HomeMy WebLinkAboutLegislationCity of Miami
Legislation
"J Ordinance
File Number: 10-01093
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 ENTITLED "PERSONNEL/PENSION AND RETIREMENT
PLAN/CITY OF MIAMI GENEP 4L EMPLOYEES' AND SANITATION EMPLOYEES'
RETIREMENT TRUST", MORE PARTICULARLY BY AMENDING SECTIONS
40-241, 40-246 AND 40-255 MAKING 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 Miami General Employees, American
Federation of State, County and Municipal Employees, Local 1907, AFL-CIO and the Florida Public
Employees' Council 79, AFSCME, AFL-CIO, Local 871;
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 3 of the Code of the City of Miami, Florida, as amended,
is amended in the following particulars:{1}
"CHAPTER 40
'ERSONNEL
ARTICLE IV. PENSION AND RETIREMENT PLAN
DIVISION. 3. CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES'
RETIREMEN r TRUST
Sec. 40-241. Definitions.
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The following words and phrases as used in this division shall have the following meanings:
Average final compensation shall have a meaning dependent upon the date of hire and
the date of termination of service of the member. The two periods of time for which average
final compensation is determined are:
(a) For members who became employed before May 24, 1984, and whose active
membership in the Plan did not cease before May 23, 1985. In the case of such
members, average final compensation shall mean the highest compensation of
that member during any one year of membership service. The highest one year
of compensation shall not exceed the second highest year of compensation by
more than 15 percent excluding any difference due to longevity, anniversary and
negotiated cost of living increases. The term "year" shall be calculated using the
highest 12 months of compensation, but the months need not be consecutive.
(b) In the case of a member who becomes an employee on or after May 24, 1984 and
who retires or terminates employment with ten or more years of creditable
service prior to October 1, 2010, or for an employee whose service has
previously ended or who is not a member absent from service, but
recommences on or after May 24, 1984 who retires or terminates employment
with ten or more years of creditable service prior to October 1, 2010, average
final compensation shall mean the average annual compensation of the member
during the last two years of membership service, or the highest two years of
membership service, whichever is greater. In the case of the highest two years
of membership service, the years need not be consecutive. The term "year"
shall be calculated using the highest 12 months of compensation, but the
months need not be consecutive.
(c) Effective September 30, 2010, for members employed on that date who retire on or
after October 1, 2010, average final compensation shall mean: average of
highest 5 consecutive years of the last 10 years of service, to be phased in over
the next 3 years as follows: average final compensation for members who retire
on or after October 1, 2010 and on or before September 30, 2011 will be based
on the average of the highest three consecutive nears of membership service;
for members who retire on or after October 1, 2011 and on or before September
30, 2012, it will be based on the average of the highest four consecutive years
of membership service; and for members who retire on or after October 1, 2012,
the average of the highest five consecutive years of the last 10 years of
membership service. Provided, in no ev, it shall the average final compensation
of any member who is employed on Suu,ember 30, 2010 and retires on or after
October 1, 2010, be less than the member's average final compensation as of
the date of the plan change.
Normal retirement age shall mean age )5 for members employed on September 30, 1010 wl- ) have
attained age 55 by that date a, d men.,r1rs who retire or terminate emplovment with t€.n or mulr; years
of creditable se: vice prior to October 1, 2010. Normal retirement age snail mean the earlier of age 60
with ten years of creditable service or age 55 with thirty years of crcdiicble service for members who
have not attainoG aae 55 as of September 30, 2010 and all other r.,mbers who retire on or after
October 1, 2010.
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Sec. 40-246. Contributions.
(a) Member contributions.
(1) Regular contributions of each member of the Plan shall be made each pay period at
the rate of ten percent of each member's earnable compensation. Effective
October 1, 2010, Miami General Employees American Federation of State,
County, and Municipal Employees, Local 1907, AFL-CIO and Florida Public
Employees Council 79, AFSCME, AFL-CIO, Local 871 barga�ninq unit members'
regular contribution to the Plan shall be made each pay period at the rate of
thirteen percent of each member's earnable compensation. EffeGtiye QGtnhor
2�009; Ma,m,i Gen eFal-E a-P,leyees�AmeFinan -Federation c)f State, C� u �t,, and
isURi ip2l EMPIGYeTeS,LE)Gnrl 4907, AFL GIG aRaFIGFida D„hsliG €R;nleyees
GGUR it 79, AFAAS AFL Gig, LOGal 871 bargaiRiRg snit members' rreu1a
,
,
EMPIGY9GS, Lem -I-1-90-7, AGI _QQ and Florida D, blip CEMPIGpeGG CG moil 70
AScGrIVrIE, AFL GIG, -%nirt members' ro grlar—vnntribUtinn to
thePlan shell -be -rade -each- pay-pennd at Tate of tan peFGGnt of �nnh
membeF's eamable nmmponsatinn
Sec. 40-255. Benefits.
