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Ord No 22-19-2335ORDINANCE NO. 22-19-2335 An Ordinance amending the South Miami Pension Plan to implement the Collective Bargaining Agreements between the City of South Miami and the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294, the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc. by creating Section 16-28 - Deferred Retirement Option Plan ("DROP") and amending Section 16-12 to define DROP members. WHEREAS, the City of South Miami and the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294, the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc. (hereinafter "Unions"), have entered into Collective Bargaining Agreements ("Agreements"); and WHEREAS, one of the purposes and intentions of the Agreements are to provide for a Deferred Retirement Option Plan; and WHEREAS, Florida law requires that if any provision of a collective bargaining agreement is in 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 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 for in the Agreements; and WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the South Miami Pension Plan. NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section 1: Chapter 16, Article II, Section 16-12, "Definitions", of the City of South Miami Code of Ordinances is hereby amended to read as follows: DROP Member shall mean any person who is a member of the Deferred Retirement O tion Plan. Section 2: Chapter 16, Article I1 of the City of South Miami Code of Ordinances is hereby amended to add Section 16-28 - "Deferred Retirement Option Plan" that shall read as follows: Sec. 16-28 - Deferred Retirement Option Plan "DROP" . (1) Created There is hereby created a Deferred Retirement Option Plan ("DROP" . Page 1 of 4 Ord. No. 22-19-2335 (2) Eli i�ty. a Any general employee. AMSC member and police officer which includes sergeants, lieutenants and ca tains who are active members of the South Miami Pension Plan and not members of the City of South Miami Defined Contribution Plan is eligible to enter the DROP on or after the first day of the month following the employee reaching their normal retirement date as defined in accordance with the South Miami Pension Plan. 3 Participation time. The maximum participation in the DROP by DROP Member shall be sixty (60) months. 4 No additional creditable services. Upon entering the DROP, the DROP Member shall not receive any additional Creditable service for pension pgMoses. Additionally. the amount of final averse salary for calculation of pension benefits shall be determined as of the date of entering the DROP. No payment shall be made for accrued unused leave upon entering the DROP nor shall the amount of accrued unpaid leave be used in the calculation of the amount of pension benefits. 5 Election of optional forms ofpayment. Upon entering the DROP the DROP Member mgy elect an optional form of 12Mment. Once the election is made it mgy not be changed. The DROP member ma elect a beneficiM who ma be the same as or different than the beneficiary elected to receive the annuity portion of the pension. 6 Contributions. Upon the effective date of the DROP Member's commencement of participation in the DROP, the DROP Member's contribution shall be discontinued. (7) Irrevocable resignations. The Board of Trustees for the South Miami Pension Plan shall promulgate the a ro riate administrative forms for administering the DROP which farms must include. at a minimum an irrevocable resignation from employment from the City of South Miami. which is effective no more than five 5 ears from the date of ep= into the DROP. The resignation is irrevocable. A DROP Member may actually separate from service prior to the expiration of the five - ear period, but may not continue in the employment of the Cily of South Miami in a ppsition which re uires membership in the South Miami Pension Plan after the five- ear period. A DROP Member may participate in the DROP only once. $ Limitation or disqualification for other benefits. Upon commencement of participation in the DROP the DROP Member shall not be eligible for disability or re -retirement death benefits. Credits to DROP account. The monthly retiremenl benerls Ihal would leave been payable had the DROP Member elected to cease employment and not join the DROP, shall be credited to the DROP member's DROP account. The money in all DROP Members' accounts will be commingled with all other assets of the South Miami Pension Plan, but separate accountings shall be made. 1 Crediting interest in the DROP account. A DROP Member's account shall be credited monthly with interest and compounded annually, in an amount equal to fifty 50ercent of the net ross return minus investment expense) earl interest earned by the South Miami Pension Plan for the preceding fiscal year, up to a maximum of five 5percent. If the net yearly interest earned by the South Miami Pension Plan is zero 0percent or less the DROP Member's account will not be credited with interest for that year, nor will it be debited with any investment losses for that year. (11) Distribution. a. All distributions must comply.with the Internal Revenue Code and regulations promulgated thereunder. b. Upon termination of a DROP Member's ern to ment with the City of South Miami from a position that is covered by the South Miami Pension Plan, the retirement benefits pnable to the DROP Member or the DROP Member's benefici if the DROP Member selected an optional form Page 2 of 4 Ord. No. 22-19-2335 of retirement benefit which provides for pUment to the beneficiary) shall be paid to the DROP Member or, if the DROP Member is deceased to the DROP Member's designated beneficiary, or, if no surviving designated beneficiM, to the DROP Member's estate and shall no longer be credited to the DROP Member's account. C. Upon separation of a DROP Member"s employment with the City of South Miami from a position that is covered by the South Miami Pension Plan the balance credited to the DROP Member's DROP account may be distributed in a lump sum. periodic pqyments, an annuity or a combination thereof to the DROP Member. Alternatively, a DROP Member mqy also elect to rollover the DROP account to an eligible retirement 121an. including an individual retirement accountpursuant to Section 401 a 31 of the Internal Revenue Code or any other distributions permissible to the Internal Revenue Code and regulations promulgated thereunder. Distribution must commence not later than provided in Section 401(an of the Internal Revenue Code. 12 DROP balance distribution in the event of death of a DROP Member. If a DROP Member dies before his or her DROP account balance is distributed in full the lump -sum distribution shall be made as soon as is administratively feasible but no later than December 31 of the calendar year in which the first anniversary of the DROP Member's date of death occurs to the DROP Member's surviving designated beneficiary, or if there is no surviving designated beneficiary, the former DROP Member's estate. 13 Adnzinistrative rules and re lafions. The Board of Trustees shall have authorfty to promulgate administrative rules and regulations for the carrying out of the DROP. 14 Loss to DROP account balance. A DROP member shall have their principal balance decreased if an accrued loss results over the total DROP period as a result of administrative expenses incurred. Section 3. Codification. The provisions of this ordinance shall become and be made part of the Code of Ordinances of the City of 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 4. Severability. If any section, clause, sentence, or phrase of this ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, this holding shall not affect the validity of the remaining portions of this ordinance. Section 5. 