Ord. No. 30-01-1761ORDINANCE NO. 30 -01 -1761
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, AMENDING THE
SOUTH MIAMI PENSION PLAN AND THE SOUTH MIAMI
POLICE OFFICERS RETIREMENT TRUST FUND TO
CONFORM WITH CHAPTER 185, FLORIDA STATUTES;
AMENDING SECTION 16 -12 OF THE CITY CODE TO
REVISE THE DEFINITION OF FINAL AVERAGE
COMPENSATION FOR POLICE OFFICERS; AMENDING
SECTION 16 -14(A) TO PROVIDE FOR NORMAL
RETIREMENT FOR POLICE AFTER THE COMPLETION OF
TWENTY -FIVE YEARS OF SERVICE REGARDLESS OF
AGE; AMENDING SECTION 16 -14(C) TO REVISE THE
EARLY RETIREMENT PENALTY FOR POLICE TO 3% PER
YEAR; CREATING SECTION 16 -14(F) TO PROVIDE FOR
OPTIONAL ACTUARIALLY REDUCED SURVIVOR
BENEFITS; AMENDING SECTION 16 -16(C) TO PROVIDE
FOR THE DESIGNATION OF MULTIPLE BENEFICIARIES;
AMENDING SECTION 16 -19(A) TO PROVIDE THAT CITY
CONTRIBUTIONS SHALL BE DEPOSITED AT LEAST
QUARTERLY, INCREASING POLICE CONTRIBUTIONS
FROM FIVE PERCENT TO SEVEN AND ONE HALF
PERCENT OF PAY, PROVIDING FOR AN INCREASED
POLICE CONTRIBUTION IF THE TOTAL CONTRIBUTION
FOR THE PLAN EXCEEDS SEVENTEEN PERCENT,
PROVIDING FOR PAYMENT OF A MINIMUM OF
$12,498.00 BY THE SOUTH MIAMI POLICE OFFICERS
RETIREMENT TRUST FUND TO THE SOUTH MIAMI
PENSION PLAN EACH YEAR, AND PROVIDING THAT
POLICE CONTRIBUTIONS SHALL BE DEPOSITED
FOLLOWING EACH PAY PERIOD; AMENDING SECTION
16 -19(C) TO PERMIT ROLLOVERS OF REFUNDED
CONTRIBUTIONS INTO A TAX QUALIFIED PLAN;
AMENDING SECTION 16 -30 TO PROVIDE THAT STATE
CONTRIBUTIONS SHALL BE DEPOSITED INTO THE FUND
IMMEDIATELY UPON RECEIPT; AMENDING SECTION 16-
42(B) TO PROVIDE FOR NORMAL RETIREMENT FOR
POLICE AFTER THE COMPLETION OF TWENTY -FIVE
YEARS OF SERVICE REGARDLESS OF AGE; CREATING
SECTION 16 -42(1) TO PROVIDE A ROLLOVER OPTION;
PROVIDING FOR INCLUSION IN THE CODE; PROVIDING
FOR SEVERABILITY; PROVIDING FOR A REPEALER;
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Florida Legislature has revised the requirements
for police pension funds receiving state monies under Chapter 185,
Florida Statues; and
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WHEREAS, the City of South Miami Police Officers Retirement
Trust Fund receives Chapter 185 monies and is governed by the
recent amendments to Chapter 185.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, THAT:
Part I. Provisions governing the South Miami
Pension Plan.
Section 1: Sec. 16 -12. Definitions.
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 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 (i) the average of the
participant =s five best years of annual
compensation during the last ten years of service
or (ii) the average of the participant =s annual
compensation over the participant =s last three
years, as described above.
Section 2: Sec. 16 -14. Pension benefits and retirement date.
(1) Retirement date. The normal retirement date
with full unreduced pension benefits for a
participant, excluding those participants who
are classified as policemen, shall be the
first day of the calendar month coincident
with or, otherwise, next following the later
of his /her sixtieth birthday and the date on
which he /she has completed ten (10) years of
credited service. The normal retirement date
(the earliest date) a police officer may
retire with full unreduced pension benefits is
attainment ef age €#fty— five — 55) and the
completion of twenty -five (25) years of
credited police service, regardless of age, or
attainment of age sixty (60) and completion of
ten (10) years of credited police service.
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(c) Early retirement.
Table II - Percentages for Early Retirement Date
Years prior to
normal
retirement date Percentage
1 94 97
Z 44 94
3 8-2 91
4 4-6 88
5 g-8 85
(f) Optional forms of Payment for Police Officers.
(1) A police officer 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 officer 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.
A. Life Annuity. A police officer may
elect to receive an annuity payable for
life. This shall be the normal form of
retirement. There shall be no guaranteed
payment in excess of the accumulated
contributions of the member, which
contributions shall be paid to the
member =s estate or designated beneficiary
should the member die prior to receiving
payments equal to said contributions.
