131 ORDINANCE NO. ____ _ 13
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
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;
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NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY
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
Miami Code of Ordinances is hereby amended as follows:
Definitions.
*.*
Annual compensation shall mean regular base wages and salaries, including
hazardous pay, overtime pay, vacation, sick leave, holiday pay, clothing allowance,
educational incentive and extra duty pay. However. for compensation eamed by police
officers or sergeants on or after October 1. 2011, the maximum amount of overtime hours
that may be used to determine annual compensation for calculating retirement benefits for
anyone (1) fiscal year shall not exceed 300 hours. Additionally. for police officers and
sergeants. payments for accrued unused sick leave or accrued unused annual leave eamed
on or after October 1. 2011. and payments for extra duty or special detail work for a second
party employer. performed on or after October 1. 2011. shall not be considered a part of their
annual compensation for purposes of calculating their retirement benefits. In addition. shift
differential pay. assignment pay and bonuses for police officers and sergeants shall not be
considered a part of their annual compensation for purposes of calculating their retirement
benefits. Any additional or other forms of pay not specifically mentioned hereinabove, for any
and all employees. shall be excluded from the definition of annual compensation.
•••
Final average compensation shall mean the participant's annual compensation,
as determined by the employer, acting in a uniform and nondiscriminatory manner. For all
members other than police officers and police sergeants. final average compensation shall be
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 and sergeants, final average compensation shall be the best
five (5) year period of the police officer or sergeant's career with the City of South Miami
ending on the police officer or sergeant's retirement date, date of disability. date of
termination of employment, or date of termination of the plan. whichever is applicable. The
best five (5) years is defined as the highest five (5). twenty-six (26) consecutive pay periods
within a police officer or sergeant's career and such consecutive year periods shall not
overlap one another. meafI 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
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(2) The average of the Partioipant's annual oompensation over the
Partioipant's last three (3) years, as desoribed above.
* **
Section 2: That Chapter 16 Article II, Section 16-13, ''''Eligibility'' of the City of South
Miami Code of Ordinances is hereby amended as follows:
Eligibility.
(a) Each employee employed by the employer on October 1, 1965, shall be
a participant on the first participation date on which he has completed two (2) years of
credited service and has attained his twenty-fifth birthday.
12 (b) Each employee who becomes an employee subsequent to October 1,
13 1973, shall be a participant on the first participation date on which he/she has completed six
14 (6) months of credited service and has obtained his/her twentieth birthday. For all current
15 employees as of October 1, 1995, each fiscal year there will be a window for joining the
16 retirement system; i.e. October 1 through October 31.
17
18 (c) It shall become mandatory for all employees hired on or after October 1,
19 1995, to join the pension plan after completion of six (6) months of employment by the city.
20
21 (d) Employees who are hired on or after October 1, 2011, eaffi employee
22 and are classified as police officer or sergeant, shall enter the pension plan immediately upon
23 being hired as a sworn law enforcement officer. beoome eligible to partioipate in this plan
24 upon the date of employment provided the polioe offioer began partioipation in this plan when
25 first eligible as provided in subseotions (a) and (b) of this seotion.
26
27 Section 3: Codification. The provisions of this ordinance shall become and be made
28 part of the Code of Ordinances of the City of South Miami as amended; that the sections of
29 this ordinance may be renumbered or re-Iettered to accomplish such intention; and that the
30 word "ordinance" may be changed to "section" or other appropriate word.
31
32 Section 4. Severability. If any section, clause, sentence, or phrase of this ordinance
33 is for any reason held invalid or unconstitutional by a court of competent jurisdiction, this
34 holding shall not affect the validity of the remaining portions of this ordinance.
35
36 Section 5. Ordinances in Conflict. All ordinances or parts of ordinances and all
37 section and parts of sections of ordinances in direct conflict herewith are hereby repealed.
