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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM Second Reading File ID: #13392 Date: 01/26/2023 Commission Meeting Date: 04/13/2023 Type: Ordinance Subject: Amend Code - Chapter 40 - 7 year DROP Requesting Department: City Manager's Office Sponsored By: District Impacted: All PURPOSE OF ITEM: AN ORDINANCE OF THE MIAMI CITY COMMISSION, PURSUANT RESOLUTION NO. R-22-0340 ADOPTED ON SEPTEMBER 13, 2022 AND RESOLUTION NO. R-22- 0423 ADOPTING ON OCTOBER 27, 2022, 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 EMPLOYEE'S AND SANITATION EMPLOYEES' RETIREMENT TRUST," MORE PARTICULARLY BY AMENDING SECTIONS 40-255, TITLED "BENEFITS," INCREASING THE DROP PARTICIPATION TO (84) MONTHS; CONTAINING A SEVERABILITY CLAUSE; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE. BACKGROUND INFORMATION: Pursuant to Resolution No. R-22-0340, adopted on September 13, 2022, and Resolution No. R-22-0423, adopted on October 27, 2022, the City of Miami ("City") ratified an amendment to the Collective Bargaining Agreement between the City and the Miami General Employees American Federation of State, County, and Municipal Employees Local 1907, AFL-CIO in effect for the period of October 1, 2020 through September 30,2023; and ratified an amendment to the Collective Bargaining Agreement between the City and the Miami General Employees American Federation of State, County, and Municipal Employees Local 871, AFL-CIO in effect for the period of October 1, 2020 through September 30, 2023. As a result of the amendment to the Collective Bargaining Agreement, certain changes must be made to the pension ordinance. This proposed amendment to Chapter 40/Article IV/Division 3 of the Code of the City of Miami, Florida, as amended ("City Code") amends Section 40-255, titled "Benefits," by increasing the DROP participation to 84 months from 48 months for all members of the Plan. Budget Impact Analysis City of Miami File ID: 13392 (Revision: A) Printed On: 6/30/2025 Item is NOT Related to Revenue Item is NOT funded by Bonds City Commission City Manager's Office Office of Management and Budget Office of Management and Budget Legislative Division Office of the City Attorney City Commission City Commission Office of the Mayor Office of the City Clerk Office of the City Clerk Legislative Division Office of the City Attorney Nicole Ewan Arthur Noriega V Miriam Arcia Marie Gouin Valentin J Alvarez Victoria Mendez Nicole Ewan Todd B. Hannon Mayor's Office City Clerk's Office City Clerk's Office Valentin J Alvarez Victoria Mendez Reviewed B Meeting Department Head Review Budget Analyst Review Budget Review Legislative Division Review Approved Form and Correctness Meeting Meeting Unsigned by the Mayor Completed Completed Skipped Completed Completed Completed Completed Completed Completed Signed and Attested by the City Clerk Completed Rendered Legislative Division Review Approved Form and Correctness Completed Completed Completed 02/23/2023 9:00 AM 02/28/2023 6:34 PM 02/28/2023 8:10 PM 02/28/2023 8:12 PM 02/28/2023 8:14 PM 02/28/2023 8:16 PM 03/09/2023 9:00 AM 04/13/2023 9:00 AM 04/18/2023 5:56 PM 04/18/2023 6:03 PM 04/24/2023 9:38 AM 05/03/2023 11:12 AM 05/03/2023 11:33 AM City of Miami File ID: 13392 (Revision: A) Printed On: 6/30/2025 City of Miami Legislation Ordinance Enactment Number:14161 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 13392 Final Action Date: 4/13/2023 AN ORDINANCE OF THE MIAMI CITY COMMISSION, PURSUANT TO RESOLUTION NO. R-22-0340, ADOPTED ON SEPTEMBER 13, 2022, AND RESOLUTION NO. R-22-0423, ADOPTED ON OCTOBER 27, 2022, 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 EMPLOYEE'S AND SANITATION EMPLOYEES' RETIREMENT TRUST," MORE PARTICULARLY BY AMENDING SECTION 40-255, TITLED "BENEFITS," INCREASING THE DROP PARTICIPATION TO (84) MONTHS; CONTAINING A SEVERABILITY CLAUSE; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE. WHEREAS, pursuant to Resolution No. R-22-0340, adopted on September 13, 2022, and Resolution No. R-22-0423, adopted on October 27, 2022, the City of Miami ("City") ratified an amendment to the Collective Bargaining Agreement between the City and the Miami General Employees American Federation of State, County, and Municipal Employees Local 1907, AFL- CIO in effect for the period of October 1, 2020 through September 30,2023; and ratified an amendment to the Collective Bargaining Agreement between the City and the Miami General Employees American Federation of State, County, and Municipal Employees Local 871, AFL- CIO in effect for the period of October 1, 2020 through September 30, 2023; and WHEREAS, as a result of the amendment to the Collective Bargaining Agreement, certain changes must be made to the pension ordinance; and WHEREAS, it is necessary to amend Chapter 40/Article IV/Division 3 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. Section 2. Chapter 40/Article IV/Division 2 of the City Code is amended in the following particulars:' "CHAPTER 40 PERSONNEL * 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: 13392 (Revision: A) Printed On: 6/30/2025 ARTICLE IV. PENSION AND RETIREMENT PLAN DIVISION 3. CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT TRUST Sec. 40-255. - Benefits. (I) Deferred retirement option program. Effective upon ratification of the A.F.S.C.M.E., Local 1907, labor agreement for October 1, 2001 through September 30, 2004, the DROP of the retirement plan shall be available for general employees and shall consist of a FORWARD DROP and a BACDROP. Any general employee who has reached age 55 with ten years of creditable service, or who has attained a combination of age plus years of creditable service equal to 70, shall be eligible to participate in the DROP. (1) Election to participate. Upon election of participation in the DROP, by using forms and procedures as prescribed by the board of trustees, a member's creditable service, accrued benefits, and compensation calculation shall be frozen and shall be based on the member's average final compensation as the basis of calculating the DROP payment. Upon commencement of participation in the DROP, the member's contribution and the city contribution to the retirement plan for that member shall cease as the member will be earning no further service credit. The member shall not acquire additional pension credit for the purposes of the pension plan but may continue city employment for up to a maximum of 48 months. {2) Maximum participation. The maximum period of participation in the DROP, is 48 months. Once the maximum participation has been achieved, the participant must terminate employment. (2) Effective September 19, 2022, notwithstanding any provisions to the contrary in this Ordinance, the maximum period of participation in the DROP shall be (84) months for all members of the Plan. The backdrop option shall not replace the DROP program. All members of the plan who attain normal retirement eligibility shall be eligible for the forward DROP as amended, and any member of the plan who chooses not to enter the forward DROP shall be eligible for the backdrop. *„ 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 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 City of Miami File ID: 13392 (Revision: A) Printed On: 6/30/2025 APPROVED AS TO FORM AND CORRECTNESS: ey 5/3/2023 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: 13392 (Revision: A) Printed On: 6/30/2025