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Ord No 20-23-2471ORDINANCE NO. 20-23-2471 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AMENDING THE SOUTH MIAMI PENSION PLAN; BY AMENDING CHAPTER 16 "PENSIONS", ARTICLE II "CITY PENSION PLAN", SECTION 16- 12 , "DEFINITIONS"; SECTION 16-14, "PENSION BENEFITS AND RETIREMENT DATE"; AND BY AMENDING SECTION 16-17, "TERMINATION OF EMPLOYMENT"; AND PROVIDING FOR SEVERABILITY; PROVIDING FOR IN CLUS ION IN THE CODE; PROVIDING FOR CONFLICTS; AND PROVIDING FORAN EFFECTIVE DATE . WHEREAS , th e City Commission des ire s to amend the eligibility and vesting requirem e nt s for members of the administration management ser vice class ("AS M C") orthe C ity 's pension plan ; and WHEREAS, the C it y Co mmi ss io n ha s determined that amending the C it y's pen s ion plan is in the best int e re s ts of th e C ity and its re s id en ts. NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section I. Recitals. The foregoing rec it a ls are hereby ratified and incorporat ed b y reference as if fully set forth he rein and as the leg is la ti ve intent of thi s Ordinance. Section 2. Amending Section 16-12 of the Code. Chapter 16 , Article ll, of the C ity of South Miami Co d e of Ordinances is here b y amended by amending Sec ti o n 16 -12 , "Definiti o ns" as follows: Sec. 16-12. -Definitions. * * * 1 Ord. No. 20-23-24-2471 AMSC member shall mean a member of the administration management service class. On or after [October 17. 20231. the AMSC It will be composed of employees who hold only the following positions: City Manager City Attorney City Clerk AssistantiDeputy City Manager Finance Director/Chief Financial Officer Chief of Police Planning and Zoning Director Building Director Director of Public Works Chief a8miaistrative eraeer (e\:lffeatly Manee eraee maftage~ Chief pree1:lremeat sffieer (e1:lffeatly p1:lf6ftasiag maaager) Director of Parks. Recreation and Culture (fonnerly known as Parks and recreation director) Development Services Director Cefll:Ift1:lBity redevelepmeat ageRey direetsr PefSsllftel maaager Prejeet maaager Speeial assistant te the maaager S1:lperiateRdent ef maiflteaaaee l\:ssistaat direeter ef paRffi and reereatisR Notwithstanding the forgoing. an employee who was employed in one of the following positions on [October 17. 2023J shall remain a member of the AMSC for as long as they are employed in such position. or another position included in the AMSC after October 17. 2023. Employees initially hired or promoted into the following positions on or after [October 17.20231 shall be second tier members of the city pension plan: Chief administrative officer (currently [fiance office manager) Chief procurement officer (currently purchasing manager) Community redevelopment agency director 2 Ord. No. 20-23-2471 Personnel manager Project manager Special assistant to the manager Superintendent of maintenance Assistant director of parks and recreation * * * Section 3. Amending Section 16-14 of the Code. Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-14, "Pension benefits and retirement date" as follows: Sec. 16-14. -Pension benefits and retirement date. (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows: * * * (3) AMSC members. The normal retirement date for AMSC members hired before [September 7, 2021] shall be the earlier of (a) age sixty (60) and completion of five (5) years of credited service; or (b) age fifty-five (55) and completion of twenty (20) years of credited service; or (c) completion of thirty- three (33) years of credited service. The normal retirement date for AMSC members hired on or after [September 7, 2021] shall be the earlier of (a) age sixty (60) and completion of tea (10) five (5) years of credited service; or (b) age fifty-five (55) and completion of twenty (20) years of credited service; or (c) completion of thirty-three (33) years of credited service. * * * Section 4. Amending Section 16-17 of the Code. Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-17, "Termination of employment" as follows: * * * 3 Ord. No. 20-23-2471 Sec. 16-17. -Termination of employment. (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 1 is elected before the participant's nonnal retirement date. Option 1: A cash payment of an amount equal to the aggregate of the contributions made by the participant prior to tennination 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: For vested participants, pension benefits commencing on what otherwise would have been the nonnal 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 prior to 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 on which pension benefits commence; or an amount detennined in accordance with subsection 16-14(a) or 16-14(b), whichever is applicable. Police officer participants, including bargaining unit employees, shall be one hundred (100) percent vested in the retirement plan upon completion of ten (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 of ten (10) years of continuous credited service. All second tier members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous credited service. AMSC members hired on or after [September 7, 2021] shall be one hundred (100) percent vested in the pension plan upon completion oftes (10) five (5) years of continuous credited service. AMSC members who are employed on [September 7, 2021] shall be one hundred (100) percent vested in the pension plan. General employees and AMSC members who opt to join the defined contribution plan of the City of South Miami shall vest in the defined contribution plan after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995 and have ten (10) years or more of continuous service will be one hundred (100) percent vested. * * * 4 Drd . No . 20 -23 -2471 Section 5. Severabilitv. If a ny sec ti o n, cl a use, se nte nce , o r phrase of thi s o rdin an ce is fo r a n y reaso n he ld in va lid o r un co nstitut io na l by a cO ll rt of com pete nt jurisdi ct io n , thi s ho ldin g s ha ll not affec t th e va lid ity o f th e rem a ining po rti ons of thi s o rdin a nce. Section 6. Ordinances in C onflict. A ll o rdinan ces o r parts o f o rdin a nces and a ll secti o ns and part s of secti o ns o f o rdin ance s in direc t co nfli c t he rew ith ar e he reby re pea led . However, it is no t th e int ent oflhi s sectio n to re pea l e nt ire ordi na nces , or pa rt s of ordin ances, th a t g ive th e a pp earance of be in g in conflict w h en th e tlVO o rdin ances can be harmonized o r when on ly a pOl1 io n of th e o rd inance in co n fl ict need s to be re pea led to harn lOn ize t he o rd ina nces. If th e o rdi n a nce in co nfli c t ca n b e hanno ni zed by am ending it s te rm s, it is he re by a mend ed to ha rm o ni ze th e two o rd ina nces. The re fo re, o nl y th at p0l 1i o n th at nee ds to be re peal ed to harm o ni ze th e two o rdin ances s h a ll b e re pea led . S ection 6. E ffective Date. Thi s ord in a nce sha ll beco m e effecti ve upo n e nac tm e nt. P ASSE D AN D AD O PTED thi s 17th day of Oc to be r, 20 23. ATIES T : 1st R eadin g : 10/3/23 2nd R ea din g: 10117 /23 READ AN D APPROVE D AS TO FO RM, LAN G UAG E, L EGAL IT Y, AN D EXE CUT IO EREO F 5 A PPROVE D : ~ COMMIS SION VOTE: Mayo r F ern a ndez: V ice Mayo r Bonich : Conunissio ner Ca ll e : 4-0 Yea Abse nt Yea Co mmi ss io ner L ieb ma n : Yea Co mmiss io ner Co rey: Yea Agenda Item No:10. City Commission Agenda Item Report Meeting Date: October 17, 2023 Submitted by: Alfredo Riverol Submitting Department: Finance Department Item Type: Ordinance Agenda Section: Subject: AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AMENDING THE SOUTH MIAMI PENSION PLAN; BY AMENDING CHAPTER 16 “PENSIONS”, ARTICLE II “CITY PENSION PLAN”, SECTION 16-12, “DEFINITIONS”; SECTION 16-14, “PENSION BENEFITS AND RETIREMENT DATE”; AND BY AMENDING SECTION 16-17, “TERMINATION OF EMPLOYMENT”; AND PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. 3/5 (CITY MANAGER-FINANCE DEPT.) Suggested Action: Attachments: Memo_-_AMSC_Member_Revision (2).docx AMSC_Pension_Ordinance_9.19.23_CAv1.docx Article II - Section 2.5 - Departments.pdf Ordinance No 22-16-2255 - Created AMSC.pdf Ordinance No. 23-19-2336 - 5-year Vesting and New Members.pdf Ordinance No. 18-21-2408 - 10-years Vesting.pdf AMSC Actuarial Impact Statement 10-1-2022.pdf MDBR Ad.pdf MH Ad.pdf 1 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM TO:The Honorable Mayor, Vice Mayor, and Members of the City Commission FROM:Genaro “Chip” Iglesias,City Manager DATE:October 17, 2023 SUBJECT:Revising the Vesting Period and Allowable Members to the South Miami Pension Plan for Administration Management Service Class (AMSC). RECOMMENDATION: Approval of the Ordinance on second reading,revising the vesting period and reducing the positions eligible to join the South Miami Pension Plan AMSC. BACKGROUND: On September 20, 2016, the City of South Miami City Commission unanimously adopted Resolution 22-16-2255 establishing the South Miami Pension Plan for Administration Management Service Class (AMSC). As provided in the memo that accompanied the Ordinance, the intent of establishing the AMSC was to aid in retaining our City employees and hiring the best talent, particularly for executive, upper-level management positions. When the Ordinance was adopted in 2016, the vesting period was established at 3 years. On June 18, 2019, the Mayor and Commission adopted Ordinance 23-19-2336,which increased the vesting period from 3 years to 5 years and on September 7, 2021, the City Commission adopted Ordinance 18-21-2408, extending the vesting period from 5 years to 10 years,in an effort to help mitigate the increase cost for the changes to the plan, one of which was increasing the allowable positions (titles) covered under AMSC. The City is recommending revising the vesting period to 5 years for AMSC, to remain true to the initial intent of using the pension benefit as a hiring tool to retain the best talent.The City further recommends eliminating certain positions that are currently eligible to participate in the AMSC, to be more consistent with Article II, Section 2.5 of the City’s Code of Ordinance and, to mitigate any possible financial effect that decreasing the vesting period would have on the plan. Individuals holding the positions currently covered under the AMSC class will remain in the plan, however, all future employees who assume positions no longer designated within the AMSC will not qualify to participate. 2 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM Positions eligible to participate in the AMSC plan will be adjusted as follows: 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 Director of Parks, Recreation and Culture (formally known as Parks and Recreation Director Development Services Director Chief administrative officer (currently finance office manager) Chief procurement officer (currently purchasing manager) Community redevelopment agency director Personnel manager Project manager Special assistant to the manager Superintendent of maintenance Assistant director of parks and recreation FUNDING: Gabriel, Roeder, Smith & Company, the City’s pension actuary, provided a projection study on September 7, 2023, which reflects the current City cost over the next five (5), ten (10), and thirty (30) years for the baseline (current plan) and for the proposed benefit changes described above both as a dollar amount and as a percentage of projected covered payroll, respectively. 3 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM In maintaining the City’s pension plan funding ratio of 104.8% as of the October 1, 2022 Actuarial Valuation, and while continuing to maintain the employer of choice for key City director positions, the proposed changes provide the City with savings, which will continue to increase in future years. ATTACHMENTS:Proposed Ordinance Gabriel, Roeder, Smith & Company’s September 7, 2023, Projection Study Article II -Section 2.5 –Departments Ordinance No 22-16-2255 Ordinance No. 23-19-2336 Ordinance No. 18-21-2408 4 9/8/23, 10:55 AM South Miami, FL Code of Ordinances about:blank 1/1 Sec. 2-5. - Designated; titles of department heads. The administrative service of the city shall consist of the following departments and the department/division heads shall be known by the titles shown: DEPARTMENT/DIVISION DEPARTMENT/DIVISION HEAD (1)Administrative City Manager (2)Finance Finance Director (3)Legal City Attorney (4)Police Chief of Police (5)Public Works Director of Public Works (6)Building Building Director (7)Planning and Zoning Planning and Zoning Director (8)Records City Clerk (9)Recreation Recreation Director (10)Oce of Development Director, Oce of Development (Ord. No. 404, § 3, 4-1-58; Ord. No. 773, § 1, 4-3-73; Ord. No. 864, § 1, 6-10-75; Ord. No. 944, § 1, 7-19-77; Ord. No. 1574, § 1, 2-7-95; Ord. No. 1610, § 1, 5-21-96) 10 11 ORDINANCE NO.22-16-2255 An Ordinance amending the South Miami Pension Plan to 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, as it 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" to set 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 to set 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 City of South Miami and the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294 (hereinafter "Union"}, have entered into a new Collective Bargaining Agreement ("Agreement"), effective June 22, 2016 to June 21, 2019; and WHEREAS, it is 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 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 decided to create a new class of employees, comprised of the Administration Management Service Class ("AMSC") and to permit members. of the AMSC to join 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 for in the Agreement; and 1 ORDINANCE NO.22-16-2255 An Ordinance amending the South Miami Pension Plan to 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, as it 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" to set 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 to set 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 City of South Miami and the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294 (hereinafter "Union"), have entered into a new Collective Bargaining Agreement ("Agreement"), effective June 22, 2016 to June 21,2019; and WHEREAS, it is 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 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 decided to create a new class of employees, comprised of the Administration Management Service Class ("AMSC") and to permit members. of the AMSC to join 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 for in the Agreement; and 1 12 Ord. No. 22-16-2255 WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the pension plan; NOW, THEREFORE, BE IT 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 City of South Miami Code of Ordinances is hereby amended by adding to it the following definitions: Definitions. *** AMSC Member shall mean the Administration Management Service Class. It will 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-time by the employer on a 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 to eligibility date as defined in section 16-13 of this Code, (in writing) 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. 2 Ord. No. 22-16-2255 WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the pension plan; NOW, THEREFORE, BE IT 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 City of South Miami Code of Ordinances is hereby amended by adding to it the following definitions: Definitions. *** AMSC Member shall mean the Administration Management Service Class. It will 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-time by the employer on a 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 to eligibility date as defined in section 16-13 of this Code, (in writing) 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. 2 13 Ord. No. 22-16-2255 * * * Section 2: That Chapter 16 Article II, Section 16-12, "Definitions" of the City of South Miami Code of Ordinances is hereby amended by amending the definition of average final compensation as follows: Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner. For general employees, except for Second Tier Members and AMSC 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 definition of final 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 City of 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 of final 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 16 Article II, Section 16-12, "Definitions" of the City of 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 with military service during which the participant's employment rights were protected by law shall not be considered to have broken the continuity of his 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 3 Ord. No. 22-16-2255 * * * Section 2: That Chapter 16 Article II, Section 16-12, "Definitions" of the City of South Miami Code of Ordinances is hereby amended by amending the definition of average final compensation as follows: Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner. For general employees, except for Second Tier Members and AMSC 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 definition of final 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 City of 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 of final 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 16 Article II, Section 16-12, "Definitions" of the City of 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 with military service during which the participant's employment rights were protected by law shall not be considered to have broken the continuity of his 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 3 14 Ord. No. 22-16-2255 for police officers Chapter 185 of the Florida Statutes after honorable discharge from the military service. Further, that the employee has paid an amount equal to the contributions that would have been made during such leave of absence based on the participant's salary immediately prior to entry into military service, provided that police officer participants shall not be 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 City of 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 on which he 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 for all employees hired on or after October 1, 1995, to join the pension plan after completion of six (6) months of employment by the city. (d) All general employees who are hired by the City of South Miami on 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 ICM.A. RC ~defined contribution plan of the City of South Miami (DC) 457 Plan. (e) Employees who are hired on or 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 on or 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 planlCMA 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. 