38 However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances,
39 that give the appearance of being in conflict when the two ordinances can be harmonized or
40 when only a portion of the ordinance in conflict needs to be repealed to harmonize the
Page 3 of 4
1 ordinances. If the ordinance in conflict can be harmonized by amending its terms, it is hereby
2 amended to harmonize the two ordinances. Therefore, only that portion that needs to be
3 repealed to harmonize the two ordinances shall be repealed.
4
5 Section 6. Effective Date. This ordinance shall become effective upon enactment.
6
7 PASSED AND ENACTED this __ dayof _____ , 2011.
8
9
10 ATTEST:
11
12
13
14 CITY CLERK
15
16
17 1 st Reading
18 2nd Reading
19
20 READ AND APPROVED AS TO FORM:
21 LANGUAGE, LEGALITY AND
22 EXECUTION THEREOF
23
24
25 CITY ATTORNEY
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APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Beasley:
Commissioner Palmer:
Commissioner Harris:
39 P:IDocuments\2011111·02710rdinance re New CBA Changes Final Draft v.13 [w-GRS Change].doc
Page 4 of 4
GRS Gabriel Roeder Smith & Company
COI)Sufr,nllts & Acruarics
September 12, 2011
Ms. Dixie Martinez
Plan Administrator
The Resource Centers, LLC
4360 Northlake Blvd. Suite 206
Palm Beach Gardens, Florida 33410
Re:' South Miami Pension Plan
Actuarial Impact Statement
Dear Dixie:
One East Bro\vard Blvd.
Suire 505
h. L.udcrdnlc, FL 33301·1804
9S4,527,161(, phont'
954.525.0083 fax
www.gabridrocc!cr.com
As requested, we have performed an actuarial review ofthe attached proposed Ordinance.
Based upon our review, we understand the proposed Ordinance:
1. Limits the amount of overtime included in pensionable compensation earned after
September 30, 2011 to 300 hours per fiscal year for police officers and sergeants.
2. Excludes payments for accrued unused sick leave or accrued unused vacation leave
earned after September 30, 2011 from pensionable compensation for police officers
and sergeants.
3. Excludes payments for extra duty or special detail work for a second employer
performed after September 30, 2011 from pensionable compensation for police
officers and sergeants.
4. Excludes shift differential pay, assignment pay, bonuses and other additional form of
pay from pensionable compensation for police officers and sergeants.
5. Defines final average compensation as the average of the best five (5) years for
police officers and sergeants.
6. Provides for immediate participation upon employment for police officers and
sergeants hired after September 30, 2011.
7. Provides for codification.
8. Provides for severability.
9. Repeals all ordinances or parts of ordinances in direct conflict herewith.
10. Provides for an effective date.
In our opinion, based upon the actuarial assumptions and methods employed in the
October 1,2010 Actuarial Valuation and based upon historical salary data, the proposed
Ordinance is a no cost Ordinance under State funding requirements. In fact, the proposed
Ordinance may be expected to reduce future costs.
Ms. Dixie Martinez
September 12, 2011
Page Two
Please forward a copy of the Ordinance upon passage at second reading to update our
records.
If you should have any question conceming the above or if we may be offurther assistance
with this matter, please do not hesitate to contact us.
Sincerest regards,
~.~.U~
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosures
cc: Javier Banos, Esq.
Ronald Cohen, Esq.
Mr. Alfredo Riverol
Gabriel Roeder Smith & Company
ORDINANCE NO. _____ _
An Ordinance 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 and final average compensation;
and also amending Section 16-13, Eligibility.