(a) Service retirement.
(1) A member in service may elect to retire on a service retirement upon the attainment
of retirement eligibility as defined in this section. An election to retire shall be
made upon a written application, prescribed by the board. Benefits shall be
effective on the date the application is approved in accordance with the
administrative rules adopted by the board.
(2) A member who retires or separates from employment with ten or moreeat rs of
service before October 1, 2010 shall be considered eligible for a service
yeti--�ment upon attaining the earliest of the following:
a. The completion of ten years of credited service and the attainment of
age 55; or,
b. Rule of 70 retirement. The completion of a combination of years of
creditable service plus attained ag, equaling 70 points. To be eligible for this
benefit, the member must :lave c.�l-,-pieted not less than ten years of creditable
service.
(3) The service re+;r. ment benefit for persons retiring after October 1, 1 q-.8, shall be
equal to three percent of the member's average final compensation multiplied by
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the number of years of creditable service through September 30, 2010.
Effective October 1 2010 the service retirement benefit for creditable service
on and after that date shall be equal to: for the first 15 years of creditable
service, two and one-fourth percent of the member's average final compensation
multiplied by the number of years of creditable service; for creditable service in
excess of 15 years but less than 20 years, two and one-half percent of the
member's averse final compensation multiplied by the number of years of
creditable service; and for creditable service in excess of 20 years, two and
three-fourths percent of the member's average final compensation multiplied by
the number of years of creditable service. The service retirement benefit shall
be based on a member's total creditable service and the benefit multiplier in
effect at the time the service is earned, multiplied by average final compensation
in effect at the time of retirement or separation from employment.whir.h emGYRt
shall be paid yearly in mrinthly instollmeltSf—�GF the iife C-4f.th—mZnT,-QRrvecIr. The
benefit nam shall be the benefit in effent nn the nota of senorotinn
(4) A member who retires on or after October 1, 2010 shall be considered eligible for a
service retirement upon attaining the earlier of the following:
a. Completion of ten years of creditable service and the attainment of age
60; or,
b. Completion of thirty years of creditable service and the attainment of age
55.
Any member eligible for a service retirement may choose any of the optional
allowances provided in subsection 40-255Q+).
Notwithstanding any other provision of this Plan, any member who is employed and
not participating in the DROP on September 29, 2010 may elect to receive his/her
accrued benefit as of that date, in accordance with the provisions of the Plan in effect
on that date, in lieu of any other benefits provided by the Plan. Such members who
elect to receive their accrued benefit as of September 30, 2010, at a date prior to the
normal retirement age provided in subsection (4) 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.
(b) Early service retirement.
(1) Any member who has 20 or more years of creditable service may elect to retire on a
retirement allowance which shall be the actuarial equivalent of the service
retirement allowance otherwise available to the mernjer upon the attainment of
the date the member is eligible for service retirement in accordance with
paragraph (a)(2) or (a)(4) move, as applicable at the date of early service
retirementage 55. Such eleci'on shall be made upon a written application
prescribed by the board. Bencfits shall be effective on the date the application is
approved in accordance with the administrative rules adopted by the board.
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(2) A member eligible for early service retirement may choose any of the optional
allowances provided for in subsection 40-255(1) of this Plan.
(3) A member who has elected to retire on an early service retirement shall not be
eligible to participate in DROP.
(c) Vested right to retirement.
(1) If a member who is not entitled to retire on either a service retirement or early
service retirement, ceases to be an employee for any reason other than death or
willful misconduct, the member may elect to continue as a member not in
service and retire prior to October 1, 2010 upon the subsequent attainment of
age 55, or upon attainment of ape 60 with ten or more years of creditable
service on or after October 1, 2010; provided:
a. That at the time the member ceased to be an employee, the member
had completed ten years of creditable service; and
b. That the member had not withdrawn his or her accumulated
contributions.
