HomeMy WebLinkAboutBack-Up DocumentsACRISURE®
June 5, 2024
CONFIDENTIAL
Ms. Erica T. Pascal -Darling
Finance Director
City of Miami
444 SW 2nd Avenue, 6th Floor
Miami, FL 33130
Re: Actuarial Study for EORT — Benefit Accrual for Current Elected Officers
Dear Erica:
The City has asked us to prepare an analysis of the cost to provide benefits under the
City of Miami Elected Officers' Retirement Trust (EORT) to current and future elected
officers, in accordance with a proposed plan amendment, as attached. Participation in
the EORT was frozen in 2009.
This analysis reflects:
■ Current officers as of June 2024
Preliminary results for the January 1, 2024 actuarial valuation as a benchmark
Amendment Benefit Provisions
The amendment provides for the following:
Elected officers in office on or after October 1, 2023 are eligible
For officers first elected after October 22, 2009 who are in office as of October 1,
2023:
- Seven years of service is required for benefit entitlement (the same as pre-
10/22/2009 provisions)
- The benefit formula is 50% of pay after seven years of service, with an
additional 5% of pay for each year in excess of seven, to a maximum of 100% of
pay (the same as pre-10/22/2009 provisions)
- Service prior to October 1, 2023 is not counted unless purchased by the
member. The member cost is 10% of compensation for each year of service
purchased, plus interest at an annual rate of 3% as determined by the plan
administrator.
- Officers in this category must make an irrevocable election to participate in the
EORT. Such officers will cease participation in the City's defined contribution
plan for elected officers.
• ACRISURE.COM •
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Phone: 412.394.9330 1 Fax: 412.394.9324
Ms. Erica T. Pascal -Darling
City of Miami
June 5, 2024
Page 2
For officers first elected after October 1, 2023:
- Participation is automatic
- The benefit formula is 50% of pay after seven years of service, with an
additional 5% of pay for each year in excess of seven, to a maximum of 100% of
pay
- Such officers will not be eligible for the City's defined contribution plan for
elected officers.
For officers first elected before October 22, 2009 who are in office as of October 1,
2023:
- Benefits will be calculated under the prior plan formula but reflect current
compensation and service
Note: Upon review of existing ordinance language in February 2020, the
City's Law Department concluded that the above benefit is provided under
existing EORT provisions.
- Participation in City's defined contribution plan for elected officers will continue.
The benefit is payable after service as an elected officer ends, as follows:
- Beginning at age 55 for 10 or more years of service as an elected officer
- Beginning at age 60 for service less than 10 years
The individuals affected are the five current Commissioners and the Mayor.
Commissioners Gabela and Pardo, who were first elected after October 1, 2023, will
automatically participate in the EORT.
Commissioners Reyes and King and Mayor Suarez will become new plan members
upon election to participate.
Commissioner Carollo was previously receiving monthly benefits from the EORT.
Those payments were suspended upon his return to office in November 2017, and
will resume upon completion of his final term in office. His benefit amount will be
recalculated to reflect current compensation and accumulated service, in accordance
with existing EORT provisions as interpreted by the Law Department.
Other individuals elected to Commissioner or Mayor in the future will become plan
members.
Commissioners for Districts 1 and 2 who were in office on October 1, 2023 were not
re-elected. Neither were in office for 7 years, which is the EORT's requirement for
benefit eligibility.
Cost Analysis - Assumptions
To illustrate the cost for the proposed amendment, we have calculated the impact on
preliminary results for the January 1, 2024 actuarial valuation for the EORT. These
preliminary results reflect December 31, 2023 asset information and contribution -
receivable information provided by the City, as well as participant status changes
during 2023.
ACRISURE.COM
Ms. Erica T. Pascal -Darling
City of Miami
June 5, 2024
Page 3
The actuarial assumptions and cost method used for this study are described in the
January 1, 2023 Actuarial Valuation Report for the plan. Prior plan provisions are
described in that report as well.
