HomeMy WebLinkAboutO-11752•
0
J-99-126
1/15/99
ORDINANCE NO.
11752
AN EMERGENCY ORDINANCE OF THE MIAMI CITY
COMMISSION AMENDING SECTIONS,40-191, 40-195,
40-196, 40-202, 40-203, AND 40-205 OF THE
CODE OF THE CITY OF MIAMI, FLORIDA, AS
AMENDED, BY PROVIDING FOR AN INCREASED
PENSION MULTIPLIER; A RULE OF 64 RETIREMENT;
A CAP FOR RETIREMENT ALLOWANCES; A DEFERRED
RETIREMENT OPTION PROGRAM (DROP); A REDUCED
EMPLOYEE CONTRIBUTION; THE ESTABLISHMENT OF
INDIVIDUAL CONTRIBUTION ACCOUNTS; REMOVAL OF
INVESTMENT RESTRICTIONS TO THE EXTENT
PERMISSIBLE BY LAW; AND RELEASING THE CITY OF
MIAMI FROM THE OBLIGATION OF INVESTMENT
EXPENSES; CONTAINING A REPEALER PROVISION AND
A SEVERABILITY CLAUSE; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the FOP, Lodge No. 20, collective bargaining agent
for members in Lodge No. 20, and the IAFF, Local 587, collective
bargaining agent for members in Local 587 (the "Parties"), have
agreed to increase the pension multiplier; and
WHEREAS, the FOP, Lodge No. 20, collective bargaining agent
for members in Lodge No. 20, 'have agreed to a rule of 64 meaning
a computation consisting of the sum of a member's age and length
of service which sum shall permit normal service retirement when
a member's age and service years equal at least 64; and
WHEREAS, the Parties have agreed to retirement allowances
not exceeding 100% of the member's average final compensation for
11752
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those persons who retire on or after October 1, 1998; and
WHEREAS, the Parties have agreed to a deferred retirement
option program to include a forward deferred retirement option
program (DROP) and a benefit actuarially calculated deferred
retirement option program (BACDROP); and
WHEREAS, the Parties have agreed to change member
contributions to the pension fund; and
WHEREAS, the Parties have agreed to establish individual
contribution accounts; and
WHEREAS, the Parties have agreed to remove investment
restrictions to the extent permissible under the law; and
WHEREAS, the Parties have agreed that the investment return
assumption shall be net of investment expense assumptions
effective as of the actuarial valuation for October 1, 1998;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Ordinance are hereby adopted by reference
thereto and incorporated as if fully set forth in this Section.
Section 2. Sections 40-191, 40-195, 40-196, 40-202, 40-
203, and 40-205 of the Code of the City of Miami, Florida, as
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amended, are hereby amended in the following particulars)/:
"Chapter 40"
PERSONNEL
ARTICLE IV. PENSION AND
RETIREMENT PLAN
DIVISION 2. CITY OF MIAMI
FIREFIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
Sec. 40-191. Definitions.
Average final compensation shall mean.....
BACDROP Ghall mean Benefit Actuarially Calculated
TnafPrred Retirement Qptinn Program.
Beneficiary shall. mean any person receiving a
retirement allowance or other benefit from the
retirement system.
Creditable service shall mean membership credit upon
which a member's eligibility to receive benefits under
the retirement system is based or upon which the amount
of such benefits is determined.
DROP shall mean Deferred Retirement Option Program —
FOP shall mean The Fraternal Order of Police, Lodge
#20.
1/ Words and/or figures stricken through shall be deleted. Underscored
words and/or figures shall be added. The remaining provisions are now in
effect and remain unchanged. Asterisks indicate omitted and unchanged
material.
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•
IAFF shall mean the International Association of.
Fire Fighters, AFL-CIO, Local 587.
MA shall man an individual contribution account_
Sec. 40-195. Trust fund.
(c) Investments.
€o-"h ice bseetien (e) (3) belew, tit fun
may be invested in:
of the
a Bends,,
[� etes er e�her obligatiens
of its or 1Zhese
Tgnited
States a geneies
y
by United States er for whie
guaranteed
the
y
edgr?