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 6. Effective Date. This ordinance shall become effective upon enactment. PASSED AND ENACTED this 18t' day of June, 2019. ATTEST: CITY C ERK Page 3 of 4 APPROVED: /411 zJ MAYOR Ord. No. 22-19-2335 111 Reading: 6/4/ 19 2"d Reading: 6/18/19 READ AND APP OVEE LANGUAGR LOG ALIT' EXECU HEREOF f, CITY A ORN EVISUIERM Page 4 of 4 COMMISSION VOTE: �,5-0 Mayor Stoddard: Yea Vice Mayor Harris: Yea Commissioner Welsh: Yea Commissioner Gil: Yea Commissioner Liebman: Yea Agenda Item No:13. City Commission Agenda Item Report Meeting Date: June 18, 2019 Submitted by: Alfredo Riverol Submitting Department: Finance Department Item Type: Ordinance Agenda Section: Subject: An Ordinance amending the South Miami Pension Plan to implement the Collective Bargaining Agreements between the City of South Miami and the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294, the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc. by creating Section 16-28 - Deferred Retirement Option Plan ("DROP") and amending Section 16-12 to define DROP members. 3/5 (City Manager -Finance Dept.) Suggested Action: Attachments: ARMemo Ordinances - Pension Revision (June 2019) DROP - FINAL.pdf South_Miami_Ordinance_Creating_DROP_PROPOSED CArev.docx Res. No 184-18-15217- Agreement with the FOP (Officers Sergeants).pdf Artuarial Impart Statement DROP - Updated.pdf MDBR Ad.pdf Miami Herald Ad.pdf The Deferred Retirement Option Program (DROP) provides an employee with an alternative method for payment of an employees retirement benefits for a specified and limited period if the employee is an eligible Pension Plan member. Under this program, an employee stops earning service credit toward a future benefit and their retirement benefit is calculated at the time their DROP participation begins. While an employee is in the DROP, their monthly retirement benefits accumulate in the Fund, earning interest while they continue to work for the City. Upon termination, the DROP account is paid to an employee as a lump sum payment, a rollover or a combination partial lump sum payment and rollover. Monthly benefits are paid to the employee in the amount as calculated upon entry into DROP. Furthermore, the member's DROP account shall be credited with interest in an amount equal to fifty (50) percent of the net yearly interest earned by the retirement system for the preceding fiscal year, up to a maximum of five (5) percent. In this case "net" means gross return minus investment expense. If the net yearly interest earned by the retirement system is zero (0) percent or less, the member's DROP account will not be credited with interest, nor will it be debited with any investment losses. The Ordinance Implementing the Deferred Retirement Option Program (DROP) is a no cost Ordinance under State funding requirements and provides a retirement benefit option for all City employees and will be provided to the employees at no cost to the employee or to the City. RECOMMENATION Approve the attached ordinance that enacts changes necessary to bring the City in compliance with Resolution 184-18-15217 which approved the Collective Bargaining Agreement (CBA) beginning September 18,2018 through September 17, 2021 between the Florida State Lodge Fraternal Order of Police, Inc. and the City of South Miami, and to extend these same benefits to all eligible and applicable employees. ATTACHMENTS — Proposed Ordinances — Resolution 184-18-15217 Approving the Florida State Lodge Fraternal Order of Police, Inc. CBA — GRS Projection Study 3 Page 2 of 2 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 PREAMBLE - -- This Agreement ientered=infix by -the City=ofouth=Mrilorida ke�c�i'afk�rf�das`- - the "Employer" or the "City" and the Florida State Lodge, Fraternal Order of Police Inc., hereinafter referred to as the "FOP" or "Union", for the purpose of promoting harmonious relations between the Employer and the FOP, to establish an orderly and prompt procedure forthe resolution of'grievances, to insure continuation of normal activities and Departmental operations, to settle differences which might arise and to set forth the basic and full Agreement between the parties concerning rates of pay, wages, hours of work and all other conditions of employment. Definitions: "11:59 p.m." means 23:59:59.99 hours in a 24 hour clock. "12:00 a.m." means 00-00:00.99 hours in a 24 hour clock. "12:00 p.m." means 12:01:59.99 hours in a 24 hour clock "Bi-weekly" mean every two weeks. "Department" means the South Miami Police Department. "Officers" or "Police Officers" whether plural or singular, as used in this Agreement means the rank of Police Officer, and Police Sergeant, including probationary employees, but excluding the Chief of Police, Assistant Chiet, Majors, Police Captain, Police Lieutenants, any bargaining unit member during his assignment to "Internal Affairs" and all other employees of the City of South Miami. "Parties" mean the City and the FOP. "Workweek" means a 7 day period ("week") commencing at 00:00:00 hours (or 12:00 a.m.) on Monday and ending at 23:59:59.99 hours ("11:59: p.m.") midnight on Sunday of each week. ARTICLE 1. RECOGNITION The Employer hereby recognizes the FOP, as the collective bargaining agent for all permanent full-time and probationary sworn police personnel in the classifications of police officer and police sergeant. However, the FOP is not the collective bargaining agent for sergeants while assigned to internal affairs. AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 Directors, the commencement date and length of their term of office, any changes made to j the membership of the FOP Board of Directors and any change to a director's term of office, within 3 working days of the election or appointment to the FOP Board of Directors or any other cbanke in_-tha=iriforiiaation-required=t0 be-given=to=the-Chief=.of Police, -Two -members,=-= of the FOP, while on duty, shall be allowed to attend collective bargaining sessions between the City and the FOP, as FOP representatives. FOP representatives who attend a collective bargaining session shall be paid for such attendance unless they are off duty during a bargaining session and in such case they shall not be entitled to any compensation for their attendance at said bargaining session. All bargaining sessions shall be set by mutual agreement between the parties. The FOP shall notify the City prior to negotiation of the k names of the members attending as FOP representatives, provided however this attendance must be approved by the Chief of Police or the Chief's designee. FOP Directors, while on duty, shall be allowed to attend the City of South Miami FOP Lodge #179 Board of Directors meeting once per quarter without loss of pay or leave time for the duration of the meeting, unless the staffing needs of the Department prevent such attendance. All attendance of a Director while on duty shall require the prior approval of the I Chief of Police or the Chiefs designee. The FOP shall provide dates and times on a quarterly l basis and at least 30 working days prior to the board meeting to help facilitate staff i scheduling. Board Directors will not be allowed to attend meetings outside City limits while on -duty. If a Director is on duty, his attendance shall not exceed 2 hours total. f ARTICLE S. SERVICES TO THE FOP i r 1. The City will furnish the FOP with a copy of the Police Department's Rules and Regulations at or before the execution of this Agreement and within 48 hours of their modification. 