HomeMy WebLinkAboutO-109108/28/91 10910
ORDINANCE NO. '
AN EMERGENCY ORDINANCE AMENDING
SECTIONS 40-200, 40-211 AND 40-212 OF THE CODE
OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, BY
ENHANCING BENEFITS FOR MEMBERS OF THE CITY OF
MIAMI FIRE FIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST BY INCREASING THE RETIREMENT
ALLOWANCE PERCENT, ADDING NEW DEFINITIONS, AND
BY ADDING A NEW PROVISION FOR RESTORATION OF
SERVICE CREDIT FOR PRIOR CONTINUOUS SERVICE
BEFORE BECOMING A MEMBER UPON PAYMENT OF
CONTRIBUTIONS BY MEMBER; CONTAINING A REPEALER
PROVISION AND A SEVERABILITY CLAUSE AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Miami's administration and its employee
bargaining units, the Fraternal Order of Police, Lodge #20, and
the Association of Fire Fighters, AFL-CIO, Local 587, have
conducted discussions for the fisoal year 1992 budgetary cycle
related to the Pension and Retirement Plans of the City; and
WHEREAS, the administration recommends modifications of
Sections 40-200, 40-211 and 40-212, of the Code of the City of
Miami, Florida, relating to Pension and Retirement Plans for City
of Miami Fire Fighters' and Police Officers', concerning certain
membership eligibility requirements and pension benefits; and
WHEREAS, it is necessary that said modifications of Code
Sections 40-200, 40-211 and 40-212 be effeotive prior to the
commencement of Fiscal Year 1991 - 1992 for the City of Miami to
make the required and necessary payments to its employees and
officers, the payment of debts, the necessary and required
purchases of goods and supplies, and to generally carry on the
functions and duties of its municipal affairs;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. Sections 40-200, 40-211 and 40-212 of the
Code of the City of Miami, Florida, as amended, are hereby
10910
amended in the following partioulars:11
"Sec. 40-200. Definitions.
Unless a different meaning is plainly required by
the context, the following words and phrases as used in
this division shall have the following meanings:
Average final compensation shall mean for --any
_larch
---- — t— — vva"ulp, LUGS
earnable compensation of su-olr the adurng annual
g either
the last two--e2�• � member durinC �--M Years or the highest two--C21
one
years of membership service, whichever is
greater.
VA M'A-I;-
7 A 0 P
I I UZTI.-
Vested benefit shall mean an immediate or deferred
benefit to which a member has gained a nonforfeitable
right under the provisions of this al division. Minimum
membershin l ap^,m 4-u- ??'S of bl
�
i
"Sec. 40-211. Paybacks for membership credit.
Members shall have the right to receive membership
credit in the retirement system in accordance with the
following provisions:
Restoration Of Sery
Service_ i na ,,., naa a- foT prContinuous
COri n77n77a
opportunity tV to b .vhAt+k at ttie
ti
Words and/or figures stricken through shall be deleted.
Underscored words and/or figures shall be added. Remaining
Provisions are now in effect and remain unchanged. Asterisks
indicate omitted and unchanged material.
-2-
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slisooverec� then rbe payback bashay i hA nn+n
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"Sec. 40-212. Benefits.
(A) Service retirement.
*
(3) Upon service retirement, a member exeroising a
G It ,ober 4.. 1991 shall be
entitled to receive a retirement allowance equal
to two and one-half (2.8) percent of the member's
average final compensation multiplied by years of
creditable service, which amount shall be paid
yearly in monthly installments.
A member
October 4. 1991 shall . re man+ on nr aF+Ar
b . nti t1 ed to r .r-ei ve A,
regiment all nmannA ��a� to -two anri thrAA
quarters (2,75) neroent n•P +hc
vearly in mon.r�y insalimAn+�
* *
(B) Rule of 70 retirement.
(1) Any member in service
o did not withdraw
from active membership in the retirement system
may elect service
retirement on the basis of his or her combined age
and creditable service equalling seventy (70) or
more-orovidAc3 tha.+ +,h o ,.,e .,,.,.., _ _ _ _ _. _
vaa u,"19 recru1 rementa . Such election shall be made
upon written application to the board, setting
forth not less than ten (10) nor more than ninety
(90) days subsequent to the execution and filing
thereof, the date the member desires to be
retired.
(2) Upon rule of 70 retirement, a member shall be
entitled to receive a retirement allowance equal
to bwo and one-ILatftwo
and thPAeand�uartAr
i2.76.Z percent of the member's average final
compensation multiplied by years of creditable
service, which amount shall be paid yearly in
monthly installments.
-3 10910
CD) vested right to retirement.