This study includes the following assumptions that have been used for prior valuations:
A Commissioner in his first term of office will complete a second term in office, in
order to attain eligibility for vesting (7 years of service is required)
Determination of normal cost and accrued liability for active participants is in
accordance with the Projected Unit Credit funding method
Additionally:
Each of the current officers who were in office before October 1, 2023 is assumed
elect participation in the EORT and purchase all available pre -October 1, 2023
service.
Compensation information for 2023, as provided by the City, has been used for the
projection of individual benefits.
No future salary increases are assumed.
We have examined three alternatives - 5, 10 and 15 years - for amortization of the
additional accrued liability resulting from the plan change. The statement of funding
assumptions does not include an amortization period for plan changes. The City can
choose a period it deems appropriate for budgeting of the additional contributions.
Exhibits
Our calculations are shown in detail on an attached six -page exhibit:
Page 1: Basic information for current elected officers
Page 2: Projection of individual benefits, purchase of service credit, and liability
amounts for additional benefits
Page 3: Additional first -year contribution under three amortization alternatives
• Page 4: Changes to the preliminary liability and cost results of the January 1, 2024
actuarial valuation, and a projection of the additional City contribution on behalf of
current officers through 2039 under the three amortization alternatives.
• Page 5: A 30-year contribution projection including future elected officers assumed
to succeed the current officers upon expiration of their respective terms. This
illustration assumes that each replacement officer will be age 52 when first elected,
male, receive $105,000 in annual compensation (or $131,000 if Mayor) with no
future increases, and serve two four-year terms. The resulting lifetime benefit
under these assumptions will be 55% of annual compensation, or $4,813 per month
($6,004 if Mayor) commencing at age 60.
Page 6: Summary of individual benefits, including amounts for current EORT
members
• ACRISURE.COM •
Ms. Erica T. Pascal -Darling
City of Miami
June 5, 2024
Page 4
Key Results
Key results are summarized as follows:
The present value of projected benefits at 1/1/2024 will increase by $4.8 million,
from $10.0 million to $14.8 million. (See exhibit pages 2 and 4.)
■ The member service purchase will reduce the additional liability by about $260,000.
(Exhibit page 2)
■ The estimated increase to the City contribution for 2024 ranges from $646,000 to
$949,000, depending on the amortization period used. The preliminary 2024 City
contribution is $483,000. (Exhibit pages 3 and 4)
■ The year -by -year projection of the additional contribution is generally dependent on
the amortization period. The contribution includes a normal cost component, which
drops off after the year in which each individual is assumed to leave office. (Exhibit
page 4)
■ The projected annual contribution for future officers, with six individuals assumed to
replace the current Commissioners and Mayor, ranges from $780,000 to $830,000.
(Exhibit page 5)
- This consists of normal cost for each individual, payable during the 8-year
assumed period in office. Under the cost method used for funding, these
amounts increase with interest each year and then reset when a new individual
is elected.
- Actual amounts will differ from our projection, depending on the ages and
compensation levels for future elected officers.
Additional Comments
Commissioners Gabela, Pardo, and King are currently in their first terms in office.
Consistent with prior actuarial valuations for the EORT, we have assumed that each
will complete a second term in office in order to have enough service for benefit
eligibility. If the proposed benefit changes are made and any does not win re-
election to a second term, then:
- For 2026, the Plan would experience an actuarial gain due to elimination of the
projected liability on behalf of Ms. King. For 2028 the Plan would experience an
actuarial gain due to elimination of the projected liability on behalf of either Mr.
Gabela or Mr. Pardo.
Actuarial experience gains or losses are amortized over 5 years under the
current funding method. The experience gains would reduce the City's
contribution for a five-year period, beginning with the first year out of office
for each.
Contributions that were made in anticipation of each becoming eligible for
benefits would also reduce the City's required contribution going forward.
- Although the proposed amendment does not contain specific language, we
presume that if these Commissioners were to purchase prior credit but not win
a second term in office, the service purchase amount would be refunded. This
would reduce the actuarial gain noted above.
