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Miami, Florida, Code of Ordinances » PART I1- THE CODE » Chapter 40 - PERSONNEL » ARTICLE
IV. - PENSION AND RETIREMENT PLAN » DIVISION 3. CITY OF MIAMI GENERAL EMPLOYEES° AND
SANITATION EMPLOYEES° RETIREMENT TRUST»
DIVISION 3. CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST 11
Sec. 40-241. Definitions.
Sec. 40-242. Plan established; purpose; name: operative date.
Sec. 40-243. Board of trustees.
Sec. 40-244. Administration of the Plan• liability; misconduct of a co -trustee.
Sec. 40-245. Asset management and investments.
Sec. 40-246. Contributions.
Sec. 40-247. Accounts.
Sec. 40-248. Physical examination; effect of pre -employment conditions.
Sec. 40-249. Membership: members absent from service.
Sec. 40-250. Reserved.
Sec. 40-251. Transfer of city employees to Plan.
Sec. 40-252. Creditable service.
Sec. 40-253. Dismissal for willful misconduct.
Sec. 40-254. Paybacks for membership credit.
Sec. 40-255. Benefits.
Sec. 40-256. Cost -of -living allowance.
Sec. 40-257. Adlustment in benefits.
Sec. 40-258. Assignments and loans prohibited.
Sec. 40-259. Protection against fraud.
Sec. 40-260. Errors.
Sec. 40-261. Bonding; fiduciary insurance.
Sec. 40-262. Compliance with the Internal Revenue Code.
Sec. 40-263. Distribution of marital interests in the Ian' intervention in le al roceedin s a
Sec. 40-264. General conditions.
Sec. 40-265. Excess benefit plan.
Sec. 40-266. Transfer of accumulated leave.
Secs. 40-267--40-290. Reserved.
Sec. 40-241. Definitions.
the Plan.
The following words and phrases as used in this division shall have the following meanings:
Accumulated employee contributions shall mean the sum of all amounts deducted from a
member's compensation or picked up on behalf of a member, together with regular interest as
provided in this division. Accumulated employee contributions shall also mean any amounts paid by
a member for the purchase of military service credits or other paybacks permitted in this Plan.
Active membership shall mean membership in the Plan as an employee.
Actuarial equivalent shall mean a benefit having the same present value as the benefit it
replaces based upon the actuarial table adopted by the board of trustees.
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And shall have a conjunctive meaning.
Average final compensation shall have a meaning dependent upon the date of hire and the
date of termination of service of the member. The periods of time for which average final
compensation is determined are:
(a) For members who became employed before May 24, 1984, and whose active
membership in the Plan did not cease before May 23, 1985. In the case of such
members, average final compensation shall mean the highest compensation of that
member during any one year of membership service. The highest one year of
compensation shall not exceed the second highest year of compensation by more
than 15 percent excluding any difference due to longevity, anniversary and negotiated
cost of living increases. The term "year" shall be calculated using the highest 12
months of compensation, but the months need not be consecutive.
(b) In the case of a member who becomes an employee on or after May 24, 1984 and
who retires or terminates employment with ten or more years of creditable service
prior to October 1, 2010, or for an employee whose service has previously ended or
who is not a member absent from service, but recommences on or after May 24, 1984
who retires or terminates employment with ten or more years of creditable service
prior to October 1, 2010, average final compensation shall mean the average annual
compensation of the member during the last two years of membership service, or the
highest two years of membership service, whichever is greater. In the case of the
highest two years of membership service, the years need not be consecutive. The
term "year" shall be calculated using the highest 12 months of compensation, but the
months need not be consecutive.
(c) Effective September 30, 2010, for members employed on that date who retire on or
after October 1, 2010, average final compensation shall mean: average of highest five
years of the last ten years of service, to be phased in over the next three years as
follows: average final compensation for members who retire on or after October 1,
2010 and on or before September 30, 2011 will be based on the average of the
highest three years of membership service; for members who retire on or after
October 1, 2011 and on or before September 30, 2012, it will be based on the
average of the highest four years of membership service; and for members who retire
on or after October 1, 2012, the average of the highest five years of the last ten years
of membership service. Provided, in no event shall the average final compensation of
any member who is employed on September 30, 2010 and retires on or after October
1, 2010, be less than the member's average final compensation as of the date of the
plan change.
BACDROP shall mean Benefit Actuarially Calculated Deferred Retirement Option Program.
Beneficiary shall mean any person receiving a retirement allowance or other benefit from the
Plan.
Benefit shall mean a retirement allowance or other payment provided by the Plan and made
to a member, retiree or beneficiary.
Board or board of trustees shall mean the board of trustees of the Plan.
Child shall mean the natural or adopted child of a member, but shall not include foster
children or step -children.
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City shall mean the City of Miami, Florida.
City commission or commission shall mean the Miami City Commission.
COLA shall mean the cost of living adjustment provided under the terms of the Plan.
Compensation shall mean a member's base salary, including pick-up contributions for all
straight time hours worked, assignment pay, pay supplements, vacation, and sick leave used while
an active member, jury duty, and death in family leave taken or any other administrative leave
approved pursuant to ordinance, labor agreement, or city personnel policy which is used as part of
the member's base salary. Compensation shall not include overtime pay, payments for
accumulated sick leave, accumulated vacation leave, or accumulated compensatory leave,
premium pay for holidays worked, call back pay, uniform allowances, tool allowances, the value of
any other employment benefit or non -monetary entitlement, or any other form of remuneration.
Creditable service shall mean credit upon which a member's eligibility to receive benefits
under the Plan is based, or upon which the amount of such benefits is to be determined.
Disability shall mean the permanent and total incapacity to perform useful and efficient
service as an employee of the city as determined by the board pursuant to the terms of the Plan.
DROP shall mean Deferred Retirement Option Program and shall include a Forward DROP
and a BACDROP.
Early service retirement shall mean a member's withdrawal from service under
circumstances permitting the payment of a retirement benefit before such member is eligible for
normal service retirement.
Employee shall mean any regular, permanent, and full-time appointed officer or employee of
the city, other than a police officer or firefighter as defined in section 40-191 of the city Code. The
term "employee" shall include both classified and unclassified employees, provided they are
appointed on a full-time basis as defined by the Civil Service Rules, collective bargaining
agreement, or other applicable city personnel policy. The term "employee" shall also include
members of this Plan who become employees of Miami -Dade County by virtue of the merger,
transfer, or assignment of governmental units or functions from the city to Miami -Dade County. Any
such employee shall continue as a member of this Plan unless they elect within six months after the
date of the transfer to become a member of the Florida Retirement System. For the purpose of any
such employee, Miami -Dade County shall be deemed included within the term "city" as used in this
Code. Temporary, part-time or casual employees shall not be deemed "employees."
Forward DROP shall mean a Deferred Retirement Option Program where benefit is equal to
the regular retirement benefit the member would have received had the member separated from
service and commenced the receipt of benefits from the plan.
Full time shall mean an employee who is compensated on a 40 hour per week basis.
Fund shall mean the City of Miami General Employees' and Sanitation Employees'
Retirement Trust Fund.
General Employees' Union shall mean the certified collective bargaining agent for all general
employees of the city, except sanitation employees, managerial employees and confidential
employees.
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May shall mean a permissive term.
Member shall mean an employee for whom contributions to the Plan are picked up as
required by this Plan.
Member absent from service shall mean any member who has ceased to be an employee for
less than three years in a period of five consecutive years after last becoming a member, and who
has not withdrawn the accumulated employee contributions.
Member not in service shall mean any member who has a vested right to retirement pursuant
to the provisions of this Plan. A member not in service shall also be known as a vested separated
member. This term shall not include retired members who have been rehired by the city in positions
not eligible for participation in this Plan.
Membership service shall mean service as an employee for which contributions to the Plan
were made as required by this Plan.
Miami City General Employees' Retirement Plan shall mean the city pension plan which was
established effective July 1, 1956, pursuant to Ordinance No. 5624, enacted May 2, 1956, as
amended.
Noninvestment expenses shall exclude fees paid to money managers whose duty it is to
invest and manage the assets of the Plan and to report on the performance of those investments.
Salaries for office staff, overhead, professional fees for actuaries, accountants, financial
consultants, performance monitors and attorneys, and other similar nonbenefit costs are examples
of non -investment expenses.
Normal costs shall mean the cost of benefits attributable to the current year under the
modified aggregate entry age normal cost method.
Normal retirement age shall mean age 55 for members employed on September 30, 2010
who have attained age 55 by that date and members who retire or terminate employment with ten
or more years of creditable service prior to October 1, 2010. Normal retirement age shall mean the
earlier of age 60 with ten years of creditable service or age 55 with 30 years of creditable service for
members who have not attained age 55 as of September 30, 2010 and all other members who
retire on or after October 1, 2010.
Option shall mean one of several choices available to members with respect to the manner
in which a retirement benefit may be paid.
Payback shall mean a member's contribution to the Plan for creditable service for which
other than regular contributions have been made. Contributions required for paybacks shall not be
picked up by the city, but may be deducted from a member's compensation.
Pick-up amounts shall mean employer contributions derived from a member's compensation
through a reduction in the member's compensation. For the purposes of this Plan, amounts picked -
up shall be considered for state law purposes as employee contributions.
Plan shall mean the City of Miami General Employees' and Sanitation Employees'
Retirement Trust.
Plan year shall mean the period from October 1 through September 30 of the following year.
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Pre-existing condition shall mean a condition of health which pre -dated any period of Plan
membership.
Regular contributions shall mean amounts picked -up by the city from the compensation of a
member. Regular contributions shall not include payback contributions or any other amounts which
may be deducted from a member's compensation pursuant to this division.
Regular interest shall mean interest at the rate prescribed by the board of trustees which
shall be not less than one percent per quarter of the contribution balance as of the end of the
previous calendar year, including interest.
Retiree shall mean a former member who is in receipt of benefits from the Plan.
Retirement shall mean a member's withdrawal from service with a benefit granted to the
member pursuant to the provisions of this Plan.
Rule of 70 shall mean a computation permitting normal retirement where the sum of the
member's age and length of creditable service is equal to at least 70, provided that the member has
completed ten years of creditable service.
Sanitation Employees' Union shall mean the certified collective bargaining agent for all
sanitation employees of the city, except for managerial employees, confidential employees and
employees covered by another collective bargaining unit.
Service shall mean active employment as an employee of the city.
Service retirement shall mean a member's retirement from service under circumstances
permitting payment of a retirement benefit without reduction because of age, length of service, or
both and without special qualifications such as disability.
Spouse shall mean the lawful husband or wife of a member or retiree at the time benefits
commence, unless a new designation has been made in writing to the board in accordance with the
provisions of this Plan. This section shall be interpreted under Florida choice of law rules.
Surviving spouse means the spouse of the member at the time benefits commence unless a
new designation has been made in accordance with the provisions of this Plan.
Trustee shall mean a member of the board of trustees of the Plan.
Useful and efficient service shall mean the performance of the regular duties of the position
to which the employee is assigned by the city. The board shall determine from the facts of each
disability application whether the member is performing in accordance with this definition.
Unfunded liability shall mean the excess of the actuarial accrued liability of the Plan over
(the) present asset value used to determine the city's funding obligation.
Vested benefit shall mean an immediate or deferred benefit to which a member has gained a
non -forfeitable right under the provisions of this Plan, without the need for additional creditable
service.
Vesting shall mean ten years of creditable service before the member is entitled to service
retirement benefits and non -service disability.
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(Ord. No. 12111, § 1, 9-25-01; Ord. No. 12202, § 2, 3-27-02; Ord. No. 13203, § 2, 9-27-10)
Sec. 40-242. Plan established; purpose; name; operative date.
A Plan is established and placed under the exclusive administration and management of a
board of trustees for the purpose of providing retirement benefits pursuant to the provisions of this
Code and for payment of the reasonable expenses of the Plan. This Plan shall be known as the
"City of Miami General Employees' and Sanitation Employees' Retirement Trust."
