HomeMy WebLinkAboutBack-Up from Law DeptDIVISION 2. - CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST
Sec. 40-191. - 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:
Accumulated contributions shall mean the sum of all amounts deducted or picked up from a member's
compensation plus all other amounts contributed to the retirement system by a member pursuant to this
division, together with regular interest thereon as provided in section 40-197(b).
Active membership shall mean membership in the retirement system as an employee.
Actuarial assumptions shall mean the benefit of equal value as determined using the RP 2000 Projected
to 2020 Scale AA and an interest rate of 7.42 percent compounded annually.
Actuarial equivalent shall mean a benefit having the same present value as the benefit it replaces, using
the actuarial assumptions listed above.
Average final compensation shall mean the annual earnable compensation of a member during either
the last one year or the highest one year of membership service, whichever is greater.
BACDROP shall mean Benefit Actuarially Calculated Deferred Retirement Option Program.
Beneficiaryshall mean any person receiving a retirement allowance or other benefit from the retirement
system.
Benefit shall mean a retirement allowance or other payment provided by the retirement system.
Board or board of trustees shall mean the board of trustees of the retirement system.
City employee shall mean any person employed by the city.
COLA shall mean cost -of -living allowance.
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 and shall include a Forward DROP and a
BACDROP.
DROP account shall mean the account established for each DROP participant.
DROP participant shall mean a beneficiary participating in the DROP.
Early service retirement shall mean a member's withdrawal from service under circumstances permitting
payment of a retirement allowance before such member is eligible for normal service retirement.
Earnable compensation shall mean an employee's base salary, including pickup contributions, for all
straight time hours worked, plus assignment pay and payments received for vacation and sick leave taken,
jury duty, and death -in -family leave taken, and any other items, if any, currently included in the calculation
of average final compensation. Earnable compensation shall not include overtime pay; payments for
accrued sick leave, accrued vacation leave, or accrued compensatory leave; holiday pay; premium pay for
holidays worked; the value of any employment benefits or nonmonetary entitlements; or any other form of
remuneration.
Employee shall mean a firefighter or police officer presently employed by the city as a firefighter or police
officer, whether in the classified or unclassified service of the city. Any member of the retirement system
who becomes employed by the Dade County metropolitan government by virtue of the merger, transfer or
assignment of governmental units or functions and who does not elect within six months thereafter to
become a member of the state and county officers' and employees' retirement system shall, so long as such
employment continues, be deemed an employee within the meaning of this section. In its capacity as the
employer of such member, the Dade County metropolitan government shall be deemed to be included with
the term "city" as such term is used herein to refer to the city in its capacity as the employer of a member.
Excess interest earnings shall mean the difference between the return on the actuarial market value of
the average assets (investment and noninvestment) of the City of Miami firefighters' and police officers'
retirement trust fund, as calculated in accordance with F.S. ch. 112 and the assumed return on the actuarial
market value of such assets for active members on the current actuarial valuation report.
Firefighter shall mean any person initially employed as a full-time professional firefighter by the city,
whose primary responsibility is the prevention and extinguishment of fires, the protection of life and
property, and the enforcement of any law pertaining to the prevention and control of fires.
FOP shall mean The Fraternal Order of Police, Lodge #20.
Forward DROP shall mean a Deferred Retirement Option Program where benefit is equal to the regular
retirement allowance the member would have received had the member separated from service and
commenced the receipt of benefits from the system.
Fund shall mean the City of Miami firefighters' and police officers' retirement trust fund.
/AFFshall mean the International Association of Fire Fighters, AFL-CIO, Local 587.
/CA shall mean an individual contribution account.
Investment expenses shall mean the cost of money management fees.
Member or member in service shall mean an employee for whom contributions to the retirement system
are made as required by this division.
Member absent from service shall mean any member ceasing to be a city employee who is absent from
service less than three years in a period of five consecutive years after last becoming a member and who
does not withdraw his or her accumulated contributions. In order for a member absent from service to be
entitled to receive a benefit during the period before membership elapses, the benefit must have vested
prior to the member's ceasing to be a city employee.
Member not in service shall mean any member who exercises a vested right to retirement pursuant to
section 40-203(e).
Membership credit shall mean credit received by a member for time spent in membership service or for
such time as is otherwise authorized by this division.
Membership service shall mean service as an employee on account of which contributions to the
retirement system are made as required by this division.
Miami city employees' retirement system shall mean the city pension system which was established
effective January 1, 1940, pursuant to Ordinance No. 2230, enacted December 6, 1939.
Noninvestment expenses shall mean the costs of administering the retirement system. Salaries for office
staff, overhead, professional fees for actuaries, accountants, and attorneys, and other similar costs are
examples of noninvestment expenses.
Normal costs shall mean the cost of benefits attributable to the current year under the frozen entry -age
actuarial costs method.
Option shall mean one of several choices available to members with respect to the manner in which a
retirement allowance may be paid.
Payback shall mean a member's contribution to the retirement system for membership credit for which
other than regular contributions may be made pursuant to this division. Contributions permitted for
paybacks shall not be picked up by the city but may be deducted from a member's compensation.
Pension shall mean a series of periodic payments usually for life, payable in monthly installments.
Pickup amounts shall mean employer contributions derived from a member's earnable compensation
through a reduction in the member's earnable compensation.
Police officer shall mean any person employed by the city who is vested with authority to bear arms and
make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement
of the penal, criminal, traffic, or highway laws of the State of Florida.
Regular contributions shall mean amounts picked up by the city from the earnable compensation of a
member. Regular contributions shall not include payback contributions of any kind or nature or any other
amounts which may be deducted from a member's compensation pursuant to this division.
Regularinterestshall mean interest at the rate determined by the board of trustees pursuant to section
40-197(b).
Retirement shall mean a member's withdrawal from service with a benefit granted to the member
pursuant to the provisions of this division.
Retirement allowance shall mean a pension provided by the retirement system.
Retirement system shall mean the City of Miami firefighters' and police officers' retirement trust.
Rule of 64 shall mean a computation consisting of the sum of a member's age and length of creditable
service, which sum shall permit normal service retirement upon the member's combined age and creditable
service equaling at least 64. The rule of 64 shall apply to all police officer members. The rule of 64 shall also
apply to any firefighter member whose combined age and length of creditable service is equal to or greater
than 64 on or before September 30, 2009.
Rule of 68 shall mean a computation consisting of the sum of a member's age and length of creditable
service, which sum shall permit normal service retirement upon the member's combined age and creditable
service equaling at least 68. The rule of 68 shall only apply to firefighter members whose combined age and
length of creditable service are less than 64 on September 30, 2009.
Service shall mean active service as an employee.
Service retirementshall mean a member's retirement from service under circumstances permitting
payment of a retirement allowance without reduction because of age or length of creditable service and
without special qualifications such as disability. Service retirement shall be considered normal retirement.
Trustee shall mean a member of the board of trustees of the retirement system.
Unfunded liabilityshall mean "unfunded actuarial liability" which is the excess of the actuarial accrued
liability of the retirement system over the value of its present assets. The term "unfunded liability" shall
include the frozen unfunded liability of the retirement system.
Vested benefit shall mean an immediate or deferred benefit to which a member has gained a
nonforfeitable right under the provisions of this division. Minimum vesting shall mean ten years of
creditable membership before the member is entitled to retirement benefits except accidental disability
retirement, service incurred disability retirement, and ordinary death benefits.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10910, § 1, 9-5-91; Ord. No. 11235, § 1, 3-27-95; Code 1980, § 40-200;
Ord. No. 11300, § 1, 9-14-95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13202, § 2,
9-27-10; Ord. No. 13551, § 2, 9-24-15; Ord. No. 14066, § 2, 5-12-22)
Sec. 40-192. - Retirement system established; purpose; name; date operative.
A retirement system is hereby established and placed under the administration and management of a
board of trustees for the purpose of providing retirement benefits pursuant to the provisions of this
division. The retirement system established herein shall be known as the "City of Miami firefighters' and
police officers' retirement trust" and shall be effective as of June 13, 1985.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-201)
Sec. 40-193. - Board of trustees.
(a) Selection.
(1) The board of trustees of the retirement system shall consist of nine persons selected as
follows:
a. One trustee selected by the city manager, which trustee shall not be the mayor, a city
commissioner, the city manager, the city finance director, or an assistant finance director;
b. Two trustees selected by the firefighters, which trustees shall belong to the bargaining
unit represented by the IAFF and shall be elected and serve according to the constitution
and bylaws of the IAFF;
c. Two trustees selected by the police officers, which trustees shall belong to the bargaining
unit represented by the FOP and shall be elected and serve according to the constitution
and bylaws of the FOP; and
d. Four independent trustees, which trustees shall not be city employees, selected by the
commission. Two such trustees shall be selected from a list of six persons submitted by
the FOP according to its constitution and bylaws, and two such trustees shall be selected
from a list of six persons submitted by the IAFF according to its constitution and bylaws.
Each of the lists submitted to the commission shall not contain any name which
duplicates a name appearing on the other lists. In the event a duplication of names does
occur, both lists shall be returned by the commission for resubmission without
duplication. An independent trustee shall have at least the following qualifications:
1. Be presently employed or self-employed on a full-time basis, or be retired from such;
2. Have resided in Miami (or its immediate environs) for the past five years;
3. Be able to attend board meetings if scheduled well enough in advance and agree to
resign from the board if meeting attendance is less than 75 percent in a one-year
period; however, the provisions of this subsection shall not apply to those individuals
who are members of city boards and who are (1) reservists in the United States Armed
Forces or members of the Florida National Guard, and have been ordered to active
military duty for national, state, or homeland defense and due to such duty cannot
attend board meetings, or (2) employees of agencies whose services are considered essential for national,
state, or homeland defense and due to such services cannot attend board meetings.
4. Have been involved in, within the last five years, and be knowledgeable about,
employee pension or similar fringe benefits;
5. Have knowledge of, be familiar with, and have had exposure to labor/management
relations;
6. Have knowledge of and be familiar with business principles;
7. Have not been, within the last five years, a public employee union representative nor
a representative of management for the city;
8. Not be actively involved in nor aspire to be actively involved in city, county or state
politics.
A trustee shall take an oath of office within ten days following selection as a member of the
board.
(b) Term of office.
(1) The term of office for each trustee shall be two years except for the initial trustees who shall
serve as follows:
a. Of the trustees selected by the firefighters, one shall serve for a one-year term and the
other for a two-year term;
b. Of the trustees selected by the police officers, one shall serve for a one-year term and the
other for a two-year term;
c. Of the two independent trustees appointed by the commission from the list submitted by
the IAFF, one shall serve for a one-year term and the other for a two-year term;
d. Of the two independent trustees appointed by the commission from the list submitted by
the FOP, one shall serve for a one-year term and the other for a two-year term; and
e. The trustee appointed by the city manager shall serve for a two-year term.
(2) Trustees may serve as many consecutive terms as those participating in the respective
selection processes deem appropriate.
(c) Fiduciary responsibility. Members of the board of trustees shall be the named fiduciaries of the
retirement system. As named fiduciaries, the trustees shall discharge their duties and
responsibilities solely in the interest of members and beneficiaries of the retirement system:
(2)
(1)
(2)
For the exclusive purpose of providing benefits to members and their beneficiaries and
defraying reasonable expenses of administering the retirement system;
With the care, skill, prudence and diligence under the circumstances then prevailing that a
prudent person acting in a like capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like aims; and
(3) In accordance with ordinances and other applicable law, documents and other instruments
governing the retirement system.
(d) Compensation. Trustees who are employees of the city, whether firefighters, police officers, or
otherwise, shall be granted leave with full pay when functioning as a trustee during their normal
working hours. Such trustees shall not otherwise be paid for their services as trustees. All other
trustees shall be compensated at any given time in the same manner as are members of the city's
civil service board.
(e) Meetings; voting; quorum; officers.
(1) The board shall meet at least once every two months following appropriate public notice and
shall meet and conduct the business of the retirement system in accordance with F.S. ch. 286.
(2) As a member of the board, each trustee shall be entitled to one vote, and five concurring
votes shall be necessary for a decision by the board. Five trustees shall constitute a quorum
for the purpose of meeting and transacting the business of the board.
(3) The board shall elect a trustee as chairperson and a trustee as vice -chairperson of the board.
(f) Vacancies; removal.
(1) If a vacancy occurs on the board due to resignation, death, removal or otherwise, the vacancy
shall be filled for the unexpired term of the departing trustee in accordance with the
provisions of this section for selection of the trustee who has vacated the office.
(2) The board may remove a trustee prior to completion of his or her designated term of office
for proper cause only, which cause shall be stated in writing. Notwithstanding any provision
of this division to the contrary, six concurring votes shall be necessary to effect such removal.
Proper cause shall mean a trustee's failure to satisfactorily discharge his or her fiduciary
duties and responsibilities, including, but not limited to, failure to attend 75 percent or more
board meetings in a one-year period.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-202; Ord. No. 11564, § 15, 10-28-97; Ord. No. 12201, § 1, 3-14-
02; Ord. No. 13676, § 2, 4-27-17)
Sec. 40-194. - Administration of retirement system.
(a) Plan administrator. The board shall serve as plan administrator of the retirement system.
(1) The general administrative duties of the board shall be:
a. To maintain such records as are necessary for calculating and distributing retirement
system benefits;
b. To maintain such records as are necessary for financial accounting and reporting of
retirement system funds;
c.
To maintain such records as are necessary for actuarial evaluation of the retirement system, including
investigation into the mortality, service and compensation experience of its members and beneficiaries;
d. To compile such other administrative or investment information as is necessary for the
management of the retirement system;
e. To process, certify and/or respond to all correspondence, bills and statements received by
the retirement system, as well as all applications submitted to the board for retirement
system benefits;
f. To establish and maintain communication with city departments and other local, state
and federal governmental units as is necessary for the management of the retirement
system, including preparing, filing, and distributing such reports and information as are
required by law to be prepared, filed or distributed on behalf of the retirement system;
g. To establish and maintain such other functions as are necessary to administer, manage
and operate the retirement system, or as otherwise required by law.
(2) The board shall submit the following information annually to the commission no later than
July 1 of each year: (a) a report showing the fiscal transactions of the retirement system for
the year ending on the preceding September 30 as well as the amount of accumulated cash,
securities, and other property of the retirement system on that date and (b) the current
actuarial valuation of the assets and liabilities of the system. The actuarial value of assets held
by the retirement system shall be designated as the lower of moving market value average
(three years) or statement value. The board may approve other methods of determining the
actuarial value of retirement system assets if such other methods are recommended by the
actuary retained by the board and found by the Florida bureau of local retirement systems,
division of retirement, department of administration, or its successor, to be in compliance
with state law. Prior to the first meeting of the board to consider a change in the method of
determining the actuarial value of retirement system assets, the board shall give timely,
written notice to the city of the proposed change.
