HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM
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Date: 03/07/2017 Requesting Department: General
Employees' and Sanitation Employees'
Retirement Trust
Commission Meeting Date: 05/11/2017 District Impacted: All
Type: Ordinance
Subject: Implement - IRS Required Language
PURPOSE OF ITEM:
Implement IRS required language for favorable determination letter for the City of Miami
General Employees' & Sanitation Employees' Retirement Trust.
BACKGROUND INFORMATION:
An ordinance of the Miami City Commission in compliance with the Internal Revenue
Service favorable determination letter dated January 27, 2017, amending Chapter 40,
Article IV, Division 3, of the Code of the City of Miami, Florida, as amended, entitled
"Personnel/Pension and Retirement Plan/City of Miami General Employees' and
Sanitation Employees' Retirement Trust."
Budget Impact Analysis
Item is NOT Related to Revenue
Item is NOT funded by Homeland Defense/Neighborhood Improvement Bonds
Item has NO budget impact
Reviewed By
City Manager's Office Fernando Casamayor
General Employees' and Sanitation Employees' Retirement Trust
Review Completed
04/03/2017 3:15 PM
Legislative Division
Valentin J Alvarez
City Manager's Office
Daniel J. Alfonso
Office of the City Attorney
Barnaby L. Min
Office of the City Attorney
Maricarmen Lopez
City Commission
Nicole Ewan
Legislative Division
Valentin J Alvarez
Office of the City Attorney
Barnaby L. Min
Office of the City Attorney
Victoria M6ndez
City Commission
Nicole Ewan
Office of the Mayor
Mayor's Office
Office of the City Clerk
City Clerk's Office
Assistant City Manager Review
Completed
03/27/2017 2:57 PM
Edgard Hernandez
Department Head
Legislative Division
Completed
04/03/2017 3:19 PM
City Manager Review
Completed
04/04/2017 3:07 PM
Deputy City Attorney Review
Completed
04/04/2017 3:25 PM
Approved Form and Correctness
Skipped
04/07/2017 11:06 AM
Meeting
Completed
04/13/2017 9:00 AM
Legislative Division Review
Completed
04/14/2017 9:25 AM
Deputy Attorney Review
Completed
04/14/2017 10:01 AM
Approved Form and Correctness
Completed
04/17/2017 1:39 PM
Meeting
Completed
05/11/2017 9:00 AM
Signed by the Mayor
Completed
05/19/2017 4:36 PM
Signed and Attested by the City Clerk
Completed
05/19/2017 4:50 PM
City of Miami File ID: 1949 (Revision: A) Printed On: 91112017
File Number: 1949
City of Miami City Hall
3500 Pan American Drive
Legislation
Miami, FL 33133
Ordinance:13679 www.miamigov.com
Final Action Date -5/11/2017
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER
40/ARTICLE IV/DIVISION 3 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS
AMENDED, ENTITLED "PERSONNEL/PENSION AND RETIREMENT PLAN/CITY OF
MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES' RETIREMENT
TRUST" TO INCLUDE CHANGES REQUIRED BY THE INTERNAL REVENUE SERVICE;
CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA:
Section 1: Chapter 40, Article IV, Division 3 of the Code of the City of Miami, Florida, as
amended, is amended in the following particulars:'
"CHAPTER 40
PERSONNEL
Article IV. Pension and Retirement Plan
DIVISION 3. CITY OF MIAMI GENERAL EMPLOYEES' AND SANITATION EMPLOYEES'
RETIREMENT TRUST
Sec. 40-241. Definitions.
The following words and phrases as used in this division shall have the following meanings:
Actuarial equivalent shall mean a benefit having the same present value as the benefit it
replaces based upon the actuarial table adopted by the board of trustees. For purposes of
determining actuarial equivalence under Internal Revenue Code Section 415, the applicable
mortality table will be the table under Internal Revenue Code W 7(e)(3)(B).
Compensation shall mean a member's base salary, including pick-up contributions for all
straight time hours worked, assignment pay, pay supplements, vacation, and sick leave used
while an active member, jury duty, and death in family leave taken or any other administrative
leave approved pursuant to ordinance, labor agreement, or city personnel policy which is used
as part of the member's base salary. Compensation shall not include overtime pay, payments
' 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
unchanaed material.
City of Miami File ID: 1949 (Revision: A) Printed On: 9/1/2017
for accumulated sick leave, accumulated vacation leave, or accumulated compensatory leave,
premium pay for holidays worked, call back pay, uniform allowances, tool allowances, the value
of any other employment benefit or non -monetary entitlement, or any other form of
remuneration. The amount of compensation taken into account under the System may not
exceed $200,000.00. This amount is subject to adjustment as provided for in Internal Revenue
Code Section 401(a)(17), Internal Revenue Code Section 415(d) and Section 16 of this Plan.
Beginning with compensation earned after December 31, 2008, and pursuant to Internal
Revenue Code Section 414(u)(7), the definition of compensation includes the amount paid by
the City as differential wages to members who are absent from employment while in qualified
military service.