(2) Upon attainment of normal retiremen/t age, a
member not in service shall be entitled to receive
a retirement allowance equal to two and one-half
(2.5) percent of the member's average final
compensation multiplied by years of creditable
service, which amount shall be paid yearly in
monthly installments- if the member also to
19199, a memm .mbar not in sPrvi na prior to ^ y -4
A ber a1 tmot iny; ""ter
u
service On or after Oa n1�Ar 4 1991 sha11 },a
en Eitled to rec+Pi vA a +a , ,
to two an t rPP $u�ri^Prs ( 7R 1 � �
rnetin'he�. i �jQr[�a11t Of
��.iy egr1 y in months y ins a 1 1 ma+,+c anon
attainment Of norMal
ratiramani- flame
* *
(E) Ordinary disability retirement.
(2) Upon retirement for ordinary disability, a member
shall be entitled to receive a retirement
allowance equal to bwo and one-hatftwo and
hh TPP-�LartPrs (2 78) percent of ninety (90)
percent of the member's average final compensation
multiplied by years of creditable service, which
amount shall be paid yearly in monthly
installments, provided such retirement allowance
exceeds thirty (30) percent of the member's
average final compensation; otherwise, a
retirement allowance equal to
" two an thrPP quarters (2,75)
ninetypercent of
(90) percent of the member's average final
compensation multiplied by the number of years
which would be creditable to the member were the
member's service to continue until the attainment
of normal retirement age, provided further that
the resulting retirement allowance shall not
exceed (30) percent of the member's average final
compensation.
*
(F) Accidental or service -incurred disability
retirement.
(5) Upon retirement for accidental i i1i or
service -incurred disability, a member shall
be enbttted--ta receive a
pension whim, sha11 equal to sixty-six and
two-thirds (66 2/3) percent of tire;--er-S
his average final compensation or sixty-six
and two-thirds (66 2/3) percent of the
L38173?73:3±F� -a Le Imeniber
his final compensation,
whichever is greater.
-4- 10910
W
Section 2. All ordinances, Code sections, or parts of
ordinances thereof in conflict herewith, insofar as they are in
conflict with the provisions of this Ordinance are hereby
repealed.
Section 3. If any section, sentence, clause, phrase, or
word of this Ordinance is for any reason held or declared to be
unconstitutional, inoperative, or void, such holding or
invalidity shall not be construed to have been the intent of the
Commission of the City of Miami to pass this Ordinance without
such unconstitutional, invalid, or inoperative part therein, and
the remainder of this Ordinance after the exclusion of such part
or parts shall be deemed and held to be valid as if such parts
had not been included therein.
Section 4. 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
Of Miami, and upon the further grounds of the necessity for the
City of Miami to make the required and necessary payments to its
employees and officers, the payment of debts, the necessary and
required purchases of goods and supplies, and to generally carry
on the functions and duties of municipal affairs.
Section 5. The requirement of reading this Ordinance on
two separate days is hereby dispensed with by an affirmative vote
of not less than four -fifths of the members of the Commission.
Section 6. This Ordinance shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 5th dayof SgnrPmber 1991.
L
ATTXAVIER UAREZ, MAYOR
E
M HIRAI
CITY CLERK
-5- 10910
PREPARED AND APPROVED BY:
--
MON I
RIZA AZ
ASSISTANT C Ty
ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS
(AS OF AUGUST 30, 1991):
Rl:bf:gmb:M839
-6- 10910
1
of
�XN 01�
MATTY HIRAI
City Clerk CESAR H. ODIO
City Manager
ru..V%
September 17, 1991
Ms. Janet Reno
State Attorney
1351 N.W. 12th Street
Miami, FL 33125
Dear Ms. Reno:
Enclosed herewith please find a co
PY of which amend the Code of the City of Miamit Florida:
he wing Ordinances
10910 10911
Please acknowledge receipt of same by affixing your signature to
the enclosed copy of this letter and return it to this office for
our files.
Thank you.
Very truly yours,
MATTY HIRAI
City Clerk
BY:
DEPUTY CITY LERg
RECEIVED BY:
DATE:
MH:vg
Enc. a/s
OFFICE OF THE CITY CLERK/3500 Pan American Drive/P.O. Box 330708/Miami, Florida 33233-0708/(305) 250-5360
MATTY HIRAI
City Clerk
t
of
• t utoo:gym J. j
ottt
September 17, 1991
CESAR H. ODIO
City Manager
Mrs. Priscilla Domenech
Court Operations Officer
1351 N.W. 12th Street, Rm 7--701
Miami, FL 33125
Dear Mrs. Domenech:
Enclosed herewith please find a copy of the following Ordinances
which amend the Code of the City of Miami, Florida:
10910 10911
Please acknowledge receipt of same by affixing your signature to
the enclosed copy of this letter and return it to this office for
our files.
