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HomeMy WebLinkAboutLegislation* i ItC11s PM7E0 tr^ � File Number: 10-01091 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 2 ENTITLED "PERSONNEL/PENSION AND RETIREMENT PLAN/CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST", MORE PARTICULARLY BY AMENDING SECTIONS 40-191 AND 40-203, h?AKING CHANGES TO THE NORMAL RETIREMENT DATE, BENEFIT FORMULA, MAXIMUM BENEFIT, NORMAL BENEFIT FORM, AND AVERAGE FINAL COMPENSATION; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. WHEREAS, pursuant to Section 447.4095, the Miami City Commission, on August 31, 2010, made changes to certain wages, healthcare and pension benefits effective September 30, 2010, in the collective bargaining agreement between the City of Miami and the International Association of Firefighters, AFL-CIO, Local 587 and the Fraternal Order of Police, Walter E. Headley, Jr., Miami, Miami Lodge No. 20; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings 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/Article IV/Division 2 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 ;VISION 2. CITY OF MIAMI FIREFIGHTERS' ANCA F�LICE OFFICERS' RETIREMENT TRUST Sec. 40-191. Definitions. Unless a different meaning is plainly required by the context, the following words and phrases as used in this division shall have the following meanings: Cit), of Miami Page I of 21 File Id: I d-OI09I (Version: I) Printed On: 9/10/2010 File Number. 10-09091 Average final compensation shall mean for members who retire or terminate employment with ten or more years of creditable service prior to October 1, 2010, the annual earnable compensation of a member during either the last one year or the highest year of membership service, whichever is greater. Effective September 30, 2010, for members who retire on or after October 1, 2010, average final compensation shall mean the average of the highest 5 years of service, to be phased in over the next 4 years as follows: for members who retire on or after October 1, 2010 and on or before September 30, 2011, the average of the highest 2 years of membership service; for members who retire on or after October 1, 2011 and on or before September 30, 2012, the average of the highest 3 years of membership service; for members who retire on or after October 1, 2012 and on or before September 30, 2013, the average of the highest 4 years of membership service; and for members who retire on or after October 1, 2013, the average of the highest 5 years of membership service. Provided, in no event shall the average final compensation of any member who is employed as a police officer or firefighter on September 30, 2010 and retires on or after October 1, 2010, be less than the highest year of membership service prior to September 30, 2010. F-ar- Sec. 40-203. Benefits. (a)Service retirement. (1) Any member in service who has ten or more years of creditable service may elect to retire upon the attainment of normal retirement age. Such election shall be made upon written application to the board, setting forth not less than ten nor more than 90 days subsequent to the execution and filing thereof, the date the member desires to be retired. (2) Normal retirement age for members employed on September 30, 2010, who as of that date have attained age 50 with ten or more years of creditable service, or eligibility for rule of 64 retirement for firefighter members, or eligibility for rule of 68 retirement for police officer members, shall be 50 years of age with ten or more years of creditable service, or rule of 64 retirement for firefighter members, or rule of 68 retirement for police officer members. A member who continues as an employee after attaining normal retirement age shall remain a member while an employee and during such period shall participat= in the retirement system in all respects. Retirement shall be compulsory at aye 60 for members in service. (3) The normal retirement age for members employed on September 30, 2010, who as of that date have not attained age 50 with ten or more years of creditable service, or rule of 64 retirement for firefighter members, or rule of 68 retirement for police officer mernber,,and members hired on or after October 1, 2010, shol be rule of 70 retiren ent witn a_minimum age of 50 and ten or more years of creditaols service. (4) Notwithstanding any other provision of this ketirement System, any participant who is employed and not participating in the DROP on September 30, 2010, may elect to receive his/her accrued benefit as of that date determined in accordance with the City of AVami Page 2 of 21 File Id. 10-01091 (Version: 1) Printea On: 9,10/2010 File Number: 10-01091 provisions of the System in effect on September 29, 2010, and payable on the date and in the manner provided by the provisions of the System in effect on September 29 2010. Such participants who elect to receive their accrued benefit as of September 30, 2010, at a date prior to the normal retirement age provided in subsection (3) above, shall be eligible to receive that portion of their retirement allowance based on creditable service on or after October 1 2010 on the date and in the manner provided by the provisions of the System in effect on the earlier of retirement or separation from service. (5-3)A member exercising service retirement on or after October 4, 1991, and before January 9, 1994, shall be entitled to receive a retirement allowance equal to 2.75 percent of the member's average final compensation multiplied by years of creditable service, which amount shall be paid yearly in monthly installments. A member exercising service retirement on or after January 9, 1994 shall be entitled to receive a retirement allowance equal to 2.75 percent of the member's average final compensation multiplied by years of creditable service for the first 15 years of such creditable service. Such member shall also be entitled to receive a retirement allowance equal to three percent of member's final average compensation multiplied by the years of creditable service in excess of 15 years. A police officer member exercising service retirement on or after May 28, 1995, shall be entitled to receive a retirement allowance equal to 2.75 percent of the member's average final compensation multiplied by years of creditable service for the first 15 years of such creditable service. Such member shall also be entitled to receive a retirement allowance equal to three percent of member's final average compensation multiplied by the years of creditable service in the excess of 15 years, which amount shall be paid yearly in monthly installments. A firefighter member exercising service retirement on or after May 28, 1995, shall be entitled to receive a retirement allowance equal to three percent of the member's average final compensation multiplied by years of creditable service, which amount shall be paid yearly in monthly installments. (6-4) Effective October 1, 1998, a member exercising service retirement on or after October 1, 1998 and before October 1, 2010, shall be entitled to receive a retirement allowance equal to three percent of the member's average final compensation multiplied by years of creditable service for the first 15 years of such c -editable service. Such member shall also be entitl,— ! to receive a retirement