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HomeMy WebLinkAboutLegislation 9-10-09Of City 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 PLAN/CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST," TO AMEND AND UPDATE THE ORDINANCE; MORE PARTICULARLY BY AMENDING SECTIONS 40-245,40-250,40-254,40-255 AND 40-266; 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 40-245, 40-250, 40-254, 40-255 and 40-266 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. 40-245. Asset Management and Investments. (d) Permissible investments. (2) No more than five seven percent of the fund at bee4 market value may be invested in any one entity of the categories listed below... e. Common stock and preferred stock of foreign corporations; provided that the City of Miami Page 1 of 7 Printed On: 813112009 File Number.: 08-00687 overall investment under this paragraph shall not exceed te-P fifteen percent of the market value of the total trust fund. (e) Limitations on investment. (1) Trust funds may not specifically be invested in private placements, Eurodollar seGuF ties fE)Fei R cFedits or debt to equity exchanges. Sec. 40-250. Right of certain persons to reject membership. 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, the staff of all elected officials, 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. Sec. 40-254. Paybacks for membership credit. (2) Credit for continuous service as a nonmember. a. Any person who is now a member of the Plan who had prior service with the City as a probationary, full-time temporary, or permanent employee, classified or unclassified, but who at the time of the service was not a member of the Plan, may purchase up to four years of that prior non -membership service. The PPGV,G ^ns of this SeGtk,., shall RGt apply to the position Gf standby labareF iR the DeP24M9Rt of Selid Waste fegara'ess of the pay bus Contributions will be based on the member's current rate of earnable compensation and the current contribution rate. Interest shall be charged at a uniform rate as determined by the board. Sec. 40-255. Benefits. (e) Service Incurred disability retirement - Job Injury or Illness. Cite of Miami Page 2 of 7 Printed On: 8/31/2009 File Number. 08-00687 (3) A member shall be eligible for a service incurred disability retirement from the date of entry into the Plan. Application for disability retirement shall be made on a form prescribed by the board of trustees. The member shall execute such medical releases as are necessary to permit the board to review the medical records needed to determine the question of disability and to discuss said records at a public meeting. Upon receipt of an application for a disability, the board shall refer the application to its physician for review. The applicant for a disability shall be required to submit to such medical examinations as the board appointed physician shall deem necessary. The board appointed physician, and any referring specialists, shall report their findings to the board. The report shall include a determination, to the extent reasonably possible, of the origin of the disability, whether the disability is permanent and whether the disability is total. In making those determinations, the physician(s) shall be bound by the definition of disability set forth in this Plan. (6) No applicant for a service incurred disability retirement may receive benefits under this section if the accident, injury or illness is shown to have occurred due to the gross negligence on the part of the member. The term "gross negligence" shall be defined as willful, wanton or malicious conduct on the part of the member demonstrating a total disregard for human life, safety and property. (7) Except for disabilities arising from the causes outlined in section (f) below, A member who is granted a service incurred disability retirement shall receive a benefit equal to 66 2/3 percent of the member's average final compensation or 66 2/3 of the member's compensation in the year immediately preceding the member's disability, whichever is greater. The benefit shall be paid yearly, in monthly installments, for life of the member. Members receiving a benefit under this section shall not be eligible for a return of contribution nor for optional allowances provided in this Plan under subsections (h) and (i). (8) Upon the death of a member iR FeGeipt of beRe fitS „n,Ior this6eGtiGn, who has received a service incurred disability the spouse of the member who was designated by the member on the date of retirement as said member's spouse shall receive payment of an amount equal to 40 percent of the member's monthly retirement allowance during the lifetime of the spouse. {�-a-)-�f) Service -Incurred disability retirement -Heart Disease, Hypertension Tuberculosis. M Any member who becomes totally and permanently incapacitated for duty as a result of heart disease, hypertension or tuberculosis, shall be presumed to have a service -incurred disability been iRjH ed in the line of duty, unless a physical examination upon entering the plan revealed that such condition existed at that time or competent substantial evidence determines that the injury is not the result of a workplace injury. Such person may be eligible for a service -incurred disability provided that a physician retained by the board, after a medical examination of such member, certifies that such member is totally incapacitated for duty. Such person shall receive benefits equal to those paid for an ordinary disability, with a minimum benefit of 40 percent of average final compensation. Upon the death of a member who has received a service -incurred disability retirement no future pension benefits will be due to any beneficiary. City of Mianu Page 3 of 7 Printed On: 813112009 File Number.' 08-00687 0-2-) (2) A DROP participant shall not be entitled to receive a service incurred disability retirement. (f) Lcjj Ordinary death benefits; post-retirement death benefits. {g) (h) Service -incurred death benefit. 