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Res. No. 116-01-11264RESOLUTION NO., 116-01-11264 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO EXTENDED TERMINAL ILLNESSES; GRANTING MR. HUGO PEREZ THE OPPORTUNITY TO UTILIZE HIS EARLY RETIREMENT PENSION BENEFITS AND USING CITY FUNDS TO PAY FOR THE COST OF HIS PENSION BUYBACK. WHEREAS, Mr. Hugo Perez is a long -time employee of the Public Works Department with a debilitating terminal illness and has exhausted his accumulated annual and medical leave time; and WHEREAS, City of South Miami employees have graciously donated medical leave time so that Hugo Perez can continue to receive a paycheck; and WHEREAS, Mr. Hugo Perez has worked for the City of South Miami for seventeen years and has only twelve years of credited service in the pension plan; and WHEREAS, the City pension plan allows employees to buy back years of service provided the employee pays the full cost; and WHEREAS, Mr. Perez is unable to pay for the buy back because he has not been working due to his illness; and WHEREAS, the Mayor and City Commission desire to authorize the City Manager to use City funds to buy back time towards Hugo's Pension so that Mr. Perez may be able to start receiving Pension benefit payments. NOW, THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA; Section 1. The City Manager is hereby authorized to buy back Pension for Hugo Perez for a total amount of $10,086.26. Section 2. This resolution shall take effect immediately upon approval. PASSED AND ADOPTED this 7thday of August 2001. ATTEST: CITY CLERK READ AND APPROVED AS TO FORM: CITY ATTORNEY APPROVED: MAYOR COMMISSION VOTE: 4 -0 Mayor Robaina: Yea Vice Mayor Feliu: out of town Commissioner Russell:Yea Commissioner Bethel: Yea Commissioner Wiscombe: Yea TO: Mayor and City Commission FROM: Charles D. Scurr City Manager If i� The Request DATE: August 7, 2001 Re: AGENDA ITEM # AUTHORIZATION TO BUY BACK TIME FOR HUGO PEREZ FOR ENTITLEMENT OF PENSION BENEFIT PAYMENTS DUE TO TERMINAL ILLNESS. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO EXTENDED TERMINAL ILLNESSES; GRANTING MR. HUGO PEREZ THE OPPORTUNITY TO UTILIZE HIS EARLY RETIREMENT PENSION BENEFITS AND USING CITY FUNDS TO PAY FOR THE COST OF HIS PENSION BUY BACK. Background and Analysis Hugo Perez has been employed with the City of South Miami since 1983 in our Public Works Department. Mr. Perez has been suffering from a debilitating illness and yet continued to work as a Mechanic in Public Works. At this time, his illness has progressed to the point that he has been unable to work. We have attempted to assist him in receiving disability benefits through Fortis but was denied and we are still awaiting response from Social Security Office. At this time, Mr. Perez is receiving no monies from the City. The City normal retirement date for General Employees as revised in 1997 is the first day of the calendar month coincident with or, following employee's fifty fifth (55'h) birthday and the date on which employee has completed ten (10) years of full time credited service. The provision for early retirement is the first day of any calendar month coincident with or subsequent to employee's fiftieth (501h) birthday, and completion of fifteen years of credited service. Mr. Perez, who is now fifty two (52) years old, has worked for the City for seventeen (17) years but participated in the pension plan only for about twelve (12) years. With this, Mr. Perez meets the age provision of the early retirement requirement only. In order for him to meet the years of credited service provision, he would need to buyback three (3) years into the pension plan. The cost of this buyback is estimated to be about $10,086.26, which Mr. Perez is unable to pay at this time because he is not working. The attached resolution will authorize the City Manager to use City funds to pay for the buyback, so that Mr. Perez will be eligible for the early retirement. The cost of the buy back will be paid out of the expected salary savings from Mr. Hugo Perez's position. Approval is recommended.