4 Ord. No. 22-16-2255 for police officers Chapter 185 of the Florida Statutes after honorable discharge from the military service. Further, that the employee has paid an amount equal to the contributions that would have been made during such leave of absence based on the participant's salary immediately prior to entry into military service, provided that police officer participants shall not be 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 City of 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 on which he 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 for all employees hired on or after October 1, 1995, to join the pension plan after completion of six (6) months of employment by the city. (d) All general employees who are hired by the City of South Miami on 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 ~defined contribution plan of the City of South Miami (DC) 457 Plan. (e) Employees who are hired on or 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 on or 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 planlCMA 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. 4 15 Ord. No. 22-16-2255 (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 planAeVAy established ICMA RC 457 Plan. ill} 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 join 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 join the South Miami Pension Plan or join 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 join 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 join the South Miami Pension Plan on or after the effective date of this Ordinance will not be required to have completed six (6) months of service prior to joining and are required 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 City of South Miami Code of Ordinances is hereby amended as follows: 5 Ord. No. 22-16-2255 (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 planAeVAy established leMA RC 457 Plan. i9l 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 join 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 join the South Miami Pension Plan or join 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 join 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 join the South Miami Pension Plan on or after the effective date of this Ordinance will not be required to have completed six (6) months of service prior to joining and are required 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 City of South Miami Code of Ordinances is hereby amended as follows: 5 16 Ord. No. 22-16-2255 (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows: (1) General employees. Shall be the first day of the calendar month coincident with or, otherwise, next following the later of the participant's sixtieth birthday and the date on which the participant has completed ten (10) years of credited service. General employees participating in the plan as of September 30, 2011, will remain eligible to 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 in final 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 (1115th) 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) vears 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 which is entitled up to 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 6 Ord. No. 22-16-2255 (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows: (1) General employees. Shall be the first day of the calendar month coincident with or, otherwise, next following the later of the participant's sixtieth birthday and the date on which the participant has completed ten (10) years of credited service. General employees participating in the plan as of September 30, 2011, will remain eligible to 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 in final 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 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) aoe 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 which is entitled up to 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 6 17 Ord. No. 22-16-2255 Years prior to normal retirement date Percentage 1 2 3 4 5 6 7 8 9 10 93.33 86.67 80.00 73.33 66.67 63.33 60.00 56.67 53.33 -- 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 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 to a participant on the first day of the month coincident with or 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 of final average compensation as stated herein. ( 1 ) Basic benefit. a. A basic benefit for participant's reHring 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 first two (2) years of such service and any additional service completed by the participant prior to the participant's twenty-fifth birthday. 7 Ord. No. 22-16-2255 Years prior to normal retirement date Percentage 1 2 3 4 5 Q I 8 ~ 10 93.33 86.67 80.00 73.33 66.67 63.33 -- 60.00 56.67 53.33 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 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 to a participant on the first day of the month coincident with or 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 of final average compensation as stated herein. (1 ) Basic benefit. a. A basic benefit for participant's reUring 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 first two (2) years of such service and any additional service completed by the participant prior to the participant's twenty-fifth birthday. 7 18 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 first six (6) months of such service plus any additional service completed prior to the participant's twentieth birthday and/or additional service completed prior to the participant becoming eligible to join this pension plan. (2) General employees. a. Effective October 1, 1993, the pension benefit accrual rate (multiplier) for general employee participants, shall be 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, shall be 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 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 for all services performed through September 30, 1999, and 2. 75 percent for services performed thereafter. g. For all service earned on or 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. h. 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 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 first six (6) months of such service plus any additional service completed prior to the participant's twentieth birthday and/or additional service completed prior to the participant becoming eligible to join this pension plan. (2) General employees. a. Effective October 1, 1993, the pension benefit accrual rate (multiplier) for general employee participants, shall be 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, shall be 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 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 for all services performed through September 30, 1999, and 2.75 percent for services performed thereafter. g. For all service earned on or 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. ~ 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. 1. 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 19 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 shall be equal to (1) an amount determined at the first applicable valuation date by multiplying the yearly amount of basic benefit by the percentage, if any, by which the current index exceeds the base index and (2) an amount determined at each subsequent valuation date, where the current index exceeds the prior index, 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 in no event shall the supplemental benefit payable at any time be 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. In no 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 in final 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 1 is 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 perJsion 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 prior to 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 on which 9 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 shall be equal to (1) an amount determined at the first applicable valuation date by multiplying the yearly amount of basic benefit by the percentage, if any, by which the current index exceeds the base index and (2) an amount determined at each subsequent valuation date, where the current index exceeds the prior index, 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 in no event shall the supplemental benefit payable at any time be 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. In no 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 in final 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 1 is 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 prior to 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 on which 9 20 Ord. No. 22-16-2255 pension benefits commence; or an amount determined by multiplying the amount of pension to which the participant is entitled in accordance with section subsection 16- 14(a) or 16-14(b), whichever is applicable by a percentage determined in accordance with the following schedule on the basis of the length of credited service. IN umber of years Percentage of credited service !Less than 1 0 0 11 10 12 20 13 30 14 40 15 50 16 60 17 70 18 80 19 90 120 or more 100 Police officer participants, including bargaining unit employees, shall be one hundred (100) percent vested in the retirement plan upon completion of ten (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 of ten (10) years of continuous credited service. All Second Tier Members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous service. AMSC Members shall be one hundred (100) percent vested in the 10 Ord. No. 22-16-2255 pension benefits commence; or an amount determined by multiplying the amount of pension to which the participant is entitled in accordance with section subsection 16- 14(a) or 16-14(b), whichever is applicable by a percentage determined in accordance with the following schedule on the basis of the length of credited service. !Number of years Percentage of credited service !Less than 1 0 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 of ten (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 of ten (10) years of continuous credited service. All Second Tier Members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous service. AMSC Members shall be one hundred (100) percent vested in the 10 21 Ord. No. 22-16-2255 pension plan upon completion of three (3) years of continuous service. General employees and AMSC Members who opt to join the defined contribution plan of the City of South Miami shall vest after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995, and have ten (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 to which 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 for all general employee participants, including those general employees that are now members of the retirement system, shall be increased from three (3) percent to five (5) percent of earnings. Effective October 1, 2001, the pension contribution for all general employee participants, including those general employees that are now members of the plan, shall be increased from five (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 to five (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 officer participants. ~ffective October 1, 2004, if the total police officer participants~ contributions and employer~ contribution exceeds fifteen (15) percent -of covered police payroll for 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 growth or diminution in future Chapter 185, F.S. funds. 11 Ord. No. 22-16-2255 pension plan upon completion of three (3) years of continuous service. General employees and AMSC Members who opt to join the defined contribution plan of the City of South Miami shall vest after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995, and have ten (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 to which 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 for all general employee participants, including those general employees that are now members of the retirement system, shall be increased from three (3) percent to five (5) percent of earnings. Effective October 1, 2001, the pension contribution for all general employee participants, including those general employees that are now members of the plan, shall be increased from five (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 to five (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 officer participants. ~ffective October 1, 2004, if the total police officer participants~ contributions and employer~ contribution exceeds fifteen (15) percent ·of covered police payroll for 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 growth or diminution in future Chapter 185, F.S. funds. 11 22 Ord. No. 22-16-2255 (3) Second Tier Member participants. Second Tier Members shall contribute three (3) percent of earnings. (4) AMSC Member participants in the South Miami Pension Plan. AMSC Members shall contribute seven (7) percent of earnings. _(.fil 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 . .(fil [ Other participants.] 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. ill 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 City of 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, prior to employment as a police officer with the city in accordance with USERRA and applicable state law. This provision shall not cover reserve active duty or weekend drill. Police officers electing to purchase prior military time will do so at total cost to the participant with no cost assumed by the city. (b) All participants in the city pension plan shall be allowed to purchase credit for immediate past city service up to a maximum of five (5) years in the city pension plan pursuant to procedures promulgated at the time of such purchase. All costs for approved 12 Ord. No. 22-16-2255 (3) Second Tier Member participants. Second Tier Members shall contribute three (3) percent of earnings. (4) AMSC Member participants in the South Miami Pension Plan. AMSC Members shall contribute seven (7) percent of earnings. @ 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. @ [Other participants.] 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. ill 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 City of 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, prior to employment as a police officer with the city in accordance with USERRA and applicable state law. This provision shall not cover reserve active duty or weekend drill. Police officers electing to purchase prior military time will do so at total cost to the participant with no cost assumed by the city. (b) All participants in the city pension plan shall be allowed to purchase credit for immediate past city service up to a maximum of five (5) years in the city pension plan pursuant to procedures promulgated at the time of such purchase. All costs for approved 12 23 Ord. No. 22-16-2255 purchase of past city services shall be one hundred (100) per cent borne by the participant with no cost assumed by the city. Should the participant be permitted to purchase past city service over a period of time, the effective date of credited service shall be on the date such purchase is paid in full. (c) Any participant classified as a police officer who retires between November 1, 2011, and before November 15, 2011, shall be eligible for a retirement incentive, which shall be equal to normal retirement provided: (d) will apply: (e) apply: (1) The City of South Miami will pay for the full actuarial cost, no later than the earlier of benefit commencement or December 1, 2011, of up to 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. For all Second Tier Members hired on or after October 1, 2011, the following ill 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 in a 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 subsequent 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%. For all AMSC Members hired on or after October 1, 2011, the following will (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 servke, 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 in a 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 subsequent calculation will be 13 Ord. No. 22-16-2255 purchase of past city services shall be one hundred (100) per cent borne by the participant with no cost assumed by the city. Should the participant be permitted to purchase past city service over a period of time, the effective date of credited service shall be on the date such purchase is paid in full. (c) Any participant classified as a police officer who retires between November 1, 2011, and before November 15, 2011, shall be eligible for a retirement incentive, which shall be equal to normal retirement provided: (1) The City of South Miami will pay for the full actuarial cost, no later than the earlier of benefit commencement or December 1, 2011, of up to 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: (e) apply: ill 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 in a 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 subsequent 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%. For all AMSC Members hired on or after October 1 , 2011 , the following will (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 in a 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 subsequent calculation will be 13 24 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 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 11. 