Ord No 22-16-2255ORDINANCE NO.22-16-2255
An Ordinance amending the South Miami Pension Planto implement the Collective
Bargaining Agreement between the City of South Miami and AFSCME Local 3294
and creating a new Administration Management Service Class (AMSC)of employees
in the South Miami Pension Plan for the City of South Miami and setting forth the
terms of the Plan as related to the AMSC ;by Amending Chapter 16,Article II,
Section 16-12,"Definitions"by Adding Definitions for Second Tier Member and
AMSC and amending the definition of final average compensation,asit applies to
the AMSC ;by amending Section 16-13,"Eligibility"to reopen the Plan for certain
General Employees and for the AMSC ;by amending Section 16-14,"Pension
benefits and retirement date"toset out the benefits for those persons who will join
the Second Tier and for those persons in the AMSC ;by amending Section 16-17
"Termination Benefits"to provide a vesting schedule for the AMSC ;by amending
Sec.16-19,"Contributions"to place a limit on the total contributions made in any
fiscal year by General Employees and toset the contribution rate for the AMSC ;by
amending Section 16-21,"Purchase of Credited Service"by allowing certain
employees to buy credited service.
WHEREAS,the Cityof South Miami and the American Federation of State,County
and Municipal Employees,AFL-CIO,City Employees Local 3294 (hereinafter "Union"),have
entered intoa new Collective Bargaining Agreement ("Agreement"),effective June 22,2016
to June 21,2019;and
WHEREAS,itis the purpose and intention of the Agreement to provide for salaries,
fringe benefits and other terms and conditions of employment except as otherwise provided
by Constitution,Statute,Charter,Ordinance,Administrative Order or Personnel Rules and
Regulations;and
WHEREAS,Florida law requires that if any provision ofa collective bargaining
agreement isin conflict with any ordinance over which the chief executive officer has no
amendatory power,the chief executive officer shall submit to the appropriate governmental
body having amendatory power a proposed amendment to such ordinance;and
WHEREAS,the City Commission has decided to create a new class of employees,
comprised of the Administration Management Service Class ("AMSC")and topermit
members of the AMSCtojoin the South Miami Pension Plan and to provide for the terms of
membership;
WHEREAS,the City Commission has received and reviewed an actuarial impact
statement related to such amendments;and
WHEREAS,the City Commission wishes to change the terms of the South Miami
Pension Plan to effectuate the changes called forin the Agreement;and
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Ord.No.22-16-2255
WHEREAS,the City Commission deems itto be in the public interest to provide these
changes to the pension plan;
NOW,THEREFORE,BEIT 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 Cityof South
Miami Code of Ordinances is hereby amended by adding toit the following definitions:
Definitions.
***
AMSC Member shall mean the Administration Management Service Class.Itwill be
composed of employees who hold only the following positions:
City Manager
City Attorney
City Clerk
Assistant /Deputy City Manager
Finance Director/Chief Financial Officer
Chief of Police
Planning and Zoning Director
Building Director
Director of Public Works
Chief Administrative Officer (currently Finance Office Manager)
Chief Procurement Officer (currently Purchasing Manager)
Parks and Recreation Director
Employee shall mean any person employed full-timeby the employer ona regular,
permanent basis.Elected officials shall be excluded.The city manager,city clerk,and any
employees persons defined as department heads within this section,shall be included within
the definition of employee,however such positions shall be allowed a one-time opportunity to
opt out,prior toeligibility date as defined in section 16-13 of this Code,(inwriting)of this
pension plan.
***
Second Tier Member shall mean general employees who are hired on or after October 1,
2016 who elect to join the South Miami Pension Plan,and general employees who were hired
prior to October 1,2016 and not participating in the South Miami Pension Plan as of October
1,2016 who elect to join the South Miami Pension Plan.
Ord.No.22-16-2255
Section 2:That Chapter 16 Article II,Section 16-12,"Definitions"of the Cityof South
Miami Code of Ordinances is hereby amended by amending the definitionof average final
compensation as follows:
Final average compensation shall mean the participant's annual compensation,as
determined by the employer,acting inauniformand nondiscriminatory manner.For general
employees,except for Second Tier Members andAMSC Members effective October 1,
2011,final average compensation shall be averaged over the last five-year period,provided
however final average compensation over the last five-year period shall not be less than the
final average compensation as of September 30,2011,under the definitionoffinal average
compensation which existed as of September 30,2011.For Second Tier Members,final
average compensation will be the average of the highest eight (8)years of credited service.
For AMSC Members,final average compensation will be the average of the highest eight (8)
years of credited service.In the event an AMSC Member has less than eight (8)years of
credited service,final average compensation will be the average of all the participant's annual
compensation over the period for which the Member received credited service.For members
covered under the police officers and sergeants collective bargaining agreement,final
average compensation shall be the best five-year period of the police officer or sergeant's
career with the Cityof South Miami,provided however final average compensation over the
best five-year period shall not be less than the final average compensation as of September
30,2011,under the definition offinal average compensation which existed as of September
30,2011.The best five(5)years is defined as the highest five(5),twenty-six (26)
consecutive pay periods within a police officer or sergeant's career and such consecutive
year periods shall not overlap one another.For all other members,final average
compensation shall be averaged over the last three-year period -but not less than the
average of the participant's five(5)best years of annual compensation during the last ten (10)
years of service.For all members final average compensation will end 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.
Section 3:That Chapter 16Article II,Section 16-12,"Definitions"of the Cityof South
Miami Code of Ordinances is hereby amended by amending the definition of credited service
as follows:
Credited service shall mean participant's continuous employment with the employer
computed in completed calendar months while a member of the South Miami Pension Plan.
For Second Tier Members and AMSC Members who elect to join the South Miami Pension
Plan as a result of this Ordinance,credited service shall include continuous employment prior
to becoming a member of the South Miami Pension Plan for all purposes except for purposes
of benefit accrual.Leaves of absence authorized by the employer with periods of absence in
connection withmilitary service during which the participant's employment rights were
protected bylaw shall not be considered to have broken the continuity ofhis employment;
provided,that the employee has become re-employed by the employer within time period
provided in The Uniform Service Employment and Reemployment Rights Act (USERRA)and
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Ord.No.22-16-2255
for police officers Chapter185ofthe Florida Statutes afterhonorabledischarge from the
military service.Further,thattheemployeehaspaidanamountequaltothecontributionsthat
would have been made during such leave of absence based on the participant's salary
immediately priortoentryinto military service,provided thatpolice officer participantsshall
notberequiredtomake such payment ofcontributionsper Chapter 185,F.S.Noemployee
shallbeeligibleto become a participant during such absence.
Section 4:That Chapter 16 Article II,Section 16-13,""Eligibility"of the CityofSouth
Miami Code of Ordinances is hereby amended as follows:
Eligibility.
(a)Each employee employedbytheemployeron October 1,1965,shallbea
participantonthefirstparticipation date onwhichhe has completed two(2)years ofcredited
service and has attained his twenty-fifth birthday.
(b)Each employee who becomes an employee subsequent to October 1,1973,
shallbea participant onthefirstparticipation date onwhich he/she has completed six(6)
months of credited service and has obtained his/her twentieth birthday.For all current
employees as of October 1,1995,each fiscal year there will be awindowforjoining the
retirement system;i.e.October 1 through October 31.
(c)It shall become mandatory forall employees hiredonor after October 1,1995,
tojoin the pension plan after completion ofsix(6)months of employment by the city.
(d)All general employees who are hiredby the Cityof South Miamionor after
October 1,2011,will not be eligible to participate in the South Miami Pension Plan.All
general employees hiredonor after October 1,2011,shall join the ICMA RC a_defined
contribution plan of the City of South Miami(DC)457 Plan.
(e)Employees who are hiredonor after October 1,2011,and are classified as
police officer or sergeant,shall enter the pension plan immediately upon being hired as a
sworn law enforcement officer.
(f)All general employees hired onor before September 30,2011,will have a one
time option to either remain in the South Miami Pension Plan or elect to discontinue
membership.
(1)For general employees who choose to discontinue membership in the South
Miami Pension Plan,employees shall provide in writing no later than
December 31,2011,to the City's Human Resources Department,a letter
stating their choice to discontinue membership in the South Miami Pension
Plan.The letter shall state the percentage the employee will contribute
towards the defined contribution plan ICMA RC 457 which contribution rate
shall be effective until September 30,2012.The effective date of the change
is on the first pay period in January 2012.
Ord.No.22-16-2255
(2)Shoulda general employee choose to discontinue membership intheSouth
Miami Pension Plan,the general employee will be refunded the contribution
which they contributed during their participation in the South Miami Pension
Plan and may rollover such amount into the defined contribution plannewly
established ICMA RC 457 Plan.
(g)Notwithstanding sections (a)through (f)above,general employees who are not
participating in the South Miami Pension Plan as of October 1.2016,and general employees
hired on or after October 1,2016 shall be given a one-time irrevocable election to either
become a Second Tier Member of the South Miami Pension Plan or ioin a defined
contribution plan of the City of South Miami.The irrevocable election must be made within
ninety (90)days from the later of the effective date of this Ordinance or date of hire.If no
election is made,the general employee will be placed in the South Miami Pension Plan.
(h)All persons who hold positions listed in the AMSC in the definition section
above and who are not participating in the South Miami Pension Plan as of October 1,2016,
shall be given a one-time irrevocable election to either ioin the South Miami Pension Plan or
ioin a defined contribution plan of the City of South Miami.The irrevocable election must be
made within ninety (90)days from effective date of this Ordinance.All AMSC Members who
are,on the effective date of this Ordinance,participating in the South Miami Pension Plan will
have their accrued benefits as of the date of the adoption of this Ordinance reflect their
compensation through date of termination for purposes of final average compensation as
defined immediately prior to the effective date of this ordinance.
All persons who are not AMSC Members and are not participating in the South Miami
Pension Plan as of October 1,2016,but thereafter become a member of the AMSC in the
definition section above,upon becoming a member of the AMSC shall be given a one-time
irrevocable election to ioin the South Miami Pension Plan or join a defined contribution plan of
the City of South Miami.The irrevocable election must be made upon becoming a member
of the AMSC.All those general employees,who,after the effective date of the Ordinance,
become AMSC Members will have their accrued benefits as of the date they become AMSC
Members reflect their compensation through date of termination for purposes of final average
compensation as defined immediately prior to the effective date they become AMSC
Members.
(i)Notwithstanding Sections (a)through (h)above,all persons who ioin the South
Miami Pension Plan on or after the effective date of this Ordinance will not be reguired to
have completed six (6)months of service prior to joining and are reguired to participate
immediately upon hire or upon election to join for members who were hired prior to the
effective date of this Ordinance.
Section 5.That Chapter 16 Article II,Section 16-14,"Pension benefits and retirement
date"of the Cityof South Miami Code of Ordinances is hereby amended as follows:
Ord.No.22-16-2255
(a)Retirement date.Thenormalretirement date with full unreduced pension benefitsfora
participant,shall be as follows:
(1)General employees.Shallbe the first day of the calendar month coincident with
or,otherwise,next following the later of the participant's sixtieth birthday and the date
onwhich the participant has completed ten (10)years of credited service.General
employees participating in the plan as of September 30,2011,will remain eligibleto
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 to
increases infinal average compensation,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 fifty-five(55)and ten
(10)years of credited service reduced one-fifteenth (1/15th)for each year benefit
commencement precedes the later of age sixty(60)and ten (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 sixty (60)and ten (10)years of
credited service.Under no circumstance willa general employee member who was
participating in the plan on September 30,2011,be allowed to receive their fifty-five
(55)and ten (10)distribution and then keep working.
(2)Second Tier Members.The earlier of (a)age 65 and completion of ten (10)
years of credited service;or (b)completion of thirty-three (33)years of credited service.
(3)AMSC Members.The earlier of (a)age 65 and completion of three (3)years
of credited service;or (b)completion of thirty-three (33)years of credited service.
(A)Early retirement
(1)A general employee participant as of September 30,2011,and AMSC
Participants 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
whichis entitled upto early retirement date in accordance with subsection (b).
Table—General Employee participant as of September 30,2011,AMSC Participants
Participant—Percentages for early retirement date
Years prior to normal retirement date Percentage
Ord.No.22-16-2255
Years prior to normal retirement date Percentage
1 93.33
2 86.67
3 80.00
4 73.33
5 66.67
6 63.33
7 60.00
8 56.67
9 53.33
10 50.00
(2)Police officers.Shall be the completion of twenty-five (25)years of credited
police service,regardless of age,or attainment of age sixty (60)and completion often
(10)years of credited police service.
(3)Vesting of benefits upon normal retirement date.Any provision of this plan to
the contrary notwithstanding,a member's accrued benefit shall become one hundred
(100)percent vested upon the attainment of the normal retirement date.
(b)Amount of pension.The yearly amount of pension payable toa participant on the first
day of the month coincident withor next following the participant's retirement date shall be an
amount equal to the participant's number of completed years of credited service multiplied by
a percentage offinal average compensation as stated herein.
(1)Basic benefit.
a.A basic benefit for participant's retiring prior to October 1,1970,shall be
determined by multiplying 1.6 percent of the participant's final average compensation
by the number of completed years of credited service,excluding the firsttwo(2)years
of such service andany additional service completed by the participant priorto the
participant's twenty-fifth birthday.
Ord.No.22-16-2255
b.However,as to those participants who became an employee subsequent to
October 1,1973,there shall only be excluded the firstsix(6)months of such service
plusanyadditional service completed priorto the participant's twentiethbirthday
and/or additional service completed priorto the participant becoming eligible tojoin
this pension plan.