(3) At least once in each three-year period, the board shall cause an actuarial investigation to be
made into the mortality, service and compensation experience of the members and
beneficiaries of the retirement system. Taking into account the result of this investigation, the
board shall adopt for the retirement system such mortality, service and other tables as are
necessary and proper. On the basis of these tables, an annual actuarial valuation of the
assets and liabilities of the funds of the retirement system shall be made. Actuarial
assumptions based on three-year experience analyses may be modified by the board at such
times as it deems appropriate. When a change in actuarial assumptions is considered by the
board, 60 days' notice shall be given to the city prior to the first meeting of the board to
consider any such change or any proposal or recommendation related thereto. Thereafter,
reasonable notice shall be given to the city of any and all subsequent meetings at which the issue of a
change in actuarial assumptions or a related proposal or recommendation is to be considered.
(b) Pension administrator; board physician; advisors.
(1) The board shall employ a pension administrator to assist the board in the performance of its
administrative duties. The pension administrator may, subject to the approval of the board,
employ such staff as is necessary for the proper administration of the retirement system.
a. The pension administrator selected by the board shall have at least the following
qualifications:
1. Have an accounting or pension administration background;
2. Have managerial experience including hiring, directing and motivating a small staff;
3. Have sufficient knowledge or experience to supervise data processing operations;
4. Have experience with filing government forms (including those related to federal and
state compliance requirements) and have the initiative to obtain resource data when
specific information is not readily available;
5. Be capable of using benefit formulas to calculate and pay benefits;
6. Be capable of prudent financial management and obeying guidelines established by
the board;
7. Be capable of developing cash flow projections;
8. Be capable of preparing financial reports reflecting the activity of the trust and
financial trends;
9. Be capable of maintaining an investment schedule;
10. Be capable of maintaining minutes of meetings of the board of trustees;
11. Be capable of preparing correspondence, issuing forms, receiving and processing
benefit claims, and expressing ideas in writing;
12. Be able to insist upon, and actively pursue delivery of, all reports and other
documents required for efficient operation of the retirement system;
13. Have effective oral communications skills;
14. Have a good employment attendance record;
15. Be efficient, practical and committed to responsible and effective operation of the
retirement system, its finances and expenses;
16. Be able to remain neutral on decisions to be made by the board and serve all board
members in an impartial and arms -length fashion, giving due recognition to the
ultimate fiduciary obligation to members and beneficiaries of the retirement system.
b.
The board shall have a continuing duty to observe and evaluate the performance of any pension
administrator employed by the board. The board shall, in selecting any such pension administrator,
exercise all judgment and care under the circumstances then prevailing which persons of prudence,
discretion and intelligence exercise in the management of their own affairs.
(2) The board shall retain a physician to assist the board in the performance of its administrative
duties. The physician shall conduct or otherwise provide for any medical examination
required under the provisions of this division and may refer any examinee to a specialist or
specialists. Following any medical examination required by this division, and after taking into
consideration the reports of specialists, if any, the physician shall submit written conclusions
and recommendations regarding the examinee to the board.
(3) The board shall have authority to retain its own legal counsel, accountants, actuaries, and
other professional advisors to assist the board in the performance of its administrative
duties. The board may act without independent investigation upon the professional advice of
advisors so retained.
(4) The board shall, consistent with its independence from the board of trustees of the City of
Miami general employees' and sanitation enforcement retirement trust, endeavor to share
personnel, services and facilities with the latter board.
(c) Public records; board documents; written communication to and from city; commission agenda.
(1) The board shall keep a record of all of its proceedings which shall be maintained and open to
public inspection in accordance with F.S. ch. 286. Such records shall reflect a complete and
comprehensive account of the discussions and actions taken by the board.
(2) The board shall provide the city manager with copies of all documents relating to the
retirement system contemporaneously with the making or receipt of such documents by the
board or immediately thereafter. The city manager shall provide the pension administrator of
the board with copies of all documents relating to the retirement system contemporaneously
upon the making or receipt of such documents by the city or immediately thereafter. All
written communications relating to the retirement system from the board to the city shall be
made directly to the city manager. All written communications to the board from the city shall
be made directly to the board, with copies to the pension administrator of the board.
(3) When a hearing before or consideration by the commission is required for retirement system
business, such business shall be placed on the agenda of the commission and heard at its
next regularly scheduled meeting; provided, that any request for hearing or consideration of
retirement system business complies with the city's requirements or guidelines as to
timeliness and adequacy of information.
(d)
Rules and regulations. Subject to any limitation contained in this division, the board may from time to time
establish such rules and regulations as are necessary for efficient administration and management of the
retirement system.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-203)
Sec. 40-195. - Trust fund.
(a) Nature of trust.
(1) The Miami city employees' retirement system trust is an irrevocable trust previously
established by ordinance. The commission, having retained that right, hereby appoints a
successor trustee to administer the trust thereby created. The successor trustee designated
by the commission shall be the board of trustees of the City of Miami firefighters' and police
officers' retirement trust. Hereafter, the Miami city employees' retirement system trust shall
be known as the City of Miami firefighters' and police officers' retirement trust fund but it
shall remain and continue as the same irrevocable trust as set forth in prior city ordinances.
(2) The board shall be vested with full legal title to the City of Miami firefighters' and police
officers' retirement trust fund and shall hold the fund as an irrevocable trust to be applied
from time to time in accordance with the provisions of this division. All payments made to the
fund by the city and by members of the system, and all assets whatsoever of the fund and the
income thereof, without distinction between principal and income, shall be held by the board
in a single trust fund. The board may, however, segregate or invest separately any portion of
the fund.
(3) Members of the board of trustees shall be the named fiduciaries of the fund. As named
fiduciaries, the trustees shall hold, manage, control and safeguard the fund solely in the
interest of members and beneficiaries of the retirement system:
a. For the exclusive purpose of providing benefits to members and their beneficiaries and
defraying reasonable expenses of administering the retirement system;
b. With the care, skill, prudence and diligence under the circumstances then prevailing that a
prudent person acting in a like capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like aims;
c. By diversifying the investments of the fund so as to minimize the risk of losses, unless
under the circumstances it is clearly prudent not to do so;
d. In accordance with ordinances and other applicable law, documents and other
instruments governing the fund.
(4) The board shall have authority to retain its own legal counsel, accountants, actuaries and
other professional advisors to assist the board in the performance of its trust duties. The
board may act without independent investigation upon the professional advise of advisors so
retained.
(5) The board is authorized to prosecute or defend actions, claims or proceedings of any nature
or kind for the protection of fund assets and for the protection of the board in the
performance of its duties.
(b) Trust property.
(1) Trust property shall consist of all cash, securities and other property previously accumulated
on behalf of the Miami city employees' retirement system trust, together with such other
cash, securities and other property as the board may at any time hold or acquire from or on
behalf of the city or members of the retirement system pursuant to this division, and the
accruals thereto.
(2) The board may buy, sell, convert, redeem, exchange or otherwise dispose of trust property at
any public or private sale without notice or advertisement, for cash or upon credit with or
without security, without obligation on the part of any person dealing with the board to see
the application of the process of or inquire into the validity, expedience or propriety of any
such disposition, and may make, execute, acknowledge and deliver contracts, assignments,
waivers or other instruments.
(3) The board shall have the authority to vote upon any stocks, bonds or securities of any
corporation, association or trust and to give general or specific proxies and powers of
attorney with or without power of substitution; to participate in mergers, reorganizations,
recapitalizations, consolidations, and similar transactions with respect to such securities; to
deposit such stock or other securities in any voting trust or any protective or like committee
or with depositories designated by the board, subject to the approval of the commission; to
amortize or fail to amortize any part or all of the premium or discount resulting from the
acquisition or disposition of assets; and generally, to exercise any of the powers of an owner
with respect to stocks, bonds or other investments comprising the fund which the board may
deem to be in the best interest of the fund to exercise.
(c) Investments.
(1) The trustees shall, in acquiring, investing, reinvesting, exchanging, retaining, selling and
maintaining property for the benefit of the FIPO trust fund exercise the judgment and care
under the circumstances then prevailing, which persons of prudence, discretion and
intelligence exercise in the management of their own affairs, not in regard to speculation but
in regard to the permanent disposition of their funds, considering the probable income as
well as the probable safety of their capital. Within the limitations of the foregoing standard,
the trustees are authorized to acquire and retain every kind of property, real, personal or
mixed, and every kind of investment specifically including, but not by way of limitation, bonds,
debentures and other corporate obligations, and stocks, preferred or common, which
persons of prudence, discretion and intelligence acquire or retain for their own account and, within the
limitations of the foregoing standard, the trustees may retain property acquired, without limitation as to
time and without regard to its suitability for original purchase. The intent of this provision is to remove any
and all restrictions which are otherwise imposed by F.S. ch. 175 or 185, and which may be removed.
(d) Money manager.
(1) Pursuant to written agreement, the board shall retain one or more money managers for the
management of property held in the fund, and the board shall convey property of the fund to
such money manager(s) for investment and reinvestment in accordance with this section.
a. The board shall establish written guidelines and objectives against which the investment
performance of any money manager retained by the board shall be measured. If a money
manger fails to meet the guidelines and objectives, or fails to perform in accordance with
its contractual agreement with the board, the money manager may be terminated by the
board. The performance of the investment portfolio for the retirement system shall not
be less than 90 percent of the median performance of comparable portfolios as
determined jointly by the board and the city manager. If the performance falls below that
minimum standard, the money manager(s) shall automatically be removed unless, based
upon extenuating circumstances, the board recommends continuation and such
continuation is approved by the commission.
b. In the acquisition, investment, reinvestment, exchange, retention, sale and management
of property for the benefit of the fund, the money manager(s) shall exercise all judgment
and care under the circumstances then prevailing which persons of prudence, discretion
and intelligence exercise in the management of their own affairs, not in regard to
speculation, but in regard to the permanent disposition of their funds, considering the
probable income as well as the probable safety of their capital.
c. Upon written request by the board, the money manager(s) shall disburse cash or property
from the fund to the board or its designee. In requesting the money manager(s) to make
any such distribution, the board shall follow the provisions of this division and shall not
direct that any payment be made that would cause any part of the fund to be used for or
diverted to purposes other than providing benefits to members and beneficiaries of the
retirement system and defraying reasonable expenses of administering the retirement
system. Any written request to the money manager(s) from the board shall constitute a
certification that the distribution so requested is one that the board is authorized to
direct, and the money manager(s) shall not be required to investigate the application of
such money by the board or its designee.
(2)
The board shall have a continuing duty to observe and evaluate the performance of any money manager or
other investment counsel retained by the board. The board shall, in selecting a money manager or other
investment counsel, exercise all judgment and care under the circumstances then prevailing which persons
of prudence, discretion and intelligence exercise in the management of their own affairs.
(e) Records to be maintained.
(1) The board shall require that any money manager or other agent who has custody or control
of any trust property keep accurate and detailed accounts of all investments, receipts,
disbursements and other transactions of or pertaining to such trust property, and the board
shall further require that all accounts, books and records relating thereto be open to
inspection and audit at all reasonable times by the city, the board, or their designees.
(2) The board shall also keep accurate and detailed accounts of all investments, receipts,
disbursements and other transactions of or pertaining to trust property, and all accounts,
books and records relating thereto shall be open to inspection and audit at all reasonable
times by the city or its designees.
(f) DROP account exceptions.
(1) None of the restrictions in this section hereinabove shall apply to assets in DROP accounts
which may be invested in any investments otherwise not prohibited by law.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10500, § 1, 10-27-88; Code 1980, § 40-204; Ord. No. 11300, § 1, 9-14-
95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 13676, § 2, 4-27-17)
Sec. 40-196. - Contributions.
(a) Member contributions.
(1) 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. Effective the first full pay period following October 1, 1999, regular
contributions of each member of the retirement system shall be made each pay period at the
rate of seven percent of each member's earnable compensation.
(2) a. Effective the first full pay period following October 1, 2000, and thereafter, regular
contributions of each member of the retirement system shall be made each pay period at
the rate of seven percent or equal to the city's contribution, whichever is less.
b. Effective the first full pay period following October 1, 2000, should the member
contribution be less than seven percent, the difference between the seven percent and
the actual contribution shall be deducted from the member's paycheck and placed into an
individual contribution account (ICA), as part of the retirement system. ICA's shall be
established as allowed by IRS Code. Only if it is found that the IRS Code does not allow for an individual
account, the reduction in contribution shall be reflected in the member's paycheck.
(3) a. Effective the first full pay period following the effective date of the ordinance from which
this article derives, and thereafter, regular contributions of each firefighter member of the
retirement system shall be made at the rate of eight percent of each firefighter member's
earnable compensation.
b. Effective the first full pay period following the effective date of the ordinance from which
this article derives, should the firefighter member's contribution be less than eight
percent, the difference between the eight percent and the actual contribution shall be
deducted from the firefighter member's paycheck and placed into an individual
contribution account (ICA), as part of the retirement system. ICA's shall be established as
allowed by IRS Code. If it is found that the IRS Code does not allow for an individual
account, the reduction in contribution shall be reflected in the member's paycheck.
(4) a. Effective the first full pay period following October 1, 2009, and thereafter, regular
contributions of each firefighter member of the retirement system shall be made at the
rate of nine percent of each firefighter member's earnable compensation.
b. Effective the first full pay period following October 1, 2009, should the firefighter
member's contribution be less than nine percent, the difference between the nine
percent and the actual contribution shall be deducted from the firefighter member's
paycheck and placed into an individual contribution account (ICA), as part of the
retirement system. ICA's shall be established as allowed by IRS Code. If it is found that the
IRS Code does not allow for an individual account, the reduction in contribution shall be
reflected in the member's paycheck.
(5) a. Effective the first full pay period following October 1, 2010, and thereafter, regular
contributions of each firefighter member of the retirement system shall be made at the
rate of ten percent of each firefighter member's earnable compensation.
b. Effective the first full pay period following October 1, 2010, should the firefighter
member's contribution be less than ten percent, the difference between the ten percent
and the actual contribution shall be deducted from the firefighter member's paycheck
and placed into an individual contribution account (ICA), as part of the retirement system.
ICA's shall be established as allowed by IRS Code. If it is found that the IRS Code does not
allow for an individual account, the reduction in contribution shall be reflected in the
member's paycheck.
(6) Individual contribution accounts.
a.
Earnings. Interest on ICA's shall be determined in the same manner as the COLA transfer methodology.
Interest shall be credited periodically to the ICA's as determined by the retirement system board's actuary,
but not less than once a year.
b. Disbursements. Member contributions and earnings in ICA's shall be deemed 100 percent
vested upon deposit. Upon the member's separation, ICA balances shall be disbursed as
provided under the IRS Code. Disbursement of ICA funds may only occur upon separation
or as mandated under the IRS Code.
