HomeMy WebLinkAboutR-84-0583J-84-476
5/18/84
mm/D-7
RESOLUTION NO. 84-583
A RESOLUTION APPROVING AN ATTACHED DOCUMENT
RELATING TO A PROPOSED MODIFICATION IN THE
MIAMI CITY GENERAL_ EMPLOYEES RETIREMENT PLAN
AND AUTHORIZING THE CITY MANAGER TO EXECUTE
A COLLECTIVE BARGAINING AGREEMENT WITH EACH
OF THE FOLLOWING ORGANIZATIONS: SANITATION
EMPLOYEES ASSOCIATION AND THE MIAMI GENERAL
EMPLOYEES/AFSCME LOCAL 1907, AFL - CIO,
INCORPORATING THEREIN THE PROVISIONS OF SAID
DOCUMENT.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA:
Section 1. The attached document relating to the Miami City
General Employees Retirement Plan is hereby approved and the City
Manager is hereby authorized to execute a collective bargaining
agreement with each of the following organizations: Sanitation
Employees Association and the Miami General Employees/AFSCME
Local 1907, AFL-CIO, incorporating therein the provisions of said
document.
PASSED AND ADOPTED this 24th day of May , 1984.
Maurice A. Ferre
ATTEST:
A , Y ULWK
PREPARED AND APPROVED BY:
&44
/—.-
ROBERT
DEPUTY CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
a,ITY ATTORNEY
CITY COMMISSION!
MEETING OF
MAY 2 4
0 #
PENSION PLAN
Section 1. Litigation Settlement - Any and all pension
benefit improvements or entitlement improvements set forth in
this Article are conditioned upon final settlement orders being
entered in the Gates/shortfall/variable annuity/underfunding/and
related law suits not inconsistent with the conditions set forth
in this Article, it being the intention of the parties that this
Article shall not become effective until all such suits are
disposed of by the Courts and such settlements do not change,
alter, or vary the terms of this Article.
Section 2. Tax Qualification - Upon ratification of this
Agreement by all parties, the City will apply to the Internal
Revenue Service to have the Pension Plan tax qualified under
appropriate provisions of the Internal Revenue Service Code.
GEA/AFSCME :,ill contribute an amount up to one-third of the cost
of professional services necessary to the obtaining of such tax
qualification, but no more than $2,000.
Section 3. Creation Of A Cost Of Living Allowance (COLA)
Fund - Effective the month following the issuance of a tax
qualification letter, the City will establish a COLA fund with
contributions from the employee and the City as provided herein.
The liability, if any, of the retirement trust to pay a variable
annuity benefit to any past, current or future retiree is fully
extinguished upon the establishment of this COLA fund.
Section 4. Employee Contributions - Effective the month
following the issuance of a tax qualification letter, employee
contributions to the Pension Plan will be increased 2% (to 10.0%)
of pay as presently calculated. This additional 2% contribution
from employees shall be placed into a COLA (cost of living
account), and shall be refundable to the same extent as are
employee contributions to the Pension Plan.
Section 5. City Contribution to COLA - The City will
contribute an amount up to one (1%) percent of payroll
(calculated on the same basis as the employee contribution) per
year for each of the next three and one-half (3 1/2) fiscal years
-1- 84-58,3
beginning in FY 83-84, 2rovided that this amount is available
from excess earnings (i.e. above the actuarial assumption for
Pre --Retirement Interest earnings) of the Pension Plan determined
at the close of the fiscal year. The City contribution, if any,
to the COLA after this three and one-half (3 112) year period,
shall be the subject of collective bargaining negotiations.
Beginning in FY 85-86, the City will no longer make the current
special cost of living appropriation from the general fund to
retirees.
Section 6. COLA Distribution - The COLA account will be
disbursed in future years consistent with the methods agreed upon
by the parties named herein; provided that persons who retire
under option 6(a) or a deferred vested benefit will not
participate in distributions from the COLA account subsequent to
their election.
a) A representative of the S.E.A.
b) A representative of A.F.S.C.M.E., Local 1907
c) The Assistant City Manager for Finance and the
Labor Relations Officer_
d) A representative of the Plan Pension Board
It is anticipated the parties named above would meet
promptly after ratification of this Labor Agreement and the
settlement of the law suits outlined in Section 1 of this Article
to negotiate said methods, consistent. with Chapter 447, Florida
Statutes. Implementation of a COLA distribution plan may only
occur subsequent to the expressed approval of each of the
parties.