(2)General employees.
a.Effective October 1,1993,the pension benefit accrual rate (multiplier)for
general employee participants,shallbe increased from1.6 percent to1.8 percent for
services performed in the 1993-1994 fiscal year.
b.Effective October 1,1994,the pension benefit accrual rate (multiplier)for
general employee participants,shallbe increased from1.8 percent to1.9 percent for
services performed in the 1994-1995 fiscal year.
c.Effective October 1,1995,the pension benefit accrual rate (multiplier)for
general employee participants shall be increased from 1.9 percent to 2.25 percent for
services performed in the 1995-1996 fiscal year.
d.Effective October 1,1996,the pension benefit accrual rate (multiplier)for
general employee participants shall be increased from 2.25 percent to 2.50 percent for
services performed in the 1996-1997 fiscal year.Effective October 1,2001,the
pension benefit accrual rate (multiplier)for general employee participants shall be 2.25
percent for all services performed through September 30,1998.
e.Effective October 1,1997,the pension benefit accrual rate (multiplier)for
general employee participants shall be increased from 2.50 percent to 2.75 percent for
services performed in the 1997-1998 fiscal year and thereafter.Effective October 1,
2001,the pension benefit accrual rate (multiplier)for general employee participants
shall be 2.50 percent for services performed in the 1998-1999 fiscal year and 2.75
percent for services performed thereafter.
f.Effective October 1,2002,the pension benefit accrual rate (multiplier)for
general employee participants shall be 2.50 percent forall services performed through
September 30,1999,and 2.75 percent for services performed thereafter.
g.For all service earned onor after October 1,2011,the pension benefit accrual
rate (multiplier)for general employee participants shall be reduced from 2.75 percent
to 2.25 percent.
tL For all service earned on or after October 1,2016,by Second Tier Members the
pension benefit accrual rate (multiplier)shall be 1.60 percent.
L For all service earned on or after October 1,2016 by AMSC Members of the
South Miami Pension Plan,the pension benefit accrual rate (multiplier)will be 3.00
percent.
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Ord.No.22-16-2255
(4)Supplemental benefit.A supplemental benefit,if any is payable,determined on each
valuation date which occurs after the participant's normal retirement date.The supplemental
benefit shallbe equal to(1)an amount determined at the first applicable valuation date by
multiplying the yearly amount of basic benefit by the percentage,ifany,bywhich 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,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;provided,however,that inno event shall the
supplemental benefit payable at any timebe greater than the excess of(1)the basic benefit
increased at three (3)percent compounded annually from the initial valuation date applicable
to the participant over (2)the basic benefit.Inno event shall the supplemental benefit be
reduced below zero so as to affect the amount of basic benefit.Supplemental benefits shall
commence or be adjusted as of each October 1 and shall continue thereafter for the following
eleven (11)months.Effective October 1,2011,the supplemental benefit Cost of Living
Adjustment (COLA)for general employees (eligible retirees and/or beneficiaries)is eliminated
for future benefit accruals,including increases in the current accrued benefit due to increases
infinal average compensation.General employees will receive the supplemental benefit on
their accrued benefit as of September 30,2011.Second Tier Members shall not be eligible
for the supplemental benefit cost of living adjustment.AMSC Members shall not be eligible
for the supplemental benefit cost of living adjustment for benefit accruals on or after October
1,2011.
Section 6.That Chapter 16,Article II,Section 16-17(b),"Termination of
Employment",shall be amended to provide as follows:
(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 1is elected before the participant's normal retirement
date.
Option 1:A cash payment of an amount equal to the aggregate of the contributions made
by the participant prior to termination of employment.Provided that police officer
participants eligible to withdraw their contributions from this pension plan 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 that which can be
provided by the aggregate of the contributions made by the participant priorto the
termination of employment,with credited interest compounded annually at the rate of
three (3)percent per annum from the end of the year of payment to the date onwhich
Ord.No.22-16-2255
pensionbenefitscommence;oranamountdeterminedby multiplying theamountof
pensiontowhichtheparticipantisentitled in accordance with section subsection 16-
14(a)or 16-14(b),whichever is applicable bya percentage determined in accordance
with the following schedule on the basis of the lengthof credited service.
Number of years
of credited service
Percentage
Less than 10 0
11 10
12 20
13 30
14 40
15 50
16 60
17 70
18 80
19 90
20 or more 100
Police officer participants,including bargaining unit employees,shall be one hundred (100)
percent vested in the retirement plan upon completion often (10)years continuous full-time
sworn police service.Accordingly,effective October 1,1993,all police officer participants,
including members of the bargaining unit,who are in this plan effective October 1,1993 and
have between ten (10)years and twenty (20)years of continuous sworn police service will
be one hundred (100)percent vested.
All general employees shall be one hundred (100)percent vested in the pension plan upon
completion often (10)years of continuous credited service.All Second Tier Members shall
be one hundred (100)percent vested in the pension plan upon completion often (10)years
of continuous service.AMSC Members shall be one hundred (100)percent vested in the
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Ord.No.22-16-2255
pension plan upon completion of three (3)years of continuous service.General
employees and AMSC Members who opt toioin the defined contribution plan of the Cityof
South Miami shall vest after one (1)year of service.Accordingly,effective October 1,1995,
all general employees whoare in thisplan as of October 1,1995,andhaveten (10)years
or more of continuous service will be one hundred (100)percent vested.
Section 7.That Chapter 16,Article II,Section 16-19 "Contributions"is amended as
follows:
(a)Each participant,except as otherwise provided herein,shall contribute in each calendar
year towards the cost of the participant's pension an amount equal to three (3)percent of the
participant's earnings.With the exception of police officer participants,Except as otherwise
provided herein,no participant shall make any contributions toward the cost of any past
service pension towhich the participant is entitled under this plan.The employer shall
contribute the balance of the cost,actuarially determined,of providing the benefits of the
plan.The employer's contributions shall be deposited into the pension plan on at least a
quarterly basis.Effective October 1,1995,the pension contribution forall general employee
participants,including those general employees that are now members of the retirement
system,shall be increased from three (3)percent tofive(5)percent of earnings.Effective
October 1,2001,the pension contribution forall general employee participants,including
those general employees that are now members of the plan,shall be increased fromfive(5)
percent to seven (7)percent of earnings.Police officer participant including bargaining unit
employees,that are now members of the plan and any police officers who join the plan in the
future shall,effective October 1,1993,have their contribution increased from three (3)
percent tofive(5)percent of earnings.Effective October 1,2001,police officer participants
shall contribute 7.5 percent of earnings.
(1)General employee participants.Should the employer's annual contribution be
actuarially determined to exceed twelve (12)percent,both the employer and the participants
shall share equally the amount in excess of twelve (12)percent for that fiscal year Effective
October 1,2005,should the total participant and employer's annual contribution be actuarially
determined to exceed fourteen (14)percent,both the employer and the general employee
participants shall share equally the amount in excess of fourteen (14)percent for that fiscal
year.Notwithstanding the above,the maximum general employee contribution rate will be
10%of earnings for fiscal years beginning on or after October 1,2016.
(2)Police officerparticipants.Effective October 1,2004,if the total police officer
participants'contributions and employees contribution exceeds fifteen(15)percent of
covered police payrollfor any fiscal year,the excess over fifteen (15)percent shall be shared
equally by the employer and police officer participants.Police officer participant contributions
shall be deposited in the plan immediately after each pay period.Effective October 1,2001,
an amount actuarially determined,to provide for certain minimum benefits required by
Chapter 185,F.S.shall be paid from the South Miami Police Officers Retirement Trust Fund
to the plan each year,regardless of the growthor diminution in future Chapter 185,F.S.
funds.
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Ord.No.22-16-2255
(3)Second Tier Member participants.Second TierMembersshallcontribute three (3)
percent of earnings.
(4)AMSC Member participants intheSouth Miami PensionPlan.AMSC Members shall
contribute seven (7)percent of earnings.
(5)General employees and AMSC Member participants in the defined contribution plan
of the City of South Miami referenced in Section 16-13 above.General employees
and AMSC Member participants in the defined contribution plan of the City of South
Miami referenced in Section 16-13 above shall contribute a minimum of three (3)
percent of earnings.The City of South Miami shall contribute seven (7)percent of
earnings.
(6)[Otherparticipants.]Effective October 1,2009,and for one (1)fiscal year thereafter
participant contributions for the following employee designations shall be reduced from the
above calculated percentages bytwo(2)percentage points:
(a)Nonbargaining unit employees.
(b)Members of the AFSME bargaining unit.
(c)Members of the police lieutenants and captains bargaining unit.
(7)415(c)Limitations.To the extent applicable,all employee contributions shall be in
accordance with Subsection 415(c)of the Internal Revenue Code and all regulations
thereunder,which subsections and regulations are incorporated herein by reference.
(b)All amounts paid by the employer to the insurance company in accordance with this plan
shall represent irrecoverable contributions,except as may be otherwise provided in
subsection 16-22(b).
(c)The employer shall pay the reasonable expenses of the pension board,including any
expenses for legal and actuarial services.
Section 8.That Chapter 16 Article II,Section 16-21,"Purchase of Credited Service"
of the Cityof South Miami Code of Ordinances is hereby amended as follows:
Purchase of credited service.
(a)Policeofficer participants,including bargaining unit employees shallbeallowed
to purchase creditfor active dutyintheU.S.military service,priorto employment as apolice
officerwith the cityin accordance withUSERRAand applicable state law.Thisprovisionshall
not cover reserve active duty or weekend drill.Police officers electing to purchase prior
military time will do so attotal cost tothe participant withno cost assumed by the city.
(b)All participants in the city pension plan shall be allowed to purchase credit for
immediate past city service uptoamaximumoffive(5)years in the city pension plan
pursuant to procedures promulgated at the timeof such purchase.All costs for approved
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Ord.No.22-16-2255
purchase of past city services shallbe one hundred (100)per cent borne by the participant
withno cost assumed by the city.Should the participant be permitted to purchase past city
service over a period oftime,the effective date of credited service shall be on the date such
purchase is paid infull.
(c)Any participant classified as apoliceofficer who retires between November 1,
2011,and before November 15,2011,shall be eligiblefora retirement incentive,which shall
be equal to normal retirement provided:
(1)The Cityof South Miami will pay for the full actuarial cost,no later than
the earlier of benefit commencement or December 1,2011,ofupto eight
(8)additional months of any prior credited service earned by the electing
participant police officer before he or she became a participant in the
South Miami Pension Plan.
(d)For all Second Tier Members hired on or after October 1,2011,the following
will apply:
(1)Second Tier Members will be given an option,within ninety (90)days after the
effective date of this Ordinance amendment,to purchase continuous service for
purposes of benefit accrual for any and all years of service,up-to the number of
years they have worked at the City of South Miami at any time while employed
at the City of South Miami ina position eligible for participation in the South
Miami Pension Plan.Employees must pay the full actuarial cost of the service
they purchase,as calculated by the South Miami Pension Plan's actuary,and
such purchase will be at the member's sole expense.The cost of obtaining the
actuary's calculation of the service purchase will be paid one time by the Plan.
The cost of obtaining any subseguent calculation will be at the Plan member's
expense.The pension benefits purchased for all persons exercising this service
purchase option are the benefits for Second Tier Members including the
pension benefit accrual rate (multiplier)of 1.6%.
(e)For all AMSC Members hired on or after October 1,2011,the following will
apply:
(1)All AMSC Members who did not previously participate in the South
Miami Pension Plan,will be given an option,within ninety (90)days after the
effective date of this Ordinance amendment,to purchase continuous service for
purposes of benefit accrual for anyand all years of service,up to the number of
years they have worked at or been an elected officer for the City of South Miami
at any time while employed at or serving as an elected officer for the City of
South Miami ina position eligible as of October 1,2016,for participation in the
South Miami Pension Plan.AMSC Members must pay the full actuarial cost of
the service they purchase,as calculated by the South Miami Pension Plan's
actuary,and such purchase will be at the AMSC Member's sole expense.The
cost of obtaining the actuary's calculation of the service purchase will be paid
one time by the Plan.The cost of obtaining any subseguent calculation will be
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Ord.No.22-16-2255
at the Plan member's expense.The pension benefits purchased for all persons
exercising this service purchase option are the benefits for all AMSC Members
including the pension benefit accrual rate (multiplier)of 3.0%.
Section 9.Rules of Construction.This ordinance will be construed in accordance
with Florida statutory law and Florida case law.
Section 10.Codification.The provisions of this ordinance shall become and be
made part of the Code of Ordinances of the Cityof South Miami as amended;that the
sections of this ordinance may be renumbered or re-lettered to accomplish such intention;
and that the word "ordinance"may be changed to "section"or other appropriate word.
Section 11.Severability.If any section,clause,sentence,or phrase ofthis
ordinance isfor any reason heldinvalidor unconstitutional bya court of competent
jurisdiction,this holding shall not affect the validityof the remaining portions of this ordinance.
Section 12.Ordinances in Conflict.All ordinances or parts of ordinances and all
section and parts of sections of ordinances in direct conflict herewith are hereby repealed.
Section 13.Effective Date.This ordinance shall become effective upon enactment.
PASSED AND ENACTED this 20thday of September ,2016.
ATTEST:
g^^V
I St151 Reading _8/16/16
2nd Reading -9/20/16
READ AND APPROVED AS-^O FORM:
LANG>4Q5aEGALIT/XND
EXEGOTI0N THEREOF/
14
APPROVED
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Welsh
Commissioner Edmond:
Commissioner Harris:
Commissioner Liebman:
5-0
Yea
Yea
Yea
Yea
Yea
CITY OF SOUTH MIAMI
Qm ithVMiami 0FFICE 0FTHE CITY MANAGERJUUUI/Vlldl I II INTER-OFFICE MEMORANDUM
THfl CITY OF PLEASANT LIVING
To:The Honorable Mayor &Members of the City Commission
From:Steven Alexander,City Manager
Date:September 20,2016 Agenda Item:.a
Subject:Ordinance amending the South MiamiPensionPlan Approved on First Reading,
August 16,2016 -Actuarial Impact Statement
SUMMARY
Thesavings provided by adopting the recommended Ordinance amending the City's Pension
Planisan annual estimated savings of $60,363 forGeneral Employees andan estimated annual
savings of $28,141 forAMSC,foran aggregate estimated annual total savings amount of
$88,505.
