ORDINANCE 920•' ORDINANCE NO. 3 -77 -920
AN ORDINANCE OF THE CITY OF SOUTH MIAMI,
FLORIDA, IMPLEMENTING THE PROVISIONS OF
CHAPTER 185, ACTS OF FLORIDA, 1953;
PROVIDING CERTAIN BENEFITS FOR POLICE
OFFICERS OF THE CITY OF SOUTH MIAMI;
CREATING A SPECIAL FUND DERIVED FROM
MONIES RECEIVED FROM THE STATE OF FLORIDA ;.
SAID FUND TO BE KNOWN AS "THE CITY OF
SOUTH MIAMI POLICE OFFICERS RETIREMENT
TRUST FUND PROVIDING FOR AN INTERIM
COMMITTEE, A BOARD OF TRUSTEES, ELECTION
PROCEDURES FOR SAID TRUSTEES, OFFICERS
THEREOF, DUTIES, TERMS OF OFFICE, AND
OTHER REGULATIONS GOVERNING SAID TRUSTEES, .
SECURITY SAFE KEEPING, INDEMNIFICATION OF
BOARD MEMBERS, PAYMENT OF COSTS, EXPENSES
AND FEES, CREDITS TO INDIVIDUAL ACCOUNTS,
BENEFITS, RETIREMENT DATES, PAYMENTS UPON
DEATH, CHANGE OF BENEFICIARIES, BENEFIT
OPTIONS, AND OTHER REGULATIONS CONCERNING
SAID FUND, INCLUDING AMENDMENT AND TERMINATION
OF THE PLAN, DISTRIBUTION OF THE FUND, AND
PROVIDING FOR THE 'FUND TO BE IN ADDITION TO
ANY OTHER PENSION PLAN OF THE CITY OF
SOUTH MIAMI, FLORIDA.
BE "IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF SOUTH MIAMI, FLORIDA:
Section 1. The purpose of this 'Ordinance is to
implement the provisions of Chapter 185, of the Florida Statutes,
and to provide means whereby police officers of the City of
South Miami, Florida, may receive benefits from the funds provided
for the purpose by Chapter 185, Acts of ,Florida, 1953. The
fund hereby created being derived from monies received from the
State and not from a tax levied by the City of South Miami on
City of South Miami taxpayers, shall be in addition to any other
pension plan of the city of South Miami, Florida, and nothing
herein shall be construed to in any way affect the operation of
benefits of any other pension plan of the City of South Miami,
Plorida, that presently exists.
seg -A611 2;. The follmAng words and phrases aball, for
the purpge of this Ordipance, have the meanings hereinafter
re ti ely aserthed to them. Other words and phraaes shall
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have meanings as commonly understood with respect to the context; the
singular shall include the plural, and the masculine the feminine.
(a) Active duty: Active duty shall mean actual services as
a police officer with .permanent Status in the :Police. Department of the
City of South Miami, Florida except for approved leaves of absence as
set forth below under paragraph (i) of this Section.
(b) Board: Board shall be understood to mean the Board of
Trustees of the City of South Miami Police Officers Retirement Trust
Fund, or such other board or boards as may be created by the City of
South Miami, or its successors, to administer the pension system.
(c) City: City shall be understood to mean the City of South
Miami, Florida, and the lands under the jurisdiction thereof from time
to time, as determined*by law.
(d) State: State shall be understood to mean the State of
Florida.
(e) Police Officers: Shall be understood to mean the Police Chief
and all full -time police officers of the City of South Miami, with per-
manent status in the Police Department of the City of South Miami, as the
Board shall determine to be engaged in enforcement of the ordinances of
the City of South Miami and Statutes of the State of Florida. The term .
police officer does not include auxillary officers nor reserve officers.
(f) Fund: Fund shall mean the City of South Miami Police Officers
Retirement Trust Fund.
(g) Participant: Every police officer of the City, as defined
herein, who is eligible to have monies credited to his individual account
and to receive benefits therefrom under this ordinance shall automatically
become a participant.