• ACRISURE.COM •
Ms. Erica T. Pascal -Darling
City of Miami
June 5, 2024
Page 5
■ This study does not reflect potential cost savings to the City from elimination of
eligibility for participation in the City's defined contribution plan for elected officers.
• The proposed amendment does not spell out the timing for service purchases. For
purposes of this study, we have assumed that:
- The service purchase will be made by way of a single payment and based on
current compensation.
- Interest will not be added to the purchase amount (reflecting a worst -case
scenario for the City).
This study presents changes to funding results for the Plan. Changes to accounting
disclosures as determined under GASB Statement 68 are not included.
Section 112.63(f) of the Florida Statutes requires the mortality assumption used for
funding to mirror the assumption used in the most recent actuarial valuation reports
for the Florida Retirement System. Potential changes to that assumption are not
reflected here.
Section 112.63(g)(3) of the Florida Statutes requires the administrator of a local
retirement system to issue a statement of the actuarial impact of a proposed change
in benefits, before such change is agreed to by the local government. This analysis
is intended to address that requirement. A copy of such statement is also required
to be furnished to the FL Department of Management Services, Division of
Retirement.
We request that the City's Legal Department review this provision to ensure
compliance.
Ordinance Language
A copy of the Ordinance under consideration, identified as File ID 16177 on the
Commission agenda and most recently printed on 6/4/2024, is attached. Provisions
currently in Sec. 40-296 paragraphs (b) and (c) which pertained to elected officers in
office prior to October 1, 2023 have been eliminated. We recommend that the City
restore these historical provisions for clarity or create alternate, readily accessible
documentation for these provisions.
Actuarial Certification
Acrisure (formerly Cowden Associates) has prepared this analysis for the City of Miami
for the purpose of providing an estimate of the cost to provide benefits under the City
of Miami Elected Officers' Retirement Trust (EORT) to current and future elected
officers, in accordance with a proposed plan amendment, as attached.
Census information for the current Commissioners was provided by the City. Updated
asset information at December 31, 2023 and 2023 plan year contributions paid in
January 2024 have been provided by the City. Calculations have been prepared using
the actuarial assumptions, cost methods and assumed benefit provisions as described in
this correspondence and as referenced in the January 1, 2023 Actuarial Valuation
ACRISURE.COM
Ms. Erica T. Pascal -Darling
City of Miami
June 5, 2024
Page 6
Report for the Plan. That document should be considered as part of the "actuarial
report" presenting the results contained here. This analysis should not be used for any
other purposes.
I meet the Qualification Standards of the American Academy of Actuaries to render the
actuarial opinion contained in this report.
Please contact me for follow-up discussions or additional information as needed.
Sincerely,
Robert W. Hazy, EA, FCA, MAAA
Senior Consultant and Actuary
0: 412.394.9990
C: 412.759.0813
rhazy@acrisure.com
Copy: Larry Springs, Armando Blanco — City of Miami
Richard Smith — Acrisure
Enclosures:
Results exhibit — six pages
Proposed amendment — three pages
ACRISURE.COM
City of Miami - Elected Officers Retirement Trust
ADDITION OF ELECTED OFFICERS, IN OFFICE ON OR AFTER OCTOBER 1, 2023
Basic Information
Election to first term in office
Service required for vesting
End of term following attainment
of vesting, assuming purchase
of service credit
Projected Years of Service:
For period above:
Prior to 10/1/2023
After 10/1/2023
From prior terms in office
Total at end of assumed final term
New Plan Members
Francis Miguel Angel Damian Manuel Christine Joe
Suarez Gabela Pardo Reyes King Carollo Total
Mayor District 1 District 2 District 4 District 5 District 3
Nov. 2009 Nov. 2023 Nov. 2023 Nov. 2017 Nov. 2021 Nov. 2017
7 years 7 years 7 years 7 years 7 years 7 years
Dec. 2025 Dec. 2031
13.833
2.167
0.0
16.000
0.0
8.000
0.0
8.000
Dec. 2031 Dec. 2027
0.0
8.000
0.0
8.000
5.833
4.167
0.0
10.000
Dec. 2029 Dec. 2025
1.833
6.167
0.0
8.000
5.833
2.167
13.000
21.000
Current Compensation $ 131,000 $ 105,000 $ 105,000 $ 105,000 $ 105,000 $ 105,000
Age (nearest birthday):
At 1/1/2024 (current year 46 60 61 80 58 69
valuation date)
At end of assumed final term 48 68 68 84 64 71
* Commissioner Carollo previously served as an elected officer from 1979 through 2001. He received payments
from the EORT from 2001 until his return to office in November 2017. Payments are suspended until the end of
his current term in office. The proposed ordinance changes the definition of Compensation for benefit purposes
from W-2 wages to "salary and emoluments paid to the elected officer". Mr. Carollo's compensation for benefit
purposes is projected to increase from approximately $102,000 to $105,000, resulting in an increase to his
projected EORT benefit.
