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HomeMy WebLinkAboutLegislation 6-12-09City of Miami ;¢ • • Legislation Ordinance File Number: 08-00687 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 PLANS/CITY OF MIAMI GENERAL EMPLOYEE AND SANITATION EMPLOYEES' RETIREMENT TRUST" TO PROVIDE PROCEDURES FOR THE EQUITABLE TRANSFER OF RETIREMENT PLAN MEMBERSHIPS BY ELIGIBLE EMPLOYEES; MORE PARTICULARLY BY AMENDING SECTIONS 40-250 AND 40-251 OF THE CODE; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Miami City Commission has determined that the existing retirement code should be revised to ensure equitable participation in the City's Retirement Plan by all City employees; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recital and finding contained in the Preamble to this Ordinance are adopted by reference and incorporated as if fully set forth in this Section. Section 2. Chapter 40 "Personnel," Article IV "Pension and Retirement Plan," Division 3 "City of Miami General Employees' and Sanitation Employees' Retirement Trust," Sections 40-250 and 40-251 of.the Code of the City of Miami, Florida, as amended, are hereby further 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. 40-250. Right of certain persons to reject membership. City of Miami Page 1 of 5 Printed On: 6/3/2008 File Number. 08-00687 Those persons employed in the following positions shall have the right to reject membership in the Plan within the later of one year from June 10, 2000, or within one year from their respective commencements of employment or appointment with the city, subject to performance of the conditions set forth in paragraphs (1) and (2) below, within the aforesaid time period: city manager, city attorney, city clerk, chief deputy city attorney, deputy city attorney, assistant city attorney, assistant city clerk, and those employees identified by the city administration as employed in the executive service of the city. The conditions upon which membership in the Plan may be rejected by any person employed in any of the foregoing positions shall be as follows.- (1) ollows: (1) Submission to the commission of a written trust agreement wherein the employee rejects membership in the Plan 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 Plan. 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 compensation. b. A contribution to the designated public trust fund must be made by the employee rejecting membership in the Plan, 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 compensation. c. An employee may, if so provided in the trust agreement, take actual or constructive receipt of his or her contribution, and 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. d. The city manager may elect to participate in an public trust fund designated by the employee and approved by the city commission. Contributions made to the designated public trust fund by the city shall be in accordance with the provisions of a resolution designating benefits for the city manager and approved by the city commission. Contributions, if any, by the city manager shall be picked up by the city as provided by the provisions of a resolution approved by the city commission. The city manager may, if so provided in the trust agreement, take actual or constructive receipt of his or her contributions, and 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. e. The city attorney, assistant city managers, and assistants to the city manager may elect to participate in a public trust fund designated by the employee and approved by the city commission. Contributions shall be made to the designated public trust fund by the city at a rate of 20 percent of the city attorney's annual base salary, and eight percent of the annual base salary for each of the assistant city managers and assistants to the city manager. The city attorney, assistant city managers, and assistants to the city manager may, if so provided in the trust agreement, take actual or constructive receipt of his or her contributions, and those contributions made by the city on his or her behalf prior to reaching age 55 or disabled, by making a revocable election of distribution of accounts pursuant to the mode of distribution of benefits as provided in the trust agreement. City of Miami Page 2 of 5 Printed On: 6/3/2008 File Number: 08-00687 (2) Upon rejecting membership in the Plan, employees in the foregoing positions as defined in this subsection e., above, may not elect at a later date to transfer membership to the Plan, unless the election is the result of the loss of one of these positions. Should an eligible individual elect to reject membership in the Plan, all previous membership service in the Plan shall be deemed lost upon disbursement or transfer of the employee's member contributions from the Plan. Rejection of membership in the public trust fund, in favor of membership in the Plan, shall preclude employees in the foregoing positions from transferring membership to the public trust fund at a later date. (3) 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 Plan. Notwithstanding any other provisions of Division 3, Chapter 40, any employee who Previously elected to refect membership in the Plan, may