
retirement. The section now allows a member to elect a
service retirement upon eligibility as subsequently
defined in the foregoing sections. The section also
requires the request for retirement to be made upon
written application.
(ii) The current requirements for a normal retirement are set
forth in this section. A member is eligible for a normal
service retirement upon either completing ten (10) years
of credited service and the attainment of age fifty-five
(55), or the completion of a combination of years of
-30-
I
creditable service plus attained age equaling seventy
(70). It clarifies the requirement that a member complete
ten (10) years of service before being eligible for a
service retirement.
(iii) The amount of the service retirement benefit section was
rewritten, to conform to the current three (3) percent
benefit. Several other provisions relating to different
forms of a service retirement were deleted as no longer
applicable due to the changes in the multiplier for all
employees. The plan was substantially simplified due to
the changes.
(iv).This section now provides that a member may choose
any of the benefit options enumerated in Sec. 40-
255 (i) .
(b) Early service retirement. [previously section (c)]
(2) Early retirement applicants may choose any of the benefit
options set forth in Sec. 40-255(1).
(3) Vested right to retirement.
(1) This section was rewritten to consolidate the different
options available to a vested member who had not reached
normal or early retirement eligibility. Previously, the
benefit available to such a member was dependent upon the
date the member was no longer considered in service
-31-
J
Presently, a member not entitled to retire on either a
service retirement or early service retirement who
ceases to be an employee for reasons other than death or
willful misconduct may elect to continue as a member not
in service and retire upon attainment of age fifty-five
(55). The member must have completed ten (10) years
service at the time they ceased to be an employee and
not withdrawn their contributions.
(2) Provisions to this section provide that if a member not
in service elects to withdraw his/her contributions, they
will be .paid their accumulated contributions at the time
they ceased to be an employee. A provision was deleted
excluding amounts contributed to the COLA fund from being
returned to the member.
(3) This section provides that if a member not in service
dies prior to normal retirement eligibility, the
designated beneficiary is paid the -amount of accumulated
contributions at the time the member. ceased .to be an
employee, plus interest from the date of death. The
section excluding the amount credited. to the COLA fund
was deleted.
(4) This section previously provided that if a member elected
a vested right to retirement and ,thereafter became an
-32-
2
employee more than three (3) years after separation, the
member became a new member of the retirement plan. This
provision was deleted. Changes were made so that in this
situation, the member would now be eligible to combine
prior and new service for purposes of the Rule of Seventy
(70) retirement. A second period of vesting is no longer
required. The changes made provide an added incentive to
return to service with the City, allowing the City to
attract experienced candidates for employment.
(5) The options available for different benefits allowable to
members in this situations are set forth in Sec. 40-
255 (i) .
(4) Ordinary disability retirement.
(1) This section was entirely rewritten to give effect to the
changes made to the right to benefits and the.amount of
benefits available to disabled employees. Prior to the
changes and rewrite, the amount ofbenefits available was
dependent on the date the disability retirement was
sought. The section now allows any vested member of the
plan becoming permanently and totally incapacitated from
a cause other than the performance of duty to apply for
disability retirement.
-33-
• . •
(2) This section defines disability under the plan as being
permanently and totally unable to engage in any useful
and efficient service within.the City.
(3) This section now provides that a pre-existing condition
is a basis for denying a disability retirement.
Furthermore, the Board must determine if a position
exists within the City for further employment of the
applicant. If the member refuses to accept the position,
it shall. be evidence that the disability is not total.
(4) Benefits are to commence .on the date disability is
determined to exist by the.Board.
(5) The procedure for determining disability is set forth in
the provisions for the determination of a service -
incurred disability.
(6) This section gives the Board the right to have disabled
members•to submit to further medical exams when the Board
has reason to.believe that the member is committing a
fraud on the Plan.
(7) Benefits shall cease if the Board determines that a
disabled member is no -longer disabled.
(8) Benefits payable under this section are the greater of
ninety (90) percent of the product of three (3) percent
-34-
multiplied by years of credited service, or.thirty (30)
percent of average final compensation.
(5) Service -incurred disability retirement.
(1) This section was rewritten as a result of changes made to
the benefits available to members suffering a service -
incurred disability and the procedure to be implemented
by the Board in determining whether an applicant is
disabled. The member must have suffered an injury in the
performance of their duties rendering the member disabled
for useful and efficient service with the City.
(2) A member is disabled under this section if the physical
or mental impairment was the natural and proximate result
of an accident, injury or illness which occurred while in
the performance of duty; provided.that.the disability was
not caused by gross negligence on the part of the member.
(3) This section now sets forth the initial procedures for
processing an application for disability,. including the
medical requirements of the process. The section
requires the applicant to submit to a medical exam
whereby the physician shall determine if the member is
permanently and totally disabled.
-35-
12111
•
(4) This section .sets forth the due process elements of the
process, including. the hearing procedures available to -
applicants.
