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18N opi 1 ORDINANCE NO. 2 An Ordinance amending the South Miami Pension 3 Plan, providing for an amendment to Section 16- 4 12, Definitions, to comply with current City policy 5 concerning the definitions of annual 6 compensation and final average compensation; 7 and also amending Section 16 -13, Eligibility. 8 9 WHEREAS, the Florida legislature has enacted Ch. 2011 -216, Laws of Florida, which 10 provides, in part, that for service earned under collective bargaining agreements entered into 11 on or after July 1, 2011, compensation for pension purposes may not include in excess of 12 300 hours of overtime, may not include payments for unused accrued sick and vacation leave 13 and may not include any payments for extra duty or special detail work; and 14 WHEREAS, the current pension ordinance includes in the definition of compensation P 15 for pension purposes an unlimited amount of overtime pay, and payments for accrued 16 unused sick and vacation leave, and for extra duty or special detail work; and 17 WHEREAS, the City of South Miami and the Dade County Police Benevolent 18 Association for Police Officers and Sergeants have entered into a new Collective Bargaining 19 Agreement effective October 1, 2011 ( "CBA "); and 20 WHEREAS, Florida law requires that if any provision of a collective bargaining 21 agreement is in conflict with any ordinance over which the chief executive officer has no 22 amendatory power, the chief executive officer shall submit to the appropriate governmental 23 body having amendatory power a proposed amendment to such ordinance; and 24 WHEREAS, the City Mayor and City Commission have received and reviewed an 25 actuarial impact statement related to these changes and attached as such; and 26 WHEREAS, the City Commission deems it to be in the public interest to provide these 27 changes to the pension plan and to the pension plan for its police officer employees; 2 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section 1: That Chapter 16 Article II, Section 16 -12, " "Definitions" of the City of South 4 Miami Code of Ordinances is hereby amended as follows: 5 Definitions. 6� 7 Annual compensation shall mean Fegula r base wages and salaries, including 8 hazardous pay, overtime pay, vacation, sick leave, holiday pay, clothing allowance, 9 educational incentive and extra duty pay. However, for compensation earned by police 10 officers or sergeants on or after October 1 2011, the maximum amount of overtime hours 11 that may be used to determine annual compensation for calculating retirement benefits for 12 any one (1) fiscal year shall not exceed 300 hours. Additionally, for police officers and 13 sergeants, payments for accrued unused sick leave or accrued unused annual leave earned 14 on or after October 1, 2011, and payments for extra duty or special detail work for a second 15 party employer, performed on or after October 1, 2011, shall not be considered a part of their 16 annual compensation for purposes of calculating their retirement benefits. In addition. shift 17 differential pay, assignment pay and bonuses for police officers and sergeants shall not be 18 considered a part of their annual compensation for purposes of calculating their retirement 19 benefits. Any additional or other forms of pay not specifically mentioned hereinabove, for any 20 and all emolovees, shall be excluded from the definition of annual compensation. 21 22 Final average compensation shall mean the participant's annual compensation, 23 as determined by the employer, acting in a uniform and nondiscriminatory manner. For all 24 members other than police officers and police sergeants, final average compensation shall be 25 averaged over the last three -year period ending on the participant's retirement date, date of 26 disability, date of termination of employment or the date of termination of the plan, whichever 27 is applicable. For police officers and sergeants, final average compensation shall be the best 28 five (5) year period of the police officer or sergeant's career with the City of South Miami 29 ending on the police officer or sergeant's retirement date date of disability, date of 30 termination of employment, or date of termination of the plan, whichever is applicable. The 31 best _five _(5) years is defined as the highest five (5), twenty -six (26) consecutive pay periods 32 within a police officer or sergeant's career and such consecutive year periods shall not 33 overlap one another. mean the greater G : 34 ` The average of + he P-artiG best (1 35 pant's —five (5) years of a,-„ -,tea 36 37 (2) The average of the Partieipant's- "e annual— c-ernpensat,on —sye;— 38 . 39 2 Section 2: That Chapter 16 Article II, Section 16 -13, " "Eligibility" of the City of South 3 Miami Code of Ordinances is hereby amended as follows: 4 Eligibility. 5 (a) Each employee employed by the employer on October 1, 1965, shall be 6 a participant on the first participation date on which he has completed two (2) years of 7 credited service and has attained his twenty -fifth birthday. 8 9 (b) Each employee who becomes an employee subsequent to October 1, 10 1973, shall be a participant on the first participation date on which he /she has completed six 11 (6) months of credited service and has obtained his /her twentieth birthday. For all current 12 employees as of October 1, 1995, each fiscal year there will be a window for joining the 13 retirement system; i.e. October 1 through October 31. 14 15 (c) It shall become mandatory for all employees hired on or after October 1, 16 1995, to join the pension plan after completion of six (6) months of employment by the city. 17 18 (d) Each employee classified as police officer or sergeant shall enter the 19 pension plan immediately upon being hired as a sworn law enforcement officer. become 20 eligible te partiGipate in this plan upon the date of empleymeRt previded the police effiGe 21 began participation iR this plan when fiFst eligible as prGvided in subseGtiens (a) and (b) o 22 this section. 23 24 Section 3: Codification. The provisions of this ordinance shall become and be made 25 part of the Code of Ordinances of the City of South Miami as amended; that the sections of 26 this ordinance may be renumbered or re- lettered to accomplish such intention; and that the 27 word 'ordinance" may be changed to "section" or other appropriate word. 28 29 Section 4. Severability. If any section, clause, sentence, or phrase of this ordinance 30 is for any reason held invalid or unconstitutional by a court of competent jurisdiction, this 31 holding shall not affect the validity of the remaining portions of this ordinance. 32 33 Section 5. Ordinances in Conflict. All ordinances or parts of ordinances and all 34 section and parts of sections of ordinances in direct conflict herewith are hereby repealed. 35 However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances, 36 that give the appearance of being in conflict when the two ordinances can be harmonized or 37 when only a portion of the ordinance in conflict needs to be repealed to harmonize the 38 ordinances. If the ordinance in conflict can be harmonized by amending its.terms, it is hereby 39 amended to harmonize the two ordinances. Therefore, only that portion that needs to be 40 repealed to harmonize the two ordinances shall be repealed. 41 42 Section 6. Effective Date. This ordinance shall become effective upon enactment. 43 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 35 36 37 PASSED AND ENACTED this ATTEST: CITY CLERK 15f Reading 2nd Reading day of 2011. APPROVED: MAYOR READ AND APPROVED AS TO FORM: LANGUAGE, LEGALITY AND EXECUTION THEREOF CITY ATTORNEY COMMISSION VOTE: Mayor Stoddard: Vice Mayor Newman: Commissioner Beasley: Commissioner Palmer: Commissioner Harris: PADocunnents\201 1\1 1-027\Ordinances\Ordinance re New CBA Changes Final Draft v.11.doc