transfer membership to and thereafter become a member of the Plan, provided that by no later than October 31, 2008, the employee authorizes the transfer of the entire balance of the employee's account with the City's public trust fund to the Plan and submits the employee's written election to loin the Plan. Sec. 40-251. Transfer of city employees to Plan. (a) In the event that a firefighter or police officer of the city who is a member of the City of Miami Firefighters' and Police Officers' Retirement Trust ("retirement system") is reclassified to a position other than firefighter or police officer, the employee shall be automatically transferred to membership in this Plan. Creditable service earned as a member of the retirement system shall be deemed creditable service in this Plan. (b) L. Any saFFent employee employed prior to April 1, 1996, by the city in a position defined in section 40-250 who has previously rejected membership in the Plan and elects membership in the Plan by June 30, 1996, shall have membership transferred to the Plan, effective July 1, 1996. Creditable service as a member of the public trust fund defined in section 40-250 shall be deemed creditable service in the Plan upon such transfer. 2. Any employee who previously elected to reject membership in the Plan shall, pursuant to the provisions of Section 40-250(8), become a member of the Plan, provided that by no later than October 31, 2008, the employee authorizes the transfer of the entire balance of the employee's account with the City's public trust fund to the Plan and submits the employee's written election to loin the Plan. Upon receipt of the employee's written election and the entire balance of the employee's public trust fund account, the employee shall become a member of the Plan and receive creditable service in the Plan either: A. From the date the employee's participation in the City's public trust fund began, if the employee had not previously been a member of the Plan; or B. From the date the employee originally became a member of the Plan prior to reiecting membership in the Plan. (c) Past service buy-back. Prior to election for membership transfer under paragraph (b) above, an employee in a position defined in section 40-250 may elect to enter into City of Miami Page 3 of 5 Printed On: 6/3/2008 File Number: 08-00687 an agreement between the employee and the city to purchase creditable service as a member of the public trust fund, from his or her original date of employment to the date he or she first besernes became a member of the public trust fund defined in section 40-250 above. (d) Outstanding loan balance. Any member of the public trust fund who has an outstanding loan against his or her public trust fund account balance and who elects to transfer to the Plan must repay said loan in full prior to transfer to the Plan. (e) Commencing on the effective date of transfer to the Plan, a member who has transferred from the retirement system or public trust fund, as defined in section 40-250., shall make regular contributions at the --rate required employee contribution rate set forth in by the Plan. Accumulated contributions credited in the retirement system or the balance of the employee's public trust fund account shall be transferred to the membership account of the Plan and credited to the member thereunder. There shall he tFaR6ferrerl; (f) If any member of the Plan has transferred from the retirement system or a section 40-250 public trust fund and his or her contributions pursuant to membership in the retirement system or public trust fund cause accumulated contributions at the member's normal retirement age to exceed the amount such accumulated contributions would have been had the member been a member of the Pian during his or her entire period of service with the city, 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 member of the Plan during his or her entire period of service with the city. (g) Upon separation from City service, a non -vested member of the Plan who became a member of the Plan pursuant to Section 40-250(6) shall receive: (1) an amount equal to the balance of the public trust fund account transferred to the Plan on the member's behalf less the City's contributions to the public trust fund on the member's behalf and less accumulated earnings on the City's contributions and (2) the return of the member's accumulated contributions made to the Plan on or after the date of the member's transfer to the Plan. *1i Section 3. All ordinances or parts of ordinances that are inconsistent or in conflict with the provisions of this Ordinance are repealed. Section 4. 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 5. This Ordinance shall become effective thirty (30) days after final reading and City of Miami Page 4 of 5 Printed On: 6/3/2008 File Number 08-00687 adoption thereof.{2} APPROVED ASI O FORM AND CORRECTNESS: WAR TNR , DEPU Y CITY ATTORNEY'A.R'- PREPARED BY: 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} This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten 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 or upon the effective date stated herein, whichever is later. City of Miami Page 5 of 5 Printed On: 6/3/2008