HomeMy WebLinkAboutBack-Up from Law Dept• DIVISION 2. - CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS'
RETIREMENT TRUST
• Sec. 40-191. - Definitions.
Unless a different meaning is plainly required by the context, the following words and phrases
as used in this division shall have the following meanings:
Accumulated contributions shall mean the sum of all amounts deducted or picked up from a
member's compensation plus all other amounts contributed to the retirement system by a member
pursuant to this division, together with regular interest thereon as provided in section 40-197(b).
Active membership shall mean membership in the retirement system as an employee.
Actuarial assumptions shall mean the benefit of equal value as determined using the RP
2000 Projected to 2020 Scale AA and an interest rate of 7.42 percent compounded annually.
Actuarial equivalent shall mean a benefit having the same present value as the benefit it
replaces, using the actuarial assumptions listed above.
Average final compensation shall mean, for members who retire or terminate employment
with ten or more years of creditable service prior to October 1, 2010, the annual earnable
compensation of a member during either the last one year or the highest year of membership
service, whichever is greater. Effective September 30, 2010, for members who retire on or after
October 1, 2010, average final compensation shall mean the average of the highest five years of
service, to be phased in over the next four years as follows: for members who retire on or after
October 1, 2010 and on or before September 30, 2011, the average of the highest two years of
membership service; for members who retire on or after October 1, 2011 and on or before
September 30, 2012, the average of the highest three years of membership service; for members
who retire on or after October 1, 2012 and on or before September 30, 2013, the average of the
highest four years of membership service; and for members who retire on or after October 1, 2013,
the average of the highest five years of membership service. Provided, in no event shall the
average final compensation of any member who is employed as a police officer or firefighter on
September 30, 2010 and retires on or after October 1, 2010, be less than the highest year of
membership service prior to September 30, 2010.
BACDROP shall mean Benefit Actuarially Calculated Deferred Retirement Option Program.
Beneficiary shall mean any person receiving a retirement allowance or other benefit from the
retirement system.
Benefit shall mean a retirement allowance or other payment provided by the retirement
system.
Board or board of trustees shall mean the board of trustees of the retirement system.
City employee shall mean any person employed by the city.
COLA shall mean cost -of -living allowance.
Creditable service shall mean membership credit upon which a member's eligibility to receive
benefits under the retirement system is based or upon which the amount of such benefits is
determined.
DROP shall mean Deferred Retirement Option Program and shall include a Forward DROP
and a BACDROP.
DROP account shall mean the account established for each DROP participant.
DROP participant shall mean a beneficiary participating in the DROP.
Early service retirement shall mean a member's withdrawal from service under circumstances
permitting payment of a retirement allowance before such member is eligible for normal service
retirement.
Earnable compensation shall mean an employee's base salary, including pickup
contributions, for all straight time hours worked, plus assignment pay and payments received for
vacation and sick leave taken, jury duty, and death -in -family leave taken, and any other items, if
any, currently included in the calculation of average final compensation. Earnable compensation
shall not include overtime pay; payments for accrued sick leave, accrued vacation leave, or
accrued compensatory leave; holiday pay; premium pay for holidays worked; the value of any
employment benefits or nonmonetary entitlements; or any other form of remuneration.
Employee shall mean a firefighter or police officer presently employed by the city as a
firefighter or police officer, whether in the classified or unclassified service of the city. Any member
of the retirement system who becomes employed by the Dade County metropolitan government by
virtue of the merger, transfer or assignment of governmental units or functions and who does not
elect within six months thereafter to become a member of the state and county officers' and
employees' retirement system shall, so long as such employment continues, be deemed an
employee within the meaning of this section. In its capacity as the employer of such member, the
Dade County metropolitan government shall be deemed to be included with the term "city" as such
term is used herein to refer to the city in its capacity as the employer of a member.
Excess interest earnings shall mean the difference between the return on the actuarial
market value of the average assets (investment and noninvestment) of the City of Miami
firefighters' and police officers' retirement trust fund, as calculated in accordance with F.S. ch. 112
and the assumed return on the actuarial market value of such assets for active members on the
current actuarial valuation report.
Firefighter shall mean any person initially employed as a full-time professional firefighter by
the city, whose primary responsibility is the prevention and extinguishment of fires, the protection
of life and property, and the enforcement of any law pertaining to the prevention and control of
fires.
FOP shall mean The Fraternal Order of Police, Lodge #20.
Forward DROP shall mean a Deferred Retirement Option Program where benefit is equal to
the regular retirement allowance the member would have received had the member separated
from service and commenced the receipt of benefits from the system.
Fund shall mean the City of Miami firefighters' and police officers' retirement trust fund
IAFF shall mean the International Association of Fire Fighters, AFL-CIO, Local 587.
ICA shall mean an individual contribution account.
Investment expenses shall mean the cost of money management fees.
Member or member in service shall mean an employee for whom contributions to the
retirement system are made as required by this division.
Member absent from service shall mean any member ceasing to be a city employee who is
absent from service less than three years in a period of five consecutive years after last becoming
a member and who does not withdraw his or her accumulated contributions. In order for a member
absent from service to be entitled to receive a benefit during the period before membership
elapses, the benefit must have vested prior to the member's ceasing to be a city employee.
Member not in service shall mean any member who exercises a vested right to retirement
pursuant to section 40-203(e).
Membership credit shall mean credit received by a member for time spent in membership
service or for such time as is otherwise authorized by this division.
Membership service shall mean service as an employee on account of which contributions to
the retirement system are made as required by this division.
Miami city employees' retirement system shall mean the city pension system which was
established effective January 1, 1940, pursuant to Ordinance No. 2230, enacted December 6,
1939.
Noninvestment expenses shall mean the costs of administering the retirement system.
Salaries for office staff, overhead, professional fees for actuaries, accountants, and attorneys, and
other similar costs are examples of noninvestment expenses.
Normal costs shall mean the cost of benefits attributable to the current year under the frozen
entry -age actuarial costs method.
Option shall mean one of several choices available to members with respect to the manner in
which a retirement allowance may be paid.
Payback shall mean a member's contribution to the retirement system for membership credit
for which other than regular contributions may be made pursuant to this division. Contributions
permitted for paybacks shall not be picked up by the city but may be deducted from a member's
compensation.
Pension shall mean a series of periodic payments usually for life, payable in monthly
installments.
Pickup amounts shall mean employer contributions derived from a member's earnable
compensation through a reduction in the member's earnable compensation.
Police officer shall mean any person employed by the city who is vested with authority to bear
arms and make arrests, and whose primary responsibility is the prevention and detection of crime
or the enforcement of the penal, criminal, traffic, or highway laws of the State of Florida.
Regular contributions shall mean amounts picked up by the city from the earnable
compensation of a member. Regular contributions shall not include payback contributions of any
kind or nature 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 determined by the board of trustees pursuant
to section 40-197(b).
Retirement shall mean a member's withdrawal from service with a benefit granted to the
member pursuant to the provisions of this division.
Retirement allowance shall mean a pension provided by the retirement system.
Retirement system shall mean the City of Miami firefighters' and police officers' retirement
trust.
Rule of 64 shall mean a computation consisting of the sum of a member's age and length of
creditable service, which sum shall permit normal service retirement upon the member's combined
age and creditable service equaling at least 64. The rule of 64 shall apply to all police officer
members. The rule of 64 shall also apply to any firefighter member whose combined age and
length of creditable service is equal to or greater than 64 on or before September 30, 2009.
Rule of 68 shall mean a computation consisting of the sum of a member's age and length of
creditable service, which sum shall permit normal service retirement upon the member's combined
age and creditable service equaling at least 68. The rule of 68 shall only apply to firefighter
members whose combined age and length of creditable service are less than 64 on September 30,
2009.
Service shall mean active service as an employee.
Service retirement shall mean a member's retirement from service under circumstances
permitting payment of a retirement allowance without reduction because of age or length of
creditable service and without special qualifications such as disability. Service retirement shall be
considered normal retirement.
Trustee shall mean a member of the board of trustees of the retirement system.
Unfunded liability shall mean "unfunded actuarial liability" which is the excess of the actuarial
accrued liability of the retirement system over the value of its present assets. The term "unfunded
liability" shall include the frozen unfunded liability of the retirement system.
Vested benefit shall mean an immediate or deferred benefit to which a member has gained a
nonforfeitable right under the provisions of this division. Minimum vesting shall mean ten years of
creditable membership before the member is entitled to retirement benefits except accidental
disability retirement, service incurred disability retirement, and ordinary death benefits.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10910, § 1, 9-5-91; Ord. No. 11235, § 1, 3-27-95; Code
1980, § 40-200; Ord. No. 11300, § 1, 9-14-95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 13091, § 1,
9-24-09; Ord. No. 13202, § 2, 9-27-10; Ord. No. 13551, § 2, 9-24-15)
• Sec. 40-192. - Retirement system established; purpose; name; date operative.
A retirement system is hereby established and placed under the administration and
management of a board of trustees for the purpose of providing retirement benefits pursuant to the
provisions of this division. The retirement system established herein shall be known as the "City of
Miami firefighters' and police officers' retirement trust" and shall be effective as of June 13, 1985.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-201)
• Sec. 40-193. - Board of trustees.
(a) Selection.
(1) The board of trustees of the retirement system shall consist of nine persons
selected as follows:
a. One trustee 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 selected by the firefighters, which trustees shall belong to
the bargaining unit represented by the IAFF and shall be elected and serve according to
the constitution and bylaws of the IAFF;
c. Two trustees selected by the police officers, which trustees shall belong to
the bargaining unit represented by the FOP and shall be elected and serve according to
the constitution and bylaws of the FOP; and
d. Four independent trustees, which trustees shall not be city employees,
selected by the commission. Two such trustees shall be selected from a list of six
persons submitted by the FOP according to its constitution and bylaws, and two such
trustees shall be selected from a list of six persons submitted by the IAFF according to its
constitution and bylaws. Each of the lists submitted to the commission shall not contain
any name which duplicates a name appearing on the other lists. In the event a duplication
of names does occur, both lists shall be returned by the commission for resubmission
without duplication. An independent trustee shall have at least 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;
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 last 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.
(2) A trustee shall take an oath of office within ten days following selection as a
member of the board.
(b) Term of office.
(1) The term of office for each trustee shall be two years except for the initial trustees
who shall serve as follows:
a. Of the trustees selected by the firefighters, one shall serve for a one-year
term and the other for a two-year term;
b. Of the trustees selected by the police officers, one shall serve for a one-
year term and the other for a two-year term;
c. Of the two independent trustees appointed by the commission from the list
submitted by the IAFF, one shall serve for a one-year term and the other for a
two-year term;
d. Of the two independent trustees appointed by the commission from the list
submitted by the FOP, one shall serve for a one-year term and the other for a two-
year term; and
e. The trustee appointed by the city manager shall serve for a two-year term.
(2) Trustees may serve as many consecutive terms as those participating in the
respective selection processes deem appropriate.
(c) Fiduciary responsibility. Members of the board of trustees shall be the named fiduciaries
of the retirement system. As named fiduciaries, the trustees shall discharge their duties and
responsibilities solely in the interest of members and beneficiaries of the retirement system:
(1) For the exclusive purpose of providing benefits to members and their beneficiaries
and defraying reasonable expenses of administering the retirement system;
(2) 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 like character and with like aims; and
(3) In accordance with ordinances and other applicable law, documents and other
instruments governing the retirement system.
(d) Compensation. Trustees who are employees of the city, whether firefighters, police
officers, or otherwise, shall be granted leave with full pay when functioning as a trustee during
their normal working hours. Such trustees shall not otherwise be paid for their services as
trustees. All other 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 retirement system in accordance
with F.S. ch. 286.
(2) As a member of the board, each trustee shall be entitled to one vote, and 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 the business of the board.
(3) The board shall elect a trustee as chairperson and a trustee as vice -chairperson
of the board.
(f) Vacancies; removal.
(1) If a vacancy occurs on the board due to resignation, death, removal or otherwise,
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. Notwithstanding
any provision of this division to the contrary, six concurring votes shall be necessary to
effect such removal. Proper cause shall mean a trustee's failure to satisfactorily discharge
his or her fiduciary duties and responsibilities, including, but not limited to, failure to
attend 75 percent or more board meetings in a one-year period.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-202; Ord. No. 11564, § 15, 10-28-97; Ord. No.
12201, § 1, 3-14-02; Ord. No. 13676, § 2, 4-27-17)
• Sec. 40-194. - Administration of retirement system.
(a) Plan administrator. The board shall serve as plan administrator of the retirement system.
(1) The general administrative duties of the board shall be:
a. To maintain such records as are necessary for calculating and distributing
retirement system benefits;
b. To maintain such records as are necessary for financial accounting and
reporting of retirement system funds;
c. To maintain such records as are necessary for actuarial evaluation of the
retirement system, including investigation into the mortality, service and compensation
experience of its members and beneficiaries;
d. To compile such other administrative or investment information as is
necessary for the management of the retirement system;
e. To process, certify and/or respond to all correspondence, bills and
statements received by the retirement system, as well as all applications submitted to the
board for retirement system benefits;
f. To establish and maintain communication with city departments and other
local, state and federal governmental units as is necessary for the management of the
retirement system, including preparing, filing, and distributing such reports and
information as are required by law to be prepared, filed or distributed on behalf of the
retirement system;
g. To establish and maintain such other functions as are necessary to
administer, manage and operate the retirement system, or as otherwise required by law.
(2) The board shall submit the following information annually to the commission no
later than July 1 of each year: (a) a report showing the fiscal transactions of the
retirement system for the year ending on the preceding September 30 as well as the
amount of accumulated cash, securities, and other property of the retirement system on
that date and (b) the current actuarial valuation of the assets and liabilities of the system.
The actuarial value of assets held by the retirement system shall be designated as the
lower of moving market value average (three years) or statement value. The board may
approve other methods of determining the actuarial value of retirement system 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 a change in the method of determining the actuarial
value of retirement system assets, the board shall give timely, written notice to the city of
the proposed change.
(3) 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 and beneficiaries of the retirement system. Taking into account the result of this
investigation, the board shall adopt for the retirement system 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 funds of the retirement system shall
be made. Actuarial assumptions based on three-year experience analyses may be
modified by the board at such times as it deems appropriate. When a change in actuarial
assumptions is considered by the board, 60 days' notice shall be given to the city prior to
the first meeting of the board to consider any such change or any proposal or
recommendation related thereto. Thereafter, reasonable notice shall be given to the city
of any and all subsequent meetings at which the issue of a change in actuarial
assumptions or a related proposal or recommendation is to be considered.
(b) Pension administrator; board physician; advisors.
