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Legislation
Ordinance
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 12-01048 Final Action Date:
(4/5 THS 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 FOR A CHANGE IN SECTION 40-196
RELATED TO MEMBER CONTRIBUTION FOR POLICE OFFICERS HIRED
DURING CERTAIN TIME PERIODS AND TO PROVIDE FOR A CHANGE IN THE
ACTUARIAL FUNDING METHOD; FURTHER PROVIDING FORA 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 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
Sec. 40-196. - Contributions.
(a) Member contributions.
(7) Effective the first full pay period following October 1, 2012, the member contribution for police
officers hired prior to October 1, 2012 shall be ten percent of earnable compensation; and effective
September 30, 2014, the member contribution for police officers hired prior to October 1, 2012 shall be
seven percent of earnable compensation. The member contribution for police officers hired on or after
October 1, 2012 shall be three percent of earnable compensation greater than the member
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contribution for police officer members hired prior to October 1, 2012.
(b) City contributions. Effective October 1, 1993, the city's annual fiscal contribution to the retirement
system shall provide for the following: (1) noninvestment expenses of the retirement system; and (2)
required actuarial normal costs of the retirement system.
(2) The city's contribution to normal costs for the retirement system shall be determined by applying
the individual entry age actuarial funding method, as such method is defined by the American
Academy of Actuaries, to the projected liabilities of the system, using an assumed system payroll
growth rate of 3% and using an unfunded liability amortization period of 25 years, or such other
reasonable payroll growth rate and amortization period as agreed by the retirement system's actuary
and the city's actuary
The contribution shall be determined as of October 1 of
each year (based on the valuation payroll and the program provisions in effect at that time) for the
fiscal year beginning on the subsequent October 1, adjusted for interest for one year, based on the
actuarial assumptions.
Astties-
Sec. 40-203. Benefits.
* * * * *
(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
eligible 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,
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.
La.) 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
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File Number: 12-01048
accordance with section 40-203(m) 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.
(b1 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 Manaqer 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.
(d) 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.
* * *
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.
* *11
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 less 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:
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File Number: 12-01048
{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.
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