2. The City will provide a mailbox for each employee for use by the City and the FOP to distribute mail and other communication. The aforesaid mailboxes shall only be used by the FOP for the purpose of transmitting material relative to issues concerningthis Agreement. The mailboxes shall not be used to disseminate anything relating to any kind of political issue or for the purpose of communicating material that tends to disparage any elected or appointed official, and/or any employee of the City, whether directly or indirectly. 3. Upon written request from the FOP to the City Manager, the City will provide, on a semi- annual basis, a complete roster of the bargaining unit, including name, rank, and current pay scale of each member of the bargaining unit. 4. All bargaining unit employees, including representatives and members of the FOP shall not engage in Union business while on -duty, or while on any City property, or while operating or being in any City vehicle or any other City property unless otherwise specifically permitted by this Agreement, including paragraph two of this article. 11 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 oral warnings of a similar nature. The City may also purge such records as authorized by Florida State Statute, Title X, Chapter 119 and Title XVIII, Chapter 257.36. Such documents shall be kept in a separate file until they are purged. ARTICLE 7. INTERNAL AFFAIRS INVESTIGATION AND OBLIGATION TO THE PUBLIC 1. The parties recognize that the security of the City and its citizens depends to a great extent upon the manner in which the employees covered by this Agreement perform their various duties. Furthermore, the parties recognize that the performance of such duties requires the involvement of those employees in all manner of contacts and relationships with the public and out of such contacts and relationships, questions may arise or complaints may be made concerning the actions of employees covered by this Agreement. Investigation of such questions and complaints must necessarily be conducted by, or under the direction of, departmental supervisory officials whose primary concern must be the security of the City and the preservation of the public interest and trust. 2. In order to maintain the security of the City and protect the interests and trust of its citizens, the parties agree that the City must have the unrestricted right to conduct investigations of citizens' complaints and matters of internal security; provided, however, that any investigative interrogation of an employee covered by this Agreement relative to a citizen's complaint and/or matter of internal security shall be conducted utilizing FS 112.532, 3. An employee, who is criminally charged in any jurisdiction with a felony or a serious misdemeanor including but not limited to, DUI, lewd and lascivious conduct, indecent exposure or perjury may, upon review of the circumstances bythe Chief of Police, be relieved of duty without pay and benefits. If exonerated, employee shall be compensated for back pay and benefits retroactive to the date the employee was relieved from duty without pay. Any employee placed on leave without pay shall remain on the City's Employee Census but shall be responsible for the full cost of health insurance premiums, during the relief from duty period. 4. Should disciplinary action result from an internal investigation, an employee may, at the option of the Chief of Police, be allowed to use vacation leave to satisfy a suspension which is for five (5) days or less. ARTICLE 8. SHIFTS 1. Seniority shall consist of continuous accumulated paid service in a police classification. ` Seniority shall be computed from the date of appointment to the police classification and shall accumulate during paid absences because of illness, injury, vacation, military or other 13 5 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 classification from a lower classification in which he held a permanent appointment, shall, to the extent approved by the Chief of Police and upon the employee's written request, be given a position in a lower classification in the same Department. Such employee's seniority in the __I.avuir: classifatiortshall-laenesfab]ihed=aEdodi�ig=to=the-date flf thomployee=s-permanent appointment to that classification. Employees shall be called back from layoffs according to the seniority in the classification from which the employee was laid off. No new employee shall be hired in any classification until all applicable employees on lay-off status in that classification for which they are qualified, have had an opportunity to return to work. Written notice of recall shall be sent by certified mail to the employee's last known address, as long as the employee is still qualified to be an Officer. Recalled employees shall notify the Employer if they desire to return to work within ten (10) calendar days of receipt of recall notice, and must return to work within twenty-one (21) calendar days from receipt of recall notice. An employee will be kept on the callback list for two (2) years. 7. Upon application to the Chief of Police, or the Chiefs designee, and his approval, employees may exchange shifts, provided that: The shift exchange is between employees of like rank and experience. b. The shift exchange is requested in writing at least ten (10) working days in advance by both employees involved in the exchange. 8. When a vacancy occurs on a patrol shift, the entire shift shall re -bid days off no later than two weeks after the vacancy has been filled. This provision shall apply only to the shift on which the vacancy occurs and not to any other shifts. This re -bidding provision also does not apply should the Chief of Police approve an exchange of shifts as provided for in paragraph 6 F of this Article and shall not apply if the vacancy is filled within one (1) month of the next shift/days off picked. i 9. The Department shall not modify, alter, adjust or otherwise change an employee's shift in order to avoid the payment of overtime for the purpose of staffing the following pre -planned City special events: a Santa's Elves Parade a Fourth of July • Martin Luther King Parade a Safe Streets Halloween 10. The chief retains the right to transfer employees from shift to shift to meet arising operational j needs. After a transfer between shifts, days off will be re -bid if the new assignee is junior to others on that shift. The rebidding of the shift wfllarly shall only be applicable during the first 15 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 & The bargaining unit member must submit a copy of the receipt detailing the vehicle license plate number, the make and model of the police vehicle, the name of the driver, and the date of the motor oil change, and the name, address of the establishment performing the work. barga{ning•unit member must retain=a°copy-of=theT--ecelpt-ferry=period=o�three=years=and•- must make it available upon request by the Chief of Police or the Chiefs designee. ARTICLE 10. PROMOTIONS 1. Employees shall be eligible to take a promotional examination after three continuous years of service as a Police Officer in the South Miami Police Department. 