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-243. Board of trustees.
(a) Composition and selection.
(1) The sole and exclusive administration of and responsibility for the proper and effective
operation of this Plan is vested in a nine member board of trustees.
(2) The board of trustees shall be selected as follows:
a. One trustee shall be selected by the city manager, which trustee shall not be
the mayor, a city commissioner, the city manager, the city finance director, or
an assistant finance director.
b. Two trustees shall be selected by the general employees and their names
submitted to the city clerk. The trustee may be a present or retired member of
the bargaining unit represented by the General Employees' Union and shall be
selected and serve according to the constitution and bylaws of the General
Employees' Union.
c. Two trustees shall be selected by the sanitation employees and their names
submitted to the city clerk. The trustees shall be present members of the
bargaining unit represented by Sanitation Employees' Union and shall be
selected and serve according to the constitution and bylaws of the Sanitation
Employees' Union.
d. The remaining four trustees shall be selected by the city commission and may
not be employees of the city. Two of the trustees shall be selected from a list of
six persons submitted by the General Employees' Union according to its
constitution and bylaws and the other two trustees shall be selected from a list
of six persons submitted by the Sanitation Employees' Union according to its
constitution and bylaws. The city commission may, at the request of the
General Employees' Union or the Sanitation Employees' Union, accept a list
consisting of one name for each position to be filled. The lists submitted to the
city commission shall not contain duplications. If a duplication occurs, the city
commission shall return both lists for resubmission.
e. The trustees appointed by the city shall have, at the minimum, the following
qualifications:
1. Be presently employed or self-employed on a full-time basis, or be
retired from such;
2. Have resided in Miami (or its immediate environs) for the past five years;
3. Be able to attend board meetings if scheduled well enough in advance
and agree to resign from the board if meeting attendance is less than 75
percent in a one-year period; however, the provisions of this subsection
shall not apply to those individuals who are members of city boards and
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(b)
(c)
(d)
(e)
who are (1) reservists in the United States Armed Forces or members of
the Florida National Guard, and have been ordered to active military
duty for national, state, or homeland defense and due to such duty
cannot attend board meetings, or (2) employees of agencies whose
services are considered essential for national, state, or homeland
defense and due to such services cannot attend board meetings.
4. Have been involved in, within the last five years, and be knowledgeable
about employee pension or similar fringe benefits;
5. Have knowledge of, be familiar with, and have had exposure to
labor/management relations;
6. Have knowledge of and be familiar with business principles;
7. Have not been, within the past five years, a public employee union
representative, nor a representative of management for the city;
8. Not be actively involved in nor aspire to be actively involved in city,
county, or state politics.
Term of office.
(1) The term of office for each trustee shall be two years.
(2) There shall be no limit to the number of terms a trustee may serve.
(3) A trustee shall take an oath of office administered by the city clerk within ten days
after selection.
(4) A trustee shall serve until a successor trustee is appointed and administered the oath
of office.
Fiduciary responsibility. The board of trustees shall be deemed the named fiduciary of the
Plan and shall discharge its responsibilities solely in the interest of the members and
beneficiaries of the Plan for the exclusive purpose of providing benefits to the members and
their beneficiaries and to defray the reasonable expenses of the Plan. The trustees shall
exercise those fiduciary responsibilities 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 similar character and with similar
aims.
Compensation. Trustees who are employees of the city shall be granted leave with full pay
and benefits while functioning as a trustee during their normal working hours. Service on the
board shall not be considered as "time worked" for the purposes of overtime liability under
the Fair Labor Standards Act. This shall include attendance at board meetings, workshops,
board approved educational conferences and board approved travel. Employee trustees
shall not otherwise be paid for their services as trustees. The nonemployee trustees shall be
compensated at any given time in the same manner as are members of the city's civil service
board.
Meetings; voting; quorum; officers.
(1) The board shall meet at least once every two months following appropriate public
notice and shall meet and conduct the business of the Plan in accordance with
Chapter 286, Florida Statutes.
(2) Each trustee shall be entitled to one vote. Five concurring votes shall be necessary for
a decision by the board. Five trustees shall constitute a quorum for the purpose of
meeting and transacting business. A lesser number of trustees may be appointed as a
committee to perform tasks on behalf of the board. All committee meetings shall be
subject to the notice and meeting requirements of Chapter 286, Florida Statutes.
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(3) The board shall elect, every two years, a trustee as chairperson and a trustee as vice
chairperson of the board.
(f) Vacancies; removal.
(1) If a vacancy occurs due to resignation, death, or removal, the vacancy shall be filled
for the unexpired term of the departing trustee in accordance with the provisions of
this section for selection of the trustee who has vacated the office.
(2) The board may remove a trustee prior to completion of his or her designated term of
office for proper cause only, which cause shall be stated in writing. No trustee shall be
removed pursuant to this section except upon proper notice and hearing. The board
shall prescribe uniform rules for the conduct of such hearings. Proper cause shall
mean a trustee's failure to satisfactorily discharge his or her fiduciary responsibility,
including, but not limited to, failure to attend 75 percent of the meetings of the board in
a one-year period. For the purposes of removal only, six concurring votes shall be
necessary.
(Ord. No. 12111, § 1, 9-25-01; Ord. No. 12201, § 1, 3-14-02)
Sec. 40-244. Administration of the Plan; liability; misconduct of a co -trustee.
(a) Administrative duties of the board.
(1) To maintain such records as are necessary for calculating and distributing Plan
benefits;
(2) To maintain such records as are necessary for financial accounting and reporting of
Plan funds;
(3) To maintain such records as are necessary for actuarial evaluation of the Plan,
including investigations into the mortality, service and compensation experience of its
members and beneficiaries;
(4) To compile such other administrative or investment information as is necessary for the
management of the Plan;
(5) To process, certify and respond to all correspondence, bills and statements received
by the Plan, as well as all applications submitted to the board for Plan benefits;
(6) To establish and maintain communication with city departments, and other agencies
of government as is necessary for the management of the Plan, including preparing,
filing and distributing such reports and information as are required by law to be
prepared, filed or distributed on behalf of the Plan;
(7) To determine all questions relating to, and process all applications for eligibility,
participation and benefits;
(8) To distribute at regular intervals a comprehensive summary Plan description and
periodic reports to employees, not less than biennially, regarding the financial and
actuarial status of the Plan;
(9) To retain and compensate such professional and technical expertise as is necessary
to fulfill its fiduciary responsibilities;
(10) To make recommendations regarding changes in the provisions of the Plan;
(11) To assure the prompt deposit of all member contributions, city contributions, and
investment earnings;
(12) To establish a uniform set of rules and regulations for the management of the trust;
(13) To take such other action as the trustees shall deem, in their sole and exclusive
discretion, as being necessary for the efficient management of the Plan.
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(c)
(b) Pension administrator.
(1) The board shall employ a pension administrator to assist the board in the performance
of its administrative duties. The pension administrator, subject to the approval of the
board, may employ such staff as is necessary for the proper administration of the
Plan.
(2) The pension administrator selected by the board shall have, at the minimum, the
following qualifications:
a. Accounting or pension administration background;
b. Managerial experience, including hiring, directing and motivating a small staff;
c. Sufficient knowledge or experience to supervise data processing operations;
d. Experience with filing government forms (including federal and state
compliance requirements) and have the initiative to inquire and successfully
obtain resource data when specific information is not readily available;
e. Be capable of using benefit formulas to calculate and pay benefits;
f• Be capable of prudent financial management and obeying guidelines
established by the board;
g• Be capable of developing cash flow projection;
h. Be capable of preparing financial reports reflecting the activity of the trust and
financial trends;
Be capable of maintaining an investment schedule;
j Be capable of maintaining minutes of the meetings of the board;
k. Be capable of preparing correspondence, issuing forms, receiving and
processing benefit claims, and expressing ideas in writing;
l• Be able to insist upon, and actively pursue delivery of, all reports and other
documents required for the efficient operation of the Plan;
m. Effective oral communication skills;
n• A good employment attendance record;
o• Be efficient, practical and committed to responsible and effective operation of
the Plan, its finances and expenses;
p Be able to remain neutral on decisions to be made by the board and serve all
board members in an impartial and arm's length fashion, giving due recognition
to the ultimate fiduciary obligation to participants and beneficiaries of the Plan.
(3) The board shall have a continuing duty to observe and evaluate the performance of
the pension administrator. The board shall, in selecting a pension administrator,
exercise all judgment and care under the circumstances then prevailing which
persons of prudence, discretion, and intelligence, exercise in the management of their
own affairs.
(4) The pension administrator shall have a written contract of employment with the board,
which shall include any tenure rights which the board, in its discretion, may grant.
(5) The pension administrator shall not be an employee of the city.
(6) The pension administrator shall be a fiduciary of the Plan.
Annual report to the city commission. The board shall submit the following information
annually to the city commission not later than July 1st of each year:
(1)
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(d)
(e)
(2)
A report showing the fiscal transactions of the Plan for the year ending on the
preceding September 30th, as well as the amount of accumulated cash, securities and
other property of the Plan.
The current actuarial valuation of the assets and liabilities of the Plan.
Actuarial valuation; actuarial standards.
(1) At least once in each three-year period, the board shall cause an actuarial
investigation to be made into the mortality, service and compensation experience of
the members of the Plan. Taking into account the result of such investigation, the
board shall adopt for the Plan, such mortality, service and other tables as are
necessary and proper. On the basis of these tables, an annual actuarial valuation of
the assets and liabilities of the Plan shall be made.
(2) Actuarial assumptions based on the three-year experience analysis may be modified
by the board at such times as it deems appropriate. No change in actuarial
assumptions shall be made by the board without 60 days' prior notice to the city of the
first meeting at which any change or proposal or recommendation related to such
change is made. After the initial meeting where such changes or proposals are
considered, the city shall be given reasonable notice of any subsequent meeting on
the same or related proposal.
(3) The actuarial value of the assets of the Plan shall be the five-year moving market
value average. Each year, starting with the market value as of October 1, 2007, the
expected return will be determined based on the beginning of year market value and
the actual contribution and benefit payments at the assumed interest assumption. One
-fifth of the difference between the expected market value return and the actual
market value return is included in the actuarial asset value at the valuation date. Four -
fifths of the difference between the expected market value return and the actual
market value return is deferred in even increments of 20 percent per year to each of
the next four years as future adjustments to the actuarial asset value. The preliminary
actuarial asset value will be the sum of the actuarial asset value as of the previous
valuation date plus the actual contributions and benefits payments in the year ending
on the current valuation date plus the expected return on market value return plus one
-fifth of the cumulative differences between the expected and actual market value
returns over the five years up to the valuation date. The result cannot be greater than
120 percent of market value or less than 80 percent of market value. The board may
approve other methods of determining the actuarial value of the Plan assets if such
other methods are recommended by the actuary retained by the board and found by
the Florida Bureau of Local Retirement Systems, Division of Retirement, Department
of Administration, or its successor, to be in compliance with state law. Prior to the first
meeting of the board to consider any change in the method of determining the
actuarial value of Plan assets, the city shall be given timely written notice of the
proposed change.
Authority to hire consultants.
(1) The board shall have the authority to retain its own legal consultants, accountants,
actuaries, and other professional advisors to assist the board in the performance of its
duties. The board may act without independent investigation upon the professional
advise of the advisors so retained.
(2) The board shall retain a physician to assist it in the performance of its administrative
duties with regard to the consideration of medical questions arising under the Plan.
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The physician shall conduct any required medical examinations or refer the examinee
to a specialist or specialists.
(f) Defense of actions; trustee liability.
(1) The board is authorized to prosecute or defend actions, claims or proceedings of any
nature or kind for the protection of the fund assets or for the protection of the board in
the performance of its duties.
(2) Neither the board nor any of its individual members shall have any personal liability for
any action taken in good faith. The trustees individually and the board as a whole shall
be entitled to the protections contained in § 768.28, Florida Statutes. The trustees
shall also be authorized to purchase from the assets of the fund, errors and omission
insurance to protect the trustees and staff in the performance of their duties. Such
insurance shall not provide an individual with protection against a fiduciary's fraud,
intentional misrepresentation, willful misconduct or gross negligence.
