Ordinance Pension 10 05 10 final 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
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 16-17lbl 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
2
1
2
3
4
5
6
7
8
9
10
11
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.
12
13
14
Section 2. Section 16-12 of the Code of Ordinances of the City of South
Miami, Florida, is hereby amended as follows:
15
16
17
18
Sec. 16-12. Definitions.
Annual Compensation shall mean regular wages and salaries, including 19
hazardous pay, overtime pay, vacation, sick leave, holiday pay, clothing 20
allowance, educational incentive and extra duty pay. 21
22
Department Head shall be defined in Article II Section 2.5 of the City Code 23
as designated therein including: the title of Assistant City Manager, Chief 24
Financial Officer, Department Directors not specified in Article II, 25
Section 2.5, Assistant Directors, Purchasing Manager, Executive 26
Administrative Assistant, and Grants and Sustainable Initiatives 27
Administrator. Department Head and Police Chief, who are 28
3
responsible directly to the city manager, for operation of an 1
established City department. 2
3
4
Employee shall mean any person employed full-time by the Employer on a
regular, permanent basis. Elected officials and any person whose 5
customary employment is for twenty (20) hours or less in any one week, or 6
for five (5) months or less in any calendar yearshall be excluded. The city
manager, city clerk,
7
and any persons defined as Department Heads 8
within this section, shall be included within the definition of Employee, 9
however such positions shall be allowed a one time opportunity to opt 10
out, prior to eligibility date as defined in Sec. 16-13 of this code, (in 11
writing) of this pension plan. 12
13
14
15
16
Employer shall mean City of South Miami.
Final average compensation shall mean the Participant's annual
compensation, as determined by the Employer, acting in a uniform and 17
nondiscriminatory mannerexcluding accruals such as vacation, holiday 18
pay, sick leave and compensation compensatory 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:
19
20
21
22
23
24
(1) The average of the Participant's five (5) best years of annual
compensation during the last ten (10) years of service or
25
26
27
28
29
30
(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 over 32 hours a 31
week or more on a continuing basis and is eligible to receive all benefits 32
33
34
…
Participation date shall mean date of participation in this Plan by a Full 35
time employee. 36
37
Part time employee shall mean employees who works 32 hours or less
a week. Part time employees are not eligible to receive a pension benefit
38
39
though the City. 40
41
42
…
4
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:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Sec. 16-14. Pension benefits and retirement date.
(f) Optional forms of payment.
(1) A participant entitled to a normal or early service retirement
benefit shall have the right at any time prior to the date upon which the
first payment is received to elect to have the benefit payable under one of
the options provided in this section. The participant shall be permitted to
revoke any such election and to elect a new option at any time prior to the
receipt of the first payment. Election of the retirement option shall be on a
form prescribed by the board of trustees.
…
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 35
pensioner up to two times without the approval of the Board or the 36
current joint pensioner. The retiree member need not provide proof 37
of the good health of the joint pensioner being removed, and the 38
designated survivor being removed need not be living. Any 39
increase in liability to the Plan associated with the new designation, 40
as determined by the Fund’s actuary, shall be borne by the retiree. 41
42
5
Section 4. Section 16-33 of the South Miami Code of Ordinances is hereby
amended to read as follows:
1
2
3
4
5
6
Sec. 16-33. Membership of board; term; officers; meetings; quorum.
(a) There is hereby created a seven-member board of trustees of the city
police officers' retirement trust fund, which board shall consist of three (3)
police officers as defined herein and in F.S. § 185.02(11), who shall be 7
elected by a majority of the police officers who are participants of the fund, 8
appointed as a ministerial act by the city commission and shall serve as 9
trustee for period of two (2) years; unless he or she sooner leaves the 10
employment of the city as a police officer, whereupon a successor shall be 11
elected in the same manner as an original appointment. Each police 12
officer trustee may succeed himself or herself in office.employees of the 13
police department to be selected by the police participants and appointed 14
by the city commission, the police chief, the finance director, the mayor,
Additionally the mayor and commission shall appoint
15
three residents 16
of the city of whom, who may be a resident or an employee of the city 17
shall be appointed by the city commission, and that shall serve as trustee 18
for a period of two (2) years, unless sooner replaced by the city 19
commission at whose pleasure the trustee shall serve, and a resident of 20
the city (to be appointed by the city commission)seventh trustee that shall 21
be selected by a majority of the other six trustees, and appointed as a 22
ministerial duty by the city commission. The seventh trustee shall have 23
the same rights as each of the other six (6) trustees appointed or elected 24
as herein provided, shall serve as trustee for a period of two (2) years and 25
may succeed himself or herself in office the city manager as a nonvoting, 26
ex officio member of said board. Effective November 1, 2006, the 27
membership of the board shall consist of five (5) members and all prior 28
terms shall expire. Two (2) of whom, unless otherwise prohibited by law, 29
shall be appointed by the city commission, and shall serve as trustee for a 30
period of two (2) years, unless sooner replaced by the city commission at 31
whose pleasure the trustee shall serve, and may succeed himself or 32
herself as a trustee. Two (2) of whom shall be police officers as defined 33
herein and in F.S. § 185.02(11), who shall be elected by a majority of the 34
police officers who are participants [of] the fund, and shall serve as trustee 35
for period of two (2) years, unless he or she sooner leaves the 36
employment of the city as a police officer, whereupon a successor shall be 37
elected in the same manner as an original appointment. Each police 38
officer trustee may succeed himself or herself in office. The fifth trustee 39
shall be selected by a majority of the previous four (4) trustees, and 40
appointed as a ministerial duty by the city commission. The fifth trustee 41
shall have the same rights as each of the other four (4) trustees appointed 42
6
or elected as herein provided, shall serve as trustee for a period of two (2) 1
years, and may succeed himself or herself in office. 2
3
(b) At the first election of trustees, effective November 1, 2006, there 4
shall be elected one (1) police officer to serve as trustee for a two-year 5
term; and one (1) police officer to serve as trustee for a one-year term. 6
Thereafter, each year, one (1) police officer shall be elected to serve as 7
trustee for a two-year term. The board shall annually elect from its
membership a chairman and secretary. The chairman, when present, shall
preside at all meetings. The secretary shall keep complete minutes of all
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 (3)
8
9
10
11
12
13
14
Four (4) or more trustees shall constitute a quorum. Trustees
shall receive not compensation as such but may be reimbursed for any
expenses related to board business.