Please refer to actuarial assumptions, methods and plan provisions as described in accompanying correspondence.
ACRISURE
Page 1 of 6 June 5, 2024
City of Miami - Elected Officers Retirement Trust
ADDITION OF ELECTED OFFICERS, IN OFFICE ON OR AFTER OCTOBER 1, 2023
New Plan Members
Francis
Suarez
Projected benefit
assuming purchase of service credit
Payment age
Benefit formula percentage
50% for 1st 7 years
+ 5% for each year
thereafter, limited to 100%
Projected monthly benefit
Purchase of service credit
Years to be purchased
Current Compensation
Purchase amount, at 10% of
Compensation for each year
Liability for additional benefits
valued as of January 1, 2024
Present value of additional benefit
Service purchase by member
Net additional present value
Accrued liability = present value of
benefit reflecting service to date
Service purchase by member
Net additional accrued liability
Normal cost
55
95%
Miguel Angel
Gabela
68
55%
Damian
Pardo
68
55%
Manuel
Reyes
84
65%
Christine
King
64
55%
Joe
Carollo
71
100%
$ 10,371 $ 4,813 $ 4,813 $ 5,688 $ 4,813 $ 8,750
previously $8,493
13.833
$ 131,000
$ 181,212
0.0 0.0 5.833 1.833
n/a
0
n/a $ 105,000 $ 105,000
0 $ 61,247 $ 19,247
$ 2,175,455 $ 739,259 $ 714,405 $ 445,929
(181,212) 0 0 (61,247)
$ 1,994,243 $ 739,259 $ 714,405 $ 384,682
$ 932,117
(19,247)
$ 912,870
$ 1,947,476 $ 269,056 $ 240,353
(181,212) (61,247) (19,247)
$ 1,766,264 $ 7,745 $ 7,484 $ 207,809 $ 221,106
$ 7,745
0
$ 7,484
0
$ 113,989 $ 91,439 $ 88,365 $ 44,218 $ 115,294
Please refer to actuarial assumptions, methods and plan provisions as described in accompanying correspondence.