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 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 20thclay of September , 2016. ATTEST: 1st Reading -8/16/16 2nd Reading -9/20/16 14 COMMISSION VOTE: 5-0 Mayor Stoddard: Yea Vice Mayor Welsh Yea Commissioner Edmond: Yea Commissioner Harris: Yea Commissioner Liebman: Yea 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 City of South Miami as amended; that the sections of this ordinance may be renumbered or re-Iettered 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 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 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 20thdayof September ,2016. ATTEST: 1st Reading -8/16/16 2nd Reading -9/20/16 14 COMMISSION VOTE: 5-0 Mayor Stoddard: Yea Vice Mayor Welsh Yea Commissioner Edmond: Yea Commissioner Harris: Yea Commissioner Liebman: Yea 25 THE CITY OF-PI.F.ASANT i.lVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: The Honorable Mayor & Members of the City Commission From: Date: Steven Alexander, City Manager September 20, 2016 Agenda Item: _jJ_ Subject: Ordinance amending the South Miami Pension Plan Approved on First Reading, August 16, 2016-Actuarial Impact Statement SUMMARY The savings provided by adopting the recommended Ordinance amending the City's Pension Plan is an annual estimated savings of $60,363 for General Employees and an estimated annual savings of $28,141 for AMSC, for an aggregate estimated annual total savings amount of $88,505. BACKGROUND On August 16, 2016, the City Commission approved, with amendments, on first 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 of a proposed change in the provisions of a local retirement system certified by an enrolled actuary. On September 14, 2016, GRS issued their Actuarial Impact Statement which may be found attached. The Actuarial Impact Statement was prepared reflecting the impact to both classes which are to be enabled to take advantage of the proposed new Pension Plan, the General Employees and Administrative Management'Service Class (AMSC). The City requested that the City's Pension Plan Actuary, Gabriel Roeder Smith & Company (GRS), complete the required Actuarial Impact Statement. GRS was first hired by the City in 2001 via Resolution 146-01-11294 to provide the City with Pension Actuarial Consulting Services, which they have been doing ever since. The Florida Administrative Code (60T-l.004(3)(a)) states that an Actuarial Impact Statement must be certificated and signed and dated by the Plan Administrator and contain the following information: a. A description of the proposed amendment and a statement that the actuary was-provided the information necessary to evaluate the proposed amendment; b. An estimate of the cost of implementing the amendment, signed and dated by an enrolled actuary, which discloses, at a minimum, sufficient information on both the before and Page 1 of 2 THE CITY OF.PI.F.ASANT I.lVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: The Honorable Mayor & Members of the City Commission From: Steven Alexander, City Manager Agenda Item: fl Date: September 20, 2016 Subject: Ordinance amending the South Miami Pension Plan Approved on First Reading, August 16, 2016 -Actuarial Impact Statement SUMMARY The savings provided by adopting the recommended Ordinance amending the City's Pension Plan is an annual estimated savings of $60,363 for General Employees and an estimated annual savings of $28,141 for AMSC, for an aggregate estimated annual total savings amount of $88,505. BACKGROUND On August 16, 2016, the City Commission approved, with amendments, on first 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 of a proposed change in the provisions of a local retirement system certified by an enrolled actuary. On September 14, 2016, GRS issued their Actuarial Impact Statement which may be found attached. The Actuarial Impact Statement was prepared reflecting the impact to both classes which are to be enabled to take advantage of the proposed new Pension Plan, the General Employees and Administrative Management'Service Class (AMSq. The City requested that the City's Pension Plan Actuary, Gabriel Roeder Smith & Company (GRS), complete the required Actuarial Impact Statement. GRS was first hired by the City in 2001 via Resolution 146-01-11294 to provide the City with Pension Actuarial Consulting Services, which they have been doing ever since. The Florida Administrative Code (60T-1.004(3)(a)) states that an Actuarial Impact Statement must be certificated and signed and dated by the Plan Administrator and contain the following information: a. A description of the proposed amendment and a statement that the actuary was·provided the information necessary to evaluate the proposed amendment; b. An estimate of the cost of implementing the amendment, signed and dated by an enrolled actuary, which discloses, at a minimum, sufficient information on both the before and Page 1 of2 26 after amendment basis, so that another actuary, unfamiliar with the situation, would be able to appraise the estimate. If any actuarial assumptions, techniques or methods are also • changed, additional information disclosing the effect of such actuarial changes must be provided; c. A statement indicating whether the proposed change is in compliance with Part VII, Chapter 112, F.S. and Section 14, Article X of the State Constitution. No unit of local government shall agree to a proposed change in the r.etirement benefits or liabilities of a local system, unless the administrator of the system, prior to adoption of the change by the governing body, has issued a statement of actuarial impact of the proposed change upon the local retirement system prior to the last public hearing. Based directly on information from the City's Pension Plan Actuary, (GRS), and their Actuarial Impact Statement we can make the following statement which was reviewed and verified by GRS. The savings provided by adopting the Ordinance amending the City's Pension Plan is; an annual estimated savings of $60,363 for General Employees and an estimated annual savings amount of $28,141 for AMSC, for an agrgregate estimated annual savings amount of $88,505. Below is a GRS reviewed and_ verified table which reflects the information based on GRS' Actuarial Impact Statement. PENSION IMPACT STATEMENT SUMMARY INFORMATION Description 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 Net Savings Administration Management Service Class Impact Net Savings Annual Aggregate % of Salaries Contribution $1,637,049 7%* $934,162 7% City Contribution Based on Current Plan $114,593 $65,391 . $54,230 $37,250 -$60,363 -$28,141 Total Annual Estimated Savings -$88,504 ============ * Not all of the non-participating general employees are receiving a 7% City contribution; however 7% expresses the City's potential cost as employees may opt for that full benefit. An:ACHMENTS -Proposed Ordinance -September 14, 2016, GRS Actuarial Impact Statement Res. No 146-01-11294 -GRS Page 2 of 2 after amendment basis, so that another actuary, unfamiliar with the situation, would be able to appraise the estimate. If any actuarial assumptions, techniques or methods are also . changed, additional information disclosing the effect of such actuarial changes must be provided; c. A statement indicating whether the proposed change is in compliance with Part VII, Chapter 112, F.S. and Section 14, Article X of the State Constitution. No unit of local government shall agree to a proposed change in the r.etirement benefits or liabilities of a local system, unless the administrator of the system, prior to adoption of the change by the governing body, has issued a statement of actuarial impact of the proposed change upon the local retirement system prior to the last public hearing. Based directly on information from the City's Pension Plan Actuary, (GRS), and their Actuarial Impact Statement we can make the following statement which was reviewed and verified by GRS. The savings provided by adopting the Ordinance amending the City's Pension Plan is; an annual estimated savings of $60,363 for General Employees and an estimated annual savings amount of $28,141 for AMSC, for an agrgregate estimated annual savings amount of $88,505. Below is a GRS reviewed and. verified table which reflects the information based on GRS' Actuarial Impact Statement. PENSION IMPACT STATEMENT SUMMARY INFORMATION Description General Employees (Reflects 2/3 Participation Rate) Administration Management Service Class (AMSC) General Employees Tier" Pension Impact Cost Administration Management Service Class Pension Impact Cost General Employees Impact Net Savings Administration Management Service Class Impact Net Savings Annual Aggregate % of Salaries Contribution $1,637,049 7%* $934,162 7% City Contribution Based on Current Plan $114,593 $65,391 . $54,230 $37,250 -$60,363 -$28,141 Total Annual Estimated Savings ===-$=8=8 ... ,5=0=4=;: * Not all of the non-participating general employees are receiving a 7% City contributionj however 7% expresses the City's potential cost as employees may opt for that full benefit. ATrACHMENTS -Proposed Ordinance -September 14, 2016, GRS Actuarial Impact Statement Res. No 146-01-11294 -GRS Page 20f2 27 GRS Gabriel Roeder Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Ft. Lauderdale, FL 33301-1804 954.527.1616 phone 954.525.0083 fax 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 3 3410 Re: South Miami Pension Plan Actuarial Impact Statement Dear Scott: As requested, we are pleased to enclose twelve (12) copies of our Actuarial Impact Statement as of October I, 2015 for the proposed Ordinance under the South Miami Pension Plan (Plan) with the State of Florida (copy enclosed). Background -The Plan is currently closed to General Employees hired on or after October 1, 2011. General Employees not in the Plan can currently elect to participate in the City's Defined Contribution (DC) Plan(s). Proposed Ordinance-The proposed Ordinance: ► For General Employees o Add a ten percent (I 0%) cap on employee contributions. o Re-open the Plan to General Employees effective October 1, 20 I 6. General Employees currently in the City's DC Plan will have a one-time option to elect to join the Plan as a Tier Two General Employee. Credited service starts at date of hire for all purposes except for purposes of benefit accrual. Credited service for purposes of benefit accrual starts as of October 1, 2016. Normal retirement is age 65 and attainment often (10) years of credited service. Final average compensation is the average of the highest eight (8) years of compensation. The benefit accrual rate (multiplier) is 1.6% for each year of credited service. Full vesting upon completion of ten (I 0) years of credited service. Tier Two General Employees AMSC members contribute seven percent (7%) of compensation. No supplemental cost-of-living adjustments (COLA). GRS Gabriel Roeder Smith & Company Consultants & Actuaries 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: One East Broward Blvd. Suite 505 Ft. Lauderdale, FL 33301-1804 954.527.1616 phone 954.525.0083 fax www.gabrielrocder.com As requested, we are pleased to enclose twelve (12) copies of our Actuarial Impact Statement as of October 1, 2015 for the proposed Ordinance under the South Miami Pension Plan (Plan) with the State of Florida (copy enclosed). Background -The Plan is currently closed to General Employees hired on or after October 1, 2011. General Employees not in the Plan can currently elect to participate in the City's Defined Contribution (DC) Plan(s). Proposed Ordinance -The proposed Ordinance: ~ For General Employees o Add a ten percent (10%) cap on employee contributions. oRe-open the Plan to General Employees effective October 1,2016. General Employees currently in the City's DC Plan will have a one-time option to elect to join the Plan as a Tier Two General Employee. Credited service starts at date of hire for all purposes except for purposes of benefit accrual. Credited service for purposes of benefit accrual starts as of October 1, 2016. Normal retirement is age 65 and attainment often (10) years of credited service. Final average compensation is the average of the highest eight (8) years of compensation. The benefit accrual rate (multiplier) is 1.6% for each year of credited service. Full vesting upon completion of ten (10) years of credited service. Tier Two General Employees AMSC members contribute seven percent (7%) of compensation. No supplemental cost-of-living adjustments (COLA). 28 Mr. Scott Baur September 14, 2016 Page Two ► For Administration Management Service Class (AMSC) -Create a new class of benefits available to employees who hold certain management positions effective October 1, 2016. Credited service starts at date of hire for all purposes except for purposes of benefit accrual. Credited service for purposes of benefit accrual starts as of October 1, 2016. Normal retirement is age 65 and completion of three (3) years of credited service. Early retirement is age 55 and completion of ten (10) years of credited service. Benefits are reduced for early commencement of retirement benefits. Final average compensation is the average of the highest eight (8) years of compensation. The benefit accrual rate (multiplier) is 1.6% for each year of credited service. Full vesting upon 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 the Plan to General Employees with Tier Two Benefits results in an increase in the Net City Annual Required Contribution of $54,230 and results in an increase in Employee Annual Required Contributions of $49,111. Creation of a New Tier of Benefits for the AMSC results in an increase in the Net City Annual Required Contribution of $37,250 and results in an increase in Employee Annual Required Contributions of $65,391. Combined, Re-opening the Plan to General Employees with Tier Two Benefits PLUS Creation of a New Tier of Benefits for the AMSC results in an increase in the Net City Annual Required Contribution of $91,480 and results in an increase in Employee Annual Required Contributions of $114,502. Filing Requirements -We have prepared the Actuarial Impact Statement for filing with the State of Florida. Please note that this Statement must be signed and dated on behalf of the Board of Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated Actuarial Impact Statement are generally required to be filed with the State at the 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 We understand the State requires funding no later than the fiscal year next following the effective date of the increases in costs resulting from the Ordinance. Please forward a copy of the Ordinance upon passage at second reading to update our files. Actuarial Assumptions and Methods, Plan Provisions, Financial Data, Member Census Data -The actuarial assumptions and methods, financial data and member Gabriel Roeder Smith & Company Mr. Scott Baur September 14, 2016 Page Two ~ For Administration Management Service Class (AMSC) -Create a new class of benefits available to employees who hold certain management positions effective October 1,2016. Credited service starts at date of hire for all purposes except for purposes of benefit accrual. Credited service for purposes of benefit accrual starts as of October 1,2016. Normal retirement is age 65 and completion of three (3) years of credited service. Early retirement is age 55 and completion of ten (10) years of credited service. Benefits are reduced for early commencement of retirement benefits. Final average compensation is the average of the highest eight (8) years of compensation. The benefit accrual rate (mUltiplier) is 1.6% for each year of credited service. Full vesting upon 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 the Plan to General Employees with Tier Two Benefits results in an increase in the Net City Annual Required Contribution of $54,230 and results in an increase in Employee Annual Required Contributions of $49,111. Creation of a New Tier of Benefits for the AMSC results in an increase in the Net City Annual Required Contribution of $37,250 and results in an increase in Employee Annual Required Contributions of $65,391. Combined, Re-opening the Plan to General Employees with Tier Two Benefits PLUS Creation of a New Tier of Benefits for the AMSC results in an increase in the Net City Annual Required Contribution of$91,480 and results in an increase in Employee Annual Required Contributions of$114,502. Filing Requirements -We have prepared the Actuarial Impact Statement for filing with the State of Florida. Please note that this Statement must be signed and dated on behalf of the Board of Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated Actuarial Impact Statement are generally required to be filed with the State at the 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 We understand the State requires funding no later than the fiscal year next following the effective date of the increases in costs resulting from the Ordinance. Please forward a copy of the Ordinance upon passage at second reading to update our files. Actuarial Assumptions and Methods. Plan Provisions. Financial Data, Member Census Data -The actuarial assumptions and methods, financial data and member Gabriel Roeder Smith & Company 29 Mr. Scott Baur September 14,2016 Page Three census data employed for purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods, financial data and member census data to be utilized for the October 1, 2015 Actuarial Valuation unless otherwise specified herein. In order to provide an estimated impact on costs prior to employee's elections we needed an assumptions as to the election rates of the employees. Based on discussions with the City, we have assumed two-thirds of General Employees not in the Plan and all eligible AMSC employees will elect to join the Plan effective October 1, 2016. In addition, a normaJ cost as of October 1, 2015 was calculated to estimate the normal cost attributable for the plan year beginning October 1, 2016 for funding purposes. The Plan provisions employed for purposes of our Actuarial Impact Statement are the same Plan provisions to be utilized for the October 1, 2015 Actuarial Valuation as modified above. Administration Management Service Class positions are City Manager, City Attorney, City Clerk, 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 changes on the Plan, and is not intended as a recommendation in favor of the benefit changes or in opposition of the Plan provision changes. If all actuarial assumptions are met and if all future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits. Plan minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act with normal cost determined as a level percent of covered payroll and a level dollar amortization payment using a maximum amortization period of 25 years. The Unfunded Actuarial Accrued Liability (UAAL) may not be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing the need for or the 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. These calculations are based upon assumptions regarding future events. However, the Plan's long term costs will be determined by actual future events, which may differ Gabriel Roeder Smith & Company Mr. Scott Baur September 14, 2016 Page Three census data employed for purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods, financial data and member census data to be utilized for the October 1, 2015 Actuarial Valuation unless otherwise specified herein. In order to provide an estimated impact on costs prior to employee's elections we needed an assumptions as to the election rates of the employees. Based on discussions with the City, we have assumed two-thirds of General Employees not in the Plan and all eligible AMSC employees will elect to join the Plan effective October 1, 2016. In addition, a norma,l cost as of October 1,2015 was calculated to estimate the normal cost attributable for the plan year beginning October 1, 2016 for funding purposes. The Plan provisions employed for purposes of our Actuarial Impact Statement are the same Plan provisions to be utilized for the October 1, 2015 Actuarial Valuation as modified above. Administration Management Service Class positions are City Manager, City Attorney, City Clerk, 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 changes on the Plan, and is not intended as a recommendation in favor of the benefit changes or in opposition of the Plan provision changes. If all actuarial assumptions are met and if all future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits. Plan minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act with normal cost determined as a level percent of covered payroll and a level dollar amortization payment using a maximum amortization period of 25 years. The Unfunded Actuarial Accrued Liability (UAAL) may not be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing the need for or the amount of future contributions. The VAAL would be different if it reflected the market value of assets rather than the smoothed actuarial value of assets. These calculations are based upon assumptions regarding future events. However, the Plan's long term costs will be determined by actual future events, which may differ Gabriel Roeder Smith & Company 30 Mr. Scott Baur September 14, 2()16 Page Four materially from the assumptions made. These calculations are also based upon present Plan provisions that are referenced in this Actuarial Impact Statement. If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described as referenced, important Plan provisions relevant to this proposed Actuarial Impact Statement are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Impact Statement. