HomeMy WebLinkAboutLegislation FRFile Number: 09-00909
City of Miami
Legislation
Ordinance
City Hall
3500 Pan American
Drive
Miami, Fl- 33133
www.miamigov.com
Final Action Date:
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER
40/ARTICLE IV/DIVISION 3, OF THE CODE OF THE CITY OF MIAMI, FLORIDA,
AS AMENDED, ENTITLED "PERSONNEL/PENSION AND RETIREMENT
PLAN/CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES'
RETIREMENT TRUST," TO AMEND ORDINANCE; MORE PARTICULARLY BY
AMENDING SECTIONS 40-244 AND 40-246; CONTAINING A SEVERABILITY
CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA:
Section 1. Sections 40-244 and 40-246 of the Code of the City of Miami, Florida, as amended, is
amended in the following particulars:{1}
"Chapter 40
PERSONNEL
ARTICLE IV. PENSION AND
RETIREMENT PLAN
DIVISION 3. CITY OF MIAMI GENERAL EMPLOYEES'
AND SANITATION EMPLOYEES' RETIREMENT TRUST
Sec. 40-244. Administration of the Plan; Liability; Misconduct of a co -trustee.
(d) Actuarial valuation; actuarial standards.
(3) The actuarial value of the assets of the Plan shall be the
thFee-five-year moving market value average. Each year, starting with the
market value as of October 1, 44W 2007,
the expected return will be determined based on the beginning of
year market value and the actual contribution and benefit payments at the
assumed interest assumption.
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File Number: 09-00909
One-fifth of the difference between the
expected market value return and the actual market value return is included in
the actuarial asset value at the valuation date. Four-fifths of the difference
between the expected market value return and the actual market value return is
deferred in even increments of 20% per year to each of the next four years as
future adiustments to the actuarial asset value. The preliminary actuarial asset
value will be the sum of the actuarial asset value as of the previous valuation
date plus the actual contributions and benefits payments in the year ending on
the current valuation date plus the expected return on market value return plus
one-fifth of the cumulative differences between the expected and actual market
value returns over the five years up to the valuation date. The result cannot be
greater than 120 percent of market value or less than 80 percent of market
value. The board may approve other methods of determining the actuarial value
of the Plan 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 any change in the method of determining the actuarial value of Plan
assets, the city shall be given timely written notice of the proposed change.
Sec. 40-246 Contributions.
(b) City contributions.
(2) The city's contribution for the unfunded liability of the Plan shall be
made in accordance with the final judgment, as amended, in the matter
of Gates v. City of Miami, Case No. 77-9491, in the circuit court for the
eleventh judicial circuit in and for Miami -Dade County, Florida, and in
accordance with the following additional provisions:
a. As of October 1, 472008,
the unfunded actuarial accrued liability
shall be amortized as a level percentage of the projected payroll of active
plan members. The unfunded actuarial accrued liability as of October 1
2008 shall be amortized over the remaining years as of that date to fully
amortize each unfunded actuarial accrued liability base. As of October 1,
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File Number.' 09-00909
4997 2008, benefit improvements for actives shall be amortized over 3.9-
15 years. Benefit improvements for retirees shall be amortized over 15
years. Actuarial gains and losses shall be amortized over 15 years.
Changes in actuarial assumptions and methods shall be amortized over
28 15 years.
(3) The actuarial method for evaluating assets shall be changed
to a moving market value average over tree five years beginning
September 30, 4997 2008. As of October 1, 4997 2008, maw
value one-year moving average shall be used; as of October 1,
4998 2009, a two-year moving average shall be used; as of
October 1, 4999 2010, a three-year moving average shall be
used, as of October 1, 2011, a four-year moving average shall be
used, and thereafter, a --3--5-Year moving average shall be used.
Each year the aGtuaFial value, starting with the market value as of
October 1, 44)1� 2007, will be prejeGted fopNaFd at the valwati
date hated ^^ the expected return will be determined based on
the beginning of year market value and actual contributions and
benefit payments at the assumed interest assumption. This-
assets at the valu'atiOR'date One_thiFd of the rdifferenne plus prior
defe-FFals is added to the PFejeGted aGt6laFial asset value to equal -
the aotWarial ascot value. Two_thirtds of the difference between
prejerterd aGtuarial and Market asset value is deferred to anh of
the next fids years as fi it ire adj }Ment to the aGtuarial asset
fie. One-fifth of the difference between the expected market
value return and the actual market value return is included in the
actuarial asset value at the valuation date. Four-fifths of the
difference between the expected market value return and the
actual market value return is deferred in even increments of 20%
per year to each of the next four years as future adjustments to
the actuarial asset value. The Preliminary actuarial asset value
will be the sum of the actuarial asset value as of the previous
valuation date plus the actual contributions and benefit payments
in the year ending on the current valuation date plus the expected
return on market value return plus one-fifth of the cumulative
differences between the expected and actual market value
returns over the five years up to the valuation date. The result
cannot be greater than 120 percent of market value or less than
80 percent of market value.
(4) The aggregate individual entry age normal cost method will be
applied for costs as of October 1, 49� 2008, and each October
1st thereafter, based on demographic and asset data as of the
previous October 1 st adjusted for interest from that date to
reflect payment timing. The annual normal cost will be determined
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File Number: 09-00909
on the individual entry age normal method. If
the actuarial asset value exceeds the individual entry age accrued
liability,such excess shall be held as a reserve to offset any future
unfunded actuarial accrued liability. will determiRe the aRnual
6PFea Y as a level peFGeRtvf pay. The present value of fwt %
Rermal GOSt Will be based GR the pFe6eRt value of all beRefits less
pFepent value of f tuFe employee n9n4rih„tinn6 loss the greater of
Under no
circumstances will the total cost be determined to be less than
zero.
*11
Section 2. If any section, part of section, paragraph, clause, phrase or word of this Ordinance is
declared invalid, the remaining provisions of this Ordinance shall not be affected.
Section 3. This Ordinance shall become effective immediately upon its adoption and signature of
the Mayor.{2}
APPROVED AS TO FORM AND CORRECTNESS:
JULIE 0. BI�U
CITY ATTORNEY
Footnotes:
{1} Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be
added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted
and unchanged material.
{2} If the Mayor does not sign this Ordinance, it shall become effective at the end of ten calendar days
from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become effective
immediately upon override of the veto by the City Commission.
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