Section 7. Vesting - Upon receipt of the tax
qualification letter, vesting will be reduced from 15 years to 10
years of continuous creditable service. Continuous creditable
service will be tolled, but not broken by any period of time
during which a Plan member is in a non -pay status; or during any
period in which the Plan member serves with an unsatisfactory
service rating; or during any period in which the employee is on
involuntary layoff not to exceed eighteen (18) continuous months.
Section B. Maternity/Medical Benefit Bum Back - Any
employee who takes an unpaid leave of absence for maternity or
medical purposes shall have the option of buying back the days
(s)he was on unpaid leave of absence up to 180 days; provided
that if the City, at its sole discretion does not provide light
duty employment to the employee, the period of absence for which
buy back is available may be extended to 240 days or less if some
light duty work has been offered; provided further that the
question concerning whether light duty was available shall not be
arbitrable. This option to buy back leave time shall be
available for 30 days after notification to the employee by the
Plan Board. The Plan Administrator shall ensure that such
notification is made within 15 days of an employee's return to
work. Pay back must commence within 30 days of the decision to
buy back time, but it may be paid back in equal installments over
a one (1) year term. Failure to meet these qualifications waives
any and all future claims for payback of unpaid leave time. Upon
pay back by the employee member of his contributions, the City
will pay its contributions.
Section 9.
Rule of 75 Retirement - For employees who are
Plan members as of the date this Agreement is ratified, normal
retirement will be allowed, on the basis of combined age and
service equalling 75. The funding for the cost of this
eligibility improvement is included in the schedule of City
contributions set forth below and in Schedule A attached to this
Agreement.
Section 10. Benefit Formula - For employees who are Plan
members as of the date this Agreement is ratified, the benefit
formula upon which existing full-time covered employees only will
have their pensions computed will be changed to the highest one
full year's salary. The highest one year's salary (i.e. average
final compensation) shall include base salary only and exclude
overtime, leave payoffs and other emoluments. The highest one
year's salary shall. not exceed the second highest year's salary
by more than 15% (excluding increases due to longevity,
anniversary, and negotiated cost of living raises). The funding
-3- 84-519,1
for the cost of this benefit increase is included in the schedule
of City contributions set forth below and in Schedule A attached
to this Agreement.
Section 11. Schedu-e of Contributions - Set forth in
Schedule A, attached to and made a part of this Agreement, are
the contributions to be made by the City for normal costs and
unfunded liability. The parties agree L,hat the schedule of
unfunded liability payments set forth in Schedule A will be made
as set forth thereon until all unfunded liability which has been
provided for in Paragraph 3a of the Funding Section of the
Settlement of Litigation Agreement has been extinguished. For FY
93-94 and thereafter, the contribution for the unfunded liability
portion shall be increased by 5% over the prior year, calculated
on the basis of the Settlement of Litigation Agreement, but
consistent with this Agreement, so long as any unfunded liability
shall remain.
a) Normal Cost Contribution - The annual normal cost
contribution to be made by the City shall be in accordance with
Schedule A; provided that in the event the Plan's actuary or an
actuary retained by the City each using their own assumptions,
shall determine that the normal cost contribution for any year
should be more or less than that set forth in Schedule A, they
shall attempt to resolve the disagreement. If the two actuaries
agree on a normal cost contribution for that year, that amount
shall be contributed by the City. Failing a resolution by the
two actuaries, trey will select a third actuary to resolve the
dispute. If they are unable to agree upon an actuary, such third
actuary sha71 be selected by the ti-ilerican Academy of Actuaries.
The third actuary shall, after an independent study, submit its
funding recommendation utilizing standard acceptable funding
techniques, to the City Commission. The City Commission shall
then fund at the level recommended by either the Plan's actuary
or the City's actuary whichever recommendation is closest to the
recommendation of the third actuary.
Section 12. Persons Hired After Ratification - Persons
hired after this Agreement is ratified by all parties but before
tax qualified status is achieved will contribute to the Pension
Plan at the rate of 8.0% until the month following the month in
which tax qualification occurs, at which time their contribution
level will increase to 10.0%. All persons hired after this
Agreement is ratified by all parties and who become covered by
the Pension Plan will be included in the then existing Pension
program as amended hereby but will not be eligible for Rule of 75
retirement and will have benefits calculated on the basis of the
average of their two (2) highest years' salaries.
Section 13. No Increases or Eligibility Improvements -
The parties agree that the Pension eligibility and benefit
changes set forth in this Article are to be funded by the
contributions set forth in this Article and that no changes in
this Pension program may be sought by the Employee Organizations
for a period of three (3) years from the date of ratification.