(h) Permanent Status: The term permanent status shall have the
meaning ascribed to it from time to time by the City of South Miami Code
of ordinances and Personnel Rules,
(:i) serviee: service shall mean all time served as a police
officer p-Irmanently appointed under the City of South Miami Code of
ordinances and Pertatirt@1L Itaida, for which regular cdr*@fi9aUofi is fiaid
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by the City; and all time, not to exceed a period of five (5) years during
which a participant is absent on a military leave of absence. It shall
include all leaves of absence without pay for .sickness, for such period of
time as may be determined by the Board, in excess of accumulated sick time
for which compensation is received.
(j) Chapter 185: Chapter 1,85 shall mean and refer only to Chapter
185, Laws of the Florida Statutes.
(k) Department: Department shall be understood to mean the Police
Department of the City of South Miami.
(1) Finance Director: Finance Director shall be understood to mean
the Finance Director of the City of South Mian i.
Section 3: There is hereby created in the City a special fund to
be known as the City of South Miami Police Officers Retirement Trust
Fund, into which shall be paid all monies received by the City under the
provisions of Chapter 185, and all monies which are hereafter paid to the
City under the provisons of Chapter 185.
The monies received and /or allocated to the City for the fiscal year
the City was a participant in the State program are as follows:
Fiscal year ending October 1974 ........, .............$8,250.10
Fiscal year ending October 1975 .... ..............$8,574.61
In addition to the payments of the principal hereinabove set forth, the City
shall pay into said Fund interest accrued at the rate of 5'4/ compounded
daily on unpaid balances of principal, said interest to be computed from
the 27th day of August, 1976.
In addition to the repayment of monies received by the City plus
interest thereon, the City shall pay into said fund all monies received by
it from the State pursuant to Chapter 185.
Section 4. There is hereby created an interim committee composed of
the City Manager, the Chief of Police and two police officers selected by
the chief of Police. This committee shall immediately establish the
necessary rules and regulations for the first election of the three police
Officers of the police pepartment 4+ho shall serve on the hoard of Trustees
of the city of gout'h Miami Police Officers Retiremehe Trust Fund as sat
firth below. This interim co!tMittee shall perform the function of the
Board until the first election is held. The first election 'shall be
held on or before two (2) months from the date of the passage of this
ordinance.
Section 5. There is hereby create'd'a seven (7) member Board of
Trustees of the City of South Miami ,Police officers Retirement Trust Fund,
which Board shall consist of three employees of the Police Department (to
be recommended by the police participants and chosen by the City Council),
the Police Chief, the F`lnance Director, the Mayor and a resident of the
City (to be appointed by the City Council) for ;a period of two (2) years.
At the first election of 'Trustees, there shall be elected one police officer
to serve as Trustee for a one year term; one police officer to serve as
Trustee for a two year term;. and one police officer to serve as .Trustee for
a three year term. Thereafter, each year, one police officer shall be
elected to serve as 'Trustee for a three year term. The Board shall annually
elect from its membership a Chairman and a Secretary. The Finance Director
shall be the Treasurer. The Chairman, when present, ,shall preside at all
meetings. The Secretary shall keep complete minutes of all proceedings of
the Board_ The Treasurer shall supervise the books and records 'which record
the receipts and disbursements of the Fund and the inventory of assets of
the Fund,. Fie shall report at each quarterly meeting the assets and
liabilities of the Fund as of the date of such meeting. All elections of
the Board shall be by a majority vote, a quorum being present. Four or more
members shall constitute a quorum. Trustees shall receive no compensation
as such.
Section 6. Elections: All elections of police officers to the Board
shall be by secret written ballot. only participants in the fund shall be
eligible for nomination and election to the Board and only participants shall
be eligible to vote in such elections.
Notice of each election shall, be posted in the Police Station in the
City of South Miami at least two Weeks prior to the date upon which such
eleetion shall, be held.
Section 7. Meetings The Board of Trustees will hold regular nieetirigs
quarterly or more often as determined by the board. Special meetings ,may
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be called by the chairman and Secretary or by any three members of the
Board. Ten days written notice of a 'Special Meeting shall be given in
writing to all Board members, which notice ,shall contain the purpose,
date, time and place of the Special Meeting.
If any elected member of the Board of Trustees shall fail to attend
meetings of the Board on two consecutive meeting dates without cause, as
determined by the Board of Trustees, his membership on the Board shall
be terminated. Written notice of this fact ,shall be given to the
member whose membership is thus terminated.