u;iowance equal to 3'/z percent of member's final ave:,aye compensation multiplied by the years of creditable service in excess of 15 years, which amount shall be paid yearly in monthly installments. (7) Notwithstanding any other provision of this subsection (a), effective September 30, 2010, a member exercising 3erV..a retirement on or after October 1, 2010 shall bE entitled to receive a ritiremi.;.; ailowance equal to the percentage providFd in paragraph (5) above for creditable service prior to October 1, 2010, and three percent of the member's average final compensation mi iltiplied by years of creditabl- service for creditable service on and after October 1 ''C 10, which amount shall be paid yearly in monthly installments. City of Miami Page 3 of 21 File Id: 10-01091 (Version: 1) Printed On: 9110/2010 File Number: 10-01091 (85) A member eligible for service retirement may choose any one of the optional allowances available to him or her on the date of retirement, as provided in subsection (m). (b) Rule of 641 rule of 68, and rule of 70 retirement. (1)Any member in service who did not withdraw from active membership in the retirement system and retiring effective May 28, 1995, may elect service retirement on the basis of his or her combined age and creditable service equaling 64 or more provided that the member has reached minimum vesting requirements. Such election shall be made upon written application to the board no less than ten days nor more than 45 days from May 28, 1995. (2)Upon rule of 64 retirement, on or after May 28, 1995, a police officer member shall be entitled to receive a retirement allowance equal to 2.75 percent of the member's average final compensation multiplied by the years of creditable service for the first 15 years of such creditable service. Such member shall also be entitled to receive a retirement allowance equal to three percent of the member's final average compensation multiplied by the years of creditable service in excess of 15 years. Upon rule of 64 retirement, a firefighter member retiring on May 28, 1995, shall be entitled to receive a retirement allowance equal to three percent of the member's average final compensation multiplied by years of creditable service which amount shall be paid yearly in monthly installments. A member eligible for rule of 64 or rule of 68 retirement may choose one of the optional allowances available to him or her on the date of retirement, as provided in subsection (m). (3) Upon rule of 64 retirement, on or after October 1, 1998, or upon the Rule of 68 retirement on or after October 1, 2009, a member shall be entitled to receive a retirement allowance equal to three percent of the member's average final compensation multiplied by years of creditable service for the first 15 years of such creditable service. Such member shall also be entitled to receive a retirement allowance equal to three and one-half percent of member's final average compensation m_,":alied by the years of creditable service in excess Cf 15 years, which amount s, ia,l be paid yearly in monthly installments. A member eligible for rule of 64 or rule of 68 retirement may choose one of the optional allowances available to him or her on the date of retirement, as provided in subsection (m). (4) Effective September 30, 2010, upon rule of 70 retirement on or after October 1, 2010, a member shall be entitled to receive a rE _irement allowance equal to the percentage provided in paragraph (a)('.,) above for creditable service prior to October 1, 2010, and three percent of the member's average final compensation multiplied by years of craditible service for creditable service on and after October 1, 2010, which amount 0all be paid yearly in monthly installments. A member eligible for rule of 70 retirement may choose one of the optional allowances City of Miami Page 4 of 21 File Id: 10-.71091 (Version: 1) Printed On: 9/1012010 File Number 10-01091 available to him or her on the date of retirement, as provided in subsection (m). (c) Limitation on benefits. (1)Effective October 1, 1998, member retirement allowances shall not exceed 100 percent of the member's final average compensation for members retiring under service retirement or rule of 64 retirement, and effective October 1, 2009 for rule of 68 retirement with the following exceptions: a. Members whose retirement allowances, prior to October 1, 1998, who had already earned 100 percent or greater of the member's average final compensation shall continue to accrue pension benefits as outlined under section 40-203. b. Members whose retirement allowance exceeds 100 percent of their average final compensation as of October 1, 1998, due to the multiplier change, shall be capped at the new percentage. (2)Effective June 12, 2007, firefighter member, including, but not limited to, I.A.F.F. bargaining unit member, retirement allowances shall not exceed 100 percent of the member's final average compensation for firefighter members and I.A.F.F. bargaining unit members retiring under service retirement, rule of 64 retirement or rule of 68 retirement. Effective September 30, 2010, for members who retire or terminate employment with ten or more years of creditable service on or after October 1, 2010, member retirement allowances shall not exceed the lesser of 100 percent of the member's final average compensation or an annual retirement allowance of $100,000.00 based on the standard form of benefit in effect on the date of retirement; provided, in no event shall the benefit limitation provided in this paragraph (3) be less than the lesser of 100 percent of the member's final average compensation or the member's accrued benefit on September 30, 2010 based on the standard form of benefit in effect on that date. (d) Early service retirement. (1)Any member in service who has 20 or more years of creditable service may elect to retire on a retirement allowance —ich shall be the actuarial equivalent of the service retirement allowance uu.arwise available to the member upon the attainment of normal retirement age. Such election shall be made upon. written application to the board, setting forth not less than ten nor more than 90 days subsequent to the execution and filing thereof, the date the member desires to be retired. (2)A ml.:mber ,;;-Rule for early service retirement may choose any ol..: it the optional allowances available to him or her on the date of retirement, as provided in subsection (m). (3)A member who has elected to retire on an early service retirement shall not be City of Miami Page 5 of 21 File Id. 10-01091 (Version: Il rrin.ed On: 9110/2010 File Number: 10-01091 eligible to participate in the DROP. (e) Vested right to retirement. (1)lf a member who is not entitled to retire ceases to be a city employee for any reason other than death or willful misconduct in office, he or she may elect to continue as a member not in service and retire upon subsequent attainment of normal retirement age, provided: a. That when the member ceases to be a city employee, the member has completed at least ten years of creditable service; and further provided b. That the member does not withdraw his or her accumulated contributions. (2) A member electing to become a member not in service on or after October 4, 1991, and before January 9, 1994, shall be entitled to receive a retirement