B. Joint and Last Survivor Option. A
police officer 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 member's death
and during the lifetime of a
designated survivor. The officer
may elect to receive the payment of
a benefit of seventy -five (75)
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Section 3:
percent, sixty six and two - thirds
(66 2/3) percent, or fifty (50)
percent of the member =s monthly
retirement allowance to be paid at
the member =s death to his or her
joint pensioner designated by the
member at the time of or prior to
retirement, such benefit to be
savable durina the lifetime of the
retirement benefit shall be the
actuarial equivalent of the amount
of the retirement compensation
otherwise payable to the member. A
designated survivor may be any
natural person, but need not be the
spouse of the member. In the event
that the designated survivor dies,
or in the case of a spouse, the
marriage is dissolved, before the
member'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
C. Other Options. The Board may, by
uniform rule, establish any other
optional form of substantially equal
payments, which are the actuarial
equivalent of any other form
provided for in this Plan, or which
optional form of payment is cost
neutral to the Plan.
Sec. 16 -15. Disability benefits.
(a) If a participant becomes totally and
permanently disabled for a six -month period
while in the active employ of the employer, he
shall receive a monthly disability benefit
during the continuation of his disability
commencing as of the first day of the calendar
month following six (6) months of disability
equal to one - twelfth of the yearly amount of
pension to which he is entitled in accordance
with subsection 16- 14(b), reduced in
accordance with Table I. A police officer
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shall be entitled to select payment of a
disability pension using any of the optional
forms of retirement provided under Section 16-
Section 4: Sec. 16 -16. Death of a participant.
(3) 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 only in accordance with the
provisions of the group annuity policy and the
rules and practices of the insurance company,
where applicable. Police officers who are
members of the Plan shall have the right to
name one or more beneficiaries, jointly or
sequentially and to change the beneficiary
designation from time to time in accordance
with Sections 185.161 and 185.341, Florida
Statutes. Upon failure of a police officer to
designate a beneficiary, any benefit shall be
Paid to the deceased officer =s estate.
Section 5: Sec. 16 -19. Contributions.
(a) Each participant shall contribute in each
calendar year towards the cost of his pension
an amount equal to three (3) percent of his
earnings. With the exception of police
officers, no participant shall make any
contributions toward the cost of any past
service pension to which he is entitled under
this plan. The employer shall ar�
contribute the balance of the cost,
actuarially determined, of providing the
benefits of the plan. The City =s contributions
shall be deposited into the Pension Plan on at
least a quarterly basis. Sworn police
personnel, including bargaining unit
employees, that are now members of the
retirement system and any sworn personnel who
join the retirement system in the future
shall, effective October 1, 1993, have their
contribution increased from three (3) percent
to five (5) percent. Should the city =s annual
contribution be actuarially determined to
exceed twelve (12), both the city and the
employees will share equally the amount in
excess of twelve (12) percent for that fiscal
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year. Effective October 1, 1995, the pension
contribution for all general employees,
including those employees that are now members
of the retirement system, shall be increased
from three (3) percent to five (5) percent.
Effective October 1, 2001, sworn police
officers shall contribute seven and one half
percent (7.5 %) of earnings. If the total
police contribution and City contribution
exceeds seventeen percent (17 %) of covered
police payroll for any fiscal year, the excess
over seventeen percent (17 %) shall be divided
in half and shared equally by the City and
police members. Police contributions shall be
deposited in the Pension Plan immediately
after each pay period. Effective October 1,
2001, a minimum of $12,498.00 will be paid
from the South Miami Police Officers
Retirement Trust Fund to the South Miami
Pension Plan each year, regardless of the
growth or diminution in future Chapter 185
funds, in partial exchange for the A25 and
out@ benefit improvement.
(c) Rollover option. A participant eligible to
receive a refund of contributions may elect,
at the time and in the manner prescribed by
the Board of Trustees, to have any portion of
an eligible rollover distribution paid
directly to an eligible retirement plan
specified by the participant in a direct
rollover. For the purposes of this section,
the following words and phrases shall have the
following meanings indicated:
(1) Eligible rollover distribution is any
distribution of all or any portion of the
balance to the credit of the distributee,
except that an eligible rollover
distribution does not include:
A. any distribution that is one of a
series of substantially equal
payments (not less than annually)
made for the life (or life
expectancy) of the distributee, or
the joint lives (or joint life
expectancies) of the distributee and
the distributees designated
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Section 6•
beneficiary, or for a specified
period of ten years or more;
B. any distribution to the extent such
distribution is required under
Section 401(a)(9) of the Internal
Revenue Code; and
C. the portion of any distribution that
is not includable in gross income.