(9) Public records; board documents; written communications to and from city; commission
agenda.
(1) The board shall keep a record of all of its proceedings which shall be maintained and
open to public inspection in accordance with Chapters 119 and 286, Florida Statutes.
Such records shall reflect a complete and comprehensive account of the discussions
and actions taken by the board.
(2) The board and the city manager shall each provide the other with copies of all
documents relating to the Plan contemporaneously upon the making or receipt of such
documents. All written communications relating to the Plan from the board to the city
shall be made directly to the city manager. All written communications to the board
from the city shall be made directly to the board, with copies to the pension.
(3) The board shall establish uniform procedures for maintaining confidentiality of medical
information as required by state and federal law.
(4) When consideration by the city commission is required for Plan business, such
business shall be placed on the agenda of the commission and heard at the next
scheduled meeting, consistent with the agenda rules of the commission.
(h) Rules and regulations. The board may, from time to time, establish rules and regulations
which it deems necessary for the efficient administration and management of the Plan. No
administrative rule may conflict with the provisions of the City Charter or Code, state or
federal law. No administrative rule of the fund may conflict with the provisions of any
collective bargaining agreements affecting members of the Plan.
(Ord. No. 12111, § 1, 9-25-01; Ord. No. 13090, § 1, 9-24-09)
Sec. 40-245. Asset management and investments.
(a) Nature of trust. The Plan is an irrevocable trust fund into which is deposited all of the assets
of the Plan of every kind and description. The Plan is a defined benefit retirement fund.
Members have an ownership right in benefits accrued as provided for in this Plan. No
member has an ownership right in the assets of the Plan.
(b) Custody; records. The custody and supervision of the fund shall be vested in the board. All
assets of the Plan may be pooled, provided that accurate records are maintained at all times
reflecting the financial composition of the fund, including accurate accounts regarding the
following:
(1) Current amounts of accumulated contributions of members, both on an individual and
aggregate basis;
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(c)
(d)
(2)
(2) Receipts and disbursements;
(3) Benefits payments;
(4) All contributions from the city;
(5) All interest, dividends, gains and losses from investment;
(6) Such other entries as may be required for a clear, complete financial report of the
status of the fund.
Investment policy. The board shall maintain a written investment policy, with the advice and
counsel of such advisors as the board deems necessary, and said investment policy shall set
forth the types of securities and other types of investments into which shall be placed the
assets of the fund. The policy shall further set forth appropriate limitations on those
investments, including, but not limited to, anticipated rate of return, quality of investment,
class of investment, acceptable risk and any other factor as required by law.
Permissible investments.
(1) Trust funds may be invested without limitation in the following asset classes:
a. Bonds, notes, mortgage -backed securities, or other obligations of the United
States or those guaranteed by the United States or any agency of the United
States Government or instrumentality of the United States Government or for
which the credit of the United States Government, government agency or
instrumentality is pledged for the payment of the principal and interest or
dividends thereof.
b. Certificates of deposit of any bank incorporated under the laws of the State of
Florida, or any national bank organized under the laws of the United States, to
do business and situated in this state, to the extent that such savings accounts
are fully insured with the federal government or an agency thereof, and that the
certificates of deposit are secured by the Deposit of Securities of the United
States Government.
C. Repurchase agreements with United States Treasury Securities, and agencies
of the United States Government as collateral, said collateral to be held by
trustees.
No more than seven percent of the fund at market value may be invested in any one
entity of the categories listed below:
a.
b.
c.
Common stock, preferred stock and interest -bearing obligations of corporations
having an option to convert into common stock, domestic or foreign, when
recognized on a major United States stock exchange; provided that the
aggregate investment of the fund in any one issuing corporation shall not
exceed three percent of the outstanding capital stock of that corporation.
Notes secured by first mortgages on real property, insured or guaranteed by
the Federal Housing Administration or the Veteran's Administration.
Interest -bearing obligations with a fixed maturity of any corporation within the
United States; provided that such obligations are rated by at least two
nationally recognized rating services in any one of the four highest
classifications approved by the comptroller of the currency for the investment of
funds of national banks, or if only one nationally recognized rating service shall
rate such obligations, such rating service must have rated such obligations in
any one of the three highest classifications mentioned in this section. Any
security downgraded subsequent to purchase which results in the security
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falling below the recommended guidelines may be held at the investment
manager's discretion.
d. Mortgages, excluding those backed by the United States Government or
Government agencies and instrumentalities, which are a commercial property
secured by a first lien mortgage note for up to, but not in excess of, 80 percent
of the appraised value of the property.
e. Common stock and preferred stock of foreign corporations; provided that the
overall investment under this paragraph shall not exceed fifteen percent of the
market value of the total trust fund.
(e) Limitations on investment.
(1) Trust funds may not specifically be invested in private placements or debt to equity
exchanges.
(2) Within the limitations in this section, the board shall have the authority to acquire
every kind of property and investment which persons of prudence, discretion and
intelligence acquire for their own accounts. The board may retain property properly
acquired without limitation as to time and without regard to its suitability for its original
purchase.
(f) Money managers.
(1) The board of trustees shall retain one or more money managers for management of
the assets held by the Plan, and the board shall convey property of the trust to such
managers for investment and reinvestment in accordance with the provisions of this
section.
(2) All money managers shall have a written contract with the board specifying the assets
to be invested; the asset classes appropriate for utilization; expected performance;
standard of care and resolution of disputes. All such contracts shall be governed in
accordance with the laws of the State of Florida and shall have venue for resolution of
disputes in Miami -Dade County, Florida. In the event that any money manager shall
invest assets of the Plan in a prohibited category of investment or shall otherwise
breach the terms of the investment management agreement, if such breach causes a
loss to the trust, the contract shall require the money manager to make the trust whole
for any losses incurred. Each money manager shall be a fiduciary of the Plan.
(3) The board shall establish written guidelines and objectives against which the
investment performance of any money manager retained by the board shall be
measured. If a money manager fails to meet the guidelines and objectives, or fails to
meet its contractual agreement with the board, the money manager may be
terminated by the board. The performance of the investment portfolio for the Plan
shall be not less than 90 percent of the median performance of comparable portfolios
as determined jointly by the board and the city manager. If performance falls below
that minimum standard, the money managers shall automatically be removed, unless,
based on extenuating circumstances, the board recommends continuation and such
continuation is approved by the city commission. The board retains the right, at all
times, to terminate any money manager agreement, with or without cause.
(4) In the conduct of their affairs, all money managers shall exercise the judgment and
care under the circumstances then prevailing, which persons of prudence, discretion
and intelligence exercise in the management of their own affairs, not in regard to
speculation, but in regard to the permanent disposition of their funds, considering the
probable income, as well as the probable safety of their capital. Money managers
shall disburse cash or property from the fund to the board upon written request. Such
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written request shall constitute a certification that the distribution so requested is one
that the board is authorized to direct and the money manager should not be required
to investigate the application of such money by the board or its designee. No
distribution under this section may cause any part of the fund to be used for, or
diverted for, a purpose other than providing benefits to members and beneficiaries of
the Plan and defraying the reasonable expenses of administering the Plan.
(5) The board shall have a continuing duty to observe and evaluate the performance of
any money manager or other investment advisor retained by the board. The board
may, as part of its continuing duty to evaluate the performance of its money
managers, retain the services of a performance monitor who shall be responsible for
determining the appropriate performance benchmarks and for advising the board of
needed changes in its investment policy or asset allocation. Any such advisor shall
constitute a fiduciary of the Plan.
(g) Records to be maintained.
(1) Any money manager or investment advisor who has custody or control of any trust
property or who is otherwise employed, directly or indirectly, in the management of
Plan assets shall keep accurate and detailed accounts of all such activities, which
records shall be open to inspection and audit at all reasonable times by the city, the
retirement board, or their designees.
(2) The board shall keep accurate and detailed accounts of its assets and investments
and all such records shall be open for inspection and audit at all reasonable times by
the city, or its designees.
(Ord. No. 12111, § 1, 9-25-01; Ord, No. 13154, § 1, 4-22-10)
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
ten percent of each member's earnable compensation.
(2) The city shall pick up, rather than deduct, all regular contributions of members. The
city shall derive pickup amounts from the same source of funds which is used in
compensating members of the Plan and shall do so by reducing the earnable
compensation of each member. All pick up amounts shall be treated as employer
contributions for the purposes of determining tax treatment under the Internal
Revenue Code of 1954, as amended.
(3) The board shall certify to the appropriate city authority or officer responsible for
making up the payroll for members of the Plan, the proper proportion of each
member's earnable compensation which shall be picked up each pay period as well
as any additional amounts which shall be deducted for any member. In determining
the amount earnable by a member in each pay period, the board may consider the
rate of annual compensation payable to such member on the first day of each period
as continuing throughout such period, and the board may omit pickup of amounts from
earnable compensation for any period less than a full period. To facilitate pickup of
contributions, the required contributions may be modified by such an amount as shall
not exceed one -tenth of one percent of the annual earnable compensation which is
the basis upon which such pick up amount is to be made.
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(b)
(4) The proper authority or officer responsible for making up the payroll for members of
the Plan shall certify to the board, on each payroll, the amounts to be deducted or
picked up by the city for each member. Such amounts shall be deducted or picked up
by the city, and when deducted or picked up, shall be paid to the Plan and credited to
the active membership account for each respective member.
(5) Regular contributions shall be made, notwithstanding the fact that the minimum
compensation provided for by law for any member shall be reduced thereby. Every
member shall be deemed to consent and agree to the pick up of regular contributions
provided for herein, and payment of compensation less such contributions shall be a
full and complete discharge of all claims and demands whatsoever for service
rendered during the period of employment covered by such payment, except as to
benefits otherwise provided by this division.
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, 2011, 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, 2011 shall
be amortized by adding five years to the remaining years of each unfunded
actuarial accrued liability base. As of October 1, 2011, benefit improvements
for actives shall be amortized over 20 years. Benefit improvements for retirees
shall be amortized over 15 years. Actuarial gains and losses shall be amortized
over 20 years. Changes in actuarial assumptions and methods shall be
amortized over 20 years.
b. To the extent the actuarial liability plus normal cost is less than the actuarial
asset value, all prior amortization bases are considered fully funded.
(3) The actuarial method for evaluating assets shall be changed to a moving market value
average over five years beginning September 30, 2008. As of October 1, 2008, one-
year moving average shall be used; as of October 1, 2009, a two-year moving
average shall be used; as of October 1, 2010, a three-year moving average shall be
used, as of October 1, 2011, a four-year moving average shall be used, and
thereafter, a five-year moving average shall be used. Each year, starting with the
market value as of October 1, 2007, the expected return will be determined based on
the beginning of year market value and actual contributions and benefit payments at
the assumed interest assumption. One -fifth of the difference between the expected
market value return and the actual market value return is included in the actuarial
asset value at the valuation date. Four -fifths of the difference between the expected
market value return and the actual market value return is deferred in even increments
of 20 percent per year to each of the next four years as future adjustments to the
actuarial asset value. The preliminary actuarial asset value will be the sum of the
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actuarial asset value as of the previous valuation date plus the actual contributions
and benefit payments in the year ending on the current valuation date plus the
expected return on market value return plus one -fifth of the cumulative differences
between the expected and actual market value returns over the five years up to the
valuation date. The result cannot be greater than 120 percent of market value or less
than 80 percent of market value.
(4) The individual entry age normal cost method will be applied for costs as of October 1,
2008, and each October 1st thereafter, based on demographic and asset data as of
the previous October 1st adjusted for interest from that date to reflect payment timing.
The annual normal cost will be determined on the individual entry age normal method.
If the actuarial asset value exceeds the individual entry age accrued liability, such
excess shall be held as a reserve to offset any future unfunded actuarial accrued
liability. Under no circumstances will the total cost be determined to be less than zero.
