HomeMy WebLinkAboutO-13203Vop City of Miami
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Ordinance: 13203
File Number: 10-01093
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
Final Action Date: 9/27/2010
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 40,
ARTICLE IV, DIVISION 3 ENTITLED "PERSONNEL/PENSION AND RETIREMENT
PLAN/CITY OF MIAMI GENERAL 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 FORAN 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
PERSONNEL
ARTICLE IV. PENSION AND RETIREMENT PLAN
DIVISION. 3. CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES'
RETIREMENT TRUST
Sec. 40-241. Definitions.
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File Number: 10-01093
Enactment Number: 13203
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 twe 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 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 years 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 years of membership service; and
for members who retire on or after October 1, 2012, the average of the highest
five years of the last 10 years of membership service. Provided, in no event
shall the average final compensation of any member who is employed on
September 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 55 for members employed on September 30, 2010 who have
attained aae 55 by that date and members who retire or terminate emalovment with ten or more vears
of creditable service prior to October 1, 2010. Normal retirement age shall mean the earlier of age 60
with ten years of creditable service or age 55 with thirty years of creditable service for members who
have not attained age 55 as of September 30, 2010 and all other members who retire on or after
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October 1, 2010.
Sec. 40-246. Contributions.
(a) Member contributions.
Enactment Number: 13203
(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. reaular contributions of each member of the Plan shall be
made each pay period at the rate of thirteen percent of each member's
earnable compensation. EffeGtive rOGteber 1, 2009, Miarni General Employees
AmeriEan-rFederation of State, County, and MuniGipal Employees, L6 1
Eal r�07r,
ACI GIO and Florida Publincow c�er�il7 4FSGIVIE AFL_CI(1 LG�T
0 0 0
Fri 1 bargaining unit members' regi alar Gentrib ition to the Dian shall be made
members' y�ra� �ai-r�rra�r�rrraac
eaGh �orl at the roto of thirteen nernent of eanh member's earnable
p rate of carrra�c
GOMpensation.Effenti�ie OGtehber 11
2010, Warm Generalmployee��eFiGan
Federation of State, County, and M iniri�Employees, LE)GaI 1907, AFL Q()
and Florida P blip Employees GeunGil 790 4FSGI IE0 4CI _CIO, I E)Gal 871
bargaining unit members' ition to the Plan shell he merle eenh
nasi period at the rate of ten nernent of eenh members earnable nomnensation
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 more years of
service or who has attained eligibility for service retirement, before October 1,
2010 shall be considered eligible for a service retirement 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 age equaling 70 points. To be eligible for this
benefit, the member must have completed not less than ten years of creditable
service.
(3) The service retirement benefit for persons retiring after October 1, 1998, shall be
equal to three percent of the member's average final compensation multiplied
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Enactment Number: 13203
by 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 average 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.whiGh amount shall be paid dearly in monthly installments fur the
life of the member. Thehben�t paid shall be the hent in �ont on the date of
rrr�.�rzrr�rrrGTIT � Puia�Tarr-�mc� rrrr c
separation.
G�QTF'C'fvlT
(4) A member, other than a member who is eligible for service retirement pursuant to
subsection 2 above, who retires on or after October 1, 2010 shall be considered
eliaible for a service retirement uaon attainina the earlier of the followina:
a. Completion of ten years of creditable service and the attainment of
60; or,
b. Completion of thirty years of creditable service and the attainment of
age 55.
C. Rule of 80 retirement. The completion of a combination of years of
creditable service plus attained age equaling 80 points. To be eligible for this
benefit, the member must have completed not less than 10 years of creditable
service_
Any member eligible for a service retirement may choose any of the optional
allowances provided in subsection 40-2550+).
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. 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.
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File Number: 10-01093
Enactment Number: 13203
(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 member upon the attainment of
the date the member is eligible for service retirement in accordance with
paragraph (a)(2) or (a)(4) above, as applicable at the date of early service
retirementage 55. Such election 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 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 prior to October 1, 2010, the member may elect to
continue as a member not in service and retire upon the subsequent attainment
of age 55, or 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 on or after October 1, 2010, the member
may elect to continue as a member not in service and retire upon attainment of
age 60; 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
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File Number: 10-01093
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prior and new service for the purpose of Rule of Seventy (70) retirement, but
prior service shall be paid at the benefit 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 shall be entitled to accrue retirement benefits as if the
member were a new entrant upon the date of subsequent employment, except
as the right to combine service as set forth in this paragraph 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 vesting shall not be required
and the member shall be eligible for all rights available to vested employees.
This 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
40-255(j+) 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
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determination of service -incurred disability.
Enactment Number: 13203
(6) 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 committing a fraud on the fund.
(7) Benefits payable under this section shall be the greater of 90 percent of the
product of the benefit multiplier in effect at the time the service is earned three
peFGeet multiplied by the number of years of credited service; or 30 percent of
the member's average final compensation.
(8) Upon finding that 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 retirement as if he had retired on the date his disability retirement
benefits commenced.
(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
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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 presented. If the board does not grant the application based on
the written documentation, it shall inform the applicant in writing of the reasons
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 power to issue subpoenas
compelling the attendance of witnesses. At said hearing, 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 witnesses and to offer argument in opposition to the
application. The attorney for the board shall not serve both as advocate and as
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 66 2/3 percent of the member's average final compensation or 66 2/3
of the member's compensation in the year immediately preceding the member's
disability, whichever is greater. The benefit shall be paid yearly, in monthly
installments, for life of the member. Members receiving a benefit under this
section shall not be eligible for a return of contribution nor for optional
allowances provided in this Plan under subsections (h) and (i).