(2) Eligible retirement plan is an individual
retirement account described in Section
408(a) of the Internal Revenue Code, an
individual retirement annuity described
in Section 408(b) of the Internal Revenue
Code, an annuity plan described in
Section 403(a) of the Internal Revenue
Code, or a qualified trust described in
Section 401(a) of the Internal Revenue
Code, that accepts the distributees
eligible rollover distribution. However,
in the case of an eligible rollover
distribution to the surviving spouse, an
eligible retirement plan as an individual
retirement account or individual
retirement annuity.
(3) Distributee includes an employee or
former employee. In addition, the
employee =s or former employee =s surviving
spouse is a distributee with regard to
the interest of the spouse.
(4) Direct rollover is a payment by the Plan
to the eligible retirement plan specified
by the distributee.
Part II. Provisions governing the South Miami
Police Officers Retirement Trust Fund.
Sec. 16 -30. Purpose.
The purpose of this article is to improve the
administration, to comply with the provisions of
Senate Bill No. 14 and implement the provisions of
Chapter 185 of the Florida Statutes, and to prove
means whereby police officers of the City of South
Miami, Florida, may receive benefits from the funds
provided for the purpose by Chapter 185, Acts of
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Florida, 1953. The fund hereby created, being
derived from monies received from the state and not
from a tax levied by the City of South Miami on the
City of South Miami taxpayers, shall be in addition
to any other pension plan of the City of South
Miami, Florida and nothing herein shall be
construed to in any way affect the operation of
benefits of any other pension plan of the City of
South Miami, Florida, that presently exists. Any
monies received or receivable by reason of laws of
Florida Statutes, for the purpose of funding
retirement benefits for police officers shall be
deposited in the City of South Miami Police
Officers= Retirement Trust Fund immediately, and
under no circumstances more than five (5) days
after receipt by the City. Effective October 1,
2001, the City of South Miami Police Officers=
Retirement Trust Fund shall pay to the City of
South Miami Pension Plan an amount equal to the
surplus Chapter monies received for the year 2000
over the 1999 base year set forth in Chapter 185,
Florida Statutes.
Section 7: Sec. 16 -42. Benefits.
(c) Normal retirement date: The normal retirement
date of a participant, including separated
participants with vested rights, shall be the
first day of the calendar year month
coincident with or otherwise next following
his sixtieth b; rt 4 y the completion of
twenty -five (25) years of credited police
service, regardless of age, or attainment of
acre sixty (60) and completion of ten (10)
years of credited police service.
t t
(i) Rollover option. A participant may elect, at
the time and in the manner prescribed by the
Board of Trustees, to have any portion of an
eligible rollover distribution paid directly
to an eligible retirement plan specified by
the participant in a direct rollover. For the
purposes of this section, the following words
and phrases shall have the following meanings
indicated:
(1) Eligible rollover distribution is any
distribution of all or any portion of the
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balance to the credit of the distributee,
except that an eligible rollover
distribution does not include:
A. any distribution that is one of a
series of substantially equal
payments .(not less than annually)
made for the life (or life
expectancy) of the distributee, or
the joint lives (or joint life
expectancies) of the distributee and
the distributee =s designated
beneficiary, or for a specified
period of ten years or more;
B. any distribution to the extent such
distribution is required under
Section 401(a) (9) of the Internal
Revenue Code; and
C. the portion of any distribution that
is not includable in gross income.
(2) Eligible retirement plan is an individual
retirement account described in Section
408(a) of the Internal Revenue Code, an
individual retirement annuity described
in Section 408(b) of the Internal Revenue
Code, an annuity plan described in
Section 403(a) of the Internal Revenue
Code, or a qualified trust described in
Section 401(a) of the Internal Revenue
Code, that accepts the distributee =s
eligible rollover distribution. However,
in the case of an eligible rollover
distribution to the surviving spouse, an
eligible retirement plan as an individual
retirement account or individual
retirement annuity.
(3) Distributee includes an employee or
former employee. In addition, the
employee =s or former employee =s surviving
spouse is a distributee with regard to
the interest of the spouse.
(4) Direct rollover is a payment by the Plan
to the eligible retirement plan specified
by the distributee.
Section 8: Should any section or provision of this Ordinance
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or portion
word be
jurisdicti
affect the
Section 9: Authority
Ordinance.
hereof, any paragraph, any sentence, or
declared by a court of competent
:)n to be invalid, such decision shall not
remainder of this Ordinance.
is hereby granted to codify this
Section 10: This Ordinance shall become effective upon receipt
by the City of the actuarial impact statement
required by state law.
PASSED and ADOPTED this 16th day of October, 2001.
MAYOR
AT/TES T :
CITY CLERK
1st Reading - October 2, 2001
2°d Reading - October 16, 2001
READ AND APPROVED AS TO FORM
CITY ATTORNEY
COMMISSION VOTE:
5 -0
Mayor
Robaina:
Yea
Vice
Mayor Feliu:
Yea
Comm.
Wiscombe:
Yea
Comm.
Russell:
Yea
Comm.
Bethel:
Yea
(as amended)
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