(1) The board shall employ a pension administrator to assist the board in the
performance of its administrative duties. The pension administrator may, subject to the
approval of the board, employ such staff as is necessary for the proper administration of
the retirement system.
a. The pension administrator selected by the board shall have at least the
following qualifications:
1. Have an accounting or pension administration background;
2. Have managerial experience including hiring, directing and
motivating a small staff;
3. Have sufficient knowledge or experience to supervise data
processing operations;
4. Have experience with filing government forms (including those
related to federal and state compliance requirements) and have the initiative to
obtain resource data when specific information is not readily available;
5. Be capable of using benefit formulas to calculate and pay benefits;
6. Be capable of prudent financial management and obeying guidelines
established by the board;
7. Be capable of developing cash flow projections;
8. Be capable of preparing financial reports reflecting the activity of the trust
and financial trends;
9. Be capable of maintaining an investment schedule;
10. Be capable of maintaining minutes of meetings of the board of trustees;
11. Be capable of preparing correspondence, issuing forms, receiving and
processing benefit claims, and expressing ideas in writing;
12. Be able to insist upon, and actively pursue delivery of, all reports and
other documents required for efficient operation of the retirement system;
13. Have effective oral communications skills;
14. Have a good employment attendance record;
15. Be efficient, practical and committed to responsible and effective operation
of the retirement system, its finances and expenses;
16. Be able to remain neutral on decisions to be made by the board and serve
all board members in an impartial and arms -length fashion, giving due recognition
to the ultimate fiduciary obligation to members and beneficiaries of the retirement
system.
b. The board shall have a continuing duty to observe and evaluate the
performance of any pension administrator employed by the board. The board shall, in
selecting any such 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.
(2) The board shall retain a physician to assist the board in the performance of its
administrative duties. The physician shall conduct or otherwise provide for any medical
examination required under the provisions of this division and may refer any examinee to
a specialist or specialists. Following any medical examination required by this division,
and after taking into consideration the reports of specialists, if any, the physician shall
submit written conclusions and recommendations regarding the examinee to the board.
(3) The board shall have authority to retain its own legal counsel, accountants,
actuaries, and other professional advisors to assist the board in the performance of its
administrative duties. The board may act without independent investigation upon the
professional advice of advisors so retained.
(4) The board shall, consistent with its independence from the board of trustees of
the City of Miami general employees' and sanitation enforcement retirement trust,
endeavor to share personnel, services and facilities with the latter board.
(c) Public records; board documents; written communication 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 F.S. ch. 286. Such records shall reflect
a complete and comprehensive account of the discussions and actions taken by the
board
(2) The board shall provide the city manager with copies of all documents relating to
the retirement system contemporaneously with the making or receipt of such documents
by the board or immediately thereafter. The city manager shall provide the pension
administrator of the board with copies of all documents relating to the retirement system
contemporaneously upon the making or receipt of such documents by the city or
immediately thereafter. All written communications relating to the retirement system 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 administrator of the board.
(3) When a hearing before or consideration by the commission is required for
retirement system business, such business shall be placed on the agenda of the
commission and heard at its next regularly scheduled meeting; provided, that any request
for hearing or consideration of retirement system business complies with the city's
requirements or guidelines as to timeliness and adequacy of information.
(d) Rules and regulations. Subject to any limitation contained in this division, the board may
from time to time establish such rules and regulations as are necessary for efficient
administration and management of the retirement system.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-203)
• Sec. 40-195. - Trust fund.
(a) Nature of trust.
(1) The Miami city employees' retirement system trust is an irrevocable trust
previously established by ordinance. The commission, having retained that right, hereby
appoints a successor trustee to administer the trust thereby created. The successor
trustee designated by the commission shall be the board of trustees of the City of Miami
firefighters' and police officers' retirement trust. Hereafter, the Miami city employees'
retirement system trust shall be known as the City of Miami firefighters' and police
officers' retirement trust fund but it shall remain and continue as the same irrevocable
trust as set forth in prior city ordinances.
(2) The board shall be vested with full legal title to the City of Miami firefighters' and
police officers' retirement trust fund and shall hold the fund as an irrevocable trust to be
applied from time to time in accordance with the provisions of this division. All payments
made to the fund by the city and by members of the system, and all assets whatsoever of
the fund and the income thereof, without distinction between principal and income, shall
be held by the board in a single trust fund. The board may, however, segregate or invest
separately any portion of the fund.
(3) Members of the board of trustees shall be the named fiduciaries of the fund. As
named fiduciaries, the trustees shall hold, manage, control and safeguard the fund solely
in the interest of members and beneficiaries of the retirement system:
a. For the exclusive purpose of providing benefits to members and their
beneficiaries and defraying reasonable expenses of administering the retirement
system;
b. 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 like character and with like
aims;
c. By diversifying the investments of the fund so as to minimize the risk of
losses, unless under the circumstances it is clearly prudent not to do so;
d. In accordance with ordinances and other applicable law, documents and
other instruments governing the fund.
(4) The board shall have authority to retain its own legal counsel, accountants,
actuaries and other professional advisors to assist the board in the performance of its
trust duties. The board may act without independent investigation upon the professional
advise of advisors so retained.
(5) The board is authorized to prosecute or defend actions, claims or proceedings of
any nature or kind for the protection of fund assets and for the protection of the board in
the performance of its duties.
(b) Trust property.
(1) Trust property shall consist of all cash, securities and other property previously
accumulated on behalf of the Miami city employees' retirement system trust, together with
such other cash, securities and other property as the board may at any time hold or
acquire from or on behalf of the city or members of the retirement system pursuant to this
division, and the accruals thereto.
(2) The board may buy, sell, convert, redeem, exchange or otherwise dispose of trust
property at any public or private sale without notice or advertisement, for cash or upon
credit with or without security, without obligation on the part of any person dealing with
the board to see the application of the process of or inquire into the validity, expedience
or propriety of any such disposition, and may make, execute, acknowledge and deliver
contracts, assignments, waivers or other instruments.
(3) The board shall have the authority to vote upon any stocks, bonds or securities of
any corporation, association or trust and to give general or specific proxies and powers of
attorney with or without power of substitution; to participate in mergers, reorganizations,
recapitalizations, consolidations, and similar transactions with respect to such securities;
to deposit such stock or other securities in any voting trust or any protective or like
committee or with depositories designated by the board, subject to the approval of the
commission; to amortize or fail to amortize any part or all of the premium or discount
resulting from the acquisition or disposition of assets; and generally, to exercise any of
the powers of an owner with respect to stocks, bonds or other investments comprising the
fund which the board may deem to be in the best interest of the fund to exercise.
(c) Investments.
(1) The trustees shall, in acquiring, investing, reinvesting, exchanging, retaining,
selling and maintaining property for the benefit of the FIPO trust fund 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. Within the limitations of
the foregoing standard, the trustees are authorized to acquire and retain every kind of
property, real, personal or mixed, and every kind of investment specifically including, but
not by way of limitation, bonds, debentures and other corporate obligations, and stocks,
preferred or common, which persons of prudence, discretion and intelligence acquire or
retain for their own account and, within the limitations of the foregoing standard, the
trustees may retain property acquired, without limitation as to time and without regard to
its suitability for original purchase. The intent of this provision is to remove any and all
restrictions which are otherwise imposed by F.S. ch. 175 or 185, and which may be
removed.
(d) Money manager.
(1) Pursuant to written agreement, the board shall retain one or more money
managers for the management of property held in the fund, and the board shall convey
property of the fund to such money manager(s) for investment and reinvestment in
accordance with this section.
a. 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 manger fails to meet the guidelines and objectives, or fails
to perform in accordance with its contractual agreement with the board, the
money manager may be terminated by the board. The performance of the
investment portfolio for the retirement system shall not be less than 90 percent of
the median performance of comparable portfolios as determined jointly by the
board and the city manager. If the performance falls below that minimum
standard, the money manager(s) shall automatically be removed unless, based
upon extenuating circumstances, the board recommends continuation and such
continuation is approved by the commission.
b. In the acquisition, investment, reinvestment, exchange, retention, sale and
management of property for the benefit of the fund, the money manager(s) shall
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, 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.
c. Upon written request by the board, the money manager(s) shall disburse
cash or property from the fund to the board or its designee. In requesting the
money manager(s) to make any such distribution, the board shall follow the
provisions of this division and shall not direct that any payment be made that
would cause any part of the fund to be used for or diverted to purposes other than
providing benefits to members and beneficiaries of the retirement system and
defraying reasonable expenses of administering the retirement system. Any
written request to the money manager(s) from the board shall constitute a
certification that the distribution so requested is one that the board is authorized to
direct, and the money manager(s) shall not be required to investigate the
application of such money by the board or its designee.
(2) The board shall have a continuing duty to observe and evaluate the performance
of any money manager or other investment counsel retained by the board. The board
shall, in selecting a money manager or other investment counsel, 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.
(e) Records to be maintained.
(1) The board shall require that any money manager or other agent who has custody
or control of any trust property keep accurate and detailed accounts of all investments,
receipts, disbursements and other transactions of or pertaining to such trust property, and
the board shall further require that all accounts, books and records relating thereto be
open to inspection and audit at all reasonable times by the city, the board, or their
designees.
(2) The board shall also keep accurate and detailed accounts of all investments,
receipts, disbursements and other transactions of or pertaining to trust property, and all
accounts, books and records relating thereto shall be open to inspection and audit at all
reasonable times by the city or its designees.
(f) DROP account exceptions.
(1) None of the restrictions in this section hereinabove shall apply to assets in DROP
accounts which may be invested in any investments otherwise not prohibited by law.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10500, § 1, 10-27-88; Code 1980, § 40-204; Ord. No.
11300, § 1, 9-14-95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 13676, § 2, 4-27-17)
• Sec. 40-196. - Contributions.
(a) Member contributions.
(1) Effective January 9, 1994, and thereafter, regular contributions of each member of
the retirement system shall be made each pay period at the rate of ten percent of each
member's earnable compensation. Effective the first full pay period following October 1,
1999, regular contributions of each member of the retirement system shall be made each
pay period at the rate of seven percent of each member's earnable compensation.
(2) a. Effective the first full pay period following October 1, 2000, and
thereafter, regular contributions of each member of the retirement system shall be
made each pay period at the rate of seven percent or equal to the city's
contribution, whichever is less.
b. Effective the first full pay period following October 1, 2000, should the
member contribution be less than seven percent, the difference between the
seven percent and the actual contribution shall be deducted from the member's
paycheck and placed into an individual contribution account (ICA), as part of the
retirement system. ICA's shall be established as allowed by IRS Code. Only if it is
found that the IRS Code does not allow for an individual account, the reduction in
contribution shall be reflected in the member's paycheck.
(3) a. Effective the first full pay period following the effective date of the
ordinance from which this article derives, and thereafter, regular contributions of
each firefighter member of the retirement system shall be made at the rate of
eight percent of each firefighter member's earnable compensation.
b. Effective the first full pay period following the effective date of the
ordinance from which this article derives, should the firefighter member's
contribution be less than eight percent, the difference between the eight percent
and the actual contribution shall be deducted from the firefighter member's
paycheck and placed into an individual contribution account (ICA), as part of the
retirement system. ICA's shall be established as allowed by IRS Code. If it is
found that the IRS Code does not allow for an individual account, the reduction in
contribution shall be reflected in the member's paycheck.
(4) a. Effective the first full pay period following October 1, 2009, and thereafter,
regular contributions of each firefighter member of the retirement system shall be
made at the rate of nine percent of each firefighter member's earnable
compensation.
b. Effective the first full pay period following October 1, 2009, should the
firefighter member's contribution be less than nine percent, the difference
between the nine percent and the actual contribution shall be deducted from the
firefighter member's paycheck and placed into an individual contribution account
(ICA), as part of the retirement system. ICA's shall be established as allowed by
IRS Code. If it is found that the IRS Code does not allow for an individual account,
the reduction in contribution shall be reflected in the member's paycheck.
(5) a. Effective the first full pay period following October 1, 2010, and thereafter,
regular contributions of each firefighter member of the retirement system shall be
made at the rate of ten percent of each firefighter member's earnable
compensation.
b. Effective the first full pay period following October 1, 2010, should the
firefighter member's contribution be less than ten percent, the difference between
the ten percent and the actual contribution shall be deducted from the firefighter
member's paycheck and placed into an individual contribution account (ICA), as
part of the retirement system. ICA's shall be established as allowed by IRS Code.
If it is found that the IRS Code does not allow for an individual account, the
reduction in contribution shall be reflected in the member's paycheck.
(6) Individual contribution accounts.
a. Earnings. Interest on ICA's shall be determined in the same manner as the
COLA transfer methodology. Interest shall be credited periodically to the ICA's as
determined by the retirement system board's actuary, but not less than once a
year.
b. Disbursements. Member contributions and earnings in ICA's shall be
deemed 100 percent vested upon deposit. Upon the member's separation, ICA
balances shall be disbursed as provided under the IRS Code. Disbursement of
ICA funds may only occur upon separation or as mandated under the IRS Code.
(7) a. Effective the first full pay period following October 1, 2012, the member
contribution for police officers hired prior to October 1, 2012 shall be ten percent
of earnable compensation; and effective September 30, 2014, the member
contribution for police officers hired prior to October 1, 2012 shall be seven
percent of earnable compensation. The member contribution for police officers
hired on or after October 1, 2012 shall be three percent of earnable compensation
greater than the member contribution for police officer members hired prior to
October 1, 2012.
b. Effective the first full pay period following October 1, 2012, the member
contribution for firefighters shall be ten percent of earnable compensation. On
September 30, 2014, the member contribution for firefighters shall be seven
percent of earnable compensation. The member contribution for firefighters hired
on or after October 1, 2014, shall be ten percent of earnable compensation.
(b) City contributions. Effective October 1, 1993, the city's annual fiscal contribution to the
retirement system shall provide for the following: (1) noninvestment expenses of the retirement
system; and (2) required actuarial costs of the retirement system.
(1) The city's contribution for noninvestment expenses of the retirement system 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 off-street parking.
(2) The city's contribution to the retirement system shall be determined by applying
the individual entry age actuarial funding method, as such method is defined by the
American Academy of Actuaries, to the projected liabilities of the system as of October 1,
2011, using an assumed system payroll growth rate of three percent and using an
unfunded liability amortization period of 25 years, or such other reasonable payroll growth
rate and amortization period as agreed by the retirement system's actuary and the city's
actuary. The contribution shall be determined as of October 1 of each year (based on the
valuation payroll and the program provisions in effect at that time) for the fiscal year
beginning on the subsequent October 1, adjusted for interest for one year, based on the
actuarial assumptions.
(3) Effective as of the actuarial valuation for October 1, 1998, the investment
assumption shall be net of any investment expense assumptions.
(4) The actuarial methodology for evaluating assets shall be a moving market value
averaged over three years, from October 1, 1992, prospectively. (As of October 1, 1992,
market value shall be used; as of October 1, 1993, a two-year moving average shall be
used; as of October 1, 1994, and thereafter, the three-year moving average shall be
used.) The average of ratios of market to book values as of the current and two most
recent September 30's is applied to book value at the current September 30. The result
cannot be greater than 100 percent of market value or less than 80 percent of market
value.
(5) The parties recognize that the amount to be contributed by the city to normal
costs in any given year is affected by the assumptions made by the actuaries who
calculate the normal costs by the method set forth in subsection (b)(2) above.