44 ) Return of contributions. k4) Optional allowances. (2) The options permitted under the plan are: Option 2: Equal payment survivor annuity. A member may receive a reduced retirement allowance throughout his or her life with an equal sum being paid to the member's designated beneficiary at the death of the member. If this option is chosen for a surviving spouse, the reduction shall be ten five percent of the member's benefit. If any person other than a surviving spouse is chosen as the beneficiary, the reduction shall be based on the actuarially equivalent sum. Option 3: One-half payment survivor option. A member may receive a reduced retirement allowance payable for the life of the member with one-half of the member's benefit being paid to a designated beneficiary at the death of the member. If this option is chosen for a surviving spouse, the reduction shall be two one percent of the member's benefit. If any person other than a surviving spouse is chosen as the beneficiary, the reduction shall be based on the actuarially equivalent sum. {}}(k) Change in beneficiary. Any Only members who elect Option 6c: Surviving spouse annuity may designate a new spousal beneficiary in accordance with procedures established by the board; provided, that an actuarial valuation will be made following such election, and the benefit for the retiree will be recalculated so that it is the actuarial equivalent of the benefit payable to the original spouse. It is intended that the Plan will pay only one survivor benefit for any member of the Plan and will not incur an increase in benefit costs by reason of a change in designated beneficiary. Also, provided that the spouse designated at the time of the retirement is still alive at the time the member is reauestina to chance his/her beneficiary. (k) Ll Deferred retirement option program. Effective upon ratification of the A.F.S.C.M.E., Local 1907, labor agreement for October 1, 2001 through September 30, 2004, the DROP of the retirement plan shall be available for general employees and shall consist of a FORWARD DROP and a BACKDROP. Any general employee who has reached age 55 with ten years of creditable service, or who has attained a combination of age plus years of creditable service equal to 70, shall be eligible to participate in the DROP. City of Miami Page 4 of 7 Printed On. 8131/1009 File Number., 08-00687 (1) Etection 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 member's average final compensation as the basis of calculating the DROP payment. Upon commencement of participation in the DROP, the member's contribution and the city contribution to the retirement plan for that member shall cease as the member will be earning no further service credit. The member shall not acquire additional pension credit for the purposes of the pension plan but may continue city employment for up to a maximum of 36 48 months. (2) Maximum participation. The maximum period of participation in the DROP, is 36 48 months. Once the maximum participation has been achieved, the participant must terminate employment. (3) Creation of individual account. For each general employee electing participation in the DROP, an individual account shall be created. (4) Earnings on DROP account. The board of trustees of the retirement plan 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 GESE trust fund, but any such loss shall be borne by the participant only. Upon participation in the DROP, the member shall make a selection of the earnings program on forms provided by the board. All interest shall be credited to the member'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; or b. Periodic payments; or c. Rollover of the balance to another qualified Retirement Plan, IRA, or an Internal Revenue Code Section 457 Plan; or d. An annuity. A participant may defer payment until the latest date authorized by Section 401(a)(9) of the Internal Revenue Code. (6) 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. (7) If a DROP participant dies before the DROP account balances are paid out in full, the person(s) 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. (8) Any employee who enters into a DROP agreement shall be bound by the terms and conditions of that agreement. (9) 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 plan 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 plan. The amount of the monthly benefit shall be determined based on the creditable service, average final compensation, and retirement option selected in accordance with section 40-255 of this Code. 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 BACDROP program, (10) BACDROP. A general employee may elect to BACDROP to a 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 W 12 months. Participation in the City of Miami Page 5 of 7 Printed On: 813112009 He Number 08-00687 BACDROP does not preclude participation in the FORWARD Drop program. The benefits for purpose of the BACDROP will then be actuarially calculated to be the equivalent to the benefit earned at the date of retirement. Said calculation will consist of the present value of benefits being equal to the actuarially reduced benefit, plus a lump sum with interest, as determined by the retirement plan's actuary. Participant contributions will not be returned for the period of time covered by the BACDROP program. The lump sum as calculated by the retirement plan's actuary will be based on the assumed investment return of the fund without discount for mortality and deposited into the newly created DROP account. (� Reemployment of retirees. Sec. 40-266. Transfer of accumulated leave. (a) Members eligible to receive accumulated sick leave, accumulated vacation leave or any other accumulated leave payable upon separation may elect, not later than the year prior to retirement to have the leave transferred to the Plan in accordance with the respective collective -bargaining -agreement, if applicable. Members on whose behalf leave has been transferred may elect one of the following options within 30 days of separation. Members failing to elect a distribution option within 30 days of separation will be deemed to have elected Option 1 below: (1) Receive a lump sum equal to the transferred leave balance, or (2) Transfer the entire amount of the transferred leave balance directly to any eligible retirement plan, or (3) Purchase additional service credit as may permitted by the Code (including Section 40- 254(6) - Purchase of additional service upon retirement) If the leave balance exceeds the cost of the service credit purchased, the balance shall be paid to the member in a lump sum. *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.{21 APPROVED AS TO FORM AND CORRECTNESS: JULIE O. BRU �j� wJ CITY ATTORNEY \`�'/ Cit}, of Miami Page 6 of 7 Printed On. 8/31/2009 File Number: 08-00687 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. City of Miami Page 7 of 7 Printed On; 8/37/2009