7To: The Honorable Mayor & Members of the City Commission
Via: Hector Mirabile, PhD, City Manager
From: Keith Ng, Project Manager
Date: June 15, 2011 Agenda Item No.:
A Resolution of the Mayor and City Commission of the City of South
Subject: Miami, Florida, authorizing a transfer of $3,441.00 from account number
001 - 1770 -519 -2210, Pension Plan Contribution, to account number, 001-
1770 -519 -2220, ICMA Deferred Compensation.
Keith A. Ng, CFM, Operations Manager Engineering & Construction,
Public Works Department, has opted out of the City's pension program in
favor of the ICMA Deferred Compensation Contribution program. The
budgeted pension contribution for him as a department head was allocated
Background: and is no longer required due to Mr. Ng's election to opt out of the
pension as per Ordinance 38 -10 -2063, which provided a one -time opt -out
from the City of South Miami Pension. Therefore his budget pension
contribution funds are being transferred to account number 001 -1770-
519 -2220, ICMA Deferred Compensation Contribution for $3,441.00.
Transfer Amount: $3,441.00
Transfer From: Account number 001- 1770 -519 -2210, Pension Plan Contribution, with a
current balance of $23,547.03.
Transfer To: Account number 001 - 1770 -519 -2220 for $ 3,444.00 ICMA Differed
Compensation, with a current balance of $0.
I RESOLUTION NO.
2 A Resolution of the Mayor and City Commission of the City
3 of South Miami, Florida, authorizing a transfer of $3,441.00
4 from account number 001 - 1770 - 519 -2210, Pension Plan
5 Contribution, to account number, 001- 1770 - 519 -2220, ICMA
6 Deferred Compensation.
7 WHEREAS, Keith A. Ng, CFM, Operations Manager Engineering &
8 Construction, Public Works Department, has opted out of the City's pension
9 program in favor of the ICMA Deferred Compensation Contribution program; and,
10 WHEREAS, the budgeted pension contribution for him as a department
11 head was allocated and is no longer required due to Mr. Ng's election to opt out
12 of the pension as per Ordinance 38 -10 -2063, which provided a one -time opt -out
13 from the City of South Miami Pension. Therefore his budget pension contribution
14 funds are being transferred to account number 001 - 1770 - 519 -2220, ICMA
15 Deferred Compensation Contribution for $3,441.00; and,
16 WHEREAS, the Mayor and City Commission desire to transfer sufficient
17 funds from account number 001 - 1770 - 519 -2210, Pension Plan Contribution, with
18 a current balance of $23,547.03, to account number 001 - 1770- 519 -2220 for
19 $3,441.00 ICMA Deferred Compensation, with a current balance of $0.
20 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
21 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA that;
22 Section I. The finance department of the City is hereby instructed to
23 transfer $3,441.00 from account number 001 - 1770 - 519 -2210, Pension Plan
24 Contribution to account number. 001 - 1770 - 519 -2220, ICMA Deferred
25 Compensation Contribution.
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Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this_ day of 2011
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM
CITY ATTORNEY
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Beasley:
Commissioner Palmer:
Commissioner Harris:
Pay�!m�ent informaffoq 5 x�.,cax, z � ��?'
a hand
Pre Enoumbrenooa
tk M
ORDINANCE NO. 38-10-2063
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 1644(f)(11(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 16471bi 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 rece €pt of state premium tax revenues; and
WHEREAS, an amendment to the City code is necessary to permit such new
obligations and conditions; and
Page 1 of 9
Ord No. 38- 10-2063
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.
Page 2 of 9
Ord. No. 38 -10 -2063
Employee shall mean any person employed full -time by the Employer on a
regular, permanent basis, Elected officials and • any —versa -whew
f$r five{a} menths -e less is any ealendaearshali be excluded. The city
manager, city clerk, and any persons defined as Department Heads
within this section, shall be included within the definition of Employee,
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
nondiscriminatory manner averaged over the last three -year period ending
on the Participants 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 (5) 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 Participants last three (3) years, as described above.
Participation date shall mean date of partic�ation in this [?Ian by a FuII
time employee.
Page 3 of 9
Ord. No. 38 -10 -2063
Section 33. 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 fonris 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
Page 4 of 9
Ord. No. 38- 10-2063
Section 4. Section 16 -33 of the South Miami Code of Ordinances is hereby
amended to read as follows:
Sec. 16 -33. Membership of board; term; officers; meetings; quorum.
(a) There is hereby created a seven - member board of trustees of the
police officers' retirement trust fund, which board shall consist of three
Addltlonaily the mayor and commission shall appoint three.,residents
Page 5 of 9
i 38-10-2063
e^
_ a�_
tru^ —ter ..a wry year•- terra. The board shall annually elect from its
membershlp 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.
#ree_MEgur_(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.
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 F8atwenty:five (25} .percent of the
assets in intemaiional securities.
Page 6 of 9
Ord. No. 38 -10 -2063
Section 6. Section 1642 of the South Miami Code of Ordinances is hereby
amended to read as follows:
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:
(t7 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' monles 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
(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
dp%innation form provided by the board as a standard form under
Section 7. Sec. 16 -17. Termination of employment.
Page 7 of 9
Ord. No. 38 -10 -2063
(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
pay Ment-+s- rnade. Provided that police officer Participants eligible to withdraw
their contributions from this pension plan may only withdraw their contributions
without interest.
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 and 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.
Section 9. All ordinances or parts of ordinances in conflict with the
provisions of this ordinance are repeated.
Section 10. This Ordinance shall take effect upon adoption.
PASSED AND ADOPTED this 19'" day of October, 2010.
Page 8 of 9
Ord. No. 38 -10- -2063
ATTEST:
ITY Cl��
1'c Reading — 7/20/10
2nd Reading - 10/5/10; 10/19/10
READ AND OVED AS TO ORM , COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Palmer:
C ATTORNEY Commissioner Beasley:
Commissioner Harris:
Page 9 of 9
6 -0
Yea
Yea
Yea
Yea
Yea