(7) a. Effective the first full pay period following October 1, 2012, the member contribution for
police officers hired prior to October 1, 2012 shall be ten percent of earnable
compensation; and effective September 30, 2014, the member contribution for police
officers hired prior to October 1, 2012 shall be seven percent of earnable compensation.
The member contribution for police officers hired on or after October 1, 2012 shall be
three percent of earnable compensation greater than the member contribution for police
officer members hired prior to October 1, 2012.
b. Effective the first full pay period following October 1, 2012, the member contribution for
firefighters shall be ten percent of earnable compensation. On September 30, 2014, the
member contribution for firefighters shall be seven percent of earnable compensation.
The member contribution for firefighters hired on or after October 1, 2014, shall be ten
percent of earnable compensation.
(b) City contributions. Effective October 1, 1993, the city's annual fiscal contribution to the retirement
system shall provide for the following: (1) noninvestment expenses of the retirement system; and
(2) required actuarial costs of the retirement system.
(1) The city's contribution for noninvestment expenses of the retirement system in any given
fiscal year shall be determined by the same process the city uses for that fiscal year in
determining the budget of the downtown development authority and the department of off-
street parking.
(2) The city's contribution to the retirement system shall be determined by applying the
individual entry age actuarial funding method, as such method is defined by the American
Academy of Actuaries, to the projected liabilities of the system as of October 1, 2011, using an
assumed system payroll growth rate of three percent and using an unfunded liability
amortization period of 25 years, or such other reasonable payroll growth rate and
amortization period as agreed by the retirement system's actuary and the city's actuary. The
contribution shall be determined as of October 1 of each year (based on the valuation payroll
and the program provisions in effect at that time) for the fiscal year beginning on the
subsequent October 1, adjusted for interest for one year, based on the actuarial
assumptions.
(3) Effective as of the actuarial valuation for October 1, 1998, the investment assumption shall be
net of any investment expense assumptions.
(4) The actuarial methodology for evaluating assets shall be a moving market value averaged
over three years, from October 1, 1992, prospectively. (As of October 1, 1992, market value
shall be used; as of October 1, 1993, a two-year moving average shall be used; as of October
1, 1994, and thereafter, the three-year moving average shall be used.) The average of ratios of
market to book values as of the current and two most recent September 30's is applied to
book value at the current September 30. The result cannot be greater than 100 percent of
market value or less than 80 percent of market value.
(5) The parties recognize that the amount to be contributed by the city to normal costs in any
given year is affected by the assumptions made by the actuaries who calculate the normal
costs by the method set forth in subsection (b)(2) above.
(6) 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 (4)
above. The retirement system's actuary shall use the actuarial assumptions adopted by the
board. The city's actuary may use any actuarial assumptions deemed appropriate by that
actuary. If the retirement system's actuary and the city's actuary agree on the normal costs
contribution for the city, that amount shall be contributed by the city. If the two actuaries
cannot agree on the normal costs of contribution after attempting to do so, they shall
promptly select an independent third actuary. If they are unable to agree on a third actuary,
one shall be selected by the American Academy of Actuaries. The third actuary shall, as soon
as practicable, submit a funding recommendation utilizing standard acceptable funding
techniques and assumptions to the retirement system and the city commission. The city
commission shall then fund the amount recommended by either the retirement system's
actuary or the city's actuary, whichever recommendation is closer to the recommendation of
the third actuary.
(7) On or before May 15 of each year, the board shall certify to the city manager:
a. The amount of appropriation necessary to pay the normal costs to the retirement system
for the next fiscal year; and
b. The amount of appropriation required to pay the noninvestment expenses of the
retirement system for the next fiscal year.
(8) All contributions made by the city to the retirement system for any given fiscal year shall be
made quarterly, plus interest, in equal payments, on the first day of each quarter during the
fiscal year in question; or sooner, at the city's option, with appropriate interest adjustment. If
the amount of the contribution for normal costs to the retirement system has not been
determined by the payment date, then the city shall make quarterly payments, based upon
the prior year's contribution. Once the amount of normal costs is determined, if the amount of the
contribution differs from the amount previously paid, then a corresponding adjustment shall be made in
full on the next quarterly payment.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 11110, § 2, 1-13-94; Code 1980, § 40-205; Ord. No. 11300, § 1, 9-14-
95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 13072, § 2, 6-11-09; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13210, §
1, 10-14-10; Ord. No. 13344, § 1, 9-27-12)
Sec. 40-197. - Accounts.
(a) Membership account.
(1) The membership account shall be credited with the accumulated contributions of each
member of the retirement system and the accumulated contributions of each member
absent from service.
(2) Accumulated contributions withdrawn by a member or withdrawn by a member absent from
service, and accumulated contributions paid to a legal representative or designated
beneficiary in the event of a member's death while a member, shall be charged to the
membership account.
(3) Upon the retirement of a member or upon a member's election of a vested right to
retirement, an amount equal to the member's accumulated contributions shall be transferred
from the membership account to the benefit account.
(b) Benefit account.
(1) The benefit account shall be credited with accumulated contributions transferred from the
membership account, all city contributions to the retirement system, all miscellaneous
income payable to the retirement system, all interest and dividends earned on the funds of
the retirement system (except as provided in paragraph (b)(1)b below), and all reserves for
payment of retirement system benefits.
a. Miscellaneous income. The benefit account shall be credited with any miscellaneous
income payable to the retirement system. Such income includes:
1. All fines and penalties imposed on firefighters or police officers for breach of any rule
of the police or fire -rescue departments;
2. All rewards in moneys, fees, gifts and emoluments that may be paid or given for or on
account of extraordinary service by the police or fire -rescue departments or any
member thereof (except when allowed to be retained by competitive award or by the
rules of the departments), and all moneys, gifts or donations received or given or
earned by the police and fire -rescue departments for pension or retirement benefits;
and
3.
All other sums which may be paid or payable to the retirement system other than pursuant to this division.
Miscellaneous income shall be applied as a credit against contributions otherwise
required to be made to the retirement system by the city.
b. Interest and dividends. All interest and dividends earned on the funds of the retirement
system shall be credited to the benefit account. On January 1 of each year, the board shall
transfer, from the benefit account to the membership account, amounts sufficient to
allow regular interest on the balances of the members' accounts in the membership
account. "Regular interest" shall mean interest at such percentage rate compounded
annually as shall be determined by the board to be equitable both to members and to
taxpayers of the city, after taking into consideration the actual interest earnings of the
retirement system for the preceding years and the probable earnings of the system in the
future. Such rate shall be limited to a minimum of three percent and a maximum of four
percent.
(2) All expenses of the retirement system shall be chargeable to the benefit account. Such
expenses include, but are not limited to, the following:
a. All retirement benefits paid to beneficiaries of the Miami city employees' retirement
system and to beneficiaries of the City of Miami firefighters' and police officers'
retirement trust; and
b. All retirement allowances paid to persons under the provisions of the former pension
and/or retirement fund for members of the police and fire -rescue departments of the City
of Miami or paid to former members of that fund who did not become members of the
Miami city employees' retirement system.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-206)
Sec. 40-198. - Physical examination required; effect of preemployment disability.
(a) An employee must submit to a physical examination by the city physician or some other physician
authorized by the board before such employee may be accepted as a member of the retirement
system.
(b) Upon commencement of active membership in the retirement system, a member with a specific
disability at the time of employment by the city shall waive in writing any right to an accidental or
service -incurred disability retirement allowance based on the member's preemployment
disability or any aggravation thereof. A member with a preemployment disability shall be eligible
for an accidental or service -incurred disability retirement allowance only if it can be shown to the
satisfaction of the board that such member would have been entitled to an accidental or service -
incurred disability retirement allowance notwithstanding the preemployment disability.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-207)
City Code cross reference —Physical examination required for membership in retirement system or plan,
medical requirements for membership, § 40-3.
Sec. 40-199. - Membership; right of certain persons to reject membership.
(a) The membership of the retirement system shall include all employees, and any member who is
absent from service less than three years in a period of five consecutive years after last becoming
a member and who has not withdrawn his or her accumulated contributions. The active
membership of the retirement system shall include all employees but shall not include any
member absent from service or any DROP participant.
(b) With the exception of persons eligible to decline membership in the retirement system,
participation in the retirement system is a mandatory condition of employment for employees.
An employee's acceptance of employment with the city shall constitute authorization for the city
to pick up contributions from the earnable compensation of the employee, unless and until an
election is made. Those persons employed in the following positions shall have the right to reject
membership in the City of Miami firefighters' and police officers' retirement trust ("retirement
system") within one year from their respective commencements of employment with the city,
subject to performance of the conditions set forth in paragraphs (b)(1) and (2), below, within the
aforesaid time period: chief of the fire -rescue department, assistant chiefs of the fire -rescue
department, chief of police and assistant chiefs of police. The conditions upon which membership
in the retirement system may be rejected by any person employed in any of the foregoing
positions shall be as follows:
(1) Submission to the commission of a written trust agreement wherein the employee rejects
membership in the retirement system and wherein provision is made for the city to
contribute moneys on behalf of such employee to a public trust fund designated by the
employee and approved by the commission, such contribution to be made in lieu of the city's
contribution on behalf of the employee to the retirement system.
a. The contribution to be made by the city under the terms of the above agreement shall be
calculated at the rate of eight percent of the individual's annual earnable compensation.
b. A contribution to the designated public trust fund must be made by the employee
rejecting membership in the retirement system, and such contribution by the employee
shall be picked up by the city at a rate of not less than five percent of the employee's
annual earnable compensation.
c. An employee may, if so provided in the trust agreement, take actual or constructive
receipt of his or her contribution, or those contributions made by the city on his or her
behalf prior to reaching age 55 or upon becoming permanently and totally disabled by
making a revocable election of distribution of accounts pursuant to the mode of
distribution of benefits as provided in the trust agreement.
(2) If an eligible employee fails to comply with all of the conditions set forth above, the employee
shall not have the right to reject membership in the retirement system.
(c) Should any member in any period of five consecutive years after last becoming a member be
absent from service more than three years, or should any member withdraw accumulated
contributions, or should any member become a member of any other city -sponsored retirement
plan or system, or should any member become a beneficiary or die, he or she shall thereupon
cease to be a member of the retirement system.
(d) Upon request by the board, the city manager shall submit to the board a statement showing the
name, title, compensation, duties, date of birth and length of service of each member, as well as
such other information regarding members as the board may require in order to transact the
business of the retirement system.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10458, § 1, 7-14-88; Code 1980, § 40-208; Ord. No. 11300, § 1, 9-14-
95)
Sec. 40-200. - Transfer of city employees to retirement system.
(a) Any person employed by the city in a capacity other than firefighter or police officer, who is
reclassified and appointed to the position of firefighter or police officer and who, prior to such
appointment, was a member of the City of Miami general employees' and sanitation employees'
retirement trust ("retirement plan") shall have membership in the retirement plan transferred to
the retirement system, effective the date of such appointment. Creditable service earned while a
member of the retirement plan shall be deemed creditable service in the retirement system upon
such transfer.
(b) Commencing on the effective date of transfer to the retirement system, a member who has
transferred from the retirement plan shall make regular contributions at the rate required by the
retirement system. Accumulated contributions credited in the retirement plan to the account of
such member shall be transferred to the membership account of the retirement system and
credited to the member thereunder. There shall also be transferred, from the benefit account of
the retirement plan to the benefit account of the retirement system, the amount of assets, as
determined by actuarial valuation, held by the retirement plan for any plan member who
transfers to the retirement system.
(c) Any member of the retirement system who transferred from the retirement plan may contribute
to the retirement system an amount computed to be sufficient with the member's prospective
regular contributions to make accumulated contributions at normal retirement age equal to the
amount such accumulated contributions would have been had the member been a member of
the retirement system during his or her entire period of service with the city. If such election is
not made, upon service, early service, rule of 64 or 68 or ordinary disability retirement, the
member's retirement allowance shall be reduced by the actuarial equivalent of the amount by
which accumulated contributions fall short of the full amount which would have been the member's
accumulated contributions had he or she been a member of the retirement system during his or her entire
period of service with the city. Any member who elects to make a contribution pursuant to this subsection,
and who is granted disability retirement under the retirement system, shall have his or her disability
retirement allowance reduced by the actuarial equivalent of the then unpaid amounts.
(1) An election permitted by this subsection must be made on a form provided by the board.
(2) Contributions made by a member pursuant to this subsection may be made either by a single
lump -sum payment or by a series of periodic payments mutually agreed upon by the member
and the board, including periodic deductions from the member's compensation. Regardless
of the manner of payment, an amount to be contributed pursuant to this subsection must be
paid to the retirement system within five years of notification to the member of the amount
to be contributed.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-209; Ord. No. 13091, § 1, 9-24-09)
Sec. 40-201. - Creditable service.
(a) For any member of the retirement system, creditable service shall consist of all time spent in
membership service since last becoming a member, plus any other time for which membership
credit is received pursuant to the provisions of this division. Creditable service previously
obtained as a member of the Miami city employees' retirement system shall be deemed
creditable service under the City of Miami firefighters' and police officers' retirement trust to the
extent such service remained credited to the member on May 23, 1985.
(b) The board shall fix and determine by appropriate rules and regulations the amount of service in
any year which is equivalent to a year of membership service, but in no case shall more than one
year of membership service be creditable for all service in one calendar year. The board shall not
allow credit for membership service for any period of more than one month during which an
employee is continuously absent without pay. Subject to the foregoing restrictions, the board
may adopt rules and regulations to verify membership credit claimed by any member.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-210)
Sec. 40-202. - Paybacks for membership credit.
Members shall have the right to receive membership credit in the retirement system in accordance with
the following provisions:
(1) Credit for previous membership service for certain reemployed former members.
a.
If a former member of the retirement system who is not a beneficiary and is not within five years of
reaching normal retirement age, whose membership has not been terminated for a period in excess of
three years and who, at the time of termination of membership, had five or more years of creditable
service, again becomes a member, he or she may apply for membership credit for prior membership
service by filing with the board an election to pay back the amount of accumulated contributions previously
returned to him or her. If an election to receive membership credit is made pursuant to this paragraph, a
member shall pay back withdrawn accumulated contributions at the rate in effect when his or her previous
membership terminated, together with regular interest thereon, or, subject to the approval of the board,
pay back an amount equal to the total amount of accumulated contributions previously withdrawn,
together with regular interest thereon.
b. If a former member, who is not a beneficiary, again becomes a member and is not
otherwise eligible to receive membership credit pursuant to subsection (1)a, he or she
may apply to the board for membership credit for prior membership service up to a
maximum of four years, provided separation from prior employment was under
honorable conditions. If an election to receive membership credit is made pursuant to
this paragraph, the amount of contributions to be paid back on account of prior
membership service shall be based upon the member's current earnable compensation
and the current contribution rate, excluding interest.
c. If a former member of the retirement system was terminated by the city due to reduction
in personnel and is thereafter reemployed by the city within a period of three years, he or
she may apply for membership credit for prior membership service by filing with the
board an election to pay back the amount of accumulated contributions previously
returned to him or her. If an election to receive membership credit is made pursuant to
this paragraph, a member shall pay back withdrawn accumulated contributions to the
retirement system in an amount determined by the board. Credit shall not be allowed
under the provisions of this paragraph for employment with the city prior to January 1,
1940.
d. Any election permitted by this subsection must be made on a form provided by the board.