Lire—ere�ef
the United't �"at pledge
.�
ti, It the •,, i el ninterest
f e t
n of
1 1
her the fere-_
e3e dividends
tee , any ef
leng
as the guidelines e -
b . Ae eeunt s and—eertifieat
ineeEperated .indeE the laws of this state eE
any national bank organized under the laws e f
the United —Saar- and —a eyed te--de
business and -mod tua�6ed= this . t .. } e the
rii �i. state, �.v
-4- 11752
e*ems thattsueh-eert
eat a s—e
sa earn i e s of to
et eared by
'ram any e f l:l y
armed--S t at e9 ge emffie
be in the
form ef demmingle
rerregeig may
aeee s as—=eeg aS the
paragraph are fnel--
guidelines of t
e.Net�e s—s eeared-by f j:Lc^r, fnertgageS 911 real
preperty insured er guaranteed by the
Federal Hemming ,�
ing Tm; ns ra er the
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11752
-�� in aeeerElan@e with the f-Arcg63i� standards a!imitations, the bea
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f
aequive every kind ef- preperty and investment
wire-perse3s eef prudence, diisseretlen---an
-6- 11752
Sec. 40-196. Contributions.
(a) Member contributions. Effective January 9,
1994, and thereafter, regular contributions of each
member of the retirement system shall be made each pay
period at the rate of ten percent of each member's
earnable compensation. Regular eentribuionsrequire-
IN,
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-7- . 11752
shall be disbursed aG provided under tbi,
IRS Cndp Disbursement of T A funds may
only occur upon separation or as mandated
under the IRS Code_
*
(b) City contributions......
* * *
• • • - • • : • - • - 11 tzp • 11 IVA• •
4-34-14_)_
* * *
-F�LSL
4-54-� The calculation for normal costs shall be
performed separately by actuaries for the city
and for the retirement system each using the.
method set forth in subsections (2), (3) and
L4)- above....
*
* * *
* * *
Sec. 40-202. Paybacks for membership credit.
* * *
(7) Creditable service years purchase from leave
balance. A retiring member who does not
participate in the. DROP and retires under
service retirement, = rule of 64 retirement,—
e- rule—ef— 70- ^} A remen may purchase from
available leave balances whole years of
creditable. service up to a maximum of three
years. The purchase of creditable service under
-8- 11752
this option may not be utilized for eligibility
for either service retirement, = rule of 64
retirement, er rule—ef 70 rellairefae . Once the
leave balances have been applied toward the
purchase of whole years of creditable service,
and the amount thereof actually paid to and
received by the trust, the member may purchase
the balance of the three years by a lump sum
cash payment to the trust. Leave balances
shall be determined in accordance with the
applicable labor agreement and/or leave payoff
practices. The cost of creditable service
purchase shall be the prorata actuarially
determined present value based upon the
employee's average final compensation used to
determine the member's retirement benefit.
This benefit shall be available using after tax
value of the employee's leave balance; if, in
the future, the issue of income taxes is
resolved, then it will be available using pre-
tax value of the employee's leave balances. No
benefit provided under this subsection shall be
effective unless and until full payment in
accordance herewith is made.
Sec. 40-203. Benefits.
(a) Service retirement.....
14.)
Rw
u•• • •
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{4}151 A member eligible 'for service retirement may
choose any one of the optional allowances
available to him or her on the date of
-9- 11752
retirement, as provided in subsection 4-1+ (m)_
{e} Rule of 64 retirement.
-10- 11752
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(e) Vested right to retirement.
(2) A member electing to become a member not
in service on or after October 4, 1991,
and before January 9, 1994, shall be
entitled to receive a retirement allowance
equal to 2.75 percent of member's average
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final compensation multiplied by years of
creditable service which amount shall be
paid yearly in monthly installments, upon
attainment of normal retirement age. A
member electing to become a member not in
service on or after January 9, 1994, shall
be entitled to receive a retirement
allowance equal to 2.75 percent of the
member's average final Icompensation
multiplied by the average final
compensation multiplied by the. years of
creditable service for the first 15 years
of such creditable service. Such member
shall also be entitled to receive a
retirement allowance equal to three
percent of member's final average
compensation multiplied by the years of
creditable service in excess of 15 years,
upon attainment of normal retirement age.
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(f) Ordinary disability retirement.
(2) a. Upon retirement for ordinary disability.....
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(h) Ordinary death benefit.
(2) Notwithstanding any provision in this division
to the contrary, in the event a member who has
become eligible for service, early service or
rule of -74 LA retirement but has not retired
dies,...
(m) Optional allowances.
(1) Option 6: . Any member upon service, early
service or rule of --kG LA retirement may elect
to receive benefits in one of the following
three forms,...
(p) Deferred retirement option program.
(2) A firefighter's creditable service, accrued
benefits and compensation calculation shall be
frozen upon retirement. The amount of the
monthly benefit shall be determined based on
the creditable service, average final
compensation, and retirement option selected in
accordance with section 444- -ml herein.