(6) The calculation for normal costs shall be performed separately by actuaries for the
city and for the retirement system each using the method set forth in subsections (2), (3)
and (4) above. The retirement system's actuary shall use the actuarial assumptions
adopted by the board. The city's actuary may use any actuarial assumptions deemed
appropriate by that actuary. If the retirement system's actuary and the city's actuary agree
on the normal costs contribution for the city, that amount shall be contributed by the city.
If the two actuaries cannot agree on the normal costs of contribution after attempting to
do so, 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. The third
actuary shall, as soon as practicable, submit a funding recommendation utilizing standard
acceptable funding techniques and assumptions to the retirement system and the city
commission. The city commission shall then fund the amount recommended by either the
retirement system's actuary or the city's actuary, whichever recommendation is closer to
the recommendation of the third actuary.
(7) 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 to the
retirement system for the next fiscal year; and
b. The amount of appropriation required to pay the noninvestment expenses
of the retirement system for the next fiscal year.
(8) All contributions made by the city to the retirement system for any given fiscal
year shall be made quarterly, plus interest, in equal payments, on the first day of each
quarter during the fiscal year in question; or sooner, at the city's option, with appropriate
interest adjustment. If the amount of the contribution for normal costs to the retirement
system has not been determined by the payment date, then the city shall make quarterly
payments, based upon the prior year's contribution. Once the amount of normal costs is
determined, if the amount of the contribution differs from the amount previously paid, then
a corresponding adjustment shall be made in full on the next quarterly payment.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 11110, § 2, 1-13-94; Code 1980, § 40-205; Ord. No.
11300, § 1, 9-14-95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 13072, § 2, 6-11-09; Ord. No. 13091,
§ 1, 9-24-09; Ord. No. 13210, § 1, 10-14-10; Ord. No. 13344, § 1, 9-27-12)
• Sec. 40-197. - Accounts.
(a) Membership account.
(1) The membership account shall be credited with the accumulated contributions of
each member of the retirement system and the accumulated contributions of each
member absent from service.
(2) Accumulated contributions withdrawn by a member or withdrawn by a member
absent from service, and accumulated contributions paid to a legal representative or
designated beneficiary in the event of a member's death while a 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.
(b) Benefit account.
(1) The benefit account shall be credited with accumulated contributions transferred
from the membership account, all city contributions to the retirement system, all
miscellaneous income payable to the retirement system, all interest and dividends earned
on the funds of the retirement system (except as provided in paragraph (b)(1)b below),
and all reserves for payment of retirement system benefits.
a. Miscellaneous income. The benefit account shall be credited with any
miscellaneous income payable to the retirement system. Such income includes:
1. All fines and penalties imposed on firefighters or police officers for
breach of any rule of the police or fire -rescue departments;
2. All rewards in moneys, fees, gifts and emoluments that may be
paid or given for or on account of extraordinary service by the police or
fire -rescue departments or any member thereof (except when allowed to
be retained by competitive award or by the rules of the departments), and
all moneys, gifts or donations received or given or earned by the police
and fire -rescue departments for pension or retirement benefits; and
3. All other sums which may be paid or payable to the retirement
system other than pursuant to this division.
Miscellaneous income shall be applied as a credit against contributions otherwise
required to be made to the retirement system by the city.
b. Interest and dividends. All interest and dividends earned on the funds of
the retirement system shall be credited to the benefit account. On January 1 of
each year, the board shall transfer, from the benefit account to the membership
account, amounts sufficient to allow regular interest on the balances of the
members' accounts in the membership account. "Regular interest" shall mean
interest at such percentage rate compounded annually as shall be determined by
the board to be equitable both to members and to taxpayers of the city, after
taking into consideration the actual interest earnings of the retirement system for
the preceding years and the probable earnings of the system in the future. Such
rate shall be limited to a minimum of three percent and a maximum of four
percent.
(2) All expenses of the retirement system shall be chargeable to the benefit account.
Such expenses include, but are not limited to, the following:
a. All retirement benefits paid to beneficiaries of the Miami city employees'
retirement system and to beneficiaries of the City of Miami firefighters' and police
officers' retirement trust; and
b. All retirement allowances paid to persons under the provisions of the
former pension and/or retirement fund for members of the police and fire -rescue
departments of the City of Miami or paid to former members of that fund who did
not become members of the Miami city employees' retirement system.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-206)
• Sec. 40-198. - Physical examination required; effect of preemployment disability.
(a) An employee must submit to a physical examination by the city physician or some other
physician authorized by the board before such employee may be accepted as a member of the
retirement system.
(b) Upon commencement of active membership in the retirement system, a member with a
specific disability at the time of employment by the city shall waive in writing any right to an
accidental or service -incurred disability retirement allowance based on the member's
preemployment disability or any aggravation thereof. A member with a preemployment disability
shall be eligible for an accidental or service -incurred disability retirement allowance only if it can
be shown to the satisfaction of the board that such member would have been entitled to an
accidental or service -incurred disability retirement allowance notwithstanding the preemployment
disability.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-207)
City Code cross reference —Physical examination required for membership in retirement system
or plan, medical requirements for membership, § 40-3.
• Sec. 40-199. - Membership; right of certain persons to reject membership.
(a) The membership of the retirement system shall include all employees, and any member
who is absent from service 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 the retirement system shall include all employees but shall not include any
member absent from service or any DROP participant.
(b) With the exception of persons eligible to decline membership in the retirement system,
participation in the retirement system is a mandatory condition of employment for employees. An
employee's acceptance of employment with the city shall constitute authorization for the city to
pick up contributions from the earnable compensation of the employee, unless and until an
election is made. Those persons employed in the following positions shall have the right to reject
membership in the City of Miami firefighters' and police officers' retirement trust ("retirement
system") within one year from their respective commencements of employment with the city,
subject to performance of the conditions set forth in paragraphs (b)(1) and (2), below, within the
aforesaid time period: chief of the fire -rescue department, assistant chiefs of the fire -rescue
department, chief of police and assistant chiefs of police. The conditions upon which membership
in the retirement system may be rejected by any person employed in any of the foregoing
positions shall be as follows:
(1) Submission to the commission of a written trust agreement wherein the employee
rejects membership in the retirement system and wherein provision is made for the city to
contribute moneys on behalf of such employee to a public trust fund designated by the
employee and approved by the commission, such contribution to be made in lieu of the
city's contribution on behalf of the employee to the retirement system.
a. The contribution to be made by the city under the terms of the above
agreement shall be calculated at the rate of eight percent of the individual's
annual earnable compensation.
b. A contribution to the designated public trust fund must be made by the
employee rejecting membership in the retirement system, and such contribution
by the employee shall be picked up by the city at a rate of not less than five
percent of the employee's annual earnable compensation.
c. An employee may, if so provided in the trust agreement, take actual or
constructive receipt of his or her contribution, or those contributions made by the
city on his or her behalf prior to reaching age 55 or upon becoming permanently
and totally disabled by making a revocable election of distribution of accounts
pursuant to the mode of distribution of benefits as provided in the trust agreement.
(2) If an eligible employee fails to comply with all of the conditions set forth above, the
employee shall not have the right to reject membership in the retirement system.
(c) Should any member in any period of five consecutive years after last becoming a member
be absent from service more than three years, or should any member withdraw accumulated
contributions, or should any member become a member of any other city -sponsored retirement
plan or system, or should any member become a beneficiary or die, he or she shall thereupon
cease to be a member of the retirement system.
(d) Upon request by the board, the city manager shall submit to the board a statement
showing the name, title, compensation, duties, date of birth and length of service of each
member, as well as such other information regarding members as the board may require in order
to transact the business of the retirement system.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10458, § 1, 7-14-88; Code 1980, § 40-208; Ord. No.
11300, § 1, 9-14-95)
• Sec. 40-200. - Transfer of city employees to retirement system.
(a) Any person employed by the city in a capacity other than firefighter or police officer, who
is reclassified and appointed to the position of firefighter or police officer and who, prior to such
appointment, was a member of the City of Miami general employees' and sanitation employees'
retirement trust ("retirement plan") shall have membership in the retirement plan transferred to
the retirement system, effective the date of such appointment. Creditable service earned while a
member of the retirement plan shall be deemed creditable service in the retirement system upon
such transfer.
(b) Commencing on the effective date of transfer to the retirement system, a member who
has transferred from the retirement plan shall make regular contributions at the rate required by
the retirement system. Accumulated contributions credited in the retirement plan to the account
of such member shall be transferred to the membership account of the retirement system and
credited to the member thereunder. There shall also be transferred, from the benefit account of
the retirement plan to the benefit account of the retirement system, the amount of assets, as
determined by actuarial valuation, held by the retirement plan for any plan member who transfers
to the retirement system.
(c) Any member of the retirement system who transferred from the retirement plan may
contribute to the retirement system an amount computed to be sufficient with the member's
prospective regular contributions to make accumulated contributions at normal retirement age
equal to the amount such accumulated contributions would have been had the member been a
member of the retirement system during his or her entire period of service with the city. If such
election is not made, upon service, early service, rule of 64 or 68 or ordinary disability retirement,
the member's retirement allowance shall be reduced by the actuarial equivalent of the amount by
which accumulated contributions fall short of the full amount which would have been the
member's accumulated contributions had he or she been a member of the retirement system
during his or her entire period of service with the city. Any member who elects to make a
contribution pursuant to this subsection, and who is granted disability retirement under the
retirement system, shall have his or her disability retirement allowance reduced by the actuarial
equivalent of the then unpaid amounts.
(1) An election permitted by this subsection must be made on a form provided by the
board
(2) Contributions made by a member pursuant to this subsection may be made either
by a single lump -sum payment or by a series of periodic payments mutually agreed upon
by the member and the board, including periodic deductions from the member's
compensation. Regardless of the manner of payment, an amount to be contributed
pursuant to this subsection must be paid to the retirement system within five years of
notification to the member of the amount to be contributed.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-209; Ord. No. 13091, § 1, 9-24-09)
• Sec. 40-201. - Creditable service.
(a) For any member of the retirement system, creditable service shall consist of all time spent
in membership service since last becoming a member, plus any other time for which membership
credit is received pursuant to the provisions of this division. Creditable service previously
obtained as a member of the Miami city employees' retirement system shall be deemed
creditable service under the City of Miami firefighters' and police officers' retirement trust to the
extent such service remained credited to the member on May 23, 1985.
(b) The board shall fix and determine by appropriate rules and regulations the amount of
service in any year which is equivalent to a year of membership service, but in no case shall
more than one year of membership service be creditable for all service in one calendar year. The
board shall not allow credit for membership service for any period of more than one month during
which an employee is continuously absent without pay. Subject to the foregoing restrictions, the
board may adopt rules and regulations to verify membership credit claimed by any member.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-210)
• Sec. 40-202. - Paybacks for membership credit.
Members shall have the right to receive membership credit in the retirement system in
accordance with the following provisions:
(1) Credit for previous membership service for certain reemployed former members.
a. If a former member of the retirement system who is not a beneficiary and
is not within five years of reaching normal retirement age, whose membership has
not been terminated for a period in excess of three years and who, at the time of
termination of membership, had five or more years of creditable service, again
becomes a member, he or she may apply for membership credit for prior
membership service by filing with the board an election to pay back the amount of
accumulated contributions previously returned to him or her. If an election to
receive membership credit is made pursuant to this paragraph, a member shall
pay back withdrawn accumulated contributions at the rate in effect when his or her
previous membership terminated, together with regular interest thereon, or,
subject to the approval of the board, pay back an amount equal to the total
amount of accumulated contributions previously withdrawn, together with regular
interest thereon.
b. If a former member, who is not a beneficiary, again becomes a member
and is not otherwise eligible to receive membership credit pursuant to subsection
(1)a, he or she may apply to the board for membership credit for prior
membership service up to a maximum of four years, provided separation from
prior employment was under honorable conditions. If an election to receive
membership credit is made pursuant to this paragraph, the amount of
contributions to be paid back on account of prior membership service shall be
based upon the member's current earnable compensation and the current
contribution rate, excluding interest.
c. If a former member of the retirement system was terminated by the city
due to reduction in personnel and is thereafter reemployed by the city within a
period of three years, he or she may apply for membership credit for prior
membership service by filing with the board an election to pay back the amount of
accumulated contributions previously returned to him or her. If an election to
receive membership credit is made pursuant to this paragraph, a member shall
pay back withdrawn accumulated contributions to the retirement system in an
amount determined by the board. Credit shall not be allowed under the provisions
of this paragraph for employment with the city prior to January 1, 1940.
d. Any election permitted by this subsection must be made on a form
provided by the board. The form shall be sent to a member by registered mail and
must be returned to the board within 30 days following receipt thereof in order to
establish the election desired.
e. Contributions made by a member pursuant to this subsection may be
made either by a single lump -sum payment or by a series of periodic payments
mutually agreed upon by the member and the board, including periodic
deductions from the member's compensation. Regardless of the manner of
payment, any payback of contributions pursuant to the subsection must be
completed within five years of notification to the member of the amount to be paid
back.
f. Upon timely payment in full of a payback permitted by this subsection, and
following a period of five years of active membership subsequent to a member's
date of restoration, a member shall be credited with his or her previous
membership service; provided, that in the event of disability retirement prior to the
preceding terms having been met, a member shall receive credit for previous
service but his or her disability benefit retirement allowance shall be reduced by
the actuarial equivalent of the unpaid portion of the amount to be paid back.
g. Any person restored to active membership who is eligible to, but does not,
make an election provided for in this subsection, or who, having made the
election, fails to complete a payback within the required time (except as otherwise
provided in paragraph (1)f above), shall be considered a new member for all
purposes of the retirement system as of his or her date of restoration and shall not
be entitled to any of the rights and benefits provided under this subsection.
(2) Credit for previous employment for certain laborers, security guards and custodial
workers.
a. Any member who has denied the right at any time between April 1, 1955,
and September 1, 1962, to participate in the Miami city employees' retirement
system or in the Miami city general employees' plan by reason of employment
with the city as a laborer, security guard or custodial worker, may receive
membership credit for time employed as a laborer, security guard, or custodial
worker between the aforesaid dates, provided that:
1. The member files a written claim with the board on or before
December 31, 1995, which claim shall state all employment with the city
between April 1, 1955, and September 1, 1962, as well as any other facts
the board may require for the proper determination of the membership
credit claimed pursuant to this subsection; and
2. The member, prior to retirement or departure from city
employment, pays to the retirement system contributions for the
membership credit claimed. Such contributions shall be computed at the
then contribution rate of the members group and class times the
member's then annual earnable compensation, plus four percent interest
thereon, compounded annually from the date of first creditable service
hereunder to the date of payment.
b. Contributions made by a member pursuant to this subsection may be
made either by a single lump -sum payment or by a series of periodic payments
mutually agreed upon by the member and the board, including periodic
deductions from the members compensation. Regardless of the manner of
payment, an amount to be contributed pursuant to this subsection must be paid to
the retirement system within five years of notification to the member of the amount
to be contributed.
c. A payback permitted by this subsection must be completed in full and
within the required time period in order for any membership credit granted
hereunder to be utilized as a basis for determining any retirement system benefit.
