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HomeMy WebLinkAboutO-14053City of Miami Ordinance 14053 Legislation City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 10838 Final Action Date: 3/10/2022 AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 40/ARTICLE IV/DIVISION 3 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), TITLED "PERSONNEL/PENSION AND RETIREMENT PLAN/CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST;" MORE PARTICULARLY BY AMENDING SECTIONS 40-249, 40-254, AND 40-255, TITLED "MEMBERSHIP; MEMBERS ABSENT FROM SERVICE," "PAYBACKS FOR MEMBERSHIP CREDIT," AND "BENEFITS," RESPECTIVELY, TO AMEND THE SERVICE RETIREMENT BENEFITS, PROVIDE FOR PURCHASE OF CREDIT FOR CERTAIN NONMEMBERSHIP SERVICE, AND AMEND THE DEFINITIONS OF AVERAGE FINAL COMPENSATION AND NORMAL RETIREMENT AGE; FURTHER AMENDING CHAPTER 40/ARTICLE IV/DIVISION 6 OF THE CITY CODE, TITLED "PERSONNEL/PENSION AND RETIREMENT PLAN/TRUST FUND FOR APPOINTED OFFICERS AND EMPLOYEES IN EXECUTIVE SERVICE;" MORE PARTICULARLY BY AMENDING SECTION 40-351 OF THE CITY CODE, TITLED "TRUST FUND FOR APPOINTED OFFICERS AND EMPLOYEES IN EXECUTIVE SERVICE," TO ALLOW CERTAIN EXECUTIVE OFFICERS AND EMPLOYEES TO ELECT TO PARTICIPATE IN EITHER THE TRUST FUND FOR APPOINTED OFFICERS AND EMPLOYEES IN EXECUTIVE SERVICE OR THE CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST AND PROVIDING FOR THE PURCHASE OF PRIOR SERVICE; CONTAINING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. WHEREAS, pursuant to Resolution No. R-21-0395 adopted on September 23, 2021, the City Commission approved a Collective Bargaining Agreement between the City of Miami ("City") and the employee organization known as the Miami General Employees American Federation of State, County, and Municipal Employees Local 1907, AFL-CIO for the period of October 1, 2020 through September 30, 2023, which modified certain benefits of the collective bargaining unit; and WHEREAS, the City's Administration recommends certain other retirement plan changes; and WHEREAS, it is necessary to amend Chapter 40/Article IV/Divisions 3 and 6 of the Code of the City of Miami, Florida, as amended ("City Code"), to reflect said changes; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA: City of Miami Page 1 of 6 File ID: 10838 (Revision: A) Printed On: 6/9/2025 File ID: 10838 Enactment Number: 14053 Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated as if fully set forth in this Section. Section 2. Chapter 40/Article IV/Division 3 of the City Code in the following particulars:1 "CHAPTER 40 PERSONNEL ARTICLE IV. PENSION AND RETIREMENT PLAN DIVISION 3. CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST * Sec. 40-249. Membership; members absent from service. (b) Participation in the Plan is a mandatory condition for all employees except for those employees who are precluded from participation who have the ability to opt out of participation in the Plan pursuant to section 40-351 and employees working in the office of an elected official. Employees working in the office of an elected official have the ability to opt out of participation in the Plan and the city's trust fund as established by section 40- 351. However, if the employee ceases to work in the office of an elected official but continues employment elsewhere within the city, that employee shall enroll in the Plan and start contributing to the plan if not otherwise precluded. Acceptance of employment shall constitute authorization for the city to pick up contributions from compensation of employees. Sec. 40-254. Paybacks for membership credit. Members shall have the right to receive membership credit in the Plan in accordance with the provisions of this section. Each payback provided for in this section shall be independent of any other payback and may, where appropriate, result in cumulative credits. If a member revokes the payback election, is terminated, resigns or is otherwise separated from the city before the payback is completed, the member shall only receive that portion of credited service purchased as of the date of separation. (2) Credit for continuous service as a nonmember. 1 Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and unchanged material. City of Miami Page 2 of 6 File ID: 10838 (Revision: A) Printed on: 6/9/2025 File ID: 10838 Enactment Number: 14053 a. Any person who is now a member of the Plan who had prior service with the city as a probationary, full-time temporary, er-permanent employee, classifieds unclassified, or executive but who at the time of that service was not a member of the Plan, may purchase up to four years of that prior nonmembership service. Contributions will be based on the member's current rate of earnable compensation and the current contribution rate. Interest shall be charged at a uniform rate as determined by the board. The Member may purchase credit for any years in excess of four (4) years of prior non -membership service by paying the full actuarial cost for such service. {8) Purchase of credit for service as city attorney, chief deputy city attorney, deputy city a-ttorne`TTCy vrho becomes.