Average final compensation shall be based on
the single highest year preceding participation
-13- 11752
in the DROP.
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participation in the DROP, by using fnrms and
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shall he frnzen and shall be based nn the
single highest y-ar preceding participatinn in
17hp- DROP, as the bagis of calculating the DROP
payment- p•I commpnrpmpnt of part i ri pation
in
fnr thatpartiripant ghall- - a q 1
participant •' earning 1• I'
additional peI • 1 rrp-dif forthe purposesof
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-16- 11752
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Sec. 40-205. Adjustments in benefits.
* * *
(1) Election of increased benefit of class A
membership.
a. Any member who belonged to the Miami city
employees retirement system..:.
1.Any member may waive payment of the
forgoing amount, in which case, upon
service, early service, rule of -74 b4 or
ordinary disability retirement,...
* * *
(2) Executive benefit. Any members who, on or
before May 23, 1985, had a vested right to
receive an additional retirement allowance
equal - to one . percent of average final
compensation under the provisions of the Miami
city employees'. retirement system, presently
known as the City of Miami Firefighters' and
police officers' retirement trust, which
benefit was 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 *G LAI' retirement
pursuant to this division...."
Section 3. All ordinances or parts of ordinances insofar
as they are inconsistent or in conflict with the provisions of
this Ordinance are hereby 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 hereby 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
-17- 11752
of Miami, and upon the further grounds of the necessity to make
the required and necessary payments to its employees and
officers, payment of its debts, necessary and required purchases
of goods and supplies, and to generally carry on the functions
and duties of municipal affairs.
Section 6. The requirements of reading this Ordinance on
two separate days is hereby dispensed with by an affirmative vote
of not loss than four -fifths of the members of the Commission.
Section 7. This Ordinance shall become effective
immediately upon its adoption and signature of the Mayor2-1 and
shall have retroactive effect to the respective dates set forth
within for determination of pension benefits.
PASSED ON FIRST READING BY TITLE ONLY this 26th day of
January , 1999.
JOE CAROLLO, MAYOR
,mcordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of
legislation by signing it in the designated place provided,, said legislation now
domes effective with the elapse of ten (10) days from the date of Commissfcn action:
wording same, without the Mayor exercii et .
ATTEST:
Walter J. a an, City Clerk
WALTER J . FOXA(AN, CITY RK.
AS T FORM CORRECTNESS
"hRC : CSK
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.
-,g- 11752
0 0
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and
Members of the City Commission
DATE:
SUBJECT:
.............. .
FROM: to/aldH. Warshaw
REFERENCES:
City Manager
ENCLOSURES:
RECOMMENDATION
12
JAN 1 5 19999 FILE :
FIPO Pension Ordinance
Amendments
It is recommended that the City Commission adopt the attached emergency ordinance
amending Article IV of Chapter 40, entitled "Pension and Retirement Plan, Division 2.
City of Miami Firefighters' and Police Officers' Retirement Trust.
BACKGROUND
The emergency ordinance incorporates into the City's Pension Ordinance the terms and
conditions that were negotiated by and between the City of Miami and the Fraternal
Order of Police (FOP), Lodge No. 20, and the International Association of Firefighter's
(IAFF), Local 587. Additionally, the FIPO Pension Board has requested to replace the
current investment requirements with investment language recognizing the prudent
person rule which codifies the standards that the FIPO Pension Board has been applying
and gives the Board the opportunity to take advantage of any investment vehicles that are
deemed appropriate under Florida state statutes.
The agreed upon changes provide for the following: an increase in the pension multiplier
from 2.75% to 3% for the first 15 years of service for FOP members and 3.5% for years
of service in excess of 15 years for both FOP and IAFF members; a cap on the
employee's retirement allowance of 100% if such percentage has not already been met; a
change of the eligibility rule of 70 to a rule of 64 for IAFF members; a reduction in the
employee's contribution rate to 7% effective October, 1999, and in future years an
employee contribution of 7% or equal to the City's contribution, whichever is less; and
the establishment of a FORWARD DROP and a BACDROP for FOP members and a
BACDROP for IAFF members. Additionally, the parties have agreed that the investment
return assumption will be net of any investment expense assumption, which was
previously a cost to the City.
NATURE OF EMERGENCY
The emergency ordinance is necessary to effect the benefit provisions for those police and
fire employees desirous of immediate retirement.