Thank you.
Very truly yours,
MATTY HIRAI
City Clerk
BY:
Uzt't �' -
DEPUTY CITY LERK
RECEIVED BY:
DATE:
MH:vg
Enc. a/s
OFFICE OF THE CITY CLERK/35oo Pan American Drive/P.O. Box 330708/Miami, Florida 33233-0706/(305) 250-5360
MATTY HIRAI
City Clerk
—
CESAR H. ODIO
Sol
City Manager
September 17, 1991
Mr. Robert L. Laslie
Vice -President -- Supplements
Municipal Code Corp.
P.O. Box 2235
Tallahassee, FL 32304
Dear Mr. Laslie:
Enclosed herewith please find a copy of the following Ordinances
which amend the Code of the City of Miami, Florida:
10910 10911
If I can be of any further assistance, please do not hesitate to
call.
Very truly yours
Valerie Greenwood
Deputy City Clerk
Enc. a/s
OFFICE OF THE CITY CLERK/3500 Pan American Drive/P.O. Box 330706/Miami, Florida 33233-0706/(305) 250-5360
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
TO. Honorable Mayor and Members
of th City Commission
FROM
Cesar H. Odio
City Manager
0
DATE August 28, 1991 FILE
SUBJECT pension Ordinance
Amendments and
Associated Reso-
REFEREIJCES a u t i o n s
ENCLOSURES S e v e n (7)
As a result of discussions among the City's four bargaining
units and the administration during the annual budgetary
preparation cycle, the administration is recommending the City
Commission's approval of permanent modifications to the City's
Pension Ordinance on an emergency basis and additional associated
legislation.
The reason for the emergency legislation is the impending
commencement of the FY'92 budget on October 1, 1991 and the
favorable impact that the proposed ordinances and Retirement
Incentive Program will produce upon the City's budgetary and
financial position.
The Administration Recommends Approval of the Attached Seven 7
Legislative Items R e I a t i n 9 to Pension Benefits and Collective
Bargaining Agreements
The legislative items requiring your approval are as
follows:
(A) the attached two (2) emergency ordinances by a four -
fifths vote concerning Article IV. Pension and Retirement Plans
of the Miami Code,
( B ) the attached two (2) associated resolutions modifying
the collective bargaining agreements with the International
Association of Fire Fighters and the Miami General
Employees/AFSCME,
(C) the attached two (2) resolutions specifying across-the-
board increases for FY192 and FY'93 for the Fraternal Order of
Police and the Sanitation Employees' Association, and
( D ) the attached one (1) resolution declaring a one-time
election by the City which is required prior to September 30,
1991 under Section 415(b10c) of the 1986 Tax Reform Act to
protect the method of accrual of benefits of employees covered by
the City's pension plans.
10910
10
Mayor and Members of
the City Commission
Page 2
One emergency ordinance amends the provisions of the General
Employees' and Sanitation Employees' Retirement Trust (GESE) and
the other amends the provisions of the Fire Fighters' and Police
Officers' Retirement Trust (FIPO).
The proposed amendments to the pension ordinance primarily
concern eligibility requirements and
proposed amendments which affect bothpension benefits. The
enumerated as follows: Pension trusts are
Proposed Modifications to the General Employees' and Sanitation
Employees' Retirement Trust
( 1 ) the retirement allowance percentages for general and
sanitation employees will be increased to 2.25% and 2.75% from
2.0% and 2.5% respectively,
(2) the Rule of 75 for general and sanitation employees
will be reduced to the Rule of 70,
(3) the Rule of 75 eligibility exclusion for employees
hired after May 16, 1984 will be eliminated, and
(4) the minimum service period for general employees and
sanitation employees under the Rule of 70 will be established as
10 years.
Proposed Modifications to the Fire Fighters' and Police Officers'
Retirement Trust
(1) the retirement allowance percentage for fire, rescue and
Police employees will be increased to 2.75% from 2.5%, and
(2) the average final compensation for fire, rescue and
Police employees will be the average annual earnable compensation
during the highest one (1) year of membership service; not
including overtime.
Re resentatives of the Cit 's Four Bargaining Units Have Agreed
to Defer Cost of Living -Increases in Exchan a for the Pro ose Benefits
In exchange for these benefits, the representatives of the
City's four bargaining units have agreed to defer 4% across - the -
board salary increases effective the first full
following October 1, 1991 to the first full pay Period
October 1, 1992; assuming ratification byaytheirodrespective
memberships. The deferred amount of the 4% across-the-board
increase is $5.7 million. In addition, the City's bargaining
10910
Mayor and Members of
the City Commission
Page 3
units have agreed in concept to the necessity of "downsizing" the
City's operations in FY192.