Section 8. Replacement of Board Members: If at any time between
elections a vacancy occurs on the Board for any reason whatsoever; the
remaining Board Members, by majority vote, shall fill said vacancy. The
new members so chosen shall serve until the next election of the Board
of Trustee's. At the next election a new Trustee shall be elected to
serve the remainder of the term of any Trustee whose membership was
terminated.
Section 9. Powers of Board: The Board ,shall have the power and
authority as follows:
(a) To invest and re- invest monies of the Fund. In making such
investments they shall be governed by Chapter 185 Florida Statutes
relating to the investment of fiduciary funds, except that no monies
shall be invested in common stock. The Board may, however, invest up
to ten percent (10/) of the unobligated funds in corporate bonds and /or
equipment trust.
(b) To approve disbursements, pay claims, and authorize payments
from the Fund by warrants signed by the chairman and the Secretary of the
Board.
(c) To interpret the provisions of this Ordinance where the meaning
is not clear or ambiguity exists and to .promulgate necessary rules
respecting the operation of the Fund, or elections of Trustees, not in
conflict with the wording or clear :intent of this Ordinance„
(d) to authorize expenditures in connection with preliminary
research, technical services, legal services and accounting services, to
contract for employees necessary to the general administration of the
Fund and to employ legal counsel and auditors necessary to the proper
administration of the Fund.
Section 10. Security Safekeeping; The custody of all se:.urities and
cash of the Fund shall be with the Board. The Board shall deposit all
funds not invested as above, in a National or State chartered commerical
bank located within the City, whose deposits are insured by the Federal
Deposit Insurance Corporation. All security instruments shall be kept
in a safe deposit box or deposited with a corporate /bank trustee, and
current inventories of such securities shall be kept as a part of the
permanent records of the Board, which will be audited annually by an
independent Certified Public Accountant.
Section 11.. Indemnification of Board Members: All persons, including
Board members and employees, who sign checks or handle money or secur-
ities of the Fund shall be bonded by a qualified surety.
The Fund shall indemnify the members of the 'Board of Trustees of the
city of South Miami Police Officers Retirement Trust Fund individually
and collectively against all claims of participants as aforesaid and
shall pay all expenses including court costs and attorney's fees incurred
in defending law suits of any form whatsoever brought by participants
in asserting such claims.
Except for gross negligence or willful breach of the terms of this
plan, no member of the pension board shall incur any individual 'liability
for any action or failure to act pursuant to the terms of this plan. No
member of the pension board shall be liable for the aets of any other
member of the pension board. The members of the pension hoard may engage
,agents to aasist theca in their duties and the City Attorney shall
to rotont the Board. of Trustees pursuant to the proviaidot of Section
W5,2g of the Plorida Statutes uhieh 9hall noftly. The mmqherg of the
ensu a board shall b@ of All regua gibi:]li:ty tchatgoee @r for
dftythnitj dune Oe ftot d -Rf¢@ ei n th@ wfitwn adeie@ of
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Section 12. Payment of Costs, Expenses and Fees: At the first
meeting of the Board, the Trustees shall examine all known bills of
expense for setting up the Fund, and shall approve and allow for payment
all those that are found to have been necessary and proper charges
against the Fund, and these bills shall be paid promptly.
Section 13. Credits to Individual Accounts
(a) An individual account shall be established for each police
officer of permanent status on the effective date of this Ordinance, and
for each police officer who attains permanent status subsequent to the
passage of this ordinance.
(b) After payment of all costs, expenses and fees as monies are
received from the State, the expenses of administering the Fund for the
preceding year shall be prorated,by the Board and charged a'gain'st
monies received for police officers participants during said year; and the
balance of such monies shall be credited to the several individual'part-
icipants in an amount directly proportionate to the total number of
months of duty performed by the several. police Officers in the calendar
year preceding the date the monies were received from the State.
The length of time of service computed in monthly increments during the
calendar year preceding the date upon which payment is received from the
State is the only criterion upon which the amount due each participant out
of the State monies received annually is to be calculated. A participant
will be credited with a full month if date of employment on permanent
status is on or before the 15th day of the month and if separation is
on or after the 16th day of the month. No partial monthly periods will
be credited to any account. No credit is to be given on account of
seniority, rank or amount of compensation which the participants receive..