The form shall be sent to a member by registered mail and must be returned to the board
within 30 days following receipt thereof in order to establish the election desired.
e. Contributions made by a member pursuant to this subsection may be made either by a
single lump -sum payment or by a series of periodic payments mutually agreed upon by
the member and the board, including periodic deductions from the member's
compensation. Regardless of the manner of payment, any payback of contributions
pursuant to the subsection must be completed within five years of notification to the
member of the amount to be paid back.
f.
Upon timely payment in full of a payback permitted by this subsection, and following a period of five years
of active membership subsequent to a member's date of restoration, a member shall be credited with his
or her previous membership service; provided, that in the event of disability retirement prior to the
preceding terms having been met, a member shall receive credit for previous service but his or her
disability benefit retirement allowance shall be reduced by the actuarial equivalent of the unpaid portion of
the amount to be paid back.
g. Any person restored to active membership who is eligible to, but does not, make an
election provided for in this subsection, or who, having made the election, fails to
complete a payback within the required time (except as otherwise provided in paragraph
(1)f above), shall be considered a new member for all purposes of the retirement system
as of his or her date of restoration and shall not be entitled to any of the rights and
benefits provided under this subsection.
(2) Credit for previous employment for certain laborers, security guards and custodial workers.
a. Any member who has denied the right at any time between April 1, 1955, and September
1, 1962, to participate in the Miami city employees' retirement system or in the Miami city
general employees' plan by reason of employment with the city as a laborer, security
guard or custodial worker, may receive membership credit for time employed as a
laborer, security guard, or custodial worker between the aforesaid dates, provided that:
1. The member files a written claim with the board on or before December 31, 1995,
which claim shall state all employment with the city between April 1, 1955, and
September 1, 1962, as well as any other facts the board may require for the proper
determination of the membership credit claimed pursuant to this subsection; and
2. The member, prior to retirement or departure from city employment, pays to the
retirement system contributions for the membership credit claimed. Such
contributions shall be computed at the then contribution rate of the member's group
and class times the member's then annual earnable compensation, plus four percent
interest thereon, compounded annually from the date of first creditable service
hereunder to the date of payment.
b. Contributions made by a member pursuant to this subsection may be made either by a
single lump -sum payment or by a series of periodic payments mutually agreed upon by
the member and the board, including periodic deductions from the member's
compensation. Regardless of the manner of payment, an amount to be contributed
pursuant to this subsection must be paid to the retirement system within five years of
notification to the member of the amount to be contributed.
c.
A payback permitted by this subsection must be completed in full and within the required time period in
order for any membership credit granted hereunder to be utilized as a basis for determining any
retirement system benefit.
(3) Credit for military service.
a. Notwithstanding any provision in this division to the contrary, any employee who was a
member of the retirement system prior to entry into military service, and who did not
withdraw accumulated contributions prior to military service, who was granted a leave of
absence by the city under the provisions of Resolution No. 16366, passed and adopted by
the commission August 28, 1940, as amended by Resolution No. 18115, passed and
adopted by the commission March 24, 1943, and who returns to service under the
provisions of such resolution, shall retain membership in the retirement system
regardless of the length of the period of absence. In determining the creditable service of
any firefighter or police officer whose retirement becomes effective on or after December
31, 1999, credit for up to a maximum of five years of the time spent in the military service
of the Armed Forces of the United States shall be added to the years of actual service, if:
(i) the firefighter or police officer is in the active employ of the city prior to such service
and leaves a position, other than a temporary position, for the purpose of voluntary or
involuntary service in the Armed Forces of the United States; and (ii) the firefighter or
police officer is entitled to reemployment under the provisions of the Uniformed Services
Employment and Reemployment Rights Act; and (iii) the firefighter or the police officer
returns to his or her employment as a firefighter or police officer of the city within one
year from the date of his or her release from such active service. Any member of the
retirement system who qualifies for service credit as hereinabove set forth and serves a
period of time in excess of five years shall, receive membership credit for the time spent
in the military service in excess of five years, by contributing the amount he or she would
have contributed had he or she remained in service for the period of time in excess of five
years. Payments made to the retirement system pursuant to this paragraph shall be made
in such manner as the board prescribes.
b. Any member of the retirement system who withdrew accumulated contributions due to
entrance into military service during World War II, and who qualifies under the provisions
of Resolution No. 16366, passed and adopted by the commission August 28, 1940, as
amended by Resolution No. 18115, passed and adopted by the commission March 24,
1943, may receive membership credit for prior membership service by redepositing the
accumulated contributions withdrawn, together with regular interest thereon, in such
manner as shall be prescribed by the board.
c.
Any member who has served on active military duty but is ineligible to claim credit for such service under
subsection (3)a or (3)b shall receive membership credit up to a maximum of four years for the time spent
on active military service in the armed forces of the United States, provided that:
1. The active military service was wartime service as declared by federal statute or
executive order, and the member presents to the board such proof of wartime service
as the board shall determine to be sufficient;
2. The member was discharged or released from the military service under honorable
conditions;
3. The member has completed ten years of creditable service;
4. The member elects to claim membership credit on a form provided by the board,
which form shall be sent to eligible members by registered mail upon completion of
ten years' creditable service and must be returned to the board within 30 days after
receipt thereof in order to establish such election; and
5. The member, prior to retirement, pays to the retirement system contributions for
such military service. Such contributions shall be computed at the current
contribution rate times the member's first year of earnable compensation subsequent
to July 1, 1945, for which creditable service has been earned under the retirement
system, plus four percent interest thereon, compounded annually from the date of
first creditable service to the date of payment.
Contributions made by a member pursuant to this paragraph may be made either by a single
lump -sum payment or by a series of periodic payments mutually agreed upon by the member
and the board, including periodic deductions from the member's compensation. Regardless
of the manner of payment, an amount to be contributed pursuant to this subsection must be
paid to the retirement system within five years of notification to the member of the amount
to be contributed. If, however, any member receives disability retirement prior to the
completion of a payback elected under this paragraph, the member shall be credited with the
military service claimed but his or her disability benefit shall be reduced by the actuarial
equivalent of the unpaid portion of the amount to be paid back.
(4) Credit for maternity leave.
a. Any member of the retirement system who, prior to March 8, 1984, took an unpaid leave
of absence for maternity purposes shall be eligible to receive membership credit for such
unpaid leave up to a maximum of 180 days. Said election shall be available until June 24,
1985. Those members electing to claim membership credit pursuant to this provision
shall pay into the retirement system accumulated contributions at the current
contribution rate times their current earnable compensation, such payment to be made
either in a lump sum or prorated over a period not to exceed one year.
b. On or after May 23, 1985, members shall be eligible to receive membership credit for
unpaid leave taken for maternity purposes up to a maximum of 180 days, provided that
they have exhausted all vacation time, sick leave time, earned overtime, or similar time.
Those members electing to claim membership credit pursuant to this provision shall pay
into the retirement system accumulated contributions at the current contribution rate
times their current earnable compensation, such payment to be made either in a lump
sum or prorated over a period not to exceed one year. Any payback made pursuant to
this paragraph must commence within 30 days of the member's return from the unpaid
maternity leave.
(5) Restoration of service credit for prior continuous service. Any member who has continuous
service with the City of Miami prior to becoming a member of the system may elect to claim
membership credit for such prior service provided that such member pay back for said prior
continuous service in the following manner: (1) If it has been determined that an error
occurred (which resulted in a delay in enrollment in the system) and such error was through
no fault of the member and there is no evidence that the member had been offered an
opportunity to payback at the time such error was discovered, then the payback shall be
computed at the rates prevailing at the time the error occurred, with regular interest thereon
to date; (2) if it has been determined that no error occurred (which resulted in a delay in
enrollment in the system) or that such error did occur and was the fault of the member or
there is evidence that such error was not the fault of the member but he/she had been
offered an opportunity to payback at the time such error was discovered and chose not to
elect to pay back at that time, then the payback shall be computed at current rates without
interest. Such payment is to be made either in a lump sum or prorated over a period not to
exceed five years from the date such member receives the board's verification of the amount.
If however, any member receives a disability retirement prior to the completion of a payback
elected under this paragraph, the member shall be credited with the time purchased but his
or her disability benefit shall be reduced by the actuarial equivalent of the unpaid portion of
the amount to be paid back.
(6) Creditable service years purchase.
a. Firefighter members.
1. A retiring firefighter member, including I.A.F.F. bargaining unit member, who does not
participate in the DROP and retires under service retirement, or rule of 64 or 68
retirement, may purchase from available leave balances, whole years of creditable
service up to a maximum of three years. The purchase of creditable service under this
subsection may not be utilized for eligibility for either service retirement, or rule of 64
or 68 retirement. 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 purchased shall be the prorata
actuarially determined present value based upon the member's average final compensation used to
determine the member's retirement benefit. This benefit shall be available using after tax value of the
member'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 member's leave balances. Effective June 12, 2007, firefighter members and I.A.F.F.
bargaining unit members, including those electing to participate in either the FORWARD DROP or
BACDROP, may elect to transfer funds from their accounts in the Miami Firefighters' Relief and Pension
Fund (175) to the trust to purchase the three years of creditable service referred to herein. Members may
purchase three whole creditable service years by a lump sum payment of cash to the trust or a tax qualified
transfer of funds from a member's 457 Deferred Compensation Plan at present value as actuarially
determined for each individual member. In no case shall a firefighter member, including I.A.F.F. bargaining
unit member, purchase more than three years of creditable service through any combination of the above
provisions. No benefit provided under this subsection shall be effective unless and until full payment in
accordance herewith is made.
2. Effective the full pay period following October 1, 2009, the following provisions shall
supersede the provisions of subsection a.1., and govern the purchase of creditable
service by firefighter members, including, but not limited to, I.A.F.F. bargaining unit
members:
A. A retiring firefighter member, including, I.A.F.F. bargaining unit member, who does
not participate in the DROP and retires under service retirement, or rule of 64 or
68 retirement, may purchase up to three whole years of creditable service utilizing
the member's available leave balances, a tax qualified transfer of funds to the
trust from the member's 457 Deferred Compensation Plan at present value as
actuarially determined for the individual retiring member, lump sum payment of
cash to the trust, or funds transferred to the trust from the member's account
with the Miami Firefighters' Relief and Pension Fund (175).
B. A retiring firefighter member, including I.A.F.F. bargaining unit member, who
participates in either the FORWARD DROP or BACDROP, may purchase up to three
whole years of creditable service utilizing a tax qualified transfer of funds to the
trust from the member's 457 Deferred Compensation Plan at present value as
actuarially determined for the individual retiring member, a lump sum payment of cash to the trust, or
funds transferred to the trust from the member's account with the Miami Firefighters' Relief and Pension
Fund (175).
C. The following provisions shall apply to all purchases of creditable service under
paragraphs a.2.A. and 2.B.:
i. The purchase of creditable service shall be allowed only immediately prior to
retirement.
ii. The purchase of creditable service may not be utilized for eligibility for either
service retirement, or rule of 64 or 68 retirement. Once the leave balances or
the funds from the member's account with the Miami Firefighters' Relief and
Pension Fund (175) or those from the member's 457 Deferred Compensation
Plan 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 purchased shall be the prorata actuarially determined
present value based upon the member's average final compensation used to
determine the member's retirement benefit. The use of leave balances shall
be available using after tax value of the member'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 member's leave balances. In no case shall a member purchase
more than three years of creditable service through any combination of the
above provisions. No benefit provided under this subsection shall be effective
unless and until full payment in accordance herewith is made.
b. Police officer members.
1. A police officer member, including F.O.P. bargaining unit member, who retires on or
after April 26, 2007, and does not participate in the DROP and retires under service
retirement or rule of 64 retirement, may purchase up to three whole years of
creditable service utilizing the member's available leave balances, a tax qualified
transfer of funds from the member's 457 Deferred Compensation Plan at present
value as actuarially determined for the individual retiring member, or a lump sum
cash payment. The purchase of creditable service under this subsection may not be
utilized for eligibility for either service retirement or rule of 64 retirement. Once the
leave balances and/or funds from the member's 457 Deferred Compensation Plan
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 purchased shall be the prorata actuarially determined present value based upon the
member's average final compensation used to determine the member's retirement benefit. This benefit
shall be available using after tax value of the member'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 member's leave balances. In no case
shall a member purchase more than three years of creditable service through any combination of the
above provisions. No benefit provided under this subsection shall be effective unless and until full payment
in accordance herewith is made. A police officer member, including F.O.P. bargaining unit member, shall
only be allowed to purchase creditable service under this sub -section immediately prior to the member's
retirement.
2. A police officer member, including F.O.P. bargaining unit member, who retires on or
after April 26, 2007, and participates in the DROP may purchase up to three whole
years of creditable service utilizing a tax qualified transfer of funds from a member's
457 Deferred Compensation Plan at present value as actuarially determined for the
individual retiring member, or a lump sum cash payment. The purchase of creditable
service under this subsection may not be utilized for eligibility for either service
retirement or rule of 64 retirement. Once the funds from the member's 457 Deferred
Compensation Plan 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. The cost of creditable service purchased shall be the prorata
actuarially determined present value based upon the member's average final
compensation used to determine the member's retirement benefit. In no case shall a
member purchase more than three years of creditable service through any
combination of the above provisions. No benefit provided under this subsection shall
be effective unless and until full payment in accordance herewith is made. A police
officer member, including F.O.P. bargaining unit member, shall only be allowed to
purchase creditable service under this subsection immediately prior to the member's
retirement, including entry into the DROP.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10910, § 1, 9-5-91; Ord. No. 11235, § 1, 3-27-95; Code 1980, § 40-211;
Ord. No. 11300, § 1, 9-14-95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 11944, § 2, 7-27-00; Ord. No. 12203, § 2,
3-27-02; Ord. No. 12718, § 2, 7-28-05; Ord. No. 12941, § 2, 9-11-07; Ord. No. 13091, § 1, 9-24-09; Ord. No.
13676, § 2, 4-27-17)
Sec. 40-203. - Benefits.
(a) Service retirement.
(1) Any member in service who has ten or more years of creditable service may elect to retire
upon the attainment of normal retirement age. Such election shall be made upon written
application to the board, setting forth not less than ten nor more than 90 days subsequent to
the execution and filing thereof, the date the member desires to be retired.