Credit for military service.
a. Notwithstanding any provision in this division to the contrary, any
employee who was a member of the retirement system prior to entry into military
service, and who did not withdraw accumulated contributions prior to military
service, who was granted a leave of absence by the city under the provisions of
Resolution No. 16366, passed and adopted by the commission August 28, 1940,
as amended by Resolution No. 18115, passed and adopted by the commission
March 24, 1943, and who returns to service under the provisions of such
resolution, shall retain membership in the retirement system regardless of the
length of the period of absence. In determining the creditable service of any
firefighter or police officer whose retirement becomes effective on or after
December 31, 1999, credit for up to a maximum of five years of the time spent in
the military service of the Armed Forces of the United States shall be added to the
years of actual service, if: (i) the firefighter or police officer is in the active employ
of the city prior to such service and leaves a position, other than a temporary
position, for the purpose of voluntary or involuntary service in the Armed Forces of
the United States; and (ii) the firefighter or police officer is entitled to
reemployment under the provisions of the Uniformed Services Employment and
Reemployment Rights Act; and (iii) the firefighter or the police officer returns to his
or her employment as a firefighter or police officer of the city within one year from
the date of his or her release from such active service. Any member of the
retirement system who qualifies for service credit as hereinabove set forth and
serves a period of time in excess of five years shall, receive membership credit for
the time spent in the military service in excess of five years, by contributing the
amount he or she would have contributed had he or she remained in service for
the period of time in excess of five years. Payments made to the retirement
system pursuant to this paragraph shall be made in such manner as the board
prescribes.
b. Any member of the retirement system who withdrew accumulated
contributions due to entrance into military service during World War II, and who
qualifies under the provisions of Resolution No. 16366, passed and adopted by
the commission August 28, 1940, as amended by Resolution No. 18115, passed
and adopted by the commission March 24, 1943, may receive membership credit
for prior membership service by redepositing the accumulated contributions
withdrawn, together with regular interest thereon, in such manner as shall be
prescribed by the board.
c. Any member who has served on active military duty but is ineligible to
claim credit for such service under subsection (3)a or (3)b shall receive
membership credit up to a maximum of four years for the time spent on active
military service in the armed forces of the United States, provided that:
1. The active military service was wartime service as declared by
federal statute or executive order, and the member presents to the board
such proof of wartime service as the board shall determine to be sufficient;
2. The member was discharged or released from the military service
under honorable conditions;
3. The member has completed ten years of creditable service;
4. The member elects to claim membership credit on a form provided
by the board, which form shall be sent to eligible members by registered
mail upon completion of ten years' creditable service and must be returned
to the board within 30 days after receipt thereof in order to establish such
election; and
5. The member, prior to retirement, pays to the retirement system
contributions for such military service. Such contributions shall be
computed at the current contribution rate times the member's first year of
earnable compensation subsequent to July 1, 1945, for which creditable
service has been earned under the retirement system, plus four percent
interest thereon, compounded annually from the date of first creditable
service to the date of payment.
Contributions made by a member pursuant to this paragraph may be made either
by a single lump -sum payment or by a series of periodic payments mutually agreed
upon by the member and the board, including periodic deductions from the
member's compensation. Regardless of the manner of payment, an amount to be
contributed pursuant to this subsection must be paid to the retirement system
within five years of notification to the member of the amount to be contributed. If,
however, any member receives disability retirement prior to the completion of a
payback elected under this paragraph, the member shall be credited with the
military service claimed but his or her disability benefit shall be reduced by the
actuarial equivalent of the unpaid portion of the amount to be paid back.
(4) Credit for maternity leave.
a. Any member of the retirement system who, prior to March 8, 1984, took an
unpaid leave of absence for maternity purposes shall be eligible to receive
membership credit for such unpaid leave up to a maximum of 180 days. Said
election shall be available until June 24, 1985. Those members electing to claim
membership credit pursuant to this provision shall pay into the retirement system
accumulated contributions at the current contribution rate times their current
earnable compensation, such payment to be made either in a lump sum or
prorated over a period not to exceed one year.
b. On or after May 23, 1985, members shall be eligible to receive
membership credit for unpaid leave taken for maternity purposes up to a
maximum of 180 days, provided that they have exhausted all vacation time, sick
leave time, earned overtime, or similar time. Those members electing to claim
membership credit pursuant to this provision shall pay into the retirement system
accumulated contributions at the current contribution rate times their current
earnable compensation, such payment to be made either in a lump sum or
prorated over a period not to exceed one year. Any payback made pursuant to
this paragraph must commence within 30 days of the member's return from the
unpaid maternity leave.
(5) Restoration of service credit for prior continuous service. Any member who has
continuous service with the City of Miami prior to becoming a member of the system may
elect to claim membership credit for such prior service provided that such member pay
back for said prior continuous service in the following manner: (1) If it has been
determined that an error occurred (which resulted in a delay in enrollment in the system)
and such error was through no fault of the member and there is no evidence that the
member had been offered an opportunity to payback at the time such error was
discovered, then the payback shall be computed at the rates prevailing at the time the
error occurred, with regular interest thereon to date; (2) if it has been determined that no
error occurred (which resulted in a delay in enrollment in the system) or that such error
did occur and was the fault of the member or there is evidence that such error was not
the fault of the member but he/she had been offered an opportunity to payback at the
time such error was discovered and chose not to elect to pay back at that time, then the
payback shall be computed at current rates without interest. Such payment is to be made
either in a lump sum or prorated over a period not to exceed five years from the date such
member receives the board's verification of the amount. If however, any member receives
a disability retirement prior to the completion of a payback elected under this paragraph,
the member shall be credited with the time purchased but his or her disability benefit shall
be reduced by the actuarial equivalent of the unpaid portion of the amount to be paid
back.
(6) Creditable service years purchase.
a. Firefighter members.
1. A retiring firefighter member, including I.A.F.F. bargaining unit
member, who does not participate in the DROP and retires under service
retirement, or rule of 64 or 68 retirement, may purchase from available
leave balances, whole years of creditable service up to a maximum of
three years. The purchase of creditable service under this subsection may
not be utilized for eligibility for either service retirement, or rule of 64 or 68
retirement. Once the leave balances have been applied toward the
purchase of whole years of creditable service, and the amount thereof
actually paid to and received by the trust, the member may purchase the
balance of the three years by a lump sum cash payment to the trust.
Leave balances shall be determined in accordance with the applicable
labor agreement and/or leave payoff practices. The cost of creditable
service purchased shall be the prorata actuarially determined present
value based upon the member's average final compensation used to
determine the member's retirement benefit. This benefit shall be available
using after tax value of the member's leave balance; if, in the future, the
issue of income taxes is resolved, then it will be available using pre-tax
value of the member's leave balances. Effective June 12, 2007, firefighter
members and I.A.F.F. bargaining unit members, including those electing to
participate in either the FORWARD DROP or BACDROP, may elect to
transfer funds from their accounts in the Miami Firefighters' Relief and
Pension Fund (175) to the trust to purchase the three years of creditable
service referred to herein. Members may purchase three whole creditable
service years by a lump sum payment of cash to the trust or a tax qualified
transfer of funds from a member's 457 Deferred Compensation Plan at
present value as actuarially determined for each individual member. In no
case shall a firefighter member, including I.A.F.F. bargaining unit member,
purchase more than three years of creditable service through any
combination of the above provisions. No benefit provided under this
subsection shall be effective unless and until full payment in accordance
herewith is made.
2. Effective the full pay period following October 1, 2009, the
following provisions shall supersede the provisions of subsection a.1., and
govern the purchase of creditable service by firefighter members,
including, but not limited to, I.A.F.F. bargaining unit members:
A. A retiring firefighter member, including, I.A.F.F. bargaining
unit member, who does not participate in the DROP and retires
under service retirement, or rule of 64 or 68 retirement, may
purchase up to three whole years of creditable service utilizing the
member's available leave balances, a tax qualified transfer of
funds to the trust from the member's 457 Deferred Compensation
Plan at present value as actuarially determined for the individual
retiring member, lump sum payment of cash to the trust, or funds
transferred to the trust from the member's account with the Miami
Firefighters' Relief and Pension Fund (175).
B. A retiring firefighter member, including I.A.F.F. bargaining
unit member, who participates in either the FORWARD DROP or
BACDROP, may purchase up to three whole years of creditable
service utilizing a tax qualified transfer of funds to the trust from
the member's 457 Deferred Compensation Plan at present value
as actuarially determined for the individual retiring member, a lump
sum payment of cash to the trust, or funds transferred to the trust
from the member's account with the Miami Firefighters' Relief and
Pension Fund (175).
C. The following provisions shall apply to all purchases of
creditable service under paragraphs a.2.A. and 2.B.:
The purchase of creditable service shall be allowed
only immediately prior to retirement.
ii. The purchase of creditable service may not be
utilized for eligibility for either service retirement, or rule of
64 or 68 retirement. Once the leave balances or the funds
from the member's account with the Miami Firefighters'
Relief and Pension Fund (175) or those from the member's
457 Deferred Compensation Plan have been applied
toward the purchase of whole years of creditable service,
and the amount thereof actually paid to and received by
the trust, the member may purchase the balance of the
three years by a lump sum cash payment to the trust.
Leave balances shall be determined in accordance with the
applicable labor agreement and/or leave payoff practices.
The cost of creditable service purchased shall be the
prorata actuarially determined present value based upon
the member's average final compensation used to
determine the member's retirement benefit. The use of
leave balances shall be available using after tax value of
the member's leave balance; if, in the future, the issue of
income taxes is resolved, then it will be available using pre-
tax value of the member's leave balances. In no case shall
a member purchase more than three years of creditable
service through any combination of the above provisions.
No benefit provided under this subsection shall be effective
unless and until full payment in accordance herewith is
made.
b. Police officer members.
1. A police officer member, including F.O.P. bargaining unit member,
who retires on or after April 26, 2007, and does not participate in the
DROP and retires under service retirement or rule of 64 retirement, may
purchase up to three whole years of creditable service utilizing the
member's available leave balances, a tax qualified transfer of funds from
the member's 457 Deferred Compensation Plan at present value as
actuarially determined for the individual retiring member, or a lump sum
cash payment. The purchase of creditable service under this subsection
may not be utilized for eligibility for either service retirement or rule of 64
retirement. Once the leave balances and/or funds from the member's 457
Deferred Compensation Plan have been applied toward the purchase of
whole years of creditable service, and the amount thereof actually paid to
and received by the trust, the member may purchase the balance of the
three years by a lump sum cash payment to the trust. Leave balances
shall be determined in accordance with the applicable labor agreement
and/or leave payoff practices. The cost of creditable service purchased
shall be the prorata actuarially determined present value based upon the
member's average final compensation used to determine the member's
retirement benefit. This benefit shall be available using after tax value of
the member's leave balance; if, in the future, the issue of income taxes is
resolved, then it will be available using pre-tax value of the member's
leave balances. In no case shall a member purchase more than three
years of creditable service through any combination of the above
provisions. No benefit provided under this subsection shall be effective
unless and until full payment in accordance herewith is made. A police
officer member, including F.O.P. bargaining unit member, shall only be
allowed to purchase creditable service under this sub -section immediately
prior to the member's retirement.
2. A police officer member, including F.O.P. bargaining unit member,
who retires on or after April 26, 2007, and participates in the DROP may
purchase up to three whole years of creditable service utilizing a tax
qualified transfer of funds from a member's 457 Deferred Compensation
Plan at present value as actuarially determined for the individual retiring
member, or a lump sum cash payment. The purchase of creditable service
under this subsection may not be utilized for eligibility for either service
retirement or rule of 64 retirement. Once the funds from the member's 457
Deferred Compensation Plan have been applied toward the purchase of
whole years of creditable service and the amount thereof actually paid to
and received by the trust, the member may purchase the balance of the
three years by a lump sum cash payment to the trust. The cost of
creditable service purchased shall be the prorata actuarially determined
present value based upon the member's average final compensation used
to determine the member's retirement benefit. In no case shall a member
purchase more than three years of creditable service through any
combination of the above provisions. No benefit provided under this
subsection shall be effective unless and until full payment in accordance
herewith is made. A police officer member, including F.O.P. bargaining
unit member, shall only be allowed to purchase creditable service under
this subsection immediately prior to the member's retirement, including
entry into the DROP.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10910, § 1, 9-5-91; Ord. No. 11235, § 1, 3-27-95; Code
1980, § 40-211; Ord. No. 11300, § 1, 9-14-95; Ord. No. 11752, § 2, 1-26-99; Ord. No. 11944, § 2,
7-27-00; Ord. No. 12203, § 2, 3-27-02; Ord. No. 12718, § 2, 7-28-05; Ord. No. 12941, § 2, 9-11-
07; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13676, § 2, 4-27-17)
• Sec. 40-203. - Benefits.
(a) Service retirement.
(1) Any member in service who has ten or more years of creditable service may elect
to retire upon the attainment of normal retirement age. Such election shall be made upon
written application to the board, setting forth not less than ten nor more than 90 days
subsequent to the execution and filing thereof, the date the member desires to be retired.
(2) Reserved.
(3) The normal retirement age for members employed on September 26, 2010, who
as of that date had not attained ten or more years of creditable service, and members
hired on or after September 26, 2010, shall be rule of 70 retirement as defined in
subsection (b)(4) with a minimum age of 50 and ten or more years of creditable service.
(4) Notwithstanding any other provision of this retirement system, any participant who
is employed and not participating in the DROP on September 30, 2010, may elect to
receive his/her accrued benefit as of that date, determined in accordance with the
provisions of the system in effect on September 29, 2010, and payable on the date and in
the manner provided by the provisions of the system in effect on September 29, 2010.
Such participants who elect to receive their accrued benefit as of September 30, 2010, at
a date prior to the normal retirement age provided in subsection (3), shall be eligible to
receive that portion of their retirement allowance based on creditable service on or after
October 1, 2010, on the date and in the manner provided by the provisions of the system
in effect on the earlier of retirement or separation from service. Any participant who is
employed and not participating in the DROP on September 30, 2010 shall be eligible to
elect the DROP for benefits accrued prior to that date, in accordance with the provisions
of the system in effect on September 29, 2010.
(5) A member exercising service retirement on or after October 4, 1991, and before
January 9, 1994, shall be entitled to receive a retirement allowance equal to 2.75 percent
of the member's average final compensation multiplied by years of creditable service,
which amount shall be paid yearly in monthly installments. A member exercising service
retirement on or after January 9, 1994 shall be entitled to receive a retirement allowance
equal to 2.75 percent of the member's average final compensation multiplied by years of
creditable service for the first 15 years of such creditable service. Such member shall also
be entitled to receive a retirement allowance equal to three percent of member's final
average compensation multiplied by the years of creditable service in excess of 15 years.
