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HomeMy WebLinkAboutO-10911s il U-91-689 8/26/91 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, FLORIDA, AS AMENDED, BY ENHANCING BENEFITS FOR MEMBERS OF CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST BY INCREASING THE RETIREMENT ALLOWANCE PERCENT, ESTABLISHING RULE OF 70 RETIREMENT, AND BY ADDING NEW DEFINITIONS; CONTAINING A REPEALER PROVISION AND A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Miami's administration and its employee bargaining units, the American Federation of State, County and Municipal Employees (AFSCME), Local 1907, and Sanitation Employees' Association (SEA), have conducted discussions for the fiscal year 1992 budgetary cycle related to the Pension and Retirement Plans of the City; and WHEREAS, the administration renommAnao M^A404^�4.4--- Sections 40-225, 40-238, 40-239 and 40-241, of the Code of the City of Miami, Florida, relating to General Employees' and Sanitation Employees' retirement concerning certain membership eligibility requirements and pension benefits; and WHEREAS, it is necessary that said modifications of Code Sections 40-225, 40-238, 40-239 and 4n-n4i vo„ca„- —3 Retirement Plans of the Code of the City of Miami be effective 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 40-225, 40-238, 40-239 and 40-241 of the Code of the City of Miami, Florida, as amended, are hereby 1091 amended in the following particulars:I/ "Sec. 40-225. Definitions. Unless a different meaning is plainly required by the oontext, the following words and phrases as used in this division shall have the following meanings: Rule of 75 shall mean a oomputation oonsisting of the sum of a member 's age and length of oreditable servioe, whioh sum shall permit normal servioe retirement upon the member's oombined age and oreditable service equalling at least seventy-five (75). Vested benefit shall mean any immediate or deferred benefit to whioh a member has gained a nonforfeitable right under the provisions of this division. Minimum_vestin¢ shall mean _ten _(1_0) vears_of benefits." "Sec. 40-238. Paybaoks for membership credit. Members shall have the right to reoeive membership credit in the retirement plan in accordanoe with the following provisions: Words and/or figures strioken through shall be deleted. Underscored words and/or figures shall be added. Remaining provisions are now in effect and remain unchanged. Asterisks indioate omitted and unchanged material. -2- 10911 INI -r-W•rV.Mai.RIF%Wpp 93ft �"IW►AW%I11[•1bf1� �F�t • : } ♦ U ' 11 • t- 11 z {1 • -} *77MOMMUNITEr. EA. • VPRZWO10 L • • "Sec. 40-239. Benefits. (A) Service retirement." * (3) Upon service retirement, a member exeroising a service retirement bQfnrA October 4 199 shall be entitled to receive a retirement allowance equal to two (2) 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 eX .rni jai ng serve na, retirement on or of Pr [ln }•nhar 4 1991 shall be " (4) A member in service who is entitled to receive the retirement allowance set forth in paragraph (3) of this subsection, shall also be entitled to elect one of the following three (3) longevity supplements provided he or she qualifies as set forth below: (b)LIJ Any eligible member in service who was a member of the retirement plan prior to October 1, 1974, and who qualifies for a longevit supplement pursuant to section 40-239(A(4)(a), may elect to receive his or her retirement allowance at a rate of two and one-half (2 1/2) percent of the member's average final compensation multiplied by years of creditable service. i2d Any ali_gihle member in service who Mires on or aft .r October 4 1991 and was a member of the retirement plan prior --to Oc .nher 1 1974 and whin ?p sii^t=ip_tiK=JII�31•%-=�1 • I } • } - - 1 �- - t • t' 11'11!' -3 10911 i" (o)L, Any eligible member in service may elect to receive an additional one -tenth of one (1) percent of the memberrIs average final compensation for each full calendar year after the sum of the member's age and service exceeds seventy-five (75), up to a maximum credit of three (3) percent per year of service. In calculating the member's age and service for the additional one - tenth of one (1) percent, the amount of service shall not exceed twenty (20) years in the computation. However, if the number of years of service needed to total seventy-five (75) when added to the member's age is less than twenty (20), that number of years of service shall be the maximum years-of-servioe number used in the formula to provide the one -tenth of one (1) percent per year benefit. =� • •�- "Rk" "047 years of s rvi nA naajz " , to total seventy (70) when. added to the m mher,s age is l _sR than twenty (20) that number of yearn of service sha l i,A the maximum VQara-nf servi nF+ + used --in the formu�a to provirae the on tenth of one (1) peroeni; per year b .nefi t _ (B) Rule of 75 retirement: rule of 70 retirement Any member in service who was employed active by the city before May 16, 1984, and who did not withdraw from active membership in the retirement plan prior to May 23, 1985, &nd o ale tire effective 'hFaFnw+c 4. 