15
16
17
18
Section 5. Section 16-37 of the South Miami Code of Ordinances is hereby
amended to read as follows:
19
20
21
22
23
24
25
26
27
28
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 (10)twenty-five (25) percent of the
assets in international securities.
29
30
31
32
33
…
(f) The board shall identify and publicly report any direct or indirect 34
holdings it may have in any scrutinized company, as defined in Florida 35
Statutes, Section 215.473, and proceed to sell, redeem, divest, or 36
withdraw all publicly traded securities it may have in such company 37
beginning January 1, 2010 and shall thereafter be prohibited from 38
purchasing or holding such securities. The divestiture of any such security 39
must be completed by September 30, 2010. In accordance with Ch. 2009-40
97, Laws of Florida, no person may bring any civil, criminal, or 41
administrative action against the board or any employee, officer, director, 42
7
or advisor of such board based upon the divestiture of any security 1
pursuant to this paragraph. 2
3
Section 6. Section 16-42 of the South Miami Code of Ordinances is hereby
amended to read as follows:
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Sec. 16-42. Benefits.
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, 19
2007, while performing Uniformed Services Employment and 20
Reemployment Act (USERRA) Qualified Military Service, the beneficiaries 21
of the participant shall be entitled to any benefits (other than benefit 22
accruals relating to the period of qualified military service) as if the 23
participant had resumed employment and then died while employed. 24
25
26
27
28
29
30
31
(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 32
beneficiary up to two times without the approval of the Board or the 33
current designated beneficiary. The retired member need not 34
provide proof of the good health of the designated beneficiary being 35
removed, and the designated beneficiary being removed need not 36
be living. Any increase in liability to the Plan associated with the 37
new designation, as determined by the Fund’s actuary, shall be 38
borne by the retiree. 39
40
41
Section 7. Sec. 16-17. Termination of employment. 42
43
8
1
2
3
4
5
6
7
8
9
10
11
(a) If the employment of a Participant is terminated except by retirement, transfer to
ineligible status or death, the Participant’s interest and rights under this plan shall be
limited to those contained in the following sections of this section.
(b) Any such Participant shall be entitled to elect Option 1 or Option 2, as described
below, except that Option 2 shall be automatically considered as having been elected
by the Participant unless Option 1 is elected before the Participant's normal retirement
date.
Option 1: A cash payment of an amount equal to the aggregate of the
contributions made by the Participant prior to termination of employment with 12
credited interest compounded annually at the rate of three (3) percent per annum 13
from the end of the year of payment to the first of the month in which the cash 14
payment is made. Provided that police officer Participants eligible to withdraw
their contributions from this pension plan may only withdraw their contributions
without interest.
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Option 2: Pension benefits commencing on what otherwise would have been the
normal retirement date of the Participant in an amount equal to the greater of that
which can be provided by the aggregate of the contributions made by the
Participant prior to the termination of employment, with credited interest
compounded annually at the rate of three (3) percent per annum from the end of
the year of payment to the date on which pension benefits commence; or an
amount determined by multiplying the amount of pension to which the Participant
is entitled in accordance with section 16-14(a) or 16-14(b), whichever is
applicable by a percentage determined in accordance with the following schedule
on the basis of the length of Credited service.
Section 8. If any section, clause, sentence or phrase of this ordinance is for
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.
31
32
33
Section 9. All ordinances or parts of ordinances in conflict with the
provisions of this ordinance are repealed.
34
35
Section 10. This Ordinance shall take effect upon adoption. 36
PASSED AND ADOPTED this _____ day of ,
2010.
37
38
39
9
1
2
3
4
ATTEST: APPROVED:
5
6
7
8
9
10
11
12
13
CITY CLERK MAYOR
1st Reading –
2nd Reading –
READ AND APPROVED AS TO FORM COMMISSION VOTE:
Mayor Stoddard: 14
Vice Mayor Newman: 15
Commissioner Palmer: 16
CITY ATTORNEY Commissioner Beasley: 17
Commissioner Harris: 18
19
20
21
22