-ta mem berort1:1-icPIan after Octalaer 1 , 201 8-Purculant to section i10 351 and any other member who has prior service as an appointed officer or employee while not a member of this Plan magi pi irchace up to four years of prior non_ of four years of prior non membership service by paying the full actuarial -Gast for such service. Sec. 40-255. Benefits. (a) Service retirement. (n)Limitation on benefits. Effective September 30, 2010, for members who retire or separate from employment on or after October 1, 2010, member retirement allowances shall not exceed the lesser of 100 percent of the member's average final compensation or an annual retirement allowance of $100,000.00 as of retirement or DROP entry based on the normal form of benefit in effect on the date of retirement; provided, in no event shall the benefit limitation provided in this subsection be less than the lesser of 100 percent of the member's average final compensation or the member's accrued benefit on September 30, 2010, based on the normal form of benefit in effect on that date. Effective September 30, 2012, member retirement allowances shall not exceed an annual retirement allowance of $80,000.00 as of retirement or DROP entry based on the normal form of benefit in effect on the date of retirement; provided, any employee who has an accrued benefit in excess of $80,000.00 annually on the effective date shall retain that benefit, but shall not accrue any additional benefits after that date. Except for Members of AFSCME Council 79, Local 871, effective on or after October 1, 2021, for Members retiring or entering DROP from that date on, Member retirement allowance shall not exceed the lesser of 100% of the Member's average final compensation or an annual allowance of $120,000.00 as of retirement of DROP entry based on the normal form of benefit in effect on the date of retirement for Members eligible to retire as of October 1, 2012. Except for Members of AFSCME Council 79, Local 871, effective October 1, 2022, for Members retiring or entering DROP from that date on, Member retirement allowance shall not exceed the lesser of 100% of the Member's average final compensation or $100,000.00 as of retirement or DROP entry based on the normal form of benefit in effect on the date of retirement for Members who were not eligible to retire as of October 1, 2012. However, any Member who has an City of Miami Page 3 of 6 File ID: 10838 (Revision: A) Printed on: 6/9/2025 File ID: 10838 Enactment Number: 14053 accrued benefit in excess of these annual allowance caps shall retain that benefit but not accrue any additional benefits after that date. *„ Section 3. Chapter 40, Article IV, Division 6 of the City Code in the following particulars:1 "CHAPTER 40 PERSONNEL * ARTICLE IV. PENSION AND RETIREMENT PLAN DIVISION 6. TRUST FUND FOR APPOINTED OFFICERS AND EMPLOYEES IN EXECUTIVE SERVICE Sec. 40-351. Trust fund for appointed officers and employees in executive service. Those persons hired in or promoted to, the following positions after enactment of this ordinance, shall not be eligible for the Plan: city manager, city attorney, city clerk, chief deputy administration as employed in the executive service of the city. Notwithstanding the preceding sentence, e (a) Effective October 1, 2018, the following positions shall be eligible for participation in the Plan or the trust fund: city attorney, chief deputy city attorney, deputy city attorney, senior assistant city attorney, assistant city attorney, and persons employed in these positions on or after June 1, 2019. The city attorney, chief deputy city attorney, deputy city attorney, senior assistant city attorney, assistant city attorney, and persons employed in these positions on or after June 1, 2019 may elect to participate in either plan. If such person elects to participate in the Plan, he or she may elect to purchase creditable service under the Plan for credit for prior non -membership service as an appointed officer or employee in accordance with subsections 40-254(2) and /10 25/1(8). An election to participate in the Plan shall be irrevocable. (b) Effective October 1, 2021, the following positions shall be eligible for participation in the Plan or the trust fund: City Manager, Deputy City Manager, Assistant