2. Promotional examinations shall be in accordance with validation standards and techniques as established by the Chief of Police. Criteria to be used by the Chief of Police for promotions shall be promulgated and distributed to the bargaining unit at least forty-five (45) Calendar days prior to any examination. 3. The City will list the areas which the examinations will cover and the sources from which the examination is drawn. At the conclusion of the examination, the names of all those employees who passed the examination shall be put onto a promotional eligibility list. 4. Whenever a budgeted promotional vacancy exists in a Police Sergeant classification, the City shall fill such vacancy within thirty (30) working days from an existing eligibility list, to the extent practicable, if a valid eligibility list is in existence. A promotional eligibility list will expire two (2) years from the date of the examination, which led to its creation. 5. The probationary period of employees promoted to Sergeant shall be one (1) year. An employee promoted to Sergeant and then demoted within the probationary period shall have no right of review or appeal, concerning such demotion. 6. The Chief of Police will have authority to promote any of the three (3) top ranked candidates on the eligibility list. ARTICLE 11. TRAINING 1. The City will provide midnight shift law enforcement officers covered by this Agreement, administrative leave for the last four(4) hours of their regular duty for weapons training if the training is approved by the Chief of Police and the training is within four (4) hours of the end of their tour of duty for that work week. 17 9 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 STEP 1: The grieving employee shall first take up the grievance with the employee's immediate supervisor within seven (7) calendar days of the occurrence of the event(s) WhicFa=gave=fise�ttfe-girievah�e,�nr if npfoyee-is-on=authorised=ieavduririg-that— �L time, then within seven (7) calendar days after the employee's return to work from authorized leave, as the case may be, and the seventh day shall hereinafter be referred to as the "Step 1 Deadline Date". This first step (between the employee and the immediate supervisor) shall be on an informal and verbal basis and shall not involve the FOP or any other representative of the employee. The immediate supervisor shall complete a grievance transmittal form ("first grievance transmittal form") within five (5) days of the meeting and it shall note nature of the grievance and the date and time of the discussion. If the grievance is not general in nature and does not fall under the duties and responsibilities of the immediate supervisor, then the immediate supervisor shall, within seven (7) working days of receiving the verbal grievance, forward the completed grievance transmittal form to the appropriate supervisor. Such supervisor shall: (a) meet with the employee and give a verbal response to the employee within 7 working days of receipt of the first grievance transmittal form; and (b) shall complete a second grievance transmittal form within five (S) days of the meeting noting the nature of the grievance i and the date and time of the meeting. STEP 2: Any grievance which cannot be satisfactorily settled in Step 1 shall be put in writing and delivered to the supervisor immediately above the appropriate supervisor in Step 1 within seven (7) working days of the meeting with the appropriate supervisor in Step 1. The Step 2 supervisor shall, within ten (10) working days after receipt of the written grievance (or such longer period of time as is mutually agreed upon), render a written decision on the grievance. STEP 3: Any grievance which cannot be satisfactorily settled with the appropriate supervisor in Step 2 shall next betaken up with the Chief of Police, or the Chief s designee, either by the employee himself, or through a representative of the FOP, at the employee's option. The grievance as specified in writing in Step 2 shall be discussed by and between the employee (or the representative of the FOP and the employee) and the Chief of Police or the Chief's designee, within seven (7) working days after the completion of Step 2. The Chief of Police, or the Chief's designee, shall within ten (10) working days after the discussion (or such longer period of time as is mutually agreed upon), render a decision in writing and deliver a copy to the FOP and the grievant; STEP 4: In the event the employee is not satisfied with the disposition of the grievance in Step 3, he shall have the right to appeal the decision of the Chief of Police, or the Chiefs designee, to the City Manager, or the Manager's designee, within seven (7) working days of the date of issuance of the decision of the Chief of Police or the Chiefs designee. Such appeal must be made by delivering a copy of the original written grievance, to the City Manager with a copy to the Chief of Police, together with a letter, signed by the employee, or the representative of the FOP, requesting that the decision of the Chief of Police, or 19 11 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 impartial arbitrator within fifteen (15) days of the demand for arbitration, the grievant must file his grievance with the Federal Mediation and Conciliation Service (FMCS) within twenty I (20) days of the delivery of the demand for arbitration and shall request a panel of five (5) _riarn s Th&Wrf-- is�hall=ra akeR ieir ctioiee-af-the=i61 11tial=arbitrator=by=alternately=rank ordering the panel of arbitrators (i.e. 1-7 with 1 being the most acceptable and 7 being the least acceptable) within seven (7) calendar days after receipt of the panel from FMCS. The parties may, by written mutual agreement, extend the time frame for rank ordering the panel of arbitrators. Copies of the arbitrator's award made in accordance with the jurisdiction and authority under this Agreement shall be furnished to both parties within thirty (30) calendar days of the close of the arbitration hearing. The arbitrator's award shall be final and binding on the parties. Either party may reject up to two (2) arbitration panels in any given case. 10. The City and employee, or the FOP with the written consent of the aggrieved employee shall mutually agree in writing as to the statement of the grievance to be arbitrated prior to the arbitration hearing, and the arbitrator, thereafter, shall confine his decision to the particular grievance thus specified. In the event the parties fail to agree on the statement of the grievance to be submitted to the arbitrator, the arbitrator will confine his consideration and determination to the written statement of the grievance presented in Step 2 of the grievance procedure. The arbitrator shall have no authority to change, amend, add to, subtract from, or otherwise alter or supplement this Agreement or any part thereof or amendment thereto. The arbitrator shall have no authority to consider or rule upon any matter which is stated in this Agreement not to be subject to arbitration or which is not a grievance as defined in this Agreement; nor shall this collective bargaining Agreement be construed by the arbitrator to supersede applicable laws in existence at the time of signing of this Agreement, except to the extent as specifically provided herein. The arbitrator shall not have the power or authority to interpret the unambiguous provisions of this Agreement. 