(2) For police officer members, normal retirement age for members employed on September 26,
2010 who as of that date had attained ten or more years of creditable service shall be rule of
64 retirement or age 50 with ten years of creditable service including members who retired or
entered DROP on or after September 26, 2010. For firefighter members, normal retirement
age for members employed on September 26, 2010 who as of that date had attained ten or
more years of creditable service shall be rule of 68 retirement or age 50 with ten years of
creditable service including members who retired or entered DROP on or after September 26,
2010. Members may continue in service after attaining normal retirement age and participate
in all aspects of the retirement system.
(3) A member exercising service retirement 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 the
member's average final compensation multiplied by years of creditable service, which amount
shall be paid yearly in monthly installments. A member exercising service retirement 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 compensation multiplied by 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.
A police officer member exercising service retirement on or after May 28, 1995, shall be
entitled to receive a retirement allowance equal to 2.75 percent of the member's average final
compensation multiplied by 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 the excess of 15 years, which amount shall be paid yearly in monthly installments.
A firefighter member exercising service retirement on or after May 28, 1995, shall be entitled
to receive a retirement allowance equal to three percent of the member's average final
compensation multiplied by years of creditable service, which amount shall be paid yearly in
monthly installments.
(4)
Effective October 1, 1998, a member exercising service retirement on or after October 1, 1998 shall be
entitled to receive a retirement allowance equal to three percent of the member's average final
compensation multiplied by 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 and one-half percent of
member's final average compensation multiplied by the years of creditable service in excess of 15 years,
which amount shall be paid yearly in monthly installments.
(5) A member eligible for service retirement may choose any one of the optional allowances
available to him or her on the date of retirement, as provided in subsection (m).
(b) Rule of 64 or rule of 68 retirement.
(1) Any member in service who did not withdraw from active membership in the retirement
system and retiring effective May 28, 1995, may elect service retirement on the basis of his or
her combined age and creditable service equaling 64 for police officer members and 68 for
fire fighter members, or more provided that the member has reached minimum vesting
requirements. Such election shall be made upon written application to the board no less than
ten days nor more than 90 days subsequent to the execution and filing thereof, the date the
member desires to be retired.
(2) Upon rule of 64 retirement, on or after May 28, 1995, a police officer member shall be entitled
to receive a retirement allowance equal to 2.75 percent of the member's 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 the member's final average compensation multiplied by the years of
creditable service in excess of 15 years.
Upon rule of 64 retirement, a firefighter member retiring on May 28, 1995, shall be entitled to
receive a retirement allowance equal to three 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 eligible for rule of 64 or rule of 68 retirement may choose one of the optional
allowances available to him or her on the date of retirement, as provided in subsection (m).
(3) Upon rule of 64 retirement for police officer members on or after October 1, 1998, or upon
the Rule of 68 retirement for fire fighter members on or after October 1, 2009, a member
shall be entitled to receive a retirement allowance equal to three percent of the member's
average final compensation multiplied by 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 and one-half percent of member's final average compensation multiplied by
the years of creditable service in excess of 15 years, which amount shall be paid yearly in
monthly installments. A member eligible for rule of 64 or rule of 68 retirement may choose one of the
optional allowances available to him or her on the date of retirement, as provided in subsection (m).
(c) Limitation on benefits.
(1) Effective October 1, 1998, member retirement allowances shall not exceed 100 percent of the
member's final average compensation for members retiring under service retirement or rule
of 64 retirement, and effective October 1, 2009 for rule of 68 retirement with the following
exceptions:
a. Members whose retirement allowances, prior to October 1, 1998, who had already earned
100 percent or greater of the member's average final compensation shall continue to
accrue pension benefits as outlined under section 40-203.
b. Members whose retirement allowance exceeds 100 percent of their average final
compensation as of October 1, 1998, due to the multiplier change, shall be capped at the
new percentage.
(2) Effective June 12, 2007, firefighter member, including, but not limited to, I.A.F.F. bargaining
unit member, retirement allowances shall not exceed 100 percent of the member's final
average compensation for firefighter members and I.A.F.F. bargaining unit members retiring
under service retirement, rule of 64 retirement or rule of 68 retirement.
(3) Members who as of September 26, 2010 had not attained ten or more years of creditable
service and members hired on or after October 1, 2010 shall have a maximum retirement
benefit which shall not exceed the lesser of $120,000.00 or 100 percent of final average
compensation. Members who retired prior to September 26, 2010 shall have no limitation on
benefits accrued.
(d) Early service retirement.
(1) Any member in service who has 20 or more years of creditable service may elect to retire on a
retirement allowance which shall be the actuarial equivalent of the service retirement
allowance otherwise available to the member upon the attainment of normal retirement age.
Such election shall be made upon written application to the board, setting forth not less than
ten nor more than 90 days subsequent to the execution and filing thereof, the date the
member desires to be retired.
(2) A member eligible for early service retirement may choose any one of the optional allowances
available to him or her on the date of retirement, as provided in subsection (m).
(3) A member who has elected to retire on an early service retirement shall not be eligible to
participate in the DROP.
(e) Vested right to retirement.
(1)
If a member who is not entitled to retire ceases to be a city employee for any reason other than death or
willful misconduct in office, he or she may elect to continue as a member not in service and retire upon
subsequent attainment of normal retirement age, provided:
a. That when the member ceases to be a city employee, the member has completed at least
ten years of creditable service; and further provided
b. That the member does not withdraw his or her accumulated contributions.
(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 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 compensation 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.
A member electing to become a member not in service on or after October 1, 1998, shall be
entitled to receive a retirement allowance equal to three percent of the member's average
final compensation multiplied by 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 and one-half 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.
(3) If a member who elects to become a member not in service subsequently elects to withdraw
his or her accumulated contributions, the member not in service shall be paid the amount of
his or her accumulated contributions at the time he or she ceased to be a city employee,
excluding all amounts picked up from the member's earnable compensation and credited to
the COLA fund, plus only such regular interest as has been accumulated during the first three
years thereafter.
(4) If a member not in service dies prior to retirement, his or her beneficiary shall be paid the
amount of his or her accumulated contributions at the time he or she ceased to be a city
employee, excluding all amounts picked up from the member's earnable compensation and
credited to the COLA fund, plus regular interest thereon to the date of the member's death.
(5) If a person elects a vested right to retirement under any retirement system or plan sponsored
by the city and thereafter becomes an employee, he or she shall become a new member of
the retirement system on the date employment recommences and shall make regular
contributions to the retirement system at the rate required by subsection 40-196(a). Such member shall be
entitled to receive a retirement benefit therefor as if he or she were a new entrant upon the date of
subsequent employment and, in addition, shall be entitled to receive a retirement benefit for his or her
employment in accordance with subsection (d)(2).
(6) A member not in service shall not be eligible to participate in the DROP.
(f) Ordinary disability retirement.
(1) Any member in service who has ten or more years of creditable service but who is not eligible
for a service retirement allowance may, upon written application, be retired by the board on
an ordinary disability retirement allowance; provided, that after medical examination of such
applicant, the physician retained by the board shall certify that the member is mentally or
physically totally incapacitated for the further performance of duty (not as a result of an
accident in the actual performance of duty as defined in subsection (i) of this section), that
such incapacity is likely to be permanent, and that such member should be retired.
(2) a. Upon retirement for ordinary disability on or after October 4, 1991 and before January 9,
1994, a member shall be entitled to receive a retirement allowance equal to 2.75 percent
of 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 30 percent of the member's average final
compensation; otherwise, 30 percent of the member's average final compensation shall be
paid yearly in monthly installments.
b. Upon retirement for ordinary disability on or after January 9, 1994, a member shall be
entitled to receive a retirement allowance equal to 2.75 percent of 90 percent of the
member's average final compensation multiplied by the first 15 years of creditable
service. Creditable service of such member in excess of 15 years shall be multiplied by
three percent of 90 percent of the member's average final compensation times years of
creditable service, which amount shall be paid yearly in monthly installments, provided
such retirement allowance is at least 30 percent of the member's average final
compensation, otherwise 30 percent of the member's average final compensation shall be
paid yearly in monthly installments.
c. Upon retirement for ordinary disability on or after October 1, 1998, a member shall be
entitled to receive a retirement allowance equal to three percent of 90 percent of the
member's average final compensation multiplied by the first 15 years of creditable
service. Creditable service of such member in excess of 15 years shall be multiplied by
three and one-half percent of 90 percent of the member's average final compensation
times years of creditable service which amount shall be paid yearly in monthly
installments, provided such retirement allowance is at least 30 percent of the member's average final
compensation, otherwise 30 percent of the member's average final compensation shall be paid yearly in
monthly installments.
d. For those members who retire effective on or after December 31, 1999, the retirement
allowance shall be payable for life, except that in the event the member dies before such
allowance has been received for a period of ten years, the member's beneficiary or
beneficiaries shall be paid the same allowance for the remainder of the ten-year period.
(3) A member entitled to receive an ordinary disability retirement allowance shall not be eligible
for a return of contributions as provided in subsection 40-212(j) for optional allowances as
provided in subsection 40-212(m), nor for participation in the DROP.
(4) A DROP participant shall not be entitled to receive an ordinary disability retirement.
(g) Accidental or service -incurred disability retirement.
(1) Any member in service who, prior to attaining the age of 60, has been totally and
permanently incapacitated for duty as the natural and proximate result of an accident
occurring while in the actual performance of duty at some definite time and place, shall be
retired for accidentally incurred disability; provided that:
a. Such incapacity for duty has been total, permanent and continuous from a time prior to
the member attaining the age of 60;
b. The physician retained by the board, after a medical examination of such member, shall
certify in writing that the member is mentally or physically totally incapacitated in
accordance with the definition of permanent total disability;
c. The board shall concur with the report of the physician employed by the board; and
d. The physical condition of the member shall be subject to a review by the physician
retained by the board, at the request of the board, as often as the board shall deem it
advisable.
(2) A member may be considered totally and permanently disabled for further performance of
duty for the purpose of this section when said member is unable, due to an accident, illness
or injury incurred in the line of duty, to perform within the member's classification.
(3) a. Any condition or impairment of health caused by tuberculosis, heart disease or
hypertension, on the part of a member, which condition results in total and permanent
incapacitation for duty, shall be presumed to have been accidental and suffered in the line
of duty unless the contrary be shown by competent evidence; provided, however, that any
such member shall have successfully passed a physical examination upon entering into
service as a firefighter or police officer, which examination failed to reveal any evidence of
any such condition.
b.
Nothing herein shall be construed to extend or otherwise affect the provisions of F.S. ch. 440 pertaining to
workers' compensation.
(4) When deciding whether to grant an accidental or service -incurred disability retirement, the
board shall obtain any and all available information, including, but not limited to, medical
reports which the board deems necessary in order to assist the board in arriving at its
decision.
(5) a. Upon retirement for accidental disability or service -incurred disability, a member shall
receive a pension which shall be equal to 66% percent of his/her average final
compensation or 66% percent of his/her final compensation, whichever is greater.
b. For those members who retire effective on or after December 31, 1999, upon retirement
for accidental disability or service -incurred disability, a member shall receive a retirement
allowance payable for life which shall be equal to 66% percent of the member's average
final compensation or 66% percent of the member's final compensation, whichever is
greater, except that in the event a member dies before such allowance has been received
for a period of ten years, the member's beneficiary or beneficiaries shall be paid the same
allowance for the remainder of the ten-year period.
(6) A member entitled to receive an accidental or service -incurred disability retirement allowance
shall not be eligible for a return of contributions as provided in subsection (j), for optional
allowances as provided in subsection (m), nor for participation in the DROP.
(7) In lieu of the benefits set forth in subsection (5) above, upon the death of any member who
has received an accidental or service -incurred disability retirement, the spouse of said
member who has been nominated and designated by the member as said member's
beneficiary if eligible shall receive the payment of an amount equal to 40 percent of the
member's monthly retirement allowance during the lifetime of said spouse, in accordance
with subsection (n) of this section.
(8) A DROP participant shall not be entitled to receive an accidental or service -incurred disability
retirement.
(h) Ordinary death benefit.
(1) Upon receipt by the board of proper proofs of the death of a member in service who has
three or more years of creditable service, which death is not the result of an accident in the
actual performance of duty as defined in subsection (i) of this section, there shall be paid to
such person, if any, as the member shall have nominated by written designation duly
executed and filed with the board, otherwise to the member's legal representative, a benefit
equal to a lump -sum payment of 50 percent of the earnable compensation received by the
member during the year immediately preceding the member's death.
(2)
For those members who retire effective on or after December 31, 1999, the member's beneficiary or
beneficiaries shall be entitled to the benefits otherwise payable to the member at early or normal
retirement age for a period of ten years, should a member having at least ten years of creditable service die
prior to retirement. Anything herein to the contrary, notwithstanding this provision, shall not be
implemented as to police officer members unless and until there are "additional premium tax revenues" as
defined in F.S. § 185.35(1)(b), to the extent necessary to fund such benefit.
(3) a. 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 64 retirement but has not retired
dies, the member shall be considered to have been retired on the date of death. In such
event the payment of 40 percent of the member's monthly retirement allowance shall be
paid at the member's death to the member's spouse during the lifetime of such spouse or,
at the option of such spouse, the spouse shall receive the sum of the deceased member's
accumulated contributions to the date of death plus a benefit equal to a lump -sum
payment of 50 percent of the earnable compensation received by the member during the
year immediately preceding the member's death.
b. In lieu of the benefits set forth in subsection (2), for those members who retire effective
on or after December 31, 1999, in the event a member who has become eligible for
service, or early service retirement but has no retired dies, the member shall be
considered to have been retired on the date of death. In such event the payment of 40
percent of the member's monthly retirement allowance shall be paid at the member's
death to the member's spouse during the lifetime of such spouse or, at the option of such
spouse the spouse shall receive the sum of deceased member's accumulated
contributions to the date of death plus a benefit equal to a lump -sum payment of 50
percent of the earned compensation received by the member during the year
immediately preceding the member's death.
(4) If a retired member dies prior to having received 12 monthly retirement allowance payments
and prior to any optional allowance elected by the member having become effective, there
shall be paid to such person, if any, as the member shall have nominated by written
designation duly executed and filed with the board, otherwise, to the member's legal
representative, a lump -sum benefit equal to the sum of the 12 monthly retirement allowance
payments to which the member would otherwise have become entitled, less the payments
the member received.
(5) Notwithstanding the foregoing, any pre -retirement death benefit payable under this section
shall be "incidental" in compliance with Treasury Regulations Section 1.4011 (b)(1).
(6) In the case of a death occurring on or after January 1, 2007, if a member dies while
performing qualified military service (as defined in Code Section 414 (u)), the survivors of the
member are entitled to any additional benefits (other than benefit accruals relating to the
period of qualified military service) provided under the plan as if the member had resumed and then
terminated employment on account of death.
(i) Accidental death benefit.