A police officer member exercising service retirement on or after May 28, 1995,
shall be entitled to receive a retirement allowance equal to 2.75 percent of the member's
average final compensation multiplied by years of creditable service for the first 15 years of
such creditable service. Such member shall also be entitled to receive a retirement
allowance equal to three percent of member's final average compensation multiplied by the
years of creditable service in the excess of 15 years, which amount shall be paid yearly in
monthly installments.
A firefighter member exercising service retirement on or after May 28, 1995, shall
be entitled to receive a retirement allowance equal to three percent of the member's
average final compensation multiplied by years of creditable service, which amount shall
be paid yearly in monthly installments.
(6) Effective October 1, 1998, a member exercising service retirement on or after
October 1, 1998 and before October 1, 2010, and members who attained ten or more
years of creditable service as of September 26, 2010, shall be entitled to receive a
retirement allowance equal to three percent of the member's average final compensation
multiplied by years of creditable service for the first 15 years of such creditable service.
Such member shall also be entitled to receive a retirement allowance equal to three and
one-half percent of member's final average compensation multiplied by the years of
creditable service in excess of 15 years, which amount shall be paid yearly in monthly
installments.
(7) Notwithstanding any other provision of this subsection:
a. Effective October 1, 2015 for members of the IAFF bargaining unit who
exercise any retirement on or after that date, and effective October 1, 2018 for
members of the FOP bargaining unit and all members not included in any
bargaining unit, such members shall be entitled to receive a retirement allowance
equal to three percent of the member's average final compensation multiplied by
years of creditable service for the first 15 years of such creditable service, and
three and one-half percent of the member's final average compensation multiplied
by the years of creditable service in excess of 15 years, which amount shall be
paid yearly in monthly installments.
b. Members employed on September 26, 2010 who as of that date had not
attained ten or more years of Creditable Service, other than members identified in
paragraph a. above, shall be entitled to receive a retirement allowance equal to
the percentage provided in paragraph (5) for creditable service prior to September
26, 2010, and three percent of the member's average final compensation
multiplied by years of creditable service for creditable service on or after October
1, 2010, which shall be paid yearly in monthly installments.
(8) A member eligible for service retirement may choose any one of the optional
allowances available to him or her on the date of retirement, as provided in subsection
(m).
(b) Rule of 64, rule of 68, and rule of 70 retirement.
(1) Any member in service who did not withdraw from active membership in the
retirement system and retiring effective May 28, 1995, may elect service retirement on the
basis of his or her combined age and creditable service equaling 64 or more provided that
the member has reached minimum vesting requirements. Such election shall be made
upon written application to the board no less than ten days nor more than 45 days from
May 28, 1995.
(2) Upon rule of 64 retirement, on or after May 28, 1995, a police officer member shall
be entitled to receive a retirement allowance equal to 2.75 percent of the member's
average final compensation multiplied by the years of creditable service for the first 15
years of such creditable service. Such member shall also be entitled to receive a
retirement allowance equal to three percent of the member's final average compensation
multiplied by the years of creditable service in excess of 15 years.
Upon rule of 64 retirement, a firefighter member retiring on May 28, 1995, shall be
entitled to receive a retirement allowance equal to three percent of the member's average
final compensation multiplied by years of creditable service which amount shall be paid
yearly in monthly installments.
A member eligible for rule of 64 or rule of 68 retirement may choose one of the
optional allowances available to him or her on the date of retirement, as provided in
subsection (m).
(3) Upon rule of 64 retirement, on or after October 1, 1998, or upon the Rule of 68
retirement on or after October 1, 2009, a member shall be entitled to receive a retirement
allowance equal to three percent of the member's average final compensation multiplied
by years of creditable service for the first 15 years of such creditable service. Such
member shall also be entitled to receive a retirement allowance equal to three and one-
half percent of member's final average compensation multiplied by the years of creditable
service in excess of 15 years, which amount shall be paid yearly in monthly installments.
A member eligible for rule of 64 or rule of 68 retirement may choose one of the optional
allowances available to him or her on the date of retirement, as provided in subsection
(m).
(4) Effective September 30, 2010, upon rule of 70 retirement on or after October 1,
2010, a member shall be entitled to receive a retirement allowance equal to the
percentage provided in subsection (a)(5) for creditable service prior to October 1, 2010,
and three percent of the member's average final compensation multiplied by years of
creditable service for creditable service on and after October 1, 2010, which amount shall
be paid yearly in monthly installments. A member eligible for rule of 70 retirement may
choose one of the optional allowances available to him or her on the date of retirement,
as provided in subsection (m).
(c) Limitation on benefits.
(1) Effective October 1, 1998, member retirement allowances shall not exceed 100
percent of the member's final average compensation for members retiring under service
retirement or rule of 64 retirement, and effective October 1, 2009 for rule of 68 retirement
with the following exceptions:
a. Members whose retirement allowances, prior to October 1, 1998, who had
already earned 100 percent or greater of the member's average final
compensation shall continue to accrue pension benefits as outlined
under section 40-203.
b. Members whose retirement allowance exceeds 100 percent of their
average final compensation as of October 1, 1998, due to the multiplier change,
shall be capped at the new percentage.
(2) Effective June 12, 2007, firefighter member, including, but not limited to, I.A.F.F.
bargaining unit member, retirement allowances shall not exceed 100 percent of the
member's final average compensation for firefighter members and I.A.F.F. bargaining unit
members retiring under service retirement, rule of 64 retirement or rule of 68 retirement.
(3) Members who as of September 26, 2010 had not attained ten or more years of
creditable service and members hired on or after October 1, 2010 shall have a maximum
retirement benefit which shall not exceed the lesser of $100,000.00 or 100 percent of final
average compensation. In no event shall the benefits of members hired before September
26, 2010 be less than the benefits earned and accrued as of September 26, 2010, as
determined in accordance with the benefits as they existed prior to September 26, 2010.
(d) Early service retirement.
(1) Any member in service 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 normal
retirement age. Such election shall be made upon written application to the board, setting
forth not less than ten nor more than 90 days subsequent to the execution and filing
thereof, the date the member desires to be retired.
(2) A member eligible for early service retirement may choose any one of the optional
allowances available to him or her on the date of retirement, as provided in subsection
(m).
(3) A member who has elected to retire on an early service retirement shall not be
eligible to participate in the DROP.
(e) Vested right to retirement.
(1) If a member who is not entitled to retire ceases to be a city employee for any
reason other than death or willful misconduct in office, he or she may elect to continue as
a member not in service and retire upon subsequent attainment of normal retirement age,
provided:
a. That when the member ceases to be a city employee, the member has
completed at least ten years of creditable service; and further provided
b. That the member does not withdraw his or her accumulated contributions.
(2) A member electing to become a member not in service on or after October 4,
1991, and before January 9, 1994, shall be entitled to receive a retirement allowance
equal to 2.75 percent of member's average final compensation multiplied by years of
creditable service which amount shall be paid yearly in monthly installments, upon
attainment of normal retirement age. A member electing to become a member not in
service on or after January 9, 1994, shall be entitled to receive a retirement allowance
equal to 2.75 percent of the member's average final compensation multiplied by the
average final compensation multiplied by the years of creditable service for the first 15
years of such creditable service. Such member shall also be entitled to receive a
retirement allowance equal to three percent of member's final average compensation
multiplied by the years of creditable service in excess of 15 years, upon attainment of
normal retirement age.
A member electing to become a member not in service on or after October 1, 1998,
shall be entitled to receive a retirement allowance equal to three percent of the member's
average final compensation multiplied by years of creditable service for the first 15 years of
such creditable service. Such member shall also be entitled to receive a retirement
allowance equal to three and one-half percent of member's final average compensation
multiplied by the years of creditable service in excess of 15 years, upon attainment of
normal retirement age.
(3) 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 a
city employee, excluding all amounts picked up from the member's earnable
compensation and credited to the COLA fund, plus only such regular interest as has been
accumulated during the first three years thereafter.
(4) If a member not in service dies prior to retirement, his or her beneficiary shall be
paid the amount of his or her accumulated contributions at the time he or she ceased to
be a city employee, excluding all amounts picked up from the member's earnable
compensation and credited to the COLA fund, plus regular interest thereon to the date of
the member's death.
(5) If a person elects a vested right to retirement under any retirement system or plan
sponsored by the city and thereafter becomes an employee, he or she shall become a
new member of the retirement system on the date employment recommences and shall
make regular contributions to the retirement system at the rate required by subsection 40-
196(a). Such member shall be entitled to receive a retirement benefit therefor as if he or
she were a new entrant upon the date of subsequent employment and, in addition, shall
be entitled to receive a retirement benefit for his or her employment in accordance with
subsection (d)(2).
(6) A member not in service shall not be eligible to participate in the DROP.
Ordinary disability retirement.
(1) Any member in service who has ten or more years of creditable service but who is
not eligible for a service retirement allowance may, upon written application, be retired by
the board on an ordinary disability retirement allowance; provided, that after medical
examination of such applicant, the physician retained by the board shall certify that the
member is mentally or physically totally incapacitated for the further performance of duty
(not as a result of an accident in the actual performance of duty as defined in subsection
(i) of this section), that such incapacity is likely to be permanent, and that such member
should be retired.
(2) a. Upon retirement for ordinary disability on or after October 4, 1991 and
before January 9, 1994, a member shall be entitled to receive a retirement
allowance equal to 2.75 percent of 90 percent of the member's average final
compensation multiplied by years of creditable service, which amount shall be
paid yearly in monthly installments, provided such retirement allowance exceeds
30 percent of the member's average final compensation; otherwise, 30 percent of
the member's average final compensation shall be paid yearly in monthly
installments.
b. Upon retirement for ordinary disability on or after January 9, 1994, a
member shall be entitled to receive a retirement allowance equal to 2.75 percent
of 90 percent of the member's average final compensation multiplied by the first
15 years of creditable service. Creditable service of such member in excess of 15
years shall be multiplied by three percent of 90 percent of the member's average
final compensation times years of creditable service, which amount shall be paid
yearly in monthly installments, provided such retirement allowance is at least 30
percent of the member's average final compensation, otherwise 30 percent of the
member's average final compensation shall be paid yearly in monthly
installments.
c. Upon retirement for ordinary disability on or after October 1, 1998, a
member shall be entitled to receive a retirement allowance equal to three percent
of 90 percent of the member's average final compensation multiplied by the first
15 years of creditable service. Creditable service of such member in excess of 15
years shall be multiplied by three and one-half percent of 90 percent of the
member's average final compensation times years of creditable service which
amount shall be paid yearly in monthly installments, provided such retirement
allowance is at least 30 percent of the member's average final compensation,
otherwise 30 percent of the member's average final compensation shall be paid
yearly in monthly installments.
d. For those members who retire effective on or after December 31, 1999,
the retirement allowance shall be payable for life, except that in the event the
member dies before such allowance has been received for a period of ten years,
the member's beneficiary or beneficiaries shall be paid the same allowance for the
remainder of the ten-year period.
(3) 'A member entitled to receive an ordinary disability retirement allowance shall not
be eligible for a return of contributions as provided in subsection 40-212(j) for optional
allowances as provided in subsection 40-212(m), nor for participation in the DROP.
(4) A DROP participant shall not be entitled to receive an ordinary disability
retirement.
(g)
Accidental or service -incurred disability retirement.
(1) Any member in service who, prior to attaining the age of 60, has been totally and
permanently incapacitated for duty as the natural and proximate result of an accident
occurring while in the actual performance of duty at some definite time and place, shall be
retired for accidentally incurred disability; provided that:
a. Such incapacity for duty has been total, permanent and continuous from a
time prior to the member attaining the age of 60;
b. The physician retained by the board, after a medical examination of such
member, shall certify in writing that the member is mentally or physically totally
incapacitated in accordance with the definition of permanent total disability;
c. The board shall concur with the report of the physician employed by the
board; and
d. The physical condition of the member shall be subject to a review by the
physician retained by the board, at the request of the board, as often as the board
shall deem it advisable.
(2) A member may be considered totally and permanently disabled for further
performance of duty for the purpose of this section when said member is unable, due to
an accident, illness or injury incurred in the line of duty, to perform within the member's
classification.
(3) a. Any condition or impairment of health caused by tuberculosis, heart
disease or hypertension, on the part of a member, which condition results in total
and permanent incapacitation for duty, shall be presumed to have been accidental
and suffered in the line of duty unless the contrary be shown by competent
evidence; provided, however, that any such member shall have successfully
passed a physical examination upon entering into service as a firefighter or police
officer, which examination failed to reveal any evidence of any such condition.
b. Nothing herein shall be construed to extend or otherwise affect the
provisions of F.S. ch. 440 pertaining to workers' compensation.
(4) When deciding whether to grant an accidental or service -incurred disability
retirement, the board shall obtain any and all available information, including, but not
limited to, medical reports which the board deems necessary in order to assist the board
in arriving at its decision.
(5) a. Upon retirement for accidental disability or service -incurred disability, a
member shall receive a pension which shall be equal to 66 2/3 percent of his/her
average final compensation or 66 2/3 percent of his/her final compensation,
whichever is greater.
b. For those members who retire effective on or after December 31, 1999,
upon retirement for accidental disability or service -incurred disability, a member
shall receive a retirement allowance payable for life which shall be equal to 66 2/3
percent of the member's average final compensation or 66 2/3 percent of the
member's final compensation, whichever is greater, except that in the event a
member dies before such allowance has been received for a period of ten years,
the member's beneficiary or beneficiaries shall be paid the same allowance for the
remainder of the ten-year period.
(6) A member entitled to receive an accidental or service -incurred disability
retirement allowance shall not be eligible for a return of contributions as provided in
subsection (j), for optional allowances as provided in subsection (m), nor for participation
in the DROP.
(7) In lieu of the benefits set forth in subsection (5) above, upon the death of any
member who has received an accidental or service -incurred disability retirement, the
spouse of said member who has been nominated and designated by the member as said
member's beneficiary if eligible shall receive the payment of an amount equal
to 40 percent of the member's monthly retirement allowance during the lifetime of said
spouse, in accordance with subsection (n) of this section.
(8) A DROP participant shall not be entitled to receive an accidental or service -
incurred disability retirement.
(h) Ordinary death benefit.
(1) Upon receipt by the board of proper proofs of the death of a member in service
who has three or more years of creditable service, which death is not the result of an
accident in the actual performance of duty as defined in subsection (i) of this section,
there shall be paid to such person, if any, as the member shall have nominated by written
designation duly executed and filed with the board, otherwise to the member's legal
representative, a benefit equal to a lump -sum payment of 50 percent of the earnable
compensation received by the member during the year immediately preceding the
member's death.
(2) For those members who retire effective on or after December 31, 1999, the
member's beneficiary or beneficiaries shall be entitled to the benefits otherwise payable
to the member at early or normal retirement age for a period of ten years, should a
member having at least ten years of creditable service die prior to retirement. Anything
herein to the contrary, notwithstanding this provision, shall not be implemented as to
police officer members unless and until there are "additional premium tax revenues" as
defined in F.S. § 185.35(1)(b), to the extent necessary to fund such benefit.