BACKGROUND
On August 16,2016,the City Commission approved,with amendments,onfirst reading,an
Ordinance amending the South Miami Pension Plan.Before any amendment can be adopted,a
statement of actuarial impact is required by Section 112.63(3),F.S.An Actuarial Impact
Statement means a statement setting forth the actuarial liabilities and contribution
requirements ofa proposed change in the provisions ofalocal retirement system certified by
an enrolled actuary.
On September 14,2016,GRS issued their ActuarialImpact Statement whichmaybe found
attached.The Actuarial Impact Statement was prepared reflecting the impact to both classes
which are tobe enabled to take advantage of the proposed new Pension Plan,the General
EmployeesandAdministrative Management Service Class (AMSC).
The City requested that the City'sPensionPlanActuary,GabrielRoederSmith&Company
(GRS),completetherequired Actuarial ImpactStatement.GRS wasfirsthiredbythe City in
2001viaResolution 146-01-11294 toprovide the City withPensionActuarialConsulting
Services,which they have been doing ever since.
The Florida AdministrativeCode (60T-1.004(3)(a))states that anActuarialImpact Statement
mustbecertificatedandsignedanddatedbythe Plan Administratorandcontainthe following
information:
a.A description ofthe proposed amendment anda statement thattheactuarywas provided
the information necessary to evaluate the proposed amendment;
b.An estimate ofthecostof implementing the amendment,signed anddatedbyan enrolled
actuary,which discloses,ata minimum,sufficient information on both thebeforeand
Page 1 of 2
after amendment basis,sothatanotheractuary,unfamiliarwiththesituation,wouldbe
abletoappraisetheestimate.Ifany actuarial assumptions,techniques or methods arealso
changed,additionalinformation disclosing theeffect of suchactuarialchangesmustbe
provided;
c.AstatementindicatingwhethertheproposedchangeisincompliancewithPartVII,
Chapter 112,F.S.and Section 14,ArticleX of theState Constitution.
Nounitoflocalgovernmentshallagreetoa proposed changeintheretirementbenefitsor
liabilities ofalocal system,unlessthe administrator ofthe system,priorto adoption ofthe
changebythegoverningbody,hasissuedastatementof actuarial impactoftheproposedchange
uponthelocalretirementsystempriortothe last public hearing.
Based directly on information from the City'sPensionPlanActuary,(GRS),and their Actuarial
Impact Statement wecan make the following statement which was reviewed and verified by
GRS.
The savings provided by adopting the Ordinance amending the City's Pension Planis;an
annual estimated savings of $60,363 forGeneral Employees andan estimated annual savings
amount of $28,141 forAMSC,foranagrgregate estimated annualsavings amount of$88,505.
Below isaGRS reviewed and verified table which reflects the information based on GRS'
Actuarial Impact Statement.
PENSION IMPACT STATEMENT SUMMARY INFORMATION
Annual
Aggregate %of
City
Contribution
Based on
Description Salaries Contribution Current Plan
General Employees (Reflects 2/3 Participation Rate)
Administration Management Service Class (AMSC)
General Employees Tier II Pension Impact Cost
Administration Management Service Class Pension Impact Cost
General Employees Impact NetSavings
Administration Management Service Class Impact Net Savings
$1,637,049
$934,162
/7o"
7%
$114,593
$65,391
$54,230
$37,250
-$60,363
-$28,141
Total Annual Estimated Savings -$88,504
*Notallof the non-participating general employees are receiving a7%City contribution;however 7%
expresses the City's potential cost as employees may opt for that full benefit.
ATTACHMENTS
-Proposed Ordinance
-September 14,2016,GRS Actuarial Impact Statement
-Res.No 146-01-11294 -GRS
Page 2 of 2
GRS
Gabriel RoederSmith&Company One East Broward Blvd.954.527.1616 phone
Consultants &Actuaries Suite505 954.525.0083 fax
Ft.Lauderdale,FL 33301-1804 www.gabrielroeder.com
September 14,2016
Pension Board
South Miami Pension Fund
c/o Mr.Scott Baur
Pension Administrator
The Resource Centers,LLC
4360 Northlake Boulevard,Suite 206
Palm Beach Gardens,Florida 33410
Re:South Miami Pension Plan
Actuarial Impact Statement
Dear Scott:
As requested,weare pleased to enclose twelve (12)copies of our Actuarial Impact
Statement as of October 1,2015 forthe proposed Ordinance under the South Miami
Pension Plan(Plan)with theState of Florida (copy enclosed).
Background -The Plan is currently closedto General Employees hired onorafter
October 1,2011.General Employees notinthePlancan currently elect to participate in
the City's Defined Contribution (DC)Plan(s).
Proposed Ordinance -The proposed Ordinance:
>For General Employees
oAddaten percent (10%)capon employee contributions.
o Re-open thePlantoGeneral Employees effective October 1,2016.
General Employees currently inthe City's DC Plan willhavea one-time
optiontoelecttojointhePlanasaTierTwoGeneralEmployee.Credited
servicestartsatdate of hireforallpurposesexceptforpurposes of benefit
accrual.Creditedserviceforpurposes of benefit accrualstartsas of
October 1,2016.Normal retirement isage65and attainment often (10)
years of creditedservice.Finalaverage compensation istheaverage of
the highest eight (8)years of compensation.The benefit accrual rate
(multiplier)is 1.6%foreachyear of creditedservice.Fullvestingupon
completion often (10)years of credited service.Tier Two General
EmployeesAMSCmemberscontributeseven percent (7%)of
compensation.No supplemental cost-of-living adjustments (COLA).
Mr.Scott Baur
Septembers,2016
Page Two
>For Administration Management Service Class (AMSC)-Create a new class
ofbenefitsavailableto employees whoholdcertainmanagementpositions
effectiveOctober1,2016.Creditedservicestartsatdateofhireforallpurposes
exceptforpurposes of benefitaccrual.Creditedserviceforpurposes of benefit
accrualstartsas of October1,2016.Normalretirementisage65andcompletion
ofthree(3)yearsofcreditedservice.Earlyretirementisage55andcompletion
often (10)years of creditedservice.Benefitsarereducedforearly
commencement of retirement benefits.Finalaverage compensation istheaverage
ofthehighesteight(8)yearsofcompensation.Thebenefitaccrualrate
(multiplier)is1.6%foreachyear of creditedservice.Fullvestingupon
completion of three (3)years of credited service.AMSC members contribute
seven percent (7%)of compensation.No supplemental cost-of-living adjustments
(COLA).
Cost-Re-opening thePlantoGeneralEmployeeswithTierTwo Benefits resultsinan
increaseintheNetCityAnnualRequiredContribution of $54,230andresultsinan
increaseinEmployeeAnnualRequiredContributions of $49,111.Creation of aNew
Tier of BenefitsfortheAMSCresultsinanincreaseintheNetCityAnnualRequired
Contribution of $37,250andresultsinanincreaseinEmployeeAnnualRequired
Contributions of $65,391.Combined,Re-openingthePlantoGeneral Employees with
Tier Two Benefits PLUS Creation of a New Tier of Benefits for the AMSC results in an
increase inthe Net City Annual Required Contribution of $91,480 and results inan
increase in Employee Annual Required Contributions of $114,502.
Filins Requirements -Wehave prepared the Actuarial Impact Statement forfiling with
theState of Florida.Please notethatthis Statement must be signed and dated on behalf
of theBoard of Trustees.Copies of theOrdinanceupon passage atfirst reading along
withthesignedanddated Actuarial ImpactStatementare generally required tobefiled
with the State atthe following address:
Mr.Douglas E.Beckendorf,A.S.A.
Bureau of Local Retirement Services
Division of Retirement
Building 8
Post Office Box 9000
Tallahassee,Florida 32315-9000
WeunderstandtheStaterequiresfundingnolaterthanthefiscalyearnextfollowingthe
effective date of the increases in costs resulting fromthe Ordinance.
Pleaseforwardacopy of theOrdinanceuponpassageatsecondreadingtoupdateour
files.
Actuarial Assumptions and Methods,Plan Provisions,Financial Data.Member
CensusData-The actuarial assumptions andmethods,financialdataand member
Gabriel Roeder Smith 6c Company
Mr.Scott Baur
September 14,2016
Page Three
censusdataemployedforpurposesofourActuarialImpactStatementarethesame
actuarial assumptions andmethods,financial dataandmembercensusdatatobeutilized
forthe October 1,2015 Actuarial Valuation unless otherwise specified herein.
Inordertoprovideanestimatedimpactoncostspriortoemployee'selectionsweneeded
anassumptionsastotheelectionratesoftheemployees.Basedondiscussionswiththe
City,wehaveassumedtwo-thirdsofGeneralEmployeesnotinthePlanandalleligible
AMSC employees willelectto join thePlaneffective October 1,2016.
In addition,a norma]cost as of October 1,2015 was calculated to estimate the normal
cost attributable fortheplanyear beginning October 1,2016 forfunding purposes.
ThePlan provisions employedforpurposes of ourActuarialImpactStatementarethe
samePlan provisions tobeutilizedforthe October 1,2015 Actuarial Valuation as
modified above.
Administration Management Service Class positions are City Manager,City Attorney,
CityClerk,Assistant /Deputy City Manager,Finance Director /Chief Financial Officer,
Chief of Police,Planning and Zoning Director,Building Director,Directory of Public
Works,Chief Administrative Officer (currently Finance Office Manager),Chief
Procurement Officer (currently Purchasing Manager)and Parks and Recreation Director.
This Actuarial Impact Statement is intended to describe the estimated future financial
effects of the proposed Plan provision changesonthePlan,andisnot intended asa
recommendationinfavorofthebenefitchangesorinopposition of thePlanprovision
changes.
Ifallactuarialassumptionsaremetandifallfutureminimumrequiredcontributionsare
paid,PlanassetswillbesufficienttopayallPlanbenefits.Planminimumrequired
contributionsaredeterminedincompliancewiththerequirements of theFlorida
Protection of PublicEmployee Retirement BenefitsActwith normal cost determined asa
levelpercent of coveredpayrollandaleveldollaramortizationpaymentusinga
maximum amortization period of 25years.
TheUnfundedActuarialAccruedLiability (UAAL)maynotbeappropriateforassessing
thesufficiency of Planassetstomeettheestimatedcostofsettlingbenefitobligationsbut
maybe appropriate for assessing theneedfororthe amount of future contributions.The
UAAL would be different if it reflected the market value of assets rather than the
smoothed actuarial value of assets.
Thesecalculationsarebaseduponassumptionsregardingfutureevents.However,the
Plan's longtermcostswillbedeterminedbyactualfutureevents,whichmaydiffer
Gabriel Roeder Smith8c Company
Mr.Scott Baur
September 14,2016
Page Four
materiallyfromthe assumptions made.These calculations arealsobaseduponpresent
PlanprovisionsthatarereferencedinthisActuarialImpactStatement.
Ifyouhavereasontobelievethe assumptions usedare unreasonable,thePlanprovisions
areincorrectlydescribedasreferenced,importantPlanprovisionsrelevanttothis
proposedActuarialImpactStatementarenotdescribedorthatconditionshavechanged
sincethecalculationsweremade,youshouldcontacttheundersignedpriortorelyingon
information inthis Actuarial ImpactStatement.
Future actuarial measurements maydiffer significantly fromthe current measurements
presentedinthisreportduetosuchfactorsasthefollowing:Planexperiencediffering
fromthatanticipatedbythe economic ordemographicassumptions;changesineconomic
ordemographic assumptions;increasesordecreasesexpectedaspart of thenatural
operation of the methodology usedforthese measurements (suchastheend of an
amortization period);andchangesinPlan provisions or applicable law.Duetothe
limitedscope of the actuary's assignment,the actuary didnot perform an analysis of the
potential range of such future measurements.
This Actuarial Impact Statement shouldnotbereliedonforany purpose otherthanthe
purpose described inthe primary communication.Determinations of the financial results
associated withthe benefits describedinthisreportina manner otherthanthe intended
purpose may produce significantly different results.
This Actuarial Impact Statement hasbeen prepared by actuaries whohave substantial
experiencevaluingpublicemployeeretirementplans.Tothebest of ourknowledgethe
informationcontainedinthisreportisaccurateandfairlypresentstheactuarialposition
ofthePlanas of theActuarialImpactStatementdate.Allcalculationshavebeenmadein
conformitywithgenerallyacceptedactuarialprinciplesandpractices,withtheActuarial
Standards of Practice issuedbytheActuarialStandardsBoardandwith applicable
statutes.
ThisActuarialImpactStatementmaybeprovidedtopartiesotherthantheBoardonlyin
itsentiretyandonlywiththepermissionofanapprovedrepresentative of theBoard.
Thesigning actuaries are independent of thePlansponsor.
If youhavereasonto believe thattheinformation provided inthis Actuarial Impact
Statementisinaccurate,orisinanywayincomplete,orifyouneedfurtherinformationin
ordertomakeaninformeddecisiononthesubjectmatterofthisreport,pleasecontactthe
undersigned prior to making such decision.
TheundersignedareMembers of theAmericanAcademyofActuariesandmeetthe
Qualification Standards of the American Academy of Actuaries to render theactuarial
opinion contained herein.
Gabriel Roeder Smith &Company
Mr.Scott Baur
September 14,2016
Page Five
Ifyoushouldhaveanyquestionconcerningtheaboveorifwemaybe of further
assistance with this matter,please donot hesitate to contact us.
Sincerest regards,
A&U^'J*-^%^«-
Lawrence F.Wilson,E.A.,A.S.A.
Senior Consultant and Actuary
Enclosures
Kelly L.Adams,E.A.,A.S.A.
Consultant and Actuary
Gabriel Roeder Smith6c Company
ORDINANCE NO.