1991. may elect service retirement on the basis of his or her combined age and creditable service equalling seventy-five (75). Such election shall be made upon written application to the board, setting forth not less than ten (10) days nor more than ninety (90) days subsequent to the -� execution and filing thereof, the date the member desires to be retired. AriV memhAr in s rvi c, who did not did not w�hrirac� Y r -4- 10911 minimum vesting • ot • t i. • • t shallbe made uton:kritte t : ! •: • t • t c board. setting • t t • - that t • days nor more than ninety = • • •�c� -tt to the exeoutiQt. there6f. the • :. - the 11 - 11 - a - - • • s -• Upon rule of 75 retirement, a member ZhQ 1991 shall be entitled to reoeive a retirement allowanoe equal to two (2) percent of the member's average final oompensation multiplied by years of creditable service, which amount shall be paid yearly in equal monthly installments. A member eligible for rule of 78 retirement shall also be entitled to receive longevity supplements pursuant to the provisions of section 40-239(A)(4). r"I available for a member who retires effeotive on or after October 4. 1991, (3) A member eligible for rule of 75 retirement 9� rule of 70 retirement may choose any of the optional allowances available to him or her on the date of retirement, as provided in section 40-239(L). (D) Vested right to retirement. (2) Upon attainment of normal retirement age, a member not in service shall be entitled to receive a retirement allowance equal to two (2) percent of the member's average final compensation multiplied by years of creditable servioe, which amount shall be paid yearly in monthly installments- if the member elected to become a member not in service prior to October 4. 1991, A member electing to become a member not in service on or after October 4. 1991 shall be entitled to receive a retirement (E) Ordinary disability retirement. 10911 C2)%2 Upon retirement before October 4. 1991 for ordinary disability, a member shall be entitled to receive a retirement allowance equal to two (2) 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 (2) percent of ninety (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 the member's normal retirement age, provided further that the resulting retirement allowanoe shall not exceed thirty (30) percent of the member's average final compensation. (G) 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 78 retirement or rule of 70 retirement benefits but has not retired dies, the member shall be considered to have been retired on the date of death. In such event, the member's spouse shall have the option of receiving the sum of the member's accumulated contributions together with interest from the date of the member's death to the date of payment or, if not exercising such option, the spouse shall receive: (L) Optional allowances. Any member may elect to receive in lieu of the retirement allowance otherwise payable to him or her, the actuarial equivalent at that time of his or her retirement allowanoe in a reduced retirement allowance payable as follows, provided that no election of an optional allowanoe shall be effective -6- in case a beneficiary dies within ten (10) days after the election of an option as provided in this section, and further provided that such a beneficiary shall be considered as a member in service at the time of death, until the first payment on account of any benefit becomes normally due: Option 6: Any member upon service, early service or rule of 75 retirement or rule of 7o rA+i fflU + may elect to receive benefits in one (1) of the following three (3) formsin lieu of the retirement allowance otherwise payable to the member: "Sec. 40-241. Adjustments in benefits. Members who belonged to the Miami City General Employees' Retirement Plan, presently known as the City Of Miami General Employees' and Sanitation Employees' Retirement Trust, shall continue to be subject to the following adjustments in benefits: (B) 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 Employees' Retirement Plan, presently known as the City of Miami General Employees' and Sanitation Employees' Retirement Trust, which benefit was previously set forth in 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 rL'tP of 7011 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 (3) years. Those members having such vested right may only continue to earn credit for such allowance up to a combined period of ten (10) years' service." 