HomeMy WebLinkAboutMemo-City ManagerMartinez, Maribel
From:
Thompson, Priscilla
Sent:
Wednesday, October 21, 2009 2:56 PM
To:
Hannon, Todd; Martinez, Maribel
Subject:
FW: Elected Officials Pension Options
Attachments:
Elected Officials Pension Plans.pdf
Importance:
High
Follow Up Flag:
Follow up
Flag Status:
Flagged
F.Y.I. Please print out and bring to tomorrow's meeting.
101-1se,aa To pso�, affe
City Clerk
(305) 250-5370
fax (305) 858-1610
From: Westall, Lynn On Behalf Of Hernandez, Pedro G. (City Manager)
Sent: Wednesday, October 21, 2009 2:37 PM
To: Sanchez, Joe (Commissioner); Spence -Jones, Michelle (Commissioner); Gonzalez, Angel R; Regalado, Tomas
(Commissioner); Sarnoff, Marc (Commissioner)
Cc: Diaz, Manuel A (Mayor); Hernandez, Pedro G. (City Manager); Bru, Julie; Thompson, Priscilla; Spring, Larry;
Fernandez, Javier; Zorrilla, Teresa; Wright, Steve; Aug ustus- Fidel ia, Vicki; Alexander, Koteles; Crapp Jr., Tony; Nelson,
Ron; Brehm, LeeAnn
Subject: Elected Officials Pension Options
Importance: High
Please find attached memorandum providing options as to newly elected city officials pension plans.
Many thanks.
Lynn Westall
Senior Assistant to the City Manager
City of Miami
3500 Pan American Drive
Miami, Florida 33133
305-250-5407 (office)
305-250-5410 (fax)
0q-01066- Mono_ Citi Mav)a3e-r
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: HonkraYle City Commission
FROM: Pedro G. HemWdez. P.E.
City Manager
DATE: October 2l, 2009
SUBJECT: Elected Officials Pension Options
REFERENCES: Agenda item SR.2
October 22, 2009
ENCLOSURES:
In response to .a Commission directive at your meeting of October 8", 2009, Administration was
.requested to provide the Commission with several options as to defined contribution pension plans that
could be offered to newly selected city officials in lieu of the current city retirement plan. The City
currently has m place an JCMA- RC - 401 Governmental Money Purchase Plan & Trust ('frust). Under
the Trust Document, there are different adoption agreements which .define and outline the defined
contribution for ,different chssifcations. The City currently has four adoption agreements: Executives
Retirement Plan, City Attorney Retirement Plan, City Manager Retirement Paan, Assistant City Managers
and Assistants to the CityManager Retirement Plan.
The City of Miami .Executive Retirement Plan provides that those eligible to participate in the plan are
those who .bold titles as :specified in 'Ordinance 10438 as well as new executive titles established to be
added at the City's discretion.'The contribution provisions are a fixed employer contribution of 8 percent
of earnings for the plan year and a required employee contribution of 10 percent of earnings. The
employee cannot discontinue or vary the rate .ofsuch contribution after becoming a plan participant Each
participant may make a voluntary ((unmatched, after-tax .contribution. Each participant is fully vested
upon becoming a :plan participant
In addition to the above option, there are several different structures currently available to the City:
•
Contributions by Employer only
+ Employer contribution set at a specific percentage and Employee contribution set at a variable
rate .from ,0% to 20% for a Pian Year, but shall not have the sight to discontinue or vary the rate of
such contribution after becoming a Plan Participant In other words, once a participant makes a
contribution selection, it cannot be changed.
Contributions by Employee only (no available city plan and participants at this time)
As an example of these options, our City Manager Retirement Plan provides for the Employer, the City of
Miami, to contribute on behalf of the participant This Plan does not require any contribution by the
participant. The City Attorney plan is similar in that the Employer makes the only contribution, and the
City Attorney has no requirement to contribute. On both of these options, the Employee can make after
tax contribution and each will be fully vested upon becoming .a plan participant The contribution
percentage of the Employer is negotiated in the contract 'On the Assistant City Managers and Assistants
to the City .Manager Plan there is .a slight difference in that the Employer ,contribution is fixed at 8% and
theemployee has no .requirement to contribute any percentage of their earnings. We hope the above
proffered options will assist you in finalizing a pension plan for new elected officials.
C: Honorable Mayor Manuel A. Diaz
Julie O. Bru, City Attorney
Priscilla .A. Thompson, 'City Clerk
Larry :Spr.ing, CFO
LeeAnn Brehm, Director, Risk