The calculation for normal costs shall be performed separately by actuaries for the city
and for the Plan in accordance with the provisions of the foregoing paragraph. The
actuary for the Plan shall use the actuarial assumptions adopted by the board. The
actuary for the city may use any actuarial assumptions deemed appropriate by that
actuary. If the actuary for the Plan and the actuary for the city agree on the normal
costs contribution to be made by the city, that amount shall be contributed by the city.
If the two actuaries cannot agree on the normal costs contribution, they shall promptly
select an independent third actuary. If they are unable to agree on a third actuary, one
shall be selected by the American Academy of Actuaries or Conference of Consulting
Actuaries. The third actuary shall, as soon as practicable, submit to the board and the
commission a funding recommendation utilizing standard acceptable funding
techniques and assumptions. Thereafter, the commission shall fund the amount
recommended by either the actuary for the Plan or for the city, whichever
recommendation is closer to the recommendation of the third actuary.
(5) On or before May 15 of each year, the board shall certify to the city manager:
a. The amount of appropriation necessary to pay the normal costs and unfunded
liability contributions to the Plan for the next fiscal year, including the amount of
any benefits payable on account of any predecessor pension or retirement
fund; and
b. The amount of appropriation required to pay the noninvestment expenses of
the Plan for the next fiscal year.
(6) On or before May 15 of each year, the director of finance shall certify to the
appropriate fiscal officer of the Miami -Dade County Government, the amount payable
by such metropolitan government under the provisions of Act 59-203 of the General
Laws of Florida. Such amount shall consist of that proportion of the appropriation
certified by the board pursuant to paragraph (4) of this subsection as the total
earnable compensation of members who are employees of such metropolitan
government bears to the total earnable compensation of all members. Upon receipt of
such amount from the Miami -Dade County Government, the director of finance shall
cause the amount received, less that proportion included for noninvestment expenses,
to be paid into the benefit account, and such amount shall be included in the total
appropriation payable by the city to the Plan as required by this section.
(7) All contributions made by the city to the Plan for any given fiscal year shall be made
quarterly, in equal payments, on the first day of each quarter during the fiscal year in
question. If the amount of the city's contribution for normal costs has not been
determined by the initial payment date in any given fiscal year, the city shall make
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quarterly payments based upon the greater of (a) the prior year's contribution to
normal costs, or (b) the amount calculated pursuant to the final judgment in Gates v.
City of Miami, as amended.
(Ord. No. 12111, § 1, 9-25-01; Ord. No. 13090. § 2, 9-24-09; Ord. No. 13101, § 1, 9-29-09; Ord. No. 13203, § 2, 9-
27-10; Ord. No, 13343, § 1, 9-27-12)
Sec. 40-247. Accounts.
(a) Generally. There shall be two accounts within the Plan; the membership account and the
benefits account. Each account shall be operated in accordance with the provisions of this
section.
(b) Membership account.
(1) The membership account shall consist of the accumulated contributions of the
members of the Plan and the accumulated contributions of each member absent from
service. The membership account shall also include regular interest paid on member
contributions in accordance with the provisions of this section.
(2) All withdrawals of accumulated contributions, whether made at the request of a
member or paid to a legal representative or designated beneficiary of a deceased
member, shall be charged to the membership account.
(3) Upon the retirement of a member, or upon a member's election of a vested right to
retirement, an amount equal to the member's accumulated contributions shall be
transferred from the membership account to the benefit account.
Benefit account.
(1) The benefit account shall consist of all accumulated contributions transferred from the
membership account, all city contributions, all interest and dividends earned on fund
assets, all reserves for payment of Plan benefits and all other assets of the fund.
(2) On January 1 of each year, the board shall transfer from the benefit account to the
membership account, an amount sufficient to allow regular interest on the individual
balances in the membership account.
(3) All expenses of the Plan shall be chargeable to the benefit account. Such expenses
shall include, but are not limited to, payment of all retirement benefits to beneficiaries
of the Miami City General Employees' Retirement Plan, beneficiaries of the City of
Miami General Employees' and Sanitation Employees' Retirement Trust and
retirement allowances to any other persons who retired under the provisions of any
predecessor pension or retirement fund.
(d) The board, by uniform rule, may adopt alternate bookkeeping methodology for the
maintenance of accounts.
(Ord. No. 12111, § 1, 9-25-01)
(c)
Sec. 40-248. Physical examination; effect of pre -employment conditions.
(a) All employees, as a condition of entry into the Plan, shall agree to submit to a uniform
medical examination, as may be required by the board, for the purpose of determining the
existence of pre-existing medical conditions. In lieu of a board physical, an employee
consents to the board's access for the purposes of this section to any physical performed by
the city. No persons shall be denied entry into the Plan on the basis of any pre-existing
medical condition.
(b) In the event that the physical examination described in this section shall determine the
presence of a pre-existing medical condition, said condition shall be reported to the
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employee and recorded in the records of the board. Each employee shall acknowledge the
receipt of the medical report and execute a form, as prescribed by the board, indicating
knowledge of the pre-existing condition and an agreement that said condition cannot form
the basis of a service -incurred disability retirement unless it can be shown that the member
would have been entitled to a service -incurred disability retirement allowance on the basis of
aggravation of the pre-existing condition.
(c) In the event that a member believes the medical report is in error, the member may request a
review by the administrator within 30 days of receipt of notice of the physical examination
results. If the administrator's review does not satisfactorily resolve the question of the pre-
existing condition, the member may request a hearing before the board. Failure to request
such a review will not preclude a later challenge on this issue. The board shall prescribe
uniform rules for the conduct of such hearings.
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-249. Membership; members absent from service.
(a) The membership of the Plan shall include all employees as defined in this Plan, except
police officers and firefighters. Membership shall also include an employee who has been
absent from service for less than three years in a period of five consecutive years after last
becoming a member and who has not withdrawn his or her accumulated contributions. The
active membership of this Plan shall not include any member absent from service.
(b) Participation in the Plan is a mandatory condition for all employees except for those
employees who are precluded from participation in the Plan pursuant to section 40-351.
Acceptance of employment shall constitute authorization for the city to pick up contributions
from the compensation of the employee.
(c) Membership in the Plan shall end under the following conditions:
(1) Absence from service due to resignation, termination, budgetary reduction or layoff for
more than three years in any period of five consecutive years after last becoming a
member;
Becoming a member of any other city sponsored Plan;
End of appointment;
(2)
(3)
(4) Expiration of office;
(5) Death.
When membership ends, all creditable service previously earned becomes void. If the member
again becomes an employee of the city, the employee shall enter the Plan as a new member with
no credit for previous service, unless time is repurchased as provided in the Plan. Upon becoming a
retiree, a member shall be entitled to those rights earned as of the date of retirement or such
benefits as are specifically made applicable to retirees.
(Ord. No. 12111, § 1, 9-25-01; Ord. No. 13112, 10-22-09)
Sec. 40-250. Reserved.
Editor's note
Ord. No. 13112, adopted Oct. 22, 2009, repealed § 40-250 which pertained to right of certain
persons to reject membership and derived from Ord. No. 12111, § 1, adopted Sept. 25,
2001.
Sec. 40-251. Transfer of city employees to Plan.
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(a) In the event that a firefighter or police officer of the city who is a member of the City of Miami
Firefighters' and Police Officers' Retirement Trust ("retirement system") is reclassified to a
position other than those positions that are ineligible to participate in the Plan pursuant to
section 40-351 other than firefighter, police officer, the employee shall be automatically
transferred to membership in this Plan. Creditable service earned as a member of the
retirement system shall be deemed creditable service in this Plan.
(b) Outstanding loan balance. Any member of the public trust fund who has an outstanding loan
against his or her public trust fund account balance and who elects to transfer to the Plan
must repay said loan in full prior to transfer to the Plan.
(c) Commencing on the effective date of transfer to the Plan, a member who has transferred
from the retirement system or public trust fund as defined in section 40-250 shall make
regular contributions at the rate required by the Plan. Accumulated contributions credited in
the retirement system or public trust fund as defined in section 40-250 to the account of such
member shall be transferred to the membership account of the Plan and credited to the
member thereunder. There shall be transferred:
The employee/employer contribution account balance held in a public trust fund on behalf of
any section 40-250 defined employee who transfers membership to the Plan.
(d) If any member of the Plan has transferred from the retirement system or a section 40-250
public trust fund and his or her contributions pursuant to membership in the retirement
system or public trust fund cause accumulated contributions at the member's normal
retirement age to exceed the amount such accumulated contributions would have been had
the member been a member of the Plan during his or her entire period of service with the
city, such member shall be entitled to the return of the excess contributions upon retirement
or shall have his or her retirement allowance increased by the actuarial equivalent of the
amount by which his or her contributions exceed the full amount which would have been the
member's accumulated contributions had he or she been a member of the Plan during his or
her entire period of service with the city.
(Ord. No. 12111, § 1, 9-25-01; Ord. No. 13112, 10-22-09)
Sec. 40-252. Creditable service.
(a) Creditable service shall consist of all time spent in service since last becoming a member,
plus any other time for which creditable service is received pursuant to the provisions of this
division.
(b) The board shall determine by administrative rule the amount of service in any year which is
equivalent to a year of membership service. The board may not grant more than one year of
membership service for all service in any calendar year.
(c) The board may adopt rules and regulations to verify membership credit claimed by any
member.
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-253. Dismissal for willful misconduct.
(a) Upon a member's dismissal from employment for willful misconduct associated with the
duties or responsibilities of his or her employment or office with the city, the following shall
apply:
(1) All ownership rights, title, and property interest in such member's accumulated
contributions shall immediately vest in the member; and
(2)
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(2)
The dismissed member shall no longer be entitled to receive any benefit whatsoever
under the Plan.
The term "willful misconduct" as used in this section shall mean the commission of
any act which would constitute a forfeitable offense under Section 112.3173, Florida
Statutes.
(b) Should dismissal of an employee for willful misconduct city as defined in this section be
reversed by the city manager or by a court of final jurisdiction, the former employee, if he or
she again becomes a member, may elect to reconvey all ownership rights, titles and interest
in his or her accumulated contributions to the Plan and may elect to payback for time during
which the member was dismissed. Payments made to the Plan pursuant to this paragraph
shall be made in such manner as the board shall, by rule, prescribe.
(c) The board shall, by administrative rule, adopt a due process procedure to implement this
section.
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-254. Paybacks for membership credit.
Members shall have the right to receive membership credit in the Plan in accordance with
the provisions of this section. Each payback provided for in this section shall be independent of any
other payback and may, where appropriate, result in cumulative credits. If a member revokes the
payback election, is terminated, resigns or is otherwise separated from the city before the payback
is completed, the member shall only receive that portion of credited service purchased as of the
date of separation.
(1) Restoration of prior service credit for reemployed members.
a. Reemployed former member may restore previous membership service by
repaying the accumulated contributions withdrawn together with a uniform rate
of interest as determined by the board. This benefit is only available to persons
who separated from prior employment with the city other than by involuntary
dismissal.
b. The board shall, by uniform rule, promulgate an election form to be filled out by
employees wishing to exercise this option. The election form shall specify the
form of repayment. All repayments must be completed within five years of the
completion of the election form.
c. To receive full credit for the membership service permitted under this section,
the member must have completed the repayment of all contributions and
interest.
d. If the member is separated for more than three years the member shall be
eligible to combine prior and new service for the purpose of Rule of Seventy
(70) retirement, but prior service shall be paid at the benefit rate in effect at the
time of the first separation. If the member is separated less than three years, all
service will be combined for benefit calculation purposes. The member shall
again be an active member of the Plan on the date employment recommences
and the member shall make regular contributions to the Plan at the rate
prescribed by ordinance.
e. All rights under this section must be exercised in accordance with uniform rules
adopted by the board.
Credit for continuous service as a nonmember.
a.