allowance equal to 2.75 percent of member's average final compensation multiplied by years of creditable service which amount shall be paid yearly in monthly installments, upon attainment of normal retirement age. A member electing to become a member not in service on or after January 9, 1994, shall be entitled to receive a retirement allowance equal to 2.75 percent of the member's average final compensation multiplied by the average final compensation multiplied by the years of creditable service for the first 15 years of such creditable service. Such member shall also be entitled to receive a retirement allowance equal to three percent of member's final average compensation multiplied by the years of creditable service in excess of 15 years, upon attainment of normal retirement age. A member electing to become a member not in service on or after October 1, 1998, shall be entitled to receive a retirement allowance equal to three percent of the member's average final compensation multiplied by years of creditable service for the first 15 years of such creditable service. Such member shall also be entitled to receive a retirement allowance equal to 3'/2 percent of member's final average compensation multiplied by the years of creditable service in excess of 15 years, upon attainment of normal retirement age. (3) If a member who elects to become a member not in service subsequently elects to withdraw his or her accumulated contributions, th-: member not in service shall be paid the amount of his or her accumulated coy ,,, ;outions at the time he or she ceased to be a city employee, excluding all amounts picked up from the member's earnable compensation and credited to the COLA fund, plus only such regular interest as has been accumulated during the first three years thereafter. (4) If a member not in service .�:es prior to retirement, his or her beneficiary shall toe paid the amount of his of ,,�;r accumulated contributions at the time he .)r site teas: -d to be a city employee, excluding all amounts picked :gyp from the member's earnable compensation and credited to the COLA fund, plus regular interest therczm to the date of the member's death. City of Miami Page 6 of 21 File Id. 10-01091 (Version: 1) Printed On: 9/1012010 File Number: 10-01091 (5)lf a person elects a vested right to retirement under any retirement system or plan sponsored by the city and thereafter becomes an employee, he or she shall become a new member of the retirement system on the date employment recommences and shall make regular contributions to the retirement system at the rate required by section 40-196(a). Such member shall be entitled to receive a retirement benefit therefor as if he or she were a new entrant upon the date of subsequent employment and, in addition, shall be entitled to receive a retirement benefit for his or her employment in accordance with paragraph (d)(2) above. (6) A member not in service shall not be eligible to participate in the DROP. (f) Ordinary disability retirement. (1)Any member in service who has ten or more years of creditable service but who is not eligible for a service retirement allowance may, upon written application, be retired by the board on an ordinary disability retirement allowance; provided, that after medical examination of such applicant, the physician retained by the board shall certify that the member is mentally or physically totally incapacitated for the further performance of duty (not as a result of an accident in the actual performance of duty as defined in subsection (f) of this section), that such incapacity is likely to be permanent, and that such member should be retired. (2)a. Upon retirement for ordinary disability on or after October 4, 1991 and before January 9, 1994, a member shall be entitled to receive a retirement allowance equal to 2.75 percent of 90 percent of the member's average final compensation multiplied by years of creditable service, which amount shall be paid yearly in monthly installments, provided such retirement allowance exceeds 30 percent of the member's average final compensation; otherwise, 30 percent of the member's . average final compensation shall be paid yearly in monthly installments. b. Upon retirement for ordinary disability on or after January 9, 1994, a member shall be entitled to receive a retirement allowance equal to 2.75 percent of 90 percent of the member's average final compensation multiplied by the first 15 years of creditable service. Creditable service of such member in excess of 15 years shall be multiplied by three percent of 90 percent of the member's average final compensation times years of creditable service, which amount shall be pair' yearly in monthly installments, provided such retiremc—t allowance is at leas; J percent of the member's average final compensa,:u, otherwise 30 percent of the member's average final compensation shall be paid yearly in monthly installments. c. Upon retirement for ordinary disability on or after October 1, 1998, a member shall be entitled to receive a retirement alto. ance equal to three percent of 90 percent of the member's average °'nal ou ,,,sensation multiplied by the first 15 years of creditable-ervice. Creditable service of such member in excess d 15 years shall be multiplied by 3'/ percent of 90 percent of the member's average final compensation tines years of creditable service which amount shall be paid yearly in monthly installments, provided such retirement allowance is at least 30 City of Mia nit Page 7 of 21 File rd. 0-01091 (Version: 1) Printed On: 9/10/2010 File Number: 10-01091 percent of the member's average final compensation, otherwise 30 percent of the member's average final compensation shall be paid yearly in monthly installments. d. For those members who retire effective on or after December 31, 1999, the retirement allowance shall be payable for life, except that in the event the member dies before such allowance has been received for a period of ten years, the member's beneficiary or beneficiaries shall be paid the same allowance for the remainder of the ten-year period. (3)A member entitled to receiv-- an ordinary disability retirement allowance shall not be eligible for a return of contributions as provided in section 40-212(j) for optional allowances as provided in section 40-212(m), nor for participation in the DROP. (4)A DROP participant shall not be entitled to receive an ordinary disability retirement. (g)Accidental or service -incurred disability retirement. (1) Any member in service who, prior to attaining the age of 60, has been totally and permanently incapacitated for duty as the natural and proximate result of an accident occurring while in the actual performance of duty at some definite time and place, shall be retired for accidentally incurred disability; provided that: a. Such incapacity for duty has been total, permanent and continuous from a time prior to the member attaining the age of 60; b. The physician retained by the board, after a medical examination of such member, shall certify in writing that the member is mentally or physically totally incapacitated in accordance with the definition of permanent total disability; c. The board shall concur with the report of the physician employed by the board; and d. The physical condition of the member shall be subject to a review