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Home My WebLink AboutO-13344City of Miami Legislation Ordinance: 13344 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 12-01048 Final Action Date: 9/27/2012 (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 FOR A BACKDROP BENEFIT OPTION AND A DESCRIPTION OF ITS APPLICABILITY; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE, SUBJECT TO RATIFICATION BY THE MEMBERS OF THE FRATERNAL ORDER OF POLICE, WALTER E. HEADLEY, JR., MIAMI LODGE NO. 20 AND THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, AFL-CIO LOCAL 587, SUBJECT TO CONDITIONS. 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. City of Miami Page 1 of 4 File Id: 12-01048 (Version: 2) Printed On: 12/7/2017 File Number: 12-01048 Enactment Number: 13344 (7)(a) 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 contribution for police officer members hired prior to October 1, 2012. (7)(b) Effective the first full pay period following October 1, 2012, the member contribution for firefighters shall be ten percent of earnable compensation. On September 30, 2014, the member contribution for firefighters shall be seven percent of earnable compensation. The member contribution for firefighters hired on or after October 1, 2014, shall be ten percent of earnable compensation. (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-Gests 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 as of October 1, 2011, 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 actuarially calculated aggregate normat percentage rate to the valuation payroll (covered payroll of active participants). 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. The funding method will be the aggregatc actuarial cost method as such method is defined as of the date of the amended final judgment by the American Academy of Actuaries. Sec. 40-203. Benefits. (a) service retirement. (4) Notwithstanding any other provision of this retirement system, any participant who is employed and not participating in the DROP on September 30, 2010, may elect to receive his/her accrued benefit as of that date, determined in accordance with the provisions of the system in effect on September 29, 2010, and payable on the date and in the manner provided by the provisions of the System in effect on September 29, 2010. Such participants who elect to receive their accrued benefit as of September 30, 2010, at a date prior to the normal retirement age provided in subsection (3), shall be eligible to receive that portion of their retirement allowance based on creditable service on or after October 1, 2010, on the date and in the manner provided by the provisions of the system in effect on the earlier of retirement or separation from service. Any participant who is employed and not participating in the DROP on September 30, 2010 shall be eligible to elect the DROP for benefits accrued prior to that date, in accordance with the provisions of the System in effect on September 29, 2010. City of Miami Page 2 of 4 File Id: 12-01048 (Version: 2) Printed On: 12/7/2017 File Number: 12-01048 Enactment Number: 13344 (q) (14) BACKDROP option. A Backdrop benefit option shall be implemented on January 1, 2013. The Backdrop option shall replace the existing DROP program. Employees who have not attained normal retirement eligibility as of January 1, 2013 or were not vested by October 1, 2010, and all employees hired on or after January 1, 2013, will be eligible for the Backdrop option, but will not be eligible for the DROP. Anyone eligible for the forward DROP as of January 1, 2013, remains eligible for the forward DROP as it presently exists and anyone eligible for the forward DROP as of January 1, 2013 who chooses not to enter the forward DROP remains eligible for the Backdrop. (a) 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 40-203(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. (b) 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 will be able to revoke their Backdrop election one time, but within one month of their election. However, if an employee is granted a lesser notice period by the City Manager due to special circumstances, the employee will not be eligible for the one-time Backdrop election revocation. Employees are not required to elect the Backdrop option. (c) 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. The rollover of DROP funds into the Miami Firefighters' Relief & Pension Fund (175) shall be allowed if rollovers of this type are approved by the Miami Firefighters' Relief & Pension Fund (175) trustee board. (d) If the Backdrop option is ever terminated, for any reason, the rights of all persons then in City of Miami Page 3 of 4 File Id: 12-01048 (Version: 2) Printed On: 12/7/2017 File Number: 12-01048 Enactment Number: 13344 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. *II 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 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, subject to ratification of the 2012-2014 collective bargaining agreement between the City of Miami and by the members of the Fraternal Order of Police, Walter E. Headley, Jr., Miami Lodge No. 20 and the International Association of Firefighters, AFL-CIO Local 587.{2} Section 6. To the extent that the implementation of this emergency ordinance requires any additional action for compliance under Fla. Stat. Chapter 112 or Gates v. City of Miami, it is the intent that this ordinance have a retroactive effective date of September 27, 2012. 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, subject to ratification of the 2012-2014 collective bargaining agreement between the City of Miami and by the members of the Fraternal Order of Police, Walter E. Headley, Jr., Miami Lodge No. 20 and the International Association of Firefighters, AFL-CIO Local 587. 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 File Id: 12-01048 (Version: 2) Printed On: 12/7/2017