HomeMy WebLinkAboutR-00-0657J-00-631
7/17/00
RESOLUTION NO. 00— 6057
A RESOLUTION OF THE MIAMI CITY COMMISSION
ESTABLISHING THE EXCESS BENEFIT PLAN TO ALLOW
ELIGIBLE MEMBERS OF THE CITY OF 'MIAMI
FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT
TRUST ("FIPO") AND CITY OF MIAMI GENERAL
EMPLOYEES' AND SANITATION EMPLOYEES'
RETIREMENT TRUST ("GESE")" TO CONTINUE TO
RECEIVE THOSE RETIREMENT BENEFITS TO WHICH
THEY ARE -ENTITLED PURSUANT TO.THE CODE OF THE
CITY OF MIAMI, FLORIDA, AS AMENDED, WHICH
BENEFITS WOULD OTHERWISE BE LIMITED BY THE
PROVISIONS CONTAINED IN SECTION 415 OF THE
INTERNAL REVENUE CODE; PROVIDING FOR PAYMENT
OF SAID BENEFITS; AND FURTHER APPOINTING A
COMMITTEE TO ADMINISTER SAID PLAN.
WHEREAS, a defined level of benefits are available to
eligible members of the City of Miami Firefighters' and Police
Officers' Retirement Trust and the City of Miami General
Employees' and Sanitation Employees' Retirement Trust, pursuant
to Chapter 40, Article IV, Divisions 2 and 3,of the Code of the
City of Miami, Florida, as amended (the "Code"); and
WHEREAS, Section 415 of the Internal Revenue Code limits the
pension benefits an organization may pay an eligible employee
unless the organization establishes a qualified governmental
excess benefit plan; and
WHEREAS, the-- City Commission, pursuant to applicable
Internal Revenue Code provisions, wishes to establish a qualified
CITY COI ISSION
MEETING OF
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governmental excess benefit plan to continue to cover the
difference between the allowable pension to be paid and the
amount of the defined benefit so the benefits for eligible
members are not diminished by changes in the Internal Revenue
Code;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2.
An Excess
Benefit
Plan is hereby established
to allow eligible
members of
the City
of Miami Firefighters' and
Police Officers'
Retirement
Trust ("FIPO")
and City of Miami
General Employees' and Sanitation Employees' Retirement Trust
("GESE") to continue to receive those retirement benefits to
which they are entitled pursuant to the Code of the City of
Miami, Florida, as amended, which benefits would otherwise be
limited by the provisions contained in Section 415 of the
Internal Revenue Code, and shall be implemented as follows:
(A) Payment of the City of Miami's contribution of excess
retirement benefits for eligible members of FIPO and
GESE above the limits permitted by the Internal Revenue
Code shall be:
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Page 2 of 4
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(i) funded from the City of Miami General Fund;
(ii) 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
(iii) be deposited in two separate accounts
established specifically for FIPO and GESE 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 actuaries for both the FIPO and GESE Boards of
Trustees shall calculate the amounts necessary to fund
the defined benefit plans giving effect to the
reductions caused by the implementation of Section 415
of the Internal Revenue Code.
(C) The excess benefits shall be paid to each eligible
member of FIPO and GESS 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.
Section 3. The Boards of Trustees for FIPO and GESE are
hereby appointed as the respective committees to administer the
Excess Benefit Plans for the sole purposes of receiving the City
of Miami's excess benefit contributions and disbursing said
contributions to eligible members.
Page 3 of 4 ;`
Section 4. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor.'/
PASSED AND ADOPTED this 27th day of July 1 2000.
JOE CAROLLO, MAYOR
On accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of
this legislation by signing it in the designated place provided, said legislpnlion now
becomes effective with the elapso of tom (10) days fro e date, of Com '-,S-,'Cn etc.:'On
regarding same, without the Mayor exert' 'reg 0
ATTEST: Walter (1–F-de—m6n, City Clerk
WALTER J. FOEMAN
CITY CLERK
TO FORM AND CORRECTNESS
VIPOVILARELLO
TTORNEY ��p
59:LRC:BSS
If the Mayor does not sign this Resolution, it shall become effective at
the end of ten calendar days from the date it was passed and adopted.
If the Mayor vetoes this Resolution, it shall become effective
immediately upon override of the veto by the City Commission.
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25ACITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and DATE: JUL 18 2000 FILE:
Members of the City Commission
SUBJECT: Resolution Establishing an
Excess Benefits Plan — FIPO
And GESE Trusts
FROM: REFERENCES:
City Manager
ENCLOSURES:
RECOMMENDATION
The Administration recommends that the City Commission approve the attached
Resolution that establishes an Excess Benefit Plan for both the GESE Trust and FIPO
Trust that will allow a retiree to continue receiving the retirement benefit provided by
Ordinance which would otherwise be reduced under the Internal Revenue Service Code,
Section 415.
BACKGROUND
Under Section 415 of the IRS Code, certain limits are placed on the amount of retirement
benefits that a pension plan is allowed to pay a beneficiary, i.e., even though the
provisions of a pension plan provide that a given retiree is eligible for an annual pension
of "X", it cannot be paid to the retiree if "X" exceeds the 415 limits.
In order to address this issue, the IRS Code was modified to provide that to the extent that
earned benefits for which a retiree is eligible under the provision of a pension plan
exceed the revised 415 limits, they may be paid to that retiree through a qualified Excess
Benefit Plan.
The proposed Resolution establishes an Excess Benefit Plan for both the GESE and FIPO
Trusts to remove the obstacle that could prevent our retiring employees from receiving
their full benefits as provided by Ordinance. The Excess Benefit Plans will be
administered by a committee that shall be composed of each Trust, respectively. Under
the Excess Benefit Plan, the City will contribute the excess benefit above the allowed
limitations to the Excess Benefit Plan at the same time it makes its annual payment for
costs to the two Trusts. The two Trusts will continue to pay the full pension benefits
required by Ordinance to the retiree, and the City will realize a deduction in normal
pension costs in the same amount.
This resolution is to be effective upon approval to permit the respective Boards to
continue providing the retirement benefits currently granted by Ordinance. Because the
City Commission is not meeting during the month of August, deferral of this issue would
delay implementation until September 2000.
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