by the physician retained by the board, at the request of the board, as often as the board shall deem it advisable. (2) A member may be considered totally and permanently disabled for further performance of duty for the pw Nose of this section when said member is unable, due to an accident, illness or injury incurred in the line of duty, to perform within the member's classification. (3) a. Any condition or impairment of health caused by tuberculosis, heart disease or hyperte, pion, on the part of a member, which condit+or, res .Its in total and penna, ,;;,it incapacitation for duty, shall be presumed to ha._:, been accidental and suffered in the line of duty unless the contrary be shown by competent evidence; provided, however, that any such member shall have successfully passed a physical examination upon a: itering into service as a firefighter or police officer, which examination failed to reveal any evidence of any such City of Miami Page 8 of 21 File Id: 10-01091 (Version:.) Pi llrted On: 9110/2010 File Number: 10-01091 condition. b. Nothing herein shall be construed to extend or otherwise affect the provisions of F.S. ch. 440 pertaining to workers' compensation. (4) When deciding whether to grant an accidental or service -incurred disability retirement, the board shall obtain any and all available information, including, but not limited to, medical reports which the board deems necessary in order to assist the board in arriving at its decision. (5)a. Upon retirement for accidental disability or se, vice -incurred disability, a member shall receive a pension which shall be equal to 662/3 percent of his average final compensation or 662/3 percent of his final compensation, whichever is greater. b. For those members who retire effective on or after December 31, 1999, upon retirement for accidental disability or service -incurred disability, a member shall receive a retirement allowance payable for life which shall be equal to 662/3 percent of the member's average final compensation or 662/3 percent of the member's final compensation, whichever is greater, except that in the event a member dies before such allowance has been received for a period of ten years, the member's beneficiary or beneficiaries shall be paid the same allowance for the remainder of the ten-year period. (6) A member entitled to receive an accidental or service -incurred disability retirement allowance shall not be eligible for a return of contributions as provided in subsection Q), for optional allowances as provided in subsection (m), nor for participation in the DROP. (7) In lieu of the benefits set forth in subsection (5) above, upon the death of any member who has received an accidental or service -incurred disability retirement, the spouse of said member who has been nominated and designated by the member as said member's beneficiary if eligible shall receive the payment of an amount equal to 40 percent of the member's monthly retirement allowance during the lifetime of said spouse, in accordance with subsection (n) of this division. (8) A DROP participant shall not be entitled to receive an accidental or service -incurred disability retirement. (h)Ordinary death benefit. (1) Upon receipt by the board of proper proofs of the death of a member in service who has three or more years of creditable service, which death is not the result of an accident in the actual per--)rmance of duty as defined in subsection (i) cf this section, there shell be pdi(a to such person, if any. as the member sh&il have nominated by written designation duly executed and tiled with the board, otherwise to the member's legal representative, a benefit equal to a lump -sum pd,iinent of 50 percent of the earnable compensation received by the member during the year immediately preceding the member's death. (2) For those members who retire effective on or after December 31, 1999, the member's beneficiary or beneficiaries shall be entitled to the benefits otherwisq City of Miami Page 9 of 21 File Id. 10-01091 (Mersion: 1) Printed On: 9/10/2010 File Number: 10-01091 payable to the member at early or normal retirement age for a period of ten years, should a member having at least ten years of creditable service die prior to retirement. Anything herein to the contrary, notwithstanding this provision, shall not be implemented as to police officer members unless and until there are "additional premium tax revenues" as defined in Section 185.35(1)(b), Fla. Stat., to the extent necessary to fund such benefit. (3) a. Notwithstanding any provision in this division to the contrary, in the event a member who has become eligible for service, early service or rule of 64 retirement but has not retired dies, the member shall be considered to have been retired on the date of death. Ifs such event occurs prior to October 1, 2010, the payment of 40 percent of the member's monthly retirement allowance shall be paid at the member's death to the member's spouse during the lifetime of such spouse or, at the option of such spouse, the spouse shall receive the sum of the deceased member's accumulated contributions to the date of death plus a benefit equal to a lump -sum payment of 50 percent of the earnable compensation received by the member during the year immediately preceding the member's death. If such event occurs on or after October 1, 2010, and the member has not elected an optional allowance in accordance with subsection (m), below, the member will be presumed to have elected Option 6(c) providing for payment of 40 percent of the member's monthly retirement allowance to the member's spouse during the lifetime of such spouse. b. In lieu of the benefits set forth in subsection (2) above, for those members who retire effective on or after December 31, 1999, in the event a member who has become eligible for service, or early service retirement but has no retired dies, the member shall be considered to have been retired on the date of death. Ifs such event occurs prior to October 1, 2010, the payment of 40 percent of the member's monthly retirement allowance shall be paid at the member's death to the member's spouse during the lifetime of such spouse or, at the option of such spouse the spouse shall receive the sum of the deceased member's accumulated contributions to the date of death plus a benefit equal to a lump -sum payment of 50 percent of the earnable compensation received b the member during the year immediately preceding the member's death. If such ev occurs on or after October 1, 2010, and the member has not elected an optional allowance in accordance with subsection (m), below, the member will be presumed to have elected Option 6(c) providing for payment of 40 percent of the member's rr-:-ithly retirement allowance to the member's spous< during the lifetime of -.,.h spouse, (4) If a retired member dies prior to having received 12 monthly retirement allowance payments and prior to any optional allowance elected by the member having become effective, there shall be paid to such person, if any, as the member shall have nominated by written desigr,atio, duly executed and filed with the board, otherwise, to the member'f legal , ,presentative, a lump -sum benefit equal to the sum of the 12 monthly retirement allowance payments to which the member would otheNvise have become entitled, less the payments the morriber received. (i) Accidental death benefit. (1) If the board shall decide that the death of a me,,iber in service was the result of an City of Miam, Page 10 of 21 Fileed. 