HomeMy WebLinkAboutBack-Up from Law DeptDIVISION 3. - CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES'
RETIREMENT TRUST
• 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. - Adjustment 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 plan; intervention in legal proceedings
affecting the Plan.
• Sec. 40-264. - General conditions.
• Sec. 40-265. - Excess benefit plan.
• Sec. 40-266. Transfer of accumulated leave.
• Secs. 40-267-40-290. - Reserved.
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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 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;
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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.
(b) 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.
(c) 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.
(d) 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.
(e) 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.
(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)
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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)
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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 members 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.
(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.
(b) City contributions. The city's annual fiscal contribution to the Plan shall provide for the following: (1)
noninvestment expenses of the Plan; (2) amortization of the unfunded liability of the Plan; and (3)
normal costs of the Plan.
(1)
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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 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
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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 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.
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(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)
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