AnOrdinanceamendingtheSouthMiamiPensionPlanto implement theCollective
Bargaining Agreement between the City of South Miami and AFSCME Local 3294
andcreatinganew Administration ManagementServiceClass (AMSC)of employees
intheSouthMiamiPensionPlanfortheCity of SouthMiamiandsettingforththe
terms of thePlanasrelatedto the AMSC ;by Amending Chapter 16,Article II,
Section 16-12,"Definitions"by Adding Definitions for Second Tier Member and
AMSC and amending thedefinition of final averagecompensation,asitappliesto
the AMSC ;by amending Section16-13,"Eligibility"toreopenthePlanfor certain
General Employees andfor the AMSC ;by amending Section 16-14,"Pension
benefits and retirement date"toset out the benefits forthosepersons who willjoin
the Second Tier andfor those personsin the AMSC ;by amending Section 16-17
"Termination Benefits"to provide a vesting schedule for the AMSC ;by amending
Sec.16-19,"Contributions"toplacea limit on the total contributions made in any
fiscal year by General Employees and toset the contribution rate for the AMSC ;by
amending Section 16-21,"Purchase of Credited Service"by allowing certain
employees and elected officers to buy credited service.
WHEREAS,the Cityof South Miami and the American Federation of State,County
and Municipal Employees,AFL-CIO,City Employees Local 3294 (hereinafter "Union"),have
entered intoa new Collective Bargaining Agreement ("Agreement"),effective June 22,2016
to June 21,2019;and
WHEREAS,itis the purpose and intention of the Agreement to provide for salaries,
fringe benefits and other terms and conditions of employment except as otherwise provided
by Constitution,Statute,Charter,Ordinance,Administrative Order or Personnel Rules and
Regulations;and
WHEREAS,Florida law requires that if any provision ofa collective bargaining
agreement isinconflictwith any ordinance over which the chief executive officer has no
amendatory power,the chief executive officer shall submit to the appropriate governmental
body having amendatory power a proposed amendment to such ordinance;and
WHEREAS,the City Commission has decided to create a new class of employees,
comprised of the Administration Management Service Class ("AMSC")and to permit
members of the AMSCtojoin the South Miami Pension Plan and to provide for the terms of
membership;
WHEREAS,the City Commission has received and reviewed an actuarial impact
statement related to such amendments;and
WHEREAS,the City Commission wishes to change the terms of the South Miami
Pension Plan to effectuate the changes called forin the Agreement;and
1
WHEREAS,theCityCommission deems ittobe in thepublic interest toprovide these
changes to the pension plan;
NOW,THEREFORE,BE IT HEREBY ORDAINED BY THE MAYOR ANDCITY
COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,THAT:
Section 1:That Chapter 16Article II,Section 16-12,"Definitions"oftheCityofSouth
Miami Code of Ordinances is hereby amended by adding toit the following definitions:
Definitions.
***
AMSC Member shall mean the Administration Management Service Class.Itwill be
composed of employees who hold only the following positions:
City Manager
City Attorney
City Clerk
Assistant /Deputy City Manager
Finance Director/Chief Financial Officer
Chief of Police
Planning and Zoning Director
Building Director
Director of Public Works
Chief Administrative Officer (currently Finance Office Manager)
Chief Procurement Officer (currently Purchasing Manager)
Parks and Recreation Director
Employee shall mean any person employed full-timeby the employer ona regular,
permanent basis.Elected officials shall be excluded.The city manager,cityclerk,and any
employees persons defined as department heads within this section,shall be included within
the definitionof employee,however such positions shallbe allowed a one-time opportunity to
opt out,priortoeligibility date as defined in section 16-13 ofthis Code,(inwriting)ofthis
pension plan.
***
Second Tier Member shall mean general employees who are hired on or after October 1,
2016 who elect to ioin the South Miami Pension Plan,and general employees who were hired
prior to October 1,2016 and not participating in the South Miami Pension Plan as of October
1,2016 who elect to ioin the South Miami Pension Plan.
Section 2:ThatChapter 16 Article II,Section 16-12,"Definitions"ofthe City ofSouth
Miami CodeofOrdinancesisherebyamendedbyamendingthe definition ofaverage final
compensation as follows:
Final averagecompensation shallmeantheparticipant's annual compensation,as
determined bytheemployer,acting in a uniform andnondiscriminatory manner.For general
employees,except for Second Tier Members and AMSC Members effective October 1,
2011,final average compensation shallbe averaged overthelastfive-yearperiod,provided
however final average compensation over thelast five-year period shall notbe less than the
final average compensation as of September 30,2011,under the definition offinal average
compensation which existed as of September 30,2011.For Second Tier Members,final
average compensation will be the average of the highest eight (8)years of credited service.
For AMSC Members,final average compensation will be the average of the highest eight (8)
years of credited service.In the event an AMSC Member has less than eight (8)years of
credited service,final average compensation will be the average of all the participant's annual
compensation over the period for which the Member received credited service.For members
covered under the police officers and sergeants collective bargaining agreement,final
average compensation shall be the best five-year period of the police officer or sergeant's
career with the Cityof South Miami,provided however final average compensation over the
best five-year period shall not be less than the final average compensation as of September
30,2011,under the definition offinal average compensation which existed as of September
30,2011.The best five(5)years is defined as the highest five(5),twenty-six (26)
consecutive pay periods withina police officer or sergeant's career and such consecutive
year periods shall not overlap one another.For all other members,final average
compensation shall be averaged over the last three-year period -but not less than the
average of the participant's five(5)best years of annual compensation during the last ten (10)
years of service.For all members final average compensation will end 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.
Section 3:That Chapter 16 Article II,Section 16-12,"Definitions"of the Cityof South
Miami Code of Ordinances is hereby amended by amending the definition of credited service
as follows:
Credited service shall mean participant's continuous employment with the employer
computed in completed calendar months while a member of the South Miami Pension Plan.
For Second Tier Members and AMSC Members who elect to ioin the South Miami Pension
Plan as a result of this Ordinance,credited service shall include continuous employment prior
to becoming a member of the South Miami Pension Plan for all purposes except for purposes
of benefit accrual.Leaves of absence authorized by the employer with periods of absence in
connection withmilitary service during which the participant's employment rights were
protected bylaw shall not be considered to have broken the continuity ofhis employment;
provided,that the employee has become re-employed by the employer withintimeperiod
provided in The Uniform Service Employment and Reemployment Rights Act (USERRA)and
3
forpoliceofficers Chapter 185 of the Florida Statutes after honorable discharge from the
military service.Further,that the employee has paidan amount equal to the contributions that
would have been made during such leave of absence based on the participant's salary
immediately priorto entry intomilitary service,provided that police officer participants shall
notbe required to make such payment of contributions per Chapter 185,F.S.No employee
shall be eligible to become a participant during such absence.
Section 4:That Chapter 16 Article II,Section 16-13,""Eligibility"of the Cityof South
Miami Code of Ordinances is hereby amended as follows:
Eligibility.
(a)Each employee employed by the employer on October 1,1965,shall be a
participant on the first participation date onwhichhe has completed two(2)years of credited
service and has attained his twenty-fifth birthday.
(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/her 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.
(c)It shall become mandatory forall employees hired on or after October 1,1995,
tojoin the pension plan after completion of six (6)months of employment by the city.
(d)All general employees who are hired by the Cityof South Miamion or after
October 1,2011,will not be eligible to participate in the South Miami Pension Plan.All
general employees hired on or after October 1,2011,shall join the ICMA-RC a_defined
contribution plan of the Cityof South Miami(DC)457 Plan.
(e)Employees who are hired onor after October 1,2011,and are classified as
police officer or sergeant,shall enter the pension plan immediately upon being hired as a
sworn law enforcement officer.
(f)All general employees hired onor before September 30,2011,will have a one
time option to either remain in the South Miami Pension Plan or elect to discontinue
membership.
(1)For general employees who choose to discontinue membership in the South
Miami Pension Plan,employees shall provide inwritingno later than
December 31,2011,to the City's Human Resources Department,a letter
stating their choice to discontinue membership in the South Miami Pension
Plan.The letter shall state the percentage the employee will contribute
towards the defined contribution planlCMA-RC 457 which contribution rate
shall be effective until September 30,2012.The effective date of the change
ison the first pay period in January 2012.
(2)Should a general employee choose to discontinue membership in the South
Miami Pension Plan,the general employee will be refunded the contribution
which they contributed during their participation in the South Miami Pension
Plan and may rollover such amount into the defined contribution plannewty
established ICMA RC 457 Plan.
(g)Notwithstanding sections (a)through (f)above,general employees who are not
participating in the South Miami Pension Plan as of October 1,2016,and general employees
hired on or after October 1,2016 shall be given a one-time irrevocable election to either
become a Second Tier Member of the South Miami Pension Plan or ioina defined
contribution plan of the City of South Miami.The irrevocable election must be made within
ninety (90)days from the later of the effective date of this Ordinance or date of hire.If no
election is made,the general employee will be placed in the South Miami Pension Plan.
(h)All persons who hold positions listed in the AMSC in the definition section
above and who are not participating in the South Miami Pension Plan as of October 1,2016,
shall be given a one-time irrevocable election to either ioin the South Miami Pension Plan or
ioin a defined contribution plan of the City of South Miami.The irrevocable election must be
made within ninety (90)days from effective date of this Ordinance.All AMSC Members who
are,on the effective date of this Ordinance,participating in the South Miami Pension Plan will
have their accrued benefits as of the date of the adoption of this Ordinance reflect their
compensation through date of termination for purposes of final average compensation as
defined immediately prior to the effective date of this ordinance.
All persons who are not AMSC Members and are not participating in the South Miami
Pension Plan as of October 1,2016,but thereafter become a member of the AMSC in the
definition section above,upon becoming a member of the AMSC shall be given a one-time
irrevocable election to ioin the South Miami Pension Plan or ioin a defined contribution plan of
the City of South Miami.The irrevocable election must be made upon becoming a member
of the AMSC.All those general employees,who,after the effective date of the Ordinance,
become AMSC Members will have their accrued benefits as of the date they become AMSC
Members reflect their compensation through date of termination for purposes of final average
compensation as defined immediately prior to the effective date they become AMSC
Members.
(i)Notwithstanding Sections (a)through (h)above,all persons who join the South
Miami Pension Plan on or after the effective date of this Ordinance will not be reguired to
have completed six (6)months of service prior to joining and are reguired to participate
immediately upon hire or upon election to ioin for members who were hired prior to the
effective date of this Ordinance.
Section 5.That Chapter 16 Article II,Section 16-14,"Pension benefits and retirement
date"of the Cityof South Miami Code of Ordinances is hereby amended as follows:
(a)Retirement date.Thenormalretirementdate with full unreduced pensionbenefitsfora
participant,shall be as follows:
(1)Generalemployees.Shallbethefirstdayofthe calendar monthcoincident with
or,otherwise,next following the later of the participant's sixtieth birthday and the date
onwhich the participant has completed ten(10)years of credited service.General
employees participatingintheplan as of September 30,2011,will remaineligibleto
retireatthe age of fifty-five (55)andthecompletionoften(10)years ofcredited
service and obtain their accrued benefits earned through September 30,2011,at such
time.Benefit accruals earned onor after October 1,2011,including increases due to
increases infinal average compensation,may be paidat 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 planon 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 fifty-five (55)and ten
(10)years of credited service reduced one-fifteenth (1/15th)for each year benefit
commencement precedes the later of age sixty(60)and ten(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 sixty(60)and ten (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 fifty-five
(55)and ten (10)distribution and then keep working.
(2)Second Tier Members.The earlier of (a)age 65 and completion of ten (10)
years of credited service:or (b)completion of thirty-three (33)years of credited service.
(3)AMSC Members.The earlier of (a)age 65 and completion of three (3)years
of credited service:or (b)completion of thirty-three (33)years of credited service.
(A)Earlyretirement.
(1)A general employee participant as of September 30,2011,and AMSC
Participants 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
whichis entitled upto early retirement date in accordance with subsection (b).
Table—General Employee participant as of September 30,2011,AMSC Participants
Participant—Percentages for early retirement date
Years prior to normal retirement date Percentage
Years prior to normal retirement date Percentage
1 93.33
2 86.67
3 80.00
4 73.33
5 66.67
6 63.33
7 60.00
8 56.67
9 53.33
10 50.00
(2)Police officers.Shall be 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.
(3)Vesting of benefits uponnormal retirement date.Any provision of this plan to
the contrary notwithstanding,a member's accrued benefit shall become one hundred
(100)percent vested upon the attainment of the normal retirement date.
(b)Amount of pension.The yearly amount of pension payable toa participant on the first
day of the month coincident withor next following the participant's retirement date shall be an
amount equal to the participant's number of completed years of credited service multipliedby
a percentage offinal average compensation as stated herein.
(1)Basic benefit.
a.A basic benefit for participant's retiring prior to October 1,1970,shall be
determined bymultiplying 1.6 percent of the participant's final average compensation
by the number of completed years of credited service,excluding the firsttwo(2)years
of such service and any additional service completed by the participant priorto the
participant's twenty-fifth birthday.
b.However,as to those participants who became an employee subsequent to
October 1,1973,there shallonlybe excluded thefirstsix(6)months of such service
plusanyadditional service completedpriortothe participant's twentiethbirthday
and/or additional service completed priorto the participant becoming eligibletojoin
this pension plan.