(5) This section allows the Board to prescribe rules of
procedure to implement the manner in which disability
hearings are conducted.
(6)' This section now defines "gross negligence", disallowing
benefits if the underlying accident occurred duo to the
gross negligence of the applicant.
(7) Except for disabilities arising from the causes outlined
in paragraph (11), the benefit available to a person
suffering a service -incurred disability is sixty-six and
two-thirds (66-2/3) percent of"a member's final average
compensation or a member's compensation in the year
immediately preceding the disability, whichever is
greater. This benefit is payable for life.
(8) Upon the death of a member receiving benefits under this
section, the spouse of the member shall receive payment
equal to forty (40) percent of the. member's monthly
retirement allowance during the lifetime of the spouse.
(9) This section authorizes the Board to have members submit
to medical exams when it has reason to believe That the
-36-
disabled member is no longer entitled to benefits under
this section.
(10) This section allows the reduction of benefits when the
amount of workers' compensation benefits and benefits
under this section received exceeds average monthly
compensation. Lump sum workers' compensation benefits
paid shall be treated as if they were paid on a monthly
basis.
(11) A person suffering a disability on account. of heart
disease, hypertension, or tuberculosis shall receive
benefits equal to those paid for.an ordinary disability,
with a minimum of forty (40) percent of average final
compensation.
(f) Ordinary death benefit; post-retirement death benefits.
(1) This section was rewritten. The benefit payable where
.the member had three (3) or more years of creditable
service is still basically the same; fifty (50) percent
of compensation of the member for the year immediately
preceding death. The section now provides that the
beneficiary shall also receive accumulated contributions
of the member in this circumstance and when a member who
is deceased had less than three (3) years creditable
service.
-37-
(2). Benefits that are now obsolete were deleted from the
ordinance upon rewrite. These benefits were payable upon
the Rule .,of Seventy (70) and Seventy Five (75).
Subsequent to the rewrite, a member eligible for early or.
normal retirement who dies shall be treated as if he or
she retired on the date preceding death. The member's
spouse now has the option of either:
(a) Forty (40) percent of the member's monthly
retirement allowance, together with fifty (50)
percent.of the member's compensation in the year
immediately preceding death; and
(b) in the event a member had served in a position set
forth in this subsection for a period of at least
three (3) years prior, to May 23, 1985, an
additional one (1) percent of final average
compensation multiplied by the number of years
service in 'that position, up to a maximum of ten
(10) years; or
(c) a return of member's accumulated contributions with
interest together with fifty x(50) percent of
member's compensation in the year immediately
preceding death. This option is payable whether or
-38-
12111
•
0
not there is a surviving spouse, to a member's
designated beneficiary or estate.
(3) If a retired member dies prior to receiving twelve (12)
monthly payments, and prior to the effective date of any
optional allowance,
a
benefit
equal to
the unpaid
difference of twelve
(12)
monthly
payments
is payable to
a designated beneficiary or estate.
(1) Service -incurred death benefit.
This -section was rewritten, simplifying the manner in which this
benefit is.payable and to whom. The benefit payable in cases where
the member died in service is now one-half (M) of the member's
average final compensation, paid yearly in monthly installments,
together with accumulated contributions, payable in a lump sum.
Benefits are payable to persons in the order set forth below:
(1) To the spouse until their death (the provision
ending the benefit upon remarriage was
terminated as it was a restraint on marriage);
(2) If no spouse or if the spouse died before the
youngest child of the member attained age
eighteen (18), to the children of the member
under the age of eighteen (18) in equal
shares;
-39-
12111
• ®.
(3) If no spouse•or children under eighteen (18),
then to a dependent father or mother for life.
If no spouse, children under eighteen (18) or
dependent parents, then fifty (50) percent of
the member's compensation in the year
immediately preceding death to their estate,
along with accumulated contributions.
(2) Return of contributions.
(1) This section was rewritten so it now provides
for a return of contributions upon demand of a
member ceasing to be an employee. Creditable
service is.. waived upon return of
contributions.
(2) If a member has been granted. a retirement
benefit, the member is not entitled to a
return of contributions except as provided
otherwise in this plan.
(The rewrite deleted provisions relating to rollovers of
distributions, which have been relocated to the tax provisions of
the plan; and limitations of disability benefits upon
reexamination, which are now properly included in the disability
section of the ordinance.)
-40-
(1) Optional allowances. (Previously section 1 but now
i because of deletions after rewrite)
(1) The section was rewritten to simplify and
clarify the optional forms of retirement
benefits available under the plan.
(2) The options available are as follows:
Option 1: Equal payment survivor
annuity. Member receives a reduced
benefit for life with an equal sum
paid to member's beneficiary at the
death of member. If surviving
spouse is beneficiary, the reduction
is ten (10) percent of the member's
benefit. If any person other than
the surviving spouse is the
beneficiary, the reduction is based
on the actuarially equivalent sum.
