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HomeMy WebLinkAboutExhibitCITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT CONTRIBUTION STABILIZATION FUND TRUST By Ordinance , enacted on , the CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA (as Grantor), transferred, assigned and conveyed to the BOARD OF TRUSTEES (Trustee) the sum of dollars ($ ) to be held in trust for the purposes set forth herein. This Trust shall hereafter be known as the Firefighters' and Police Officers' Retirement Contribution Stabilization Fund Trust. WITNESSETH: The Grantor is desirous of creating the Firefighters' and Police Officers' Retirement Contribution Stabilization Fund Trust for the purposes and upon the terms and provisions hereinafter set forth. Accordingly, the Grantor transferred and delivered unto the Trustee the sum of dollars ($ ) and, in the future, such other assets as the Grantor (or other persons) is required to convey or may choose to convey. The Trustee shall hold and administer said properties, and all subsequently acquired properties (whether contributed by the Grantor or by another party), in trust, pursuant to the terms of this agreement as set forth below. This Trust shall be irrevocable, and may only be amended or terminated in accordance with the provisions herein. ARTICLE I DEFINITIONS Unless a different meaning is plainly required by the context, the following words and phrases as used in this Trust document shall have the meanings set forth below: City shall mean the City of Miami. Retirement System shall mean the City of Miami Firefighters' and Police Officers' Retirement Trust. Trust shall mean the City of Miami Firefighters' and Police Officers' Retirement Contribution Stabilization Fund Trust. Board or the Board of Trustees shall mean the board discussed in Article III below. Member or member in service shall mean an employee for whom contributions to the Retirement System are made as required by the City of Miami Code of Ordinances, Chapter 40, Division 2, City of Miami Firefighters' and Police Officers' Retirement Trust. 1 Valuation payroll shall mean the covered payroll of members in service of the Retirement System. ARTICLE II PURPOSE The purpose of the Trust is to assist in stabilizing the City's annual contributions to the City of Miami Firefighters' and Police Officers' Retirement Trust. All actions and interpretations of the Board of Trustees pursuant to this Trust shall be done for and with the purpose of assisting with the stabilization of the City's annual contributions to the Retirement System. ARTICLE III BOARD OF TRUSTEES A. Composition. The Board of Trustees of this Trust shall be comprised of: (1) the City Manager; (2) the Chief Financial Officer; and (3) the Director or Chief of Employee Relations. B. Term of office. The term of office for each Trustee shall be as long as each individual is employed in his or her respective position with the City. C. Fiduciary responsibility. The Board of Trustees shall exercise its fiduciary responsibility in accordance with the law. D. Conduct of Business. 1. The City Manager shall act as chair of the Board of Trustees. 2. The affirmative votes of two Trustees shall be necessary for any action taken by the Board. 3. The Board of Trustees shall meet at least quarterly. 4. The City Manager shall ensure that a record of all of proceedings of the Board of Trustees is maintained, which shall be open to public inspection in accordance with F.S. Ch. 119. Such records shall reflect a complete account of the actions taken by the Board. 2 5. Subject to any limitation contained in this Trust, the Ordinance establishing this Trust, and applicable trust law, the Board may from time to time establish such rules and regulations as are necessary for efficient administration and management of the Trust. 6. The Board of Trustees or the City may purchase fiduciary insurance in order to provide protection to the Trust against loss by reason of error or omission of the Trustees. 7. All expenses of administering this Trust shall be paid by the City of Miami, not this Trust. ARTICLE IV TRUST FUND; INVESTMENTS A. Nature of the Trust; Fiduciary Duties of Trustees. 1. The Board of Trustees shall hold the Trust to be applied in accordance with the provisions contained herein. All contributions made to the Trust by the City and all assets whatsoever of the Trust and any income derived therefrom, without distinction between principal and income, shall be held in a single fund. The Board of Trustees may, however, segregate or invest separately any portion of the Trust. 2. The Board of Trustees shall be the named fiduciary of the Trust. As named fiduciary, the Board shall hold, manage, control and safeguard the Trust solely in the interest of assisting with the stabilization of the City's required contribution to the Retirement System, as follows: (a) For the exclusive purpose of assisting with the stabilization of the City of Miami's required annual contributions to the Retirement System; (b) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; (c) By diversifying the investments of the Trust so as to minimize the risk of losses, unless under the circumstances it is clearly prudent not to do so; (d) In accordance with ordinances and other applicable law, documents and other instruments governing the Trust. 3. The attorney for the Board of Trustees shall be the City Attorney. B. Trust property. 3 1. Trust property shall consist of all cash, securities and other property, together with such other cash, securities and other property as the Board may at any time hold or acquire from the City as herein provided, and any income or interest derived therefrom. 