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Ord. No. 22-95-1595ORDINANCE NO. 22-95 -1995 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA AMENDING SECTION 16 -12 PROVIDING DEFINITIONS OF EXPLANATION OF AVERAGE COMPENSATION FOR GENERAL EMPLOYEES; AMENDING SECTION 16 -13 MAKING IT MANDATORY FOR ALL NEW GENERAL EMPLOYEES TO PARTICIPATE IN THE PENSION PLAN; AMENDING SECTION 16 -14 PROVIDING ALL GENERAL EMPLOYEES WITH INCREASE IN PENSION BENEFIT ACCRUAL RATE AND CHANGE IN RETIREMENT DATE; AMENDING SECTION 16 -17 (B) PROVIDING ALL GENERAL EMPLOYEES WITH 100% VESTING UPON COMPLETION OF TEN YEARS SERVICE; AMENDING SECTION 16 -19 (A) PROVIDING THAT ALL GENERAL EMPLOYEES INCREASE THEIR CONTRIBUTIONS TO THE PENSION SYSTEM; PROVIDING FOR SEVERABILITY; REPEALING ALL PRIOR LEGISLATION IN CONFLICT HEREWITH; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Manager has reached collective bargaining agreement with the Police Benevolent Association and the American Federation of State, County and Municipal Employees Union; and WHEREAS, the agreement provides for changes in the Pension plan for Police and General Employees; and WHEREAS, The City's Pension Board has reviewed the contracts and agreed that the following changes, recommended by the City Manager, be made to the pension ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA: Section 1. That section 16 -12 of Chapter 16 of the Code of Ordinance is hereby amended as follows: 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 3 year period ending on the participant's retirement date, date of disability, date of termination of employment or date of termination of plan, whichever is applicable. Section 2. That section 16 -13 (b) of the Code of Ordinances is hereby amended as follows: SEC. 16 -13 ELIGIBILITY (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 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. It Section 3. That Section 16- 14.(a), and 16 -14 (b) (1) of the Code of Ordinances is hereby amended as follows: SEC 16 -14 PENSION BENEFITS AND RETIREMENT DATE (a) 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 (60th) birthday and the date on which he /she has completed ten years of credited service. The normal retirement date (the earliest date) a Police officer may retire with full unreduced pension benefits is attainment of age 55 and completion of 25 years of credited Police service or attainment of age 60 and completion of 10 years of credited Police service. (b) AMOUNT OF PENSION The yearly amount of pension payable to a participant shall be equal to (a) as to participant retiring prior to October 1, 1970, a basic benefit commencing on his /her retirement date determined by multiplying one and six - tenths percent (1.6 %) of his /her final average compensation by the number of his completed years of credited service at his /her retirement date excluding the first two (2) years of such service and any additional service completed by him /her prior to his /her twenty -fifth birthday, and (b) as to a participant retiring on and after October 1, 1970, the sum of (1) and (2). (1) BASIC BENEFITS: A basic benefit commencing of employee's normal retirement date determined by multiplying one and six tenths percent (1.6 %) of employee's final average compensation by the number of his /or her completed years of credited service at his or her retirement date excluding the first two (2) years of such service and any additional service completed by the employee prior to his /or her twenty -fifth birthday. However, as to those participants who became an employee subsequent to October 1, 1973, there shall only be excluded the first six (6) months of such service and any additional service completed by him /or her prior to his /or her twentieth birthday and /or additional service completed by the employee prior to the time the said employee became a participant. For sworn Police Personnel, effective October 1, 1993, the pension benefit accrual rate (multiplier) shall be increased from 1.6 to 1.8, for services performed in 1993 -94 fiscal year; effective October 1, 1994, the pension benefit accrual rate (multiplier) shall be increased from 1.8 to 1.9, services performed in 1994 -95 fiscal vear: effective on services performed in the 1997 -98 fiscal year and thereafter. The multiplier factor to be applied at the time of retirement of each bargaining unit employee shall be applied as prescribed in the 1992 -93 and 1995 -96 Collective Bargaining Agreements. Effective October 1, 1995 the pension benefit accrual rate (multinlierl fnr narfirinani-e_ csrrl„A;nn rza Section 4. That Section 16 -17 (b) of the Code of Ordinances is hereby amended as follows: SEC. 16 -17 TERMINATION OF EMPLOYMENT (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 participant prior to his termination of employment with credited interest compounded annually at the rate of three percent (3 %) per annum from the end of the year of payment to the first of the month in which the cash payment is made. Sworn Police eligible to withdraw their contributions from the retirement system 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 (a) that which can be provided by the aggregate of the contributions made by the participant prior to the termination of his employment, with credited interest compounded annually at the rate of three per cent (30) per annum from the end of the year of payment to the date on which pension benefits commence, or (b) an amount determined by multiplying the amount of pension to which he 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 his credited service. Number of years of credited service Percentage Less than 10 0% 11 10% 12 20% 13 300 14 40% 15 500 16 600 17 700 18 800 19 900 20 or more 100% Sworn Police personnel including bargaining unit employees, shall be 100% vested in the retirement plan upon completion of ten (10) years continuous full -time sworn Police service. Accordingly, effective October 1, 1993, all sworn Police personnel including members of the bargaining unit who are in the City's retirement system effective October 1, 1993 and have between ten (10) years of continuous sworn Police service in the retirement system will be 100% vested. All general Section 5. That Section 16 -19 (a) of the Code of Ordinances is hereby amended as follows: 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) per cent 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 annually contribute the balance of the cost, actuarially determined, of providing the benefits of the plan. That sworn Police personnel, including bargaining unit employees, that are now members of the retirement system and any sworn police personnel who joins the retirement system in the future shall, effective October 1, 1993, have their contribution increased from three percent (3%) to five percent (5%). Should the City's annual contribution be actuarial determined to exceed twelve percent (12%) both the City and the employees will share equally the amount in excess of twelve percent (12%) for that fiscal year. PASSED AND ADOPTED this ATTEST: CITY�2 1st Reading - Ocqober , 1995 2nd Reading - November 7, 1995 READ AND APPROVED AS TO FORM: CITY ATTORNEY 7th day of No tuber 1995. APPRO D: i MA OR, e� arver MAYOR GARNER VICE MAYOR YOUNG COMMISSIONR BASS COMMISSIONER COOPER COMMISSIONER CIMNINGHAM YEA v NAY YEA ✓ NAY YEA ✓ NAY YEA NAY YEA NAY ____ CITY OF SOUTH MIAMI ® INTER- OFFICE MEMORANDUM To: Mayor & City Commission Date: From: Eddie Cox City Manager November 2, 1995 Agenda Item # /;-,# Re: Comm. Meeting 11/07/95 Pension Plan Revisions Second Reading Agreements reached with the PBA and AFSCME requires changes in the pension ordinance. This resolution amends Section 16 -12, Section 16 -13, Section 16 -14, Section 16 -17, and Section 16 -19. The changes include mandatory participation in pension plan for all new employees effective October 1, 1995; defines average compensation to be based upon last three years of service; increases pension benefit accrual rate; provides for 1000 vesting upon completion of 10 years of service; and increases employee contribution to the pension system to 5%. I recommend your approval.