HomeMy WebLinkAboutLegislation FR/SRFile Number: 10-01022
Final Action Date:
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER
40/ARTICLE IV/DIVISION 2, OF THE CODE OF THE CITY OF MIAMI, FLORIDA,
AS AMENDED, ENTITLED "CITY OF MIAMI FIREFIGHTERS' AND POLICE
OFFICERS' RETIREMENT TRUST", MORE PARTICULARLY BY AMENDING
SECTION 40-196, THEREBY INCREASING FIREFIGHTERS' MEMBER
CONTRIBUTIONS FROM NINE PERCENT TO TEN PERCENT; CONTAINING A
SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Article 43.11 (Pension Stabilization) of the 2007-2011 Collective Bargaining
Agreement ("CBA") between the City of Miami ("City") and the International Association of Firefighters,
Local 587 ("IAFF"), provides for a long term stabilization goal for the City's general fund contribution;
and
WHEREAS, said goal is to maintain the City's contribution at 37 percent or less of pensionable
payroll by September 30th of each year; and
WHEREAS, Article 43.11 of the above -referenced CBA provides for a one percent (1 %) increase
in firefighters' member contributions, from nine percent to ten percent, if the long term pension goal is
not met by September 30, 2010; and
WHEREAS, the actuaries for the City and City Firefighters' and Police Officers' Retirement Trust
("FIPO") Board determined that stabilization of the FIPO is not attainable as it relates to firefighters;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. 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
DIVISION 2. CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST
City of Miami Page 1 of 3 File Id. 10-01022 (Version: 1) Printed On: 9/10/2010
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Ordinance
File Number: 10-01022
Final Action Date:
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER
40/ARTICLE IV/DIVISION 2, OF THE CODE OF THE CITY OF MIAMI, FLORIDA,
AS AMENDED, ENTITLED "CITY OF MIAMI FIREFIGHTERS' AND POLICE
OFFICERS' RETIREMENT TRUST", MORE PARTICULARLY BY AMENDING
SECTION 40-196, THEREBY INCREASING FIREFIGHTERS' MEMBER
CONTRIBUTIONS FROM NINE PERCENT TO TEN PERCENT; CONTAINING A
SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Article 43.11 (Pension Stabilization) of the 2007-2011 Collective Bargaining
Agreement ("CBA") between the City of Miami ("City") and the International Association of Firefighters,
Local 587 ("IAFF"), provides for a long term stabilization goal for the City's general fund contribution;
and
WHEREAS, said goal is to maintain the City's contribution at 37 percent or less of pensionable
payroll by September 30th of each year; and
WHEREAS, Article 43.11 of the above -referenced CBA provides for a one percent (1 %) increase
in firefighters' member contributions, from nine percent to ten percent, if the long term pension goal is
not met by September 30, 2010; and
WHEREAS, the actuaries for the City and City Firefighters' and Police Officers' Retirement Trust
("FIPO") Board determined that stabilization of the FIPO is not attainable as it relates to firefighters;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. 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
DIVISION 2. CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST
City of Miami Page 1 of 3 File Id. 10-01022 (Version: 1) Printed On: 9/10/2010
File Number.' 10-01022
Sec. 40-196. Contributions.
(a) Member Contributions.
(3)(A) Effective the first full pay period following June 16, 2009, and thereafter, regular
contributions of each firefighter member of the retirement system shall be made at the rate of
eight percent of each firefighter member's earnable compensation.
(3)(B) Effective the first full pay period following June 16, 2009, should the firefighter
members contribution be less than eight percent, the difference between the eight percent and
the actual contribution shall be deducted from the firefighter member's paycheck and placed
into an individual contribution account (ICA), as part of the retirement system. ICA's shall be
established as allowed by IRS Code. Only if it is found that the IRS Code does not allow for an
individual account, the reduction in contribution shall be reflected in the member's paycheck.
(4)(A) Effective the first full pay period following October 1, 2009, and thereafter, regular
contributions of each firefighter member of the retirement system shall be made at the rate of
nine percent of each firefighter member's earnable compensation.
(4)(B) Effective the first full pay period following October 1, 2009, should the firefighter
member's contribution be less than nine percent, the difference between the nine percent and
the actual contribution shall be deducted from the firefighter member's paycheck and placed
into an individual contribution account (ICA), as part of the retirement system. ICA's shall be
established as allowed by IRS Code. If it is found that the IRS Code does not allow for an
individual account, the reduction in contribution shall be reflected in the member's paycheck.
(5)(A) Effective the first full pay period following October 1, 2010, and thereafter, regular
contributions of each firefighter member of the retirement system shall be made at the rate of
ten percent (10%) of each firefiahter member's earnable compensation.
(5)(B) Effective the first full pay period following October 1. 2010, should the firefighter
member's contribution be less than ten percent (10%), the difference between the ten percent
(10%) and the actual contribution shall be deducted from the firefighter member's paycheck
and placed into an individual contribution account (ICA), as part of the retirement system. ICA's
shall be established as allowed by IRS Code. If it is found that the IRS Code does not allow for
an individual account, the reduction in contribution shall be reflected in the member's paycheck.
{53jgj Individual Contribution Accounts.
(A) Earnings. Interest on ICA's shall be determined in the same manner as the COLA
transfer methodology. Interest shall be credited periodically to the ICA's as determined by the
City of Miami Page 2 of3 File Id. 10-01022 (Version: I) Printed On: 9/10/2010
File Number: 10-01022
retirement system board's actuary, but not less than once a year.
(B) Disbursements. Member contributions and earnings in ICA's shall be deemed 100
percent vested upon deposit. Upon the member's separation, ICA balances shall be disbursed
as provided under the IRS Code. Disbursement of ICA funds may only occur upon separation
or as mandated under the IRS Code.
Section 2. If any section, part of section, paragraph, clause, phrase or word of this Ordinance is
declared invalid, the remaining provisions of this Ordinance shall not be affected.
Section 3. This Ordinance shall become effective immediately upon its adoption and signature of
the Mayor. {2)
APPROVED AS TO FORM AND CORRECTNESS:
JULIE O. RU
CITY ATTORNEY
Footnotes:
{1) Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall
be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate
omitted and unchanged material.
{2} If the Mayor does not sign this Ordinance, it shall become effective at the end of ten calendar
days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become
effective immediately upon override of the veto by the City Commission.
City of Miami Page 3 of3 File Id: 10-01022 (Version: 1) Printed On: 9/1012010