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HomeMy WebLinkAboutO-12941City of Miami Legislation Ordinance: 12941 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 07-01161 Final Action Date: 9/11/2007 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 FIRE FIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST," TO IMPLEMENT THE TERMS OF THE COLLECTIVE BARGAINING AGREEMENTS BETWEEN THE CITY OF MIAMI ("CITY") AND I.A.F.F. LOCAL 587 AND BETWEEN THE CITY AND FRATERNAL ORDER OF POLICE LODGE 20, BY AMENDING SECTION 40-202, ENTITLED "PAYBACKS FOR MEMBERSHIP CREDIT," AND SECTION 40-203, ENTITLED "BENEFITS;" AND BY CREATING A NEW SECTION 40-212, ENTITLED "DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS;" CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE, AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. WHEREAS, the City of Miami ("City") and the I.A.F.F., Local 587, collective bargaining agent for members of Local 587, have entered into collective bargaining agreements for the period from October 1, 2004 through September 30, 2007 and the period from October 1, 2007 through September 30, 2010; and WHEREAS, the City and the Fraternal Order of Police ("F.O.P.") Lodge Number 20, collective bargaining agent for members of Lodge Number 20, have entered into collective bargaining agreements for the period from October 1, 2005 through September 30, 2007 and the period from October 1, 2007 through September 30, 2010; and WHEREAS, the City Commission finds that it is appropriate to amend the City Fire Fighters' and Police Officers' Retirement Trust ("Trust") to implement a portion of the terms and conditions of the collective bargaining agreements; and WHEREAS, the City Commission finds that it is in the best interest of the City, its employees and its residents to amend on an emergency basis the Trust to implement the terms and conditions of the collective bargaining agreements; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated as if fully set forth in this Section. Section 2. Chapter 40/Article IV/Division 2 of the Code of the City of Miami, Florida, as amended ("City Code"), entitled "Personnel/Pension and Retirement Plan/City of Miami Fire Fighters' and Police Officers' Retirement Trust," is amended in the following particulars:{1} City of Miami Page 1 of 7 File Id: 07-01161 (Version: 11 Printed On: 4/7/2017 File Number: 07-01161 Enactment Number: 12941 "Chapter 40 PERSONNEL ARTICLE IV. PENSION AND RETIREMENT PLAN DIVISION 2. CITY OF MIAMI FIRE FIGHTERS' AND POLICE OFFICERS' RETIREMENT TRUST Sec. 40-202. Paybacks for membership credit. Members shall have the right to receive membership credit in the retirement system in accordance with the following provisions: (6) Creditable service years purchase from leave balance and tax qualified 457 Deferred Compensation Plans. a. Firefighter Members. 1. A retiring firefighter member, including I.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. tabor agrccmcnt, rctiring F.O.P. bargaining unit members may not purchase the years of-c-reditable service referenced in this section. The purchase of creditable service under this option subsection 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 purchased shall be the prorata actuarially determined present value based upon the employee's member'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 member'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 member's leave balances. Effective June 12, 2007, firefighter members and I.A.F.F. bargaining unit members, including those electing to participate in either the FORWARD DROP or BACDROP, may elect to transfer funds from their accounts in the Miami Firefighters' Relief and Pension Fund (175) to the trust to purchase the three years of creditable service referred to herein. Employees Members may purchase three whole creditable service years by a lump sum payment of cash to the trust or a tax qualified transfer of funds from a member's 457 Deferred Compensation Plan at City of Miami Page 2 of 7 File Id: 07-01161 (Version: 11 Printed On: 4/7/2017 File Number: 07-01161 Enactment Number: 12941 present value as actuarially determined for each individual member employee. In no case shall a firefighter member, including I.A.F.F. bargaining unit member, purchase more than three 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. 2. Effective October 1, 2007, the following provisions shall supersede the provisions of paragraph 6(a)(1) above, and govern the purchase of creditable service by firefighter members, including, but not limited to, I.A.F.F. bargaining unit members: A. A retiring firefighter member, including, I.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 up to three whole years of creditable service utilizing the member's available leave balances, a tax qualified transfer of funds to the trust from the member's 457 Deferred Compensation Plan at present value as actuarially determined for the individual retiring member, lump sum payment of cash to the trust, or funds transferred to the trust from the member's account with the Miami Firefighters' Relief & Pension Fund (175). B. A retiring firefighter member, including I.A.F.F. bargaining unit member, who participates in either the FORWARD DROP or BACDROP, may purchase up to three whole years of creditable service utilizing a tax qualified transfer of funds to the trust from the member's 457 Deferred Compensation Plan at present value as actuarially determined for the individual retiring member, a lump sum payment of cash to the trust, or funds transferred to the trust from the member's account with the Miami Firefighters' Relief & Pension Fund (175). C. The following provisions shall apply to all purchases of creditable service under paragraphs 6(a) 2(A) and 2(B) above: i. The purchase of creditable service shall be allowed only immediately prior to retirement. ii. The purchase of creditable service may not be utilized for eligibility for either service retirement, or rule of 64 retirement. Once the leave balances or the funds from the member's account with the Miami Firefighters' Relief & Pension Fund (175) or those from the member's 457 Deferred Compensation Plan 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 purchased shall be the prorata actuarially determined present value based upon the member's average final compensation used to determine the member's retirement benefit. The use of leave balances shall be available using after tax value of the member'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 member's leave balances. In no case shall a member purchase more than three 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. City of Miami Page 3 of 7 File Id: 07-01161 (Version: 11 Printed On: 4/7/2017 File Number: 07-01161 Enactment Number: 12941 b. Police Officer Members. 