(3) a. Notwithstanding any provision in this division to the contrary, in the event
a member who has become eligible for service, early service or rule of 64
retirement but has not retired dies, the member shall be considered to have been
retired on the date of death. If such event occurs prior to October 1, 2010, the
payment of 40 percent of the member's monthly retirement allowance shall be
paid at the member's death to the member's spouse during the lifetime of such
spouse or, at the option of such spouse, the spouse shall receive the sum of the
deceased member's accumulated contributions to the date of death plus a benefit
equal to a lump -sum payment of 50 percent of the earnable compensation
received by the member during the year immediately preceding the member's
death. If such event occurs on or after October 1, 2010, and the member has not
elected an optional allowance in accordance with subsection (m), the member will
be presumed to have elected Option 6(c) providing for payment of 40 percent of
the member's monthly retirement allowance to the member's spouse during the
lifetime of such spouse.
b. In lieu of the benefits set forth in subsection (2), for those members who
retire effective on or after December 31, 1999, in the event a member who has
become eligible for service, or early service retirement but has no retired dies, the
member shall be considered to have been retired on the date of death. If such
event occurs prior to October 1, 2010, the payment of 40 percent of the member's
monthly retirement allowance shall be paid at the member's death to the
member's spouse during the lifetime of such spouse or, at the option of such
spouse the spouse shall receive the sum of deceased member's accumulated
contributions to the date of death plus a benefit equal to a lump -sum payment of
50 percent of the earned compensation received by the member during the year
immediately preceding the member's death. If such event occurs on or after
October 1, 2010, and the member has not elected an optional allowance in
accordance with subsection (m), the member will be presumed to have elected
Option 6(c) providing for payment of 40 percent of the member's monthly
retirement allowance to the member's spouse during the lifetime of such spouse.
(4) If a retired member dies prior to having received 12 monthly retirement allowance
payments and prior to any optional allowance elected by the member having become
effective, there shall be paid to such person, if any, as the member shall have nominated
by written designation duly executed and filed with the board, otherwise, to the member's
legal representative, a lump -sum benefit equal to the sum of the 12 monthly retirement
allowance payments to which the member would otherwise have become entitled, less
the payments the member received.
(5) Notwithstanding the foregoing, any pre -retirement death benefit payable under
this section shall be "incidental" in compliance with Treasury Regulations Section 1.4011
(b)(1).
(6) In the case of a death occurring on or after January 1, 2007, if a member dies
while performing qualified military service (as defined in Code Section 414 (u)), the
survivors of the member are entitled to any additional benefits (other than benefit accruals
relating to the period of qualified military service) provided under the plan as if the
member had resumed and then terminated employment on account of death.
Accidental death benefit.
(1) If the board shall decide that the death of a member in service was the result of
an accident in the performance of duty and not caused by willful negligence on the part of
the member, then there shall be paid an amount equal to one-half of the member's
average final compensation, which amount shall be paid yearly in monthly installments, to
the member's spouse, if he or she leaves a spouse, to continue until the death or
remarriage of such spouse; or if there be no spouse, or if the spouse dies or remarries
before the youngest child of such deceased member shall have attained the age of 18,
then to his or her children under such age, if he or she leaves children, divided in such
manner as the board in its discretion shall determine, to continue as a joint and
survivorship pension for the benefit of the children under such age until every child dies
or attains such age; or if there be no spouse or children under the age of 18 years living
at the death of such member, then to his or her dependent father or dependent mother,
as the board in its discretion shall direct, to continue for life; provided that if there be no
such beneficiary, the amount which otherwise would have been paid as an ordinary death
benefit shall be paid to the member's legal representative. Provided, however, in the
event a member who retires effective on or after December 31, 1999, has at least ten
years of creditable service dies prior to retirement, the member's beneficiary or
beneficiaries shall be entitled to the benefits otherwise payable to the member at early or
normal retirement age for a period of ten years. Anything herein to the contrary
notwithstanding, this provision shall not be implemented as to police officer members
unless and until there are "additional premium tax revenues" as defined in F.S. §
185.35(1)(b), to the extent necessary to fund such benefit.
(2) The board shall decide whether the death of a member in service was the result of
an accident in the performance of duty and not caused by willful negligence on the part of
the member in the following circumstances:
a. Upon receipt of proper proofs of the death of a member in service
indicating that such death was the natural and proximate result of an accident
occurring at some definite time and place while the member was in the actual
performance of duty; or
b. Upon receipt of proper proofs of death of a member in service indicating
that such death resulted from a condition or impairment of health caused by
tuberculosis, hypertension or heart disease, which condition or impairment of
health shall be presumed by the board to have been accidentally incurred in the
line of duty unless the contrary be shown by competent evidence; provided, that
the deceased member shall have successfully passed a physical examination
upon entering into service as a firefighter or police officer, which examination
failed to reveal any evidence of such condition.
(3) Notwithstanding any other provision of this chapter to the contrary, the surviving
spouse of any member killed in the line of duty shall not lose survivor retirement benefits
if the spouse remarries. The surviving spouse of such deceased member whose benefit
terminated because of remarriage shall have the benefit reinstated as of July 1, 1994, at
an amount that would have been payable had such benefit not been terminated.
(4) In the case of a DROP participant, there shall be no accidental death benefit.
(5) Notwithstanding the foregoing, any pre -retirement death benefit payable under
this section shall be "incidental" in compliance with Treasury Regulations Section 1.401-
1(b)(1).
(j) Return of contributions. Should a member cease to be a city employee, the member shall
be paid on demand the sum of his or her accumulated contributions, with the following
exceptions:
(1) Any member who has been granted a retirement benefit shall not be entitled to a
return of any accumulated contributions unless the member is eligible for the benefits of
option 6.a as set forth in subsection (m) or unless the member is entitled to a return of
excess contributions as a result of membership in the city employees' retirement system
as set forth in subsection 40-205(2).
(2) In the event of the death of any member, there shall be no distribution of the
member's accumulated contributions unless the member died in service. In such event,
accumulated contributions shall be payable to such persons, if any, as the member shall
have nominated by written designation duly executed and filed with the board, otherwise
to the member's legal representative. The return of accumulated contributions pursuant to
the provisions of this paragraph shall not be construed as foreclosing the right of any
person to an ordinary death benefit or an accidental death benefit as hereinabove set
forth.
(3) a. This article 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 article, a distributee may elect, at the time
and in the manner prescribed by 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.
b. Definitions.
1. Direct rollover shall mean a payment by the plan to the eligible
retirement plan specified by the distributee.
2. Distributee shall mean 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.
3. Eligible retirement plan shall mean 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 Code, an
annuity plan described in section 403(a) of the Internal Revenue Code, or
a qualified trust described in section 401(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.
4. Eligible rollover distribution shall mean 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: any distribution that is one of
a series of substantially equal periodic payments (not less 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 included in gross income.
(k) Limitation of disability benefits; reexamination of beneficiaries retired on account of
disability.
(1) Any member who is unable to perform within the member's classification may be
assigned to any other job classification; provided, that the member consents to such
assignment and further provided, that the member's salary in the new job class shall be
no less than 100 percent of the job class from which the member was transferred.
(2) If a former member who has received an accidental disability retirement is
performing the duties of a police officer or firefighter, or is performing services which are
substantially equivalent to duties that can be assigned within the employment
classification from which the member was retired, the board shall have the authority to
limit the retirement benefits of such member as hereinafter provided: If a former member
who has received an accidental disability retirement is engaged in such gainful
occupation, the former member's salary from said occupation when added to the sum
which he or she is receiving on account of accidental disability retirement shall not
exceed 100 percent of the current salary for the classification from which the member
was retired. If the retirement benefit plus the salary exceeds 100 percent of the current
classification salary, the retirement benefit shall be reduced by the amount in excess of
100 percent. The board may periodically require of former members receiving a disability
pension, on a form approved by the board for such purpose, a statement of salary and
type of employment.
(3) Any former member who is receiving a disability retirement allowance shall be
subject, prior to normal retirement age, to examination by a physician or physicians upon
request by the board. Such examination may be conducted at the member's place of
residence or at a place mutually agreed upon by the member and the board. Following
such examination, the physician or physicians shall report to the board as to the
continuance of the former member's total and permanent incapacity for duty.
a. In the event the board finds that a disability beneficiary is no longer
incapacitated for service within his or her former classification in accordance with
requirements of the civil service rules and regulations, the board may require that
the beneficiary be returned to the former classification with all rights and benefits
of such classification or, with the beneficiary's consent, to other classifications
within the limits of his or her mental or physical capacities at a rate of
compensation not less than 100 percent of the pay which he or she would be
entitled to receive at the time of return to service for the classification occupied by
the beneficiary prior to his or her incapacity.
b. Should any disability beneficiary refuse to submit to a medical examination
upon request by the board, his or her retirement allowance may be discontinued
until withdrawal of the refusal, and should the refusal continue for one year, all
right in and to a retirement benefit may be revoked by the board. If any beneficiary
in receipt of a disability retirement allowance is found by the board, prior to normal
retirement age, to be no longer incapacitated but is not restored to service as a
member in the classification from which he or she was retired because of his or
her own refusal to accept employment offered to him or her, the beneficiary's
disability retirement allowance shall be terminated.
(I) Restoration of beneficiaries to membership.
(1) Should a disability beneficiary be restored to or be in service at a compensation
equal to or greater than his or her average final compensation at retirement, or should
any other beneficiary be restored to service, the following shall apply:
a. The retirement allowance of the beneficiary shall cease, he or she shall
again become a member of the retirement system and regular contributions shall
resume at the rate required by the retirement system; and
b. The beneficiary shall be credited with all service as a member standing to
his or her credit at the time of retirement, providing he or she returns, in such
manner as shall be prescribed by the board, the amount of any accumulated
contributions of money received upon retirement.
(2) If a beneficiary is restored to membership on or after the attainment of age 50, he
or she shall, on subsequent retirement, be credited with all service as a member
subsequent to his or her last restoration to membership and shall receive a retirement
allowance therefor as if he or she were a new entrant, and, in addition, the former
beneficiary shall receive the retirement allowance which he or she was receiving
immediately prior to his or her last restoration, but the total pension shall not exceed the
proportion of average final compensation he or she would have received as a retirement
allowance had he or she remained during the period of prior retirement.
(3) Participation in the DROP shall not be considered restoration to service under
subsection (I).
Optional allowances.
(1) Effective October 1, 2010, for members who retire or terminate employment with
ten or more years of creditable service on or after that date, the normal form of benefit
shall be a benefit payable for the lifetime of the member, and in the event the member
dies within ten years following retirement, the same monthly benefit shall be paid to the
member's designated beneficiary or beneficiaries for the remaining balance of such ten
year period. Any member may elect to receive in lieu of the retirement allowance
otherwise payable to him or her, the actuarial equivalent at that time of his or her
retirement allowance in a reduced retirement allowance payable as follows; provided, that
no election of an optional allowance shall be effective in case a beneficiary dies within ten
days after the election of an option as provided in this section, and further provided that
such a beneficiary shall be considered as a member in service at the time of death, until
the first payment on account of any benefit becomes normally due:
Option 1: If the member dies before receiving in payment of the member's
retirement allowance, the value of his or her accumulated contributions at the time of
retirement, the balance shall be paid to such person, if any, as the member shall have
nominated by written designation duly executed and filed with the board, otherwise to the
member's legal representative; or
Option 2: Upon the member's death, his or her reduced retirement allowance shall
be continued through the life of, and paid to, such person as the member shall have
nominated by written designation duly executed and filed with the board at the time of
retirement; or
Option 3: Upon the member's death, one-half of his or her reduced retirement
allowance shall be continued throughout the life of, and paid to such person as the
member shall have nominated by written designation duly executed and filed with the
board at the time of retirement; or
Option 4: Upon the member's death, some other benefit shall be payable; provided,
that the total value of the allowance during the member's life and the succeeding benefit
shall be computed to be of equivalent actuarial value to the allowance which he or she
would receive without optional modification; and provided, that the benefit shall be
approved by the board; or
Option 5: If, as a result of an accidental injury incurred in the line of duty, the
member shall have been so seriously injured that he or she is unable to execute and file a
designation of an optional allowance, the board may, with the consent of the principal
beneficiary, designate an option, and if such condition shall have delayed the application
for retirement and the selection of an option, the board may waive the requirement as to
the member's life for ten days after retirement date, and may declare such optional
allowance irrevocably effective immediately upon the member's retirement; or
Option 6: Any member upon service, early service, rule of 64 or rule of 68
retirement may elect to receive benefits in one of the following three forms, in lieu of the
retirement allowance otherwise payable to the member:
a. Such member may elect to withdraw the sum of his or her accumulated
contributions credited as of the member's date of retirement, excluding all
amounts picked up from the member's earnable compensation and credited to the
COLA fund, and be paid a monthly service retirement allowance of one-half the
amount to which he or she would otherwise be entitled;
b. Such member may elect to receive his or her normal monthly service
retirement allowance plus an additional five percent of such service retirement
allowance; or
c. Such member may direct the payment of a benefit of 40 percent of the
member's monthly retirement allowance to be paid at the member's death to his or
her spouse nominated and designated by him or her at the time of retirement,
such benefit to be payable during the lifetime of such spouse; or
d. For those members who retire effective on or after December 31, 1999
and before October 1, 2010, such member(s) may elect to receive his or her
normal monthly service retirement allowance payable for life; except that in the
event the member dies before he or she has received such allowance for a period
of ten years, the member's beneficiary or beneficiaries shall be paid the same
allowance for the remainder of the ten-year period.
(2) In the event a member who as of September 26, 2010 had attained ten years of
creditable service elects a retirement allowance under option 2, 3, or 4 and has
nominated and designated his or her spouse at the time of retirement as the person to
receive payment of the benefit upon the member's death, the total minimum value of the
allowance during the member's life and the succeeding benefit shall be computed to be of
equivalent actuarial value to the allowance which he or she would have received had the
member chosen to have his or her retirement allowance paid under the provisions of
option 6c.
(3) In no event shall any language contained herein be construed as authorizing or
allowing any member the right or privilege to exercise more than one of options 1 through
6 enumerated at this subsection.
(n) Changes in beneficiary after retirement. Any member of the retirement system who retires
from service and thereafter desires to change a designated beneficiary may do so subject to the
following qualifications:
(1) At the time the change in beneficiary is to be made, evidence of good health must
be supplied for both the member and the to -be -deleted beneficiary.
(2) To the extent the to -be -substituted beneficiary is younger (older) than the to -be -
deleted beneficiary, an actuarial adjustment shall be applied to reflect the expected longer
(shorter) life expectancy of the to -be -substituted beneficiary.
(o) Pension offset by other compensation benefit. Any periodic or lump -sum amounts which
may be paid or payable under the provisions of any state worker's compensation or similar law to
a member or to the dependents of a member on account of any disability or death, shall be offset
against and payable in lieu of any benefits payable from funds provided by the city under the
provisions of the retirement system on account of the same disability or death.