10-01091 (Version: 1) Printed On: 9/10/2010 File Number: 10-01091 accident in the performance of duty and not caused by willful negligence on the part of the member, then there shall be paid an amount equal to one-half of the member's average final compensation, which amount shall be paid yearly in monthly installments, to the member's spouse, if he or she leaves a spouse, to continue until the death or remarriage of such spouse; or if there be no spouse, or if the spouse dies or remarries before the youngest child of such deceased member shall have attained the age of 18, then to his or her children under such age, if he or she leaves children, divided in such manner as the board in its discretion shall determine, to continue as a joint and survivorship pension for the benefit of the children under such age until every child dies or attains such age; or if there be no spouse or children under the age of 18 years living at the death of such member, then to his or her dependent father or dependent mother, as the board in its discretion shall direct, to continue for life; provided that if there be no such beneficiary, the amount which otherwise would have been paid as an ordinary death benefit shall be paid to the member's legal representative. Provided, however, in the event a member who retires effective on or after December 31, 1999, has at least ten years of creditable service dies prior to retirement, the member's beneficiary or beneficiaries shall be entitled to the benefits otherwise payable to the member at early or normal retirement age for a period of ten years. Anything herein to the contrary notwithstanding, this provision shall not be implemented as to police officer members unless and until there are "additional premium tax revenues" as defined in Section 185.35(1)(b), Fla. Stat., to the extent necessary to fund such benefit. (2) The board shall decide whether the death of a member in service was the result of an accident in the performance of duty and not caused by willful negligence on the part of the member in the following circumstances: a. Upon receipt of proper proofs of the death of a member in service indicating that such death was the natural and proximate result of an accident occurring at some definite time and place while the member was in the actual performance of duty; or b. Upon receipt of proper proofs of death of a member in service indicating that such death resulted from a condition or impairment of health caused by tuberculosis, hypertension or heart disease, which condition or impairment of health shall be presumed by the board to have been accidentally incurred in the line of duty unless the contrar • be shown by competent evidence; provided, that the deceased member sha -.ave successfully passed a physical examination upon entering into service as a firefighter or police officer, which examination failed to reveal any evidence of such condition. (3) Notwithstanding any other provision of this chapter to the contrary, the surviving spouse of any member killed in the line of duty shall not lose irvivor retirement he,nc-"L if the spouse remarries. The surviving spouse such deceased member whose benefit terminated because of remarriage shall have the benefit reinstated as of July 1, 1994, at an amount that would have been payable had such benefit not been terminated. (4) In the case of a DROP participant, there shall be no accidental death benefit. (j) Return of co,.tributions. Should a member cease to be a city einp.iyee, the member Cite of Miami Page 11 of 21 File Id. 10-01091 (Version. 1) Printed On: 9/10/2010 File Number. 10-01091 shall be paid on demand the sum of his or her accumulated contributions, with the following exceptions: (1) Any member who has been granted a retirement benefit shall not be entitled to a return of any accumulated contributions unless the member is eligible for the benefits of option 6.a as set forth in subsection (m) or unless the member is entitled to a return of excess contributions as a result of membership in the Miami city employees' retirement system as set forth in section 40-205(2). (2) In the event of the death of any member, there shall be no distribution of the member's accumulated contributions unless the member died in service. In such event, accumulated contributions shall be payable to such persons, if any, as the member shah have nominated by written designation duly executed and filed with the board, otherwise to the member's legal representative. The return of accumulated contributions pursuant to the provisions of this paragraph shall not be construed as foreclosing the right of any person to an ordinary death benefit or an accidental death benefit as hereinabove set forth. (3) a. This article applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this article, a distributee may elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. b. Definitions. 1. Direct rollover shall mean a payment by the plan to the eligible retirement plan specified by the distributee. 2. Distributee shall mean an employee or former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse. 3. Eligible retirement plan shall mean an individual retirement account described in section 408(a) of the Internal Revenue Code, an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403(a) of the Internal Re, -nue Code, or a qualified trust described in section 401(a) of the Internal %c\/enue Code, that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. 4. Eligible rollover Ostri. ition shall mean any distribution of all or any pertiun ni the balance to the c+z;clt of the distributee, except that an eligiblE rollover distribution does not include: any distribution that ;s one of a series of suhstantially equal periodic payments (not less frequon-Ll;, than annually) made f:n the life (or life expectancy) of the distributee or the ;Dint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Internal Revenue Code; and the portion of any di6tribution that is not included in gross income. City of Miand Page ]z of 21 File Id. 10-01091(Version: 1) Printed On: 9110/2010 File Number: 10-01091 (k) Limitation of disability benefits; reexamination of beneficiaries retired on account of disability. (1) Any member who is unable to perform within the member's classification may be assigned to any other job classification; provided, that the member consents to such assignment and further provided, that the member's salary in the new job class shall be no less than 100 percent of the job class from which the member was transferred. (2) If a former member who has received an accidental disability retirement is performing the duties of a police officer or firefighter, or is performing services which are substantially equivalent to duties that can be assigned within the employment classification from which the member was retired, the board shall have the authority to limit the retirement benefits of such member as hereinafter provided: If a former member who has received an accidental disability retirement is engaged in such gainful occupation, the former member's salary from said occupation when added to the sum which he or she is receiving