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1970-697ORDINANCE NO. 21- i0-6yi ORDINANCEOF THE CITY OF SOUTH MIAMI, CODE OF,ORDINANCES, CITY - 'OF M16, FLORIDA AMENDING ARTICLE II CHAPTER I FLORIDA, ENTITLED "CITY PENSION PLAN "; EXPRESSING INTENT THAT`SAME'BE INCLUDED z. IN THE CITY CODE; AND ESTABLISHING EFFECTIVE DATE. WHEREAS, the City of South Miami, Florida, established a pension plan effective October 1, 1965, entitled "South Miami Pension Plan" whichpension "plan was incl'uded`in Ordinance No. 528 passed and adopted by the Mayor and City Council December 1, 1965; and included in 'the Code of Ordinances, City of South Miami, Florida, as Article II of Chapter 16; and WHEREAS, said pension-plan provides in Section 16 -22 that it maybe amended at any time and from time to time; and WHEREAS, the City'- of South Miami now desires to amend said pens ion'`plai; BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SOUTH MIAMI, FLORIDA: Section 1. Section 16 -12, Code of Ordinances, is hereby amended by adding - thereto the following: "Basicf "Benefi`t" "shall mean that portion of the �`peiision payable to a participant under the plan, which portion, upon the disability or retirement of any Participant, is guaranteed both as to amount and duration. "Supplemental 'Benefit" shall mean a variable benefit reflecting changes in the cost of living 'de "termined from the Consumer Price Index, which may become payable on October 1, 1970, and every October 1 thereafter for the ensuing - twelve (12) month period to persons retiring or becoming disable on-or after October 1, 1970. "Consumer Price Index" shall mean the statistical table based on changes in the price of consumer goods and services published periodically by the Bureau of Labor Statistics of the United States, which table relates to the United States as a whole. "Current Index" shall mean the average of the six (6) latest available monthly Consumer Price Indices published immediately preceding the applicable Valuation Date. "Base Index" shall mean the Current Index determined on the Valuation Date coincident with, or otherwise, immediately preceding a participant's normal retire- ment-date. The Base Index applicable to a Participant who elects a late retirement date shall be the Base Index which would apply had j s normal retirement date been his last retirement date, "Prior Index" shall mean'the last current Index which was used to adjust benefits on the last Valuation Date immediately preceding the current Valuation Date. "Valuat`ion Date" shall mean the Septe "tuber 1 on which" the Current Index shall be compared with "'the Base Index of each payee receiving a Basic Benefit to deter`m "ine whether a Supplemental Benefit may be payable. Section 2. Section 16 -14 (b) Code of Ordinances, hereby is amended to read as follows: °(b) The yearly amount of pension'Pa'yable to a Partici- pant shall be equal to (a) as to a participant retiring prior to October 1, 1970, a Basic Benefit g `h'is retirement 'dat` determined by x. and six tenths percent (1.6%.) of his tfpinalnavetag rage compensation by the number of his completed years of credited service at his retirement date excluding the first two (2) years Of such service and any additional service com- pleted by him prior to 'his twenty -fifth (25) birthday, and (b) as to a participant retiring on and after October 1, 1970, the sum of (1) and (2). "(1) Basic Benefit A Basic Benefit commencing 'at h'is normal retirement date deterined')�y multiply n one and six tenths ercent 1.5° g ,. p ( /) of his final average compensation by the number of his com- pleted years of credited service at his normal retirement date exchuding the first two 2 Of such service and ) Y -ars d any additional service completed by him prior to his twenty - fifth (25th) birthday. n � i{: j (2) Supplemental Benefit A Supplemental Benefit, if any is payable, determined on each Valuation'' Date which d occurs after the particip'ant's normal retire - The Su p elemental Benefit shall be equal to (1) an amount determined at the first' applicable Valuation Date by multiplying` the yearly amount of Basic Benefit by the percentage, if any, by which the Current Index exceeds the Base Index and (2) an amount determined at each subsequent Valuation Date, where the Current Index exceeds the Prior Index, by multiplying the sum of the annual Basic - 2 ORDINANCE NO. 21 -70 -697 Benefit and an amount equal to twelve (12) times the Supplemental Benefit payable fog the month preceding such Valuation Date by the percentage by which the Current Index exceeds the Prior Index, or where the Prior Index exceeds- "the Current Index, by reducing such sum by the product of such sum and the percentage by which the Prior Index exceeds the Current Index; prow "ided, however, that in no event shall the Supplemental Benefit payable at any 'time be greater �thA i'Ae excess of (1) the Basic Benefit increased at three percent (Y compounded annually from 'the initial Valu- ation Date .applicable ' to him ;over (2) the Basic Benefit. In no event shall the Supplemental Benefit be reduced below zero so as'to'affect the amount of Basic 'Benefit. Supplemental Bene- fits shall comm6n'66 or be adjusted as of each October first and shall continue thereafter for the following eleven (11) months." Section 3. Section 16 -14 (c), Code of Ordinances hereby is amended by adding thereto 'the following: ng after the Participant's Normal Retirement Date theYBasic Benefit of any Participant retirrhg on or after October 1, 1970, will be suppleiriented by the applicable Supplemental Beieflt determined in the same manner as in Section 16 -14 b Section 4. Section 16- 14(d), Code of Ordinances, hereby is amended by adding the' ir6to the following: "Commencing after the Participant's Late `Retiremeht`Date "aa6 the 'Basic Benefit of any Participant retiring on or after October 1, 1970, will be supplemented by the applicable ,F Supplemental Benefit determined'in the same manner as pro- vided in' Section 16 ='14 (b)`('2) , based on tYe Basic Benefit actually being paid;`'provided, however, that the`frst applicable Valuation Date will be the first such date following such Partic'ipant's Late Retirement Date." Section 5. Section 16- 15(a), Code of Ordinances, hereby is amended by deleting the second 2nd) ( paragraph