(c) The amount of earnings £,rote investments credited to the account
of the participant shall beat the same ratio to the total amount of annual
earnings as the invested funds belonging to the participant in the Fund
beat to the total monies invested on behalf of the Fund.
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(d) In addition to the 'monies received from the State and as
earnings on investments, all forfeitures from police officers as provided
for in Section 14(a) hereof shall be prorated and credited annually to
the accounts of the individual participants. Such sums shall be prorated
to their individual accounts in the same manner as monies received from the
State', as set north in Section 13(b').
(e) Subsequent to the ;effective date of this Ordinance after a police
officer has retired and ceased to be a member on active duty, as defined
in Section 2(a) hereof`, no credits shall be made to his account. Police
officers who retired, or separated from the City, after the enactment of
Chapter 185 and prior to the effective date of this Ordinance, shall be
entitled to participate in the monies they could have participated in
had this Ordinance been in effect on the date of the enactment of Chapter
185, but they shall not participate in any other monies. Monies credited
to a participant's account shall be payable only upon the filing of an
application with the Board. The application shall be on a form prescribed
by the Board and shall be sworn to by the applicant or his surviving
wife or child, or if the child is a minor, by the guardian of the child,
or by any other person legally qua'lifed to apply for such monies under
the laws of the State of Florida.
Section 14. Benefits: No participants shall receive benefits from
the Fund in excess of the amount credited to his account. Subject to this
provision .a participant shall receive benefits as follows:.
(a) Should a participant separate from the department prior to having
satisfactorily completing ten years of service, the participant shall
forfeit all monies credited to his name in the plan.
(b) Should a participant separate from the Department after having
satisfactorily completing ten years of service but prior to retirement
age as set forth in Section 14(c), the participant will have a Vested
right to big credited benefits at the time of his separation. These
credited benefits will remain in the investment pool and will receive
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a proportionate share of investment earnings as set forth in Section 13(c)
until benefits are paid as set forth in Section 14(c), which follows:.
(c) Normal Retirement Date: The normal retirement date of a
participant including separated participants with vested rights, shall
be the first day of the calendar month coincident with or otherwise next
following his sixtieth (60;) birthday,.
(d) Early Retirement Date: A participant who elects early `retire-
ment under the City of South Miami Pension Plan and /or a participant who
separates from the department who is not a,member of the City's Pension
Plan may elect an early retirement date which may be the first day of the
calendar month coincident with or otherwise next following his fifty- fifth
(55) birthday.
(e) Disability Retirement:, As used in this section, "totally and
permanently disabled means the inability to engage in any substantial
gainful activity by reason of a medically determinable physical or
mental impairment which can be expected to result in death or to be of
long - continued and indefinite duration. The disability of any participant
shall be determined by the Board in accordance with uniform principles .
consistently applied, upon the basis of such evidence as the Board deems
necessary and desirable . The Board shall set the date for commencement
of benefit payments to the participant after °eligibility therefor has
been established. A participant determined by the Board to be eligible
for disability retirement may elect any one of the benefit options set
forth in Section 14(h).
As to disability incurred in line of duty, the provisions of Section
185.34 of the Florida Statutes shall apply.
(f) Death of a- Participant-. Upon the death of a participant prior
to retirement there shall be paid to the beneficiary last designated
by him all the monies credited to the participant's account plus 4%
interest thereon for the period commencing with the day of the last
credited distribution to, but not including; the day of death of the
participant.
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(g) Change of Beneficiary: Each participant shall have the right to.
name a beneficiary and to change his beneficiary designation from time
to time. Any such exercise of rights shall become effective immediately
upon proper 'execution of the beneficiary designation form provided by the
Board as a standard form under this plan,
(h =) Benefit options: The participant has three benefit options of
which he must choose one at the time of application for retirement
benefits. once an option is chosen and the first payment thereon has
been made, the option selection becomes binding on the participant and
no other option may be chosen in lieu thereof.. The three benefits options
are as follows.:
( "1) Cash: The cash payment will be equal to the amount credited to
the participant's account plus interest thereon at 4% for the period
commencing with the 'day of the last credited distribution up to, but not
to include, the day of retirement.