C. The retirement benefit shall be the same as a service retirement benefit.
(2) If a member who elects to become a member not in service subsequently elects to
withdraw his or her accumulated contributions, the member not in service shall
be paid the amount of his or her accumulated contributions at the time he or she
ceased to be an employee, plus regular interest.
(3) If a member not in service dies prior to retirement, his or her designated beneficiary
shall be paid the amount of his or her accumulated contributions at the time the
member ceased to be an employee, plus regular interest to the date of the
member's death.
(4) If a member elects a vested right to retirement under any city retirement program
and thereafter again becomes an employee more than three years after
separation, the member shall be eligible, before October 1, 2010, to combine
prior and new service for the purpose ` Rule of Seventy (70) retirement, but
prior service shall be paid at the beneilL rate in effect when vested rights were
elected. If the member is separated for less than three years, all service will be
combined for benefit calculation purposes. The member shall again be an active
member of the Plan on the date employment re -commences and the member
shall make regular contributions to the Plan at the rate prescribed by ordinance.
Such member st• ill be entitled to accrue retirement benefits as if the i -ember
were a ,ew ei to nt upon the date of subsequent employmer `, except as the
right to combine service as set forth in this par&graph and, in addition, shall be
entitled to receive a retirement benefit for his or her prior employment as
provided in this paragraph A second period of vosJng shall not be required and
the member shall be eligible for all rights available to vested employees. This
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provision shall also be applied to reemployed retired members, who have been
retired for more than three years.
(5) A member may choose any of the optional allowances provided for in subsection 40
255ai) of this Plan at the time the vested retirement allowance commences.
(6) A member not in service shall not be eligible to participate in DROP.
(d) Ordinary disability retirement.
(1) Any vested member of the Plan who becomes permanently and totally incapacitated
for further performance of duty with the city from a cause other than the
performance of duty shall be eligible for an ordinary disability retirement.
(2) A member shall be deemed disabled for the purposes of this section if they are
permanently and totally unable to engage in any useful and efficient service
within the city workforce due to a physical or mental impairment.
(3) No member may receive an ordinary disability retirement on the basis of a
pre-existing medical condition, unless the disability would have occurred
regardless of that pre-existing condition. The board, as part of the disability
review process, shall determine whether a vacant position exists within the city's
workforce, consistent with the member's training, skill and medical limitations. If
the member is capable of performing any such vacant position and the member
refuses the assignment, that refusal shall be grounds for denial of an ordinary
disability retirement. Nothing in this section shall require the city to create a job
where none presently exists or to accept an employee who lacks the training or
skills necessary to perform any such vacant position.
(4) Benefits under this section shall commence on the date disability is determined to
exist by the board and shall continue for the life of the member. Benefits shall be
paid monthly and the member shall not be eligible for a return of accumulated
contributions or for any survivorship or other payment option provided under this
Plan.
(5) The procedure for determining disability shall be as set forth in this Plan for the
determination of service -incurred disability.
(6) The br -.rd of trustees shall have the continuing right to requi- disabled members to
suumit to a medical examination when the board has reason to believe that the
disabled member is committing a fraud on the fund.
(7) Benefits payable under this section shall be the greater of 90 percent of the product
of three percent multiplied by the number of years of credited service; or 30
percent of the member's average fr al compensation.
(8) Upon finding t;)at a member is no longer disabled as defined in this Plan, ordinary
disability benefits shall cease, and the member shall be eligible for a regular
service re'L:rument as if he had retired on the date his disab;;'Ity, retirement
benefits commenced.
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(9) A DROP member shall not be entitled to receive an ordinary disability retirement.
(e) Accidental disability retirement -Job injury.
(1) A member shall be disabled under the terms of this section if the member has
suffered an injury or illness arising out of performance of service for the city and
which renders the member permanently and totally disabled for useful and
efficient service with the city.
(2) A member shall be deemed permanently and totally disabled when he or she is
totally unable to engage in any useful and efficient service within the city due to
a physical or mental impairment which is the natural and proximate result of an
accident, injury or illness which occurred while in the actual performance of duty;
provided, however, that said accident was without gross negligence on the part
of the member.
(3) A member shall be eligible for 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.
