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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM Second Reading File ID: #11334 Date: 01 /11 /2022 Commission Meeting Date: 05/12/2022 Type: Ordinance Subject: Amend Code — Chapter 40 Requesting Department: City Manager's Office Sponsored By: District Impacted: All PURPOSE OF ITEM: AN ORDINANCE OF THE MIAMI CITY COMMISSION, PURSUANT TO A SETTLEMENT AUTHORIZED BY RESOLUTION: R-18-0440 AUTHORIZING THE CITY MANAGER TO ENTER INTO A SETTLEMENT AGREEMENT WITH INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, AFL-CIO, LOCAL 587 ("IAFF") TO RESOLVE THE UNFAIR LABOR PRACTICE PETITION FILED BY IAFF IN THE CASE STYLED MIAMI ASSOCIATION OF FIREFIGHTERS LOCAL 587, IAFF V. CITY OF MIAMI, CASE NO.: BP-2018-001 (CR-2018-001 AND CA-2010-124) AND RESOLUTION: R-18-0489 AUTHORIZING THE CITY MANAGER TO ENTER INTO A SETTLEMENT AGREEMENT WITH THE WALTER E. HEADLEY, JR., MIAMI LODGE #20, FRATERNAL ORDER OF POLICE, INC. ("FOP") TO RESOLVE THE UNFAIR LABOR PRACTICE PETITION FILED BY FOP, LODGE #20, CASE NO.: CA-2010-119 AND BP-2017-013 (RELATES TO CR-2017-001), 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 FIRE AND POLICE EMPLOYEES RETIREMENT TRUST," MORE PARTICULARLY BY AMENDING SECTIONS 40-191, 40-203 AND 40-210, TITLED "DEFINITIONS", "BENEFITS", "GENERAL CONDITIONS", TO AMEND THE DEFINITION OF COMPENSATION PROVIDING FOR THE RULE OF "64" OR "68", AN INCREASE IN BENEFITS; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING AN IMMEDIATE EFFECTIVE DATE. BACKGROUND INFORMATION: Budget Impact Analysis Item is NOT funded by Bonds Item is NOT Related to Revenue Total Fiscal Impact: N/A City Manager's Office Arthur Noriega V Reviewed B City Manager Review Completed 01/18/2022 10:22 AM City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 Office of Management and Budget Office of Management and Budget Legislative Division Office of the City Attorney Office of the City Attorney City Commission Office of Management and Budget Office of Management and Budget Legislative Division Office of the City Attorney Office of the City Attorney City Commission City Commission Office of the Mayor Office of the City Clerk Office of the City Clerk Aniska Elliott Shaidah Dorvil Shaidah Dorvil Shaidah Dorvil Barnaby L. Min Maricarmen Lopez Aniska Elliott Marie Gouin Valentin J Alvarez Barnaby L. Min Victoria Mendez Nicole Ewan Maricarmen Lopez Mayor's Office City Clerk's Office City Clerk's Office Budget Analyst Review Completed 03/24/2022 3:48 PM Budget Analyst Review Skipped 01/18/2022 10:34 AM Legislative Division Review Skipped 01/18/2022 10:34 AM Deputy City Attorney Review Skipped 01/18/2022 10:35 AM Approved Form and Correctness Completed 03/28/2022 10:42 AM Meeting Completed 01/27/2022 9:00 AM Budget Analyst Review Completed 03/24/2022 3:50 PM Budget Review Completed 03/25/2022 4:13 PM Legislative Division Review Completed 03/28/2022 10:32 AM Deputy Attorney Review Completed 03/28/2022 10:42 AM Approved Form and Correctness Completed 03/28/2022 5:25 PM Meeting Completed 04/14/2022 9:00 AM Meeting Completed 05/12/2022 9:00 AM Unsigned by the Mayor Completed 05/19/2022 1:28 PM Signed and Attested by the City Clerk Completed 05/19/2022 1:39 PM Rendered Completed 05/19/2022 1:39 PM City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 City of Miami Legislation Ordinance Enactment Number:14066 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 11334 Final Action Date: 5/12/2022 AN ORDINANCE OF THE MIAMI CITY COMMISSION PURSUANT RESOLUTION NO. R-18-0440 ADOPTED ON OCTOBER 11, 2018 AUTHORIZING THE CITY MANAGER TO ENTER INTO A SETTLEMENT AGREEMENT WITH THE INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, AFL-CIO, LOCAL 587 ("IAFF") TO RESOLVE THE UNFAIR LABOR PRACTICE PETITION FILED BY IAFF IN THE CASE STYLED MIAMI ASSOCIATION OF FIREFIGHTERS LOCAL 587, IAFF V. CITY OF MIAMI, CASE NO.: BP-2018-001 (CR-2018-001 AND CA-2010-124) AND RESOLUTION NO. R-18-0489 ADOPTED ON OCTOBER 25, 2018 AUTHORIZING THE CITY MANAGER TO ENTER INTO A SETTLEMENT AGREEMENT WITH THE WALTER E. HEADLEY, JR., MIAMI LODGE #20, FRATERNAL ORDER OF POLICE, INC. ("FOP") TO RESOLVE THE UNFAIR LABOR PRACTICE PETITION FILED BY FOP, LODGE #20, CASE NO.: CA-2010-119 AND BP-2017-013 (CR-2017-001) 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 FIRE AND POLICE EMPLOYEES RETIREMENT TRUST;" MORE PARTICULARLY BY AMENDING SECTIONS 40-191, 40-203, AND 40-210, TITLED "DEFINITIONS," "BENEFITS," AND "GENERAL CONDITIONS," TO AMEND THE DEFINITION OF COMPENSATION PROVIDING FOR THE RULE OF "64" OR "68" AND AN INCREASE IN BENEFITS; CONTAINING A SEVERABILITY CLAUSE; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE. WHEREAS, pursuant to Resolution No. R-18-0440 adopted on October 11, 2018 and Resolution No. R-18-0489 adopted on October 25, 2018, the City Commission approved settlement agreements with both the International Association of Fire Fighters, AFL-CIO, Local 587 ("IAFF") and Walter E. Headley, Jr., Miami Lodge #20, Fraternal Order of Police, Inc. ("FOP") to resolve litigation related to the City's 2010 declaration of financial