As of this date, the AFSCME and the FOP bargaining units
have ratified the provisions of the permanent pension ordinance
modifications and the Retirement Incentive Program.
First Year's Savin s from Permanent Pension Benefit Modifications
and the Retirement Incentive Program will Aggregate to 5 million
The estimated combined first year's savings from these
permanent benefit modifications and the Retirement Incentive
Program for both pension trusts will be approximately $5 million;
assuming a *35% election rate. Salary avoidances, the 4% across-
the-board salary increase deferral, and a "downsizing" of City
government will substantially offset increased pension -related
and program costs.
Update on The Retirement Incentive Program
Insofar as the Retirement Incentive Program is concerned,
the administration has identified 532 employees that may be
eligible to retire on or before October 3, 1991. These employees
are members of their respective retirement trusts, i.e., GESE,
FIPO, or ICMA, and are members of the City's four bargaining
units and the unclassified, managerial/confidential, and
executive employment groups.
According to the City's actuarial consultant, A. Foster
Higgins & Co., Inc., the national average for participation in
retirement incentive programs is approximately thirty (30)
percent. For budget projection purposes, the administration has
assumed a thirty-five (35) percent participation level as a
result of the currently large number of eligible employees and
the positive combination of the City's retirement incentive
program and the proposed permanent modifications to the pension
ordinance.
Resolutions Attendant to Pension Ordinance Modifications
The attached resolutions principally relate to the memoranda
of understanding modifying specific provisions of collective
bargaining agreements with the City's unions. These provisions
are as follows:
( 1 ) Deferral of the 4% October 1991 across-the-board
increase to October 1992 for the AFSCME membership,
10910
�'
W
I
Mayor and Members of
the City Commission
Page 4
(2) Deferral of the 4% October 1991 across-the-board
increase to October 1992 for the IAFF membership,
(3) Establishing a 0% across-the-board increase effective
October 1991 and a 4% across - the - board increase effective
October 1992 for the FOP membership, and
(4) Establishing a 0% across-the-board increase effective
October 1991, a 4% across-the-board increase effective October
1992, and a tipping fee savings bonus for the SEA membership.
Finally, a resolution is recommended for your approval which
"grandfathers" protection and accrual of pension benefits for the
City's employees. The resolution must be approved by September
30, 1991 to comply with the provisions of the 1986 Tax Reform
Act.
If you require additional information or clarification,
please contact me at your earliest convenience.
cc: Executive staff
10910
y
19
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Members of the City Commission DATE ; August 23,1.-1951 FILE
SUBJECT : Special Commission
Meeting
September 51 1991
°1 Xavier L. Suarez /�
Mayor
REFERENCES:
ENCLOSURES:
As a result of considerable discussions among the City's
bargaining units and the administration, certain retirement
benefit enhancements have been proposed which will require
the passage of several legislative items: Two emergency
ordinances amending the pension retirement plans of the
Miami code, two resolutions modifying the current collective
bargaining agreements with the International Association of
Firefighters, and the Miami General Employees/AFSCME, two
resolutions specifying across-the-board increases for fiscal
year 1992 and fiscal year 1993 for the Fraternal Order of
Police, and the Sanitation Employees Association,. and one
resolution declaring a one-time election by the City which
is required prior to September 30, 1991 under Section
415(bl0c) of the 1988 Tax Reform Act in order to protect the.
method of accrual of benefits of employees covered by our
pension plan.
It is my intention to bring this emergency legislation
before the City Commission at the September 5, 1991
Commission meeting due to its impact on the impending
'commencement of the FY192 budget. A package of proposed
Ilegislation will be forwarded to you shortly.
cc: Cesar H. Odio, City Manager
I
10910
S
'*'9,. ... . . . .
.-RECEIVED
1991 SEP 19 AM IU. 17
MIAMI REVIEW CITY OF rITY jtLEf���
Published Daily except Saturday, Sunday and
Legal Holidays
Miami, Dade County, Florida.
STATE OF FLORIDA
COUNTY OF DADE:
Before the undersigned authority personally appeared
Sookle VAIllems, who on oath says that she Is the Vice
President of Legal Advertising of the Miami Review, a daily
(except Saturday, Sunday and Legal Holidays) newspaper,
published at Miami in Dade County, Florida; that the attached
copy of advertisement, being a Legal Advertisement of Notice
In the matter of
CITY OF MIAMI
Re: ORDINANCE NO. 10911
An emergency ordinance amending
Sections 40-225, 40-238, 40-239 and
40-241 of the Code of the City of Miami.,
in%;C r ............... X..X .4� ............... Court,
was published In said newspaper In the Issues of
September 16, 1991
Affiant further says that the said Miami Review is a
t aper published at Mleml ,in said Dade County. Mad.-
a