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period); and changes in Plan provisions or applicable law. Due to the limited scope of the actuary's assignment, the actuary did not perform an analysis of the potential range of such future measurements. This Actuarial Impact Statement should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This Actuarial Impact Statement has been prepared by actuaries who have substantial experience valuing public employee retirement plans. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the Actuarial Impact Statement date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Actuarial Impact Statement may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent of the Plan sponsor. If you have reason to believe that the information provided in this Actuarial Impact Statement is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. Gabriel Roeder Smith & Company Mr. Scott Baur September 14, 2916 Page Four materially from the assumptions made. These calculations are also based upon present Plan provisions that are referenced in this Actuarial Impact Statement. If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described as referenced, important Plan provisions relevant to this proposed Actuarial Impact Statement are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Impact Statement. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period); and changes in Plan provisions or applicable law. Due to the limited scope of the actuary's assignment, the actuary did not perform an analysis of the potential range of such future measurements. This Actuarial Impact Statement should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This Actuarial Impact Statement has been prepared by actuaries who have substantial experience valuing public employee retirement plans. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the Actuarial Impact Statement date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Actuarial Impact Statement may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent ofthe Plan sponsor. If you have reason to believe that the information provided in this Actuarial Impact Statement is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. Gabriel Roeder Smith & Company 31 Mr. Scott Baur September 14, 2016 Page Five If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, ~-~-~~ Lawrence F. Wilson, E.A., AS.A. Senior Consultant and Actuary Enclosures Kelly L. Adams, E.A., A.S.A. Consultant and Actuary Gabriel Roeder Smith & Company Mr. Scott Baur September 14, 2016 Page Five If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, ~.~.U~ 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 Smith & Company 32 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 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, as it 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" to set 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 to set 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 City of South Miami and the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294 (hereinafter "Union"), have entered into a new Collective Bargaining Agreement ("Agreement"), effective June 22, 2016 to June 21, 2019; and WHEREAS, it is 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 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 decided to create a new class of employees, comprised of the Administration Management Service Class ("AMSC") and to permit members of the AMSC to join 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 for in the Agreement; and 1 ORDINANCE NO. _____ _ An Ordinance amending the South Miami Pension Plan to implement the Collective Bargaining Agreement between the City of South Miami and AFSCMELocal 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, as it 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" to set 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 to set 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 City of South Miami and the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294 (hereinafter "Union"), have entered into a new Collective Bargaining Agreement ("Agreement"), effective June 22, 2016 to June 21, 2019; and WHEREAS, it is 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 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 decided to create a new class of employees, comprised of the Administration Management Service Class ("AMSC") and to permit members of the AMSC to join 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 for in the Agreement; and 1 33 WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the pension plan; NOW, THEREFORE, BE IT 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 City of South Miami Code of Ordinances is hereby amended by adding to it the following definitions: Definitions. *** AMSC Member shall mean the Administration Management Service Class. It will 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-time by the employer on a 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 to eligibility date as defined in section 16-13 of this Code, (in writing) 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. 2 WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the pension plan; NOW, THEREFORE, BE IT 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 City of South Miami Code of Ordinances is hereby amended by adding to it the following definitions: Definitions. *** AMSC Member shall mean the Administration Management Service Class. It will 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-time by the employer on a 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 to eligibility date as defined in section 16-13 of this Code, (in writing) 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. 2 34 * * * Section 2: That Chapter 16 Article II, Section 16-12, "Definitions" of the City of South Miami Code of Ordinances is hereby amended by amending the definition of average final compensation as follows: Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner. For general employees, except for Second Tier Members and AMSC 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 definition of final 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 City of 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 of final 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 16 Article II, Section 16-12, "Definitions" of the City of 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 with military service during which the participant's employment rights were protected by law shall not be considered to have broken the continuity of his 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 3 * * * Section 2: That Chapter 16 Article II, Section 16-12, "Definitions" of the City of South Miami Code of Ordinances is hereby amended by amending the definition of average final compensation as follows: Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner. For general employees, except for Second Tier Members and AMSC 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 definition of final 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 City of 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 of final 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 16 Article II, Section 16-12, "Definitions" of the City of 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 with military service during which the participant's employment rights were protected bylaw shall not be considered to have broken the continuity of his 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 3 35 for police officers Chapter 185 of the Florida Statutes after honorable discharge from the military service. Further, that the employee has paid an amount equal to the contributions that would have been made during such leave of absence based on the participant's salary immediately prior to entry into military service, provided that police officer participants shall not be 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 City of 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 on which he 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 for all employees hired on or after October 1, 1995, to join the pension plan after completion of six (6) months of employment by the city. (d) All general employees who are hired by the City of South Miami on 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 ~defined contribution plan of the City of South Miami (DC) 457 Plan. (e) Employees who are hired on or 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 on or 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 planlCMA 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. 4 for police officers Chapter 185 of the Florida Statutes after honorable discharge from the military service. Further, that the employee has paid an amount equal to the contributions that would have been made during such leave of absence based on the participant's salary immediately prior to entry into military service, provided that police officer participants shall not be 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 City of 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 on which he 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 for all employees hired on or after October 1, 1995, to join the pension plan after completion of six (6) months of employment by the city. (d) All general employees who are hired by the City of South Miami on 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 ~defined contribution plan of the City of South Miami (DC) 457 Plan. (e) Employees who are hired on or 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 on or 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 planlCMA 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. 4 36 (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 planfleWty established ICM/\ RC 457 Plan. 19.l 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 join 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 join the South Miami Pension Plan or join 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 join 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 join the South Miami Pension Plan on or after the effective date of this Ordinance will not be required to have completed six (6) months of service prior to joining and are required 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 City of South Miami Code of Ordinances is hereby amended as follows: 5 (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 planReWiy established ICMA RC 457 Plan. {gl 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 join 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 join the South Miami Pension Plan or join 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 join 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. (j) 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 required to have completed six (6) months of service prior to joining and are required 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 City of South Miami Code of Ordinances is hereby amended as follows: 5 37 (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows: (1) General employees. Shall be the first day of the calendar month coincident with or, otherwise, next following the later of the participant's sixtieth birthday and the date on which the participant has completed ten (10) years of credited service. General employees participating in the plan as of September 30, 2011, will remain eligible to 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 in final 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 (1115th) 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) 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 which is entitled up to 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 6 (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows: (1) General employees. Shall be the first day of the calendar month coincident with or, otherwise, next following the later of the participant's sixtieth birthday and the date on which the participant has completed ten (10) years of credited service. General employees participating in the plan as of September 30, 2011, will remain eligible to 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 in final 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 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) 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 which is entitled up to 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 6 38 Years prior to normal retirement date Percentage 1 2 3 4 5 §_ 7 8 ~ 10 93.33 86.67 80.00 73.33 66.67 63.33 60.00 56.67 53.33 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 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 to a participant on the first day of the month coincident with or 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 of final 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 first two (2) years of such service and any additional service completed by the participant prior to the participant's twenty-fifth birthday. 7 Years prior to normal retirement date Percentage 1 2 3 4 5 Q I !! ~ 10 93.33 86.67 80.00 73.33 66.67 63.33 60.00 56.67 53.33 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 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 to a participant on the first day of the month coincident with or 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 of final 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 first two (2) years of such service and any additional service completed by the participant prior to the participant's twenty-fifth birthday. 7 39 b. However, as to those participants who became an employee subsequent to October 1, 1973, there shall only be excluded the first six (6) months of such service plus any additional service completed prior to the participant's twentieth birthday and/or additional service completed prior to the participant becoming eligible to join this pension plan. (2) General employees. a. Effective October 1, 1993, the pension benefit accrual rate (multiplier) for general employee participants, shall be 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, shall be 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 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 for all services performed through September 30, 1999, and 2.75 percent for services performed thereafter. g. For all service earned on or 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. h. 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 b. However, as to those participants who became an employee subsequent to October 1, 1973, there shall only be excluded the first six (6) months of such service plus any additional service completed prior to the participant's twentieth birthday and/or additional service completed prior to the participant becoming eligible to join this pension plan. (2) General employees. a. Effective October 1, 1993, the pension benefit accrual rate (multiplier) for general employee participants, shall be 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, shall be 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 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 for all services performed through September 30, 1999, and 2.75 percent for services performed thereafter. g. For all service earned on or 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. h.:. 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. 1. 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 40 * * * (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 shall be equal to (1) an amount determined at the first applicable valuation date by multiplying the yearly amount of basic benefit by the percentage, if any, by which the current index exceeds the base index and (2) an amount determined at each subsequent valuation date, where the current index exceeds the prior index, 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 in no event shall the supplemental benefit payable at any time be 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. In no 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 in final 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 1 is 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 prior to 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 on which 9 * * * (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 shall be equal to (1) an amount determined at the first applicable valuation date by multiplying the yearly amount of basic benefit by the percentage, if any, by which the current index exceeds the base index and (2) an amount determined at each subsequent valuation date, where the current index exceeds the prior index, 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 in no event shall the supplemental benefit payable at any time be 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. In no 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 in final 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 1 is 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 prior to 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 on which 9 41 pension benefits commence; or an amount determined by multiplying the amount of pension to which the participant is entitled in accordance with section subsection 16- 14(a) or 16-14(b), whichever is applicable by a percentage determined in accordance with the following schedule on the basis of the length of credited service. !Number of years Percentage lof credited service !