11 Each party shall bear -the expense of its own witnesses and of its own representatives for purposes of the arbitration hearing. The impartial arbitrator's fee and related expenses and expenses of obtaining a hearing room, if any, shall be equally divided between the parties. Any party desiring a transcript of the hearing shall bear the cost of such transcript unless both parties mutually agree to share the said cost. ARTICLE 13. HOLIDAYS 1. The following paid holidays shall be granted under the following conditions: i. January 1 New Year's Day ii. 3rd Monday of January Martin Luther King's Birthday 21 13 AGREEMENT BETWEEN FOP AND CSM j RATIFIED BY FOP SEPTEMBER 7, 2018 connected injury or accident, but only after all available disability benefits offered under Workmen's Compensation are exhausted, provided further that use of sick leave in this manner shall be at the employee's request and is not mandatory. (d) Illness or injury to a member of a bargaining unit member's immediate family that requires the employee to care for that immediate family member. { 2. Employees shall be credited with one (1) day of sick leave at the end of each month active duty during the year. 3. Sick leave maybe taken only to the extent that it is accumulated. No advance sick leave shall be granted except in an emergency and upon approval of the City Manager. 4. Employees hired before October 1, 1995 will be eligible to receive the sick leave payout, with the existing cap of 600 hours, for the term of this Agreement. Employees who are hired on or after October 1, 1995, will not be eligible to receive any sick leave payout 5. Effective October 1, 1995, employees will be allowed to accrue sick leave in excess of the 600 hours cap. Nevertheless, the sick leave payout will be governed by section 4 of this Article. 6. All current employees as of October 1, 1995, will retain current payout provision upon termination of employment, and will have no cap on sick leave accrual. All employees hired after October 1, 1995, shall receive no sick leave payout upon termination, but will have a "no- cap" maximum on sick leave accrual. Employees who have not personally utilized more than thirty-two (32) hours of sick Icavc within a consecutive twelve (12) month period and now have a sick leave balance greater than 30 days (240 hours) shall be eligible to convert up to 5 days (40 hours) of sick leave to annual leave, provided that the employee retains sick leave minimum balance of 200 hours. The catastrophic illness bank will be abolished and accrued hours will return to employees who have accrued this leave. 7. An employee whose service with the City is terminated and who has taken sick leave that is unearned at the date of termination, shall reimburse the City for all salary paid in connection with such unearned leave, unless employment is terminated by the death of an employee, or the employee is unable to return to duty because of his disability, the evidence of which shall be supported by an acceptable medical certificate. 8. in all cases of absence on sick leave in excess of three (3) working days and in cases of absence on sick leave for any period less than three (3) working days when the Personnel Manager or Chief of Police, or the Chief's designee, ("Department Head") shall so direct, the written request for sick leave shall be accompanied by a certificate signed by the physician or other licensed medical practitioner treating the employee, certifying as to the incapacity of the employee during such period to perform the usual duties of the employee's position. Such directives of the Personnel Manager or Department Head shall be valid and in force for a period not to exceed twelve weeks. The Personnel Manager or the Department Head may 23 15 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ARTICLE 16. LEAVE OF ABSENCE 1. Leave without pay and without benefits maybe granted by the City Manager for a period not to exceed six (6) calendar months to enable the employee to receive professional or technical training which will improve their work upon their return to service, or because of the employee's extended illness or non -job -related disability, or bereavement. Leave without pay may be granted by the City Manager to an employee for a period not to exceed one (1) calendar month for any other purpose. Z Leave without pay granted to any employee shall not to be charged against vacation leave, but entry thereof shall be made upon the leave records of such employee, 3. Any employee granted leave without pay for six (6) months or more, shall not be entitled to return to his original position if it is not available but shall be entitled to be placed in another job position for which he qualifies and only if a job position is available. It is clearly understood that if the job position last held has been filled or eliminated, the Department will make every effort to place the employee in another job position for which said employee qualifies. If placed in another job position, said employee shall be entitled only to the wage scale for such new position. If no job position is available, the Department will give priority to said employee as soon as a new job position for which the employee qualifies, is available. ARTICLE 17. VACATION LEAVE The term "Vacation Leave" shall be used to designate leave with pay granted to an employee on the following prorated basis: Years of Uninterrupted Service Amount of Vacation a) 1 to 5 years inclusive. 8 hours per month b) 6 to 14 years inclusive.10 hours per month c) 15 to 19 years inclusive. 12 hours per month d) 20 years and over. 14 hours per month (i) Vacation shall require approval of the Chief of Police or the Chiefs designee, and at no time shall an employee be allowed more vacation leave than has been accumulated. (ii) Earned vacation leave is principally intended for use during the year in which it is earned. Under exceptional circumstances and upon written request 25 17 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 Compensatory leave will be considered as time actually worked. Employees whose hours of actual work exceed forty (40) hours in a workweek shall be compensated at the rate of time and one-half of the employee's regular straight -time rate for all time worked in excess of 40 hours=in=a=wor-kv,iedk.-All-availabl�r�vertime=shall be.offered-to=bargaining=unit-employees-in order of seniority unless the existence of emergency or exigent circumstance do not allow a reasonable amount of time to contact employees on a seniority basis or unless the work involves 'crime prevention details' burglary details, traffic, 'wolf -pack' details, etc. 2 If an employee covered by this Agreement is called to work at a time outside his scheduled working hours after he has actually worked a forty (40) hour workweek , he shall receive a minimum of four (4) hours' pay at the rate of time and one-half his regular -straight time for such work occurring outside his scheduled working hours. However, if the employee is called to work during a holiday, the employee shall be paid in accordance with Article 13 and not this Article. 3. Employees who are required to attend an off -duty deposition or court appearance after having actually worked a forty (40) hour workweek and when the appearance is as a subpoenaed witness in the federal or state courts or as a deponent in pending criminal, civil or traffic cases involving or arising out of the discharge of the employee's duties in the course of his employment with the City, he will receive a minimum of four (4) hours pay at the rate of time and one half of their regular straight -time rate. Employees shall be allowed to retain witness and travel fees received for court and deposition appearances. 