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(4)
Any person who is now a member of the Plan who had prior service with the
city as a probationary, full-time temporary, or permanent employee, classified
or unclassified, but who at the time of that service was not a member of the
Plan, may purchase up to four years of that prior nonmembership service.
Contributions will be based on the member's current rate of earnable
compensation and the current contribution rate. Interest shall be charged at a
uniform rate as determined by the board.
b. The board shall promulgate a uniform policy for the election and purchase of
this benefit. All purchases of credit under this section must be completed within
five years of the date of election.
C. In the event that a member becomes disabled in the line of duty, contributions
paid under this section shall be refunded with regular interest, at a uniform rate
as determined by the board. Benefits purchased under this section may not be
used for calculating the minimum service necessary to receive an ordinary
disability retirement.
(3) Credit for military service.
a. Any member of the Plan whose service with the city is interrupted by military
service shall have all pension rights accorded veterans as provided by state or
federal law.
b. Any member who has served active military duty, but whose service is not
interrupted by that military duty, may purchase up to a maximum of four years
for the time spent in military service under the conditions set forth in this
section.
C. To be eligible for the four-year service credit set forth in subsection b., the
member must:
1. Have engaged in wartime service as declared by state or federal statute
or executive order of the President;
2. Military service under honorable conditions;
3. Be vested in this Plan;
4. Complete the election form promulgated by the board within the time
limits set forth by the board within the time limits set forth by uniform rule
of the board;
5. Make a contribution to the Plan equal to the member's rate of earnable
compensation at the date membership service first commenced and that
the contribution rate then in effect, together with four percent interest, be
compounded annually.
All such payments must be completed within five years of election to participate in the
benefits of this subsection.
d. If a member becomes disabled in the line of duty, the member shall have the
option of receiving a return of contributions and no military service credit or
accepting a service retirement and completing the purchase of the military
service credits by the payment of the remaining contributions.
e. If a member becomes disabled from causes other than service with the city, the
member shall have the option of receiving a return of contributions and no
military service credit or completing the purchase of the military service credits
by payment of the remaining contributions.
Credit for maternity/medical leave.
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a. No member who takes an unpaid leave of absence for maternity or medical
purposes under the Family Medical Leave Act (FMLA), shall suffer a break in
membership. All unpaid leaves of absence taken pursuant to FMLA shall be
treated as continuous service, regardless of any other limitation on service
within this Plan.
b. A member who takes an unpaid leave of absence for maternity or medical
leave may purchase membership credit not to exceed 180 days. If the member
requests Tight duty employment from the city but is denied such employment,
the amount of membership credit which may be purchased shall increase to
240 days.
C. Election to buyback for membership credit under this subsection shall be
available for 30 days after notification to the member by the board that such
buyback is available. The board shall, by uniform rule, establish procedures for
notification of members.
d. Contributions for this benefit shall be made in accordance with uniform rules
established by the board, but payback of all contributions must be completed
within one year. Interest shall be charged at a uniform rate as determined by
the board. Contributions shall be at the member's current rate of compensation
and the current rate of contribution. If a member fails to meet the qualifications
of this subsection, all contributions shall be returned and the member waives
the right to membership credit for this period.
(5) Restoration of service credit for prior continuous service. Any member with prior
service with the city whose membership in the Plan was delayed due to administrative
error, either by the board or the member which resulted in a delay in the
commencement of membership shall purchase said prior continuous service, without
limitation. Contributions shall be based on the rate of compensation and at the
contribution rate in effect on the date of the error. No interest shall be charged if the
error was caused by the city or the board. If the error is caused by the member, a
uniform rate of interest shall be charged, as determined by the board. The payback
shall be made in accordance with uniform rules established by the board and payment
must be completed within five years. In the event of a service -connected disability,
prior to the completion of the buyback, the member shall be offered the opportunity of
receiving either a return of contributions paid or the opportunity to complete the
buyback through the payment of the additional contributions. In the event of a refund,
contributions shall be refunded without interest. In the case of a nonservice-connected
disability prior to the completion of the buyback, the member shall be offered the
opportunity of receiving either a return of the contributions paid or the opportunity to
complete the payback through the payment of the additional contributions or reduction
of the disability benefit until the contributions are fully paid. In the case of a return of
accumulated contributions, said contributions shall be returned with interest, at a
uniform rate as determined by the board.
(6) Purchase of additional service upon retirement. A member in service who has
continuous service may, at time of retirement, purchase up to a maximum of three
whole creditable years of service based upon the present value as determined by the
actuary for the Plan. The purchase of the service years will be made by utilizing the
employee's available leave balance at time of retirement reduced by any required
federal withholding taxes. If the amount of the leave balance is insufficient to pay the
full cost of the three years, the member may make a lump sum purchase in cash for
the difference. The purchase of these years of creditable service shall be based upon
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the average final compensation of the member as defined in section 40-241. The
hourly rate applicable to the calculation of the leave balances shall be as specified
under the labor agreement applicable to the employee or, in the case of exempt
employees, the appropriate administrative policy of the city.
(7) Re-employment after an early retirement window. Should any member be reemployed
after leaving on an early retirement window, no enhancement shall apply to benefits
earned during the period of re-employment. All service retirement benefits earned
during the period of re-employment shall not apply to prior service and shall only apply
prospectively.
(Ord. No. 12111, § 1, 9-25-01; Ord. No. 13154, § 1, 4-22-10)
Sec. 40-255. Benefits.
(a) Service retirement.
(1)
(2)
A member in service may elect to retire on a service retirement upon the attainment of
retirement eligibility as defined in this section. An election to retire shall be made upon
a written application, prescribed by the board. Benefits shall be effective on the date
the application is approved in accordance with the administrative rules adopted by the
board.
A member who retires or separates from employment with ten or more years of
service or who has attained eligibility for service retirement, before October 1, 2010
shall be considered eligible for a service retirement upon attaining the earliest of the
following:
a. The completion of ten years of credited service and the attainment of age 55;
or
b. Rule of 70 retirement. The completion of a combination of years of creditable
service plus attained age equaling 70 points. To be eligible for this benefit, the
member must have completed not less than ten years of creditable service.
C. Effective September 1, 2010, and for a period of 30 days thereafter, an early
retirement program shall be implemented in accordance with this section. Any
member with ten or more years of credited service whose age plus years of
credited service equal 64 or more as of September 30, 2010, is eligible to elect
to retire and receive benefits under the service retirement provisions of
subsection (a). Any eligible member who retires under this early retirement
program must submit a request in writing, no later than September 29, 2010,
and retire and separate from City employment no later than September 30,
2010. Members who retire under this early retirement program may not
participate in the Deferred Retirement Option Plan (DROP) as provided in
subsection (I). This section shall have no further application or effect on and
after October 1, 2010.
(3) The service retirement benefit for persons retiring after October 1, 1998, shall be
equal to three percent of the member's average final compensation multiplied by the
number of years of creditable service through September 30, 2010. Effective October
1, 2010, the service retirement benefit for creditable service on and after that date
shall be equal to: for the first 15 years of creditable service, two and one-fourth
percent of the member's average final compensation multiplied by the number of
years of creditable service; for creditable service in excess of 15 years but less than
20 years, two and one-half percent of the member's average final compensation
multiplied by the number of years of creditable service; and for creditable service in
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(b)
excess of 20 years, two and three -fourths percent of the member's average final
compensation multiplied by the number of years of creditable service. The service
retirement benefit shall be based on a member's total creditable service and the
benefit multiplier in effect at the time the service is earned, multiplied by average final
compensation in effect at the time of retirement or separation from employment.
(4) A member, other than a member who is eligible for service retirement pursuant to
subsection (2), who retires on or after October 1, 2010 shall be considered eligible for
a service retirement upon attaining the earlier of the following:
a. Completion of ten years of creditable service and the attainment of age 60; or
b. Completion of thirty years of creditable service and the attainment of age 55.
C. Rule of 80 retirement. The completion of a combination of years of creditable
service plus attained age equaling 80 points. To be eligible for this benefit, the
member must have completed not less than 10 years of creditable service.
(5) Any member eligible for a service retirement may choose any of the optional
allowances provided in subsection (j).
(6) Notwithstanding any other provision of this Plan, any member who is employed and
not participating in the DROP on September 29, 2010 may elect to receive his/her
accrued benefit as of that date, in accordance with the provisions of the Plan in effect
on that date. Such members who elect to receive their accrued benefit as of
September 30, 2010, at a date prior to the normal retirement age provided in
subsection (4), 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.
Early service retirement.
(1) Any member who has 20 or more years of creditable service may elect to retire on a
retirement allowance which shall be the actuarial equivalent of the service retirement
allowance otherwise available to the member upon the attainment of the date the
member is eligible for service retirement in accordance with subsections (a)(2) or (a)
(4), as applicable at the date of early service retirement. Such election shall be made
upon a written application prescribed by the board. Benefits shall be effective on the
date the application is approved in accordance with the administrative rules adopted
by the board.
(2) A member eligible for early service retirement may choose any of the optional
allowances provided for in subsection (i) of this Plan.
(3) A member who has elected to retire on an early service retirement shall not be eligible
to participate in DROP.
(c) Vested right to retirement.
(1) If a member who is not entitled to retire on either a service retirement or early service
retirement, ceases to be an employee for any reason other than death or willful
misconduct prior to October 1, 2010, the member may elect to continue as a member
not in service and retire upon the subsequent attainment of age 55, or if a member
who is not entitled to retire on either a service retirement or early service retirement,
ceases to be an employee for any reason other than death or willful misconduct on or
after October 1, 2010, the member may elect to continue as a member not in service
and retire upon attainment of age 60; provided:
a. That at the time the member ceased to be an employee, the member had
completed ten years of creditable service; and
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(d)
b• That the member had not withdrawn his or her accumulated contributions.
c• The retirement benefit shall be the same as a service retirement benefit.
(2) If a member who elects to become a member not in service subsequently elects to
withdraw his or her accumulated contributions, the member not in service shall be
paid the amount of his or her accumulated contributions at the time he or she ceased
to be an employee, plus regular interest.
(3) If a member not in service dies prior to retirement, his or her designated beneficiary
shall be paid the amount of his or her accumulated contributions at the time the
member ceased to be an employee, plus regular interest to the date of the member's
death.
(4) If a member elects a vested right to retirement under any city retirement program and
thereafter again becomes an employee more than three years after separation, the
member shall be eligible, before October 1, 2010, to combine prior and new service
for the purpose of Rule of Seventy (70) retirement, but prior service shall be paid at
the benefit rate in effect when vested rights were elected. If the member is separated
for less than three years, all service will be combined for benefit calculation purposes.
The member shall again be an active member of the Plan on the date employment re-
commences and the member shall make regular contributions to the Plan at the rate
prescribed by ordinance. Such member shall be entitled to accrue retirement benefits
as if the member were a new entrant upon the date of subsequent employment,
except as the right to combine service as set forth in this paragraph and, in addition,
shall be entitled to receive a retirement benefit for his or her prior employment as
provided in this paragraph A second period of vesting shall not be required and the
member shall be eligible for all rights available to vested employees. This provision
shall also be applied to reemployed retired members, who have been retired for more
than three years.
(5) A member may choose any of the optional allowances provided for in subsection (j) of
this Plan at the time the vested retirement allowance commences.
(6) A member not in service shall not be eligible to participate in DROP.
Ordinary disability retirement.
(1) Any vested member of the Plan who becomes permanently and totally incapacitated
for further performance of duty with the city from a cause other than the performance
of duty shall be eligible for an ordinary disability retirement.
(2) A member shall be deemed disabled for the purposes of this section if they are
permanently and totally unable to engage in any useful and efficient service within the
city workforce due to a physical or mental impairment.
(3) No member may receive an ordinary disability retirement on the basis of a pre-existing
medical condition, unless the disability would have occurred regardless of that pre-
existing condition. The board, as part of the disability review process, shall determine
whether a vacant position exists within the city's workforce, consistent with the
member's training, skill and medical limitations. If the member is capable of
performing any such vacant position and the member refuses the assignment, that
refusal shall be grounds for denial of an ordinary disability retirement. Nothing in this
section shall require the city to create a job where none presently exists or to accept
an employee who lacks the training or skills necessary to perform any such vacant
position.