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 of ten (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 of ten (10) years of continuous credited service. All Second Tier Members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous service. AMSC Members shall be one hundred (100) percent vested in the 10 pension benefits commence; or an amount determined by multiplying the amount of pension to which the participant is entitled in accordance with section subsection 16- 14(a) or 16-14(b), whichever is applicable by a percentage determined in accordance with the following schedule on the basis of the length of credited service. lNumber of years Percentage Iof credited service !Less than 10 0 11 10 12 20 13 30 14 40 15 50 16 60 17 70 18 80 19 90 120 or more 100 Police officer participants, including bargaining unit employees, shall be one hundred (100) percent vested in the retirement plan upon completion of ten (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 of ten (10) years of continuous credited service. All Second Tier Members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous service. AMSC Members shall be one hundred (100) percent vested in the 10 42 pension plan upon completion of three (3) years of continuous service. General employees and AMSC Members who opt to join the defined contribution plan of the City of South Miami shall vest after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995, and have ten (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. \l\lith the e*ception of police officer participants, Except as otherwise provided herein. no participant shall make any contributions toward the cost of any past service pension to which 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 for all general employee participants, including those general employees that are now members of the retirement system, shall be increased from three (3) percent to five (5) percent of earnings. Effective October 1, 2001, the pension contribution for all general employee participants, including those general employees that are now members of the plan, shall be increased from five (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 to five (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 officer participants. Effective October 1, 2004, if the total police officer participants~ contributions and employer~ contribution exceeds fifteen (15) percent of covered police payroll for 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 growth or diminution in future Chapter 185, F.S. funds. 11 pension plan upon completion of three (3) years of continuous service. General employees and AMSC Members who opt to join the defined contribution plan of the City of South Miami shall vest after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995, and have ten (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. VVith the ex:ception of police officer participants, Except as otherwise provided herein. no participant shall make any contributions toward the cost of any past service pension to which 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 for all general employee participants, including those general employees that are now members of the retirement system, shall be increased from three (3) percent to five (5) percent of earnings. Effective October 1, 2001, the pension contribution for all general employee participants, including those general employees that are now members of the plan, shall be increased from five (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 to five (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 officer participants. Effective October 1, 2004, if the total police officer participants~ contributions and employer~ contribution exceeds fifteen (15) percent of covered police payroll for 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 growth or diminution in future Chapter 185, F.S. funds. 11 43 (3) (4) .{fil Second Tier Member participants. Second Tier Members shall contribute three (3) percent of earnings. AMSC Member participants in the South Miami Pension Plan. AMSC Members shall contribute seven (7) percent of earnings. 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. @ [Other participants.] 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. ill 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 City of 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, prior to employment as .a police officer with the city in accordance with USERRA and applicable state law. This provision shall not cover reserve active duty or weekend drill. Police officers electing to purchase prior military time will do so at total cost to the participant with no cost assumed by the city. (b) All participants in the city pension plan shall be allowed to purchase credit for immediate past city service up to a maximum of five (5) years in the city pension plan pursuant to procedures promulgated at the time of such purchase. All costs for approved 12 (3) Second Tier Member participants. Second Tier Members shall contribute three (3) percent of earnings. (4) AMSC Member participants in the South Miami Pension Plan. AMSC Members shall contribute seven (7) percent of earnings. @ 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. @ [Other participants.] 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. ill 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 City of 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, prior to employment as.a police officer with the city in accordance with USERRA and applicable state law. This provision shall not cover reserve active duty or weekend drill. Police officers electing to purchase prior military time will do so at total cost to the participant with no cost assumed by the city. (b) All participants in the city pension plan shall be allowed to purchase credit for immediate past city service up to a maximum of five (5) years in the city pension plan pursuant to procedures promulgated at the time of such purchase. All costs for approved 12 44 purchase of past city services shall be one hundred (100) per cent borne by the participant with no cost assumed by the city. Should the participant be permitted to purchase past city service over a period of time, the effective date of credited service shall be on the date such purchase is paid in full. (c) Any participant classified as a police officer who retires between November 1, 2011, and before November 15, 2011, shall be eligible for a retirement incentive, which shall be equal to normal retirement provided: (1) The City of South Miami will pay for the full actuarial cost, no later than the earlier of benefit commencement or December 1, 2011, of up to 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: (e) apply: ill 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 in a 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 subsequent 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%. For all AMSC Members hired on or after October 1, 2011, the following will (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 in a 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 subsequent calculation will be 13 purchase of past city services shall be one hundred (100) per cent borne by the participant with no cost assumed by the city. Should the participant be permitted to purchase past city service over a period of time, the effective date of credited service shall be on the date such purchase is paid in full. (c) Any participant classified as a police officer who retires between November 1, 2011, and before November 15, 2011, shall be eligible for a retirement incentive, which shall be equal to normal retirement provided: (1) The City of South Miami will pay for the full actuarial cost, no later than the earlier of benefit commencement or December 1, 2011, of up to 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: (e) apply: ill 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 in a 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 subsequent 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%. For all AMSC Members hired on or after October 1, 2011, the following will (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 in a 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 subsequent calculation will be 13 45 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 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 11. 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 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 __ day of _____ , 2016. ATTEST: CITY CLERK 1st Reading 2 nd Reading READ AND APPROVED AS TO FORM: LANGUAGE, LEGALITY AND EXECUTION THEREOF CITY ATTORNEY 14 APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Welsh Commissioner Edmond: Commissioner Harris: Commissioner Liebman: 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 City of South Miami as amended; that the sections of this ordinance may be renumbered or re-Iettered 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 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 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 __ day of _____ , 2016. ATTEST: CITY CLERK 1st Reading 2 nd Reading READ AND APPROVED AS TO FORM: LANGUAGE, LEGALITY AND EXECUTION THEREOF CITY ATTORNEY 14 APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Welsh Commissioner Edmond: Commissioner Harris: Commissioner Liebman: 46 South Miami Pension Plan Actuarial Impact Statement as of October 1, 2015 A. Description of Proposed Amendment Re-open the Plan to General Employees. Current General Employees not in the Plan and General Employees hired on or after October 1, 2016 will be given a one time option to join the Pension Plan effective October 1, 2016. Depending on job classification new members will participate in Tier Two or the Administration Management Service Class (AMSC). General Employees -Current Members Maximum ge~eral employee contribution will be ten percent (10%) of pay. General Employees -Tier Two Full vesting upon completion of ten (10) years of credited service. Future service benefit multiplier is 1.6%. Credited service from date of hire is used for all purposes except benefit accruals. Final Average Compensation will be the average of the highest eight (8) years of compensation. Normal retirement is the earlier of (a) attained age 65 and completion of ten (10) years of credited service or (b) completion of thirty-three (33) years of credited service. Employees will contribute three percent (3%) of pay. No cost of living adjustments will be provided. Administration Management Service Class (AMSC) Employees who hold the following positions will belong to the 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 I. 2015 A. Description of Proposed Amendment Re-open the Plan to General Employees. Current General Employees not in the Plan and General Employees hired on or after October 1,2016 will be given aone time option to join the Pension Plan effective October 1, 2016. Depending on job classification new members will participate in Tier Two or the Administration Management Service Class (AMSC). General Employees -Current Members Maximum ge~eral employee contribution will be ten percent (10%) of pay. General Employees -Tier Two Full vesting upon completion of ten (10) years of credited service. Future service benefit multiplier is 1.6%. Credited service from date of hire is used for all purposes except benefit accruals. Final Average Compensation will be the average of the highest eight (8) years of compensation. Normal retirement is the earlier of (a) attained age 65 and completion of ten (10) years of credited service or (b) completion of thirty-three (33) years of credited service. Employees will contribute three percent (3%) of pay. No cost of living adjustments will be provided. Administration Management Service Class CAMSC) Employees who hold the following positions will belong to the AMSC. City Manager City Attorney City Clerk Assistant / Deputy City Manager Finance Director / Chief Financial Officer Chief of Police Pl~ing 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 47 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) Full vesting upon completion of three (3) years of credited service. Future service benefit multiplier is 3.0%. Final Average Compensation will be the average of the highest eight (8) years of compensation. Normal retirement is the earlier of (a) attained age 65 and completion of three (3) years of credited service or (b) completion of thirty-three (33) years of credited service. Early retirement is attained age 55 and completion of ten (10) years of credited service with benefits reduced by I /15 for each of the first 5 years prior to normal retirement and I /30 for each of the next five years prior to normal retirement. All AMSC members will contribute seven percent (7%) of pay. AMSC members currently in the Plan as General Employees will have their service frozen for benefits accrued as a General Employee as of September 30, 2016. No cost of living adjustments will be provided. B. An estimate of the cost of implementing this amendment (see attachment) C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Atticl ;),( of the State Constitution. -J (;~,~:11~ oard South Miami Pension Plan Actuarial Impact Statement as of October 1. 2015 A. Description of Proposed Amendment (cont'd) Administration Management Service Class (AMSq (cont'd) Full vesting upon completion of three (3) years of credited service. Future service benefit multiplier is 3.0%. Final Average Compensation will be the average of the highest eight (8) years of compensation. Normal retirement is the earlier of (a) attained age 65 and completion of three (3) years of credited service or (b) completion of thirty-three (33) years of credited service. Early retirement is attained age 55 and completion of ten (10) years of credited service with benefits reduced by 1/15 for each of the first 5 years prior to normal retirement and 1/30 for each of the next five years prior to nonnal retirement. All AMSC members will contribute seven percent (7%) of pay. AMSC members currently in the Plan as General Employees will have their service frozen for benefits accrued as a General Employee as of September 30, 2016. No cost of living adjustments will be provided. B. An estimate of the cost of implementing this amendment (see attachment) C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Attic ,of the State Constitution . . ) (~Il-IH.:~ oJ .. /. oard 48 A. B. South Miami Pension Plan Actuarial Impact Statement as of October 1, 2015 (General Employees) Preliminary Addition of Valuation Tier Two 10/01/2015 10/01/2015 Participant Data 1. Active participants 32 75 2. Retired participants and beneficiaries receiving benefits 25 25 3. Disabled participants receiving benefits 0 0 4. Terminated vested participants 4 4 5. Annual payroll of active participants $ 1,534,040 $ 3,171,089 6. Expected payroll of active employees for the following year $ 1,534,040 $ 3,171,089 7. Annual benefits payable to those currently receiving benefits $ 57°9,427 $ 579,427 Assets 1. Market Value of Assets $ 13,584,839 $ 13,584,839 2. Smoothed Actuarial Value of Assets $ 13,547,393 $ 13,547,393 -1- Gabriel Roeder Smith & Company Addition of Tier Two & AMSC 10/01/2015 84 25 0 4 $ 4,105,251 $ 4,105,251 $ 579,427 $ 13,584,839 $ 13,547,393 A. B. South Miami Pension Plan Actuarial Impact Statement as of October 1, 2015 (General Employees) Preliminary Addition of Valuation Tier Two 10/0112015 10/0112015 Participant Data 1. Active participants 32 75 2. Retired participants and beneficiaries receiving benefits 25 25 3. Disabled participants receiving benefits 0 0 4. Terminated vested participants 4 4 5. Annual payroll of active participants $ 1,534,040 $ 3,171,089 6. Expected payroll of active employees for the following year $ 1,534,040 $ 3,171,089 7. Annual benefits payable to those currently receiving benefits $ 57'9,427 $ 579,427 Assets 1. Market Value of Assets $ 13,584,839 $ 13,584,839 2. Smoothed Actuarial Value of Assets $ 13,547,393 $ 13,547,393 -1- Gabriel Roeder Smith & Company Addition of Tier Two & AMSC 10/0112015 84 25 0 4 $ 4,105,251 $ 4,105,251 $ 579,427 $ 13,584,839 $ 13,547,393 49 South Miami Pension Plan Actuarial Impact Statement as of October 1, 2015 (General Employees) C. Liabilities 1. Actuarial present value of future expected benefit 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 4,440,425 658,690 26,079 299,879 46,783 5,471,856 1,029,283 6,982,994 0 0 66,279 7,049,273 13,550,412 12,595,335 (952,058) * Reflects transfer of two current General Employee Members to AMSC -2- Gabriel Roeder Smith & Company $ $ $ $ $ $ $ $ Addition of Tier Two 10/01/2015 5,041,623 863,694 30,271 359,412 59,750 6,354,750 1,029,283 6,982,994 0 0 66,279 7,049,273 14,433,306 12,595,335 (952,058) Addition of Tier Two & AMSC 10/01/2015 $ 5,536,120 923,337 32,962 385,575 60,081 $ 6,938,075 $ 1,029,283 $ 6,982,994 0 0 66,279 $ 7,049,273 $ 15,016,631 $ 12,595,876 $ (951,517) * South Miami Pension Plan Actuarial Impact Statement as of October I. 2015 (General Employees) C. Liabilities 1. Actuarial present value of future expected benefit 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 tenninated 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 10/0112015 4,440,425 658,690 26,079 299,879 46,783 5,471,856 1,029,283 6,982,994 ° ° 66,279 7,049,273 13,550,412 12,595,335 (952,058) * Reflects transfer of two current General Employee Members to AMSC -2- Gabriel Roeder Smith &; Company $ $ $ $ $ $ $ $ Addition of Tier Two 10/0112015 5,041,623 863,694 30,271 359,412 59,750 6,354,750 1,029,283 6,982,994 ° ° 66,279 7,049,273 14,433,306 12,595,335 (952,058) Addition of Tier Two & AMSC 10/0112015 $ 5,536,120 923,337 32,962 385,575 60,081 $ 6,938,075 $ 1,029,283 $ 6,982,994 ° ° 66,279 $ 7,049,273 $ 15,016,631 $ 12,595,876 $ (951,517) * 50 South Miami Pension Plan Actuarial Impact