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HomeMy WebLinkAboutLegislationircynt111111. ,1 City of Miami Legislation Ordinance City Hall 3500 Pan American Drive Miami, FL 33133 www.ci.miami.fl.us File Number: 05-00693 Final Action Date: (4/5THS VOTE) AN EMERGENCY 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 "PERSONNEL/PENSION AND RETIREMENT PLAN/CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST," TO PROVIDE THAT THE PROVISIONS OF THE CITY CODE ARE CONSISTENT WITH THE TERMS AND CONDITIONS OF CERTAIN COLLECTIVE BARGAINING AGREEMENTS; MORE PARTICULARLY BY AMENDING SECTIONS 40-202 (7) TO ELIMINATE THE ABILITY OF FRATERNAL ORDER OF POLICE ("FOP") MEMBERS TO PURCHASE CREDITABLE SERVICE YEARS UPON RETIREMENT, AND 40-203(13) TO SPECIFY THAT THE BENEFIT ACTUARIALLY CALCULATED DEFERRED RETIREMENT OPTION PROGRAM FOR F.O.P. BARGAINING UNIT EMPLOYEES IS REDUCED FROM THIRTY-SIX MONTHS TO TWELVE MONTHS; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Miami and the Fraternal Order of Police ("F.O.P."), Lodge 20, collective bargaining agent for members in Lodge 20, have agreed to (1) eliminate F.O.P. bargaining unit members capability to purchase three years of credible service, and (2) decrease the Benefit Actuarially Calculated Deferred Retirement Option Program ("BACDROP") from 36 months to 12 months; 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. Sections 40-202 and 40-203 of the Code of the City of Miami, Florida, as amended, are amended in the following particulars:{ 1 } * "Chapter 40 PERSONNEL * ARTICLE IV. PENSION AND RETIREMENT PLAN DIVISION 2. CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' City of Miami Page 1 of 4 Printed On: 7/19/2005 File Number: 05-00693 RETIREMENT TRUST Sec. 40-202. Paybacks for membership credit. (7) Creditable service years purchase from leave balance and tax qualified 457 Deferred Compensation Plans. A retiring 1.A.F.F. bargaining unit member who does not participate in the DROP and retires under service retirement, or rule of 64 retirement, may purchase from available leave balances whole years of creditable service up to a maximum of three years. Upon ratification of the 2004-2005 F.O.P. labor agreement, retiring F.O.P. bargaining unit members may not purchase the years of credible service referenced in this section. The purchase of creditable service under this option may not be utilized for eligibility for either service retirement, or rule of 64 retirement. Once the leave balances have been applied toward the purchase of whole years of creditable service, and the amount thereof actually paid to and received by the trust, the member may purchase the balance of the three years by a lump sum cash payment to the trust. Leave balances shall be determined in accordance with the applicable labor agreement and/or leave payoff practices. The cost of creditable service purchase shall be the prorata actuarially determined present value based upon the employee's average final compensation used to determine the member's retirement benefit. This benefit shall be available using after tax value of the employee's leave balance; if, in the future, the issue of income taxes is resolved, then it will be available using pre-tax value of the employee's leave balances. Employees may purchase three (3) whole creditable service years by a tax qualified transfer of funds from a member's 457 Deferred Compensation Plan at present value as actuarially determined for each individual employee. In no case shall a member purchase more than three (3) years of creditable service through any combination of the above provisions. No benefit provided under this subsection shall be effective unless and until full payment in accordance herewith is made. Sec. 40-203. Benefits. (a) Service retirement * (13) BACDROP. An I.A.F.F. bargaining member may elect to BACDROP to a date (retirement date) no further back than the date of the member's retirement eligibility date. The BACDROP period must be in 12 month increments, beginning at the start of a pay period, not to exceed 36 months. Upon ratification of the 2004-2005 F.O.P. labor agreement, an F.O.P. bargaining unit member may elect to BACDROP to a date (retirement date) no further back than the date of the member's retirement eligibility date, provided that the BACKDROP period must be in twelve (12) month City of Miami Page 2 of 4 Printed On: 7/19/2005 File Number: 05-00693 increments, beginning at the start of a pay period, not to exceed a total of twelve (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 system'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 system'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, pursuant to the member's length of participation in the BACDROP. Section 3. All ordinances or parts of ordinances insofar as they are inconsistent or in conflict with the provisions of this Ordinance are repealed. Section 4. 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 5, This Ordinance is declared to be an emergency measure on the grounds of urgent public need for the preservation of peace, health, safety, and property of the City of Miami, and upon the further grounds of the necessity to make the required and necessary payments to its employees and officers, payment of its debts, necessary and required purchases of goods and supplies, and to generally carry on the functions and duties of municipal affairs. Section B. The requirements of reading this Ordinance on two separate days is dispensed with by an affirmative vote of not less than four -fifths of the members of the Commission. Section 7. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.{2} APPROVED AS TO FORM AND CO' ' CTNESS: Footnotes: City of Miami Page 3 of 4 Printed On: 7/19/2005 File Number: 05-00693 {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 4 of 4 Printed On: 7/19/2005