on account of accidental disability retirement shall not exceed 100 percent of the current salary for the classification from which the member was retired. If the retirement benefit plus the salary exceeds 100 percent of the current classification salary, the retirement benefit shall be reduced by the amount in excess of 100 percent. The board may periodically require of former members receiving a disability pension, on a form approved by the board for such purpose, a statement of salary and type of employment. (3) Any former member who is receiving a disability retirement allowance shall be subject, prior to normal retirement age, to examination by a physician or physicians upon request by the board. Such examination may be conducted at the member's place of residence or at a place mutually agreed upon by the member and the board. Following such examination, the physician or physicians shall report to the board as to the continuance of the former member's total and permanent incapacity for duty. a. In the event the board finds that a disability beneficiary is no longer incapacitated for service within his or her former classification in accordance with requirements of the civil service rules and regulations, the board may require thC' the beneficiary be returned to the former classificaticr with all rights and ben6iiLs of such classification or, with the beneficiary's cui,6ent, to other classifications within the limits of his or her mental or physical capacities at a rate of compensation not less than 100 percent of the pay which he or she would be entitled to receive at the time of return to service for the classification occupied by the beneficiary prior to his or her incapacity. b. Should any disability bE.neficiaq refuse to submit to a medical examination upon ;,equest by the board, his or her retirement allowance may be discontinued unV1 wi+hdrawal of the refusal, and should the refusal con`.inug for one year, all right and to a retirement benefit may be revoked by the bc.a,d. If any beneficiary in receipt of a disability retirement allowance is found by the board, prior to normal retirement age, to be no longer incapacitated but is not restored to service as a member in the classification from which he or she was retired because of his or her own refusal to accept employment offered to him or City of Miami Page 13 of 21 Fne k 10-01091 (Version: 1) Printed On: 9110/2010 File Number: 10-01091 her, the beneficiary's disability retirement allowance shall be terminated. (1) Restoration of beneficiaries to membership. (1) Should a disability beneficiary be restored to or be in service at a compensation equal to or greater than his or her average final compensation at retirement, or should any other beneficiary be restored to service, the following shall apply: a. The retirement allowance of the beneficiary shall cease, he or she shall again become a member of the retirement system and regular contributions shall resume at the rate required by the retirement system; a, d b. The beneficiary shall be credited with all service as a member standing to his or her credit at the time of retirement, providing he or she returns, in such manner as shall be prescribed by the board, the amount of any accumulated contributions of money received upon retirement. (2) If a beneficiary is restored to membership on or after the attainment of age 50, he or she shall, on subsequent retirement, be credited with all service as a member subsequent to his or her last restoration to membership and shall receive a retirement allowance therefor as if he or she were a new entrant, and, in addition, the former beneficiary shall receive the retirement allowance which he or she was receiving immediately prior to his or her last restoration, but the total pension shall not exceed the proportion of average final compensation he or she would have received as a retirement allowance had he or she remained during the period of prior retirement. (3) Participation in the DROP shall not be considered restoration to service under subsection (1). (m)Optional allowances. City of Miami (1) Effective October 1, 2010, for members who retire or terminate employment with ten or more years of creditable service on or after that date, the normal form of benefit shall be a benefit payable for the lifetime of the member, and in the event the member dies within ten years following retirement, the same monthly benefit shall be paid to the member's designated beneficiary or beneficiaries for the remaining balance of such year period. Any member may elect to receive in lieu of the retirement allo�,aoce otherwise payable to him or her, the actuarial equivalent at that time of his or her retirement allowance in a reduced retirement allowance payable as follows; provided, that no election of an optional allowance shall be effective in case a beneficiary dies within ten days after the election of an option as provided in this section, and further provided that such a bene.'ciary shall be considered as a member in service at tht time of death, until t;ie ,iiot payment on account of any benefit become,, norniwiy due: Option 1: If the member dies beforQ receiving in payment of the member's retirement allowance, the value of N6 or her accumulated contributions at the time of retirement, the balance shall be paid to such person, if any, as the member shall have nominated by written designation duly executed and filed with the board, otherwise to the member's legal representative; or Page 14 of 21 File Id. 10-01091 (11ersion: h Printed On: 9/10/2010 File Number., 10-01099 Option 2: Upon the member's death, his or her reduced retirement allowance shall be continued through the life of, and paid to, such person as the member shall have nominated by written designation duly executed and filed with the board at the time of retirement; or Option 3: Upon the member's death, one-half of his or her reduced retirement allowance shall be continued throughout the life of, and paid to such person as the member shall have nominated by written designation duly executed and filed with the board at the time of retirement; or Option 4: Upon the member's death, some other benefit shall be payable; provided, that the total value of the allowance during the member's life and the succeeding benefit shall be computed to be of equivalent actuarial value to the allowance which he or she would receive without optional modification; and provided, that the benefit shall be approved by the board; or Option 5: If, as a result of an accidental injury incurred in the line of duty, the member shall have been so seriously injured that he or she is unable to execute and file a designation of an optional allowance, the board may, with the consent of the principal beneficiary, designate an option, and if such condition shall have delayed the application for retirement and the selection of an option, the board may waive the requirement as to the member's life for ten days after retirement date, and may declare such optional allowance irrevocably effective immediately upon the member's retirement; or Option 6: Any member upon service, early service, rule of 64 or rule of 68 retirement may elect to receive benefits in one of the following three forms, in lieu of the retirement allowance otherwise payable to the member: a. Such member