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HomeMy WebLinkAboutO-08649E$M/CS 12/7/76 ORDINANCE N0, G49 AN ORDINANCE AMENDING THE MIAMI CITY GENERAL EM- PLOYEES' RETIREMENT PLAN (ORDINANCE NO, 5624, MAY 2, 1956, AS AMENDED) , AS APPEARING IN CODIFI- CATION FORM AS PART OF CHAPTER 2 OP THE CODE 'OP THE CITY OP MIAMI, ?LORIDA, 1957, AS AMENOE0, MORE PAR- TICULARLY AMENDING SECTION 109, AS AMENDED, OP SAID CHAPTER 2 ► PROVIDING THAT A PORMER CITY OF MIAMI EMPLOYEE, WHO HAS REJOINED THE CITY' S WORK FORCE MAY REDEPOSIT HIS CONTR/BUTlONS BY FILING WITH THE RETIREMENT PLAN BOARD WITHIN 30 DAYS OP THE EMPLOYEE'S RECEIPT OP SAME, A FORM WHICH CONTAINS AN ELECTION TO PAY BACK OR REDEPOS 1P SAID CONTRIBUTIONS; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREIN; AND CONTAIN- ING A SEVRRABILITY PROVISION AND AN EEFECrIVE DATE. WHEREAS, the Miami City General Employees' Retirement Plan (Ordinance No. 5624, May 2, 1956, as amended) was not in- cluded as a portion of the new Code of the City of Miami, Florida, effective September 1, 1967, as adopted by Ordinance No. 7585 (July 25, 1967): and WHEREAS, said Plan now exists in codified form as it appears in Chapter 2 of the Code of the City of Miami, Florida, 1957, as amended, in addition to basic ordinance form; and WHEREAS, any addition or amendment to said Plan can thus be made by reference to the section designations as they appear in Chapter 2 of the Code of the City of Miami, Florida, 1957, as amended; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA; Section 1. The Miami City General Employees' Retirement Ptan (Ordinance No. 5624, May 2, 1957, as amended) as appears in edified form as a part of Chapter 2 of the Code of the City CITY COMMISSION of Miami, plvri a, 1957 as amended, la hereby ur hsFr amended in the followingparticulerstl Section 2-109, Benefits 4 e e RestOrati©n of 'Service Credits to Certain Re- employed Former Members (17)(a) if a former member of thin plan who is not a beneficiary and not within five years of reaching the minimum service retirement age for his latest group and classification, whose active membership has not been terminated for a period in excess of three years and who, at the time of termination of membership, had five or more years of creditable service again becomes a member, he shall have the right to elect to redeposit in the Annuity Savings Account the amount of his accumulated contributions returned to him 1910-fili:Ag-with-tke-beard4he-fats+-presided by -it fir-»ttek-pevpase-witia-Wivty-daps-of-khe e n+e-ef-restePettienT by.__f,ilinclywith #ham board_a form which..;containsan_election tO pay_,back ,or redepos_itsaid contributions. .The form .shall be sent to the applicant by. registered mail and must _be returned tothe board within 30 dly.g of race iat. * * Section 2. All ordinances, code sections, or parts thereof in conflict herewith, insofar as they are in conflict., are hereby repealed. Section 3. If any section, sentence, clause, phrase, or word of this ordinance is for any reason held or declared to be unconstitutional, inoperative, or void, such holding or in- validity shall not affect the remaining portions of this ordin- ance, and it shall have been construed to have been the intent of the Commission of the City of Miami to pass this ordinance without such unconstitutional, invalid, or inoperative part therein, and the remainder of this ordinance after the exclusion of such part or parts shall be deemed and held to be valid as 1/ Words etriciCen through shall be deleted. Underscored words constitute the amendment proposed. Remaining provisions of Section Z-109 are now in effect and remain unchanged. Page 2 of 3 8649 coma Qi factive on the Lath .day of „jun. it such parts had net bin tneIWed therein. Section 4. The provisions of this esdi.nanee shall be., .. .�+ i977. is tt PASSSD ON PIRST RAMO BY TIT= SLY day of - 1977. PASSED AND ADOPTED ON SCCONO AND PINAL RRAtINB BY TITL2 ONLY this .12,th.