urgency; and WHEREAS, as a result of those settlements and in fulfillment of the City's obligations therein, certain changes must be made to the pension ordinance; and WHEREAS, it is necessary to amend Chapter 40/Article IV/Division 2 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: 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. City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 Section 2. Chapter 40/Article IV/Division 2 of the City Code is amended in the following particulars:' "CHAPTER 40 PERSONNEL ARTICLE IV. PENSION AND RETIREMENT PLAN DIVISION 2. CITY OF MIAMI FIREFIGHTERS' AND POLICE OFFICERS' RETIREMENT PLAN Section 40-191. Definitions. Averagefinalcompensationshall mean, for members who retire or termi nate 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 (1) year or the highest one (1) year of membership service, whichever is greater. Effective September 30, 2010, for members who highest five years of service, to be phased in over the next four years as follows: for mem ers n retir ` after Oct er1,2`010 and on or h ro September 2`01Tr-the "h October 1, 2011 and on or before September 30, 2012, the average of the highest three before September 30, 2013, the average of the highest four years of membership service; rJ form h s who r on or of On 1 2 1 Q av ge of higho vo a��ro,--nTerx�e�-��T�t i���rte��tebe�Tz��t#e�Pe�„�at�i� years of membership service. Provided, in no event shall the average final compensation of any mcmbcr who is cmploycd as a policc officer or firefighter on September 30, 2010 and retires on or after October 1, 2010, be le�� than the highcst y ar of mcmbcrchip scrvicc prior to September 30, 2010. 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. 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 File ID: 11334 (Revision:) Printed On: 6/12/2025 (2) For police officer members, normal retirement age for members employed on September 26, 2010 who as of that date had attained ten (10) or more years of creditable service shall be rule of 64 retirement or age fifty (50) with ten (10) years of Creditable Service including Members who retired or entered DROP on or after September 26, 2010. For firefighter members, normal retirement age for members employed on September 26, 2010 who as of that date had attained ten (10) or more years of creditable service shall be rule of 68 retirement or age fifty (50) with ten (10) years of Creditable Service including Members who retired or entered DROP on or after September 26, 2010. Members may continue in service after attaining normal retirement age and participate in all aspects of the retirement system. {3) The normal retirement age for members employed on September 26, 2010, who as of that date hart not attained ten�+(10) or more years src ita lc-ocryice, aril members hired nn nr a er Septei� ei- 26, 2`01 n shell be ri ile of 7n retirement as defined in subsection (b)('l) with a minimum age of fifty (50) and ten (10) or more years of creditable service. employed and not participating in thc DROP on September 30, 2010, may elect to receive his/her accrued benefit as of that date, determined in accordance with the provii T the system in effect on September 29 201 n and payable on the date and �vcr Iry ccnTrrrcn cv c-vn�cP ccn�uciz�z� , urc-vrrcrr��racc-cmcr 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 thc normal retirement age provided in subsection (3), shall be eligible to 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 cmploycd and not participating in thc DROP on September 30, 2010 shall be eligible to elect thc DROP for bcncfits accrucd prior to that date, in accordance with the provisions of the system in effect on September 29, 2010. (53) 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. City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 (44) Effective October 1, 1998, a member exercising service retirement on or after October 1, 1998 and be re October1,2010- and members w-h-e-attained ten (nor 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 exer se ; etirement on or after thaf-date, and effectiv ctober 2-0 rnembers 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 cer,,ice for first 15 years of su reditable ser ,ivice,and three and ono_haIf 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 attaincd tcn (10) or morc years of Creditable Service, other than members identified the percentage provided in paragraph (5) for Creditable Service prior to September mi ltiplied b y years of Creditable Service for Creditable Service on or after October 1 2010, which shall be paid yearly in monthly installments. (8.5) 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; or 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 for police officer members and 68 for fire fighter members, 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 /15 days from May 28, 1995 90 days subsequent to the execution and filing thereof, the date the member desires to be retired. (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. City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 (3) 