(4) Benefits under this section shall commence on the date disability is determined to
exist by the board and shall continue for the life of the member. Benefits shall be paid
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(e)
monthly and the member shall not be eligible for a return of accumulated contributions
or for any survivorship or other payment option provided under this Plan.
(5) The procedure for determining disability shall be as set forth in this Plan for the
determination of service -incurred disability.
(6) The board of trustees shall have the continuing right to require disabled members to
submit to a medical examination when the board has reason to believe that the
disabled member is committing a fraud on the fund.
(7) Benefits payable under this section shall be the greater of 90 percent of the product of
the benefit multiplier in effect at the time the service is earned multiplied by the
number of years of credited service; or 30 percent of the member's average final
compensation.
(8) Upon finding that a member is no longer disabled as defined in this Plan, ordinary
disability benefits shall cease, and the member shall be eligible for a regular service
retirement as if he had retired on the date his disability retirement benefits
commenced.
(9) A DROP member shall not be entitled to receive an ordinary disability retirement.
Accidental disability retirement —Job injury.
(1) A member shall be disabled under the terms of this section if the member has
suffered an injury or illness arising out of performance of service for the city and which
renders the member permanently and totally disabled for useful and efficient service
with the city.
(2) A member shall be deemed permanently and totally disabled when he or she is totally
unable to engage in any useful and efficient service within the city due to a physical or
mental impairment which is the natural and proximate result of an accident, injury or
illness which occurred while in the actual performance of duty; provided, however, that
said accident was without gross negligence on the part of the member.
(3) A member shall be eligible for an accidental disability retirement from the date of entry
into the Plan. Application for disability retirement shall be made on a form prescribed
by the board of trustees. The member shall execute such medical releases as are
necessary to permit the board to review the medical records needed to determine the
question of disability and to discuss said records at a public meeting. Upon receipt of
an application for a disability, the board shall refer the application to its physician for
review. The applicant for a disability shall be required to submit to such medical
examinations as the board appointed physician shall deem necessary. The board
appointed physician, and any referring specialists, shall report their findings to the
board. The report shall include a determination, to the extent reasonably possible, of
the origin of the disability, whether the disability is permanent and whether the
disability is total. In making those determinations, the physician(s) shall be bound by
the definition of disability set forth in this Plan.
(4) Upon receipt of the report of the board's physician(s), the board of trustees shall
schedule a public hearing at which time the board shall review all medical reports,
together with such documentary evidence as the applicant may wish to submit. The
board shall conduct a preliminary determination as to whether the member is
permanently and totally disabled based upon the written documentation presented. If
the board does not grant the application based on the written documentation, it shall
inform the applicant in writing of the reasons for the denial of the application. The
member may, within 30 days of receipt of the board's preliminary denial, request a full
evidentiary hearing before the board. Said hearing will be conducted consistent with
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the principles of due process and the rules of evidence generally applicable to
administrative proceedings shall apply. The board shall have the power to issue
subpoenas compelling the attendance of witnesses. At said hearing, the applicant
may present such oral and written evidence as the applicant deems necessary to
establish its burden of proof. The board may appoint special counsel as an advocate
to cross-examine witnesses and to offer argument in opposition to the application. The
attorney for the board shall not serve both as advocate and as advisor to the board in
the same proceeding. The applicant and the board shall have the right to examine and
cross-examine all witnesses. The decision of the board shall be based solely upon the
evidence presented and the law applicable to this Plan. Following the conclusion of
the hearing, the board shall render an opinion in writing setting forth the reasons for
the grant or denial of the benefit.
(5) The board may prescribe rules of procedure to implement the provisions of this Plan
relating to the conduct of disability hearings.
(6) No applicant for an accidental disability retirement may receive benefits under this
section if the accident, injury or illness is shown to have occurred due to the gross
negligence on the part of the member. The term "gross negligence" shall be defined
as willful, wanton or malicious conduct on the part of the member demonstrating a
total disregard for human life, safety and property.
(7) Except for disabilities arising from the causes outlined in subsection (f), a member
who is granted accidental disability retirement shall receive a benefit equal to 662/3
percent of the member's average final compensation or 662/3 of the member's
compensation in the year immediately preceding the member's disability, whichever is
greater. The benefit shall be paid yearly, in monthly installments, for life of the
member. Members receiving a benefit under this section shall not be eligible for a
return of contribution nor for optional allowances provided in this Plan under
subsections (h) and (i).
(8) Upon the death of a member who has received an accidental disability the spouse of
the member who was designated by the member on the date of retirement as said
member's spouse shall receive payment of an amount equal to 40 percent of the
member's monthly retirement allowance during the lifetime of the spouse.
(9) The board of trustees shall have the continuing right to require disabled members to
submit to a medical examination when the board has reason to believe that the
disabled member is no longer entitled to receive benefits from the fund. If the
examination reveals the member is no longer entitled to receive disability benefits, the
benefits shall cease and, if vested, the member will be eligible for a regular service
retirement as if he had retired on the date his disability retirement benefits
commenced. The board has discretion to exercise this power as the circumstances
warrant.
(10) Any benefits received from this Plan shall be reduced by the amount of workers'
compensation indemnity benefits received by the member to the extent that the sum
of the worker's compensation benefits and the benefits received under this Plan
exceeds the average monthly compensation of the member at the time of disability.
The board shall, by uniform rule, prescribe a procedure for treatment of lump sum
workers' compensation indemnity payments as if they had been received on a
monthly basis.
(f) Service -incurred disability retirement —Heart disease, hypertension, tuberculosis.
(1)
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Any member who becomes totally and permanently incapacitated for duty as a result
of heart disease, hypertension or tuberculosis, shall be presumed to have a service -
incurred disability in the line of duty, unless a physical examination upon entering the
plan revealed that such condition existed at that time or competent substantial
evidence determines that the injury is not the result of a workplace injury. Such person
may be eligible for a service -incurred disability provided that a physician retained by
the board, after a medical examination of such member, certifies that such member is
totally incapacitated for duty. Such person shall receive benefits equal to those paid
for an ordinary disability, with a minimum benefit of 40 percent of average final
compensation. Upon the death of a member who has received a service -incurred
disability retirement no future pension benefits will be due to any beneficiary.
(2) A DROP participant shall not be entitled to receive a service incurred disability
retirement.
(g) Ordinary death benefit; post -retirement death benefits.
(1)
(2)
If a member in service who has completed three or more years of creditable service,
whether or not the member is eligible for normal or early retirement, dies from a
nonduty related cause, a lump sum benefit equal to 50 percent of the member's
earnable compensation for the year immediately preceding death shall be paid,
together with the return of the member's accumulated contributions plus interest. If the
member has completed less than three years of credited service at the time of death,
there shall be a return of contributions with interest only. The benefit shall be paid to
any person nominated in writing by the member. In the absence of a written
nomination, or if the person nominated is deceased or cannot otherwise be located,
the member's estate shall be deemed the nominated beneficiary.
A member in service on October 1, 2010 who is eligible for any form of early or normal
retirement under the terms of this Plan dies prior to retirement from a nonduty related
cause, the member shall be treated as if he or she had retired on the date preceding
death. The member's spouse shall have the option to receive:
a.
b.
c.
Forty percent of the member's monthly retirement allowance which would have
been payable at normal retirement date, without actuarial reduction together
with 50 percent of the member's compensation in the year immediately
preceding the member's death; and
In the event the monthly retirement allowance provided for in subsection a. is
chosen, and the member has served as city manager, assistant city manager,
city clerk, assistant city clerk, executive secretary of the civil service board, city
physician, city attorney, assistant director of the law department, or as director
or assistant director of any department or office established by the City Charter,
or by ordinance established by the City Charter, for a combined period of at
least three years prior to May 23, 1985, an additional one percent of the
member's final average final compensation multiplied by the number of years of
service in that position, up to a maximum of ten years shall be paid to the
surviving spouse.
A return of the member's accumulated contributions, with accumulated interest
together with 50 percent of the member's compensation in the year
immediately preceding the member's death. This benefit is payable on behalf of
any member, whether or not there is a surviving spouse. In the absence of a
surviving spouse, the benefit will be paid to the person designated in writing to
the board by the member, or if no such designation exists or the designated
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(h)
beneficiary has predeceased the member, then the benefit will be payable to
the member's estate; or, in the case of a surviving spouse.
(3) The payments under subsections a. and b. shall be paid yearly in monthly
installments.
(4) If a retired member dies prior to receiving 12 monthly retirement payments and prior to
the effective date of any optional allowance permitted by this Plan, there shall be a
benefit payable in a lump sum equal to the unpaid difference of 12 monthly payments.
This benefit may be paid to any person nominated in writing by the member. In the
absence of a nomination, or if the person nominated has died or is otherwise
unavailable, the member's estate shall be deemed the nominated beneficiary.
(5) A member in service who is eligible for any form of early or normal retirement under
the terms of this Plan dies prior to retirement and on or after October 1, 2010 from a
nonduty related cause, the member shall be treated as if he or she had retired on the
date preceding death. If such member is married at the time of death and has not
elected an optional allowance in accordance with subsection (j), the member will be
presumed to have elected Option 6c, providing for payment of 40 percent of the
member's monthly retirement allowance to the member's spouse during the lifetime of
such spouse.
Service -incurred death benefit. If a member in service dies from a cause arising in the line of
duty, other than the gross negligence of the member, there shall be a service -incurred death
benefit equal to one-half of the member's average final compensation, which shall be paid
yearly in monthly installments, together with the member's accumulated contributions plus
interest, which shall be payable in a single sum. This benefit shall only be paid to the
following persons in the order set forth below:
(1) To the spouse of the member until the death of the spouse;
(2) If there is no spouse or if the spouse dies before the youngest child of the deceased
member has attained the age of 18, then to the children of the member under the age
of 18 in equal shares. As each childreaches the age of 18, the shares of the
remaining children shall be adjusted accordingly;
(3) If there are no spouse or children under the age of 18 years living at the time of the
member's death, then payment may be made to the dependent father or dependent
mother for life. The board shall determine, by uniform rule, proof necessary to
establish dependency. If both the dependent father and mother are living, the benefit
shall be shared equally. Upon the death of one, the living dependent parent shall
receive the entire benefit. If there is no spouse, dependent child or dependent parent
living at t time of the member's death, the member's estate shall receive an amount
equal to 50 percent of the member's compensation for the year immediately preceding
the member's death, together with a return of accumulated contributions plus interest.
(I) Return of contributions.
(1) If a member ceases to be an employee, a member may demand a return of
accumulated contributions. Receipt of said contributions shall constitute a full
discharge of all rights under the Plan and any creditable service is waived.
(2) If a member has been granted a retirement benefit, the member shall not be eligible to
receive accumulated contributions unless provided for as an optional allowance under
the terms of this Plan or any other prior Plan of the city.
G) Normal form of benefit and optional allowances.
(1) Effective September 30, 2010, for members who retire on or after October 1, 2010,
the normal form of benefit shall be a life annuity. A member may receive payment of
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(k)
(I)
retirement benefits under the Plan in accordance with the options set forth in this
section, that are actuarially equivalent to the normal form of benefit. The board, by
rule, shall prescribe the method for selecting payment options consistent with the
provisions of this section.
(2) The options permitted under the plan are:
Option 2: Equal payment survivor annuity. A member may receive a reduced
retirement allowance throughout his or her life with an equal sum being paid to the
member's designated beneficiary at the death of the member. For members who retire
before October 1, 2010 and choose this option for a surviving spouse, the reduction
shall be ten percent of the member's benefit; and if any person other than a surviving
spouse is chosen as the beneficiary, the reduction shall be based on the actuarial
equivalent of the normal form of benefit. For members who retire on or after October
1, 2010, the reduction shall be based on the actuarially equivalent sum.