may elect to withdraw the sum of his or her accumulated contributions credited as of the member's date of retirement, excluding all amounts picked up from the member's earnable compensation and credited to the COLA fund, and be paid a monthly service retirement allowance of one-half the amount to which he or she would otherwise be entitled; b. Such member may elect to receive his or her normal monthly service retirement allowance plus an additional five percent of such service retirement allowance; or c. Such member may direct the payment of a benefit of 40 percent of the member's monthly retirement allowance to be paid at the member's death to his or her spouse nominated and designated by him or her at the time of retirement, such benefit to be payable during the lifetime of such spouse; or d. For those membc. ,who retire effective on or after December 31 1999 u, ,J before October 1, 2010, such member[s) may elect to receive his or her normal monthly service retirement allowance payable for life; except that in the event the member dies before he or she has received such u:lowance for a period of ten years, the member's beneficiary or beneficiaries shall be paid the same allowance for the remainder of the ten-year period. (2) In the event a member v.lio retires prior to October 1, 2010 elects to receive a City of Miami Page 15 (f 21 File Id. 10-01091 (Version: 1) Printed On: 9110101C File Number: 10-01091 reduced retirement allowance under option 2, 3 or 4, and has nominated and designated his or her spouse at the time of retirement as the person to receive payment of the benefit upon the member's death, the total minimum value of the allowance during the member's life and the succeeding benefit shall be computed to be of equivalent actuarial value to the allowance which he or she would have received had the member chosen to have his or her retirement allowance paid under the provisions of option 6.c. (3) In no event shall any language contained herein be construed as authorizing or allowing any member the right or privilege to exercise more than one of options 1 through 6 enumerated at this subsection. (n) Changes in beneficiary after retirement. Any member of the retirement system who retires from service and thereafter desires to change a designated beneficiary may do so subject to the following qualifications: (1) At the time the change in beneficiary is to be made, evidence of good health must be supplied for both the member and the to -be -deleted beneficiary. (2) To the extent the to -be -substituted beneficiary is younger (older) than the to -be -deleted beneficiary, an actuarial adjustment shall be applied to reflect the expected longer (shorter) life expectancy of the to -be -substituted beneficiary. (o) Pension offset by other compensation benefit. Any periodic or lump -sum amounts which may be paid or payable under the provisions of any state worker's compensation or similar law to a member or to the dependents of a member on account of any disability or death, shall be offset against and payable in lieu of any benefits payable from funds provided by the city under the provisions of the retirement system on account of the same disability or death. (p) Deferred retirement option program. Effective October 1, 1995, there is hereby created the City Deferred Retirement Option Program (DROP) to be administered by the board of trustees. Only firefighters who have retired after reaching age 50 within ten years of creditable service or who have retired after reaching a combination of age plus years of creditable service equal to either 64 or 68 as applicable, and who elect to defer receipt of their retirement benefit into a DROP account shall be eligible to participate in the DROP. Effective upon the ratification of the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective bargaining agreement with the IAFF, the maximum participation in the Forward DROP for firefighters shall be 54 full months. Effective upon the ratiF°cation of the Memorandum of Un� ,-standing of May 8, 2008 amending Article 39 c' 'ne 2007-2010 collective bargaining agreement with the FOP, the maximum participation in the Forward DROP for police officers who elect Forward DROP or are currently in Forward DROP shall be 84 full months. (1) Election to participate in the DROP shall be -.lade by using forms and procedures prescribed by the board. (2) A firefighter's creditable service, accrued benefits and compensation calcLilation shall be frozen L -p -)n retirement. The amount of the monthly benefit ch -All be determined based on the creditable service, average final compensation, and retirement option selected in accordance with section (m) herein. Average final compensation shall be based on the single highest year preceding participation in the DROP. City of b:iam , Page 16 of 21 .tie W. 10-01091 (Version: 1) Printed On: 911012010 File Number. 90-09099 (3) Upon commencement of participation ' in the DROP, the participant's contribution and the city's contribution to the retirement trust for that participant shall cease as the participant will not earn further creditable service for pension purposes. (4) Effective upon the ratification of the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective bargaining agreement with the IAFF, the maximum participation in the Forward DROP for firefighters shall be 54 full months. Effective upon the ratification of the Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective barclaining agreement with the FOP, the maximum participation in the Forward DROP for police officers who elect Forward DROP or are currently in Forward DROP, shall be 84 full months. No payment shall be made to or for the benefit of a DROP participant beyond these periods. (5) For each person electing participation in the DROP, and individual DROP account shall be created. Payment shall be made by the retirement trust into the employee'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 receipt of pension benefits. (6) The board of trustees shall establish, by administrative rule, a series of investment vehicles which may be chosen by DROP participants. Any losses, charges, or expenses incurred by the participant in the participant's DROP account by virtue of the option selected by the participant or otherwise, shall not be made up by the City of Miami or the pension trust, but all of same shall be borne by the participant. (7) Upon termination of employment, a member may receive distribution from the DROP account in the following manner: a. Lump sum distribution (which may be used at the DROP participant's discretion to purchase an annuity). b. Periodic payments. C. Roll over of the balance to another qualified retirement plan, such as an I RA. A member may defer distribution until the latest date authorized by section 401(a)(9) of the Internal Revenue Code. (8) DROP participation shall not affect any other death or disability benefit provided to a firE`.ghter under federal law, state law, city ordinance, or .ny rights or benefits L; : ar any applicable collective bargaining agreerr ant. (9) If a DROP participant dies before the (TROP account balances are paid out in full, the person(s) duly so 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. (q) Modifvd Jeferred retirement option program. Effective upon approval by the city City of Miami