WHEREAS, the Florida legislature has enacted Ch. 2011-216, Laws of Florida, which
provides, in part, that for service earned under collective bargaining agreements entered into
on or after July 1, 2011, compensation for pension purposes may not include in excess of
300 hours of overtime, may not include payments for unused accrued sick and vacation leave
and may not include any payments for extra duty or special detail work; and
WHEREAS, the current pension ordinance includes in the definition of compensation
for pension purposes an unlimited amount of overtime pay, and payments for accrued
unused sick and vacation leave, and for extra duty or special detail work; and
WHEREAS, the City of South Miami and the Dade County Police Benevolent
Association for Police Officers and Sergeants have entered into a new Collective Bargaining
Agreement effective October 1, 2011 ("CBA"); and
WHEREAS, Florida law requires that if any provision of a collective bargaining
agreement is in conflict with any ordinance over which the chief executive officer has no
amendatory power, the chief executive officer shall submit to the appropriate governmental
body having amendatory power a proposed amendment to such ordinance; and
WHEREAS, the City Mayor and City Commission have received and reviewed an
actuarial impact statement related to these changes 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 HEREBY ORDAINED BY THE MAYOR AND CITY
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
Miami Code of Ordinances is hereby amended as follows:
Definitions.
***
Annual compensation shall mean regular base wages and salaries, including
hazardous pay, overtime pay, vacation, sick leave, holiday pay, clothing allowance,
educational incentive and extra duty pay. However, for compensation eamed by police
officers or sergeants on or after October 1, 2011, the maximum amount of overtime hours
that may be used to determine annual compensation for calculating retirement benefits for
anyone (1) fiscal year shall not exceed 300 hours. Additionally, for police officers and
sergeants, payments for accrued unused sick leave or accrued unused annual leave eamed
on or after October 1, 2011, and payments for extra duty or special detail work for a second
party employer, performed on or after October 1, 2011, shall not be considered a part of their
annual compensation for purposes of calculating their retirement benefits. In addition, shift
differential pay, assignment pay and bonuses for police officers and sergeants shall not be
considered a part of their annual compensation for purposes of calculating their retirement
benefits. Any additional or other forms of pay not specifically mentioned hereinabove, for any
and all employees, shall be excluded from the definition of annual compensation .
...
Final average compensation shall mean the participant's annual compensation,
as determined by the employer, acting in a uniform and nondiscriminatory manner. For all
members other than police officers and police sergeants, final average compensation shall be
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 and sergeants, final average compensation shall be the best
five (5) year period of the police officer or sergeant's career with the City of South Miami
ending on the police officer or sergeant's retirement date, date of disability, date of
termination of employment, or date of termination of the plan, whichever is applicable. The
best five (5) years is defined as the highest five (5), twenty-six (26) consecutive pay periods
within a police officer or sergeant's career and such consecutive year periods shall not
overlap one another. f1'leaf} the greater of:
(1) The average of the Participant's five (5) best years of annual
compensation during the last ten (10) years of seF'Jice or
(2) The average of the Participant's annual compensation over the
Participant's last three (3) years, as described above.
* **
Section 2: That Chapter 16 Article II, Section 16-13, ""Eligibility" of the City of South
Miami Code of Ordinances is hereby amended as follows:
Eligibility.
(a) Each employee employed by the employer on October 1, 1965, shall be
a participant on the first participation date on which he has completed two (2) years of
credited service and has attained his twenty-fifth birthday.
(b) Each employee who becomes an employee subsequent to October 1,
1973, shall be a participant on the first participation date on which he/she has completed six
(6) months of credited service and has obtained his/her twentieth birthday. For all current
employees as of October 1, 1995, each fiscal year there will be a window for joining the
retirement system; i.e. October 1 through October 31.
(c) It shall become mandatory for all employees hired on or after October 1,
1995, to join the pension plan after completion of six (6) months of employment by the city.
(d) Employees who are hired on or after October 1, 2011, €aB4 employee
and are classified as police officer or sergeant shall enter the pension plan immediately upon
being hired as a sworn law enforcement officer. become eligible to participate in this plan
upon the date of employment provided the police officer began participation in this plan when
first eligible as provided in subsections (a) and (b) of this seotion.