(p) Deferred retirement option program. Effective October 1, 1995, there is hereby created
the City Deferred Retirement Option Program (DROP) to be administered by the board of
trustees. Only firefighters who have retired after reaching age 50 within ten years of creditable
service or who have retired after reaching a combination of age plus years of creditable service
equal to either 64 or 68 as applicable, and who elect to defer receipt of their retirement benefit
into a DROP account shall be eligible to participate in the DROP. Effective upon the ratification of
the Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007-2010
collective bargaining agreement with the IAFF, the maximum participation in the Forward DROP
for firefighters shall be 54 full months. Effective upon the ratification of the Memorandum of
Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective bargaining
agreement with the FOP, the maximum participation in the Forward DROP for police officers who
elect Forward DROP or are currently in Forward DROP shall be 84 full months.
(1) Election to participate in the DROP shall be made by using forms and procedures
prescribed by the board.
(2) A firefighter's creditable service, accrued benefits and compensation calculation
shall be frozen upon retirement. The amount of the monthly benefit shall be determined
based on the creditable service, average final compensation, and retirement option
selected in accordance with subsection (m) herein. Average final compensation shall be
based on the single highest year preceding participation in the DROP.
(3) Upon commencement of participation in the DROP, the participant's contribution
and the city's contribution to the retirement trust for that participant shall cease as the
participant will not earn further creditable service for pension purposes.
(4) Effective upon the ratification of the Memorandum of Understanding of July 11,
2008 amending Article 43 of the 2007-2010 collective bargaining agreement with the
IAFF, the maximum participation in the Forward DROP for firefighters shall be 54 full
months. Effective upon the ratification of the Memorandum of Understanding of May 8,
2008 amending Article 39 of the 2007-2010 collective bargaining agreement with the
FOP, the maximum participation in the Forward DROP for police officers who elect
Forward DROP or are currently in Forward DROP, shall be 84 full months. No payment
shall be made to or for the benefit of a DROP participant beyond these periods.
(5) For each person electing participation in the DROP, and individual DROP account
shall be created. Payment shall be made by the retirement trust into the employee'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 receipt of pension benefits.
(6) The board of trustees shall establish, by administrative rule, a series of
investment vehicles which may be chosen by DROP participants. Any losses, charges, or
expenses incurred by the participant in the participant's DROP account by virtue of the
option selected by the participant or otherwise, shall not be made up by the City of Miami
or the pension trust, but all of same shall be borne by the participant.
(7) Upon termination of employment, a member may receive distribution from the
DROP account in the following manner:
a. Lump sum distribution (which may be used at the DROP participant's
discretion to purchase an annuity).
b. Periodic payments.
c. Roll over of the balance to another qualified retirement plan, such as an
IRA.
A member may defer distribution until the latest date authorized by section
401(a)(9) of the Internal Revenue Code.
(8) DROP participation shall not affect any other death or disability benefit provided to
a firefighter under federal law, state law, city ordinance, or any rights or benefits under
any applicable collective bargaining agreement.
(9) If a DROP participant dies before the DROP account balances are paid out in full,
the person(s) duly so 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.
(q) Modified deferred retirement option program. Effective upon approval by the city
commission of the F.O.P. and I.A.F.F. labor agreements for October 1, 1998, through September
30, 2001, the DROP of the retirement system shall consist of a Forward DROP and a BACDROP.
Any member who has reached age 50 with ten years of creditable service, or who has attained a
combination of age plus years of creditable service equal to either 64 or 68 as applicable, 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
single highest year preceding participation in the DROP, as the basis of calculating the
DROP payment. Upon commencement of participation in the DROP, the participant's
contribution and the city contribution to the retirement system for that participant shall
cease as the participant will be earning no further service credit. The participant shall not
acquire additional pension credit for the purposes of the pension plan but may continue
city employment for up to a maximum as established in this article. Effective upon the
ratification of the Memorandum of Understanding of July 11, 2008 amending Article 43 of
the 2007-2010 collective bargaining agreement with the IAFF, the maximum participation
in the Forward DROP for firefighters shall be 54 full months. Effective upon the ratification
of the Memorandum of Understanding of May 8, 2008 amending Article 39 of the 2007-
2010 collective bargaining agreement with the FOP, the maximum participation in the
Forward DROP for police officers who elect Forward DROP or are currently in Forward
DROP shall be 84 full months.
(2) Maximum participation. Effective upon the ratification of the Memorandum of
Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective
bargaining agreement with the IAFF, the maximum participation in the Forward DROP for
firefighters shall be 54 full months. Effective upon the ratification of the Memorandum of
Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective bargaining
agreement with the FOP, the maximum participation in the Forward DROP for police
officers who elect Forward DROP or are currently in Forward DROP shall be 84 full
months. Once the maximum participation has been achieved, the participant must
terminate employment.
(3) Creation of individual account. For each person electing participation in the
DROP, an individual account shall be created.
(4) Earnings on DROP account. The board of trustees of the retirement system 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 FIPO trust fund, but any such loss shall
be borne by the participant only. Upon participation in the DROP, the participant shall
make a selection of the earnings program on forms provided by the board. All interest
shall be credited to the participant'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.
A participant may defer payment until the latest date authorized by Section
401(a)(9) of the Internal Revenue Code.
(6) Disability. A DROP participant shall not be entitled to receive an ordinary or
service disability retirement.
(7) Death. In the case of the death of a DROP participant, there shall be no
accidental death benefit for pension purposes.
(8) Participation does not affect other disability benefit. 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.
(9) Death of participant before account balances paid out in full. If a DROP participant
dies before the DROP account balances are paid out in full, the person(s) duly so
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.
(10) COLA participation. Eligibility for payments for cost of living adjustment (COLA)
shall not commence until a member has actually separated from employment with the
city. COLA service years shall be based upon creditable years of service in calculating
the employee's pension. For the purpose of complying with Section H(3)(m) of the
Amended Final Judgment in Gates, the employee's "date of retirement" shall be the date
of actual termination of employment as an employee with the city and not the date of
election to DROP.
(11) Agreement binding. Any employee who enters into a DROP agreement shall be
bound by the terms and conditions of that said agreement, except that firefighters who
are members of the 48-month DROP as of the date of the ratification of the IAFF labor
agreement effective October 1, 2001 through September 30, 2004 may extend their
existing DROP agreements to a maximum of 54 months. Any employee who enters into a
DROP agreement shall be bound by the terms and conditions of said agreement, except
that police officers who are members of the 48-month DROP as of the date of the
ratification of the Memorandum of Understanding of May 8, 2008 amending Article 39 of
the 2007-2010 collective bargaining agreement with the FOP, may extend their existing
DROP agreements to a maximum of 84 months. Any member who elects to be a DROP
participant in the future shall be bound by the specific terms of the participant's DROP
agreement entered into at that time.
(12) 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 system 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 system. The amount of the monthly benefit
shall be determined based on the creditable service, average final compensation, and
retirement option selected in accordance with subsection 40-203(m). 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.
(13) BACDROP. An I.A.F.F. bargaining unit member may elect to BACDROP to a date
(retirement 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 36 months. Effective upon the ratification of the Memorandum of
Understanding of July 11, 2008 amending Article 43 of the 2007-2010 collective
bargaining agreement with the IAFF the maximum participation in the Forward DROP for
firefighters shall be 54 full months. Effective upon the ratification of the Memorandum of
Understanding of May 8, 2008 amending Article 39 of the 2007-2010 collective bargaining
agreement with the FOP, the maximum participation in the Forward DROP for police
officers shall be 84 full months. Upon ratification of the 2004-2005 F.O.P. labor
agreement, an F.O.P. bargaining unit member may elect to BACDROP to a date
(retirement date) no further back than the date of the member's retirement eligibility date,
provided that the BACDROP period must be in 12-month increments, beginning at the
start of a pay period, not to exceed a total of 12 months. Participation in the BACDROP
does not preclude participation in the Forward DROP program.
(14) BACKDROP option. A backdrop benefit option shall be implemented on January
1, 2013 to replace the BACDROP. Employees who were vested as of December 31, 2012
shall be eligible for the forward DROP or the backdrop. Employees who had 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 forward DROP. Anyone eligible for the forward
DROP as of January 1, 2013, remains eligible for the forward DROP as it presently exists
and anyone eligible for the forward DROP as of January 1, 2013 who chooses not to
enter the forward DROP remains eligible for the backdrop.
a. An eligible employee who elects the backdrop option shall receive a
monthly benefit payable on the employee's actual retirement date (date of
retirement and separation from city employment) based on the benefit the
employee would have received if he/she had left city employment and retired on
an earlier date after attaining normal retirement eligibility (the "backdrop date"). In
addition, an eligible employee who elects the backdrop option will receive a lump
sum payment equal to the accumulation of monthly retirement benefit payments
he/she would have received during the period following the backdrop date through
the actual retirement date ("backdrop period"), plus interest at the rate of 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 40-203(m) at the time of electing the backdrop option. The employee's
monthly benefit as well as the lump sum payment under the backdrop option is
based on the form of benefit selected.
b. Employees are eligible to elect the backdrop option after completing one
year of creditable service following the normal retirement date. The maximum
backdrop period is seven years. Eligible employees who wish to elect the
backdrop option must provide written notification to the department director and
the department of human resources at least eight months prior to the employee's
retirement date; provided a lesser notice period may be approved by the city
manager due to special circumstances. Employees will be able to revoke their
backdrop election one time, but within one month of their election. However, if an
employee is granted a lesser notice period by the city manager due to special
circumstances, the employee will not be eligible for the one-time backdrop
election revocation. Employees are not required to elect the backdrop option.
c. All or a portion of the lump sum payment under the backdrop option may
be rolled over to an eligible retirement plan or IRA in accordance with federal law.
The rollover of DROP funds into the Miami Firefighters' Relief & Pension Fund
(175) shall be allowed if rollovers of this type are approved by the Miami
Firefighters' Relief & Pension Fund (175) trustee board.
d. If the backdrop option is ever terminated, for any reason, the rights of all
persons then in 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.
(15) Compliance with Internal Revenue Code Sections 414(k) and 4140). To the extent
required under the Internal Revenue Code, the DROP under the retirement system shall
be treated as a defined contribution plan to the extent that the member's benefits under
the retirement system are based on the member's DROP account. The amount of "annual
additions" (as such term is defined in Section 415(c)(2) of the Internal Revenue Code and
Treasury Regulations 1.415(c)-1(b)) which may be allocated under the DROP to a
member's DROP account for a "limitation year" may not exceed the maximum permissible
amount under Section 415(c)(1) of the Internal Revenue Code and Treasury Regulations
1.415(c)-1(a)(1) (the "Annual Maximum Amount"). For purposes hereof, the term
"limitation year" means the 12-month period beginning on October 1. In addition, for
purposes of determining a member's annual maximum amount, the member's
compensation shall be determined in compliance with Treasury Regulations 1.415(c)-2.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 10910, § 1, 9-5-91; Ord. No. 11074, § 2, 7-22-93; Ord. No.
11110, § 3, 1-13-94; Ord. No. 11190, § 2, 10-27-94; Ord. No. 11235, § 1, 3-27-95; Code 1980,
§ 40-212; Ord. No. 11752, § 2, 1-26-99; Ord. No. 11944, § 2, 7-27-00; Ord. No. 12203, § 2, 3-27-
02; Ord. No. 12718, § 2, 7-28-05; Ord. No. 12941, § 2, 9-11-07; Ord. No. 12993, § 2, 5-8-08; Ord.
No. 13019, § 2, 7-24-08; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13202, § 2, 9-27-10; Ord. No.
13344, § 1, 9-27-12; Ord. No. 13551, § 2, 9-24-15; Ord. No. 13676, § 2, 4-27-17; Ord. No. 13874,
§ 2, 11-21-19)
Case Law reference- Pension provision authorizing deduction of workers' compensation
benefits from pension benefits held constitutional. Hoffkins v. City of Miami, 339 So. 2d 1145.
• Sec. 40-204. - Cost -of -living allowance.
(a) A COLA account shall be established for beneficiaries of the retirement system to be
financed as follows:
(1) The two -percent COLA contribution made by a member prior to January 9, 1994
shall be a picked up contribution and shall be credited to the COLA account.
(2) Any contributions to the retirement system which are credited to the COLA
account on behalf of any member in accordance with section 40-196(a), and which are
subsequently returned pursuant to any provision of this division which provides for the
return of accumulated contributions, shall be paid from the COLA account.
(3) All other matters regarding the COLA account shall be determined by the COLA
committee. The COLA committee shall be composed of the following: a) a representative
of IAFF, Local 587; b) a representative of FOP, Lodge No. 20; c) the city manager's
designee; d) the city's labor relations officer; and e) a representative of the board.
(b) Beginning with the 1994 COLA benefit, distributions shall be in addition to COLA benefits
granted through 1993. The COLA benefit granted through 1993 shall be frozen.
(c) COLA account established as of January 1, 1994:
(1) The COLA shall be funded by a percentage of annual excess investment return
from other than COLA account assets. The excess return will be determined as the
difference between the actual return on actuarial asset value, net of investment
expenses, and the lesser of: (1) a 7.75 percent time -weighted rate of return on the
actuarial value of assets; or (2) the current actuarial interest assumption, applied on a
time weighted basis to the actuarial value of assets. The excess earnings going into the
COLA account shall be used to fund a minimum annual payment of $2,500,000.00,
increasing by four percent compounded per year. To the extent necessary, the city will
fund the portion of the minimum annual payment not funded by annual excess earnings
no later than January 1 of each year.
(2) The first year's actual return shall be based on the time weighted rate of return on
the actuarial value of the assets from October 1, 1991, through September 30, 1992.
Thereafter, the actual rate of return will be based on the prior fiscal year to be used in the
succeeding fiscal year.
(3) The percentages of such excess return to be transferred to the COLA account
shall be determined as follows:
Excess Return
Percentage to be Transferred
First 2.5%
75
Next 2.5%
50
Next 2.5%
25
Remainder
0
(4) The transfers shall be made by the board as soon as practicable after the
beginning of each fiscal year, but not later than January 1, and shall be transferred only if
the retirement system remained in a net positive experience position, determined on a
cumulative basis from October 1, 1982. The determination of the net experience position
will be based on the difference between the actual unfunded actuarial liability and the
expected unfunded actuarial liability, adjusted for any changes in benefits or
assumptions, calculated under the individual entry age normal cost method.
(5) All retirement system pension assets, including the COLA account, are integrated
for investment purposes, with separate accounting maintained for administrative
purposes. Earnings of the COLA account will not be considered for determining excess
investment earnings.
(6) All assets in the COLA account at September 30, 1993, will be used for COLA
benefits, contribution refunds and allocated expenses.
(7) The actuarial interest and mortality assumptions used for the retirement system
will be used for COLA.
(8) COLA benefits will be determined on a defined benefit basis, based on the
minimum city scheduled contribution.