4. Employees, who participate in authorized special events for the City, shall be entitled to be paid at the rate of time and one-half of the employee's regular straight time rate regardless of actual hours worked during that pay period. 5. If the officer is required to hold over for any reason within one hour of the normal tour of duty after having actually worked a forty (40) hour workweek, it will be considered an extension of the shift, entitling the officer to overtime pay. ra Insofar as possible, employees covered by this Agreement shall be given forty-eight (48) hours' notice of any changes in their regular hours of work. Further, insofar as possible, the Department will avoid scheduling an employee to work on continuous shifts. Should an employee be scheduled to work continuous shifts, their days off may be adjusted within the same pay period by the Department. Employees shall be given two (2) weeks' notice of normal shift change. 7. No supervisor or official shall take action to cause the non-payment of overtime in circumstances wherein an employee covered by this Agreement has performed work, which entitles him to payment of overtime as provided herein, provided that nothing herein shall restrict the City or the Department from altering work schedules or taking any other action 27 19 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 1 The FOP and its members recognize that the City has the exclusive right to manage and direct all. of its operations and when these rights are exercised they shall not be the subject of any - .=grievance= -Accordingly, the -City --specifically, -but -not-by-way-of�-limitation, -reserves- the exclusive right without redress by the employees or the FOP to: a. Decide the scope of service to be performed and the method of service; b. Hire and/or otherwise determine the qualifications of employees and the criteria and standards for employment; c. Fire, demote, suspend or otherwise discipline employees for proper cause including a violation of the criteria and standards for employment d. Promote and determine the qualifications of employees; e. Layoff and/or relieve employees from duty due to lack of work; f. Transfer employees from location to location and from time to time; g. Rehire employees; h. Determine the starting and quitting time and the numbers of hours and shifts to be worked subject to Article 20; i. Determine the allocation and content of job classifications; j. Formulate and/or amend job descriptions; k. Merge, consolidate, expand, curtail or discontinue temporarily or permanently, in whole or in part, operations whenever in the sole discretion of the City good business judgment makes such action advisable; I. Contract and/or subcontract any existing or future work; m. Expand, reduce, alter, combine, assign, or cease any job; n. Determine whether and to what extent the work required in its operation shall be performed by employees covered by this Agreement; o. Control the use of equipment and property of the City; Determine the number, location, and operation of headquarters, annexes, substations and divisions thereof, 21 29 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 above, are contrary to the ideals of professionalism and to the City's community responsibility. Accordingly, it is understood and agreed that in the event of any violation of this Article, the City shall be entitled to seek and obtain legal and/or equitable relief in any ---cour-t-o.Ubmpetent=jurUdictionr---- ------ --- 4. For the purpose of this Article, it is agreed that the FOP shall be responsible for any act committed by its officers, agent, and/or representatives which act constitutes a violation of state law or the provision herein. In addition to all other rights and remedies available to the City under State law, in the event of a breach of the provisions herein, the City shall have the right to unilaterally and without further notice terminate this collective bargaining Agreement, withdraw recognition from the FOP, and cease dues deductions. ARTICLE 23. AWARDS The City and Employees agree to be bound by and abide by the Awards policy as developed by the Chief of Police. ARTICLE 24. MILITARY LEAVE Any employee covered by this Agreement shall provide a minimum of two weeks advance notice of their official orders requiring their attendance for training or other active duty as a member of the United States Armed Forces or the State of Florida National Guard and shall be entitled to military leave pursuant to Chapter 115.07, Florida Statutes. ARTICLE 25 AUTHORIZED USE OF PRIVATE AUTOMOBILE An employee authorized to use their private automobile by the Chief of Police or the Chief's designee in the performance of their City duties will be compensated at the mileage rate prescribed by Florida Statutes. Such mileage shall be computed based on the distance between the employee's regular duty station and the place of assignment or the employee's residence and the place of assignment, whichever is shorter. Mileage shall not be paid for commuting to and from the regular duty station or for court appearances or case -related conferences and depositions. ARTICLE 26. BULLETIN BOARDS 23 31 i AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 5. Police officers assigned to uniform patrol who are covered under this Agreement and are assigned to afternoon or midnight shifts shall receive a shift differential pay of$0.35 I _ —_(afternoon_-shift)-or-_$0.50-(midnight-shift).-Sergeants-assigned--to-.uniform•-patrol who- are covered under this agreement and are assigned to afternoon or midnight shifts shall receive a shift differential pay of $0.45 (afternoon shift) or $0.60 (midnight shift). The shift differential, for overtime and pension calculation, is not tied to the base. Hours must be actually worked in order to receive the differential pay. 6. Upon ratification Police Officers and Sergeants covered under this Agreement who are assigned to the following specialized units shall be eligible for an assignment pay of $80 per pay period. The assignment pay is not tied to the base for overtime and pension calculation. Employees eligible for specialized unit pay will only be eligible for one such $80 increase regardless of how many specialized units they participate in. a) Motors/Traffic Unit b) G.I.U. c) S.I.U. d) Community Patrol/PAL e) K-9 f) SWAT 7. Upon ratification bargaining unit members shall receive an 8% cost of living adjustments based on the Consumer Price Index for the last 5 years - All Urban Consumers 12-Month Percent Change for the Miami -Ft. Lauderdale FL area (CPI), (computed as the aggregate, of the last 5-years of COLA years of the COLA shall, 12-month average change percentage). Payments shall not be retroactive and the last five (5) years of the COLA shall only be used for calculating this onetime increase. 8. For the purposes of this agreement the Consumer Price Index shall be calculated as follows - All Urban Consumers 12-Month Percent Change for the Miami -Ft. Lauderdale FL area (CPI) which shall have the effect of increasing the pay for each employee, unless the CPI is zero or is negative, which shall then have no decreasing effect on the employee's pay. The cap on the CPI increase shall be at 3.0%. 