(2)General employees.
a.Effective October 1,1993,the pension benefit accrual rate (multiplier)for
general employee participants,shallbe increased from 1.6 percent to 1.8 percent for
services performed in the 1993-1994 fiscal year.
b.Effective October 1,1994,the pension benefit accrual rate (multiplier)for
general employee participants,shallbe increased from 1.8 percent to 1.9 percent for
services performed in the 1994-1995 fiscal year.
c.Effective October 1,1995,the pension benefit accrual rate (multiplier)for
general employee participants shall be increased from 1.9 percent to 2.25 percent for
services performed in the 1995-1996 fiscal year.
d.Effective October 1,1996,the pension benefit accrual rate (multiplier)for
general employee participants shall be increased from 2.25 percent to 2.50 percent for
services performed in the 1996-1997 fiscal year.Effective October 1,2001,the
pension benefit accrual rate (multiplier)for general employee participants shall be 2.25
percent forall services performed through September 30,1998.
e.Effective October 1,1997,the pension benefit accrual rate (multiplier)for
general employee participants shall be increased from 2.50 percent to 2.75 percent for
services performed in the 1997-1998 fiscal year and thereafter.Effective October 1,
2001,the pension benefit accrual rate (multiplier)for general employee participants
shall be 2.50 percent for services performed in the 1998-1999 fiscal year and 2.75
percent for services performed thereafter.
f.Effective October 1,2002,the pension benefit accrual rate (multiplier)for
general employee participants shall be 2.50 percent forall services performed through
September 30,1999,and 2.75 percent for services performed thereafter.
g.For all service earned onor after October 1,2011,the pension benefit accrual
rate (multiplier)for general employee participants shall be reduced from 2.75 percent
to 2.25 percent.
lL For all service earned on or after October 1,2016,by Second Tier Members the
pension benefit accrual rate (multiplier)shall be 1.60 percent.
L For all service earned on or after October 1,2016 by AMSC Members of the
South Miami Pension Plan,the pension benefit accrual rate (multiplier)will be 3.00
percent.
8
(4)Supplemental benefit.A supplemental benefit,ifanyis payable,determined on each
valuation date which occurs after the participant's normal retirement date.The supplemental
benefitshallbe equal to(1)an amount determinedatthefirst applicable valuation date by
multiplying the yearly amount of basic benefitbythe percentage,ifany,bywhich the current
index exceeds the base index and (2)an amount determined at each subsequent valuation
date,where the current index exceeds the priorindex,or where the priorindex exceeds the
current index,by reducing such sum bythe product of such sum and the percentage by
which the prior index exceeds the current index;provided,however,that inno event shall the
supplemental benefit payable at any timebe greater than the excess of(1)the basic benefit
increased at three (3)percent compounded annually from the initial valuation date applicable
to the participant over (2)the basic benefit.Inno event shall the supplemental benefit be
reduced below zero so as to affect the amount of basic benefit.Supplemental benefits shall
commence or be adjusted as of each October 1 and shall continue thereafter for the following
eleven (11)months.Effective October 1,2011,the supplemental benefit Cost ofLiving
Adjustment (COLA)for general employees (eligible retirees and/or beneficiaries)is eliminated
for future benefit accruals,including increases in the current accrued benefit due to increases
infinal average compensation.General employees will receive the supplemental benefit on
their accrued benefit as of September 30,2011.Second Tier Members shall not be eligible
for the supplemental benefit cost of living adiustment.AMSC Members shall not be eligible
for the supplemental benefit cost of living adiustment for benefit accruals on or after October
1,2011.
Section 6.That Chapter 16,Article II,Section 16-17(b),"Termination of
Employment",shall be amended to provide as follows:
(b)Any such participantshall be entitled to elect Option1orOption2,as described
below,except that Option 2 shall be automatically considered as having been elected
by the Participant unless Option1is elected before the participant's normal retirement
date.
Option 1:A cash payment ofan amount equal to the aggregate of the contributions made
by the participant priortoterminationof employment.Provided that policeofficer
participants eligibletowithdrawtheir contributions fromthis pension planmayonly
withdraw their contributions without interest.
Option2:Pension benefits commencing on what otherwise would have been thenormal
retirement date of the participant inan amount equal to the greater of that which can be
providedby the aggregate ofthe contributions made by the participant priorto the
termination of employment,with credited interest compounded annually at the rate of
three (3)percent per annum fromtheendofthe year of payment to the date onwhich
pensionbenefits commence;oranamountdeterminedby multiplying theamountof
pensionto which theparticipantisentitled in accordance with sectionsubsection 16-
14(a)or 16-14(b),whicheverisapplicablebya percentage determined in accordance
withthe following schedule onthe basis ofthelengthof credited service.
Number of years
of credited service
Percentage
Less than 10 0
11 10
12 20
13 30
14 40
15 50
16 60
17 70
18 80
19 90
20 or more 100
Policeofficer participants,includingbargainingunit employees,shallbeone hundred (100)
percent vested in the retirement planupon completion often (10)years continuous full-time
swornpolice service.Accordingly,effective October 1,1993,allpoliceofficer participants,
including members of the bargaining unit,who are inthisplan effective October 1,1993 and
have between ten (10)years and twenty(20)years of continuous swornpolice service will
be one hundred (100)percent vested.
All general employees shallbeonehundred (100)percent vested inthe pension planupon
completion often (10)years of continuous credited service.All Second Tier Members shall
be one hundred (100)percent vested in the pension plan upon completion often (10)years
of continuous service.AMSC Members shall be one hundred (100)percent vested in the
10
pension plan upon completion of three (3)years of continuous service.General
employees and AMSC Members whoopttoiointhe defined contribution planof the City of
South Miami shallvestafterone (1)yearofservice.Accordingly,effective October1,1995,
all generalemployeeswhoare in this plan asofOctober1,1995,andhaveten (10)years
ormoreof continuous service will be one hundred (100)percent vested.
Section 7.That Chapter 16,Article II,Section 16-19 "Contributions"is amended as
follows:
(a)Each participant,except as otherwise provided herein,shall contribute in each calendar
year towards the cost ofthe participant's pension an amount equal to three (3)percent of the
participant's earnings.With the exception of police officer participants,Except as otherwise
provided herein,no participant shall make any contributions toward the cost of any past
service pension towhich the participant is entitled under thisplan.The employer shall
contribute the balance of the cost,actuarially determined,ofproviding the benefits of the
plan.The employer's contributions shall be deposited into the pension planon at least a
quarterly basis.Effective October 1,1995,the pension contribution forall general employee
participants,including those general employees that are now members of the retirement
system,shall be increased from three (3)percent tofive(5)percent of earnings.Effective
October 1,2001,the pension contribution forall general employee participants,including
those general employees that are now members of the plan,shall be increased fromfive(5)
percent to seven (7)percent of earnings.Police officer participant including bargaining unit
employees,that are now members of the plan and any police officers who join the plan in the
future shall,effective October 1,1993,have their contribution increased from three (3)
percent tofive(5)percent of earnings.Effective October 1,2001,police officer participants
shall contribute 7.5 percent of earnings.
(1)General employee participants.Should the employer's annual contribution be
actuarially determined to exceed twelve (12)percent,both the employer and the participants
shall share equally the amount in excess of twelve (12)percent for that fiscal year Effective
October 1,2005,should the total participant and employer's annual contribution be actuarially
determined to exceed fourteen (14)percent,both the employer and the general employee
participants shall share equally the amount in excess of fourteen (14)percent for that fiscal
year.Notwithstanding the above,the maximum general employee contribution rate will be
10%of earnings for fiscal years beginning on or after October 1,2016.
(2)Police officerparticipants.Effective October 1,2004,if the totalpoliceofficer
participants'contributions and employees contribution exceeds fifteen(15)percent of
covered policepayrollfor any fiscal year,the excess over fifteen (15)percent shall be shared
equally by the employer and policeofficer participants.Police officer participant contributions
shall be deposited in the plan immediately after each pay period.Effective October 1,2001,
an amount actuarially determined,toprovidefor certain minimum benefits required by
Chapter 185,F.S.shall be paidfrom the South Miami Police Officers Retirement Trust Fund
totheplan each year,regardless ofthegrowthordiminutioninfuture Chapter 185,F.S.
funds.
11
(3)Second Tier Member participants.SecondTierMembersshallcontributethree (3)
percent of earnings.
(4)AMSC Member participants in the South Miami Pension Plan.AMSC Membersshall
contribute seven (7)percent of earnings.
(5)General employees and AMSC Member participants inthe defined contributionplan
of the City of South Miami referenced in Section 16-13 above.General employees
and AMSC Member participants in the defined contribution plan of the City of South
Miami referenced in Section 16-13 above shall contribute a minimum of three (3)
percent of earnings.The City of South Miami shall contribute seven (7)percent of
earnings.
(6)[Otherparticipants.]Effective October 1,2009,and for one (1)fiscal year thereafter
participant contributions for the following employee designations shall be reduced from the
above calculated percentages by two (2)percentage points:
(a)Nonbargaining unit employees.
(b)Members of the AFSME bargaining unit.
(c)Members of the police lieutenants and captains bargaining unit.
(7)415(c)Limitations.To the extent applicable,all employee contributions shall be in
accordance with Subsection 415(c)of the Internal Revenue Code and all regulations
thereunder,which subsections and regulations are incorporated herein by reference.
(b)All amounts paid by the employer to the insurance company in accordance with this plan
shall represent irrecoverable contributions,except as may be otherwise provided in
subsection 16-22(b).
(c)The employer shall pay the reasonable expenses of the pension board,including any
expenses for legal and actuarial services.
Section 8.That Chapter 16 Article II,Section 16-21,"Purchase of Credited Service"
of the Cityof South Miami Code of Ordinances is hereby amended as follows:
Purchase of credited service.
(a)Police officer participants,including bargaining unit employees shall be allowed
to purchase credit for active duty in the U.S.military service,priorto employment as apolice
officerwiththecityin accordance withUSERRAand applicable state law.Thisprovisionshall
not cover reserve active duty or weekend drill.Police officers electing to purchase prior
militarytime will do so at total cost to the participant withno cost assumed by the city.
(b)All participants in the city pension plan shall be allowed to purchase credit for
immediate past city service uptoamaximumoffive(5)years in the city pension plan
pursuant to procedures promulgated at the timeof such purchase.All costs for approved
12
purchase of past city services shallbeonehundred (100)per cent bornebytheparticipant
with nocost assumed bythe city.Shouldthe participant bepermittedto purchase past city
service over a period of time,the effective date of credited service shall be on the date such
purchase is paid infull.
(c)Any participant classified as apoliceofficerwho retires between November 1,
2011,and before November 15,2011,shallbeeligiblefora retirement incentive,whichshall
be equal to normal retirement provided:
(1)The Cityof South Miami will pay for the full actuarial cost,no later than
the earlier of benefit commencement or December 1,2011,ofupto eight
(8)additionalmonthsofanypriorcredited service earned bytheelecting
participant police officer before heor she became a participant in the
South Miami Pension Plan.
(d)For all Second Tier Members hired on or after October 1,2011,the following
will apply:
(1)Second Tier Members will be given an option,within ninety (90)days after the
effective date of this Ordinance amendment,to purchase continuous service for
purposes of benefit accrual for any and all years of service,up-to the number of
years they have worked at the City of South Miami at any time while employed
at the City of South Miami ina position eligible for participation in the South
Miami Pension Plan.Employees must pay the full actuarial cost of the service
they purchase,as calculated by the South Miami Pension Plan's actuary,and
such purchase will be at the member's sole expense.The cost of obtaining the
actuary's calculation of the service purchase will be paid one time by the Plan.
The cost of obtaining any subseguent calculation will be at the Plan member's
expense.The pension benefits purchased for all persons exercising this service
purchase option are the benefits for Second Tier Members including the
pension benefit accrual rate (multiplier)of 1.6%.
(e)For all AMSC Members hired on or after October 1,2011,the following will
apply:
(1)All AMSC Members who did not previously participate in the South
Miami Pension Plan,will be given an option,within ninety (90)days after the
effective date of this Ordinance amendment,to purchase continuous service for
purposes of benefit accrual for any and all years of service,up to the number of
years they have worked at or been an elected officer for the City of South Miami
at any time while employed at or serving as an elected officer for the City of
South Miami ina position eligible as of October 1,2016,for participation in the
South Miami Pension Plan.AMSC Members must pay the full actuarial cost of
the service they purchase,as calculated by the South Miami Pension Plan's
actuary,and such purchase will be at the AMSC Member's sole expense.The
cost of obtaining the actuary's calculation of the service purchase will be paid
one time by the Plan.The cost of obtaining any subseguent calculation will be
13
at the Plan member's expense.The pension benefits purchased for all persons
exercising this service purchase option are the benefits for all AMSC Members
including the pension benefit accrual rate (multiplier)of 3.0%.
Section 9.Rules of Construction.This ordinance will be construed in accordance
with Florida statutory law and Florida case law.
Section 10.Codification.The provisions ofthis ordinance shall become and be
made partofthe Code of Ordinances oftheCityofSouth Miami as amended;thatthe
sections ofthis ordinance maybe renumbered or re-lettered to accomplish such intention;
and that the word "ordinance"may be changed to "section"or other appropriate word.
Section 11.Severability.Ifany section,clause,sentence,or phrase ofthis
ordinance isfor any reason heldinvalidor unconstitutional bya court of competent
jurisdiction,thisholdingshallnotaffectthevalidityofthe remaining portions ofthis ordinance.
Section 12.Ordinances in Conflict.All ordinances or parts of ordinances and all
section and parts of sections of ordinances in direct conflict herewith are hereby repealed.
Section 13.Effective Date.This ordinance shall become effective upon enactment.
PASSED AND ENACTED this
ATTEST:
CITY CLERK
1st Reading
2nd Reading
day of
READ AND APPROVED AS TO FORM:
LANGUAGE,LEGALITY AND
EXECUTION THEREOF
CITY ATTORNEY
14
2016.
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Welsh
Commissioner Edmond:
Commissioner Harris:
Commissioner Liebman:
South Miami Pension Plan
Actuarial Impact Statement as of October 1,2015
A.Description of Proposed Amendment
Re-openthePlantoGeneralEmployees.CurrentGeneralEmployeesnotinthePlanandGeneralEmployees
hiredonorafterOctober1,2016 willbegivenaonetimeoptiontojointhePensionPlaneffectiveOctober 15
2016.DependingonjobclassificationnewmemberswillparticipateinTierTwoortheAdministration
Management Service Class (AMSC).
General Employees -Current Members
Maximumgeneralemployeecontributionwillbetenpercent (10%)of pay.
General Employees -Tier Two
Full vesting upon completion often (10)years of creditedservice.