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 -7- 10911 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 day ofaept XAVIER ATTEST MATTY HIRAI CITY CLERK PREPARED AND APPROVED BY: RAMON IVRASSISTATORNEY APPROVED AS TO FORM AND CORRECTNESS (AS OF AUGUST 30, 1991): . yL JO GE L. ERNANDEZ CITY ATT NEY Rl:bf:M840 r , 1991. MAYOR _8_ 10 911 MATTY HIRAI City Clerk t" t�txrtt � yew n.n j•I September 17, 1991 Ms. Janet Reno CESAR H. ODIO City Manager State Attorney 1351 N.W. 12th Street Miami, FL 33125 Dear Ms. Reno: 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: DEPUTY CITY LERB RECEIVED BY: i a DATE: MH:vg Eno. 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 Ile'�`. ....( II,„):r' CESAR H. ODIO City Manager September 17, 1991 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 co which amend the Code of the City of Miami, Floripy of the da: Ordinances 10910 10911 Please acknowledge receipt of same by affixing the enclosed copy of this letter and return it toothisiOfficee to our files. for Thank you. Very truly yours, MATTY HIRAI City Clerk BY: Uzzt"_'� DEPUTY CITY LERK 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/(3p5) 250.5360 �# of � t�xxrtt MATTY HIRAI City Clerk still iiuu © T F CESAR H, ODIO City Manager 1 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 OFFICE OF THE CITY CLERK/35W Pan American Drive/P,O, Box 330708/Miami, Florida 33233-0708/(305) 250.53W 2 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO Honorable Mayor and Members DATE August 28, 1991 FILE • of th City Commission sUWECT. Pension Ordinance Amendments and J Associated Reso- FROM REFERENCES l u t i o n s Cesar H. Odio City Manager 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 F Y ' 9 2 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 Relating 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 FY'92 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(bl0c) of the 1986 Tax Reform Act to protect the method of accrual of benefits of employees covered by the City's pension plans. 10911 N 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 pension benefits. The proposed amendments which affect both pension trusts are enumerated as follows: 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. reed 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 pay period following October 1, 1991 to the first full pay period effective October 1, 1992; assuming ratification by their respective memberships. The deferred amount of the 4% across-the-board increase is $5.7 million. In addition, the City's bargaining 10911 N 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 Savings 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, F I P 0 , 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, 1091LI 3 a 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 19 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Members of the City Commission DATE : August 23,!- 1991 FILE SUBJECT : Special Commission Meeting September $, 1991 M : Xavier L. Suarez REFERENCES: Mayor L 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(b10c) 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 legislation will be forwarded to you shortly. cc: Cesar H. Odio, City Manager 10911 S RECEIVED 1991 5EP 19 M is i 8 MATTY I• RAI CITY CLERK MIAMI REVIEW CITY OF 14IAMI, FLA, Published Daily except Saturday, Sunday and Legal Holidays Miami, Dade County, Florida. STATE OF FLORIDA COUNTY OF DADE: t J -' Before the undersigned authority personally appeared Sookle VAIllams, who on oath says that she is the Vice President of Legal Advertising of the Miami Review, a daily'.k''. r %' (except Saturday, Sunday and Legal Holidays) newspaper, published at Miami In Dade County, Florida; that the attached Alf, copy of advertisement, being a Legal Advertisement of NoticeS��len In the matter of Ehrf f0� CITY OF MIAMI ; Re: ORDINANCE NO. 10910 An emergency ordinance amending a A do; Sections 40-200' 40-211 and 40-212 of BE the Code of the City of Miami., etc. X X X Inthe ......................................... Court, was published in said newspaper In the Issues of , CECj S kUsBM September 16, 1991 Affiant further says that the sold Miami Review 1s a newspaper published at Miami .In said Dade County, Florida, and that the said newspaper has, heretofore been continuously published In said Dade County, Florida each day (except SaturdL,'m and Legal Holidays) and has been entered as seconll matter at the post office In Miami In said Dade rida, for a period of one year next preceding the ion of the attached copy of advertisement, and affi tys that she has neither paid nor promises any ps norporation any discount, rebate, commission or fup se of securing this advertisement for publ ae newspaperr.� a ` y »�4w pl' ,WvM'subscribed before me this PY 16 !-' l y Of .. f' ... A.D. 19....91 (SEAL) •r�T� OF F�•' �•0. "OFFICIAL IIOTARY SEAL" CHERYL H. MARNER MY COMM. EXP. 4/12/92