DHW/RSW/rsw
11752
0 n "9
- 00
MIAMI DAILY BUSINESS REVIEW -
Published Daily except Saturday, Sunday and CITY OF MIAMI, IDA
Legal Holidays I LEGAL N®TICfE
Miami, Dade County, Florida. i
STATE OF FLORIDA All interested persons will take notice that on the 26th day of Janu
COUNTY OF DADE: ary, 1999, the City Commission of Miami, Florida adopted the following ,
Before the undersigned authority personally appeared 'titled ordinances:
Sookle Williams, who on oath says that she is the VicePresidly Business ORDINANCE NO. 11751
Review eflkla Miami Review, a daily (except Satturnt of Legal Advertising of the Miami iday, Sunday j AN EMERGENCY ORDINANCE AMENDING- ORDINANCE
and Legal Holidays) newspaper, published at Miami in Dade NO: 11659, WHICH ESTABLISHED. INITIAL RESOURCES
County, Florida; that the attached copy of advertisement, l AND APPROPRIATIONS FORA NEW SPECIAL REVENUE I
being a Legal Advertisement of Notice in the matter of j FUND ENTITLED: "EAST LITTLE ,.HAVANA MINORITY
! YOUTH DIVERSION PROGRAM," TO INCREASE THE
CITY ® MIAMI APPROPRIATIONS FOR SAID FUND IN THE AMOUNT OF
$70,000, CONSISTING OF FUNDS.RECEIVED AS A GRANT
FROM THE FLORIDA DEPARTMENT 'OF JUVENILE
ORDINANCE NO. 11752 JUSTICE AND AN IN -KIND SERVICES MATCH EQUAL TO
$12,924.00, TO BE PROVIDED BY THE•DEPARTMENT OF'
POLICE;`AUTHORIZING THE CITY MANAGER TO ACCEPT
SAID GRANT, AND TO EXECUTE THE ,NECESSARY
In the ........... ..................... Court, I DOCUMENT(S), IN A FORM. ACCEPTABLE TO THE CITY j
ATTORNEY, AUTHORIZING THE EXPENDITURES OF
wig ep4 ublished In fa VgNspaper In the Issues of SAID GRANT FOR OPERATION OF SAID PROGRAM;
rg , y CONTAINING A REPEALER PROVISION AND' A SEVER -
ABILITY CLAUSE.
ORDINANCE NO. 11
AN •EMERGENCY ORDINANCE MIAMI CITY i.
Affiant further says that the said Miami Daily Business COMMISSION AMENDING SECTIONS 40-191,.40-195, 40-.
Review is a newspaper published at Miami In said Dade 196, 40-202, 40-203, AND 40-205 OF THE CODE OF THE
County, Florida, and that the said newspaper has heretofore CITY OF MIAMI, FLORIDA, AS AMENDED, BY PROVIDING
been continuously published In said Dade County, Florida, FOR AN INCREASED PENSION MULTIPLIER; -A RULE OF
each day (except Saturday, Sunday and Legal Holidays) and 64 RETIREMENT; 'A CAP FOR RETIREMENT ALLOW -
has been entered as second class mail matter at the post ANCES; A DEFERRED RETIREMENT OPTION PROGRAM
office In Miami In said Dade County, Florida, for a period of (DROP); A REDUCED EMPLOYEE CONTRIBUTION; THE j
one ye xt preceding the first publication of the attached ESTABLISHMENT OF INDIVIDUAL CONTRIBUTION AC-.
copy ad ertisement; and afflant further says that she has COUNTS; REMOVAL- OF INVESTMENT RESTRICTIONS TO
nett r p nor promised any person, firm or corporation THE EXTENT PERMISSIBLE BY LAW; AND RELEASING: !
any Isc nt, rebate commission or refund for the purpose THE CITY OF MIAMI FROM THE OBLIGATION OF i
of s c ng this a ertisement for publication In the said INVESTMENT EXPENSES; CONTAINING . A REPEALER .
no or. • PROVISION AND A SEVERABILITY CLAUSE; PROVIDING
• FOR AN EFFECTIVE DATE. -
Said ordinances may be inspected by the public at the Office of the
City Clerk, 3500 Pan American Drive, Miami, Florida, Monday through i
S o d subsc ad o i thl� Friday, excluding holidays, between the hours of 8 a.m. and 5 p.m. .
4 e uary J
...... of 19...... { ��� pp
•••••••••••••• w 4 Walter J. Foeman
s City Clerk.
.. ........ woo c
O • S A
(SEAL) �P�Y P JANETi LLERENA fcaew
Sookle Williams s o n togifiV!@N NUMBER (#5193)
C C 5 S 6004 2/4 __ 99 4 020453M
9j •w�� EXPI
JUNE 23,2000
MY CO;VMISSION RES -- — -- --
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