__day of ln7 7. ATTEST: PREPARED AND APPROVED BY: Sherman Bennett Mayor Assistant City Attorney APPROVEDgip TO FORM AND CORRECTNESS: F . Nno.if City Attorney Page 3 of 3 MAURICE A. PERRE MAYOR 8649 11 "1 al Pr Pilaw M1AM1 IRCVIEW *w *AM MOND Pibtlitied Thtilt mot sorts% SW* tarkt toed thifilan alignii).Thsh ens" Mot& 1?Ati MONA num et DAM greinoenNelgYme .151• pit Leiitait git of TM Ian °FM* ane deny Wenn saittedio, ared Wig &Lift' `161175171kelstala ;dopy% In tirgattifig I Legill A vertiseinant or Miles In CITY or mum, bAbt COUNTY oisdihatme k 8649 XXXX In the *Jun VAS habIlithed III bald IteMOIDlit In the !MUMS or May 181 1977 Aftllnt further says that the iaid Miami Review end Diklbr Record it 1 Marathoner Mit:tithed At Miami. Uh said Ohhh county, Florida, and that the said news. paper has heretofore been etintintletssiy oUbjithed Said Dade DotintyFlorida, bath day (except Saturday, Sunday end Legal liolidays) end hat been ehtered at tetend MIS mail Matter at the poet office in NAM,. 111 Seld Dade County. Florida, for 6 belied Of one yelif next preceding the first bubileetion of the attached copy of ittivertiternenn and Offilant further Says that She hat heither Oeid not broinined any person. firth �P tOrpitratieh Miy ditedunt. rebatit, ebrrunisalori et refund for the purpose of seturine this Advertisement nit bubiltetion In the said newsnabet. 0) SWOrh I 76 6 ppEleribalybe Ote Me A. 16-4 MIA 18th ay 1 — — \) 77 .. f (SEAL) 1.1.0rik);A My tontrnistiOn expiresJutte 1, 1970: -- MAK SAGE tow" MINOR 'ARIAL litettet Ali Ifilretostpd *RI take 11611-e8 that 011 ifte 1Th sty et tiA2#,1011110 tiff eblwrmittito et, t•ilsred, P11.00111 3000100 the teatelVIS. 11408 atAbItt0: ++4 ORDINANCE t40. 1340 AN ORDINANCE AMENDING ?HE MIAMI tirtISENERAL- SAAPLOYSSS' IKTIRSMINT PLAN tORDINANCEI SD: MU, MAY 2, ION, AS AMENDEDI, As APPEARING IN tOINPIDATION FORM AS PAR? OP CHAPTER ROP_TNE CODE OP THE CitY OP MiAMI, riARIDA) 19S7 AS AMttlbetli; MORE PARTICULARLY ANISNDIND1111014 100, AS AMENDEO, OP SAID NAPTSII 'PROVI INS THAT A FORMER CITY OPMiAMt EMIsLOYSC,_*1-11314A8 REJOINEILIME CITY3 WORK PORCE NIKT itnaPosit-, HIS CONTRIBUTIONS SY PILING Wl?14 TIC *STIRS, MEN? PLAN :SOAR!) YVITI4114 30 DAYS OP ?HS BMPLOYES'S ikEttIPT 'OP SAME, A FORM WHIDH CON. • TAWS AN ELECTION TO PAY SACK OR REDSPOSIT SAID CONTRISUTIONS; RSPEALING ALL ORDINANCES, OR PARTS OP ORDINANCES IN CONFLICT MERSIN: AND CONTAINING A SEVERABILITY PROVISION AND AN EP PEctivE OA1-E. RALPH G. ONGIE CM. CLERK WY OP MIAMI, FLORIDA Publication el this notice on the 18 day ot May', 107/. SAO All interested witt take notice that an the 12th day et May, 1977 the City Commission of Moats Plarida adopted the following titled ordinAneet 8849 ORDINANCE NO, AN ORDINANCE AMENDING THE MIAMI CITY GENERAL EM- PLOYEES, RETIREMENT PLAN (ORDINANCE t4 5624, MAY 2, 1056, AS AMENDED), AS APPEARING IN CODIPI- CATION PORM AS PART OP CHAPTER 2 GP THE CODE OP THE CITY OP MLAMt, FLORIDA, 1057, AS AMENDED, MORE PAR TICULARLY AMENDING SECTION 109, As AMENDED, OP SAID CHAPTER 2t PROVIDING THAT A 1?ORMER CITY OP MIAMI EMPLOYEE, WUO HAS REJOINED Ta4 CITY'S WORK FORCE MAY REDEPOSIT HIS CONTRIEuTIONS BY PILING WITH THE RETIREMENT PLAN BOARD wtTHIN 30 DAYS OP THE EMPLOYEE'S RECEIPT OP SAmAA NAM WHICH. CONTAtNS AN ELECT/ON TO PAY EACR OK REDEPOSIT SAID CONTRIBUTIONS; REPEALING ALL ORDINANCES OR PARTS OP ORDINANCES IN CONFLIcT HEREIN; AND CONTAIN- ING A SEVERABILITY PROVISION AND AN EPPECTIVE DATE, RALPH O. OMB CITY CLERK CITY OF MIAMI, MEM dity I T'`Y : L ftit A tt o,A es ph Its Brassie itytiahager iLt tGUhd fsoti u.*; bisector of Pitafide oM Ma17/ 5tt633te�: �e�te i'oti'� Revie;_ t:c,tj €iacEa the fiscal yearconimencing October 1,.195/-.has beet initiallyprojected .as a $6022)245 problem if the tnillage rate is increased to the 10 mill eap. Otherwise) it is even lat;get. tack dollar added to that deficit by restoring equity within the pension fund trust be viewed as a challenge to the'City*s service delivery capability or a compensating reduction in pension benefits, It is within this context that requests for restructuring the pension program'. must be viewed Since the raw data for such a review will not be available until. May 29, 1977, it would be premature to adjust costs to the program upward without taking the commensurate action of reducing some benefits, That process should be analyzed in conjunction with the outstanding requests which have not been forwarded to you from the Pension Plan Board, as well as the immediate requests before the City Commission. Pay back revisions are now under analysis