Statement as of October 1, 2015 (General Employees) Preliminary Addition of Valuation Tier Two 10/01/2015 10/01/2015 D. Statement of Accumulated Plan Benefits 1. Actuarial present value of accumulated vested benefits a. Participants currently receiving benefits $ 6,982,994 $ 6,982,994 b. Other participants 4,461,150 4,461,150 c. Total $ 11,444,144 $ 11,444,144 2. Actuarial present value of accumulated non- vested plan benefits 311,149 311,149 3. Total actuarial present value of accumulated plan benefits $ 11,755,293 $ 11,755,293 E. Pension Cost 1. Total normal cost (including expenses) $ 202,926 $ 306,267 2. Payment required to amortize unfunded liability (88,215) (88,215) 3. Interest adjustment 4,079 7,754 4. Total required contribution $ 202,926 $ 306,267 5. Item 4 as a percentage of payroll 13.2% 9.7% 6. Estimated member contributions $ 107,383 $ 156,494 7. Item 6 as a percentage of payroll 7.0% 4.9% 8. Estimated State contributions $ 0 $ 0 9. Item 8 as a percentage of payroll 0.0% 0.0% 10. Net amount payable by City $ 95,543 $ 149,773 11. Item 10 as a percentage of payroll 6.2% 2 4.7% -3- Gabriel Roeder Smith & Company Addition of Tier Two & AMSC 10/01/2015 $ 6,982,994 4,461,150 $ 11,444,144 311,149 $ 11,755,293 $ 408,908 (88,170) 11,406 $ 408,908 10.0% 3 $ 221,885 5 5.4% $ 0 0.0% $ 187,023 4 4.6% 6 South Miami Pension Plan Actuarial Impact Statement as of October I. 2015 (General Employees) Preliminary Addition of Valuation Tier Two 10/0112015 10/0112015 D. Statement of Accumulated Plan Benefits 1. Actuarial present value of accumulated vested benefits a. Participants currently receiving benefits $ 6,982,994 $ 6,982,994 b. Other participants 4,461,150 4,461,150 c. Total $ 11,444,144 $ 11,444,144 2. Actuarial present value of accumulated non- vested plan benefits 311,149 311,149 3. Total actuarial present value of accumulated plan benefits $ 11,755,293 $ 11,755,293 E. Pension Cost 1. Total normal cost (including expenses) $ 202,926 $ 306,267 2. Payment required to amortize unfunded liability (88,215) (88,215) 3. Interest adjustment 4,079 7,754 4. Total required contribution $ 202,926 $ 306,267 5. Item 4 as a percentage of payroll 13.2% 9.7% 6. Estimated member contributions $ 107,383 $ 156,494 7. Item 6 as a percentage of payroll 7.0% 4.9% 8. Estimated State contributions $ 0 $ 0 9. Item 8 as a percentage of payroll 0.0% 0.0% 10. Net amount payable by City $ 95,543 $ 149,773 11. Item 10 as a percentage of payroll 6.2% 2 4.7% -3- Gabriel Roeder Smith & Company Addition of Tier Two & AMSC 10/01/2015 $ 6,982,994 4,461,150 $ 11,444,144 311,149 $ 11,755,293 $ 408,908 (88,170) 11,406 $ 408,908 10.0% 3 $ 221,885 5 5.4% $ 0 0.0% $ 187,023 4 4.6% 6 51 South Miami Pension Plan Actuarial Impact Statement as of October 1, 2015 (General Employees) F. Disclosure of Following Items: 1. Actuarial present value of future salaries -attained age $ 2. Actuarial present value of future employee contributions -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 10101/2015 11,186,965 783,088 NIA 1,582,115 NIA NIA 1 Percent of pay applied to expected 2016-2017 covered payroll ($1,534,040) 2 Percent of expected 2016-2017 covered payro11 ($1,534,040) 3 Percent of pay applied to expected 2016-2017 covered payroll ($3,171,089) 4 Percent of expected 2016-2017 covered payroll ($3,171,089) 5 Percent of pay applied to expected 2016-2017 covered payroll ($4,105,251) 6 Percent of expected 2016-2017 covered payroll ($4,105,251) -4- Gabriel Roeder Smith & Company $ $ $ Addition of Tier Two 10101/2015 25,649,528 1,216,965 NIA 1,582,115 NIA NIA Addition of Tier Two & AMSC 10101/2015 $ 30,509,379 $ 1,557,153 NIA $ 1,582,115 NIA NIA South Miami Pension Plan Actuarial Impact Statement as of October 1, 2015 (General Employees) F. Disclosure of Following Items: 1. Actuarial present value of future salaries -attained age $ 2. Actuarial present value of future employee contributions -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 10/0112015 11,186,965 783,088 N/A 1,582,115 N/A N/A 1 Percent of pay applied to expected 2016-2017 covered payroll ($1,534,040) 2 Percent of expected 2016-2017 covered payroll ($1,534,040) 3 Percent of pay applied to expected 2016-2017 covered payroll ($3,171,089) 4 Percent of expected 2016-2017 covered payroll ($3,171,089) 5 Percent of pay applied to expected 2016-2017 covered payroll ($4,105,251) 6 Percent of expected 2016-2017 covered payroll ($4,105,251) -4- Gabriel Roeder Smith & Company $ $ $ Addition of Tier Two 10/0112015 25,649,528 1,216,965 N/A 1,582,115 N/A N/A Addition of Tier Two & AMSC 10/0112015 $ 30,509,379 $ 1,557,153 N/A $ 1,582,115 N/A N/A 52 South Miami Pension Plan Actuarial Impact Statement as of October 1, 2015 Remaining Unfunded Actuarial Current Unfunded Amortization Funding Accrued Liabilities Liabilities Pawent Period 10/01/2015 Combined Bases * (952,058) (88,215) 19 years 10/01/2015 Plan Amendment -General Employees Tier Two 0 0 25 years 10/01/2015 Plan Amendment -AMSC 541 45 25 years TOTAL $ (951,517) $ (88,170) * Combined per Internal Revenue Code Regulation l .4 l 2(b )-1 This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. Based upon our understanding of the plan, there is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which liabilities or current costs have not been established or other wise provided for in the valuation. All known events or trends which may require material increase in plan costs or required contribution rates have been taken into account in Enrollment Number: 14-02802 Dated: September 14; 2016 -~-0-~~-Lawrence F. Wilson, A.S.A. -5- Gabriel Roeder Smith & Company South Miami Pension Plan Actuarial Impact Statement as of October 1.2015 Remaining Unfunded Actuarial Current Unfunded Amortization Funding Accrued Liabilities Liabilities Pawent Period 10/0112015 Combined Bases * (952,058) (88,215) 19 years 10/0112015 Plan Amendment -General Employees Tier Two 0 0 25 years 10/01/2015 Plan Amendment -AMSC 541 45 25 years TOTAL $ (951,517) $ (88,170) * Combined per Internal Revenue Code Regulation 1.412(b)-1 This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. Based upon our understanding of the plan, there is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which liabilities or current costs have not been established or other wise provided for in the valuation. All known events or trends which may require material increase in plan costs or required contribution rates have been taken into account in Enrollment Number: 14-02802 Dated: September 14; 2016 _~.~.t2J~_ Lawrence F. Wilson, A.S.A. -5- Gabriel Roeder Smith & Company 53 South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan A. Effective Date: October 1, 1965. Most recently amended by Ordinance 06-14-2184 adopted April 15, 2014. B. Eligibility Requirements: 1. General Employees Any regular full-time employee hired before October 1, 2011 is eligible to enter the plan following the completion of six months of Credited Service and attainment of age 20. Any regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety (90) days from effective date of Ordinance is eligible to enter the Plan as a Tier 2 employee as of the effective date of Ordinance. Any regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. 2. Police Officers Any regular full-time Police Officer is eligible to enter the plan as of date of employment. 3. Administration Management Service Class (AMSC) Employees of the City with the following positions who do not elect to participate in a defined contribution plan of the City: 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 -6- Gabriel Roeder Smith & Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan A. Effective Date: October 1, 1965. Most recently amended by Ordinance 06-14-2184 adopted April 15,2014. B. Eligibility Requirements: 1. General Employees Any regular full-time employee hired before October 1, 2011 is eligible to enter the plan following the completion of six months of Credited Service and attainment of age 20. Any regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety (90) days from effective date of Ordinance is eligible to enter the Plan as a Tier 2 employee as of the effective date of Ordinance. Any regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. 2. Police Officers Any regular full-time Police Officer is eligible to enter the plan as of date of employment. 3. Administration Management Service Class (AMSC) Employees of the City with the following positions who do not elect to participate in a defined contribution plan of the City: 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 -6- Gabriel Roeder Smith & Company 54 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 to plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of October 1, 2016 or date of hire. 2. Police Officers Continuous employment. For Police Officers who did not participate when first eligible for the plan, credited service shall exclude continuous employment prior to plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. D. Final Monthly Compensation (FMC): Final Average Compensation is 1136th of the final 36 consecutive months of compensation. For Police Officers, not less than I/5th of the highest five (5) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, Final Average Compensation for General Employees is 1160th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. Final Average Compenation for Tier 2 General Employees and AMSC shall be the average of the highest eight (8) years of credit service. -7- Gabriel Roeder Smith &: 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 to plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for -benefit accruals which will be from the later of October 1, 2016 or date of hire. 2. Police Officers Continuous employment. For Police Officers who did not participate when first eligible for the plan, credited service shall exclude continuous employment prior to plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment pri()r to age 20. D. Final Monthly Compensation (FMC): Final Average Compensation is 1/36th of the final 36 consecutive months of compensation. For Police Officers, not less than 1/5th of the highest five (5) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, Final Average Compensation for General Employees is 1I60th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. Final Average Compenation for Tier 2 General Employees and AMSC shall be the average of the highest eight (8) years of credit service. -7- Gabriel Roeder Smith &: Company 55 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: Attainment of age 55 and completion of ten (10) years of credited service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10) years of credited service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. Attainment of age 65 and completion of ten (10) years of credited service or completion of thirty-three (33) years of credited service regardless of age for Tier 2 employees. Attainment of age 60 and completion of ten (10) years of credited service or completion of twenty-five (25) years of credited service regardless of age. Attainment of age 65 and completion of three (3) years of credited service or completion of thirty-three (33) years of credited service regardless of age. The monthly plan benefit is the product of: a. FMC, b. Credited service during the appropriate period and c. The appropriate benefit percentage The appropriate benefit percentages are: a. General Employees b. Police Officers c. General Employees (Tier 2) d. AMSC For Credited Service Through September 30, 1999 October I, 1999 through September 30, 2011 October I, 2011 and thereafter For Credited Service Through September 30, 1995 October 1, 1995 through September 30, 1996 October 1, 1996 through September 30, 1997 October 1, 1997 through September 30, 2001 October 1, 2001 through September 30, 2002 October 1, 2002 through September 30, 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 & 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% 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: Attainment of age 55 and completion of ten (l0) years of credited service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (l0) years of credited service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. Attainment of age 65 and completion of ten (l0) years of credited service or completion of thirty-three (33) years of credited service regardless of age for Tier 2 employees. Attainment of age 60 and completion of ten (l0) years of credited service or completion of twenty-five (25) years of credited service regardless of age. Attainment of age 65 and completion of three (3) years of credited service or completion of thirty-three (33) years of credited service regardless of age. The monthly plan benefit is the product of: a. FMC, b. Credited service during the appropriate period and c. The appropriate benefit percentage The appropriate benefit percentages are: a. General Employees b. Police Officers c. General Employees (Tier 2) d. AMSC For Credited Service Through September 30, 1999 October 1, 1999 through September 30, 2011 October I, 2011 and thereafter For Credited Service Through September 30, 1995 October 1, 1995 through September 30, 1996 October 1, 1996 through September 30, 1997 October 1, ] 997 through September 30, 2001 October 1, 2001 through September 30, 2002 October 1,2002 through September 30,2003 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 &. 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% 56 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 on the accrued benefit as of September 30, 2011 and does not apply to increases in this accrued benefit due to increases in the Final Average Compensation. No cost-of-living supplemental benefit is provided for Tier 2 General Employees. No cost-of-living supplemental benefit is provided for AMSC Employees for benefit accruals on or after October 1, 2011. G. Early Retirement: 1. Eligibility: a. Police Officers: Attainment of age 50 and completion of 15 years of credited service. b. AMSC: Attainment of age 55 and completion of 10 years of credited service. 2. Benefit: a. Police Officers: Accrued benefit based upon FMC and credited service as of early retirement date, reduced 3% for each year that the benefit commencement date precedes Normal Retirement. b. AMSC: Accrued benefit based upon FMC and credited service as of early retirement date, reduced 1/15 for each of the first five years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. H. Delayed Retirement: 1. Eligibility: 2. Benefit: I. Disability Retirement: 1. Eligibility: 2. Benefit: Retirement subsequent to normal retirement date. Accrued benefit based upon FMC and credited service as of delayed retirement date. Totally and permanently disabled for a six month period while actively employed. Accrued benefit based upon FMC and credited service as of date of disability, actuarially reduced as for early retirement for early commencement. -9- Gabrid Roeder Smith & Company 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 on the accrued benefit as of September 30, 2011 and does not apply to increases in this accrued benefit due to increases in the Final Average Compensation. No cost-of-living supplemental benefit is provided for Tier 2 General Employees. No cost-of-living supplemental benefit is provided for AMSC Employees for benefit accruals on or after October 1. 2011. G. Early Retirement: 1. Eligibility: a. Police Officers: Attainment of age 50 and completion of 15 years of credited service. b. AMSC: Attainment of age 55 and completion of 10 years of credited service. 2. Benefit: a. Police Officers: Accrued benefit based upon FMC and credited service as of early retirement date, reduced 3% for each year that the benefit commencement date precedes Normal Retirement. b. AMSC: Accrued benefit based upon FMC and credited service as of early retirement date, reduced 1115 for each of the first five years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. H. Delayed Retirement: 1. Eligibility: 2. Benefit: I. Disability Retirement: 1. Eligibility: 2. Benefit: Retirement subsequent to normal retirement date. Accrued benefit based upon FMC and credited service as of delayed retirement date. Totally and permanently disabled for a six month period while actively employed. Accrued benefit based upon FMC and credited service as of date of disability, actuarially reduced as for early retirement for early commencement. -9- Gabriel Roeder Smith &: Company 57 South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan J. Pre-Retirement Death Benefit: The beneficiary shall receive the member's accumulated employee contributions. K. Benefit Upon Termination of Service: 1. Benefit payable at normal retirement equal to the greater of: a. Accrued benefit based upon FMC and credited service as of date of termination times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated member contributions with interest to normal retirement date. No supplemental benefit shall be payable to vested terminees. 2. Vesting Schedule: All employees except AMSC: AMSC employees: 3. Refund Option: A terminated member may elect to receive a refund of accumulated contributions without interest in lieu of receiving any other plan benefits. -10- Gabriel Roeder Smith & Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan 1. Pre-Retirement Death Benefit: The beneficiary shall receive the member's accumulated employee contributions. K. Benefit Upon Termination of Service: 1. Benefit payable at normal retirement equal to the greater of: a. Accrued benefit based upon FMC and credited service as of date of termination times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated member contributions with interest to normal retirement date. No supplemental benefit shall be payable to vested terminees. 2. Vesting Schedule: All employees except AMSC: AMSC employees: 3. Refund Option: A terminated member may elect to receive a refund of accumulated contributions without interest in lieu of receiving any other plan benefits. -10- Gabriel Roeder Smith & Company 58 South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan L. Member Contributions: Members contribute 7.0% (3.0% for Tier 2 General Employees and 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, both the City and the General Employees ( other than Tier 2 and AMSC participants) will share equally in the amount in excess of 7.0%. The employee contribution is capped at I 0% as of October I, 20 I 6. Should the City contribution for Police Officers be actuarially determined to exceed 7 .5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7 .5%. M. Normal Form of Retirement Income: The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated employee contributions. N. Changes Since Previous Valuation: Eligibility Requirements were: 1. General Employees Any regular full-time employee hired before October 1, 2011 is eligible to enter the plan following the completion of six months of Credited Service and attainment of age 20. 