0.0
n/a
Total
0 $ 261,706
$ 39,730 $ 5,046,895
0 (261,706)
$ 39,730 $ 4,785,189
$ 39,730 $ 2,511,844
0 (261,706)
$ 39,730 $ 2,250,138
$ 0 $ 453,305
AACRISURE
Page 2 of 6 June 5, 2024
City of Miami - Elected Officers Retirement Trust
ADDITION OF ELECTED OFFICERS, IN OFFICE ON OR AFTER OCTOBER 1, 2023
New Plan Members
Francis
Suarez
First year City additional contribution,
with alternative amortization periods
A. 5-year amortization of accrued liability
Normal cost $ 113,989
5-year amortization of accd. liab. 370,910
Interest at 2.50% to year-end 12,122
Total $ 497,021
B. 10-year amortization of accrued liability
Normal cost $ 113,989
10-year amortization of accd. liab. 196,889
Interest at 2.50% to year-end 7,772
Total $ 318,650
C. 15-year amortization of accrued liability
Normal cost $ 113,989
15-year amortization of accd. liab. 139,175
Interest at 2.50% to year-end 6,329
Total $ 259,493
Miguel Angel
Gabela
Damian
Pardo
$ 91,439 $ 88,365
1,626 1,572
2,327 2,248
$ 95,392 $ 92,185
$ 91,439 $ 88,365
863 834
2,308 2,230
$ 94,610 $ 91,429
$ 91,439 $ 88,365
610 590
2,301 2,224
$ 94,350 $ 91,179
Manuel
Reyes
Christine
King
Joe
Carollo
Total
$ 44,218 $ 115,294 $ 0 $ 453,305
43,639 46,432 8,343 472,522
2,196 4,043 209 23,145
$ 90,053 $ 165,769 $ 8,552 $ 948,972
$ 44,218 $ 115,294 $ 0 $ 453,305
23,165 24,647 4,429 250,827
1,685 3,499 111 17,605
$ 69,068 $ 143,440 $ 4,540 $ 721,737
$ 44,218 $ 115,294 $ 0 $ 453,305
16,375 17,422 3,131 177,303
1,515 3,318 78 15,765
$ 62,108 $ 136,034 $ 3,209 $ 646,373
Please refer to actuarial assumptions, methods and plan provisions as described in accompanying correspondence.
AACRISURE'
Page 3 of 6 June 5, 2024
City of Miami - Elected Officers Retirement Trust
ADDITION OF ELECTED OFFICERS, IN OFFICE ON OR AFTER OCTOBER 1, 2023
Effect on Preliminary Refer to Preliminary Valuation
January 1, 2024 1/1/23 Results Additional Results
Actuarial Valuation Results report Before Cost for Including
page: Plan Change Plan Change Plan Change
Present value of projected benefits 7 $ 10,014,815 $ 4,785,189 $ 14,800,004
Accrued liability 8 10,014,815 2,250,138 12,264,953
Unfunded accrued liability 8 1,277,309 2,250,138 3,527,447
Normal cost 8 0 453,305 453,305
2024 City contribution : 8
A. 5-year amortization for additional liability $ 482,667 $ 948,972 $ 1,431,639
B. 10-year amortization for additional liability 482,667 721,737 1,204,404
C. 15-year amortization for additional liability 482,667 646,373 1,129,040
Projected Additional City Contribution
on Behalf of Current Elected Officers
Year
Please refer to
actuarial
assumptions,
methods and plan
provisions as
described in
accompanying
correspondence.
4. AC RI S U RE
Amortization period for additional liability
5
10 15
1 2024 $ 948,972 $ 721,737 $ 646,373
2 2025 961,000 733,000 658,000
3 2026 850,000 623,000 547,000
4 2027 859,000 632,000 556,000
5 2028 818,000 591,000 516,000
6 2029 342,000 599,000 524,000
7 2030 214,000 471,000 395,000
8 2031 219,000 476,000 401,000
9 2032 0 257,000 182,000
10 2033 0 257,000 182,000
11 2034 0 0 182,000
12 2035 0 0 182,000
13 2036 0 0 182,000
14 2037 0 0 182,000
15 2038 0 0 182,000
16+ 2039 and later 0 0 0
Page 4 of 6 June 5, 2024
City of Miami - Elected Officers Retirement Trust
ADDITION OF ELECTED OFFICERS, IN OFFICE ON OR AFTER OCTOBER 1, 2023
Projected Additional City Contribution
Including Benefits for Future Elected Officers
Newly -elected officers
assumed to replace current
officers at end of respective
terms. Assumed to be age
52 when first elected, male,
with annual compensation of
$105,000 fora Commissioner
or $131,000 for the Mayor.
Please refer to
actuarial
assumptions,
methods and plan
provisions as
described in
accompanying
correspondence.