Futureservice benefit multiplier is1.6%.
Creditedservicefromdate of hireisusedforallpurposesexceptbenefitaccruals.
FinalAverage Compensation willbetheaverage of thehighesteight(8)years of compensation.
Normal retirement istheearlier of (a)attainedage65andcompletion often (10)years of creditedserviceor(b)
completion of thirty-three (33)years of credited service.
Employees will contribute three percent (3%)of pay.
Nocost of living adjustments willbe provided.
Administration Management Service Class (AMSC)
Employees whoholdthe following positions willbelongtothe AMSC.
City Manager
City Attorney
City Clerk
Assistant /Deputy City Manager
Finance Director /Chief Financial Officer
Chief of Police
Planning and Zoning Director
Building Director
Director of Public Works
Chief Administrative Officer (currently Finance Office Manager)
Chief Procurement Officer (currently Purchasing Manager)
Parks and Recreation Director
South Miami Pension Plan
Actuarial Impact Statement as of October 1,2015
A.Description of Proposed Amendment (cont'd)
Administration Management Service Class (AMSC)(cont'd)
Fullvestingupon completion of three(3)years of creditedservice.
Futureservicebenefit multiplier is3.0%.
FinalAverage Compensation willbetheaverageofthehighesteight(8)years of compensation.
Normalretirementistheearlier of (a)attainedage65andcompletion of three(3)years of creditedserviceor
(b)completion of thirty-three(33)years of creditedservice.
Early retirement isattainedage55andcompletion often (10)years of creditedservicewithbenefitsreducedby
1/15 foreachofthefirst5yearspriorto normal retirement and1/30foreachofthenextfiveyearspriorto
normal retirement.
AllAMSC members willcontributesevenpercent(7%)ofpay.
AMSC members currentlyinthePlanas General Employees willhavetheirservicefrozenfor benefits accrued
asaGeneralEmployeeas of September30,2016.
Nocostoflivingadjustmentswillbeprovided.
B.An estimate ofthecostof implementing this amendment (see attachment)
C.Inmy opinion,the proposed changes arein compliance with Part VII,Chapter 112,Florida
Statutes and Section 14,ArticJp~X ofthe State Constitution.
mt/LAQ +S
South Miami Pension Plan
Actuarial Impact Statement as of October 1,2015
(General Employees)
A.Participant Data
1.Active participants
2.Retiredparticipantsandbeneficiaries
receiving benefits
3.Disabled participants receiving benefits
4.Terminated vested participants
5.Annualpayroll of active participants
6.Expectedpayroll of activeemployeesforthe
following year
7.Annual benefits payable tothose currently
receiving benefits
B.Assets
1.Market Value of Assets
2.Smoothed Actuarial Value of Assets
Preliminary
Valuation
10/01/2015
32
Addition of
Tier Two
10/01/2015
75
Addition of
Tier Two &AMSC
10/01/2015
84
$
25
0
4
1,534,040 $
25
0
4
3,171,089 $
25
0
4
4,105,251
$1,534,040 $3,171,089 $4,105,251
$579,427 $579,427 $579,427
$
$
13,584,839
13,547,393
$
$
13,584,839
13,547,393
$
$
13,584,839
13,547,393
Gabriel Roeder Smith &Company
South Miami Pension Plan
Actuarial Impact Statement as of October 1,2015
(General Employees)
C.Liabilities
1.Actuarial present value of futureexpectedbenefit
payments for active members
a.Retirement benefits
b.Vesting benefits
c.Death benefits
d.Disability benefits
e.Refunds
f.Total
2.Actuarial present value of future expected benefit
payments for terminated vested members
3.Actuarial present value of future expected benefit
payments for members currently receiving benefits
a.Service retired
b.Disability retired
c.Beneficiaries
d.Miscellaneous
e.Total
4.Total actuarial present value of future
expected benefit payments
5.Actuarial accrued liabilities
6.Unfunded actuarial liabilities
Preliminary
Valuation
10/01/2015
Addition of
Tier Two
10/01/2015
Addition of
Tier Two &AMSC
10/01/2015
$4,440,425 5!5,041,623 $5,536,120
658,690 863,694 923,337
26,079 30,271 32,962
299,879 359,412 385,575
46,783 59,750 60,081
5,471,856 $6,354,750 6,938,075
1,029,283 $1,029,283
6,982,994
0
0
66,279
6,982,994
0
0
66,279
$7,049,273 $7,049,273
$13,550,412 $
$12,595,335 $
$(952,058)$
14,433,306
12,595,335
(952,058)
1,029,283
6,982,994
0
0
66,279
$7,049,273
$15,016,631
$12,595,876
$(951,517)*
*Reflectstransfer of twocurrentGeneralEmployeeMemberstoAMSC
-2-
Gabriel Roeder Smith &Company
South Miami Pension Plan
Actuarial Impact Statement as of October 1,2015
(General Employees)
D.Statement of Accumulated Plan Benefits
1.Actuarialpresentvalue of accumulated
vested benefits
a.Participantscurrentlyreceivingbenefits
b.Other participants
c.Total
2.Actuarial present value of accumulated non-
vestedplan benefits
3.Totalactuarialpresentvalue of accumulated
plan benefits
E.Pension Cost
1.Totalnormal cost (including expenses)
2.Paymentrequiredtoamortizeunfundedliability
3.Interest adjustment
4.Totalrequired contribution
5.Item4asa percentage of payroll
6.Estimated member contributions
7.Item6asapercentage of payroll
8.Estimated State contributions
9.Item8asa percentage of payroll
10.Netamount payable byCity
11.Item 10 asa percentage of payroll
Preliminary
Valuation
10/01/2015
Addition of
Tier Two
10/01/2015
Addition of
Tier Two &AMSC
10/01/2015
$6,982,994 $6,982,994 $6,982,994
4,461,150 4,461,150 4,461,150
$11,444,144 $11,444,144 $11,444,144
311,149 311,149 311,149
$11,755,293 $11,755,293 $11,755,293
$202,926 $306,267 $408,908
(88,215)(88,215)(88,170)
4,079 7,754 11,406
$202,926 $306,267 $408,908
13.2%9.7%10.0%
$107,383 '$156,494 3 $221,885 :
7.0%4.9%5.4%
$0 $0 $0
0.0%0.0%0.0%
$95,543 $149,773 $187,023
6.2%2 4.7%4 4.6%'
-3-
Gabriel Roeder Smith &Company
South Miami Pension Plan
Actuarial Impact Statement as of October 1,2015
(General Employees)
F.Disclosure of Following Items:
1.Actuarial present value of futuresalaries-attained age
2.Actuarialpresentvalue of futureemployeecontributions
-attained age
3.Actuarial present value of future contributions
from other sources
4.Amount of active members'accumulated contributions
5.Actuarial present value of future salaries and
future benefits at entry age
6.Actuarial present value of future employee
contributions at entry age
Preliminary
Valuation
10/01/2015
Addition of
Tier Two
10/01/2015
Addition of
Tier Two &AMSC
10/01/2015
1,186,965 $25,649,528 $30,509,379
783,088 $1,216,965 $1,557,153
N/A N/A N/A
1,582,115 $1,582,115 $1,582,115
N/A N/A N/A
N/A N/A N/A
Percent of payappliedto expected 2016-2017 covered payroll ($1,534,040)
Percent of expected 2016-2017 coveredpayroll ($1,534,040)
Percent of payappliedto expected 2016-2017 coveredpayroll ($3,171,089)
Percent of expected 2016-2017 coveredpayroll ($3,171,089)
Percent of payappliedtoexpected 2016-2017 covered payroll ($4,105,251)
Percent of expected 2016-2017 coveredpayroll ($4,105,251)
-4-
Gabriel Roeder Smith 6c Company
South Miami Pension Plan
Actuarial Impact Statement as of October 1,2015
Unfunded Actuarial
Accrued Liabilities
10/01/2015 Combined Bases *
10/01/2015 Plan Amendment -General
Employees Tier Two
10/01/2015 Plan Amendment -AMSC
TOTAL $(951,517)
*CombinedperInternalRevenueCode Regulation 1.412(b)-!
Current Unfunded
Liabilities
Amortization
Payment
Remaining
Funding
Period
(952,058)(88,215)19 years
0
541
0
45
25 years
25 years
$(88,170)
This actuarial valuation and/orcost determination was prepared and completed bymeor under my direct
supervision,andI acknowledge responsibility forthe results.Tothebestofmy knowledge,theresultsare
complete andaccurate,andinmyopinion,the techniques and assumptions usedarereasonableandmeetthe
requirements andintentofPart VII,Chapter 112,Florida Statutes.Baseduponour understanding oftheplan,
thereisnobenefitorexpensetobeprovidedbytheplanand/orpaidfromtheplan'sassetsforwhichliabilitiesor
currentcostshavenotbeenestablishedorotherwiseprovidedforinthevaluation.Allknowneventsortrends
whichmayrequirematerialincreaseinplancostsorrequiredcontributionrateshavebeentakenintoaccountin
Enrollment Number:14-02802
Dated:September 14,2016
-5-
Gabriel Roeder Smith 6c Company
Lawrence F.Wilson,A.S.A.
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
A.Effective Date:
October1,1965.Mostrecently amended by Ordinance 06-14-2184 adoptedApril 15,2014.
B.Eligibility Requirements:
1.General Employees
Anyregular full-time employee hiredbeforeOctober1.2011 iseligibletoentertheplan following the
completionofsixmonthsofCreditedServiceandattainmentofage20.
Anyregularfull-timeemployeehiredonorafterOctober 1,2011 andnotparticipatinginthePlanas
of October 1,2016 whoelectstojoinorfailstomakeanyelectionwithinninety(90)daysfrom
effectivedate of OrdinanceiseligibletoenterthePlanasaTier2employeeasoftheeffectivedateof
Ordinance.
Any regular full-time employee hiredonorafter October 1,2016 whoelectsto join orfailstomake
any election within ninety (90)daysfromdate of hireis eligible to enter the Plan asa Tier 2 employee
as of their date of hire.
2.Police Officers
Anyregularfull-timePoliceOfficeriseligibletoentertheplanas of date of employment.
3.Administration Management Service Class (AMSC)
Employees oftheCitywiththe following positionswhodonotelecttoparticipateinadefined
contribution plan of theCity:
City Manager
City Attorney
City Clerk
Assistant /Deputy City Manager
Finance Director /Chief Financial Officer
Chief of Police
Planning and Zoning Director
Building Director
Director of Public Works
ChiefAdministrativeOfficer (currently FinanceOfficeManager)
Chief Procurement Officer(currentlyPurchasingManager)
Parks and Recreation Director
-6-
Gabriel Roeder Smith 8c Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
C.Credited Service:
1.General Employees
Continuous employment.Credited service shall exclude continuous employment prior toplan participation as
follows:(1)If employed priorto October 1,1973,credited service shall exclude the first two years of
continuous employment andany additional year of continuous employment priorto attainment of age 25.(2)
If employed onorafter October 1,1973,credited service shall exclude thefirstsix(6)months of continuous
employmentandcontinuousemploymentpriortoage20.
Credited serviceforTier2 employees andAMSCwillbe continuous employment fromthedateofhireforall
purposes except for benefit accruals which will befromthe later of October 1,2016 or date of hire.
2.Police Officers
Continuousemployment.ForPoliceOfficerswhodidnotparticipatewhenfirsteligiblefortheplan,credited
serviceshallexcludecontinuousemploymentpriortoplanparticipationasfollows:(1)Ifemployedpriorto
October1,1973,credited service shallexcludethefirsttwoyears of continuousemploymentandany
additionalyear of continuous employment priortoattainment of age25.(2)IfemployedonorafterOctober
1,1973,credited service shall exclude thefirstsix(6)months of continuous employment and continuous
employment prior toage20.
D.Final Monthly Compensation (FMC):
FinalAverageCompensationis l/36th ofthefinal36consecutivemonthsofcompensation.ForPoliceOfficers,
notlessthan l/5th of thehighestfive(5)yearsoutofthelast (10)tenyears of compensation.Compensationshall
meanregularwagesandsalaries,excludingbonuses,vacation,sickleaveandotheradditionalcompensation.
EffectiveOctober1,2011,FinalAverageCompensationforGeneralEmployeesis l/60th ofthefinal60
consecutive monthsofbasic compensation,provideditisnotlessthantheFinalAverageCompensationasof
September 30,2011 basedonthe definition above.Basic compensation shallmeanbasewagesand salaries,
excluding commissions,overtimepay,bonusesandanyother forms of additional compensation earnedoutsideof
base wages.
EffectiveOctober1,2011,FinalAverage Compensation formemberscoveredunderthePoliceOfficersand
Sergeants collectivebargainingagreementisthebestfive(5)yearsofbasic compensation,provideditisnotless
thantheFinalAverage Compensation asof September 30,2011 basedonthedefinition above.Basic
compensation shallmeanbasewagesand salaries,including upto300hoursofovertimeina fiscal yearand
excluding payments for accrued unusedsickor annual leave,extradutyorspecialdetailwork,shift differential,
assignmentpay,bonusesandanyotherformsofadditionalcompensationearnedoutsideofbasewages.
FinalAverage Compenation forTier2 General Employees andAMSCshallbetheaverageofthehighesteight(8)
years of credit service.
-7-
Gabriel Roeder Smith 6c Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
E.Normal Retirement:
1.Eligibility:
a.General Employees:
b.Police Officers:
c.AMSC:
2.Benefit:
Attainmentofage55and completion often (10)yearsofcreditedservicefor
benefits accrued as of September 30,2011.
Attainment ofage60and completion often (10)yearsof credited service for
benefits accrued after September 30,2011,including increases inthe accrued
benefitasofSeptember30,2011 duetoincreasesintheFinalAverage
Compensation.
Attainmentofage65andcompletion often (10)years of creditedserviceor
completionofthirty-three(33)yearsofcreditedserviceregardlessofagefor
Tier 2 employees.