Option 3: One-half payment survivor option. A member may receive a reduced
retirement allowance payable for the life of the member with one-half of the member's
benefit being paid to a designated beneficiary at the death of the member. For
members who retire before October 1, 2010 and choose this option for a surviving
spouse, the reduction shall be two percent of the member's benefit; and if any person
other than a surviving spouse is chosen as the beneficiary, the reduction shall be
based on the actuarial equivalent of the normal form of benefit. For members who
retire on or after October 1, 2010, the reduction shall be based on the actuarially
equivalent sum.
Option 6a: A member may, in lieu of any other benefit from this Plan, receive a return
of contributions, excluding amounts picked up from the member's earnable
compensation and credited to the COLA fund between June 23, 1985 and September
30, 1993. Under this option, the member shall also receive a monthly service
allowance equal to one-half of the amount to which the member would have been
entitled under this plan. This option has no survivorship benefit.
Option 6b: Life annuity. A member who retires on or before October 1, 2010 may
receive the normal monthly service retirement allowance plus an additional five
percent payable for the life of the member, with no survivorship benefit. The payment
of this benefit shall be guaranteed for at least one year.
Option 6c: Surviving spouse annuity. A member who retires before October 1, 2010
may receive an unreduced retirement payment through the life of the member and
upon the member's death the surviving spouse shall receive forty percent of the
member's retirement allowance payable during the lifetime of the spouse. Such a
member who desires to leave a greater survivorship percentage to a surviving spouse
may elect Options 2 or 3. A member who retires on or after October 1, 2010 may elect
to receive an actuarially reduced retirement payment for the life of the member and
upon the member's death the surviving spouse shall receive forty percent of the
member's retirement allowance payable during the lifetime of the spouse.
Change in beneficiary. Any member who elects a survivorship option for a spouse pursuant
to subsection (1), may designate a new spousal beneficiary in accordance with procedures
established by the board; provided, that an actuarial valuation will be made following such
election, and the benefit for the retiree will be recalculated so that it is the actuarial
equivalent of the benefit payable to the original spouse. It is intended that the Plan will pay
only one survivor benefit for any member of the Plan and will not incur an increase in benefit
costs by reason of a change in designated beneficiary.
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Deferred retirement option program. Effective upon ratification of the A.F.S.C.M.E., Local
1907, labor agreement for October 1, 2001 through September 30, 2004, the DROP of the
retirement plan shall be available for general employees and shall consist of a FORWARD
DROP and a BACDROP. Any general employee who has reached age 55 with ten years of
creditable service, or who has attained a combination of age plus years of creditable service
equal to 70, shall be eligible to participate in the DROP.
(1) Election to participate. Upon election of participation in the DROP, by using forms and
procedures as prescribed by the board of trustees, a member's creditable service,
accrued benefits, and compensation calculation shall be frozen and shall be based on
the member's average final compensation as the basis of calculating the DROP
payment. Upon commencement of participation in the DROP, the member's
contribution and the city contribution to the retirement plan for that member shall
cease as the member will be earning no further service credit. The member shall not
acquire additional pension credit for the purposes of the pension plan but may
continue city employment for up to a maximum of 48 months.
(2) Maximum participation. The maximum period of participation in the DROP, is 48
months. Once the maximum participation has been achieved, the participant must
terminate employment.
(3) Creation of individual account. For each general employee electing participation in the
DROP, an individual account shall be created.
(4) Earnings on DROP account. The board of trustees of the retirement plan shall
establish, by administrative rule, a series of investment vehicles which may be chosen
by participants in the DROP. Any losses incurred on account of the option selected by
the participant shall not be made up by the city or the GESE trust fund, but any such
loss shall be borne by the participant only. Upon participation in the DROP, the
member shall make a selection of the earnings program on forms provided by the
board. All interest shall be credited to the member's DROP account.
(5) Distribution of DROP benefits. Upon conclusion of a period of participation in the
DROP not to exceed the maximum set forth in subsection (2), the participant shall
terminate employment. Upon termination of employment, a participant may receive
payment from the DROP account in the following manner:
a. Lump sum distribution;
b. Periodic payments;
c. Rollover of the balance to another qualified retirement plan, IRA, or an Internal
Revenue Code Section 457 Plan; or
d. An annuity.
A participant may defer payment until the latest date authorized by Section 401(a)(9)
of the Internal Revenue Code.
(6) Drop participation shall not affect any other death or disability benefit provided to a
member under federal law, state law, city ordinance, or any rights or benefits under
any applicable collective bargaining agreement.
(7) If a DROP participant dies before the DROP account balances are paid out in full, the
person(s) designated by such DROP participant shall receive such DROP account
balances in accordance with the DROP participant election in effect at the time of
death.
(8) Any employee who enters into a DROP agreement shall be bound by the terms and
conditions of that agreement.
(9)
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Forward DROP. The date of entry into the FORWARD DROP shall be the beginning
of a pay period. Payment shall be made by the retirement plan into the participant's
DROP account in an amount equal to the regular monthly retirement benefit which the
participant would have received had the participant separated from service and
commenced the receipt of benefits from the plan. The amount of the monthly benefit
shall be determined based on the creditable service, average final compensation, and
retirement option selected in accordance with this section. Upon conclusion of a
period of participation in the DROP not to exceed the maximum set forth in subsection
(2), the participant shall terminate employment with the city.
Election of a FORWARD Drop Program precludes participation in a BACDROP
program.
(10) BACDROP. A general employee may elect to BACDROP to a date no further back
than the date of the member's retirement eligibility date. The BACDROP period must
be in 12-month increments, beginning at the start of a pay period, not to exceed 12
months. Participation in the BACDROP does not preclude participation in the
FORWARD Drop program.
The benefits for purpose of the BACDROP will then be actuarially calculated to be the
equivalent to the benefit earned at the date of retirement. Said calculation will consist
of the present value of benefits being equal to the actuarially reduced benefit, plus a
lump sum with interest, as determined by the retirement plan's actuary. Participant
contributions will not be returned for the period of time covered by the BACDROP
program.
The lump sum as calculated by the retirement plan's actuary will be based on the
assumed investment return of the fund without discount for mortality and deposited
into the newly created DROP account.
DROP incentive program. Any member who is a DROP participant as of October 1,
2009, may elect to participate in the DROP incentive program by completing the
necessary election documentation no later than October 15, 2009. Effective October
22, 2009 any member in DROP or eligible to retire, may participate in the extended
DROP incentive program by completing the necessary election documentation no
later than November 6, 2009. Participation in the DROP incentive program and the
extended DROP incentive program is as follows:
a.
The DROP incentive program or extended DROP incentive program participant
may, upon separating city employment, elect to either receive:
1. A lump sum in the amount of $25,000.00, or
2. A lump sum in the amount of $7,200.00 and receive a 100 percent
subsidy of insurance for two years from date of separation. The
insurance shall be based on an HMO plan tier of employee plus one.
(12) Reserved.
(13) Reserved.
(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
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1, 2013 or vested prior to October 1, 2010, 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 three percent 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 subsection 40-255(j) 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. Bargaining unit
members will be eligible to revoke their backdrop election one time, but within
one month of their election. However, if a bargaining unit 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.
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 seven year backdrop. The board of
trustees of shall develop operational rules for the implementation of this
provision.
(m) Reemployment of retirees. Except as expressly provided herein, should any retiree be
reemployed by the city into a regular, permanent, full-time employment position as defined in
section 40-241, the benefits payable under this Plan shall be suspended during the period of
reemployment. Upon termination of the period of reemployment with the city, benefits shall
be automatically restored, as provided for in this Plan, on the first day of the month following
the termination of reemployment. No additional vesting period shall be required. Effective
November 1, 2002, this section shall not apply to city commission and mayoral assistants
and secretarial staff position, as described in Civil Service Rule 1, Sec. 1.2(a), authorized in
the city budget for the offices of the mayor and members of the city commission, or to any
employment other than with the city. Employees in the above job classifications may opt to
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continue collecting their pensions during their reemployment, but they may not accrue any
further pension service credit. This section shall not apply to retirees who enter into legal
agreement with the city either through written contracts or otherwise for services not defined
as full-time, permanent employees of the city.
(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 of benefit in effect on that date. Effective September 30, 2012, member
retirement allowances shall not exceed 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, any employee who has an accrued benefit in excess of $80,000.00
annually on the effective date shall retain that benefit, but shall not accrue any additional
benefits after that date.
(Ord. No. 12111, § 1, 9-25-01; Ord. No. 12185, § 2, 2-14-02; Ord. No. 12202, § 2, 3-27-02; Ord. No. 12249, § 1, 6-
27-02; Ord. No. 12753, § 1, 1-26-06; Ord. No. 13099, § 1, 9-24-09; Ord. No. 13109, § 1, 10-22-09; Ord. No. 13154,
§ 1, 4-22-10; Ord. No. 13192, § 1, 8-31-10; Ord. No. 13203, § 2, 9-27-10; Ord. No. 13343, § 1, 9-27-12)
Sec. 40-256. Cost -of -living allowance.
A cost of living (COLA) allowance shall be paid to beneficiaries of the Plan as follows:
(1) Every October 1, there shall be calculated a four percent COLA benefit equal to four
percent of the benefit payable at that time. There shall be a minimum COLA benefit of
$54.00 per year and a maximum COLA benefit increase of $400.00 per year provided
the retiree's first anniversary of retirement has been reached.
(2) Retirees exercising the return of contributions and reduced pension option shall
receive a minimum COLA benefit of $27.00 per year and a maximum COLA benefit of
$200.00 per year, provided the retiree's first anniversary of retirement has been
reached.
(3) COLA participation for DROP members. Eligibility for payments for cost of living
adjustment (COLA) shall commence when a member has reached the first
anniversary of retirement. When that occurs, the COLA shall be paid into the
member's DROP account in monthly installments for the Forward DROP until a
member has actually separated from employment from the city and in lump sum to the
member's DROP account for the BACDROP member upon separation from
employment. For the purpose of complying with Section H(2)(g) of the Second
Amended Final Judgment in Gates, the employee's "Date of Retirement" shall be the
date Forward DROP is entered or the date to which the member elects to BACDROP.
(4) The board shall administer COLA payments and COLA assets shall be deemed an
integral part of the trust for which separate accounting is not required.
(Ord. No. 12111, § 1, 9-25-01; Otd. No. 12202, § 2, 3-27-02)
Sec. 40-257. Adjustment in benefits.
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Members who belonged to the Miami City General Employees' Retirement Plan, presently
known as the City of Miami General Employees' and Sanitation Employees' Retirement Trust, shall
continue to be subject to the following adjustments in benefits:
Any member who, on or before May 23, 1985, had a vested right to receive an additional
retirement allowance under the provisions of the Miami City General Employees' Retirement
Plan, presently known as the City of Miami General Employees' and Sanitation Employees
Retirement Trust, which benefit was previously set forth in former section 40-235(A)(3)(a) of
this Code (repealed June 13, 1985), shall be entitled to such additional benefit upon service
retirement, early service retirement or "rule of 75" or "rule of 70" retirement pursuant to this
division. A member shall be deemed to have a vested right if said member, on or before May
23, 1985, was serving in any of the capacities enumerated in former section 40-235(A)(3)(a)
and thereafter continued to serve in such capacity uninterruptedly for a total combined period
of not less than three years. Those members having such vested right may only continue to
earn credit for such allowance up to a combined period of ten years' service.
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-258. Assignments and loans prohibited.
The present or future right of a person to moneys in the fund or to a retirement allowance, an
optional allowance, a death benefit, the return of contributions, or any other right accrued or
accruing to any person under the provisions of this division, shall be unassignable, and shall not be
subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency law or any
other process of law whatsoever, except with respect to alimony, child support, or medical
payments to a former spouse. Loans to participants are prohibited.
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-259. Protection against fraud.
Whoever, with intent to deceive, shall make any statements or reports required under this
division which are untrue or shall falsify or permit to be falsified any record of this Plan, shall be
punished as provided in section 1-13 of this Code.