2. Police Officers Any regular full-time Police Officer is eligible to enter the plan as of date of employment. Credited Service was: 1. General Employees Continuous employment. Credited service shall exclude continuous employment prior to plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. -11- 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% for Tier 2 General Employees and 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, both the City and the General Employees (other than Tier 2 and AMSC participants) will share equally in the amount in excess of 7.0%. The employee contribution is capped at 10% as of October 1, 2016. Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of7.5%. M. Normal Form of Retirement Income: The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated employee contributions. N. Changes Since Previous Valuation: Eligibility Requirements were: 1. General Employees Any regular full-time employee hired before October 1,2011 is eligible to enter the plan following the completion of six months of Credited Service and attainment of age 20. 2. Police Officers Any regular full-time Police Officer is eligible to enter the plan as of date of employment. Credited Service was: 1. General Employees Continuous employment. Credited service shall exclude continuous employment prior to plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. -11- Gabrid Roeder Smith & Company 59 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 prior to plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Final Monthly Compensation (FMC) was: Final Average Compensation is 1136th of the final 36 consecutive months of compen.sation. For Police Officers, not less than I/5th of the highest five (5) years out of the last (I 0) ten years of compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October I, 2011, Final Average Compensation for General Employees is 1160th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside .. of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base Normal Retirement was: I. Eligibility: a. General Employees: b. Police Officers: Attainment of age 55 and completion of ten (10) years of credited service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10) years of credited service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. Attainment of age 60 and completion of ten (I 0) years of credited service or 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): 2. Police Officers Continuous employment. For Police Officers who did not participate when first eligible for the plan, credited service shall exclude continuous employment prior to plan participation as follows: (I) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Final Monthly Compensation (FMC) was: Final Average Compensation is 1I36th of the final 36 consecutive months of compensation. For Police Officers, not less than I/5th of the highest five (5) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, Final Average Compensation for General Employees is 1I60th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside .. of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base Normal Retirement was: 1. Eligibility: a. General Employees: b. Police Officers: Attainment of age 55 and completion of ten (10) years of credited service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10) years of credited service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. Attainment of age 60 and completion of ten (10) years of credited service or completion of twenty-five (25) years of credited service regardless of age. -12- Gabriel Roeder Smith & Company 60 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: The monthly plan benefit is the product of: a. FMC, b. Credited service during the appropriate period and c. The appropriate benefit percentage The appropriate benefit percentages are: a. General Employees b. Police Officers For Credited Service Through September 30, 1999 October I, 1999 through September 30, 20 October 1, 2011 and thereafter For Credited Service Through September 30, 1995 Percentage 2.50% 2.75% 2.25% October 1, 1995 through September 30, 1996 October 1, 1996 through September 3 0, 1997 October 1, 1 Q97 through September 30, 2001 October 1, 2001 through September 30, 2002 October 1, 2002 through September 30, 2003 October 1, 2003 and thereafter Benefit Upon Termination of Service was: 1. Benefit payable at normal retirement equal to the greater of: Percentage 2.00% 2.25% 2.50% 2.75% 2.80% 2.90% 3.00% a. Accrued benefit based upon FMC and credited service as of date of termination times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated member contributions with interest to normal retirement date. No supplemental benefit shall be payable to vested terminees. 2. Vesting Schedule: -13- 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: The monthly plan benefit is the product of: a. FMC, b. Credited service during the appropriate period and c. The appropriate benefit percentage The appropriate benefit percentages are: a. General Employees b. Police Officers For Credited Service Percentage 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 Through September 30, 1995 October 1, 1995 through September 30, 1996 October 1, 1996 through September 30, 1997 October 1, 19,97 through September 30, 2001 October 1, 2001 through September 30, 2002 October 1, 2002 through September 30, 2003 October 1, 2003 and thereafter Benefit Upon Termination of Service was: 1. Benefit payable at normal retirement equal to the greater of: Percentage 2.00% 2.25% 2.50% 2.75% 2.80% 2.90% 3.00% a. Accrued benefit based upon FMC and credited service as of date of termination times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated member contributions with interest to normal retirement date. No supplemental benefit shall be payable to vested terminees. 2. Vesting Schedule: -13- Gabriel Roeder Smith & COPlpany 61 South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan N. Changes Since Previous Valuation (cont'd): 3. Refund Option: A terminated member may elect to receive a refund of accumulated contributions without interest in lieu of receiving any other plan benefits. 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, both the City and the General Employees will share equally in the amount in excess of 7 .0%. Tier 2 employees contribute 3.0% and AMSC employees contribute 7.0%. 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, both the City and the General Employees will share equally in the amount in excess of 7 .0%. Tier 2 employees contribute 3.0% and AMSC employees contribute 7.0%. Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7 .5%. Supplemental Benefit was: 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 on the accrued benefit as of September 30, 2011 and does not apply to increases in this accrued benefit due to increases in the Final Average Compensation. Early Retirement was: 1. Eligibility: Attainment of age 50 and completion of 15 years of credited service for Police Officers. 2. Benefit: Accrued benefit based upon FMC and credited service as of early retirement date, reduced 3% for Police Officers for each year that the benefit commencement date precedes Normal Retirement. -14- Gabriel Roeder Smith & Company South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan N. Changes Since Previous Valuation (cont'd): 3. Refund Option: A terminated member may elect to receive a refund of accumulated contributions without interest in lieu of receiving any other plan benefits. 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, both the City and the General Employees will share equally in the amount in excess of 7.0%. Tier 2 employees contribute 3.0% and AMSC employees contribute 7.0%. 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, both the City and the General Employees will share equally in the amount in excess of 7.0%. Tier 2 employees contribute 3.0% and AMSC employees contribute 7.0%. Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5%. Supplemental Benefit was: 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 on the accrued benefit as of September 30, 2011 and does not apply to increases in this accrued benefit due to increases in the Final Average Compensation. Early Retirement was: 1. Eligibility: Attainment of age 50 and completion of 15 years of credited service for Police Officers. 2. Benefit: Accrued benefit based upon FMC and credited service as of early retirement date, reduced 3% for Police Officers for each year that the benefit commencement date precedes Normal Retirement. -14- Gabriel Roeder Smith & Company 62 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 and for annuitants and non-annuitants, and fully generational mortality improvements projected to each future decrement date with Scale AA. For healthy Police Officer participants, the RP 2000 Combined Mortality Table with Blue Collar Adjustment was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For disabled participants, the RP 2000 Disabled Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. B. Investment Return to be Earned by Fund 7.375%, compounded annually, net of investment expenses. C. Allowances for Expenses or Contingencies Actual expenses paid in previous year. D. Employee Withdrawal Rates Withdrawal rates for males and for females were used in accordance with the following illustrative example based upon number of years of service: E. Disability Rates 1985 Disability Study, Class 1 with separate rates for females was used. -15- 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 and for annuitants and non-annuitants, and fully generational mortality improvements projected to each future decrement date with Scale AA. For healthy Police Officer participants, the RP 2000 Combined Mortality Table with Blue Collar Adjustment was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. For disabled participants, the RP 2000 Disabled Mortality Table was used with separate rates for males and females and fully generational mortality improvements projected to each future decrement date with Scale AA. B. Investment Return to be Earned by Fund 7.375%, compounded annually, net of investment expenses. C. Allowances for Expenses or Contingencies Actual expenses paid in previous year. D. Employee Withdrawal Rates Withdrawal rates for males and for females were used in accordance with the following illustrative example based upon number of years of service: E. Disability Rates 1985 Disability Study, Class 1 with separate rates for females was used. -15- Gabriel Roeder Smith & Company 63 F. Marital Assumptions South Miami Pension Plan Actuarial Assumptions and Methods Used in the Valuation I 00% of active members are assumed to be married. Where applicable, females are assumed to be three years younger than their male spouses. G. Salary Increase Factors Current salary is assumed to increase in accordance with the following table based upon number of years of service. H. Increase in Covered Payroll 4.0% per year, limited to average annual increase over most recent ten years (2.7%) but not less than 0.0% for Police Officers. No increase in covered payroll is assumed for General Employees first year. I. Retirement Rates Rates of early retirement for Police Officers were used in accordance with the following table. Rates of normal retirement were used in accordance with the following tables. General Employees who retire prior to age sixty (60) but after attainment of ten (10) years of service (55 & 10) are assumed to receive an actuarially reduced benefit payable immediately upon retirement. -16- Gabriel Roeder Smith & Company F. Marital Assumptions South Miami Pension Plan Actuarial Assumptions and Methods Used in the Valuation 100% of active members are assumed to be married. Where applicable, females are assumed to be three years younger than their male spouses. G. Salary Increase Factors Current salary is assumed to increase in accordance with the following table based upon number of years of service. H. Increase in Covered Payroll 4.0% per year, limited to average annual increase over most recent ten years (2.7%) but not less than 0.0% for Police Officers. No increase in covered payroll is assumed for General Employees first year. I. Retirement Rates Rates of early retirement for Police Officers were used in accordance with the following table. Rates of normal retirement were used in accordance with the following tables. General Employees who retire prior to age sixty (60) but after attainment of ten (10) years of service (55 & 10) are assumed t9 receive an actuarially reduced benefit payable immediately upon retirement. -16- Gabriel Roeder Smith Be Company 64 J. Cost of Living Increases South Miami Pension Plan Actuarial Assumptions and Methods Used in the Valuation Future cost of living increases are assumed to be 3.0% per annum. K. Particpation Rate 2/3 of non-participating General Employees and all AMSC will elect to participate in this Plan L. Valuation of Assets The method used for determining the actuarial value of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The actuarial value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair market value of plan assets and whose upper limit is 120% of the fair 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 the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assuming the Plan had always been in effect. The normal cost for the Plan is the sum of the individual normal costs for all active participants. The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the plan is the excess of the actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs. The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrued liabilitv over the actuarial value of assets of the Plan. N. Changes Since Previous Valuation None. -17- Gabriel Roeder Smith &: Company J. Cost of Living Increases South Miami Pension Plan Actuarial Assumptions and Methods Used in the Valuation Future cost of living increases are assumed to be 3.0% per annum. K. Particpation Rate 2/3 of non-participating General Employees and all AMSC will elect to participate in this Plan L. Valuation of Assets The method used for determining the actuarial value of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The actuarial value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair market value of plan assets and whose upper limit is 120% of the fair 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 the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assuming the Plan had always been in effect. The normal cost for the Plan is the sum of the individual normal costs for all active participants. The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the plan is the excess of the actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs. The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrued liability over the actuarial value of assets of the Plan. N. Changes Since Previous Valuation None. -17- Gabriel Roeder Smith & Company 65 RESOLUTION NO. ___ 1_4_6 -01 -11 2 9 4 A RESOLUTION OF THE MAYOR AND Cl1Y COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES AU1HORIZING THE CITY MANAGER TO SIGN A THREE-YEAR CONTRACT WITH GABRIEL, ROEDER, SMITH & COMP ANY(GRS), WITII TIIB OPTION FOR RENEWAL FOR ADDITIONAL YEARS. WHEREAS, the City of South Miami employee Pension Fund currently utilizes WATSONWYATI as the actuarial consulting firm; and WHEREAS, Watson Wyatt (actuaries) has advised the City that effective August 31, 2001, it reached an alliance with Gabriel, Roeder & Company (GRS); and WHEREAS, the City sought to conduct a fonnal search for actuarial services from different companies arid received proposals from four of them; and WHEREAS, the pension board reviewed the proposals submitted and interviewed representatives of the four companies that responded; and WHEREAS, the pension board has recommended that the service contract be awarded to Gabriel, Roeder & Company, and the pension attorney concurred that the company is premier in the industry. NOW THEREFORE BE IT RESOLVED BY TIIE .MAYOR AND CITY COMMISSION OF SOUTH MIAMI, FLORIDA, THAT: Section l Effective immediately, Gabriel, Roeder & Company (GRS) wiJI serve as the actuarial consulting firm in accordance with the terms and conditions of the City pension plan. Section 2 The City Manager is authorized to sign a three-year contract with the option for renewals for additional years with the company for pension actuarial services. Section 3 This resolution shall take effect immediately upon approval. PASSED AND ADOPTED th.is 2 nd ATTEST: iff71£l~ Cl CLERK ~ READ AND APPROVED AS TO FORM: day of October 2001. COMMISSION VOTE: 4-0 Mayor Robaina: Yea Vice Mayor Feliu: Yea Commissioner Bethel: Yea Commissioner Wiscombe: not preser. Commissioner Russell: Yea RESOLUTION NO. ___ 1_4_6 -0 1 -11 294 A RESOLUTION OF THE MAYOR AND CITI COMMISSION OF THE CITY OF SOUTII MIAMI, FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES, AUTIIORIZING TIIE CITY MANAGER TO SIGN A THREE-YEAR CONTRACT WIlli GABRIEL, ROEDER, SMITH & COMPANY(GRS), WITH THE OPTION FOR RENEWAL FOR ADDITIONAL YEARS. WHEREAS, the City of South Miami employee Pension Fund currently utilizes WATSON WY A IT as the actuarial consulting finn; and WHEREAS, Watson Wyatt (actuaries) has advised the City that effective August. 