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HomeMy WebLinkAboutO-13154Vop City of Miami F .. 19611F 111 *'Ir Legislation i 0 R �O Ordinance: 13154 File Number: 08-00687 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 4/22/2010 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 INCREASE THE PERCENTAGE OF PERMISSIBLE INVESTMENTS; REMOVE THE LIMITATIONS ON INVESTMENTS IN EURODOLLAR SECURITIES AND FOREIGN CREDITS; AMEND AND UPDATE THE ORDINANCE LANGUAGE; MORE PARTICULARLY BY AMENDING SECTIONS 40-245,40-254,40-255 AND 40-266 RELATED TO CREDIT FOR CONTINUOUS SERVICE AS A NONMEMBER; ACCIDENTAL DISABILITY RETIREMENT; SERVICE INCURRED DISABILITY; AND TRANSFER OF ACCUMULATED LEAVE; CONTAINING A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. Chapter 40/Article IV/Division 3 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. City of Miand Page 1 of 7 File Id. 08-00687 (Version: 6) Printed On: 7/25/2017 File Number: 08-00687 Enactment Number: 13154 (2) No more than five seven percent of the fund at beef 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 overall investment under this paragraph shall not exceed tee 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 seri irities foreign `+redits or debt to equity exchanges. 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 provisions of this sentinn shall not apply to the position of standby laborer in the Department of Selid Waste regardless of the nasi basis. 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. City of Miand Page 2 of 7 File Id. 08-00687 (Version: 6) Printed On: 7/25/2017 File Number: 08-00687 Enactment Number: 13154 (e) con„i+e lnGunr erl Accidental disability retirement - Job Injury. (3) A member shall be eligible for a seFViGe inG erred an accidental 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 seFViGe in^, erred accidental 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 s ibseGtien ti 1) a section (f) below, A member who is granted a seFViGe in^, erred accidental 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 in receipt of benefits ender this seGtiwho has received an accidental 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. (0 Service -Incurred disability retirement - Heart Disease, Hypertension, Tuberculosis. 41-) (1) 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 injured 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 City of Miand Page 3 of 7 File Id. 08-00687 (Version: 6) Printed On: 7/25/2017 File Number: 08-00687 Enactment Number: 13154 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 anv beneficiarv. 424 A DROP participant shall not be entitled to receive a service incurred disability retirement. 04 Lcl) Ordinary death benefits; post-retirement death benefits. {g) h) Service -incurred death benefit. {h-) i) Return of contributions. { 4 (j) Optional allowances. {)(k) Change in beneficiary. Any member who elects a survivorship option for a spouse pursuant to subsection (1) 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. {k}M 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. (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 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. City of Miand Page 4 of 7 File Id. 08-00687 (Version: 6) Printed On: 7/25/2017 File Number: 08-00687 Enactment Number: 13154 (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 City of Miand Page 5 of 7 File Id. 08-00687 (Version: 6) Printed On: 7/25/2017 File Number: 08-00687 Enactment Number: 13154 increments, beginning at the start of a pay period, not to exceed 36 12 months. Participation in the 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. {14 m) 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 retirement or separation (including DROP) 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 retirement/separation. Members failing to elect a distribution option within 30 days of retirement/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.{2} Footnotes: City of Miami Page 6 of 7 File Id. 08-00687 (Version: 6) Printed On: 7/25/2017 File Number: 08-00687 Enactment Number: 13154 {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 Miand Page 7 of 7 File Id. 08-00687 (Version: 6) Printed On: 7/25/2017