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-260. Errors.
Should any change or error in Plan records be discovered or result in any member or
beneficiary receiving from the Plan more or less than he or she would have been entitled to receive
had the records been correct, the board shall have the power to correct such error and, as far as
possible, adjust the payments in such a manner that the actuarial equivalent of the benefit to which
such member or beneficiary was correctly entitled shall be paid.
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-261. Bonding; fiduciary insurance.
(a) Prior to exercising custody or control of any funds or property of the Plan, every fiduciary of
the Plan and every person who handles funds or other property of the Plan shall be bonded.
Such bond shall provide protection to the Plan against loss by reason of acts of fraud or
dishonesty on the part of the bonded individual, directly or through connivance with others.
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(b) The board shall purchase insurance for the Plan and for the members of the board of
trustees to cover liability or losses occurring by reason of an act or omission of a fiduciary,
providing, however, that such insurance permits recourse by the insurer against the fiduciary
in case of a breach of a fiduciary obligation by such fiduciary.
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-262. Compliance with the Internal Revenue Code.
(a) It is the intention of the city and of the board that the Plan remain at all times a qualified Plan,
as that term is defined under the Internal Revenue Code.
(b) No member's annual benefit may exceed the amounts permitted under Section 415 of the
Internal Revenue Code as amended, including cost of living adjustments under Section 415
(d).
(c) Compensation in excess of limitations set forth in section 401(a)(17) of the Internal Revenue
Code shall be disregarded. The limitation on compensation for an eligible employee shall not
be less than the amount which was allowed to be taken into account hereunder as in effect
on July 1, 1993. The Term "eligible employee" means an individual who was a member
before the first plan year beginning on or after January 1, 1996.
(d) In no event may a member's retirement benefit be delayed beyond the later of April 1st
following the calendar year in which the member attains age 70' , or April 1st of the year
following the calendar year in which the member retires.
When a distribution of the participant's entire interest is not made in a lump sum, the
distribution will be made in one or more of the following ways: over the life of the participant; over
the life of the participant and designated beneficiary; over a period certain not extending beyond the
life expectancy of the participant; or over a period certain not extending beyond the joint life and last
survivor expectancy of the participant and a designated beneficiary.
(e) If the distribution has commenced before the participant's death, the remaining interest will
be distributed at least as rapidly as under the method of distribution being used as of the
date of the participant's death.
The method of distribution, if the participant dies before distribution is commenced, must
satisfy the following requirements:
(1) Any remaining portion of the participant's interest that is not payable to a beneficiary
designated by the participant will be distributed within five years after the participant's
death;
(2) Any portion of the participant's interest that is payable to a beneficiary designated by
the participant will be distributed either: (i) within five years after the participant's
death; or (ii) over the life of the beneficiary, or over a period certain not extending
beyond the life expectancy of the beneficiary, commencing not later than the end of
the calendar year following the calendar year in which the participant died (or, if a
designated beneficiary is the participant's surviving spouse, commencing not later
than the end of the calendar year following the calendar year in which the participant
would have attained age 70-%).
(f) This subsection applies to distributions made on or after January 1, 1993. Notwithstanding
any provision of the plan to the contrary that would otherwise limit a distributee's election
under this subsection, a distributee may elect, at the time and in the manner prescribed by
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the Plan administrator, to have any portion of an eligible rollover distribution paid directly to
an eligible retirement plan specified by the distributee in a direct rollover.
(1)
For the purposes of this section and section 40-266 of this Plan, the following words
and phrases shall have the meanings indicated:
a. "Eligible rollover distribution" is any distribution of all or any portion of the
balance to the credit of the distributee, except that an eligible rollover
distribution does not include:
2.
3.
Any distribution that is one of a series of substantially equal periodic
payments (not Tess frequently than annually), made for the life (or life
expectancy) of the distributee, or the joint lives (or joint life
expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more;
Any distribution to the extent such distribution is required under Section
401(a)(9) of the Internal Revenue Code; and
The portion of any distribution that is not includable in gross income.
b. "Eligible retirement plan" is an individual retirement account described in
Section 408(a) of the Internal Revenue Code, an individual retirement annuity
described in Section 408(b) of the Internal Revenue Code, an annuity plan
described in Section 403(a) of the Internal Revenue Code, or an eligible
defined compensation plan described in Section 457(b) of the Internal Revenue
Code which is maintained by an eligible employer described in Section 457(e)
(i)(A) of the Internal Revenue Code, that accepts the distributee's eligible
rollover distribution. However, in the case of an eligible rollover distribution to
the surviving spouse, an eligible retirement plan is an individual retirement
account or individual retirement annuity.
C. "Distributee" includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse is a distributee with regard
to the interest of the spouse.
d. "Direct rollover" is a payment by the Plan to the eligible Plan specified by the
distributee.
(Ord. No. 12111, § 1, 9-25-01; Ord. No. 12181, § 1, 1-24-02)
Sec. 40-263. Distribution of marital interests in the plan; intervention in legal
proceedings affecting the Plan.
(a) In the event that the board is served with a domestic relations order or other legal process
purporting to require the payment of any portion of a member's benefit to another person as
a result of a dissolution of marriage, the board shall cause such order to be reviewed to
determine compliance with the provisions of the Plan.
(b) The board of trustees shall be authorized to intervene in any such dissolution of marriage
proceeding to ensure that such domestic relations order is otherwise consistent with the
distribution of an interest in a public employees retirement plan under state law.
(c) Any cost associated with the modification or correction of such domestic relations orders
shall be the responsibility of the Plan member.
(d) The board shall be authorized to seek intervention as provided by law in any legal
proceedings which, in the opinion of the board, affects the substantial interests of the Plan.
(e) The parties may consent to the entry of an order distributing benefits in a manner not
otherwise inconsistent with the terms of the Plan.
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(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-264. General conditions.
(a) The City of Miami General Employees' and Sanitation Employees' Retirement Trust may sue
or be sued as an entity.
(b) The city commission shall have continuing power to amend or supplement this division, but
no amendment shall be adopted which will reduce the then accrued benefits of members or
beneficiaries covered by accumulated reserves, which reserves shall constitute a trust fund
for the payment of such benefits.
(Ord. No. 12111, § 1, 9-25-01)
.Sec. 40-265. Excess benefit plan.
(a) The excess retirement benefits above the limits permitted by the Internal Revenue Code
shall be as follows:
(1) Funded from the City of Miami General Fund; and
(2) Paid annually concurrently with the city's annual contribution to normal pension costs,
which shall cause the city to realize a reduction in normal pension costs in the same
amount; and
(3) Be deposited in separate accounts for each respective plan to receive the city's
excess retirement benefit contributions, which accounts shall be separate and apart
from the accounts established to receive the city's normal pension contributions for
each retirement trust;
.(b) The board of trustees for General Employees' and Sanitation Employees' (GESE) is
appointed as the committee to administer the Excess Benefit for the GESE retirees.
(c) The actuaries for the GESE Board of Trustees shall calculate the amounts necessary to fund
the defined benefit plans giving effect to the reductions caused by implementation of Section
415 of the Internal Revenue Code.
(d) The excess benefits shall be paid to each eligible member of the Plans on a monthly basis in
an amount equal to the difference between the allowable pension to be paid under the
Internal Revenue Code and the amount of the defined benefit granted eligible members
pursuant to the provisions set forth in the Code.
(e) Should additional retirements occur during the year where the eligible member's retirement
benefit exceeds the Section 415 limits, the GESE Board of Trustees shall calculate the
additional excess benefit amount required for the remainder of the fiscal year and should
such amount exceed the amount available from the funds provided for the fiscal year, the
GESE board of trustees shall notify the city of the additional funds required.
(f) Upon the city's receipt of notice of the additional funds required, the city shall forward the
additional funds required. The requirement for additional funds paid by the city to fund the
Excess Benefit Plan shall be reflected as a reduction in the city's annual contribution of
normal pension costs for the following year.
(Ord. No. 12111, § 1, 9-25-01)
Sec. 40-266. Transfer of accumulated leave.
(a) Members eligible to receive accumulated sick leave, accumulated vacation leave or any
other accumulated leave payable upon retirement or separation (including DROP) may elect,
not later than the year prior to retirement to have the leave transferred to the Plan in
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accordance with the respective collective -bargaining -agreement, if applicable. Members on
whose behalf leave has been transferred may elect one of the following options within 30
days of retirement/separation. Members failing to elect a distribution option within 30 days of
retirement/separation will be deemed to have elected Option 1 below:
(1) Receive a lump sum equal to the transferred leave balance, or
(2) Transfer the entire amount of the transferred leave balance directly to any eligible
retirement plan, or
(3) Purchase additional service credit as may permitted by the Code (including
subsection 40-254(6), purchase of additional service upon retirement). If the leave
balance exceeds the cost of the service credit purchased, the balance shall be paid to
the member in a lump sum.
(b) Members who fail to elect a transfer in the year prior to retirement or other separation will
receive payment in a lump sum at time of separation with all attendant tax consequences.
(c) If a member on whose behalf the city makes a transferred leave balance to the Plan dies
after retirement or other separation, but before making an election, as provided, or after
making an election but before any distribution is made, the election option shall be void. In
such an event, any person who would have received a death benefit had the member died in
service immediately prior to the date of retirement or other separation, shall be entitled to
receive an amount equal to the transferred leave balance in a lump sum. In the case of a
surviving spouse or former spouse, an election may be made to transfer the leave balance to
an eligible retirement plan in lieu of the lump sum payment. Failure to make such an election
by the surviving spouse or former spouse within 60 days of the member's death, will be
deemed an election to receive a lump sum payment.
(d) The board, by rule, shall prescribe the method for implementing the provisions of this
section.
(Ord. No. 12111, § 1, 9-25-01; Ord. No, 13154, § 1, 4-22-10)
Secs. 40-267-40-290. Reserved.
FOOTNOTE(S):
--- (10) ---
Editor's note -Ord. No. 12111, § 1, adopted September 25, 2001, amended div. 3, §§ 40-241--40-263 in its
entirety to read as herein set out. Formerly, div. 3 pertained to similar subject matter and derived from Code 1980,
§§ 40-225--40-247; Ord. No. 10002, § 1, adopted June 13, 1985; Ord. No. 10458, § 1, adopted July 14, 1988; Ord.
No. 10911, § 1, adopted September 5, 1991; Ord. No. 11021, § 1, adopted November 12, 1992; Ord. No. 11073, §§
2, 3, adopted July 22, 1993; Ord. No. 11192, § 2, adopter! October 27, 1994; Ord. No. 11199, § 1, adopted
November 17, 1994; Ord, No. 11232, § 2, adopted March 9, 1995; Ord. No. 11234, § 1, adopted March 27, 1995;
Ord. No, 11340, § 1, adopted February 29, 1996; Ord. No. 11392, § 1, adopted September 12, 1996; Ord. No.
11546, § 1, adopted September 23, 1997; Ord. No. 11564, § 15, adopted October 28, 1997; Ord. No. 11589, § 1,
adopted January 13, 1998; Ord. No. 11608, § 1, adopted February 10, 1998; Ord. No. 11717, § 1, adopted October
27, 1998; Ord. No. 11729, § 1, adopted November 17, 1998; Ord. No. 11743, § 2, adopted January 12, 1999; Ord.
No. 11879, § 2, adopted January 13, 2000; Ord, No. 11927, § 2, adopted May 11, 2000. (Back)
Note Section 2 of Ord, No. 12111, adopted September 25, 2001, is as follows: "This Ordinance shall be applied on
a prospective basis only, No person who is a separated vested member,. a member not in service or currently a
beneficiary under the plan shall be entitled to the benefits provided for in this Ordinance, except as otherwise
.specifically provided. Benefits available to those persons shall be the benefits in effect on the date of separation
from service. The deletion of obsolete language shall not impair or diminish the rights of any person to whom those
benefits are applicable." (Back)
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