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ORDINANCE NO. _____ _
An Ordinance amending the South Miami
Pension Plan, providing for an amendment to
Section 16-12, Definitions, by adding the
definition of "Actuarial Equivalent" to assure
that optional forms of payment are priced
fairly for both members and the system; and
Amending Section 16-14, Pension Benefits
and Retirement Dates; providing for a
repealer, containing a severability provision;
containing an effective date.
WHEREAS, the City of South Miami Pension Plan provides for retirement
benefits to its members; and
WHEREAS, the Actuary for the City of South Miami Pension Plan has
recommended the adoption of a definition of "actuarial equivalent" to assure that
optional forms of payment are priced fairly for both members and the Plan;
WHEREAS, the City Commission has received and reviewed an actuarial impact
statement related to such amendments.
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:
, ............................................................................. .
***
Actuarial Equivalent -Actuarial Equivalent -means that:
Any benefit payable under the terms of this system other
than the normal form of benefit shall have the same actuarial
present value on the date the payment commences as the
normal form of benefit. In computing benefits to which a
participant may be entitled upon benefit commencement,
upon the exercise of optional forms of retirement income, for
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purposes of "actuarial equivalent" the actuary shall use the
following assumptions:
Interest -Seven percent (7.0%) per annum;
Mortality:
Mortality rates from the RP 2000 Combined Healthy Mortality
Table based upon a fixed blend of 50% male mortality rates -
50% female mortality rates projected by Scale AA to the fiscal
year commencement date that includes the benefit
commencement date for healthy General Employees and
beneficiaries, rates from the RP 2000 Combined Healthy
Mortality Table with Blue Collar Adjustment based upon a
fixed blend of 50% male mortality rates -50% female mortality
rates projected by Scale AA to the fiscal year commencement
date that includes the benefit commencement date for healthy
Police Officers. For impaired participants, rates from the RP
2000 Disabled Mortality Table based upon a fixed blend of
50% male mortality rates -50% female mortality rates
projected by Scale AA to the fiscal year commencement date
that includes the benefit commencement date.
***
Section 2: That Chapter 16 Article II, Section 16-14, "Pension Benefits and
retirement dates" of the City of South Miami Code of Ordinances is hereby amended as
follows:
31 (a) Retirement date. The normal retirement date with full unreduced pension
benefits for a participant, shall be as follows: 32
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(1) General employees. Shall be the first day of the
calendar month coincident with or, otherwise, next following
the later of the participant's sixtieth birthday and the date on
which the participant has completed ten (10) years of
credited service. General employees participating in the plan
as of September 30, 2011, will remain eligible to retire at the
age of fifty-five (55) and the completion of ten (10) years of
credited service and obtain their accrued benefits earned
through September 30, 2011, at such time. Benefit accruals
earned on or after October 1, 2011, including increases due
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to increases in final average compensation, will may be paid
at the new normal retirement date of attainment of age sixty
(60) and completion of ten (10) years of credited service.
General employees who were participating in the Plan on
September 30, 2011 may receive their benefits accrued after
September 30, 2011 upon retirement on the first day of any
month following retirement upon attaining age 55 and 10
years of credited service reduced 1/15th for each year benefit
commencement precedes the later of age 60 and 10 years
of credited service. Or, in the alternative, those general
employees who were participating in the Plan as of
September 30, 2011 may defer commencement of their
benefit accrued after September 30, 2011 until attainment of
age 60 and 10 years of credited service. Under no
circumstance will a general employee member who was
participating in the Plan on September 30, 2011 be allowed
to receive their 55 and 10 distribution and then keep
working.
Early retirement.
(1) A general employee participant may elect an early
retirement date which may be the first day of any calendar
month coincident with, or subsequent to the participant's
fifty-fifth (55th ) birthday and completion of ten (10) years of
credited service. The pension benefits payable to any such
participant on early retirement date shall be equal to an
actuarial equivalent, determined in accordance with the table
below, to the amount of pension to which is entitled up to
early retirement date in accordance with subsection (b).
Table-General Employee Participant-
Percentages for early retirement date
Years prior to normal Percentage
retirement date
1 93.33
2 86.67
3 80.00
4 73.33
5 66.67
***
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1
2 Section 3. Codification. The provisions of this ordinance shall become and be
3 made part of the Code of Ordinances of the City of South Miami as amended; that the
4 sections of this ordinance may be renumbered or re-Iettered to accomplish such
5 intention; and that the word "ordinance" may be changed to "section" or other
6 appropriate word.
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8 Section 4. Severability. If any section, clause, sentence, or phrase of this
9 ordinance is for any reason held invalid or unconstitutional by a court of competent
10 jurisdiction, this holding shall not affect the validity of the remaining portions of this
11 ordinance.
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13 Section 5. Ordinances in Conflict. All ordinances or parts of ordinances and
14 all section and parts of sections of ordinances in direct conflict herewith are hereby
15 repealed. However, it is not the intent of this section to repeal entire ordinances, or
16 parts of ordinances, that give the appearance of being in conflict when the two
17 ordinances can be harmonized or when only a portion of the ordinance in conflict needs
18 to be repealed to harmonize the ordinances. If the ordinance in conflict can be
19 harmonized by amending its terms, it is hereby amended to harmonize the two
20 ordinances. Therefore, only that portion that needs to be repealed to harmonize the two
21 ordinances shall be repealed.
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23 Section 6. Effective Date. This ordinance shall become effective upon
24 enactment.
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26 PASSED AND ENACTED this __ day of _____ , 2013.
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28 ATTEST: APPROVED:
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32 CITY CLERK MAYOR
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35 1 st Reading
36 2nd Reading
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38 READ AND APPROVED AS TO FORM: COMMISSION VOTE:
39 LANGUAGE, LEGALITY AND Mayor Stoddard:
40 EXECUTION THEREOF Vice Mayor Liebman:
41 Commissioner Newman:
42 Commissioner Harris:
43 CITY ATTORNEY Commissioner Welsh:
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46 P:\Documents\2011\11-035\Ordinance re Adding Definition of Actuarial Equivalent -[Early Retirement GRS].vA.doc