HomeMy WebLinkAboutBack-Up from Law DeptSec. 40-265. - Excess benefit plan.
(a) The excess retirement benefits above the limits permitted by the Internal Revenue Code
shall be as follows:
(1) Funded from the City of Miami General Fund; and
(2) Paid annually concurrently with the city's annual contribution to normal pension
costs, which shall cause the city to realize a reduction in normal pension costs in the
same amount; and
(3) Be deposited in separate accounts for each respective plan to receive the
city's excess retirement benefit contributions, which accounts shall be separate and apart
from the accounts established to receive the city's normal pension contributions for each
retirement trust;
(b) The board of trustees for General Employees' and Sanitation Employees' (GESE) is
appointed as the committee to administer the Excess Benefit for the GESE retirees.
(c) The actuaries for the GESE Board of Trustees shall calculate the amounts necessary to
fund the defined benefit plans giving effect to the reductions caused by implementation of Section
415 of the Internal Revenue Code.
(d) The excess benefits shall be paid to each eligible member of the Plans on a monthly
basis in an amount equal to the difference between the allowable pension to be paid under the
Internal Revenue Code and the amount of the defined benefit granted eligible members pursuant
to the provisions set forth in the Code.
(e) Should additional retirements occur during the year where the eligible member's
retirement benefit exceeds the Section 415 limits, the GESE Board of Trustees shall calculate the
additional excess benefit amount required for the remainder of the fiscal year and should such
amount exceed the amount available from the funds provided for the fiscal year, the GESE board
of trustees shall notify the city of the additional funds required.
(f) Upon the city's receipt of notice of the additional funds required, the city shall forward the
additional funds required. The requirement for additional funds paid by the city to fund
the Excess Benefit Plan shall be reflected as a reduction in the city's annual contribution of
normal pension costs for the following year.
(Ord. No. 12111, § 1, 9-25-01)