Attainment of age60and completion often (10)years of creditedserviceor
completionoftwenty-five(25)years of creditedserviceregardless of age.
Attainment of age65andcompletion of three(3)years of creditedserviceor
completion of thirty-three(33)years of creditedserviceregardless of age.
The monthly plan benefit isthe product of:
a.FMC,
b.Creditedserviceduringthe appropriate periodand
c.The appropriate benefit percentage
The appropriate benefit percentages are:
a.GeneralEmployees For Credited Service
b.Police Officers
c.General Employees (Tier 2)
d.AMSC
Through September 30,1999
October 1,1999 through September 30,2011
October 1,2011 and thereafter
For Credited Service
Through September 30,1995
October 1,1995through September 30,1996
October 1,1996through September 30,1997
October 1,1997through September 30,2001
October 1,2001through September 30,2002
October1,2002throughSeptember30,2003
October 1,2003 and thereafter
For Credited Service
October 1,2016 and thereafter
For Credited Service
October 1,2016 and thereafter
-8-
Gabriel Roeder Smith 6c Company
Percentage
2.50%
2.75%
2.25%
Percentage
2.00%
2.25%
2.50%
2.75%
2.80%
2.90%
3.00%
Percentage
1.60%
Percentage
3.00%
Outline of Principal Provisions of the Retirement Plan
F.Supplemental Benefit:
A cost-of-living supplemental benefit based upon the consumer price index is provided upon
retirement.The annual increase is limited to 3%.
For General Employees the cost-of-living supplemental benefit is only provided onthe accrued benefit
asof September 30,2011 anddoesnot apply to increases inthis accrued benefitdueto increases inthe
FinalAverage Compensation.
No cost-of-living supplemental benefit is provided forTier2 General Employees.
No cost-of-living supplemental benefitis provided forAMSC Employees forbenefit accruals onor
after October 1,2011.
G.Early Retirement:
1.Eligibility:
a.PoliceOfficers:Attainmentofage50andcompletion of 15years of creditedservice.
b.AMSC:Attainmentofage55andcompletion of 10yearsofcreditedservice.
2.Benefit:
a.PoliceOfficers:AccruedbenefitbaseduponFMCandcreditedserviceas of earlyretirement
date,reduced3%foreachyearthatthebenefit commencement dateprecedes
Normal Retirement.
b.AMSC:
H.Delayed Retirement:
1.Eligibility:
2.Benefit:
I.Disability Retirement:
1.Eligibility:
2.Benefit:
Accrued benefit baseduponFMCand credited service as of early retirement
date,reduced 1/15foreach of thefirstfive years and1/30for the next five
years that the benefit commencement date precedes Normal Retirement.
Retirement subsequent tonormal retirement date.
AccruedbenefitbaseduponFMCandcreditedserviceas of delayed
retirement date.
Totallyandpermanentlydisabledforasixmonthperiodwhileactively
employed.
AccruedbenefitbaseduponFMCandcreditedserviceas of date of disability,
actuarially reduced asforearly retirement forearly commencement.
Gabriel Roeder Smith 8c Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
J.Pre-Retirement Death Benefit:
Thebeneficiaryshallreceivethemember's accumulated employeecontributions.
K.Benefit Upon Termination of Service:
1.Benefitpayableatnormalretirementequaltothegreaterof:
a.AccruedbenefitbaseduponFMCandcreditedserviceasofdateofterminationtimesthe
vesting percentage shown below,or
b.Benefitwhichcanbesupportedbytheaccumulatedmembercontributionswithinterestto
normal retirement date.
No supplemental benefit shallbe payable to vested terminees.
2.Vesting Schedule:
All employees except AMSC:
AMSC employees:
3.Refund Option:
A terminated member mayelecttoreceivearefund of accumulated contributions without interest
inlieu of receivinganyotherplanbenefits.
-10-
Gabriel Roeder Smith &Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
L.Member Contributions:
Members contribute 7.0%(3.0%forTier2 General Employees and 7.5%for Police Officers)of
member'sbasicannual compensation.
Should theCity contribution for General Employees be actuarially determined to exceed 7.0%,
not including expenses,boththeCityandthe General Employees (other thanTier2and AMSC
participants)willshare equally inthe amount in excess of 7.0%.The employee contribution is
capped at 10%as of October 1,2016.
ShouldtheCitycontributionforPoliceOfficersbeactuariallydeterminedtoexceed 7.5%,not
includingexpenses,boththeCityandthePoliceOfficerswillshareequallyintheamountin
excess of 7.5%.
M.Normal Form of Retirement Income:
Thenormalform of paymentshallbealifeannuitywithaguarantee of arefund of accumulated
employee contributions.
N.Changes Since Previous Valuation:
Eligibility Requirements were:
1.General Employees
Anyregularfull-timeemployeehiredbeforeOctober1,2011 iseligibletoentertheplanfollowingthe
completion of six months of Credited Serviceand attainment of age20.
2.Police Officers
Any regular full-time Police Officeriseligibletoentertheplanas of date of employment.
Credited Service was:
1.General Employees
Continuousemployment.Creditedserviceshallexcludecontinuousemploymentpriortoplan
participationas follows:(1)If employed priortoOctober1,1973,creditedserviceshallexcludethe
firsttwoyearsofcontinuous employment andany additional yearofcontinuous employment priorto
attainment ofage25.(2)If employed onorafterOctober1,1973,credited serviceshall exclude the
firstsix(6)monthsofcontinuousemploymentandcontinuousemploymentpriortoage20.
-11-
Gabriel Roeder Smith 8c Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
N.Changes Since Previous Valuation (cont'd):
2.Police Officers
Continuous employment.For Police Officers who did not participate when first eligible for the plan,
credited service shall exclude continuous employment priortoplan participation as follows:(1)If
employed prior to October 1,1973,credited service shall exclude the first two years of continuous
employment andany additional year of continuous employment prior to attainment of age 25.(2)If
employed onor after October 1,1973,credited service shall exclude the first six(6)months of continuous
employmentand continuous employmentpriortoage20.
Final Monthly Compensation (FMC)was:
FinalAverageCompensationisl/36thofthe final 36 consecutive monthsof compensation.ForPolice
Officers,notlessthan l/5th of thehighestfive(5)yearsout of thelast (10)tenyearsofcompensation.
Compensation shallmeanregularwagesandsalaries,excludingbonuses,vacation,sickleaveandother
additional compensation.
EffectiveOctober1,2011,FinalAverageCompensationforGeneralEmployeesis l/60th ofthefinal60
consecutivemonths of basiccompensation,provideditisnotlessthantheFinalAverageCompensationasof
September30,2011 basedonthedefinitionabove.Basiccompensationshallmeanbasewagesandsalaries,
excluding commissions,overtimepay,bonusesandanyotherforms of additional compensation earnedoutside
of base wages.
Effective October 1,2011,FinalAverage Compensation for members covered underthePoliceOfficersand
Sergeants collective bargaining agreement isthebestfive(5)years of basic compensation,provided itisnot
lessthantheFinal Average Compensation as of September30,2011 basedonthe definition above.Basic
compensation shallmeanbasewagesandsalaries,includingupto300hours of overtime inafiscalyearand
excludingpaymentsforaccruedunusedsickorannualleave,extradutyorspecialdetailwork,shift
differential,assignmentpay,bonusesandanyotherforms of additional compensation earnedoutsideofbase
Normal Retirement was:
1.Eligibility:
a.GeneralEmployees:Attainmentofage55andcompletion often (10)years of creditedservice
forbenefitsaccruedas of September 30,2011.
Attainment of age60and completion often (10)years of creditedservice
forbenefitsaccruedafterSeptember30,2011,includingincreasesinthe
accrued benefit as of September 30,2011 dueto increases intheFinal
Average Compensation.
b.PoliceOfficers:Attainmentofage60andcompletion often (10)years of creditedserviceor
completion of twenty-five (25)years of credited service regardless of age.
-12-
Gabriel Roeder Smith &:Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
N.Changes Since Previous Valuation (cont'd):
Normal Retirement was (cont'd):
2.Benefit:
Themonthlyplanbenefitistheproductof:
a.FMC,
b.Creditedserviceduringtheappropriateperiodand
c.Theappropriatebenefitpercentage
Theappropriatebenefitpercentagesare:
a.General Employees For Credited Service Percentage
b.Police Officers
Through September 30,1999 2.50%
October 1,1999 through September 30,20 2.75%
October 1,2011 and thereafter 2.25%
For Credited Service Percentage
Through September 30,1995 2.00%
October 1,1995 through September 30,1996 2.25%
October 1,1996 through September 30,1997 2.50%
October 1,1997 through September 30,2001 2.75%
October 1,2001through September 30,2002 2.80%
October 1,2002through September 30,2003 2.90%
October 1,2003 and thereafter 3.00%
Benefit Upon Termination of Service was:
1.Benefitpayableatnormalretirementequaltothegreaterof:
a.AccruedbenefitbaseduponFMCandcreditedserviceasofdateofterminationtimesthevesting
percentage shown below,or
b.Benefitwhichcanbesupportedbytheaccumulatedmembercontributionswithinteresttonormal
retirement date.
No supplemental benefit shallbepayabletovestedterminees.
2.Vesting Schedule:
•%fe,-o^
-13-
Gabriel Roeder Smith fcc Company
South Miami Pension Plan
Outline of Principal Provisions of the Retirement Plan
N.Changes Since Previous Valuation f cont'd):
3.Refund Option:
A terminated member may elect to receive a refund of accumulated contributions without interest in lieu
of receiving anyotherplanbenefits.
Member Contributions were:
Members contribute 7.0%(7.5%for Police Officers)of member's basic annual compensation.Should the
City contribution for General Employees be actuarially determined to exceed 7.0%,not including expenses,
boththeCityandthe General Employees will share equally inthe amount in excess of 7.0%.Tier2 employees
contribute 3.0%and AMSC employees contribute 7.0%.
Members contribute7.0%(7.5%forPolice Officers)of member's basicannual compensation.Shouldthe
CitycontributionforGeneralEmployeesbeactuariallydeterminedtoexceed7.0%,notincludingexpenses,
boththeCityandtheGeneralEmployeeswillshareequallyintheamountinexcess of 7.0%.Tier2employees
contribute 3.0%and AMSC employees contribute 7.0%.
ShouldtheCitycontributionforPoliceOfficersbeactuariallydeterminedtoexceed7.5%,notincluding
expenses,boththeCityandthePoliceOfficerswillshareequallyintheamountinexcess of 7.5%.
Supplemental Benefit was:
A cost-of-living supplemental benefit baseduponthe consumer price index is provided upon retirement.The
annual increase is limitedto 3%.
ForGeneral Employees the cost-of-living supplemental benefitisonly provided ontheaccruedbenefitasof
September30,2011 anddoesnotapplytoincreasesinthisaccrued benefit duetoincreasesintheFinal
Average Compensation.
Early Retirement was:
1.Eligibility:Attainment of age50andcompletionof 15 years of creditedserviceforPoliceOfficers.
2.Benefit:AccruedbenefitbaseduponFMCandcreditedserviceas of earlyretirementdate,reduced
3%forPoliceOfficersforeachyearthatthebenefitcommencementdateprecedesNormal
Retirement.
-14-
Gabriel Roeder Smith &Company
A.Mortality
South Miami Pension Plan
Actuarial Assumptions and Methods
Used in the Valuation
For healthy General Employee participants,the RP 2000 Mortality Table was used with separate
rates for males and females andfor annuitants and non-annuitants,and fully generational mortality
improvements projected toeachfuturedecrementdatewithScaleAA.
ForhealthyPoliceOfficer participants,theRP2000 Combined MortalityTablewithBlueCollar
Adjustmentwasusedwith separate ratesformalesand females andfully generational mortality
improvements projected toeachfuturedecrementdatewithScaleAA.
Fordisabled participants,theRP2000 Disabled Mortality Tablewasusedwith separate ratesfor
malesandfemalesandfully generational mortality improvements projectedtoeachfuture
decrement date with Scale AA.
B.Investment Return to be Earned by Fund
7.375%,compounded annually,net of investmentexpenses.
C.Allowances for Expenses or Contingencies
Actual expenses paid in previous year.
D.Employee Withdrawal Rates
Withdrawal rates for males andfor females were usedin accordance with the following illustrative
example based upon number of years of service:
^^^M^^i^^^:i^^k^M^!M^^^^i
E.Disability Rates
1985 Disability Study,Class1withseparateratesforfemaleswasused.
-15-
Gabriel Roeder Smith 6c Company
South Miami Pension Plan
Actuarial Assumptions and Methods
Used in the Valuation
F.Marital Assumptions
100%of activemembersareassumedtobemarried.Whereapplicable,femalesareassumedtobethree
years younger than their male spouses.
G.Salary Increase Factors
Currentsalaryisassumedtoincreasein accordance withthefollowingtablebaseduponnumberofyearsof
service.
H.Increase in Covered Payroll
4.0%peryear,limited to average annual increase over most recent ten years (2.7%)but not less than 0.0%
forPoliceOfficers.No increase incoveredpayrollisassumedforGeneral Employees firstyear.
I.Retirement Rates
Rates of earlyretirementforPoliceOfficerswereusedinaccordancewiththefollowingtable.
Rates of normalretirementwereusedinaccordancewiththefollowingtables.
General Employees whoretirepriortoagesixty(60)butafter attainment often (10)yearsof service (55 &
10)are assumed toreceivean actuarially reduced benefit payable immediately upon retirement.
-16-
Gabriel Roeder Smith &c Company
South Miami Pension Plan
Actuarial Assumptions and Methods
Used in the Valuation
J.Cost of Living Increases
Future costofliving increases are assumed tobe 3.0%per annum.
K.ParticpationRate
2/3 of non-participating General Employees and all AMSC will elect to participate inthis Plan
L.Valuation of Assets
Themethodusedfordeterminingthe actuarial valueofassetsphasesinthedeviationbetween
theexpectedandactualreturnonassetsattherateof20%peryear.Theactuarialvalueof
assetswillbefurtheradjustedtotheextentnecessarytofallwithinthecorridorwhoselower
limitis80%of thefairmarketvalueofplanassetsandwhoseupperlimitis120%of thefair
market value of plan assets.
