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ORDINANCE NO.
An Ordinance of the Mayor and City Commission of the City of South
Miami, Florida amending the South Miami Pension Plan, providing
for an amendment to Section 16 -12, Definitions, to comply with
current City policy concerning the definitions of annual
compensation, final average compensation, department head,
employee, full time employee, participation and part -time employee;
amending Section 16- 14(f)(1)(b) to allow retired participants to
change a beneficiary up to two times at the participant's cost in
compliance with Chapter 2009 -97, Laws of Florida; amending the City
of South Miami Police Officers Retirement Trust Fund to provide for
compliance with chapter 2009 -97, Laws of Florida; amending Section
16-17(b) to eliminate the 3% interest payment on return of
contribution; providing for severability; providing for codification;
and providing for an effective date.
WHEREAS, the current language in the pension ordinance does not comply with
city policy concerning the definition of Annual Compensation, Final Average
Compensation, Department Head, Employee, Full -time Employee, Participation and
Part -Time Employee; and
WHEREAS, an amendment to the City code is necessary to coordinate the
pension ordinance language and the city policy; and
WHEREAS, the 2009 Florida Legislature enacted Chapter 2009 -97, Law of
Florida, which mandates certain amendments to the City of South Pension Plan and
City of South Miami Police Officers' Retirement Trust Fund; and
WHEREAS, recent changes to State statutes require several amendments to the
Plan in order to maintain eligibility for receipt of state premium tax revenues; and
WHEREAS, an amendment to the City code is necessary to permit such new
obligations and conditions; and
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WHEREAS, the trustees of the City of South Miami Pension Plan and City of
South Miami Police Officers' Retirement Trust Fund have requested and approved the
amendments provided herein as being in the best interests of the participants and
beneficiaries and improving the administration of the plan, and
WHEREAS, the City Mayor and City Commission has received and reviewed an
actuarial impact statement related to these change and attached as such; and
WHEREAS, the City Commission deems it to be in the public interest to provide
these changes to the pension plan and to the pension plan for its police officer
employees;
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT:
Section 1. That the foregoing whereas clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of this
Ordinance upon adoption hereof.
Section 2. Section 16 -12 of the Code of Ordinances of the City of South
Miami, Florida, is hereby amended as follows:
Sec. 16-12. Definitions.
Annual Compensation shall mean regular wages and salaries, including
hazardous pay overtime pay vacation sick leave holiday pay clothing
allowance educational incentive and extra duty pay.
Department Head shall be defined in Article II Section 2.5 of the City Code
as designated therein including: the title of Assistant City Manager,
Department Head and Police Chief, who are responsible directly to the city
manager, for operation of an established City department
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Employee shall mean any person employed full -time by the Employer on a
regular, permanent basis. Elected officials and any person—vA4ese
for five (5) months or less in I I shall be excluded. The city
manager, and city clerk shall be included within the definition of Employee,
however such positions shall be allowed to opt out (in writing) of this
pension plan.
Employer shall mean City of South Miami.
Final average compensation shall mean the Participant's annual
compensation, as determined by the Employer, a-_tJ-g in ;f 4
excluding accruals such as vacation, holiday
pay, sick leave and compensation time averaged over the last three -year
period ending on the Participant's retirement date, date of disability, date
of termination of employment or the date of termination of the plan,
whichever is applicable. For police officers, final average compensation
shall mean the greater of:
(1) The average of the Participant's five best years of annual
compensation during the last ten (10) years of service or
(2) The average of the Participant's annual compensation over
the Participant's last three (3) years, as described above.
Full time employee shall mean an Employee who works 32 hours a week
or more on a continuing basis and is eligible to receive all benefits ...
Participation date shall mean date of participation in this Plan by a Full
time employee.
Part time employee shall mean employees who work less than 32 hours a
week. Part time employees are not eligible to receive a pension benefit
though the City.
Section 3. Section 16- 14(f)(1)(b) of the Code of Ordinances of the City of
South Miami, Florida, is hereby amended as follows:
Sec. 16 -14. Pension benefits and retirement date.
(f) Optional forms of payment.
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1 (1) A participant entitled to a normal or early service retirement
2 benefit shall have the right at any time prior to the date upon which the
3 first payment is received to elect to have the benefit payable under one of
4 the options provided in this section. The participant shall be permitted to
5 revoke any such election and to elect a new option at any time prior to the
6 receipt of the first payment. Election of the retirement option shall be on a
7 form prescribed by the board of trustees.
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b. Joint and last survivor option. A participant may elect to receive
a reduced benefit for life and to have the same benefit (or a
designated fraction of the benefit) continued after the participant's
death and during the lifetime of a designated joint pensioner. The
participant shall have the option of electing to receive the payment
of a benefit of seventy -five (75) percent, sixty -six and two- thirds (66
2/3) percent, or fifty (50) percent of the participant's monthly
retirement allowance to be paid at the participant's death to a joint
pensioner designated by the participant at the time of or prior to
retirement, such benefit to be payable during the lifetime of the joint
pensioner. The reduced retirement benefit shall be the actuarial
equivalent of the amount of the retirement compensation otherwise
payable to the participant. A designated joint pensioner may be any
natural person, but need not be the spouse of the participant. In the
event that the designated joint pensioner dies, before the
participant's benefit payments begin, this option shall be canceled
automatically and a retirement income shall be payable to the
member in the form of a life annuity as if the election had never
been made. A retired participant may change his or her joint
pensioner up to two times without the approval of the Board or the
current joint pensioner. The retiree member need not provide proof
of the good health of the joint pensioner being removed, and the
designated survivor being removed need not be living. Any
increase in liability to the Plan associated with the new designation,
as determined by the Fund's actuary, shall be borne by the retiree.