thereof and sub- stituting the following in lieu thereof: "If the participant remains disabled until his normal retirement date, he shall then receive a Basic Benefit on the normal annuity form equal to the amount of dis- ability benefit he was receiving. In addition to the Basic Benefit, the payments of any participant who be- comes disabled on or after October 1, 1970, will be adjusted after the normal retirement date of the Parti- cipant by a Supplemental Benefit determined in the same manner as provided in Section 16- 14(b)(2), the last pay- ment being due at the time that last Basic Benefit payment is due. If the disabled Participant ceased to be totally and permanently disabled and returns to the service of 3 - ORDINANCE NO. 21 -70 -697 4 being due at the time that last Basic Benefit payment is due. If the disabled'Part`icipant ceased to be - totally and permanent "ly disabled and returns to the service of the Empl yer he shall be entithed- to--resume coverage under the Plan 'on the first of the month'`'follow- ing'Wis,re- employment and his pension at retiremnt shall be based on Credited Service before and after his period of disability. If he does not return to the service of the Employer, his vested - ,pension shall be determined'i:n accordance with Article VI, including as serce' for the p pose of de'termfi iA the a livable vesting percentage only, the period of his disability." Section"6. Section 16- 17(b), Code of Ordi'raiic "es,'hereby is amended by changing the reference in Option 2(b) of Section 16 -17(b) from "Section 16- 14(b)" to "Section 16 -14(a) or'A- 14(b), whichever is applicable." Section 7. Section 16 -17, Code of Ordinances hereby is Amended by adding thereto the following-paragr`aph at the end thereof: "No Supplemental Benefit shall be payable under this Article." Section'8. Section 16- 18'(a), Code of Ordinances, hereby is amended by substituting the following in lieu thereof: "(a) The employer, in order to provide the benefits of this plan, shall procure from the Insurance Company a group annuity` policy. In general, 4 l_ such' group annuity policy shall provide for the establishment and maintenance of a fund'or funds b the Insurance Com y pant' to which contributions will be credited and 'from which will be with- drawn the amount necessary to pay pension' benefits at retirement and 'to pay such other benefits as may be provided by the plan. Section 9. Section 16- 22(b), Code of Ordinances, hereby is amended by substituting the following in lieu thereof: "(b) The Employer may terminate this pensior..<, ,pl'an at any time by an instrument in.- writing executed in the name of the Employer by an officer or officers duly authorized to execute such an instrument and delivered to the Pension Board. In such event ORDINANCE, NO. 21 -70 -697 - 4 - 0 the Pension Board shall take the necessary 'steps to have all th'e funds held by the Insur'ahce Company' -- - — under the group annuity pol -icy with respect to such Employer applied to`the purchase of immediate or deferred ahMi- itie`s, as the case may be, in the following order of priority arid- "in accordance with the provisions of Article XII, if applicable: "(l) An immediate annuity on the normal forms of pension `for each hliployee who is a Participant and who has attainted his normal 'retirement 'date but o has not retired, in an amount equal to the amountof`Basc Benefit to which he would have been entitled "if `he had retired 'immediately prior to such termination. ((2) A deferred annuity on a full cash refund form "of pension commencing at fib retire"md- date for each employee who "is'a Particip nf`and who has not reached his norma'l' retirement ' da'te, for each dis- able'd Participant, and for "each former employee who is a terminated Pa 'r`tcipant' who has not elected a cash "pay►uent as provided in 61 1 of Article VI in an "amount of h "is artic3 ant contributions paid to and receiv6d +iby the InsiAr hce Company, with credited inte'r'est at three percent (3q) -per annum from the 'end of the-year in which conteibiutioris were received to the date Basic Benefits commence. "(3) temporary nY dg on s normal re ti r ement date for each disalledoarticipant in an amount equal to the Basic benefits has been receiving under Article IV. f "(4) A deferred annuity on the life annuity formcom- mencing`at normal retirement -date for 'each ter - minuted participant as defined in Article VI in an amount equal to the amount he is entitled to under Article Vi and-a deferred annuity''commencihq at normal `retirement date for each disabled' p"' ci- pant and each employee who is a participant in an amount equal to the amount "he would be entitled to under Article Vi if the date of tormination'of,: employment less the amount of benefit applicable to him in (b) above. "(5) A deferred annuity on the life annuity form com- mencing at normal retirement date for each employee who is a participant and who has not reached his normal retirement date in an amount equal to the amount of Basic Benefit he would be entitled to if his normal retirement date were the date of termin- ation of this plan less the amount of benefit appli- cable to him in (2) (3) and (4) above. - 5 - ORDINANCE, NO. 21 -70 -697 I "Provided, however, that if there are insufficient funds to provide any category of such annuities, the amount of annuity to be provided for.each participa­At iri that category shall be reduced by , a uniform-percentage, -If by.reason of actuarial error the purchase-6f such an- nuities as is provided for in (1) , (2) , (3) , (4')' and above does not exhaust the funds, any excess shall be paid by the Insurance Company to such Employer." Section 10. If any provision, section, paragraph, sentence clause or phrase of this ordinahce is for any reason found to be ,invalid or inoperative or shall be held by any Court to be un- constitutional the remainder of the provisions of this ordinance shall nevektheless continue in full force and effect. Section 11. This ordinance shall be included in the Code of ordinances of City of S6U'th Miami, Florida, and the sections may be renumbered for such purpose. Section 12. This ordinance shall become effective October 1, 1970. PASSED and ADOPTED this 6th day of —October 100. APPROVED: M a y6­r ATTEST: City Clerk OR61NANCE NO. 21-70-697 - 6 - - 1 ■