M.Cost Methods
Normal Retirement,Termination,Disability and Pre-Retirement Death Benefit:
Entry-Age-Actuarial Cost Method
Under this method thenormalcostforeachactiveemployeeisthe amount which is calculated
tobealevel percentage of pay that wouldbe required annually fromhisdate of hiretohis
retirement agetofundhis estimated benefits,assuming the Plan hadalwaysbeenin effect.The
normal costforthePlanisthesum of the individual normalcostsforallactive participants.
The actuarial accrued liability as of any valuation dateforeachactive employee or inactive
employeewhoiseligibletoreceivebenefitsundertheplanistheexcess of theactuarialpresent
value of estimated futurebenefitsovertheactuarial present value of current andfuturenormal
costs.The unfunded actuarialaccruedliabilityas of any valuation dateistheexcess of the
actuarial accrued liability over the actuarial value of assets of the Plan.
N.Changes Since Previous Valuation
None.
-17-
Gabriel Roeder Smith 6c Company
RESOLUTION NO.146-01-11294
ARESOLUTIONOF THE MAYORANDCITYCOMMISSIONOF THE CITYOF
SOUTH MIAMI,FLORIDA,RELATING TO PENSION ACTUARIAL CONSULTING
SERVICES,AUTHORIZING THE CITY MANAGER TO SIGN A THREE-YEAR
CONTRACT WITH GABRIEL,ROEDER,SMITH &COMPANY(GRS),WITHTHE
OPTION FOR RENEWAL FOR ADDITIONAL YEARS.
WHEREAS,theCityof South Miami employee Pension Fund currently utilizes
WATSONWYATTastheactuarialconsulting firm;and
WHEREAS,WatsonWyatt (actuaries)has advised theCitythat effective August31,
2001,itreachedanalliancewithGabriel,Roeder&Company(GRS);and
WHEREAS,theCitysoughtto conduct aformalsearchforactuarialservicesfrom
differentcompaniesandreceivedproposalsfromfour of them;and
WHEREAS,thepensionboard reviewed theproposalssubmittedand interviewed
representatives ofthefourcompaniesthat responded;and
WHEREAS,thepensionboardhasrecommendedthattheservice contract beawardedto
Gabriel,Roeder&Company,andthepensionattorneyconcurredthatthecompanyispremierin
theindustry.
NOW THEREFORE BEIT RESOLVED BY THE MAYOR AND CITY
COMMISSIONOFSOUTHMIAMI,FLORIDA,THAT:
Section 1 Effective immediately,Gabriel,Roeder &Company (GRS)will serve asthe actuarial
consulting firm in accordance withthe terms and conditions oftheCity pension plan.
Section 2 The City Manager is authorized to sign a three-year contract with the option for
renewals for additional yearswiththe company for pension actuarial services.
Section 3 This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this 2nd day of October 2001.
ATTEST:
COMMISSION VOTE:4-0
j$K~Mayor Robaina:Yea
CITY CLERK v Vice Mayor Feliu:Yea
Commissioner Bethel:Yea
READ AND APPROVED AS TO FORM:Commissioner Wiscombe:not preser.
,--r->Commissioner Russell:Yea
CITY ATTORNEY *
aSSEr""I NEIGHBORSI |=»
CITY OF SOUTH MIAMI
COURTESY NOTICE
NOTICE TSHEREBY given thaitheCiryCommission of IheCityof South Miami.Florida vvill conduct Public Hearings atits regular CityCommission meetingscheduled for
Tuesday.September 20,2016,beginningat7:00p.m.,intheCity Commission Chambers,6130SunsetDrive*toconsiderthe following item(s):
AResolutionapprovingaspecialusetopermitafraternalorganization/privateclubat6304 SW 78Street.
AResolutionrelatingtoan application forwaiverofplatforthe subdivision ofpropertylocated6050SW 81 Street,
AnOrdinance amending theCiryofSouthMiami'sLandDevelopmentCode,Article UL "Zoning Regulations."Section 20-3.3.Permitteduseschedule."Subsection(E),
"OutdoorSeating/DiningforAHcommercialProperties.,exceptfor Properties intheRO Residential Office Zoning District."toamendthe insurance requirements,andother
applicable rules,applicabletooutdoorseatingof restaurants withintheCity.
An Ordinance amending theSouth MiamiPension Planto implement the Collective Bargaining Agreement between theCityof South.Miami andAFSCME Local3294and
creatinganew Administration ManagementServiceClass (AMSC)of employees intheSouthMiamiPensionPlanfortheCityofSouthMiamiandsettingforth the termsof
thePlanasrelatedtothe AMSC:by Amending Chapter 16,Article II,Section 16-12.'"Definitions"by Adding Definitions for Second Tier Member andAMSCand amending
the definition of final average compensation,asitappliestothe AMSC;by amending Section 16-13."Eligibility"to reopen thePlanfor certain General Employees andfor
theAMSC;byamendingSection 16-14,'Tension benefitsandretirementdate"tosetoutthe benefits forthosepersonswhowilljointheSecondTierandforthosepersons
inthe AMSC:by amending Section16-17'TerminationBenefits"to provide a vesting schedule forthe AMSC;by amending Sec.16-19."Contributions'"toplacealimit
onthetotal contributions madeinany fiscal yearbyGeneralEmployees andtosetthe contribution rateforthe AMSC;by amending Section 16-2L "Purchaseof Credited
Service'"byallowingcertain employees andelectedofficerstobuycredited service.
An Ordinance ofthe Mayor andCity Commission oftheCityof South Miami amending the Land Development Code.Article III."Zoning Regulations."Section 20-3.5.
"Dimensional Requirements."toamendand clarify the setback requirements forsidestreet first and second story facades of structures oncornerlots,andforside interior
setbacksforadditionsto structures withalivefoot setback,inthe RS-1.RS-2.RS-3.RS-4 and RS-5 zoning districts:andSection20-3.6."Supplemental Regulations/*
subsection(F)(4).tocorrectthetitleofthedirectorresponsiblefordeterminingwhichstreetsarefrontageandsidestreets.
.An Ordinance amending Section 20-6.1 oftheCityofSouthMiami's Land Development Code,to amend the meeting requirements forthe Environmental Review and
Preservation Board.
An Ordinance Adopting a Small Scale Amendment to the Future Land Use Map ofthe Comprehensive Plan,amending the designation ofthe Marshall
Williamson property located south of SW 64*Terrance,approximately between SW 60*Avenue and SW 61"Court,from Single-Family Residential
(Two-Story)toTownhouseResidential(Two-Story).
AnOrdinance Amending the Official Zoning Map,asauthorized bySection 20-3.1(C).and other applicable provisions,amending thedesignation oftheMarshall Williamson
property located south of SW 64,h Terrace approximately between SW60*Avenue and SW 61>1 Court,from Single-Family Residential District RS-4 to RT-9.
ALL interestedpartiesareinvitedtoattendandwillbeheard.
Forfurtherinformation,pleasecontacttheCityClerk'sOfficeat:305-663-6340.
Maria M.Menendez.CMC
CiryClerk
Pursuant loFlorida Slatulcs 2S6.0J05.the Cily hereby advises thepublic thatiJ a person decides loappeal any decision made by this Board,Agency or Coinmission with respect lo any mailer considered
at lis meeting or hearing,heorshe will need a record of ibe procecding.s-,and thai for such purpose.affected person may need lo ensure thai a verbatim record of the proceedings;is made which record
includes ihe testimony andevidenceuponwhich ihe appealistobebased.
MIAMI DAILY BUSINESS REVIEW
Published DailyexceplSaturday.Sundayand
legnf Holidays
Miami,Miami-DadeCounty.Florida
STATE OF FLORIDA
COUNTYOFMIAMI-DADE:
Before the undersigned authority personally appeared
OCTELMA V.FERBEYRE.whoon oalh saysthatheorsheis
.the VICE PRESIDENT.Legal Notices ofthe Miami Oaify'
Business Review f/k/a Miami Review,a daHy (except
Saturday".Sundayand Legal Holidays)newspaper,
published at Miami in Miami-Dade County.Florida.Ihat Ihe
attached copy of advertisemeni.being a Legal Advertisement
of Notice in Ihe mailer ol
NOTICE Of PUBLICHEARING
CITYOFSOUTH MIAMI -SEPT 20.2016
in Ihe XXXX Court.
waspublishedinsaidnewspaperin Ihe issuesof
Affiant further says thai Ihe said Miami Daily Business
Reviewisanewspaperpublishedat Miami,insaid
Miami-Oade County.Florida andthatthesaidnewspaperhas
heretoforebeencontinuouslypublishedinsaidMiami-Dade
County.Florida eachday(exceplSaturday,Sundayand
LegalHolidays)andhasbeen entered as second class mail
malter ai thepostofficein Miami in said Miami-Dade County.
Florida,fora period ofoneyearnext preceding the first
publication oftheattachedcopyofadvertisement;andaffiant
further saysthatheorshehas neither paidnor promised any
person,firmorcorporationany discount,rebate,commission
or refundfor the^nurpose ofsecuringthisadvertisementfor
publicatron in |he/$aid nev^spa'per*
(seal;//o^'^'%%OCTELMA V.FERBEYRE personally kncjh loJto^^*<£%\%
3T .J *tfl»4.2
%^\BFF 034747 /<=?5
^>*V..•<£»'5-
CITY OF SOUTH MAM
NOTICE OF PUBMC HEARBNG
NOTICE IS HEREBY given that theCityCommissionoftheCityofSouth
Miami,FloridawillconductPublic Hearing(s)atitsregular City Commission
meeting scheduled forTuesday.September 20.2016,beginningat7:00
p.m.,In theCity Commission Chambers,6'130 Sunset Drive,toconsider
thefollowing item(s):
AResolution approving aspecialuseto permit a fraternal organization/private
dub at 6304 SW 78 Street.
,•-•A .Resolution relating .to an application forwaiverofplatforthe
'"subdlyisiori of.pn^rtyJqcaWeO^O SW 81 Street..•
-i •^Qrdinance^arheprJpig.ttielCityof South Mfamrs.Land Development
.'Code,Article III,"'Zoning.Regulations',."Section-20-3.3,Permitted use
schedule,"Subsection (E)."Outdoor SeatingnDining forAll commercial
Properties,exceptforProperties in theROResidentialOfficeZoning
District."to amend Ihe insurancerequirements,andotherapplicable
rules,applicabletooutdoorseatingofrestaurantswithintheCity.
AnOrdinanceamendingtheSouthMiamiPensionPlantoimplement
theCollectiveBargainingAgreementbetweentheCityofSouthMiami
and AFSCME Local 3294 and creating anew Administration
ManagementServiceClass (AMSC)ofemployeesintheSouthMiami
PensionPlanfortheCityofSouthMiamiandsettingforththeterms ol
thePlan as related totheAMSC;byAmending Chapter 16.ArticleII,
Section16-12."Definitions"byAddingDefinitionsfor Second Tier
MemberandAMSCand amending thedefinitionoffinal average
compensation,asItappliestothe AMSC:byamendingSection 16-13.
""Eligibility"toreopenthePlanforcertain General Employees andfor
the AMSC;by.amending Section 16-14,"Pension benefitsand
retirement date"tosetputthebenefitsforthosepersonswhowilljoin
the Second Tier andfor those persons inthe AMSC;-byamending
Section16-17"Termination Benefits'*to provide a vesting schedulefor
the AMSC;by amending Sec,16-19,"Contributions"to place a limit
onthe total'contributionsmadeinanyfiscalyearbyGeneral.
Employees andto sel the contribution rate for the AMSC;by
amending Section 16-21.'Purchase ofCredited Service"by allowing
certainemployeesandelectedofficers tobuycreditedservice.
AnOrdinanceofthe Mayor and CityCommission oftheCityofSouth
Miami amending the Land Development Code,Article.Ill,"Zoning
Regulations,"Section 20-3.5,"Dimensional Requirements,"to amend
and clarify the setback requirements forsidestreetfirstand second
story facades ol structures on comer lots,andforside interior
setbacksforadditionstostructureswithafivefootsetback,inthe RS-1,
RS-2.RS-3,RS-4andRS-5 zoning districts;andSection 20-3.6,-
"Supplemental Regulations,"subsection (F)(4),tocorrectthe title of
thedirector responsible fordetermining which streetsere frontage and
side streets..
An Ordinance amending Section 20-6.1 ofthe City ofSouth Miami's
Land Development Code,toamendthe meeting requirements for the
Environmental Reviewand Preservation Board.
AnOrdinance Adopting aSmallScale Amendment totheFuture Land
UseMapofthe Comprehensive Plan,amending the designation ofthe
Marshall Williamson propertylocatedsouthofSW64th ;Terrance.
approximately betweenSW60th Avenue andSW61st Court,from
Single-Family Residential (Two-Story)toTownhouse Residential (Two-Story).
AnOrdinance Amending the Official Zoning Map.as authorized by
Section 20-3.1(C),andother applicable provisions,amending the
designation ofthe Marshall Williamson property located south ot SW
64th Terrace approximately betweenSW60th Avenue andSW61st
Court,from Single-Family Residential District RS-4 to RT-9.
ALL interested parties are invited toattendandwill behoard.
Forfurther information,pleasecontacttheCityClerk's Office at
305-663-6340.
MariaM.Menendsz,CMC
City Clerk
Pursuant to Florida Statutes 286.0105,the City hereby advisesthe public
that If a person decides to appeal any decision made by this Board.
Agency or Commission with respect to any matter considered atits
meeting or hearing,he or-she will need a record ofthe proceedings,and
thatforsuch purpose,affected person may needto ensure thata verbatim
record ofthe proceedings rsmade which record includes the testimony
andevidenceuponwhich theappealistobe based,
g/g.16-101/0000151096M