(1) If the board shall decide that the death of a member in service was the result of an accident
in the performance of duty and not caused by willful negligence on the part of the member,
then there shall be paid an amount equal to one-half of the member's average final
compensation, which amount shall be paid yearly in monthly installments, to the member's
spouse, if he or she leaves a spouse, to continue until the death or remarriage of such
spouse; or if there be no spouse, or if the spouse dies or remarries before the youngest child
of such deceased member shall have attained the age of 18, then to his or her children under
such age, if he or she leaves children, divided in such manner as the board in its discretion
shall determine, to continue as a joint and survivorship pension for the benefit of the children
under such age until every child dies or attains such age; or if there be no spouse or children
under the age of 18 years living at the death of such member, then to his or her dependent
father or dependent mother, as the board in its discretion shall direct, to continue for life;
provided that if there be no such beneficiary, the amount which otherwise would have been
paid as an ordinary death benefit shall be paid to the member's legal representative.
Provided, however, in the event a member who retires effective on or after December 31,
1999, has at least ten years of creditable service dies prior to retirement, the member's
beneficiary or beneficiaries shall be entitled to the benefits otherwise payable to the member
at early or normal retirement age for a period of ten years. Anything herein to the contrary
notwithstanding, this provision shall not be implemented as to police officer members unless
and until there are "additional premium tax revenues" as defined in F.S. § 185.35(1)(b), to the
extent necessary to fund such benefit.
(2) The board shall decide whether the death of a member in service was the result of an
accident in the performance of duty and not caused by willful negligence on the part of the
member in the following circumstances:
a. Upon receipt of proper proofs of the death of a member in service indicating that such
death was the natural and proximate result of an accident occurring at some definite time
and place while the member was in the actual performance of duty; or
b. Upon receipt of proper proofs of death of a member in service indicating that such death
resulted from a condition or impairment of health caused by tuberculosis, hypertension
or heart disease, which condition or impairment of health shall be presumed by the board
to have been accidentally incurred in the line of duty unless the contrary be shown by
competent evidence; provided, that the deceased member shall have successfully passed a physical
examination upon entering into service as a firefighter or police officer, which examination failed to reveal
any evidence of such condition.
(3) Notwithstanding any other provision of this chapter to the contrary, the surviving spouse of
any member killed in the line of duty shall not lose survivor retirement benefits if the spouse
remarries. The surviving spouse of such deceased member whose benefit terminated
because of remarriage shall have the benefit reinstated as of July 1, 1994, at an amount that
would have been payable had such benefit not been terminated.
(4) In the case of a DROP participant, there shall be no accidental death benefit.
(5) Notwithstanding the foregoing, any pre -retirement death benefit payable under this section
shall be "incidental" in compliance with Treasury Regulations Section 1.401-1(b)(1).
(j) Return of contributions. Should a member cease to be a city employee, the member shall be paid
on demand the sum of his or her accumulated contributions, with the following exceptions:
(1) Any member who has been granted a retirement benefit shall not be entitled to a return of
any accumulated contributions unless the member is eligible for the benefits of option 6.a as
set forth in subsection (m) or unless the member is entitled to a return of excess
contributions as a result of membership in the city employees' retirement system as set forth
in subsection 40-205(2).
(2) In the event of the death of any member, there shall be no distribution of the member's
accumulated contributions unless the member died in service. In such event, accumulated
contributions shall be payable to such persons, if any, as the member shall have nominated
by written designation duly executed and filed with the board, otherwise to the member's
legal representative. The return of accumulated contributions pursuant to the provisions of
this paragraph shall not be construed as foreclosing the right of any person to an ordinary
death benefit or an accidental death benefit as hereinabove set forth.
(3) a. This article applies to distributions made on or after January 1, 1993. Notwithstanding any
provision of the plan to the contrary that would otherwise limit a distributee's election
under this article, a distributee may elect, at the time and in the manner prescribed by the
plan administrator, to have any portion of an eligible rollover distribution paid directly to
an eligible retirement plan specified by the distributee in a direct rollover.
b. Definitions.
1. Directroiiovershall mean a payment by the plan to the eligible retirement plan
specified by the distributee.
2. Distributee shall mean an employee or former employee. In addition, the employee's
or former employee's surviving spouse is a distributee with regard to the interest of
the spouse.
3. Eligible retirement plan shall mean an individual retirement account described in
section 408(a) of the Internal Revenue Code, an individual retirement annuity
described in section 408(b) of the Code, an annuity plan described in section 403(a) of
the Internal Revenue Code, or a qualified trust described in section 401(a) of the
Internal Revenue Code, that accepts the distributee's eligible rollover distribution.
However, in the case of an eligible rollover distribution to the surviving spouse, an
eligible retirement plan is an individual retirement account or individual retirement
annuity.
4. Eligible rollover distribution shall mean any distribution of all or any portion of the
balance to the credit of the distributee, except that an eligible rollover distribution
does not include: any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life expectancy) of
the distributee or the joint lives (or joint life expectancies) of the distributee and the
distributee's designated beneficiary, or for a specified period of ten years or more;
any distribution to the extent such distribution is required under section 401(a)(9) of
the Internal Revenue Code; and the portion of any distribution that is not included in
gross income.
(k) Limitation of disability benefits; reexamination of beneficiaries retired on account of disability.
(1) Any member who is unable to perform within the member's classification may be assigned to
any other job classification; provided, that the member consents to such assignment and
further provided, that the member's salary in the new job class shall be no less than 100
percent of the job class from which the member was transferred.
(2) If a former member who has received an accidental disability retirement is performing the
duties of a police officer or firefighter, or is performing services which are substantially
equivalent to duties that can be assigned within the employment classification from which the
member was retired, the board shall have the authority to limit the retirement benefits of
such member as hereinafter provided: If a former member who has received an accidental
disability retirement is engaged in such gainful occupation, the former member's salary from
said occupation when added to the sum which he or she is receiving on account of accidental
disability retirement shall not exceed 100 percent of the current salary for the classification
from which the member was retired. If the retirement benefit plus the salary exceeds 100
percent of the current classification salary, the retirement benefit shall be reduced by the
amount in excess of 100 percent. The board may periodically require of former members
receiving a disability pension, on a form approved by the board for such purpose, a statement
of salary and type of employment.
(3)
Any former member who is receiving a disability retirement allowance shall be subject, prior to normal
retirement age, to examination by a physician or physicians upon request by the board. Such examination
may be conducted at the member's place of residence or at a place mutually agreed upon by the member
and the board. Following such examination, the physician or physicians shall report to the board as to the
continuance of the former member's total and permanent incapacity for duty.
a. In the event the board finds that a disability beneficiary is no longer incapacitated for
service within his or her former classification in accordance with requirements of the civil
service rules and regulations, the board may require that the beneficiary be returned to
the former classification with all rights and benefits of such classification or, with the
beneficiary's consent, to other classifications within the limits of his or her mental or
physical capacities at a rate of compensation not less than 100 percent of the pay which
he or she would be entitled to receive at the time of return to service for the classification
occupied by the beneficiary prior to his or her incapacity.
b. Should any disability beneficiary refuse to submit to a medical examination upon request
by the board, his or her retirement allowance may be discontinued until withdrawal of the
refusal, and should the refusal continue for one year, all right in and to a retirement
benefit may be revoked by the board. If any beneficiary in receipt of a disability
retirement allowance is found by the board, prior to normal retirement age, to be no
longer incapacitated but is not restored to service as a member in the classification from
which he or she was retired because of his or her own refusal to accept employment
offered to him or her, the beneficiary's disability retirement allowance shall be
terminated.
(I) Restoration of beneficiaries to membership.
(1) Should a disability beneficiary be restored to or be in service at a compensation equal to or
greater than his or her average final compensation at retirement, or should any other
beneficiary be restored to service, the following shall apply:
a. The retirement allowance of the beneficiary shall cease, he or she shall again become a
member of the retirement system and regular contributions shall resume at the rate
required by the retirement system; and
b. The beneficiary shall be credited with all service as a member standing to his or her credit
at the time of retirement, providing he or she returns, in such manner as shall be
prescribed by the board, the amount of any accumulated contributions of money received
upon retirement.
(2) If a beneficiary is restored to membership on or after the attainment of age 50, he or she
shall, on subsequent retirement, be credited with all service as a member subsequent to his
or her last restoration to membership and shall receive a retirement allowance therefor as if
he or she were a new entrant, and, in addition, the former beneficiary shall receive the retirement
allowance which he or she was receiving immediately prior to his or her last restoration, but the total
pension shall not exceed the proportion of average final compensation he or she would have received as a
retirement allowance had he or she remained during the period of prior retirement.
(3) Participation in the DROP shall not be considered restoration to service under subsection (I).
(m) Optional allowances.
(1) 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 allowance in a
reduced retirement allowance payable as follows; provided, that no election of an optional
allowance shall be effective in case a beneficiary dies within ten 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 1: If the member dies before receiving in payment of the member's retirement
allowance, the value of his or her accumulated contributions at the time of retirement, the
balance shall be paid to such person, if any, as the member shall have nominated by written
designation duly executed and filed with the board, otherwise to the member's legal
representative; or
Option 2: Upon the member's death, his or her reduced retirement allowance shall be
continued through the life of, and paid to, such person as the member shall have nominated
by written designation duly executed and filed with the board at the time of retirement; or
Option 3: Upon the member's death, one-half of his or her reduced retirement allowance
shall be continued throughout the life of, and paid to such person as the member shall have
nominated by written designation duly executed and filed with the board at the time of
retirement; or
Option 4: Upon the member's death, some other benefit shall be payable; provided, that the
total value of the allowance during the member's life and the succeeding benefit shall be
computed to be of equivalent actuarial value to the allowance which he or she would receive
without optional modification; and provided, that the benefit shall be approved by the board;
or
Option 5: If, as a result of an accidental injury incurred in the line of duty, the member shall
have been so seriously injured that he or she is unable to execute and file a designation of an
optional allowance, the board may, with the consent of the principal beneficiary, designate an
option, and if such condition shall have delayed the application for retirement and the
selection of an option, the board may waive the requirement as to the member's life for ten
days after retirement date, and may declare such optional allowance irrevocably effective
immediately upon the member's retirement; or
Option 6: Any member upon service, early service, rule of 64 or rule of 68 retirement may
elect to receive benefits in one of the following three forms, in lieu of the retirement
allowance otherwise payable to the member:
a. Such member may elect to withdraw the sum of his or her accumulated contributions
credited as of the member's date of retirement, excluding all amounts picked up from
the member's earnable compensation and credited to the COLA fund, and be paid a
monthly service retirement allowance of one-half the amount to which he or she
would otherwise be entitled;
b. Such member may elect to receive his or her normal monthly service retirement
allowance plus an additional five percent of such service retirement allowance; or
c. Such member may direct the payment of a benefit of 40 percent of the member's monthly
retirement allowance to be paid at the member's death to his or her spouse nominated
and designated by him or her at the time of retirement, such benefit to be payable during
the lifetime of such spouse; or
d. For those members who retire effective on or after December 31, 1999, such member(s)
may elect to receive his or her normal monthly service retirement allowance payable for
life; except that in the event the member dies before he or she has received such
allowance for a period of ten years, the member's beneficiary or beneficiaries shall be
paid the same allowance for the remainder of the ten-year period.
(2) In the event a member elects a retirement allowance under option 2, 3, or 4 and has
nominated and designated his or her spouse at the time of retirement as the person to
receive payment of the benefit upon the member's death, the total minimum value of the
allowance during the member's life and the succeeding benefit shall be computed to be of
equivalent actuarial value to the allowance which he or she would have received had the
member chosen to have his or her retirement allowance paid under the provisions of option
6c.
(3) In no event shall any language contained herein be construed as authorizing or allowing any
member the right or privilege to exercise more than one of options 1 through 6 enumerated
at this subsection.
(n) Changes in beneficiary after retirement. Any member of the retirement system who retires from
service and thereafter desires to change a designated beneficiary may do so to the extent the to -
be -substituted beneficiary is younger (older) than the to -be -deleted beneficiary, an actuarial
adjustment shall be applied to reflect the expected longer (shorter) life expectancy of the to -be -substituted
beneficiary.
(o) Pension offset by other compensation benefit. Any periodic or lump -sum amounts which may be
paid or payable under the provisions of any state worker's compensation or similar law to a
member or to the dependents of a member on account of any disability or death, shall be offset
against and payable in lieu of any benefits payable from funds provided by the city under the
provisions of the retirement system on account of the same disability or death.
(p) Deferred retirement option program. Effective October 1, 1995, there is hereby created the City
Deferred Retirement Option Program (DROP) to be administered by the board of trustees. Only
firefighters who have retired after reaching age 50 within ten years of creditable service or who
have retired after reaching a combination of age plus years of creditable service equal to either
64 or 68 as applicable, and who elect to defer receipt of their retirement benefit into a DROP
account shall be eligible to participate in the DROP. Effective upon the ratification of the
Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective
bargaining agreement with the IAFF, the maximum participation in the Forward DROP for
firefighters shall be 54 full months. Effective upon the ratification of the Memorandum of
Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective bargaining
agreement with the FOP, the maximum participation in the Forward DROP for police officers who
elect Forward DROP or are currently in Forward DROP shall be 84 full months. No payment shall
be made to or for the benefit of a DROP participant beyond these periods.
(1) Election to participate in the DROP shall be made by using forms and procedures prescribed
by the board.
(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 subsection (m) herein. Average final compensation shall be based on the single highest
year preceding participation in the DROP.
(3) Upon commencement of participation in the DROP, the participant's contribution and the
city's contribution to the retirement trust for that participant shall cease as the participant will
not earn further creditable service for pension purposes.
(4) For each person electing participation in the DROP, and individual DROP account shall be
created. Payment shall be made by the retirement trust into the employee's DROP account in
an amount equal to the regular monthly retirement benefit which the participant would have
received had the participant separated from service and commenced receipt of pension
benefits.
(5)
The board of trustees shall establish, by administrative rule, a series of investment vehicles which may be
chosen by DROP participants. Any losses, charges, or expenses incurred by the participant in the
participant's DROP account by virtue of the option selected by the participant or otherwise, shall not be
made up by the City of Miami or the pension trust, but all of same shall be borne by the participant.
(6) Upon termination of employment, a member may receive distribution from the DROP
account in the following manner:
a. Lump sum distribution (which may be used at the DROP participant's discretion to
purchase an annuity).
b. Periodic payments.
c. Roll over of the balance to another qualified retirement plan, such as an IRA.
A member may defer distribution until the latest date authorized by section 401(a)(9) of the
Internal Revenue Code.
(7) DROP participation shall not affect any other death or disability benefit provided to a
firefighter under federal law, state law, city ordinance, or any rights or benefits under any
applicable collective bargaining agreement.
(8) If a DROP participant dies before the DROP account balances are paid out in full, the
person(s) duly so designated by such DROP participant shall receive such DROP account
balances in accordance with the DROP participant election in effect at the time of death.