2. The Board may buy, sell, convert, redeem, exchange, or otherwise dispose of Trust property at any public or private sale without notice or advertisement, for cash or upon credit with or without security, without obligation on the part of any person dealing with the Board to see the application of the process of or inquire into the validity, expedience or propriety of any such disposition, and may make, execute, acknowledge and deliver contracts, assignments, waivers, or other instruments. 3. The Board shall have the authority to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies and powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee or with depositories designated by the Board; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally, to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the Trust which the Board may deem to be in the best interest of the Trust to exercise. C. Investments. The Board shall have the power to invest the assets of the Trust in real or personal property, wherever situated. The Board shall invest and manage investment assets in accordance with an investment policy adopted and periodically revised by the Board. The investment policy shall comply with Section 112.661, Fla. Stat., including providing for a custodian, investment managers, and independent investment consultant. ARTICLE V CONTRIBUTIONS TO THE TRUST A. Beginning October 1, 2008, any time the City's contributions to normal costs fall below thirty seven percent (37%), the difference between the contributions to normal costs and thirty seven percent (37%) will be deposited into this Trust, forthwith. B. Payments to this Trust are not required for any fiscal year in which the funding levels of this Trust are equal to ten percent (10%) of the actuarial value of assets of the Retirement System. ARTICLE VI 4 DISTRIBUTIONS FROM THE TRUST Distribution shall be made from the Trust only to the Retirement System and solely as provided in this subsection. Trust property shall be distributed to the Retirement System whenever the City's annual contributions to the Retirement System exceed thirty-seven percent (37%) of valuation payroll, unless the City chooses to pay the annual contributions above thirty-seven percent (37%), or any portion thereof, in any particular fiscal year. Distributions from the Trust shall be made solely to supplement the City's contributions to the Retirement System, and the amount of such distributions in any fiscal year shall not exceed the difference between thirty-seven percent (37%) of valuation of payroll (or any amended amount as provided herein,) and the actual annual required City contribution to the Retirement System in excess of thirty-seven percent (37%) of valuation of payroll, (or any amended amount as provided herein.) (For example, if in a particular fiscal year the City is required to pay forty percent (40%) of valuation payroll to the Retirement System, the City shall pay a minimum of thirty-seven percent (37%) of valuation payroll, and a distribution in the amount of three percent (3%) of valuation payroll shall be made from the Trust to the Retirement System. If in that year the City chooses to pay thirty-nine percent (39%) of valuation payroll, then a distribution in the amount of one percent (1%) of valuation payroll shall be made from the Trust to the Retirement System. If, however, in a particular fiscal year the City is required to pay thirty-seven percent (37%) or less of valuation payroll, then no distribution shall be made from the Trust to the Retirement System, and the City shall pay that entire amount). In no event may the City receive a distribution from the Trust except as provided herein. No Trust property, or income or interest derived therefrom, may be used for any purpose except to satisfy the City's obligation to make contributions to the Retirement System as described above. ARTICLE VII SPENDTHRIFT/NON-ASSIGNMENT No interest in the principal or income of this Trust shall be anticipated, assigned or encumbered, or be subject to any creditor's claim or to legal process prior to its actual distribution by the Trustees. No person shall have the power to sell, assign, transfer, encumber, or in any other manner anticipate or dispose of any interest or potential interest in the Trust or the income produced thereby, prior to its actual distribution by the Trustees as provided herein. No party or person shall have any assignable interest in the Trust or in the income therefrom. Neither the Trust principal nor income shall be liable for the debts of any party or person. ARTICLE VIII IRREVOCABLE TRUST This Trust shall be irrevocable, provided however, it may be amended by mutual agreement through collective bargaining pursuant to Chapter 447, Part II, Fla. Stat. between the City of Miami and the Fraternal Order of Police (FOP), Lodge 20, for and as applicable to its bargaining unit members, or between the City of Miami and the 5 International Association of Firefighters (IAFF), Local 587 for and as applicable to its bargaining unit members. ARTICLE IX TERMINATION This Trust shall terminate upon termination of the Retirement System, and all the Retirement System's liabilities have been paid in full, if ever. If for any reason this Trust cannot remain in existence until the Retirement System terminates, this Trust shall remain in existence for 360 years. COUNTERPARTS This Stabilization Fund Agreement may be executed in three (3) or more counterparts, each of which shall constitute an original but all of which, when taken together, shall constitute one and the same agreement. IN WITNESS WHEREOF, this instrument is to be executed by the respective officials thereunto duly authorized, this the day and year above written. TRUSTEES: By: Pedro G. Hernandez, City Manager/Trustee By: Larry Spring, Chief Financial Officer /Trustee By: Hector Mirabile, Employee Relations Director/Trustee APPROVED AS TO FORM AND CORRECTNESS: By: Julie O. Bru, City Attorney ATTEST: C� By: Priscilla A. Thompson, City Clerk 6