(8) Upon the death of a member 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
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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 shall 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 workers' compensation indemnity payments as if they had been
received on a monthly basis.
(f) Service -incurred disability retirement -Heart disease, hypertension, tuberculosis.
(1) Any member who becomes totally and permanently incapacitated for duty as a
result of heart disease, hypertension or tuberculosis, shall be presumed to have
a service -incurred disability 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
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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
together with 50 percent of the member's compensation in the year immediately
preceding 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 board, city physician, city attorney, assistant
director of the law department, or as director or assistant director of any
department or office established by the City Charter, or by ordinance
established by the City Charter, for a combined period of at least three years
prior to May 23, 1985, an additional one percent of the member's final average
final compensation multiplied by the number of years of service in that position,
up to a maximum of 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 during the lifetime of
such spouse.
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(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 member 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 accordingly;
(3) If there are no spouse or children under the age of 18 years Iving at the time of the
member's death, then payment may be made to the dependent father or
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 t time of the member's death, 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
acculated 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 granted 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.
(j) 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 chooself this option ic,�en for a
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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 designated beneficiary at the death of the
member. For members who retire before October 1, 2010 and choose# this
option is sen for a surviving spouse, the reduction shall be two percent of
the member's benefit; and if -.-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 6a: A member may, in lieu of any other benefit from this Plan, receive a
return of contributions, excluding amounts 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.
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 leave 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.
(I) 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
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File Number: 10-01093
Enactment Number: 13203
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 for that member shall cease as the member will be earning no further
service credit. The member shall not acquire additional pension credit for the
purposes of the pension plan but may continue city employment for up to a
maximum of 48 months.
(2) Maximum participation. The maximum period of participation in the DROP, is 48
months. Once the maximum participation has been achieved, the participant
must terminate employment.
(3) Creation of individual account. For each general employee electing participation in
the DROP, an individual account shall be created.
(4) Earnings on DROP account. The board of trustees of the retirement plan shall
establish, by administrative rule, a series of investment vehicles which may be
chosen by participants in the DROP. Any losses incurred on account of the
option selected by the participant shall not be made up by the city or the GESE
trust fund, but any such loss shall be borne by the participant only. Upon
participation in the DROP, the member shall make a selection of the earnings
program on forms provided by the board. All interest shall be credited to the
member's DROP account.
(5) Distribution of DROP benefits. Upon conclusion of a period of participation in the
DROP not to exceed the maximum set forth in subsection 2, the participant
shall terminate employment. Upon termination of employment, a participant
may receive payment from the DROP account in the following manner:
a. Lump sum distribution; or
b. Periodic payments; or
C. Rollover of the balance to another qualified Retirement Plan, IRA, or an
Internal Revenue Code Section 457 Plan; or
d. An annuity.
A participant may defer payment until the latest date authorized by Section
401(a)(9) of the Internal Revenue Code.
(6) Drop participation shall not affect any other death or disability benefit provided to a
member under federal law, state law, city ordinance, or any rights or benefits
City of Miand Page 13 of 16 File Id. 10-01093 (Version: 2) Printed On: 8/9/2017
File Number: 10-01093
under any applicable collective bargaining agreement.
Enactment Number: 13203
(7) If a DROP participant dies before the DROP account balances are paid out in full,
the person(s) designated by such DROP participant shall receive such DROP
account balances in accordance with the DROP participant election in effect at
the time of death.
(8) Any employee who enters into a DROP agreement shall be bound by the terms
and conditions of that agreement.
(9) Forward DROP. The date of entry into the FORWARD DROP shall be the
beginning of a pay period. Payment shall be made by the retirement plan into
the participant's DROP account in an amount equal to the regular monthly
retirement benefit which the participant would have received had the participant
separated from service and commenced the receipt of benefits from the plan.
The amount of the monthly benefit shall be determined based on the creditable
service, average final compensation, and retirement option selected in
accordance with section 40-255 of this Code. Upon conclusion of a period of
participation in the DROP not to exceed the maximum set forth in subsection 2,
the participant shall terminate employment with the city.
Election of a FORWARD Drop Program precludes participation in a BACDROP
program.
(10) BACDROP. A general employee may elect to BACDROP to a date no further
back than the date of the member's retirement eligibility date. The BACDROP
period must be in 12 -month increments, beginning at the start of a pay period,
not to exceed 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
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File Number: 10-01093
Enactment Number: 13203
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
termination of reemployment. No additional vesting period shall be required. Effective
November 1, 2002, this section shall not apply to city commission 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 section shall not apply to retirees who enter into legal
agreement with the city either through written contracts or otherwise for services not defined
as full-time, permanent employees of the city.
(n) Limitation 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 lesser of 100
percent of the member's average final compensation or an annual retirement allowance of
$100,000.00 as of retirement or DROP entry based on the normal 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 average final
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}
Footnotes:
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File Number: 10-01093
Enactment Number: 13203
{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 Miand Page 16 of 16 File Id. 10-01093 (Version: 2) Printed On: 8/9/2017