Internal Revenue Code shall mean the Internal Revenue Code of 1986, as amended from time
to time
Normal retirement age shall mean age 55 for members employed on September 30, 2010 who
have attained age 55 by that date and members who retire or terminate employment with ten or
more years of creditable service prior to October 1, 2010. Normal retirement age shall mean the
earlier of age 60 with ten years of creditable service or age 55 with 30 years of creditable
service for members who have not attained age 55 as of September 30, 2010 and all other
members who retire on or after October 1, 2010. All members are 100% vested upon reaching
Normal Retirement Age.
Sec. 40-242. Plan established; purpose; name; operative date.
A Plan is established and placed under the exclusive administration and management of a
board of trustees for the purpose of providing retirement benefits pursuant to the provisions of
this Code and for payment of the reasonable expenses of the Plan. This Plan shall be known as
the "City of Miami General Employees' and Sanitation Employees' Retirement Trust." This Plan
is intended to be a tax qualified plan under Internal Revenue Code Section 401(a) and meet the
requirement of a governmental plan as defined in Internal Revenue Code Section 414(d).
Sec. 40-254. Paybacks for membership credit.
(3) Credit for military service.
f. Effective January 1, 2007, members who die or become disabled while serving on active
duty military service shall be entitled to the rights of this Section even though such
participant was not re-employed by the City as an employee. Members who die or become
disabled while on active duty military service shall be treated as though re-employed as an
employee the day before the member became disabled or died, and then either died a non -
duty death while employed or became disabled from a non -duty disability. Eligibility, if any,
for benefits will then be determined under the Plan Drovisions.
City of Miami File ID: 1949 (Revision: A) Printed On: 9/1/2017
Sec. 40-262. Compliance with the Internal Revenue Code.
(f) This subsection applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the plan to the contrary that would otherwise limit a
distributee's election under this subsection, a distributee may elect, at the time and in the
manner prescribed by the Plan administrator, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the distributee in a direct
rollover.
(1) For the purposes of this section and section 40-266 of this Plan, the following words and
phrases shall have the meanings indicated:
a. "Eligible rollover distribution" is any distribution of all or any portion of the balance to the
credit of the distributee, except that an eligible rollover distribution does not include:
1. Any distribution that is one of a series of substantially equal periodic payments (not
less frequently than annually), made for the life (or life expectancy) of the distributee,
or the joint lives (or joint life expectancies) of the distributee and the distributee's
designated beneficiary, or for a specified period of ten years or more;
2. Any distribution to the extent such distribution is required under Section 401 (a)(9) of
the Internal Revenue Code; and
3. The portion of any distribution that is not includable in gross income.
b. "Eligible retirement plan" is an individual retirement account described in Section 4O8(a)
of the Internal Revenue Code, an individual retirement annuity described in Section
4O8(b) of the Internal Revenue Code, a qualified trust, an annuity plan described in
Section 4O3(a) of the Internal Revenue Code, or an eligible defined compensation plan
described in Section 457(b) of the Internal Revenue Code which is maintained by an
eligible employer described in Section 457(e)(i)(A) of the Internal Revenue Code, or an
annuity contract described in 4O3(b) of the Internal Revenue Code that accepts the
distributee's eligible rollover distribution. HGWeVeF in OhoGaGE-1.,f aR eligible rnlleyer
c. "Distributee" includes an employee or former employee. In addition, the employee's or
former employee's surviving spouse is a distributee with regard to the interest of the
spouse. Additionally, "Distributee" includes a non -spouse beneficiary whose rollover
options are limited to an individual retirement annuity.
d. "Direct rollover" is a payment by the Plan to the eligible Plan specified by the distributee.
(g) In the event of a mandatory distribution under this Plan in excess of $1,000.00 and the
member does not elect to receive the distribution directly, then the Board shall make a transfer
to an individual retirement plan of the Board's choosing and shall notify the members in writing
of such transfer.
Sec. 40-264. General conditions.
(a) The City of Miami General Employees' and Sanitation Employees' Retirement Trust may
sue or be sued as an entity.
(b) The city commission shall have continuing power to amend or supplement this division,
but no amendment shall be adopted which will reduce the then accrued benefits of members or
beneficiaries covered by accumulated reserves, which reserves shall constitute a trust fund for
the payment of such benefits.
City of Miami File ID: 1949 (Revision: A) Printed On: 9/1/2017
(c) There shall be no reversion of trust funds or a return of employer contributions unless all
liabilities have been satisfied.
(d) Upon plan termination or a complete discontinuance of contributions, a member's
interest is non -forfeitable.
*„
Section 3. If any 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, unless an earlier date is specified in the text of the amendment.2
APPROVED AS TO FORM AND CORRECTNESS:
1
Un ndez, City A t#or i e
4/17/2017
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: 1949 (Revision: A) Printed On: 9/1/2017