4. AC RI S U RE
Year
1 2024
2 2025
3 2026
4 2027
5 2028
6 2029
7 2030
8 2031
9 2032
10 2033
11 2034
12 2035
13 2036
14 2037
15 2038
16 2039
17 2040
18 2041
19 2042
20 2043
21 2044
22 2045
23 2046
24 2047
25 2048
26 2049
27 2050
28 2051
29 2052
30 2053
Amortization period for additional liability
5
$ 948,973
961,000
1,115,000
1,131,000
1,215,000
749,000
749,000
767,000
798,000
818,000
780,000
800,000
794,000
814,000
809,000
829,000
798,000
818,000
780,000
800,000
794,000
814,000
809,000
829,000
798,000
818,000
780,000
800,000
794,000
814,000
10 15
$ 721,735
733,000
888,000
904,000
988,000
1,006,000
1,006,000
1,024,000
1,055,000
1,075,000
780,000
800,000
794,000
814,000
809,000
829,000
798,000
818,000
780,000
800,000
794,000
814,000
809,000
829,000
798,000
818,000
780,000
800,000
794,000
814,000
$ 646,373
658,000
812,000
828,000
912,000
931,000
930,000
949,000
980,000
1,000,000
962,000
982,000
976,000
996,000
990,000
829,000
798,000
818,000
780,000
800,000
794,000
814,000
809,000
829,000
798,000
818,000
780,000
800,000
794,000
814,000
Page 5 of 6 June 5, 2024
City of Miami - Elected Officers Retirement Trust
ADDITION OF ELECTED OFFICERS, IN OFFICE ON OR AFTER OCTOBER 1, 2023
SUMMARY OF INDIVIDUAL BENEFITS
Current Officers
New plan members
Francis Suarez
Miguel Angel Gabella
Damian Pardo
Manuel Reyes
Christine King
EORT Plan member
previously receiving benefits
Joe Carollo
Estimated benefit
Other EORT Plan members
Manual Diaz
Angel Gonzalez
Wilfredo Gort
Tomas Regalado
Joe Sanchez
Marc Sarnoff
Michelle Spence -Jones
Current Plan Proposed
monthly benefit Plan Deferral
In payment Deferred monthly age or
status payment benefit date
- - $ 10,371 Age 55
- - 4,813 Age 67.8
- - 4,813 Age 68.4
- - 5,688 Age 83.5
- - 4,813 Age 63.7
$ 6,875
4,794
8,488
7,046
6,283
5,039
10,601
$ 8,493 $ 8,750 12/1/2025
no change
no change
no change
no change
no change
no change
no change
Apt ACR[SURE
Page 6 of 6 June 5, 2024
City of Miami
Ordinance
Legislation
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 16177 Final Action Date:
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER
40/ARTICLE IV/DIVISION 4 OF THE CODE OF THE CITY OF MIAMI, FLORIDA,
AS AMENDED, TITLED "PERSONNEL/PENSION AND RETIREMENT
PLAN/CITY OF MIAMI ELECTED OFFICERS RETIREMENT TRUST"; MORE
PARTICULARLY BY AMENDING SECTION 40-291, TITLED "DEFINITIONS,"
AND SECTION 40-296, TITLED "APPLICABLE BENEFITS"; CONTAINING A
SEVERABILITY CLAUSE; AND PROVIDING FOR AN IMMEDIATE EFFECTIVE
DATE.
SPONSOR(S): Commissioner Miguel Angel Gabela, Commissioner Christine King
BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA:
Section 1. Chapter 40, Article IV, Division 4 of the Code of the City of Miami, Florida, as
amended, is further amended in the following particulars:1
"CHAPTER 40
PERSONNEL
ARTICLE IV. PENSION AND RETIREMENT PLAN
DIVISION 4. CITY OF MIAMI ELECTED OFFICERS' RETIREMENT TRUST
Sec. 40-291. Definitions
Unless a different meaning is plainly required by the context, the following words and phrases
as used in this division shall have the following meaning:
Compensation shall mean salary and emoluments paid to the elected officer provided, any
back -pay award shall only be allocated to the period for which the award is applicable.
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.
City of Miami Page 1 of 3 File ID: 16177 (Revision:) Printed On: 6/4/2024
File ID: 16177 Enactment Number:
Sec. 40-296. Applicable Benefits.