(4) Upon receipt of the report of the board's physician(s), the board of trustees shall
schedule a public hearing at which time the board shall review all medical
reports, together with such documentary evidence as the applicant may wish to
submit. The board shall conduct a preliminary determination as to whether the
member is permanently and totally disabled based upon the written
documentation pre—nted. If the board does not grant the application baFon
the written docurr,�,,,ation, it shall inform the applicant in writing of the r-G'ons
for the denial of the application. The member may, within 30 days of receipt of
the board's preliminary denial, request a full evidentiary hearing before the
board. Said hearing will be conducted consistent with the principles of due
process and the rules of evidence generally applicable to administrative
proceedings shall apply. The board shall havE the cower to issue subpoenas
compelling the attendance of witnesses. 'fit sai,: ;•,earing, the applicant may
present such oral and written evidence as the applicant deems necessary to
establish its burden of proof The board may appoint special counsel as an
advocate to cross-examine :•-r nesses and to offer argument in opposition to the
application. The attorney for the board shall not serve both as advocate and as
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advisor to the board in the same proceeding. The applicant and the board shall
have the right to examine and cross-examine all witnesses. The decision of the
board shall be based solely upon the evidence presented and the law applicable
to this Plan. Following the conclusion of the hearing, the board shall render an
opinion in writing setting forth the reasons for the grant or denial of the benefit.
(5) The board may prescribe rules of procedure to implement the provisions of this Plan
relating to the conduct of disability hearings.
(6) No applicant for an 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 section (f) below, a
member who is granted accidental disability retirement shall receive a benefit
equal to 662/3 percent of the member's average final compensation or 662/3 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 who 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.
(9) The board of trustees shall have the continuing right to require disabled members to
submit to a medical examination when the board has reason to believe that the
disabled member is no longer entitled to receive benefits from the fund. If the
examination reveals the member is no longer entitled to receive disability
benefits, the benefits shall cease and, if vested, the member will be eligible for a
regular service retirement as if he had retired on the date his disability retirement
benefits commenced. The board has discretion to exercise this power as the
circumstances warrant.
(10) Any benefits received from this Plan i all be reduced by the amount of workers'
compensation indemnity benefits received by the member to the extent that the
sum of the worker's compensation benefits and the benefits received under this
Plan exceeds the average monthly compensation of the member at the time of
disability. The board shall, by uniform rule, prescribe a procedure for treatment
of lump sum w; rkers' compensation indemnity payments as if they i ad been
receiv( J on a clonthly basis.
(f) Service -incurred disability retirement -Heart disease, .hypertension, tuberculosis.
(1) Any member who becomes totally and permanently incapacitated for duty as a
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result of heart disease, hypertension or tuberculosis, shall be presumed to have
a service -incurred disability 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.
(2) A DROP participant shall not be entitled to receive a service incurred disability
retirement.
(g) Ordinary death benefit; post-retirement death benefits.
(1) If a member in service who has completed three or more years of creditable service,
whether or not the member is eligible for normal or early retirement, dies from a
nonduty related cause, a lump sum benefit equal to 50 percent of the member's
earnable compensation for the year immediately preceding death shall be paid,
together with the return of the member's accumulated contributions plus interest.
If the member has completed less than three years of credited service at the
time of death, there shall be a return of contributions with interest only. The
benefit shall be paid to any person nominated in writing by the member. In the
absence of a written nomination, or if the person nominated is deceased or
cannot otherwise be located, the member's estate shall be deemed the
nominated beneficiary.
A member in service on October 1, 2010 who is eligible for any form of early or
normal retirement under the terms of this Plan dies prior to retirement from a
nonduty related cause, the member shall be treated as if he or she had retired
on the date preceding death. The member's spouse shall have the option to
receive:
a. Forty percent of the member's monthly retirement allowance which would
have been payable at normal retirement date, without actuarial reduction
t wether with 50 percent of the member's compensation} ';i the year immediately
p,eceding the member's death; and
b. In the event the monthly retirement allowance provided for in
subparagraph (a) above is chosen, and the member has served as city
manager, assistant city manager, city clerk, assistant city clerk, executive
secretary of the civil service boar, , city physician, city attorney, assistant director
of the law department, (r as dh vutor or assistant director of any department c,
office established by the City Charter, or by ordinance establis ied by the City
Charter, fer a combined period of at least three years prior to May 23, 1985, an
additions' one percent of the member's final average fina; compensation
multiplied by the number of years of service in that position, up to a maximum of
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ten years shall be paid to the surviving spouse.
