HomeMy WebLinkAboutItem #59 - First Reading OrdinanceCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO:
FROM:
Frank Weston, Acting Director
Law Department
P. W. Andrews
City Manager
DATE.
I 1 5
FILE:
SURJECT: City Manager Pension Emoluments
REFERENCES:
ENCLOSURES:
It is requested that an appropriate resolution be prepared for the July 22,
1976, City Commission Meeting that will set up the following procedure
and provide the City Manager with the alternatives listed below.
The funding of the pension emoluments for the City Manager will be derived
from two major sources - the employee contributions and contributions
made by the City.
The City's contributions will be co -mingled with City funds or a separate
account will be established in the Department of Finance identifying the
City's contributions. The City's contributions would then be transferred
from the Department of Finance to the Retirement Plan Trust Account.
It is desired that the City Manager will have withheld from his salary an
amount equal to the present Retirement Plan employee contributions.
Presently, that amount is set at S o. These funds would be retained and
co -mingled with City funds or a separate account may be established in
the Department of Finance. The following options would be available to
the City Manager:
1. The deduction from the City Manager's salary would
be retained by the Departr rent of Finance and would
accrue interest in a manner identical to that of em-
ployee contributions in the City of Miami Retirement.
Plan. At any time the City Manager terminates his
employment with the City of Miami, that amount re-
tained by the City from the City Manager's contribution,
together with the interest earned, would be returned
to the individual.
JUL 1 5 1976
Frank We" n, Acting Director
Law Department
Providing the City Manager has served a minimum
of five years, but not more than ten years, he may
designate a public trust of his choice 1.vhich is recog-
nized by the Internal Revenue Service. The funds held
by the City previously deducted from the City Manager's
salary, together with accrued interest and an amount
that would have been contributed by the City had the
City Manager been a member of the City of Miami
Retirement Plan would be transferred by the City to
the trust selected by the City Manager.
3. After ten years of City service, the City Manager
has the option of joining the Retirement Plan with
full privileges and ve ted rights. Upon such election
by the City Manager, the Department of Finance would
transfer the monies previously set aside, together with
accrued interest in an appropriate amount that would
have been deposited by the City had the Manager been a
member of the Retirement Plan, to the Retirement Plan,
Effort has been made to be as complete as possible in providing the City
Attorney with the necessary information to prepare this resolution, how-
ever, should questions arise, it is suggested that you contact the City
Manager or Jack Eads.
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