(a) Certain eElected officers, who were elected officers for a period of ten (10) years or
more and who no longer serves as elected officers, shall be entitled during the
remainder of their natural lives to a sum equal to one-half of their W 2 wages
Compensation for the highest of the last three Dlyears of service of their term of office
and a single sum death benefit fully vested at date of death. Upon vesting and each
year thereafter of service as an elected officer, the retirement allowance shall be five
percent (5%) for each year of service to a maximum of 499-one hundred percent
(100%) of the highest W 2 wages Compensation.
(b) Elected officers in office on or after October 1, 2023 shall be eligible for a retirement
benefit as follows:
1. Elected officers who were first elected to office on or after October 22, 2009, who
are in office on or after October 1, 2023, and who serve as an elected officer for a
period of seven (7) or more years shall, upon making an irrevocable election to
participate in the Elected Officers Retirement Trust, be entitled upon separation from
employment and reaching age 55 with ten (10) or more years of service or age 60, to a
sum equal to one-half of their Compensation for the highest of the last three (3) years
of service and a single sum death benefit fully vested at date of death. Upon vesting
and each year of service as an elected officer thereafter, the retirement allowance
shall increase by five percent (5%) for each year of service to a maximum of one
hundred percent (100%) of the highest Compensation. Such elected officers may
purchase service credit under this plan for his or her period of service as an elected
officer prior to October 1, 2023 by paying ten percent (10%) of his or her
Compensation, plus three percent (3%) annual interest, for each year of service
purchased. The service credit purchased shall count for all purposes of vesting and
benefits and elected officers who purchase such service credit shall be fully vested
when their total years of service, including purchased service before October 1, 2023,
equals seven (7) or more years. Elected officers who are subject to the provisions of
this paragraph shall make such election to be a member of the Elected Officers
Retirement Trust in order to be eligible to receive the benefit. If the elected officer
elects to participate in the Elected Officers Retirement Trust, that election shall be
irrevocable and thereafter, the elected officer shall participate in said Elected Officers
Retirement Trust and not in the City's defined contribution plan for elected officers.
2. Elected officers who were first elected to office after October 1, 2023 and who
serve as an elected officer for a period of seven (7) or more years shall be entitled,
upon separation from employment and reaching age 55 with ten (10) or more years of
service or age 60, to a sum equal to one-half of their Compensation for the highest of
the last three (3) years of service and a single sum death benefit fully vested at date of
death. Upon vesting and each year of service as an elected officer thereafter, the
retirement allowance shall increase by five percent (5%) for each year of service to a
maximum of one hundred percent (100%) of the highest Compensation. Elected
officers who are subject to the provisions of this paragraph shall participate in the
Elected Officers Retirement Trust and shall not be eligible for the City's defined
contribution plan for elected officers.
or elected from October 1, 2001, until October 22, 2009, who were elected officers for
a period of scvcn y ars or morc and who no longer serve as elected officers of the City
of Miami shall be entitled, upon reaching age, during the remainder of their natural
City of Miami Page 2 of 3 File ID: 16177 (Revision:) Printed on: 6/4/2024
File ID: 16177 Enactment Number:
lives to a sum equal to one half of their W 2 wages for the highest of the last three
years of service of their term of office and a single sum death benefit fully vested at
date of death. Upon vesting and each year thereafter of service as an elected officer,
the retirement allowance shall increase by five percent for each year of service to a
maximum of 100 percent of the highest W 2 wages.
$ Any person elected to the office of mayor or commi. loner after October 22, 2009,
shall not be eligible to receive the benefits outlined herein; except those elected
officers currently holding office who have not vested, but who serve for seven years or
more in the office they currently hold, irrespective of whether they served succeive
terms.
*„
Section 2. If any section, part of a 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 shall become effective immediately upon its adoption and
signature of the Mayor.2
APPROVED AS TO FORM AND CORRECTNESS:
2 This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten (10)
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 or upon the effective date stated
herein, whichever is later.
City of Miami Page 3 of 3 File ID: 16177 (Revision:) Printed on: 6/4/2024