Page 17 of 21 File Id: 10-01091(Vei sior: 1) Printed On: 9/10/2010 File Number 10-01091 commission of the F.O.P. and I.A.F.F. labor agreements for October 1, 1998, through September 30, 2001, the DROP of the retirement system shall consist of a Forward DROP and a BACDROP. Any member who has reached age 50 with ten years of creditable service, or who has attained a combination of age plus years of creditable service equal to either 64 or 68 as applicable, 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 single highest year preceding participation in the DROP, as the basis of calculating the DROP payment. Upon commencement of participation in the DROP, the participant's contribution and the city contribution to the retirement system for that participant shall cease as the participant will be earning no further service credit. The participant shall not acquire additional pension credit for the purposes of the pension plan but may continue city employment for up to a maximum as established in this Article. Effective upon the ratification of the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective bargaining agreement with the IAFF, the maximum participation in the Forward DROP for firefighters shall be 54 full months. Effective upon the ratification of the Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective bargaining agreement with the FOP, the maximum participation in the Forward DROP for police officers who elect Forward DROP or are currently in Forward DROP shall be 84 full months. (2) Maximum participation. Effective upon the ratification of the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective bargaining agreement with the IAFF, the maximum participation in the Forward DROP for firefighters shall be 54 full months. Effective upon the ratification of the Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective bargaining agreement with the FOP, the maximum participation in the Forward DROP for police officers who elect Forward DROP or are currently in Forward DROP shall be 84 full months. Once the maximum participation has been achieved, the participant must terminate employment. (3) Creation of individual account. For each person electing participation in the DROP, an individual account shall be created. (4) Earnings on DROP account. The board of truoLves of the retirement system 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 of Miami or the FIPO trust fund, but any such loss shall be borne by the participant only. Upon participatio,i in -'ie DROP, the participant shall make a selection of - le earnings program o,, ,irms provided by the board. All interest shall be GreujLed to the participant's DROP account. (5) C`s:ribution of DROP benefits. Upon conclusion of a pc-iod 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: City of Miami Page Il of 21 File Id: 10-01091 (Version: 1) Printed On: 9110126.10 File Number: 10-01091 a. Lump sum distribution; b. Periodic payments; C. Rollover of the balance to another qualified retirement plan. A participant may defer payment until the latest date authorized by Section 401(a)(9) of the Internal Revenue Code. (6) Disability. A DROP participant shall not be entitled to receive an ordinary or service disability retirement. (7) Death. In the case of the death of a DROP participant, there shall be no accidental death benefit for pension purposes. (8) Participation does not affect other disability benefit. 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. (9) Death of participant before account balances paid out in full. If a DROP participant dies before the DROP account balances are paid out in full, the person(s) duly so 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. (10) COLA participation. Eligibility for payments for cost of living adjustment (COLA) shall not commence until a member has actually separated from employment with the city. COLA service years shall be based upon creditable years of service in calculating the employee's pension. For the purpose of complying with Section H(3)(m) of the Amended Final Judgment in Gates, the employee's "date of retirement" shall be the date of actual termination of employment as an employee with the city and not the date of election to DROP. (11) Agreement binding. Any employee who enters into a DROP agreement shall be bound by the terms and conditions of that said agreement, except that firefighters who are members of the 48 -month DROP as of the date of the ratification of the Memorandum of Understanding of July 11, 2008 amending Article 4? of the 2007-2010 collective bargaining agreement with the IAFF, may extend :,-..3ir existing DROP agreements to a maximum of �, , months. Any member who elects to be a DROP participant in the future shall be bound by the specific terms of the participant's DROP agreement entered into at that time. (12) Forward DROP. Thedate of entry into the Forward DROP shall be the beginning of a pay period. Payment shall be ma -'3 by the retirement system into the participant's DROP account it an a.-,.:)unt equal to the regular monthly retirement benefit which the participant would have received had the parkipant separated from service and commenced the receipt of benefits from the system. The amount of the monthly benefit shall be determined based on the creditable service, average final compensation, and retirement option selected in accordance with subsection 40-203(m) 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 tee mi.,ate employment with the city. City ofh"am; Page 19 of 21 We Id: 10-01091 (Version.: 1) Printed On: 9110/2010 File Number: 10-01091 Election of a Forward Drop program precludes participation in a BACDROP program. (13) . An I.A.F.F. bargaining unit member may elect to BACDROP to ae (retirement 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 36 months. Effective upon the ratification of the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective bargaining agreement with the IAFF the maximum participation in the Forward DROP for firefighters shall be 54 full months. Effective upon the ratification of the Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective bargaining agreement with the FOP, the maximum participation in the Forward DROP for police officers shall be 84 full months. Upon ratification of the 2004-2005 F.O.P. labor agreement, an F.O.P. bargaining unit member may elect to BACDROP to a date (retirement date) no further back than the date of the member's retirement eligibility date, provided that the BACDROP period must be in 12 -month increments, beginning at the start of a pay period, not to exceed a total of 12 months. Participation in the BACDROP does not preclude participation in the Forward Drop program. Section 3. 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 4. This Ordinance shall become effective immediately after final reading and adoption thereof.{2} APPROVED AS TO F RM AND CORRECTNESS: JULIE O. BRU CITY ATTORNEY City of Mianti Page 20 of 21 File Id. 10-01091 (Version: .z) Printed On: 9110/2010 File Number: 10-01091 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 unchanged. Asterisks indicate omitted and unchanged material. {2} This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten (10) 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;; of 21 File Id. 10-01091 (Version: 1) Printed On: 9/10/2610