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HomeMy WebLinkAboutLegislationCity of Miami Legislation Ordinance City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 12-01047 Final Action Date: (4/5 THS VOTE) AN EMERGENCY ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 40/ARTICLE IV/DIVISION 3, OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "PERSONNEL/PENSION AND RETIREMENT PLAN/CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST," TO PROVIDE FOR A BACKDROP BENEFIT OPTION AND A DESCRIPTION OF ITS APPLICABILITY; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. 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. 40-246. - Contributions. (a) Member contributions. (1 . Effective October 1, 2010, regular contributions of each member of the Plan shall be made each pay period at the rate of 13 percent of each member's earnable compensation. Effective the first full pay period following October 1, 2012. regular contributions of each member of the Plan shall be made each pay period at the rate of 10 City of Miami Page 1 of 4 File Id: 12-01047 (Version: 1) Printed On: 9/18/2012 File Number: 12-01047 percent of each member's earnable compensation * (b) City contributions. The city's annual fiscal. contribution to the Plan shall provide for the following: (1) noninvestment expenses of the Plan; (2) amortization of the unfunded liability of the Plan; and (3) normal costs of the Plan. (1) The city's contribution for noninvestment expenses of the Plan in any given fiscal year shall be determined by the same process the city uses for that fiscal year in determining the budget of the downtown development authority and the department of offstreet parking. (2) The city's contribution for the unfunded liability of the Plan shall be made in accordance with the final judgment, as amended, in the matter of Gates v. City of Miami, Case No. 77-9491, in the circuit court for the eleventh judicial circuit in and for Miami -Dade County, Florida, and in accordance with the following additional provisions: a. As of October 1, 20112008, the unfunded actuarial accrued liability shall be amortized as a level percentage of the projected payroll of active plan members. The unfunded actuarial accrued liability as of October 1, 20112008 shall be amortized by adding 2 years to eve the remaining years as of that date to fully amortizo each unfunded actuarial accrued liability base. As of October 1 20112008, benefit improvements for actives shall be amortized over 201-5 years. Benefit improvements for retirees shall be amortized over 15 years. Actuarial gains and losses shall be amortized over 20-15 years. Changes in actuarial assumptions and methods shall be amortized over 201-5 years. b. To the extent the actuarial liability plus normal cost is Tess than the actuarial asset value, all prior amortization bases are considered fully funded. Sec. 40-255 - Benefits (I) Deferred retirement option program (14) BACKDROP Option. A Backdrop benefit option shall be implemented on January 1, 2013, and shall replace the existing DROP program. Employees who have not attained normal retirement eligibility as of January 1, 2013, and all employees hired on or after that date, will be eliqible for the Backdrop option, but will not be eligible for the DROP. Employees who have attained normal retirement eligibility as of January 1, 2013 and are thus eligible to elect the forward DROP as of January 1, 2013, shall remain eligible to elect the forward DROP as it presently exists, and employees who are eligible to elect the forward DROP as of January 1, City of Miami Page 2 of 4 File Id: 12-01047 (Version: 11 Printed On: 9/18/2012 File Number: 12-01047 2013 who choose not to enter the forward DROP shall also remain eligible for the Backdrop. Any employee with accrued pension benefits vested prior to October 1, 2010 will remain eligible to exercise the existing DROP program option for those accrued benefits. An eligible employee who elects the Backdrop option shall receive a monthly benefit payable on the employee's actual retirement date (date of retirement and separation from City employment) based on the benefit the employee would have received if he/she had left City employment and retired on an earlier date after attaining normal retirement eligibility (the "Backdrop date"). In addition, an eligible employee who elects the Backdrop option will receive a lump sum payment equal to the accumulation of monthly retirement benefit payments he/she would have received during the period following the Backdrop date through the actual retirement date ("Backdrop period"), plus interest at the rate of 3% per year, compounded annually. An eligible employee may elect a minimum Backdrop period of one year and maximum Backdrop period of up to seven years. An eligible employee who elects the Backdrop option must select the normal form of benefit or an optional form of benefit in accordance with section 40-255(i) at the time of electing the Backdrop option. The employee's monthly benefit as well as the lump sum payment under the Backdrop option is based on the form of benefit selected. Employees are eligible to elect the Backdrop option after completing one year of creditable service following the normal retirement date. A Backdrop election must be made within ten years after becoming eligible for normal retirement. The maximum Backdrop period is seven years. Eligible employees who wish to elect the Backdrop option must provide written notification to the Department Director and the Department of Human Resources at least eight months prior to the employee's retirement date; provided a lesser notice period may be approved by the City Manager due to special circumstances. Employees are not required to elect the Backdrop option. All or a portion of the lump sum payment under the Backdrop option may be rolled over to an eligible retirement plan or IRA in accordance with federal law. f) If the Backdrop option is ever terminated, for any reason, the rights of all persons then in the DROP shall not be diminished or impaired. Additionally, if the Backdrop is ever terminated, all persons who are then eligible for the Backdrop option will still be eligible for a 7 year Backdrop. The board of trustees of shall develop operational rules for the implementation of this provision. (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 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 ofbenefit in effect on that date. Effective City of Miami Page 3 of 4 File Id: 12-01047 (Version: 11 Printed On: 9/18/2012 File Number: 12-01047 October 1, 2012, member retirement allowances shall not exceed the lesser of 80 percent of the member's average final compensation or an annual retirement allowance of $80,000.00 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 be Tess than the lesser of 100 percent of the member's average final compensation or the member's accrued benefit on September 30, 2012, based on the normal form of benefit in effect on that date. 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 is declared to be an emergency measure on the grounds of urgent and 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 4. The requirements of reading this Ordinance on two separate days is dispensed with an affirmative vote of not Tess than four -fifths (4/5ths) of the members of the Commission. Section 5. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.{2} APPROVED AS TO FORM AND CORRECTNESS: JULIE O. BRU 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 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 (10) 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 Mian:i Page 4 of 4 File. Id: 12-01047 (Version: 1) Printed On: 9/18/2012