Section 14. Minimum Service Requirement - Pension Plan
participants shall not be eligible for normal retirement benefits
until they have completed a minimum of ten (10) years of
continuous creditable service in the Plan, as defined in Section
7 above.
Section 15. Change of Beneficiary - Those bargaining
unit employees who retire under the section 6(c) option in the
Plan may substitute a new spousal beneficiary in accordance with
procedures established by the Plan Board; provided that an
actuarial evaluation will be performed and the benefit for the
retiree will be recalculated so that it is actuarially equivalent
to the benefit as it was payable with the original spouse
designation; provided further that the original spouse must be
alive at the time of the change and not be entitled to any
survivor benefit under the Pension Plan by operation of law. It
is the intention of the parties that the City will only pay one
survivor benefit and not incur an increase in pension costs by
reason of the change.
-5-
N
Section 16. Executive Emolument - The City will amend the
Plan to ensure that benefits currently provided as Executive
emoluments do not impede tax qualification.
Section 17. General --The intent of the foregoing language
is to memorialize an agreement among the parties as to the
concepts which they desire to have changed in the Plan.
Therefore, it is collectively understood that the verbiage used
in amending the Plan ordinance will vary in form from that used
in this Agreement.
Section 18. Longevity Supplements (Age 45 Amendment) -
Employees of the City who were members of the Plan prior to
October 1, 1974, shall be eligible to qualify for longevity
supplements referred to in Sections 40-235 (3)(b)(i); 40-235
(3)(b)(ii); 40-235 (3)(d); or 40-228 D. However, Section 40-235
(3)(b)(ii) shall be amended to provide that employees who were
hired prior to 1974 and who were age 45 or older as of the date
of hire and who have completed 15 years of continuous credited
service since last becoming a Plan member shall be eligible for a
10% longevity supplement. Plan members hired after October 1,
1974 shall only be eligible for a longevity supplement as
provided under Section 40-228 D.
-6- 84-583
z t-
SCHEDULE
A
PLAN CONTRIBUTION (IN MILLIONS)
Fiscal Year
Normal
Unfunded
Total=J
83-84
2.9
5.8
8.7
84-85
5.0
6.4
11.4
85-86
5.5
6.7
12.2
86-87
6.0
7.1
13.1
87-BB
6.5
7.4
13.9
88-89
7.0
7.8
14.8
89-90
7.5
8.2
15.7
90-91
8.0
8.6
16.6
91-92
8.5
9.0
17.5
92-93
9.0
9.5
18.5
93-94
9.9
94-95
10.4
95-96
11.0
96-97
11.5
97-98
12.1
98-99
12.7
99-00
13.3
00-01
14.0
01-02
14.7
02-03
15.4
03-04
16.2
04-05
17.0
-
05-06
17.9
06-07
18.8
07-08
4.7
08-09
0
09-10
0
10-11
0
11-12
0
12-13
0
13-14
0
14-15
0
3j Subsequent
increases shall be in the same
proportionate
percentage as has
occurred in
the prior six -year period.
Total does
not include non -investment
expenses which shall be in addition
to this Total.
84-583
CITY OF MIAM1, FLORIDA
INTER -OFFICE MEMORANDUM
TO; Howard V. Gary
City Manager
FROM:
Dean R. Mielke
Labor Relations Officer c
DATE: May 17, 1984 FILE:
SUBJECT: pension Plan
Negotiation Settlement
REFERENCES:
ENCLOSURES:
One
We have reached tentative agreement with AFSCME and SEA in
negotiations relative to the Pension Plan. A copy of the
agreement is attached.
No changes will be implemented until all outstanding litigation
has been resolved. Principle changes include: For current
employees only, normal retirement under the Rule of 75 and use of
highest single year for determining the appropriate pension
benefit. For all. employees, reduction of vesting requirement
from 15 to 10 year:; adoption of a COLA provision, tax
qualification of the Plan under IRS Code 414(h); and increased
employee Coll tri.bution's f1-0111 8to 10t of pay Upon
implementation, co;1t of: i;.hc: i)crrefit i..111pr:•ovenlents will. approximate
1. 595% of payroll, `1111j' 3 will be funded thr;ouah payment:3 Made to
the Plan in accordance v;i.th tljca sct.Ll.ement:. a.greement of the law
suits noted above. Tfie� funding arr.angemc,ntr have been fully
endorsed by the City`s actuarial. con;aultants.
We expect SEA to ratify on May 19 and AFSCME did ratify on May
16. The City Attorney is preparing a Resolution for ratification
by the City Commission and we recommend the May 24th meeting as
appropriate for that review.
DRM/pl
84-583