1. A police officer member, including F.O.P. bargaining unit member, who retires on or after April 26, 2007, and does not participate in the DROP and retires under service retirement or rule of 64 retirement, may purchase up to three whole years of creditable service utilizing the member's available leave balances, a tax qualified transfer of funds from the member's 457 Deferred Compensation Plan at present value as actuarially determined for the individual retiring member, or a lump sum cash payment. The purchase of creditable service under this subsection may not be utilized for eligibility for either service retirement or rule of 64 retirement. Once the leave balances and/or funds from the member's 457 Deferred Compensation Plan 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 purchased shall be the prorata actuarially determined present value based upon the member's average final compensation used to determine the member's retirement benefit. This benefit shall be available using after tax value of the member'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 member's leave balances. In no case shall a member purchase more than three 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. A police officer member, including F.O.P. bargaining unit member, shall only be allowed to purchase creditable service under this sub -section immediately prior to the member's retirement. 2. A police officer member, including F.O.P. bargaining unit member, who retires on or after April 26, 2007, and participates in the DROP may purchase up to three whole years of creditable service utilizing a tax qualified transfer of funds from a member's 457 Deferred Compensation Plan at present value as actuarially determined for the individual retiring member, or a lump sum cash payment. The purchase of creditable service under this subsection may not be utilized for eligibility for either service retirement or rule of 64 retirement. Once the funds from the member's 457 Deferred Compensation Plan 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. The cost of creditable service purchased shall be the prorata actuarially determined present value based upon the member's average final compensation used to determine the member's retirement benefit. In no case shall a member purchase more than three 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. A police officer member, including F.O.P. bargaining unit member, shall only be allowed to purchase creditable service under this sub -section immediately prior to the member's retirement, including entry into the DROP. City of Miami Page 4 of 7 File Id: 07-01161 (Version: 11 Printed On: 4/7/2017 File Number: 07-01161 Enactment Number: 12941 Sec. 40-203. Benefits. (c) Limitation on benefits. (1) Effective October 1, 1998, member retirement allowances shall not exceed 100 percent of the member's final average compensation for members retiring under service retirement or rule of 64 retirement, with the following exceptions: (I- A) Members whose retirement allowances, prior to October 1, 1998, who had already earned 100 percent or greater of the member's average final compensation shall continue to accrue pension benefits as outlined under section 40-203. (2 B) Members whose retirement allowance exceeds 100 percent of their average final compensation as of October 1, 1998, due to the multiplier change, shall be capped at the new percentage. (2) Effective June 12, 2007, firefighter member, including, but not limited to, I.A.F.F. bargaining unit member, retirement allowances shall not exceed 100 percent of the member's final average compensation for firefighter members and I.A.F.F. bargaining unit members retiring under service retirement or rule of 64 retirement. * Sec. 40-212. Direct Transfers of Eligible Rollover Distributions 1. Rollover Distributions. A. General. Notwithstanding any provision of the retirement system to the contrary that would otherwise limit a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. B. Definitions. (1) Eligible Rollover Distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated Beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code and the portion of any distribution that is not includible in gross income. Any portion of any distribution which would be includible in gross income will be an eligible rollover distribution if the distribution is made to an individual retirement account described in section 408(a), to an individual retirement annuity described in section 408(b) or to a qualified defined contribution plan described in section 401(a) or 403(a) that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is City of Miami Page 5 of 7 File Id: 07-01161 (Version: 11 Printed On: 4/7/2017 File Number: 07-01161 Enactment Number: 12941 includible in gross income and the portion of such distribution which is not so includible. (2) Eligible Retirement Plan: An eligible retirement plan is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403(a) of the Code, an eligible deferred compensation plan described in section 457(b) of the Code which is maintained by an eligible employer described in section 457(e)(1)(A) of the Code and which agrees to separately account for amounts transferred into such plan from this plan, an annuity contract described in section 403(b) of the Code, a qualified trust described in section 401(a) of the Code, that accepts the distributee's eligible rollover distribution, or any other retirement plan determined to be an eligible retirement plan under the Code as it may be amended from time to time. This definition shall apply in the case of an eligible rollover distribution to the surviving Spouse. Distributee: A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving Spouse is a distributee with regard to the interest of the Spouse. (4) Direct Rollover: A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. C. Plan Transfers into the fund. The retirement system will accept a direct transfer or rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution from an eligible retirement plan which is maintained by the City of Miami, solely for the purpose of purchasing creditable service as provided in section 40-202(6) herein. *1I Section 3. If any provision of this ordinance is for any reason held unconstitutional, inoperative or void, such holding shall not affect the remaining provisions of the ordinance. It shall be deemed to be the intent of the Commission of the City of Miami to pass this ordinance without such unconstitutional, inoperative or void provision and the remainder of this ordinance, after the exclusion of such provision, shall be deemed and held to be valid as if such provision had not been included herein. Section 4. 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 5. The requirements of reading this Ordinance on two separate days is dispensed with an affirmative vote of not less than four -fifths (4/5ths) of the members of the Commission. Section 6. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.{2} City of Miami Page 6 of 7 File Id: 07-01161 (Version: 11 Printed On: 4/7/2017 File Number: 07-01161 Enactment Number: 12941 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 7 of 7 File Id: 07-01161 (Version: 11 Printed On: 4/7/2017