HomeMy WebLinkAboutO-14066City of Miami
Ordinance 14066
Legislation
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 Page 1 of 13 File ID: 11334 (Revision:) Printed On: 6/12/2025
File ID: 11334 Enactment Number: 14066
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
h s who r ire o aT Oc 1 10 and on or h ro C h 30 11
r�erx�e�- et' te��tebe��'z-9 efo,-�oepfe�e��Z'29�t�
avcragc of the highcst two y rs of membership service; for members who retire on or after
Oc ober 1 201 1 and on or h ro Sepfe er 3� 2012 t ayer�L of highest tree before September 30, 2013, the average of the highest four years of membership service;
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
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
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.
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File ID: 11334 Enactment Number: 14066
days subsequent to the execution and filing thereof, the date the member desires to
be retired.
(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
ed on or a er Septe er 26, 201 n shall be ri ile of 7n retirement as defined in
cubccction (b)('l) with a minimum age of fifty (50) and ten (10) or more years of
creditable service.
{�l }
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
provi�T��the system in effect on September 29 201 n and payable on the date and
�vcr c�rc ccn-rirrcn cc c-vnvc� ccn-ruc�z�z� , urc-vrrcrn�rcrcc�rra
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 thc 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.
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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.
(64) Effective October 1, 1998, a member exercising service retirement on or after
October 1, 1998 and b re October1,2010�, and -member 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 -any; etirement on or after th-af-date, and effectiv cteber 2-0 r
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
serv�r-first 1 ears such creditab1e-ser„ice, and three and one_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 ycars of Creditable Service, other than members identified
the percentage provided in paragraph (5) for Creditable Service prior to September
26, 2010, and three percent (3%) 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.
(45) 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 r, le 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
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File ID: 11334 Enactment Number: 14066
(3)
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).
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).
Effective September 30, 2010, upon rule of 70 retirement on or after October 1, 2010,
provided in subsection (a)(5) for credTtable ccervic pc-pri^or-to October , 2201 n� 0, and t ree
percent of the member's average final compensation multiplied by years of creditable
ccrvicc 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
(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
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File ID: 11334 Enactment Number: 14066
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 less than the benefits earned and
ac r- ied as of September 26 201 n as r-letermined in accordance with the benefits as
they existed prior to September 26, 2010. Members who retired prior to September
26, 2010 shall have no limitation on benefits accrued.
(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-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 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
1 201 n and themember has not elected an op nal allowannein accordance n iith
-iz �-v �-a-rcr �-ra -crn--vim riui-artvvcarrc -ra rnc�-cc�v-r
subsection (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 such event occurs on or after Octoberz 1 n ar,d 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 /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
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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
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
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(3)
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.
(1) Effective October 1, 2010, for members who retire or terminate employment with ten
or wears -of creditable -service on or after to A Oho 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
such 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
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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 bcforc
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.
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(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 membcr 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
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 54 full
months. Effective upon the ratification of the Memorandum of Understanding of May 8,
2008 amending Articic 39 of the 2007 2010 collcctivc bargaining agrccmcnt 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.
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(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.
(6) 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.
(87) 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.
(98) 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.
(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 labor collective bargaining agreement cffcctivc October 1, 2001 through
September 30, 2004 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 officcr& who
City of Miami Page 11 of 13 File ID: 11334 (Revision:) Printed on: 6/12/2025
File ID: 11334 Enactment Number: 14066
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 eligibility as of January 1, 2013 or were not vested by
October 1 201r1 and all ploye� ired on or aftei Iani r2013 will bo gi e
ptiT Tri TV � G�GT �TTPr-GTr , i ��
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.
City of Miami Page 12 of 13 File ID: 11334 (Revision:) Printed on: 6/12/2025
File ID: 11334 Enactment Number: 14066
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.
*„
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
ndez, ity Attor ey 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 Page 13 of 13 File ID: 11334 (Revision:) Printed on: 6/12/2025