Section 3: Codification. The provisions of this ordinance shall become and be made
part of the Code of Ordinances of the City of South Miami as amended; that the sections of
this ordinance may be renumbered or re-leUered to accomplish such intention; and that the
word "ordinance" may be changed to "section" or other appropriate word.
Section 4. Severability. If any section, clause, sentence, or phrase of this ordinance
is for any reason held invalid or unconstitutional by a court of competent jurisdiction, this
holding shall not affect the validity of the rernaining portions of this ordinance.
Section 5. Ordinances in Conflict. All ordinances or parts of ordinances and all
section and parts of sections of ordinances in direct conflict herewith are hereby repealed.
However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances,
that give the appearance of being in conflict when the two ordinances can be harrnonized or
when only a portion of the ordinance in conflict needs to be repealed to harmonize the
ordinances. If the ordinance in conflict can be harmonized by amending its terms, it is hereby
amended to harmonize the two ordinances. Therefore, only that portion that needs to be
repealed to harmonize the two ordinances shall be repealed.
Section 6. Effective Date. This ordinance shall become effective upon enactment.
PASSED AND ENACTED this __ day of _____ , 2011.
ATTEST:
CITY CLERK
1st Reading
2nd Reading
. READ AND APPROVED AS TO FORM:
LANGUAGE, LEGALITY AND
EXECUTION THEREOF
CITY ATTORNEY
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Beasley:
Commissioner Palmer:
Commissioner Harris:
P:\Documents\2011\11~027\Ordinance re New CSA Changes Final Draft v.13 [w-GRS Change].doc
MIAMI DAILY BUSINESS REVIEW
Published Daily except Saturday, Sunday and
Lega! Holidays
Miami, Miami"Dade County, Florida
STATE OF FLORIDA
COUNTY OF MIAMI·DADE:
Before the undersigned authority personally appeared
V. PEREZ, who on oath says that he or she is the
LEGAL CLERK, Legal Notices of the Miami Daily Business
Review flk/a Miami Review, a daily (except Saturday, Sunday
and Legal Holidays) newspaper, published at Miami in Miami-Dade
County, Florida; that the attached copy of advertisement,
being a Legal Advertisement of Notice in the matter of
CITY OF SOUTH MIAMI
PUBLIC HEARING -SEPTEMBER 20, 2011
in the XXXX Court,
was publlshed in said newspaper in the issues of
09/09/2011
Affiant further says that the said Miami Daily Business
Review is a newspaper published at Miami in said Miami-Dade
County, Florida and that the said newspaper has
heretofore been continuously published in said Miami-Dade County,
Florida, each day (except Saturday, Sunday and Legal Holidays)
and has been entered as second class mail matter at the post
office in Miami in said Miami-Dade County, Florida, for a
period of one year next preceding the first publication of the
attached copy of advertisement; and affiant further says that he or
she has neither paid nor promised any person, firm or corporation
any discount, rebate, commission or refund for the purpose
of securing this advertisement for publlcation in the said
newspaper.)
d· "'
Sworn to and subscribed before me this
09 day of SEPTEMBE~.D. 2011
0~d-<J !
(SEAL)
V. PEREZ personally known to me
THE MIAMI HERALD I MiamiHerald.com SE SUNDAY, SEPTEMBER 11, 2011 I 39SE
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CITY OF SOUTH MIAMI
COURTESY NOTICE
NOTICE IS HEREBY given that the City Commission
of the City of South Miami, Florida will conduct a
Public Hearing at its regular City Commission meeting
scheduled for Tuesday. September 20. 2011. beginning
at 7:30 p.m., in the City Commission Chambers, 6130
Sunset Drive, to consider the following items:
An Ordinance 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 and final average
compensation, Section 16-13 "eligibility."
ALL interested parties are invited to attend
and will be heard,
For further information, please contact the
City Clerk's Office at: 305-663-6340.
Maria M. Menendez, CMC
City Clerk
Pursuant to F\onda$taMes 286.0105, the City heTebJ' advises the public Ihat II a
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