City Managers, City Clerk, Assistant City Clerk, Department Directors, Assistant Directors and those employees identified by the City's Administration as employed in the Executive Service of the City on or after October 1, 2021. Those employees identified in this Subsection and employed in these positions on or after October 1, 2021 may elect to participate in either plan. If such person elects to participate in the Plan, he or she may elect to purchase creditable service under the Plan for credit for prior non -membership service as an appointed officer, executive officer, or employee in accordance with Section 40- 254(2) of the City Code. An election to participate in the Plan shall be irrevocable. Individuals selecting the trust plan shall participate in a trust plan as follows: (1) As established and approved by the commission of a written trust agreement wherein provision is made for the city to contribute moneys on behalf of employees to a public City of Miami Page 4 of 6 File ID: 10838 (Revision: A) Printed on: 6/9/2025 File ID: 10838 Enactment Number: 14053 trust fund designated by the executive employee and approved by the commission, such contribution to be made in lieu of the city's contribution on behalf of employees in the Plan. a. The contribution to be made by the city under the terms of the above agreement shall be calculated at the rate of ten percent of the executive employee's annual compensation. b. A contribution to the designated public trust fund must be made by the executive employee and such contribution by the employee shall be picked up by the city at a rate of not less than five percent of the executive employee's annual compensation. c. An executive employee may, if so provided in the trust agreement, take actual or constructive receipt of his or her contribution, and 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. d. Additionally, the city manager may elect to participate in a public trust fund he or she designates and approved by the city commission. Contributions made to the designated public trust fund by the city shall be in accordance with the provisions of a resolution designating benefits for the city manager and approved by the city commission. Contributions, if any, by the city manager shall be picked up by the city as provided by the provisions of a resolution approved by the city commission. The city manager may, if so provided in the trust agreement, take actual or constructive receipt of their contributions, and those contributions made by the city on their 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. e. The city attorney, assistant city managers, and assistants to the city manager may elect to participate in a public trust fund designated by the employee and approved by the city commission. Contributions shall be made to the designated public trust fund by the city at a rate of 20 percent of the city attorney's annual base salary, and ten percent of the annual base salary for each of the assistant city managers and assistants to the city manager. The city attorney, assistant city managers, and assistants to the city manager may, if so provided in the trust agreement, take actual or constructive receipt of their contributions, and those contributions made by the city on their behalf prior to reaching age 55 or 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) Employees in the foregoing positions as defined in this subsection e., above, may not participate in the Plan who have elected to participate in a public trust fund in accordance with Subsection (1) above may not participate in the Plan; so long as, and during which, such employees hold thoco a positions eligible to participate in the Trust Fund. (3) Notwithstanding the exclusions in section 40-351, those employees who are members of the Plan prior to the enactment of this ordinance shall continue to be eligible to participate in the Plan regardless of position title of those employees. *„ City of Miami Page 5 of 6 File ID: 10838 (Revision: A) Printed on: 6/9/2025 File ID: 10838 Enactment Number: 14053 Section 4. If any section, part of a section, paragraph, clause, phrase, or word of this Ordinance is declared invalid, the remaining provisions of this Ordinance shall not be affected. Section 5. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ndez, ity Attor ey 2/1/2022 2 This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten (10) days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become effective immediately upon override of the veto by the City Commission or upon the effective date stated herein, whichever is later. City of Miami Page 6 of 6 File ID: 10838 (Revision: A) Printed on: 6/9/2025