Option 2: One-half payment survivor
option. Member receives reduced
benefit payable for life with one-
half of the member's benefit being
paid to a designated beneficiary at
-41-
the death of the member. Reduction
is two (2) percent if beneficiary is
surviving spouse, or actuarial
equivalent if not the surviving
spouse.
Option 3: Return of contributions
and reduced pension. Member receives
a return of contributions, excluding
amounts credited to COLA fund,
together
with
a
monthly
service
allowance
equal
to
one-half
(%) of
the amount to which the member would
have been entitled under this plan.
No survivor benefit.
Option 4: Life annuity. Member
receives normal monthly service
retirement allowance plus additional
five (5) percent payable for the
life of the member. Payment is
guaranteed for one (1) year; no
survivor benefit.
Option 5: Surviving spouse annuity.
Member receives an unreduced
-42- _
�.�111
retirement payment for life,
surviving spouse receives forty (40)
percent of the member's retirement
allowance payable during the
lifetime of the spouse.
(10) Changes in beneficiary.
A member who selects a survivorship option may designate a new
spousal beneficiary without a change in benefit costs.
(k) Re-employment of retirees.
This section was added suspending the benefits payable under the
plan for the period of re-employment.
Sec. 40-256. Cost -of -living allowance.
(1) This section was rewritten as the COLA benefits were
changed. The ordinance now requires a four (4) percent
COLA benefit every October 1, with minimum and maximum
limitations established. Retirees exercising the return
of contributions and reduced pension option receive a
COLA benefit, with a minimum and maximum amount
established.
Sec. 40-257. Adiustment in benefits.
-43-
Unnecessary provisions in this section were deleted from 'the
ordinance. The section still provides for members who had a vested
right to benefits prior to May 23, 1985 -to be entitled to the
additional benefitsdue under the prior provisions of the plan.
Sec. 40-258. Assignments and loans prohibited.
The section remains the same with regard to assignments of. a
benefit, which are still not assignable under the plan, except with
respect to alimony, child support, or medical payments.to a former
spouse. The,section complies with.what is required under the laws
of the State of Florida. -A provision was added prohibiting loans
to participants in the plan.
Sec. 40-259.. Protection against fraud.
No changes were made to this section which advises that any acts
of fraud committed upon the plan are punishable as provide in'the
City of Miami Code, Section 1-13.
Sec. 40-260. Errors.
No changes were made to this section allowing the Board to correct
errors made in determining and paying the amount of benefits due
under the terms of the plan.
-44
jk:;'
marriage. The Board may intervene in any such action to ensure.
that the distribution called for is consistent with the terms of
the plan. The parties. may consent to the entry of an order
distributing benefits if not inconsistent with the terms of the
plan.
Sec. 40-264. General conditions.
This section previously stated that the plan shall remain tax
qualified pursuant to the Internal Revenue Code. This provision
was transferred to Sec. 40-262 (Compliance with Internal Revenue
Code). The section now provides that the Board may sue or be sued
as.an entity. The section also grants the Board -the power to amend
or supplement the plan, as long as the amendment doesn't impair
accrued benefits.
Sec. 40-265. Excess benefit plan.
This section was added to the plan upon rewrite due to the
implementation of Section 415 of the Internal Revenue Code relating
to excess benefits and reduction thereof. Excess benefits above
the limits permitted by Section 415 of the Internal Revenue Code
shall be funded from the City General Fund, paid along with the
City's annual contribution to normal pension costs, and be
deposited in accounts separate from the City's normal pension
-46-
12111
Sec. 40-261. Bonding; fiduciary insurance.
No changes were made to this section requiring the Board to post a
bond to protect the assets of the plan against loss by reason of
fraud or dishonesty. The Board is also required to purchase
insurance to cover liability for the plan and its trustees.
Sec. 40-262. Compliance with the Internal Revenue Code.
This section was added to specifically allow the plan to remain a
qualified plan under Internal Revenue Code provisions relating to
limitations on compensation as to amount of benefits and when
payable. The plan language also sets forth the requirements for
carrying out rollover distributions in compliance with the Revenue
Code.
Sec. 40-263. Distribution of marital interests in the plan;
Intervention in legal proceedings affecting the plan.
(previously entitled "Limitation on compensation"- section
consolidated within present Sec. 40-262).
This section was added to the ordinance authorizing the Board,.to
review all matters arising in which a portion of a member's benefit
becomes payable to another as a result of a dissolution of
-45-
12411
contribution accounts. The excess benefits shall be payable to
each eligible member on a -monthly basis.
Sec. 40-266. Transfer of Accumulated Leave.
This section was added to the plan allowing members with
accumulated leave payable upon separation with. the City to transfer
the leave to the plan to purchase additional service credit under
the limitations set forth in this section.
-47-
12:1 _