(q) Modified deferred retirement option program. Effective upon approval by the city commission of
the F.O.P. and I.A.F.F. labor agreements for October 1, 1998, through September 30, 2001, the
DROP of the retirement system shall consist of a Forward DROP and a BACDROP. Any member
who has reached age 50 with ten years of creditable service, or who has attained a combination
of age plus years of creditable service equal to either 64 or 68 as applicable, shall be eligible to
participate in the DROP.
(1) Election to participate. Upon election of participation in the DROP, by using forms and
procedures as prescribed by the board of trustees, a member's creditable service, accrued
benefits, and compensation calculation shall be frozen and shall be based on the single
highest year preceding participation in the DROP, as the basis of calculating the DROP
payment. Upon commencement of participation in the DROP, the participant's contribution
and the city contribution to the retirement system for that participant shall cease as the
participant will be earning no further service credit. The participant shall not acquire
additional pension credit for the purposes of the pension plan but may continue city
employment for up to a maximum as established in this article. Effective upon the ratification
of the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010
collective bargaining agreement with the IAFF, the maximum participation in the Forward
DROP for firefighters shall be 54 full months. Effective upon the ratification of the
Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective bargaining
agreement with the FOP, the maximum participation in the Forward DROP for police officers who elect
Forward DROP or are currently in Forward DROP shall be 84 full months.
(2) Maximum participation. Effective upon the ratification of the Memorandum of Understanding
of July 11, 2008 amending Article 43 of the 2007-2010 collective bargaining agreement with
the IAFF, the maximum participation in the Forward DROP for firefighters shall be 54 full
months. Effective upon the ratification of the Memorandum of Understanding of May 8, 2008
amending Article 39 of the 2007-2010 collective bargaining agreement with the FOP, the
maximum participation in the Forward DROP for police officers who elect Forward DROP or
are currently in Forward DROP shall be 84 full months. Once the maximum participation has
been achieved, the participant must terminate employment.
(3) Creation ofindividualaccount. For each person electing participation in the DROP, an
individual account shall be created.
(4) Earnings on DROP account. The board of trustees of the retirement system shall establish, by
administrative rule, a series of investment vehicles which may be chosen by participants in
the DROP. Any losses incurred on account of the option selected by the participant shall not
be made up by the city or the FIPO trust fund, but any such loss shall be borne by the
participant only. Upon participation in the DROP, the participant shall make a selection of the
earnings program on forms provided by the board. All interest shall be credited to the
participant's DROP account.
(5) Distribution of DROP benefits. Upon conclusion of a period of participation in the DROP not to
exceed the maximum set forth in subsection (2), the participant shall terminate employment.
Upon termination of employment, a participant may receive payment from the DROP account
in the following manner:
a. Lump sum distribution;
b. Periodic payments;
c. Rollover of the balance to another qualified retirement plan.
A participant may defer payment until the latest date authorized by Section 401(a)(9) of the
Internal Revenue Code.
(6) Disability. A DROP participant shall not be entitled to receive an ordinary or service incurred
disability retirement.
(7) Death. In the case of the death of a DROP participant, there shall be no accidental death
benefit for pension purposes.
(8)
Participation does not affect other disability benefit. DROP participation shall not affect any other death or
disability benefit provided to a member under federal law, state law, city ordinance, or any rights or
benefits under any applicable collective bargaining agreement.
(9) Death of participant before account balances paid out in full. If a DROP participant dies
before the DROP account balances are paid out in full, the person(s) duly so designated by
such DROP participant shall receive such DROP account balances in accordance with the
DROP participant election in effect at the time of death.
(10) COLA participation. Eligibility for payments for cost of living adjustment (COLA) shall not
commence until a member has actually separated from employment with the city. COLA
service years shall be based upon creditable years of service in calculating the employee's
pension. For the purpose of complying with Section H(3)(m) of the Amended Final Judgment in
Gates, the employee's "date of retirement" shall be the date of actual termination of
employment as an employee with the city and not the date of election to DROP.
(11) Agreement binding. Any employee who enters into a DROP agreement shall be bound by the
terms and conditions of that said agreement, except that firefighters who are members of the
48-month DROP as of the date of the ratification of the Memorandum of Understanding of
July 11, 2008 amending Article 43 of the 2007-2010 IAFF collective bargaining agreement may
extend their existing DROP agreements to a maximum of 54 months. Any member who
enters into a DROP agreement shall be bound by the terms and conditions of said agreement,
except that who are members of the 48-month DROP as of the date of the ratification of the
Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-2010
collective bargaining agreement with the FOP, may extend their existing DROP agreements to
a maximum of 84 months. Any member who elects to be a DROP participant in the future
shall be bound by the specific terms of the participant's DROP agreement entered into at that
time.
(12) Forward DROP. The date of entry into the Forward DROP shall be the beginning of a pay
period. Payment shall be made by the retirement system into the participant's DROP account
in an amount equal to the regular monthly retirement benefit which the participant would
have received had the participant separated from service and commenced the receipt of
benefits from the system. The amount of the monthly benefit shall be determined based on
the creditable service, average final compensation, and retirement option selected in
accordance with subsection 40-203(m). Upon conclusion of a period of participation in the
DROP not to exceed the maximum set forth in subsection (2), the participant shall terminate
employment with the city.
Election of a forward DROP program precludes participation in a BACKDROP program.
(13)
BACDROP. An I.A.F.F. bargaining unit member may elect to BACDROP to a date (retirement date) no further
back than the date of the member's retirement eligibility date. The BACDROP period must be in 12-month
increments, beginning at the start of a pay period, not to exceed 36 months. Effective upon the ratification
of the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective
bargaining agreement with the IAFF the maximum participation in the Forward DROP for firefighters shall
be 54 full months. Effective upon the ratification of the Memorandum of Understanding of May 8, 2008
amending Article 39 of the 2007-2010 collective bargaining agreement with the FOP, the maximum
participation in the Forward DROP for police officers shall be 84 full months. Upon ratification of the 2004-
2005 F.O.P. labor agreement, an F.O.P. bargaining unit member may elect to BACDROP to a date
(retirement date) no further back than the date of the member's retirement eligibility date, provided that
the BACDROP period must be in 12-month increments, beginning at the start of a pay period, not to exceed
a total of 12 months. Participation in the BACDROP does not preclude participation in the forward DROP
program.
(14) BACKDROP option. A backdrop benefit option was implemented on January 1, 2013 to replace
the BACDROP.
a. An eligible employee who elects the backdrop option shall receive a monthly benefit
payable on the employee's actual retirement date (date of retirement and separation
from city employment) based on the benefit the employee would have received if he/she
had left city employment and retired on an earlier date after attaining normal retirement
eligibility ("backdrop date"). In addition, an eligible employee who elects the backdrop
option will receive a lump sum payment equal to the accumulation of monthly retirement
benefit payments he/she would have received during the period following the backdrop
date through the actual retirement date ("backdrop period"), plus interest at the rate of
three percent per year, compounded annually. An eligible employee may elect a minimum
backdrop period of one year and maximum backdrop period of up to seven years. An
eligible employee who elects the backdrop option must select the normal form of benefit
or an optional form of benefit in accordance with subsection 40-203(m) at the time of
electing the backdrop option. The employee's monthly benefit as well as the lump sum
payment under the backdrop option is based on the form of benefit selected.
b. Employees are eligible to elect the backdrop option after completing one year of
creditable service following the normal retirement date. The maximum backdrop period is
seven years. Eligible employees who wish to elect the backdrop option must provide
written notification to the department director and the department of human resources
at least eight months prior to the employee's retirement date; provided a lesser notice
period may be approved by the city manager due to special circumstances. Employees will
be able to revoke their backdrop election one time, but within one month of their
election. However, if an employee is granted a lesser notice period by the city manager due to special
circumstances, the employee will not be eligible for the one-time backdrop election revocation. Employees
are not required to elect the backdrop option.
c. All or a portion of the lump sum payment under the backdrop option may be rolled over
to an eligible retirement plan or IRA in accordance with federal law. The rollover of DROP
funds into the Miami Firefighters' Relief & Pension Fund (175) shall be allowed if rollovers
of this type are approved by the Miami Firefighters' Relief & Pension Fund (175) trustee
board.
d. If the backdrop option is ever terminated, for any reason, the rights of all persons then in
the DROP shall not be diminished or impaired. Additionally, if the backdrop is ever
terminated, all persons who are then eligible for the backdrop option will still be eligible
for a seven year backdrop. The board of trustees of shall develop operational rules for the
implementation of this provision.
(15) Compliance with Internal Revenue Code Sections 414(k) and 414(i). To the extent required
under the Internal Revenue Code, the DROP under the retirement system shall be treated as
a defined contribution plan to the extent that the member's benefits under the retirement
system are based on the member's DROP account. The amount of "annual additions" (as such
term is defined in Section 415(c)(2) of the Internal Revenue Code and Treasury Regulations
1.415(c)-1(b)) which may be allocated under the DROP to a member's DROP account for a
"limitation year" may not exceed the maximum permissible amount under Section 415(c)(1) of
the Internal Revenue Code and Treasury Regulations 1.415(c)-1(a)(1) (the "Annual Maximum
Amount"). For purposes hereof, the term "limitation year" means the 12-month period
beginning on October 1. In addition, for purposes of determining a member's annual
maximum amount, the member's compensation shall be determined in compliance with
Treasury Regulations 1.415(c)-2.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10910, § 1, 9-5-91; Ord. No. 11074, § 2, 7-22-93; Ord. No. 11110, § 3,
1-13-94; Ord. No. 11190, § 2, 10-27-94; Ord. No. 11235, § 1, 3-27-95; Code 1980, § 40-212; Ord. No. 11752, §
2, 1-26-99; Ord. No. 11944, § 2, 7-27-00; Ord. No. 12203, § 2, 3-27-02; Ord. No. 12718, § 2, 7-28-05; Ord. No.
12941, § 2, 9-11-07; Ord. No. 12993, § 2, 5-8-08; Ord. No. 13019, § 2, 7-24-08; Ord. No. 13091, § 1, 9-24-09;
Ord. No. 13202, § 2, 9-27-10; Ord. No. 13344, § 1, 9-27-12; Ord. No. 13551, § 2, 9-24-15; Ord. No. 13676, § 2,
4-27-17; Ord. No. 13874, § 2, 11-21-19; Ord. No. 14066, § 2, 5-12-22)
Case Law reference- Pension provision authorizing deduction of workers' compensation benefits from
pension benefits held constitutional. Hoffkins v. City of Miami, 339 So. 2d 1145.
Sec. 40-204. - Cost -of -living allowance.
(a) A COLA account shall be established for beneficiaries of the retirement system to be financed as
follows:
(1) The two -percent COLA contribution made by a member prior to January 9, 1994 shall be a
picked up contribution and shall be credited to the COLA account.
(2) Any contributions to the retirement system which are credited to the COLA account on behalf
of any member in accordance with section 40-196(a), and which are subsequently returned
pursuant to any provision of this division which provides for the return of accumulated
contributions, shall be paid from the COLA account.
(3) All other matters regarding the COLA account shall be determined by the COLA committee.
The COLA committee shall be composed of the following: a) a representative of IAFF, Local
587; b) a representative of FOP, Lodge No. 20; c) the city manager's designee; d) the city's
labor relations officer; and e) a representative of the board.
(b) Beginning with the 1994 COLA benefit, distributions shall be in addition to COLA benefits granted
through 1993. The COLA benefit granted through 1993 shall be frozen.
(c) COLA account established as of January 1, 1994:
(1) The COLA shall be funded by a percentage of annual excess investment return from other
than COLA account assets. The excess return will be determined as the difference between
the actual return on actuarial asset value, net of investment expenses, and the lesser of: (1) a
7.75 percent time -weighted rate of return on the actuarial value of assets; or (2) the current
actuarial interest assumption, applied on a time weighted basis to the actuarial value of
assets. The excess earnings going into the COLA account shall be used to fund a minimum
annual payment of $2,500,000.00, increasing by four percent compounded per year. To the
extent necessary, the city will fund the portion of the minimum annual payment not funded
by annual excess earnings no later than January 1 of each year.
(2) The first year's actual return shall be based on the time weighted rate of return on the
actuarial value of the assets from October 1, 1991, through September 30, 1992. Thereafter,
the actual rate of return will be based on the prior fiscal year to be used in the succeeding
fiscal year.
(3) The percentages of such excess return to be transferred to the COLA account shall be
determined as follows:
Excess Return Percentage to be Transferred
First 2.5% 75
Next 2.5% 50
Next 2.5%
Remainder
25
0
(4) The transfers shall be made by the board as soon as practicable after the beginning of each
fiscal year, but not later than January 1, and shall be transferred only if the retirement system
remained in a net positive experience position, determined on a cumulative basis from
October 1, 1982. The determination of the net experience position will be based on the
difference between the actual unfunded actuarial liability and the expected unfunded
actuarial liability, adjusted for any changes in benefits or assumptions, calculated under the
individual entry age normal cost method.
(5) All retirement system pension assets, including the COLA account, are integrated for
investment purposes, with separate accounting maintained for administrative purposes.
Earnings of the COLA account will not be considered for determining excess investment
earnings.
(6) All assets in the COLA account at September 30, 1993, will be used for COLA benefits,
contribution refunds and allocated expenses.
(7) The actuarial interest and mortality assumptions used for the retirement system will be used
for COLA.
(8) COLA benefits will be determined on a defined benefit basis, based on the minimum city
scheduled contribution.
(9) The active member contributions into the COLA account will have an effective termination
date of January 1, 1994.
(10) In addition to current inactive and active employees, funding for the COLA benefits of future
employees hired during the remaining term of the amended final judgment shall be defined
and allocated through the remaining term of the amended final judgment.
(11) The monthly COLA benefit distribution beginning January 1, 1994, is summarized in table "A"
of amended final judgment, Gates v. City of Miami, Circuit Court Case No. 77-9491 CA 04. Such
table is subject to modification by the COLA committee annually based solely upon available
assets and joint recommendations by the retirement system actuary and the city's actuary,
using generally accepted actuarial principles and prudent reserves, and subject to the
arbitration provisions of section 40-196(b)(5).
(12) The available assets shall be identified and distributed in a defined tabular format. The COLA
benefits table shall be based upon full years of creditable service at time of retirement and
full years of retirement, as of April 1, 1994, and each April 1 thereafter. There shall be
increasing dollar amounts for each additional full year of creditable service and full year of retirement.
(13) Creditable service with the exception of accidental death, accident disability, and service -
incurred disability is defined as follows:
Date of retirement:
minus; date of membership
plus; service bought back and military credit purchased
plus; time before 1940
minus; time without pay
(14) Years of retirement for benefits distributed beginning January 1 of a given year shall be
projected forward to April 1 of that same year.
(15) The present value of assets available for COLA benefits as defined within Stanley, Holcombe
and Associates, Inc.'s September 21, 1993, actuarial impact statement is $32,854,426.00.
(16) The present value of benefits defined within the approved allocation table is $29,581,845.00.