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). Upon rule of 64 retirement for police officer members on or after October 1, 1998, or upon the Rule of 68 retirement for fire fighter members on or after October 1, 2009{1998), 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). {'I) 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) creditable-cer Ito tober 20 d three percent of the member's average final compensation multiplied by years of creditable scrvicc for crcditablc scrvicc on and aftcr 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 retiremen4 ac provided in ci bsection (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 (10) 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 $120,000.00 or 100% of final average compensation. In no event shall the benefits of members hired before September 26, 2010 be le-s than the benefits earned and they existed prior to September 26, 2010. Members who retired prior to September 26, 2010 shall have no limitation on benefits accrued. City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 (h) Ordinary death 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. l-f-I n 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 cubscction (m), the member will be presumed to have elected Option 6(c) providing for payment of /10 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.In 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 cu eveef-ems after tober 2010, and the member has not electe 1 an optional allowance in accordance with subsection (m\ the rnember will be presumed to have elected Option 6(c) providing for payment of /10 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 1.401=1 (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. (i) 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 City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 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 (3) 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. 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). (m) Optional allowances. City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 (1) Effective October 1, 2010, for members who retire}or terminate employment with ten or �a-r ec ofcreditable-service vn crafter thttl date, the normal form of benefit 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 cuch ten y r 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; City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 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 beforc 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 (10) 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 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. (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 City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 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. (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. Effective upon the ratification of the Memorandum of Understanding of July 11, 2008 the maximum participation in the Forward DROP for firefighters shall be 5/1 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 currentl„ in Forward DROP, shall be 8/1 full months. No payment shall be made to or for the benefit of a DROP participant beyond these periods. (54)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. (65)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. (76) 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. (8.7) 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. (g8) 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. City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 (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. (6) Disability. A DROP participant shall not be entitled to receive an ordinary or service incurred disability retirement. (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 Memorandum of Understanding of July 11, 2008 amending Article 43 of the 2007- 2010 IAFF tabor collective bargaining agreement effective October 1, 2001 through September 30, 200/1 may extend their existing DROP agreements to a maximum of 54 months. Any employee member 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. (14) BACKDROP option. A backdrop benefit option shall be was 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 attaincd normal rctircmcnt cligibility 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 cligiblc for the forward_DROP. Anyonc cligiblc for the forward DROP as of January 1, 2013, remains eligible for the forward DROP as it prcccntly cxists and anyonc cligiblc 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 (tho "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 City of Miami File ID: 11334 (Revision:) Printed On: 6/12/2025 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. 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. *„ Section 3. 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 4. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: Barnaby I_. Min, Deputy City Attorney 3/28/2022 ez, jey l 3/28/2022 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 File ID: 11334 (Revision:) Printed On: 6/12/2025