37 Section 4. Section 16 -33 of the South Miami Code of Ordinances is hereby
38 amended to read as follows:
39 Sec. 16 -33. Membership of board; term; officers; meetings; quorum.
40
41 (a) There is hereby created a seven - member board of trustees of the city
42 police officers' retirement trust fund, which board shall consist of three (3)
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proceedings of the board and shall comply with requirements of F.S. §
185.06(3). At each quarterly meeting a report detailing the assets and
liabilities of the fund as of the date of such meeting shall be presented. All
elections of the board shall be by a majority vote, a quorum being present.
Three k34Eour L4Lor more trustees shall constitute a quorum. Trustees
shall receive not compensation as such but may be reimbursed for any
expenses related to board business.
Section 5. Section 16 -37 of the South Miami Code of Ordinances is hereby
amended to read as follows:
Sec. 16 -37. Powers of board.
The board shall have the power and authority as follows:
(a) To invest and reinvest monies of the fund. In making such
investments they shall be governed by F.S. ch. 185 relating to the
investment of fiduciary funds, except that the allocation of assets shall not
be less than forty (40) percent in fixed income investments at market. The
board may, however, invest up to ten twenty -five (25) percent of the
assets in international securities.
(f) The board shall identify and publicly report any direct or indirect
holdings it may have in any scrutinized company, as defined in Florida
Statutes Section 215.473 and proceed to sell, redeem divest, or
withdraw all publicly traded securities it may have in such company
beginning January 1 2010 and shall thereafter be prohibited from
purchasing or holding such securities The divestiture of any such security
must be completed by September 30, 2010. In accordance with Ch. 2009-
97 Laws of Florida no person may bring any civil, criminal, or
administrative action against the board or any employee, officer, director,
or advisor of such board based upon the divestiture of any security
pursuant to this paragraph.
Section 6. Section 16 -42 of the South Miami Code of Ordinances is hereby
amended to read as follows:
Sec. 16 -42. Benefits.
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No participant shall receive benefits from the fund in excess of the amount
credited to his account. Subject to this provision a participant shall receive
benefits as follows:
(f) Death of a participant: Upon the death of a participant prior to
retirement, there shall be paid to the beneficiary last designated by him all
the monies credited to the participant's account plus four (4) per cent
interest, compounded annually, for the period commencing with the
December 31st immediately preceding, but not including, the day of death
of the participant. In the event a participant dies on or after January 1,
2007 while performing Uniformed Services Employment and
Reemployment Act (USERRA) Qualified Military Service the beneficiaries
of the participant shall be entitled to any benefits (other than benefit
accruals relating to the period of qualified military service) as if the
participant had resumed employment and then died while employed.
(g) Change of beneficiary. Each participant shall have the right
to name a beneficiary and to change his beneficiary designation
from time to time. Any such exercise of rights shall become
effective immediately upon proper execution of the beneficiary
designation form provided by the board as a standard form under
this plan. A retired participant may change his or her designated
beneficiary up to two times without the approval of the Board or the
removed and the designated beneficiary being removed need not
be living. Any increase in liability to the Plan associated with the
new designation as determined by the Fund's actuary, shall be
borne by the retiree.
Section 7. Sec. 16 -17. Termination of employment.
37
(a) If the employment of a participant is terminated except by retirement,
38
transfer to ineligible status or death, the participant's interest and rights
39
under this plan shall be limited to those contained in the following sections
40
of this section.
41
(b) Any such participant shall be entitled to elect Option 1 or Option 2, as
42
described below, except that Option 2 shall be automatically considered
Page 7 of 9
I as having been elected by the participant unless Option 1 is elected
2 before the participant's normal retirement date.
3 Option 1: A cash payment of an amount equal to the aggregate of the
4 contributions made by the participant prior to termination of employment
5 with Gredoted interest Go ounded annually at the rate ef three (3) peFGeR
6 per d -ef -the year of payment to the first of the mon#��
7 . Provided that police officer participants
8 eligible to withdraw their contributions from this pension plan may only
9 withdraw their contributions without interest.
10
Option 2: Pension benefits commencing on what otherwise would have
11
been the normal retirement date of the participant in an amount equal to
12
the greater of that which can be provided by the aggregate of the
13
contributions made by the participant prior to the termination of
14
employment, with credited interest compounded annually at the rate of
15
three (3) percent per annum from the end of the year of payment to the
16
date on which pension benefits commence; or an amount determined by
17
multiplying the amount of pension to which the participant is entitled in
18
accordance with subsection 16 -14(a) or 16- 14(b), whichever is applicable
19
by a percentage determined in accordance with the following schedule on
20
the basis of the length of credited service.
21
22 Section 8. If any section, clause, sentence or phrase of this ordinance is for
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any reason held invalid or unconstitutional by a court of competent jurisdiction, the
holding shall not affect the validity of the remaining portions of this ordinance.
Section 9. All ordinances or parts of ordinances in conflict with the
provisions of this ordinance are repealed.
Section 10. This Ordinance shall take effect upon adoption.
ATTEST:
•__►l
PASSED AND ADOPTED this day of
GWOC• _I
MAYOR
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1St Reading —
2 °d Reading —
READ AND APPROVED AS TO FORM
AND SUFFICIENCY:
CITY ATTORNEY
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Palmer:
Commissioner Beasley:
Commissioner Harris:
W:\My Documents \resolutions \Ordinance Amnd Definitions per City Policy SMPP Compliance with 2009- 97 -Ordn rev
final.doc
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