(2) Annuity payments certain for months using a 5/ interest
factor in computing the amount of the monthly payment. Should the partici-
pant die prior to receiving the final monthly .payment, the remaining
monthly payment will be made to his designated beneficiary. Should the
beneficiary predecease the participant, the remaining benefits will be paid
to the participant's estate as a lump sum, present value of the remaining
monthly payment due using a 5% discount factor.
(3) Whole Life Annuity Due: Should the participant elect this
option', the Board will purchase such a policy for the insured from the
life insurance company selected by the Board from time to time. The
single premium of the annuity will equal the amount credited to the
participant's account plus interest thereon at 4% annual for the period
commencing with the day of the last credited distribution up to, but not
to include, the day of retirement.
Section 15., VeSted__Rights: The rights and benefits provided for
herein are vested rights of the participants in the rund, and shall not
be subject to garnishment, attachment, execution of any other legal - or6cess,
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except that co- makers or guarantors of notes of the police officers
participants payable to the South Miami Municipal credit Union shall be
able to garnishee or attach the funds due the participant in case the
participant shall fail to pay such loans when due..
Section 16. City's Responsibility: The City shall have no
responsibility for the operation of the Fund except those specified
herein' and shall bear no expense in connection therewith.
Section 17. Limitations Generally:
(a) This plan is created for the exclusive benefit of permanent
police officers of the City and their beneficiaries,, and shall be inter-
preted in a manner consistent; with its being a qualified plan under
Chapter 185 Florida Statutes as the same may be amended from time to time.
This section cannot be altered or amended.
(b) Except as provided in Section 12., no funds accruing to this
plan and no assets of the plan shall ever revert to,, be used or enjoyed
by the City nor shall any such funds or assets ever be used other than
for the benefit of the participants or their beneficiaries. This section
cannot be altered or amended.
(c) Compliance by Parties, Claimants: All parties to this plan and
all persons claiming any interest whatsoever hereunder agree to perform
any and all acts and execute any and all documents or papers which may
be necessary or desirable for carrying out any of the provisions of this
plan or of any amendments to this plan or for complying with any federal .
or state disclosure laws.
(d) Plan is Not Contract of_Employment: The pension plan shall not
be construed as creating any contract of employment between the employer
and any of its employees.
(e ) Alienation of proceeds, Levy, Etc.; probibited: No participant
shall have any right to assign, alienate, anticipate or commute any
payments hereunder, and, except as otherwise prescribed by law, no payment
shall be subject to the debits, contracts or engac6mdnts of any payee,, nor
to any Judicial process to levy upon or attach the sate for the pay ht
thereof.
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(f) Laws of 'Florida Applicable: This plan shall be construed accord-
ing to the laws of the State of Florida where it is made and where it
shall be enforced`.
(g) Gender; 'Number: Wherever used in this article, the masculine
gender shall include the feminine gender and the singular shall include
the plural.
Section 18. Invalid Provisions: If any provision of this ordinance
or the application thereof' to any person or circumstance is held invalid
such invalidity shall not affect other provisions or applications of the
ordinance which can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are
declared to be severable.
Section 19. Amendment & Termination of Plan and Distribution of Fund:
(a) The City of South Miami may amend this pension plan at any time
and from time to time by an instrument in writing executed in its name by an
officer or officers duly authorized to execute such instrument, and
delivered to the members of the pension board; provided, however, that
(1) No amendment shall increase the duties or liabilities of
the members of the pension board without their written consent.
(2) No amendment shall provide for the use of funds or assets held
under this plan other than for the benefit of the participants.
(b') The city of South Miami may terminate this pension plan at any
time by an instrument in writing executed in the name of the officer or
officers duly authorized to execute such an instrument and delivered to
the 'Board. In such an event, the Board shall cause the Fund to be
apportioned and distributed in accordance with Chapter 185, Florida
Statutes, Municipal. Police officers Retirement Trust Fund; Policemen
Generally.
Section 20. All ordinances or parts of ordinances in conflict
herewith be, and the same are hereby repealed.
Section 21. This Ordinance shall take effect immediately
at the time of its passage`.
PASSED AND ADOPTED this 18 day of January 1977.
APPRC 7ED:
r
O
Mayor
Attest:
Yo' • y0 /cam y�:-i
city clerk
Passed on First Reading: 12/21/76
Passed on Second Reading: 1/18/77
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