by the actuary, but I would conservatively estimate them in the hundreds of thousands of dollars. All of these suggested revisions will have the force of restoring equity to the program. The ability to increase costs in the name of equity must be balanced with the need to negotiate with the unions the reduction in benefits in order to keep costs within the framework of other priorities. JEG;vh" d►i "t :ci" MtA I. t.batbA INfitta,OPF16Mt"Ml tIANbUM 77 3se3�i " Gressie;,. CttManager Irwin .Ma ih ecrete.ry Retirement Phan 5tit3lt:61-: February 163 —977 ha. Ret.H. nt;�chisNir�s: 04cLOsuttttt Ordiha lee Atieridnient f Ret"o'at"ion, of '8e,rvice itredit; /'" `. • r The Retirement Board of the Miami City General.Employeest Retirement Plan Unanimously approvedrecorninending to the City Commission the e.doptioh: of the Ordinance attached', hereto. The purpose of the amendment is to change the time frame in Which a member has to apply for restoration of service:' credit. Originally a member had toapply for credit Within 30 days of the time of restoration. This amendment allows the individual 30 days from a form sent b the Board thru registered receipt of; Y mail. The Board felt there should be ,no financial' hardship to 'members due t'o`lack "of notification. There are presently six' employees that meet all the criteria for restoration : of service credit, except for the 30 day application period. A cost study Was performed; by i1ruseg O'Connor; and Ling .to determine the cost of allowing these employees to, restore their service credit. That study is attached. Please schedule this Ordinance on the City Commission Agenda. PM) OtONNOtt AND L i•CI f feCt FBPit+ LAubtwoALE Otftet. Pit R•ttt ilOo*Abe bauttvAM:haft 3845 PLA tAtlow, lLoQ1oA lilt• 11811$ 4,f4Sio0 eloatti4thit ;owe? tat, Pee‘j Jetivaty 12, 1977 Mt, Irwin With, Secretary City of Miami bmiiloyeesr Retirement System end plan box 330703 - Coconut Grove Station Miarrii, Florida 33133 Dear Mr, Mazin: kb tH/ttt4tPAL ttoR11t3A BEEret 131! HOntomttt Ira AvtauE 6.Alat&v1LLtitLOl ICA 3fd01 11)6+1 iiix6tloo 1.. •. • ramis Via ' . ;1• ►: JAM , I078 t�txl"xc..ki14 blViZiON As you requested in your letter dated December 21, 1976, we have determined the increase in cost to the City and the increase in the unfunded accrued liability if the proposed ordinance, • allowing the six named General Employes to buy back their previous service, is passed. The calculations were performed as of January 1, 1976, the date of the last actuarial valuation Report. The increase in annual City cost would initially be $561 as of January 1, 1976 (i.e., for the City fiscal year ending September 30, 1977) and would rise to an ultimate level of $3,888 by the end of the current 35 year amortization period. The average City cost for this benefit over the 35 year period would be approximately $2,400. The unfunded accrued liability as of January 1, 1976 would increase by $67,146 if the ordinance is Gdopted. This increase is net of the expected return:refunded contributions, including 4% interest (pursuant to Section 41-432 (2)(i) of the Plan regarding "regular interest"), which the six employees would redeposit in the Fund. The City cost for this proposed ordinance would increase periodically, rather than remain levet, becousc of the actuarial funding method used in the regular annual valuations. The funding method, known as the Entry Age Normal Cost Method, spreads the ultimate cost of c person's retirement benefit over the period of time beginning vrith his dote of entry into the Plan and ending with the date he attains the assumed retirement age (currently age 63). The allocation of cost for a given year of service is called the normal cost. The normal cost decreases as the funding period (from date of entry to aje 63) increases because technically there is a longer period of tirne to accumulate the required amounts by the retirement date. Therefore, since the dates of entry into the Plan for the six employees in question will be back -dated to allow for the the previous service, the nor:nal cost for these six persons will actually decrease. However, as each persdn attains age 63, the total decrease in normal cost will become less, thus, causing the overall cost to increase, as previously stated.