C. A return of the member's accumulated contributions, with accumulated
interest together with 50 percent of the member's compensation in the year
immediately preceding the member's death. This benefit is payable on behalf of
any member, whether or not there is a surviving spouse. In the absence of a
surviving spouse, the benefit will be paid to the person designated in writing to
the board by the member, or if no such designation exists or the designated
beneficiary has predeceased the member, then the benefit will be payable to the
member's estate.; or, in the case of a surviving spouse.
The payments under subsections (a) and (b) shall be paid yearly in monthly
installments.
If a retired member dies prior to receiving 12 monthly retirement payments and prior
to the effective date of any optional allowance permitted by this Plan, there shall
be a benefit payable in a lump sum equal to the unpaid difference of 12 monthly
payments. This benefit may be paid to any person nominated in writing by the
member. In the absence of a nomination, or if the person nominated has died or
is otherwise unavailable, the member's estate shall be deemed the nominated
beneficiary.
A member in service who is eligible for any form of early or normal
retirement under the terms of this Plan dies prior to retirement and on or after
October 1, 2010 from a nonduty related cause, the member shall be treated as if
he or she had retired on the date preceding death. If such member is married
at the time of death and has not elected an optional allowance in accordance
with subsection (i), below, the member will be presumed to have elected Option
6c, providing for payment of 40 percent of the member's monthly retirement
allowance to the member's spouse durino the lifetime of such soouse.
(h) Service -incurred death benefit. If a member in service dies from a cause arising in the
line of duty, other than the gross negligence of the member, there shall be a
service -incurred death benefit equal to one-half of the member's average final
compensation, which shall be paid yearly in monthly installments, together with the
member's accumulated contributions plus interest, which shall be payable in a single
sum. This benefit shall only be paid to the following persons in the order set forth below:
(1) To the spouse of the ii,ember until the death of the spouse;
(2) If there is no spouse or if the spouse dies before the youngest child of the deceased
member has attained the age of 18, then to the children of the member under
the age of 18 in equal shares. As each child reaches the age of 18, the shares
of the remaining children shall be adjusted eccordi, gly;
(3) If there are no spouse or children under the age of 18 years living at the time of the
member's death, then payment may be made to the dependent father o-
dependent mother for life The board shall determine, by uniform rule, proof
necessary to establish dependency. If both the dependent father and mother are
living, the benefit shall be shared equally. Upon the death of one, the living
dependent parent shall receive the entire benefit. If there is no spouse,
dependent child or dependent parent living at the time of the member's death,
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the member's estate shall receive an amount equal to 50 percent of the meber's
compensation for the year immediately preceding the member's death, together
with a return of accumulated contributions plus interest.
(i) Return of contributions.
(1) if a member ceases to be an employee, a member may demand a return of
accuulated contriutions. eceit of said contributions shall constitute a full
discharge of all rigts under the Plan and any creditable service is waived.
(2) If a member has been g! anted a retirement benefit, the member shall not be eligible
to receive accumulated contributions unless provided for as an optional
allowance under the terms of this Plan or any other prior Plan of the city.
0) Normal form of benefit and optional allowances.
(1) Effective September 30, 2010, for members who retire on or after October 1. 2010,
the normal form of benefit shall be a life annuity. A member may receive
payment of retirement benefits under the Plan in accordance with the options set
forth in this section, that are actuarially equivalent to the normal form of benefit.
The Board, by rule, shall prescribe the method for selecting payment options
consistent with the provisions of this section.
(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. For members
who retire before October 1, 2010 and choose# this option ;6�ar, for a
surviving spouse, the reduction shall be ten percent of the member's benefit.,
and if—.# any person other than a surviving spouse is chosen as the beneficiary,
the reduction shall be based on the actuarially equivalent of the normal form of
benefits. For members who retire on or after October 1, 2010, 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 'signated beneficiary at the death of the
member. For members who retire uefore October 1, 2010 and choose# this
option ,�",8n for a surviving spouse, the reduction shall be two percent of the
member's benefit; and if -1# any person other than a surviving spouse is chosen
as the beneficiary, the reduction shall be based on the actuarially equivalent of
the normal form of benefiteum. For members who retire on or after October 1,
2010,_the reec _action shall be based on the actuarially equivalent sum.