9. Effective October 1, 2018, the merit step pay program shall be implemented and begin as follows for all Officers and Sergeants: A merit pay increase will be available to be awarded at the end of the month upon completion of an anniversary year within the employee's classification provided he meets the provisions contained in this Article. Step 1: 3.5% Step 2; CPI 33 25 i f AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ARTICLE 30. UNIFORMS ANDEQUIPMENT 1. Employees covered by this Agreement shall receive from the City upon appointment, at no i. cost to the employee, a new uniform, which shall consist of the following: (a) One (1) long sleeve shirt; (b) Five (5) short sleeve shirts; (c) Five (5) pairs of trousers; (d) One (1) hat; (e) Badge and name tag; (f) Duty belt and accessories to include: but not be limited to: handcuffs case cartridge case, holster and hand held radio holder; (g) The appropriate quantity of ammunition; (h) One (1) jacket with zip -out lining; (i) One (1) pairs police low quarter corfam shoes and one (1) pair alternative footwear (IE Boots, sneakers Etc.); (j) Raingear 2. The above items shall be replaced as needed, by the City, within a reasonable amount of time after the employee has submitted a written request. Such requests shall include the reason For replacement and is contingent upon approval of the Chief of Police orthe Chiefs designcc, via Ihp chain of command. 3. Commencing with the ratification of this Agreement, employees who are required to wear non issued clothing will receive a clothing allotment of $700 dollars annually. One-half (1/2) of said allotment will be paid on the pay day nearest the 15th of December of each year and the other one-half (1/2) will be paid on the pay day nearest the 15th of June of each year provided that the employee is employed on said day. 4. Commencing with the ratification of this agreement, uniformed employees covered under this Agreement will receive a clothing allowance of $400 dollars annually. One-half (1/2) of said allotment will be paid on the pay day nearest the 15th of December of each year and the other one-half (1/2) will be paid on the pay day nearest the 15th of June of each year provided that the employee is employed on said day. Any employee who receives a clothing/uniform allowance in advance who terminates employment, except for retirement, will have a prorated portion of that allowance deducted from the final paycheck. No final paycheck will be given the terminated employee until all city -owned property such as uniforms and equipment, ID, etc. has been returned to the City. 5. Commencing with the ratification of this Agreement each bargaining unit employee covered 35 27 discretion. AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 -- --ARTICLE-32�-RETIREMENT-BENEFITS---_.... --- 1. Each employee who retires based on receiving full retirement benefits without penalty or medical disability shall receive an honorary one -grade promotion and shall be issued a badge and identification card clearly marked "retired". The honorary one -grade promotion shall not affect salary, benefits or the calculations of pension and/or distributions. 2. The following changes in retirement benefits are hereby agreed and are incorporated hereto as historical data: a. Effective October 1, 1995, the benefit accrual rate (multiplier) shall be increased from 1.9 % to 2.25 % for services performed in the 1995-1996 fiscal year; b. Effective October 1, 1996, the benefit accrual rate (multiplier) shall be increased from 2.25% to 2.50% for services performed in the 1996-1997 fiscal year; c. Effective October 1, 1997, the benefit accrual rate (multiplier) shall be increased from 2.50% to 2.75% for services performed in the 1997-2001 fiscal years. d. Effective October 1, 2001, the benefit accrual rate (multiplier) shall be increased from 2.75 to 2.80 percent for services performed in the 20012002 fiscal year. Effective October 1, 2002, the pension benefit accrual rate (multiplier) for sworn police personnel shall be increased from 2.80 percent to 2.90 for services performed in the 2002-2003 fiscal year. e. Effective October 1, 2003 and thereafter the pension benefit accrual rate (multiplier) for sworn police personnel shall be increased from 2.90 to 3.00 percent. The multiplier factor for all years of service prior to October 1, 1993, the multiplier shall be 1.6%. For services rendered during fiscal year 1993-94 (October 1,1993 through September 30,1994), the multiplier shall be 1.8%. f. For services rendered during October 1, 1994 through September 29, 1995, the multiplier shall be 1.9% to be applied at the time of retirement of each bargaining unit employee covered by this Agreement. 3. Bargaining unit employees shall be 100% vested in the retirement plan when completion of 29 AGREEMENT BETWEEN FOP AND CSM f RATIFIED BY FOP SEPTEMBER 7, 2018 `• t. i 10. Employees covered by this Agreement shall be allowed to apply for permission to purchase credit for immediate past City service as a member of the bargaining unit up to a maximum of five (5) years in the South Miami Retirement System pursuant to procedures to be _prom ulgated_by-the-City. _in..consultation,with_the-FOP. The -actuarial -and -technical -language is to be prepared by actuarial company, approved by the City and the FOP, and adopted by the Pension Board. Any condition or impairment of health of any police officer caused by tuberculosis, hypertension, heart disease, or hardening of the arteries, resulting in total disability or death, shall be presumed to be accidental and suffered in the line of duty unless the contrary be shown by competent evidence. 11. Effective July 1, 2011, the maximum amount of overtime hours for pension calculations for any one fiscal year shall not exceed 300 hours. The day following the ratification of this Agreement, any accumulated time which is eligible for payout upon separation from employment with the City shall remain eligible for pension calculations and subject to pension contributions upon payout. Any accumulated time that is eligible for payout after the ratification of this Agreement will be considered new accumulated time. Any and all new accumulated time, eligible for payout upon separation from employment with the City, shall not be eligible for pension calculation or subject to pension contributions. 12. Effective upon the ratification of this Agreement employees hired on or after October 1, 2011 covered by this Agreement shall enter the pension plan immediately upon being hired as a sworn law enforcement officer. 13. Attached hereto and incorporated by reference herein, is Ordinance 16-08-1951 adopted May 20, 2008, entitled "Pension Plan," as amended. 14. Upon ratification, the City of South Miami will begin the process for a 5 year Deferred Retirement Option Program referred to as the DROP. The full implementation of the DROP will commence upon updating the City of South Miami Retirement Ordinance. Officers and Sergeants who are eligible to retire with full benefits (as stated in the CSM Retirement Ordinance) without penalty will be allowed to enter the DROP. The member's DROP account shall be credited with interest in an amount equal to fifty (50) percent of the net (gross return minus investment expense) yearly interest earned by the retirement system for the preceding fiscal year, up to a maximum of five (5) percent. If the net yearly interest earned by the retirement system is zero (0) percent or less, the member's DROP account will not be credited with interest, nor will it be debited with any investment losses. The City agrees to implement the DROP program within one (1) year after ratification of this agreement. ARTICLE 33. EDUCATIONAL INCENTIVE 1. The City agrees to bear the cost of tuition for specifically applicable specialized education courses to better equip the Officers for the performance of the particular job and/or position 39 31 AGREEMENT BETWEEN FOP AND GSM RATIFIED BY FOP SEPTEMBER 7, 2018 becomes pregnant shall be entitled to unpaid maternity leave. Such unpaid maternity leave shall be granted for a period of up to six (6) months. In the event that the pregnant employee has any accrued annual leave, sick leave or comp time, she may use all or any —part-of the -accrued leave -at_her-request.in..lieu_of_unpaid -leave.