(17) Eligibility for receipt of the COLA benefit shall be based upon a retiree reaching at least four
full years of retirement after 46 years of age. Years of retirement shall be determined each
year. For this paragraph only, in the case of DROP participants, date of retirement shall mean
date of separation from city employment.
(18) For accidental death, accidental disability, and service -incurred disability, years of service
shall be defined as 25 years or actual creditable service if greater. Receipt of the COLA benefit
shall be based on the retiree reaching at least four full years of retirement and 50 years of
age. In the case of accidental death, the beneficiary shall be entitled to the COLA benefit on
the April 1 following the 50th anniversary of the employee's birth and the fourth anniversary
of the employee's death.
(19) COLA benefits for vested rights retirees shall be based upon such retiree reaching at least
four full years of retirement after 50 years of age.
(20) The COLA benefit shall reflect the defined the retirement system benefit options. Existing
beneficiaries' benefits shall be based on the retirement system option, e.g., if the original
option was joint and 40 percent, then the beneficiary would receive 40 percent of the benefit
amount in the benefit table. In the case of a retiree's life annuity option, benefits shall be 105 percent of
the table amount.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 11110, § 4, 1-13-94; Code 1980, § 40-213; Ord. No. 11300, § 1, 9-14-
95)
Sec. 40-205. - Adjustments in benefits.
Members who belonged to the Miami city employees' retirement system, presently known as the City of
Miami firefighters' and police officers' retirement trust, shall continue to be subject to the following
adjustments in benefits:
(1) Election of increased benefit of class A membership.
a. Any member who belonged to the Miami city employees' retirement system and who
elected an increased rate of benefit under that system or who was not a class A member
under that system but who elected to become a class A member, shall contribute to the
City of Miami firefighters' and police officers' retirement trust, by a single payment or by a
series of payments, an amount computed to be sufficient with the member's prospective
regular contributions to make accumulated contributions at his or her normal retirement
age equal to the amount such accumulated contributions would have been had the
member been a class A member or contributed at the increased rate during the entire
period of his or her membership in the Miami city employees' retirement system.
1. Any member may waive payment of the foregoing amount, in which case, upon
service, early service, rule of 64, rule of 68 or ordinary disability retirement, the
member's retirement allowance shall be reduced by the actuarial equivalent of the
amount by which accumulated contributions fall short of the full amount which would
have been the member's accumulated contributions had he or she been a class A
member or contributed at the increased rate during his or her entire period of
membership in the Miami city employees' retirement system.
2. Any member who elects to pay the foregoing amount over an extended period and
who is granted disability retirement under the City of Miami firefighters' and police
officers' retirement trust, shall have his or her disability retirement allowance reduced
by the actuarial equivalent of the then unpaid amounts.
b. If any member of the retirement system elected class A membership or an increased rate
of benefit under the Miami city employees' retirement system, and his or her
contributions pursuant to such election cause accumulated contributions at the
member's normal retirement age to exceed the amount such accumulated contributions
would have been had the member maintained a class A membership or been contributing
at an increased rate for the entire period of membership in the Miami city employees'
retirement system, such member shall be entitled to the return of the excess contributions upon
retirement or shall have his or her retirement allowance increased by the actuarial equivalent of the
amount by which his or her contributions exceed the full amount which would have been the member's
accumulated contributions had he or she been a class A member or had the increased rate been in effect
during his or her entire membership in the Miami city employees' retirement system.
(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, "rule of 64" or rule of 68
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 years. Those members
having such vested right may only continue to earn credit for such allowance up to a
combined period of ten years' service.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10458, § 1, 7-14-88; Code 1980, § 40-214; Ord. No. 11752, § 2, 1-26-
99; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13676, § 2, 4-27-17)
Editor's note— Printed herein is former section 40-235(A)(3)(a) of the Code prior to the adoption of
Ordinance Number 10002 which section is referred to and apparently adopted by reference in this section.
"(A)(3)(a) Upon such retirement, if he/she has three (3) or more years' service since last becoming a
member, he/she shall also receive a pension equal to one (1) percent of average final compensation for
each year of service or fraction thereof that such member served as the city manager, assistant city
manager, city clerk, assistant city clerk, executive secretary of the civil service board, assistant executive
secretary of the civil service board, executive secretary of the planning and zoning board, assistant
executive secretary of the planning board or its predecessor the planning and zoning board, city physician,
city attorney, assistant director of the department of law or as director or assistant director of a department
established by the charter of the city or by ordinance as authorized by such charter; provided that he/she
has served in any of such capacities for a total combined period of not less than three (3) years; subject,
however, for purposes of this paragraph, to a maximum of ten (10) years' service. The benefits provided
herein shall not be diminished after retirement."
Sec. 40-206. - Assignments prohibited.
The present or future right of a person to moneys in the fund or to a retirement allowance, an optional
allowance, a death benefit, the return of contributions, or any other right accrued or accruing to any person
under the provisions of this division, shall be unassignable and shall not be subject to execution,
garnishment, attachment, the operation of bankruptcy or insolvency law or any other process of law
whatsoever.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-215; Ord. No. 11300, § 1, 9-14-95)
Case Law reference— Pension benefits held subject to garnishment for alimony, child support and medical
payments to a pensioner's divorced wife, notwithstanding ordinance provisions exempting pension funds
from garnishment. City of Miami v. Spurrier, 320 So. 2d 397.
Sec. 40-207. - Protection against fraud.
Whoever, with intent to deceive, shall make any statements or reports required under this division which
are untrue or shall falsify or permit to be falsified any record of this retirement system, shall be punished as
provided in section 1-13 of this Code.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-216)
Sec. 40-208. - Errors.
Should any change or error in retirement system records be discovered or result in any member or
beneficiary receiving from the retirement system more or less than he or she would have been entitled to
receive had the records been correct, the board shall have the power to correct such error and, as far as
possible, adjust the payments in such a manner that the actuarial equivalent of the benefit to which such
member or beneficiary was correctly entitled shall be paid.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-217)
Sec. 40-209. - Bonding; fiduciary insurance.
(a) Prior to exercising custody or control of any funds or property of the retirement system, every
fiduciary of the retirement system and every person who handles funds or other property of the
retirement system shall be bonded. Such bond shall provide protection to the retirement system
against loss by reason of acts of fraud or dishonesty on the part of the bonded individual, directly
or through connivance with others.
(b) The board shall purchase insurance for the retirement system and for the members of the board
of trustees to cover liability or losses occurring by reason of an act or omission of a fiduciary,
providing, however, that such insurance permits recourse by the insurer against the fiduciary in
case of a breach of a fiduciary obligation by such fiduciary.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-218)
Sec. 40-210. - General conditions.
(a) It is intended that the City of Miami firefighters' and police officers' retirement trust be and
remain tax qualified pursuant to the Internal Revenue Code of 1986, as amended. The provisions
of this division shall be interpreted in accordance with such intent.
(b) The City of Miami firefighters' and police officers' retirement trust may sue and be sued as an
entity.
(c) The commission shall have continuing power to amend or supplement this division, but no
amendment shall be adopted which will reduce the then accrued benefits of members or
beneficiaries covered by accumulated reserves, which reserves shall constitute a trust fund for
the payment of such benefits.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-219; Ord. No. 13551, § 2, 9-24-15)
Sec. 40-211. - Limitation on compensation.
(a) Compensation in excess of limitations set forth in section 401(a)(17) of the Internal Revenue Code
shall be disregarded. The limitation on compensation for an "eligible employee" shall not be less
than the amount which was allowed to be taken into account hereunder as in effect on July 1,
1993. "Eligible employee" is an individual who was a member before the first plan year beginning
on or after January 1, 1996.
(b) It is the intention of the city and of the board that the plan remain at all times a qualified plan, as
that term is defined under the Internal Revenue Code.
(c) No member's annual benefit may exceed the amounts permitted under Section 415 of the
Internal Revenue Code as amended, including cost of living adjustments under Section 415(d).
(d) In no event may a member's retirement benefit be delayed beyond the later of April 1st following
the calendar year in which the member attains age 701h, or April 1st of the year following the
calendar year which the member retires.
Notwithstanding any other provision of this plan to the contrary, a form of retirement income payable
from this plan, shall satisfy the following conditions:
(1) If the retirement income is payable before the member's death:
a. It shall either be distributed or commence to the member not later than April 1 of the
calendar year following the later of the calendar year in which the member attains age
701h, or the calendar year in which member retires;
b.
The distribution shall commence no later than the calendar year defined above; and (a) shall be paid over
the life of the member or over the lifetimes of the member and spouse, issue or dependent, or (b) shall be
paid over the period extending not beyond the life expectancy of the member and spouse, issue or
dependent.
Where a form of retirement income payment has commenced in accordance with the
preceding paragraphs and the member dies before his/her entire interest in the plan has
been distributed, the remaining portion of such interest in the plan shall be distributed no
less rapidly than under the form of distribution in effect at the time of the member's death.
(2) If the member's death occurs before the distribution of his/her interest in the plan has
commenced, member's entire interest in the plan shall be distributed within five years of
member's death, unless it is to be distributed in accordance with the following rules:
a. The member's remaining interest in the plan is payable to his/her spouse, issue or
dependent; and
b. The remaining interest is to be distributed over the life of the spouse, issue or dependent
or over a period not extending beyond the life expectancy of the spouse, issue or
dependent; and
c. Such distribution begins within one year of the member's death unless the member's
spouse is the sole designated beneficiary, in which case, the distribution need not begin
before the date on which the member would have attained age 701h and if the member's
spouse dies before the distribution to the spouse begins, this section shall be applied as if
the spouse were the member.
(e) Notwithstanding any provision of this plan to the contrary, effective December 12, 1994,
contributions, benefits and service credit with respect to qualified military service will be provided
in accordance with Section 414(u) of the Internal Revenue Code of 1986, as amended, USERRA or
F.S. chs. 175 and 185, as applicable.
(f) Differential wage payments. For years beginning after December 31, 2008 (i) an individual
receiving a differential wage payment, as defined in Section 3401(h)(2) of the Internal Revenue
Code, shall be treated as an employee of the employer making the payment, (ii) the differential
wage payment shall be treated as compensation, and (iii) the plan shall not be treated as failing
to meet the requirements of any provision described in Section 414(u)(1)(C) of the Internal
Revenue Code by reason of any contribution or benefit which is based on the differential wage
payment.
(g) No pension provided hereunder shall be assignable or subject part of the corpus or income of the
fund be used for, or diverted to, purposes other than for the exclusive benefit of members and
their beneficiaries and until those liabilities are satisfied, all city contributions will remain in the
fund for the benefit of the members or beneficiaries in the event the plan is terminated or city
contributions cease.
(h) Upon the termination of the plan or on the complete discontinuance of contributions under the
plan, each member shall have nonforfeitable, 100 percent vested rights to benefit accrued to
date of the termination or discontinuance to the extent funded at that time.
(i) The city shall solely for the purpose of compliance with Sections 125, 457, and 414(h) of the
Internal Revenue Code, pick up the members' contributions. The member contributions so picked
up shall be designated as employer contributions in determining tax treatment under the Internal
Revenue Code. No member shall have the option of choosing to receive the contributed amounts
directly instead of having them paid by the city to the plan.
(Ord. No. 11190, § 3, 10-27-94; Code 1980, § 40-220; Ord. No. 13551, § 2, 9-24-15; Ord. No. 13676, § 2, 4-27-
17)
Editor's note— As set out in Ord. No. 11190, § 7, adopted Oct. 27, 1994, § 40-211 shall become effective on
September 30, 1996.
Sec. 40-212. - Direct transfers of eligible rollover distributions.
(a) General. Notwithstanding any provision of the retirement system to the contrary that would
otherwise limit a distributee's election under this section, a distributee may elect, at the time and
in the manner prescribed by the board, to have any portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(b) The plan may allow a public safety officer to elect a tax free distribution of up to $3,000.00
annually directly to a retiree medical plan or long term care insurance on a pre-tax basis, so long
as the public safety officer separates from service either at the plan's normal retirement age or
due to his or her disability. Insurance premiums may be paid for the public safety officer, his/her
spouse or his/her dependents, but once he/she is deceased, the benefit ceases and may not be
used by his/her spouse or beneficiaries to pay for their insurance premiums. Insurance premium
payments may only be made directly to the insurance company. "Public Safety officers" include
law enforcement officers, firefighters, chaplains, rescue crew members or ambulance crew
members.
(c) Definitions.
Direct rollover means a payment by the plan to the eligible retirement plan specified by the distributee.
Effective as of January 1, 2010, a non -spouse beneficiary may make a direct rollover only to an "inherited"
individual retirement account as described in Section 408(b) of the Internal Revenue Code. If a non -spouse
beneficiary receives a distribution from the Plan, the distribution is not eligible for a 60-day (non -direct)
rollover.
Distributee includes an employee or former employee. In addition, the employee's or former employee's
surviving spouse is a distributee with regard to the interest of the spouse. Effective as of January 1, 2010, as
an employee's or former employee's non -spouse beneficiary is a distributee with regard to the interest of
the employee or former employee.
Eligible retirement plan means an individual retirement account described in section 408(a) of the Code,
an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in
section 403(a) of the Code, an eligible deferred compensation plan described in section 457(b) of the Code
which is maintained by an eligible employer described in section 457(e)(1)(A) of the Code and which agrees
to separately account for amounts transferred into such plan from this plan, an annuity contract described
in section 403(b) of the Code, a qualified trust described in section 401(a) of the Code, that accepts the
distributee's eligible rollover distribution, or any other retirement plan determined to be an eligible
retirement plan under the Code as it may be amended from time to time. This definition shall apply in the
case of an eligible rollover distribution to the surviving spouse.
Eligible rollover distribution means any distribution of all or any portion of the balance to the credit of
the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a
series of substantially equal periodic payments (not less frequently than annually) made for the life (or life
expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the
distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the
extent such distribution is required under section 401(a)(9) of the Internal Revenue Code and the portion of
any distribution that is not includible in gross income. Any portion of any distribution which would be
includible in gross income will be an eligible rollover distribution if the distribution is made to an individual
retirement account described in section 408(a) of the Internal Revenue Code, to an individual retirement
annuity described in section 408(b) of the Internal Revenue Code or to a qualified defined contribution plan
described in sections 401(a) or 403(a) of the Internal Revenue Code that agrees to separately account for
amounts so transferred, including separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which is not so includible.
(d) Plan transfers into the fund. The retirement system will accept a direct transfer or rollover of an
eligible rollover distribution or a member contribution of an eligible rollover distribution from an
eligible retirement plan which is maintained by the city, solely for the purpose of purchasing
creditable service as provided in subsection 40-202(6) herein.
(Ord. No. 12941, § 2, 9-11-07; Ord. No. 13551, § 2, 9-24-15; Ord. No. 13676, § 2, 4-27-17)
Secs. 40-213-40-240. - Reserved.