Option 6a: A member may, in lieu of any other benefit from this Plan, receive a
return of contributions, excluding amou,its picked up from the member's
earnable compensation and credited to the COLA fund between June 23, 1985
and September 30, 1993. Under this option, the member shall also receive a
monthly service allowance equal to one-half of the amount to which the member
would have been entitled under this plan. This option has no survivorship
benefit.
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Option 6b: Life annuity. A member who retires on or before October 1, 2010
may receive the normal monthly service retirement allowance plus an additional
five percent payable for the life of the member, with no survivorship benefit. The
payment of this benefit shall be guaranteed for at least one year.
Option 6c: Surviving spouse annuity. A member who retires before October 1,
2010 may receive an unreduced retirement payment through the life of the
member and upon the member's death the surviving spouse shall receive forty
percent of the member's retirement allowance payable during the lifetime of the
spouse. Such a member who desires to le °ve a greater survivorship percentage
to a surviving spouse may elect Options 2 or 3. A member who retires on or
after October 1, 2010 may elect to receive an actuarially reduced retirement
payment for the life of the member and upon the member's death the surviving
spouse shall receive forty percent of the member's retirement allowance payable
during the lifetime of the spouse.
(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.
(1) 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 BACDROP. 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
that member shall cease as the member will be e-.,ing 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
48 months.
(2) Maximum participation. The ma)-imu, , period of participation in the DROP, is 48
months. Once the maxir-,um Fug -zipation has been achieved, the participant
must terminate employment.
(3) Creation of ir.1 vidual 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 rine, a series of investment vehicles which may be
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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. Pav-ient shall be made by the retirement plan into t"q
participant's DROP --=unt in an amount equal to the regular mc:.,`.ly
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 :inclusion of a period of
;participation in the DROP not to exceed the r,aximu, ,yet forth in subsection 2,
the participant shall terminate Pmployment with the city.
Election of a FORWARD Drop Frogram 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 ei,gil-Jity date. The BACDROP
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period must be in 12 -month increments, beginning at the start of a pay period,
not to exceed 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.
(11) DROP incentive program. Any member who is a DROP participant as of October
1, 2009, may elect to participate in the DROP incentive program by completing
the necessary election documentation no later than October 15, 2009. Effective
October 22, 2009 any member in DROP or eligible to retire, may participate in
the extended DROP incentive program by completing the necessary election
documentation no later than November 6, 2009. Participation in the DROP
incentive program and the extended DROP incentive program is as follows:
a. The DROP incentive program or extended DROP incentive program
participant may, upon separating city employment, elect to either receive:
1. A lump sum in the amount of $25,000.00, or
2. A lump sum in the amount of $7,200.00 and receive a 100 percent subsidy
of insurance for two years from date of separation. The insurance shall be
based on an HMO plan tier of employee plus one.
(m) Reemployment of retirees. Except as expressly provided herein, should any retiree be
reemployed by the city into a regular, permanent, full-time employment position as defined in
section 40-241, the benefits payable under this Plan shall be suspended during the period of
reemployment. Upon termination of the period of reemployment with the city, benefits shall be
automatically restored, as provided for in this Plan, on the first day of the month following the
+Prmination of reemployment. No additional vesting period shall be required. Effective
november 1, 2002, this section shall not apply to city _)mmission and mayoral assistants and
secretarial staff position, as described in Civil Service Rule 1, Sec. 1.2(a), authorized in the city
budget for the offices of the mayor and members of the city commission, or to any employment
other than with the city. Employees in the above job classifications may opt to continue
collecting their pensions during their reemployment, but they may not accrue any further
pension service credit. This secl:on shall not apply to retirees who enter into legal ag -ement
with the city either thro igh 'Ar -;'`,r. -n contracts or otherwise for services not defied ac
permanFnt employees of the city.
(n) Limitaiion on Benefits.
Effective September 30, 2010, for members who retire or separate from employment on or
after October 1, 2010, member retirement allowances shall not exceed the less6r of 100
percent of the member's fig al average compensation or an annual retirement aoov.ance of
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$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 subsection (n) 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 normal form of benefit in effect on that date.
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 FORM AND CORRECTNESS:
JULIE O. BRU
CITY ATTORN Y
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.
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