-------- ------.---- - - - ARTICLE 35. EMPLOYEE ASSISTANCE PROGRAM The City and the FOP concur that an Employee Assistance Program (EAP) exists within the City Personnel Manual and can be of great value in supporting the operations of the Police Department and to bolstering the welfare of the Department's law enforcement personnel. ARTICLE 36. ABOLISHMENT OR MERGER Whenever the abolishment or merger of the Police Department is contemplated, the FOP shall be informed of such plans in advance. Additionally, the FOP shall be given an opportunity to be apprised concerning the impact of such abolishment or merger proposal upon this Agreement. ARTICLE 37. AMERICANS WITH DISABILITIES ACT ADA Notwithstanding any other provision of this Agreement, the FOP agrees that the City may take whatever actions may be necessary to comply with the Americans with Disabilities Act or the Florida Civil Rights Act to provide reasonable accommodation to individuals with disabilities as required under those laws. To accomplish this, the City shall notify the FOP of the action it intends to take to comply with the ADA or the Florida Civil Rights Act. However, any contention or claim that the City violated any provision of the Americans with Disabilities Act or the Florida Civil Rights Act shall be exclusively resolved through available administrative or judicial remedies, and shall not be subject to the grievance procedure herein. ARTICLE 38. TERM OF AGREEMENT Except as provided herein, all provisions of this. Agreement shall be effective September 18, 2018 and shall remain in force for three (3) years until September 17, 2021. 41 33 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 City of South Mia y: t ie er, Manager r Re Landa, Chief of Police egality: By: kho s Pepe, Esq., City A orney Fraternal Order of Police: . TNapM lamer , �� Date: Date: !C� -Lz o I p Date: v 2� 2vlg Date: Date: V ! 43 35 ORDINANCE NO. An Ordinance amending the South Miami Pension Plan to Implement the Collective Bargaining Agreement Between the City of South Miami and AFSCME Local 3294; by Amending Section .16-12, "Definitions"; and Adding Section 16-28, "Deferred Retirement Option Plan" by permitting certain employees to enter the Deferred Retirement Option Plan: by providing the terms of the Deferred Retirement Option Plan; providing for Severability; Providing for Inclusion in the Code; Providing for a Repealer; and Providing for an Effective Date. WHEREAS, the City of South Miami and the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294. the Florida State Lodge, Fraternal Order of Police Inc. and the Dade County Police Benevolent Association Inc. (hereinafter "Unions"), have entered into new Collective Bargaining Agreements ("Agreements"); and WHEREAS, one of the purposes and intentions of the Agreements are to provide for a Deferred Retirement Option Plan; and WHEREAS, Florida law requires that if any provision of a collective bargaining agreement is in 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 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 for in the Agreement; and 45 4 No additional creditable services. Upon entering the DROP the ❑ROP Member shall not receive any additional creditable service for penston purposes- Additionally, the amount of final average salary for calculation ❑f pension benefits shall be determined as of the date of entering the DROP. No payment shall be made for accrued unused leave upon entering the DROP, nor shall the amount of accrued unpaid leave be used in the calculation in the amount of pension benefits. 5 Election of optional farms of a ment, Upon entering the DROP the DROP Member may elect an optiDnal form of oayment. Once the election is made. it may not be changed The DROP member may elect a beneficiary who may be the same as or different than the beneficiary elected to receive the annuity ortion of the pension. (g) Contributions, Upon the effective date of the DROP Member's commencement of participation in the DROP, the DROP Member's contribution shall be discontinued. (7) Irrevocable resignations. The Board of Trustees for the South Miami Pension Plan shall promulgate the appropriate administrative forms for administering the DROP, which forms must include, at a minimum, an irrevocable resignation_ from em to meet from the City of South Miami which is effective no more than five (5) years from the date of entry into the DROP. The resignation is irrevocable. A DROP Member may actually separate from service prior to the expiration of the five-year period, but may not continue in the em to ment of the City of South Miami in a position which requires membership_ in the South Miami Pension Plan after the five-year period. A DROP Member may participate in the DROP_only once. 47 DROP Member's designated beneficiary. or, if no surviving designated beneficiary, to the DROP Member's estate and shall no longer be credited to the DROP Member's account_ c. Upon separation of a DROP Member's employment with the Cit of South Miami from a position that is covered by the South Miami Pension Plan, the balance credited to the DROP Member's DROP account may be distributed in a lump sum periodic payments, an annuity or a combination thereof to the DROP Member. Alternatively. a DROP Member may also elect to rollover the DROP account to an eligible retirement plan. including an individual retirement account. pursuant to Section 401(a)(31)_of the Internal Revenue Code, or any other distributions permissible to the Internal Revenue Cade _and regulations promulgated thereunder. Distribution must commence not later than provided in Section 401 a 9 of the Internal Revenue Code. 12 DROP balance distribution in the event of death of a DROP Member, If a DROP Member dies before his or her DROP account balance is distributed in full. the lump -sum distribution shall be made as soon as is admInistratively feasible but no later than December 31 of the calendar year in which the first anniversary of the nROP Members date of death occurs. to the DROP Member's surviving designated beneficiary, or if there is no surviving designated beneficiary, the former DROP Member's estate. (13) Administrative rules and regulations. The Board of Trustees shall have authority_ to promulgate administrative rules and regulations for the carrying out of the DROP. (14) Loss to DROP account balance. A DROP member shall have their principal balance decreased if an accrued loss results over the total DROP period as a result of administrative expenses Incurred, Section 3. Codification. The provisions of this ordinance shall become and be made part of the Code of Ordinances of the City of South Miami as amended; that the sections of . • EXECUTION THEREOF CITY ATTORNEY Vice Mayor Commissioner Commissioner Commissioner JAWPDocs\5645.001 - City of South Miami -Ordinance Prep\Ordinance\South Miami Ordinance Creating DROP v.6.doc 51 U J h'I"I V [i z LLJ 10 N t (M Lin oc0 .G -G o C C o cCtl C b h YO ° N°° aJ U i. W FL r '� C O L'b a v my C E ¢ w N C O O 7 vLi y v 0 U ¢ N OU G° u. 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