(9) The active member contributions into the COLA account will have an effective
termination date of January 1, 1994.
(10) In addition to current inactive and active employees, funding for the COLA
benefits of future employees hired during the remaining term of the amended final
judgment shall be defined and allocated through the remaining term of the amended final
judgment.
(11) The monthly COLA benefit distribution beginning January 1, 1994, is summarized
in table "A" of amended final judgment, Gates v. City of Miami, Circuit Court Case No. 77-
9491 CA 04. Such table is subject to modification by the COLA committee annually based
solely upon available assets and joint recommendations by the retirement system actuary
and the city's actuary, using generally accepted actuarial principles and prudent reserves,
and subject to the arbitration provisions of section 40-196(b)(5).
(12) The available assets shall be identified and distributed in a defined tabular format.
The COLA benefits table shall be based upon full years of creditable service at time of
retirement and full years of retirement, as of April 1, 1994, and each April 1 thereafter.
There shall be increasing dollar amounts for each additional full year of creditable service
and full year of retirement.
(13) Creditable service with the exception of accidental death, accident disability, and
service -incurred disability is defined as follows:
Date of retirement:
minus; date of membership
plus; service bought back and military credit purchased
plus; time before 1940
minus; time without pay
(14) Years of retirement for benefits distributed beginning January 1 of a given year
shall be projected forward to April 1 of that same year.
(15) The present value of assets available for COLA benefits as defined within Stanley,
Holcombe and Associates, Inc.'s September 21, 1993, actuarial impact statement is
$32,854,426.00.
(16) The present value of benefits defined within the approved allocation table is
$29,581,845.00.
(17) Eligibility for receipt of the COLA benefit shall be based upon a retiree reaching at
least four full years of retirement after 46 years of age. Years of retirement shall be
determined each year. For this paragraph only, in the case of DROP participants, date of
retirement shall mean date of separation from city employment.
(18) For accidental death, accidental disability, and service -incurred disability, years of
service shall be defined as 25 years or actual creditable service if greater. Receipt of the
COLA benefit shall be based on the retiree reaching at least four full years of retirement
and 50 years of age. In the case of accidental death, the beneficiary shall be entitled to
the COLA benefit on the April 1 following the 50th anniversary of the employee's birth and
the fourth anniversary of the employee's death.
(19) COLA benefits for vested rights retirees shall be based upon such retiree reaching
at least four full years of retirement after 50 years of age.
(20) The COLA benefit shall reflect the defined the retirement system benefit options.
Existing beneficiaries' benefits shall be based on the retirement system option, e.g., if the
original option was joint and 40 percent, then the beneficiary would receive 40 percent of
the benefit amount in the benefit table. In the case of a retiree's life annuity option,
benefits shall be 105 percent of the table amount.
(Ord. No. 10002, § 1, 6-13-85; Ord. No. 11110, § 4, 1-13-94; Code 1980, § 40-213; Ord. No.
11300, § 1, 9-14-95)
• Sec. 40-205. - Adjustments in benefits.
Members who belonged to the Miami city employees' retirement system, presently known as
the City of Miami firefighters' and police officers' retirement trust, shall continue to be subject to the
following adjustments in benefits:
(1) Election of increased benefit of class A membership.
a. Any member who belonged to the Miami city employees' retirement
system and who elected an increased rate of benefit under that system or who
was not a class A member under that system but who elected to become a class
A member, shall contribute to the City of Miami firefighters' and police officers'
retirement trust, by a single payment or by a series of payments, an amount
computed to be sufficient with the member's prospective regular contributions to
make accumulated contributions at his or her normal retirement age equal to the
amount such accumulated contributions would have been had the member been a
class A member or contributed at the increased rate during the entire period of his
or her membership in the Miami city employees' retirement system.
1. Any member may waive payment of the foregoing amount, in
which case, upon service, early service, rule of 64, rule of 68 or ordinary
disability retirement, the member's retirement allowance shall be reduced
by the actuarial equivalent of the amount by which accumulated
contributions fall short of the full amount which would have been the
member's accumulated contributions had he or she been a class A
member or contributed at the increased rate during his or her entire period
of membership in the Miami city employees' retirement system.
2. Any member who elects to pay the foregoing amount over an
extended period and who is granted disability retirement under the City of
Miami firefighters' and police officers' retirement trust, shall have his or her
disability retirement allowance reduced by the actuarial equivalent of the
then unpaid amounts.
b. If any member of the retirement system elected class A membership or an
increased rate of benefit under the Miami city employees' retirement system, and
his or her contributions pursuant to such election cause accumulated contributions
at the member's normal retirement age to exceed the amount such accumulated
contributions would have been had the member maintained a class A membership
or been contributing at an increased rate for the entire period of membership in
the Miami city employees' retirement system, 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 class A member or
had the increased rate been in effect during his or her entire membership in the
Miami city employees' retirement system.
(2) Executive benefit. Any members who, on or before May 23, 1985, had a vested
right to receive an additional retirement allowance equal to one percent of average final
compensation under the provisions of the Miami city employees' retirement system,
presently known as the City of Miami firefighters' and police officers' retirement trust,
which benefit was 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, "rule of 64" or rule of 68 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. 10002, § 1, 6-13-85; Ord. No. 10458, § 1, 7-14-88; Code 1980, § 40-214; Ord. No.
11752, § 2, 1-26-99; Ord. No. 13091, § 1, 9-24-09; Ord. No. 13676, § 2, 4-27-17)
Editor's note— Printed herein is former section 40-235(A)(3)(a) of the Code prior to the adoption
of Ordinance Number 10002 which section is referred to and apparently adopted by reference in
this section.
"(A)(3)(a) Upon such retirement, if he/she has three (3) or more years' service since last
becoming a member, he/she shall also receive a pension equal to one (1) percent of average final
compensation for each year of service or fraction thereof that such member served as the city
manager, assistant city manager, city clerk, assistant city clerk, executive secretary of the civil
service board, assistant executive secretary of the civil service board, executive secretary of the
planning and zoning board, assistant executive secretary of the planning board or its predecessor
the planning and zoning board, city physician, city attorney, assistant director of the department of
law or as director or assistant director of a department established by the charter of the city or by
ordinance as authorized by such charter; provided that he/she has served in any of such
capacities for a total combined period of not less than three (3) years; subject, however, for
purposes of this paragraph, to a maximum of ten (10) years' service. The benefits provided herein
shall not be diminished after retirement."
• Sec. 40-206. - Assignments 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.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-215; Ord. No. 11300, § 1, 9-14-95)
Case Law reference— Pension benefits held subject to garnishment for alimony, child support
and medical payments to a pensioner's divorced wife, notwithstanding ordinance provisions
exempting pension funds from garnishment. City of Miami v. Spurrier, 320 So. 2d 397.
• Sec. 40-207. - 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 retirement
system, shall be punished as provided in section 1-13 of this Code.
(Ord. No. 10002, § 1, 6-13-85; Code 1980, § 40-216)
• Sec. 40-208. - Errors.
Should any change or error in retirement system records be discovered or result in any
member or beneficiary receiving from the retirement system 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. 10002, § 1, 6-13-85; Code 1980, § 40-217)
• Sec. 40-209. - Bonding; fiduciary insurance.
(a) Prior to exercising custody or control of any funds or property of the retirement system,
every fiduciary of the retirement system and every person who handles funds or other property of
the retirement system shall be bonded. Such bond shall provide protection to the retirement
system against loss by reason of acts of fraud or dishonesty on the part of the bonded individual,
directly or through connivance with others.
(b) The board shall purchase insurance for the retirement system 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. 10002, § 1, 6-13-85; Code 1980, § 40-218)
• Sec. 40-210. - General conditions.
(a) It is intended that the City of Miami firefighters' and police officers' retirement trust be and
remain tax qualified pursuant to the Internal Revenue Code of 1986, as amended. The provisions
of this division shall be interpreted in accordance with such intent.
(b) The City of Miami firefighters' and police officers' retirement trust may sue and be sued as
an entity.
(c) The 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. 10002, § 1, 6-13-85; Code 1980, § 40-219; Ord. No. 13551, § 2, 9-24-15)
• Sec. 40-211. - Limitation on compensation.
(a) 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. "Eligible employee" is an individual who was a member before the first
plan year beginning on or after January 1, 1996.
(b) 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.
(c) 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).
(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 701/2, or April 1st of the year
following the calendar year which the member retires.
Notwithstanding any other provision of this plan to the contrary, a form of retirement income
payable from this plan, shall satisfy the following conditions:
(1) If the retirement income is payable before the member's death:
a. It shall either be distributed or commence to the member not later than
April 1 of the calendar year following the later of the calendar year in which the
member attains age 701/2, or the calendar year in which member retires;
b. The distribution shall commence no later than the calendar year defined
above; and (a) shall be paid over the life of the member or over the lifetimes of the
member and spouse, issue or dependent, or (b) shall be paid over the period
extending not beyond the life expectancy of the member and spouse, issue or
dependent.
Where a form of retirement income payment has commenced in
accordance with the preceding paragraphs and the member dies before
his/her entire interest in the plan has been distributed, the remaining
portion of such interest in the plan shall be distributed no less rapidly than
under the form of distribution in effect at the time of the member's death.
(2 ) If the member's death occurs before the distribution of his/her interest in the plan
has commenced, member's entire interest in the plan shall be distributed within five years of
member's death, unless it is to be distributed in accordance with the following rules:
a. The member's remaining interest in the plan is payable to his/her spouse,
issue or dependent; and
b. The remaining interest is to be distributed over the life of the spouse, issue
or dependent or over a period not extending beyond the life expectancy of the
spouse, issue or dependent; and
c. Such distribution begins within one year of the member's death unless the
member's spouse is the sole designated beneficiary, in which case, the
distribution need not begin before the date on which the member would have
attained age 701 and if the member's spouse dies before the distribution to the
spouse begins, this section shall be applied as if the spouse were the member.
(e) Notwithstanding any provision of this plan to the contrary, effective December 12, 1994,
contributions, benefits and service credit with respect to qualified military service will be provided
in accordance with Section 414(u) of the Internal Revenue Code of 1986, as amended, USERRA
or F.S. chs. 175 and 185, as applicable.
(f) Differential wage payments. For years beginning after December 31, 2008 (i) an
individual receiving a differential wage payment, as defined in Section 3401(h)(2) of the Internal
Revenue Code, shall be treated as an employee of the employer making the payment, (ii) the
differential wage payment shall be treated as compensation, and (iii) the plan shall not be treated
as failing to meet the requirements of any provision described in Section 414(u)(1)(C) of the
Internal Revenue Code by reason of any contribution or benefit which is based on the differential
wage payment.
(g) No pension provided hereunder shall be assignable or subject part of the corpus or
income of the fund be used for, or diverted to, purposes other than for the exclusive benefit of
members and their beneficiaries and until those liabilities are satisfied, all city contributions will
remain in the fund for the benefit of the members or beneficiaries in the event the plan is
terminated or city contributions cease.
(h) Upon the termination of the plan or on the complete discontinuance of contributions under
the plan, each member shall have nonforfeitable, 100 percent vested rights to benefit accrued to
date of the termination or discontinuance to the extent funded at that time.
(i) The city shall solely for the purpose of compliance with Sections 125, 457, and 414(h) of
the Internal Revenue Code, pick up the members' contributions. The member contributions so
picked up shall be designated as employer contributions in determining tax treatment under the
Internal Revenue Code. No member shall have the option of choosing to receive the contributed
amounts directly instead of having them paid by the city to the plan.
(Ord. No. 11190, § 3, 10-27-94; Code 1980, § 40-220; Ord. No. 13551, § 2, 9-24-15; Ord. No.
13676, § 2, 4-27-17)
Editor's note— As set out in Ord. No. 11190, § 7, adopted Oct. 27, 1994, § 40-211 shall become
effective on September 30, 1996.
• Sec. 40-212. - Direct transfers of eligible rollover distributions.
(a) General. Notwithstanding any provision of the retirement system to the contrary that
would otherwise limit a distributee's election under this section, a distributee may elect, at the
time and in the manner prescribed by the board, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the distributee in a direct
rollover.
(b) The plan may allow a public safety officer to elect a tax free distribution of up to
$3,000.00 annually directly to a retiree medical plan or long term care insurance on a pre-tax
basis, so long as the public safety officer separates from service either at the plan's normal
retirement age or due to his or her disability. Insurance premiums may be paid for the public
safety officer, his/her spouse or his/her dependents, but once he/she is deceased, the benefit
ceases and may not be used by his/her spouse or beneficiaries to pay for their insurance
premiums. Insurance premium payments may only be made directly to the insurance company.
"Public Safety officers" include law enforcement officers, firefighters, chaplains, rescue crew
members or ambulance crew members.
(c) Definitions.
Direct rollover means a payment by the plan to the eligible retirement plan specified by the
distributee. Effective as of January 1, 2010, a non -spouse beneficiary may make a direct rollover
only to an "inherited" individual retirement account as described in Section 408(b) of the Internal
Revenue Code. If a non -spouse beneficiary receives a distribution from the Plan, the distribution is
not eligible for a 60-day (non -direct) rollover.
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. Effective as
of January 1, 2010, as an employee's or former employee's non -spouse beneficiary is a distributee
with regard to the interest of the employee or former employee.
Eligible retirement plan means an individual retirement account described in section 408(a) of
the Code, an individual retirement annuity described in section 408(b) of the Code, an annuity plan
described in section 403(a) of the Code, an eligible deferred compensation plan described in
section 457(b) of the Code which is maintained by an eligible employer described in section
457(e)(1)(A) of the Code and which agrees to separately account for amounts transferred into
such plan from this plan, an annuity contract described in section 403(b) of the Code, a qualified
trust described in section 401(a) of the Code, that accepts the distributee's eligible rollover
distribution, or any other retirement plan determined to be an eligible retirement plan under the
Code as it may be amended from time to time. This definition shall apply in the case of an eligible
rollover distribution to the surviving spouse.
Eligible rollover distribution means 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: any
distribution that is one of a series of substantially equal periodic payments (not less 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
includible in gross income. Any portion of any distribution which would be includible in gross
income will be an eligible rollover distribution if the distribution is made to an individual retirement
account described in section 408(a) of the Internal Revenue Code, to an individual retirement
annuity described in section 408(b) of the Internal Revenue Code or to a qualified defined
contribution plan described in sections 401(a) or 403(a) of the Internal Revenue Code that agrees
to separately account for amounts so transferred, including separately accounting for the portion of
such distribution which is includible in gross income and the portion of such distribution which is
not so includible.
(d) Plan transfers into the fund. The retirement system will accept a direct transfer or rollover
of an eligible rollover distribution or a member contribution of an eligible rollover distribution from
an eligible retirement plan which is maintained by the city, solely for the purpose of purchasing
creditable service as provided in subsection 40-202(6) herein.
(Ord. No. 12941, § 2, 9-11-07; Ord. No. 13551, § 2, 9-24-15; Ord. No. 13676, § 2, 4-27-17)
• Secs. 40-213-40-240. - Reserved.