31, 2001, it reached an alliance with Gabriel l Roeder & Company (GRS); and WHEREAS, the City sought to conduct a formal search for actuarial services ftom different companies arid received proposals from four of them; and WffflREAS, the pension board reviewed the proposals submitted and interviewed representatives of the four companies that responded; and WHEREAS, the pension board has recommended that the service contract be awarded to Gabriel, Roeder & Company, and the pension attorney concurred that the company is premier in the industry. NOW THEREFORE BE IT RESOLVED BY THE .MAYOR AND CITY COMMISSION OF SOUfH MIAMI, FLORIDA. THAT: Section 1 Effective immediately, Gabriel, Roeder & ComPaJ1Y (GRS) wiJl serve as the actuarial consulting finn in accordance with the terms and conditions of the City pension plan. Section 2 The City Manager is authorized to sign a three-year contract with the option for renewals for additional years with the' company for pension actuarial services. Section 3 This resolution shall take effect immediately upon approval. PASSED AND ADOPTED this 2nd ATTEST: .. IffJIDJo. I.... cr CLERK ., READ AND APPROVED AS TO FORM: day of October 200 1. COMMISSION VOTE: 4-0 Mayor' Robaina: Yea Vice Mayor Feliu: Yea Commissioner Bethel: Yea Commissioner Wiscombe: not prese~ Commissioner Russell: Yea 66 SUNDAY SEPTEMBER 11 1016 MIAM!HERALD.COM ·I NEIGHBORS CITY OF SOUTH MIAM.I COURTESY NOTICE I 27SE NOTICE IS HEREBY given that the City Commission of the City of South Miami. Florid~ will rnnduc\ Public Hearing(s) at its regular City Commission meeting scheduled for Tuesday. September 20, 2016, beginning at 7:00 p.m., in the City Commi~sion Chambers, 6130 Sunset Drive, to consider the following item(s): A Re,,,Jution appnwing a special nse_to permit a fraternal organfr.a_tit•n/privare club ar 6~04 SW 7K Streel. A Resolution relating w an application for waiver of plat for the subdivision of prope11y !orated 6050 SW 81 Street._ An Ordimmce amending the City of South Miami's Land Development Code, Article Ill, "Zoning Re1,'11lations.'' Section 20-3.3, Permitted u.se scbectule.'' Subsection (E), .. Omdoor Seating/Dining for All commercial Pwpenies_. except for Properties in the RO Residential Offire Zoning Di6trict." to amend the insurance requirements, and other applicuble niles, applicable to outdoor seating of restaurnnts within the City. _ An Ordinance amending the South Miami Pension Plan TO implement the Collective Bargaining Agreement between the City of South.Miami and AFSCME Local 3294 and creating a new Admini~tratioo Mimagement Service Class (AMSC) l'f em1>loyees in the South Miami Pension Plan for tl1e City of South Miami and ,;etting forth the terms of the Plan as related to the AMSC: by }\-mending Chapter J6, Article 11_. Section 16-12, '·Definitions'' by Adding Definitions for Second Tier Member and AMSC and :imending the definition of final average ~ompensation. as it ap11lies to the AMSC: hy amending Section 16-13. "Eligibility'' to reopen the Plan for certain General Employees and for the AMSC; by amedding Section 16-J 4, "Pe1isio11 benefits and reliremem date .. to set out tl1e benefit$ for those persons who will join tile Second Tier and for those persons in the AMSC; by amending Section 16-17 "Te1mination Benefits" to provide" vesting schedule for the AMSC; by amending Sec. 16-19, "Contributions•· to place a limit 011 the total Cflnltibutions made in any fiscal year by General Employees and to set the contribution rate for rhe AMSC: by amending Section 16-21, "Purchase of Crecliied Service'' by allowing certain employee, and elected nfficcrs to buy credited service. An Ordinance of the Mayor and City Commission of the City of South Miami amending the Land Development Code .. Alticle III, "Zoning Regulations," Section 20-3.5. "Dimensional Requirement,:· to amend and clarify the setback rcquircmmts for side stn,ct first and scrnnd story facades of structuri!s on corner Jots, and for ~idc intc1ior setback~ for additions to structw·es with a live foot setback. in the RS-1. RS-2 .. RS-3. RS-4 and RS-5 zoning disu"ict~: and Section 20-3.6. "Supplemcntal Regulations:· subsection (F)( 4). lo correct the title [If the director responsible for dctennining which streets are front.age and side streets. An Ordinance amending Section 20-6. 1 of the City of Sc,'uth Miami's Land Development Code. 111 amend the meeting requirements for the Environmental Review and Preservation Board. An Ordinance Adopting a Small Scale Amendment to the Future Land Use Map of the Comprehensive Plan, amending th~ designation of the Marshall Williamson property located south (lf SW 64~ Terrance. approximately between SW 60'" Avenue and SW 6Ju Court. from Single-Family Residential (Two-Story) to Townhouse Rcs.identinl (Two-Story). An Ordin!tllce Amending the Official Zoning Map, as authorized by Section 20-3. J (C). and other applicable provisions. mnending the designation of the Marshall Williamson pmpeny located snuth of SW li4'" Terrace apprmdmately between SW 6011> Avenue and SW 61'' Court. from Single-Family Residential Distrkt RS-4 to RT-9. ALL intere~ted parties are invited to attend and will be heard. Fnr further info1mation, please contact the City Clerk's Office at:.305-663-6340. MariaM. Menendez. CMC City Clerk Pursmml to Fh)lilfa SllilUlcs 2~6.0105. the City herchy advises the puhlic tl1al jJ n J'H!T~nn clccid~~ lo ;.1ppcal any dccisfon mudc hy llus Bo.u<l, Ageu.:y or Comniis 1don with rc!iipccl tc, :my maHcr i:om:iderc-d al j1.~ mcc1ing ur hearing.. he ur she will need a record of 1hc 1u·occcding:,:1 m,d 1ha1 for su.:h 1mJJ>osc. aJTcclcd person mil)' need to CJ1surc that a vcrha1jm rccuJ'd or 1hc pr0tccc.Jjng!-is made which rccurU includes the 1cstimony Md cvid~m;c n1wn which lhc appc3.l is to he hascd. SUNDAY SEPTEMBER 11 2016 MIAMIHERAlD.COM ·1 NEIGHBORS CITY OF SOUTH MIAMI COURTESY NOTICE 1 27SE NOTICE IS HEREBY given that Ibe City CommissioD of Ihe City of Soulh Miami. Florida will condu~1 Pul>lic Hearingls) al its regular City COJIllJIission meeting scheduled for Thesday. September 20, 211J6, beginning at 7:00 p.ID., in tbe City Commission Chambers, 6130 Sunset Drive, to consider the following item(s): A Res(dution appTllYing II specialllse -'" permit a fraternal orgllnil".a.tillniprivlI!e club at 6:\04 SW 78 Street. A Resolution relating !O lin applicatioll for waiver of plat fur tbe subdivision of property located 6050 SW 8) Street.. An Ordinance amending the City of Snuth Miami'~ Land Development Code, Article Ill, "Zoning Re!,'1lllltions," Sedion 20-3.3, Permitted Il.'e scbedule." Subsection (E), "Olltdoor SeatingiDinin~ for All commercial Properties, except for Pmperties in the RO Residential Office Zoning Dilitrict."!o amend the insuJ'IVlce requirements, and other applicable rules, applicable to outdoor seating of restaUl"dnts within the City . . An Ordinance amending the Soutb Miami PensiOJJ Plan l() implement the Collective Bargaining AgreemeJ1l hetween the City of South Miami and AFSCME Local 3294 and crealing a new AdminiNtration MlUlagement Service Class (AMSC) llf emllJoyees in the South Miami Pension Plan for !lIe Cit)' of Slluth Miami and Netting forth the terms of the .PIan as related to the AMSC: by !,>mending Chapter 16, Article n, Section 16-12, "Defuutinns" by Adding Definitions for Seconc11'iel' Member and AMSC and amendillg the definition Qf tinal average compensation. as it applies to the AMSC; by amending Section 16-13. "Eligibility" to reopen the Plan for certain General Employees and for tbe AMSC; by amedditlg Section 16-] 4, "Pe1isioll benefits and reliremellt date"to set out tbe benefits for those persolls who will join the Second Tier and for those persons in the AMSC; by amending Section 16-17 ''Tenllill<1tion Benefits" to provide 1\ vesting schedllle for the AMSC; by amending Sec. 16-19, "Colllriblrtion~" to place a liinit on the total contributions made in any fiscal year by General Employees and to ~et the contribution rate for rhe AJl.1SC; by amending Section 16-21, "Purcba.~e of Crediied Servicc" by allowing cerlain cmployees and ulected officel'l' to buy credited service. An Ordinance of the MaY(lr and City Commission of tbe City of Soudl Miami amending tbe Land Development Code. A1ticle Ill, "Zoning Regulations," Section 20-3.5. "Dimensional Requi1'emcnL~.~ to amend and clarify the sctl:>ack n:quil1l~lcnts for side street first and 5ccI)nd story facades of strocturcs on comer lots, and for ~itlc interior setbacb for additions 10 structures with a live foot setback. in the RS-1. RS-2. RS-3. RS-4 and RS-5 zODing disu'ict~: and Section 20-3.6. "Supplemental Regulatiolls," subsection (F)(4). to correct the title of the director responsible for dctennining which streets are fronUlge and side streets. An Ordinance amending Section 20-6.1 of tbe City of So'uth Miami's Land Development Code. to amend the meeting requirements for the Environmental Review and Preservation Board .. An Orclinance Adopting a SmaU Scale Amendmenl 10 the Puture Land Usc Map of the Comprehensivc Plall, amending the designatioll of the Marshall WilliaDlslln property localed south of SW 64110 Terrance. apprnxim8tely between SW 6()'" Avenue and SW 61" Court. from Single-Family Residelllial (Two-Slory) to Townhouse Residential (Two-Stor~'). An Ordinance Amending Ihe OffiL'ial Zoning Map, as authorized by Section 20-3.1CC}. and other applicable provisioDli. mnending the desigllation oithe Marshall Williamson pmpeny located south of SW 64'" TCluce appl'OKimately between SW 611'" Aven~e and SW 61" Court. from Single-Family Residential Di~trict RS-4to RT-9. ALL interested parties are invited to attend and will be heard. Fllr further infOllnalion, please conlaclthe Ciry Clerk'~ Office at:' 305-663-6340. Maria M. Menendez. CMC City Clerk PU,,"UiOlt 10 F1llrlda Stalnle. 2~6.tlJ05. the City hereby udvi.cs Ibe public IIIIU ij 11 p~r"ln decide. ~I appeoil alll' decision mudc hy this BOlUd. Agcu"y IIr ClIlIuni .. h,n wilb n"peci UI lilly m_tlCr c.m,idorro at il.' meeling ur heruin/!. be IIr .he willlleoo a recllrd uf Ihe proceedings, mId Ihallol ."ch ),u1p,,"e. a/TCCIOO per.lln m,,>, nee<l to C11'llre th.1t II vcrbalim record IIf tbe proceeding. i. Illude which recurd include. the Ic,timony I\IId evidence IIPl'l1 which thc uppcal i. to be based. ,. 67 MIAMI DAILY BUSINESS REVIEW PUbll9hed Oal1y e.xeepl S.ilwday, Sul'lday and leqJi,Holidoya Miami, M1ami-Ood11 CouQly. Flozlda STATE OF FLORIDA COUNlY OF MIAMI-DADE: Before the undersigned authority personally appeared OCTELMA V. FE'RBEYRE, who on o;.lh says lhat ha or she jg lhe VICE PRESIDENT, Legal Notices of Iha Miami Daily • Business Revtew f/k/a Miami _ Ravraw. e daily (excepl Salurd8'/, Sunday and legal HoTidays) ne.,spaper. pl.lbftshed al Miami In Miami-Dade Counly, Florida, lhat the allar.hed copy of ad""'1isemenl. being a Legal Advenlsemenl or Nolice in lhe mane, ol NOTICE OF PUBLIC HEARING CITY OF SOUTH MIAMI . SEPT 2Q, 2016 in lhe XXXX Court, was pubtished in said newspaper in lhe issues or 09/09/2016 Affianl fur1her says lhat lhe said Miami Daffy Business ReWev, is a newspaper published at Miami, in said Miam;..Qade County. Florida ar,d that the said newspaper has heretofore bP.en continuously publisfled in said Miemi..Oade County. Florida each day (except Salurday, Sunday and legal Holidays) end has beP.n enlered as second class mail mailer a, lhe posl office in Miami ,n sair.l Miami.Dade Counly, Florida, for a period ot one year next pr84;eding lbe firsl publicalion of the attached copy of 8dvertisement: and sffisnl further says lhal he or she has neither paid nor promised any rierson. (11,n or corpora(iOI\ any discoun(. rebate. commission .I lhe qurpose or securing this ad'lertisemenl for CITY OF SOUTH MRAMI NOTICE OF PUBLIC HEARING NOTICE rs HEREBY given lhat the City Commission of tho City of South Miami, Florida will conduct Pllbllc Heering(s) at lls regular City Commission meeting scheduled for Tuesday, September 20, 2016, beginning at 7:00 p.m., In the City Commission Chambers, 6'130 Sunsel O~ve, to consider the following ltem(s): • • A ResoMlon approving a special u!II ID penn,l a fratemal 01ganlzalion/private club at 6304 SW 76 S1reet. ,._/', JieS!>Miiin rel,~ting .ID ari·.~ppUC!'lion for. !Wiver _of plaJ for the ,. subff~s)oii ol,l"J",!','il)Y.19~·~ !lW B)_ Str~. . • • . . . . .;:•~-,~i~.a~~'an\r~i,ie_,·: ,,: •• 00f S6illh Mfa~r.s,Lanioew1opment . Code, Miele 111,.•.Zonlng, ·ans:: Secilon-20-3.3, 'i>eimlited use schedule," SubsecUon r Saaling/Oinlng for All commercial Properties, elCC8pl for Propenies In I/le AO Residential Office Zoning District," to amend lhe insurance requirements, end other applicable rules, appHoable to outdoor seating of restaurants within the City, AA Ordinance emending the South Miami Pension Plan to implement ) the Collecllve Bargaining Agreement l>•lWeen the City of South Miami and AFSCME Local 3294 and creating ii ·new Administration Management Service Class (AMSC) of employees In lhe South Maml Pension Plan for 1he City of Souih Miami and setting forth 1he terms of the Pian as releted to the AMSC: by Amending Chapter 16, Article II, Section 16-12, "DBllnlllons" by Adding Definitions for Seoond Tier Member • and ··AMSC and amending lhe delinillon of final average oompensallon, 1m It applies ID lhe AMSC: by amending Section 16-13, I •• 'Eligibility' ·to· reopen the Plan for cenaln General Employees end for the AMSC; by. amending Secllon t&-14, "Pension benefits and retirement date" to set (!UI thll benefits for those persons who will join lhe SeCOlld Tter and for those persons In tt,e AMSC;' by amending ) Section 16•17 11Terl11iriallon Benefits'" to proultre a vesting schedllte for the AMSC; by amending Sec, 16-19, •conlribullons" to place " limlt. on lhe total • contllbullons made In any f1Stal • year by General: Employees and to sel lhe oonlribulion. rate for the AMSC; by • amending Section 1&-21. "Purchase of Credited Service" by allowing certain amployees and elected officers ID buy credited service. I .,/ An Ordinance ol lhe Mayor and Cily Commission of 1heCity ol South Miami amending Iha Land Oevelopmenl COde, Artlcle. 111, "Zoning Regulallona," Section 20·3.5, "Oimansfonal Req.ulrements," to amend and clarify lhe setback re11uirements for side streOl first and second story facades of structures • on cornet lots. and for ~a interior selbacks tor addffions lo struclures with a five loot selback, ., lhe RS-1. RS-2, RS-3, RS-4 and RS-5 zoning dlslrl<ls; end Sectton 20-3.6; •supplemental Regulations,• subsection (f){4I, lo correct lhe tille or the director responsible for determinfng which streels are frontage and side slreels .. An Ordinance amending Section 20-6.1 or the City of South Miami's Land Development Code, to amend the meatlng requirements for the Environmental Review end Preseivation Board. An Ordinance Adopttng a Small Sr.ale Amendment lo the Fulure Land Use Map or the Comprehensive Plan, amending lhe de!lgnation of the Marshall Williamson property localed south or SW 6411\ :Terrance, approximately between SW 60th Avenue and SW 61st Court, from Slngle-Fa1111'1y Residential (!\No.Stal\') 10 Townhouse Rosldenttal (TWo-5tolY). An Ordinance Amending the Official Zoning Map, as autholtzed by Section :!0•3,1(C), and other applicable provisions, amending the designation of !he Marshall Williamson property located south ol SW 64th Terrace-approximately l)elwaen SW 60th Avenue and SW 61st Court, from Single-Famlly Residential District RS-4 lo RT-9. ALL intareoled parties are invited to attond and wul be hoard. For further inlormalion, please conlact the City Clerk's Office at 305-663-6340. Maria M. MenOlldez, CMC City Clerk Pursuant to Florido ·statutes 286.0105, the City hereby advises lhe pubfic Ihat If a pen;on decides lo apPeal any decision made by this Board, Agency or Commission wllh respect to any matter considered al Its nieeling or heering, he or, she wm need a record of the proceedings, and that for such PUll)OSe, affected person may need to ensure that a velballm record or the proceedings Is made which record includes Iha testimony and evidence upon which the appeal Is to be based. 9/9 . . 16-101/D000151096M MIAMI DAILY BUSINESS REVIEW PUbll9hed Dally except S.,lwday. Sul'lday and leqJi' Holidoya Mmml. Mlami·Oodl! Cou"'y. Flolida STATE OF FLORIDA COUNlY OF MIAMI·DADE: Before the undersigned authority personally appeared OCTELMA V. FE'RBEYRE. who on o;tlh says Ihat he or she is Ihe VICE PRESIOENT. Legal NOllces of lhe Miami Oaily' Business Revtew flk/a Miami . Revraw. B daily (excepl Selurde,!. Sunday and legal HoTidays) newspaper. pLlbftshed al Miami In Miami-Dade County. Florida. that the aUathed copy of ad.er1isemenl, beinu a Legal Advenisemenl 01 No/ice in Ihe malle' 01 NOTICE OF PUBLIC HEARING CITY OF SOUTH MIAMI· SEPT 2Q.2016 in the XXXX Court, was pubt!shed in said newspaper in Ihe issues of 09109/2016 Affiant fur1her says that Ihe said Miami Daffy Business ReweY, is a newspaper published at Miami. in said Miam;"Dade County. Florida ;Jf\d that the said newspaper has heretofore bl!efl conlinuously publis"'ed in said Miami..()ade County. Florida each day (except Salurday. Sunday and legm Holidays) and has Won enlered as second class mail mailer 81 the POSI office in Miami In sair.! Miami·Dade CounlV. Florida, for 8 period ot one year next pf'84;eding the (lfs! publlcalion of the attached copy of advertisement: and affiant (urther says lhal he Of she has neither paid nor promised any ",erson. (ltm or corporalion any discount, rebate. commission .I Ihe qurpose 01 CITY OF SOUTH MAAMI NOnCE OF PUBLIC HEARING NOTICE IS HEREBY given Ihat the CiIY Commission of Ihe CIIY of Soulh Miami, Florida will conducl F'Ilbilc Hearing(s) at liS regular City Commission meeting schedUled lor Tuesday. Seplember 20. 2016. baglnning .t 7:00 p.m., In the CIIY Commission Chambers, 6'130 Sunsel O~ve. 10 consider lhe following ltem(s): . . A ResoMlon approving a special usalD permrla fratemaJ organlzalionlprivale ctUb al 6304 SW 76 Slreet. .. J', .BeS9Miiln rel,~ting.1D ari'.~ppUc!ttion for. !WiveI' ,of pial for I~ ,. su¥~s)on of,!"J'R.'iI)Y,I9~·~ !lW 8), Str~.. ". '. . . ::. ~·,bic!i~.a~.;,'a,;,r~~ •• ·: ,': "'of S6.;" Mia~r. •. L .. i o";;"'opment . COde, Adicl. m,.·.Zonlng, ·on.:~ Secilon ·2()'3.3, 'Peimlited U6. schedule; Subsection r SaalinglOining for All commercial Properties, e"""pI for proponies In t/10 RO Residential Office Zoning District," to amend lhe insurance requirements, end other applicable rules. appHeable to outdoor seating of ,osIaurants within the City. and AFSCME Local 3294 and creating iI 'new Admlnlstralion Management Service Class (AMSC) of employees In the Soulh Wlaml Pension Plan for 1~ CIIY 0' Souih Miami and .etting forth lhe terms 01 An Ordinance em.ncting Ihe South Miami Pensfon Plan 10 implemenl ) Ihe Collective Bargaining Agreement "etween Ibe Clly of SDuIh Miami the Pian as releled to Ih. IIMBC: by Amending Chapter 16. Artlole II, Seclion 16·12, "Definitions" by Adding Oefinltions for Second Tier Member' and '·AMSC and amandlng Ihe definillon of final av.niga compensalion, as II applies ID Ihe AMSC; by amending Seotlon 16-13. I .. "Eligibility' . to· reopen lhe Plan for cenaln General Employees end for the AMSC; by. amandlng Secllon t&-14, "PensIon benefits and relirament date" to .el <!UI tho benafita 'or those parsons who will join Ihe Second TIer end for lhose parsons In tt>e AMSC;' by amending } Section 16·17 "Termiriallon BenBflts" to proultre a vesting schedule for Ihe AMSC; by amending Sec. 16·19, "Contributions" to place" limit. on Iho tolal' contrlbullons made In any rlScal' year by General: Employe.. and 10 sel Ihe conlribulion. rate for rhe AMSC; by . amending Section 1&-21. "Purchase of Credl1ed ServIce" by allowing certain employee. and elected officers ID buy credited service. I /1 An Ordinance 01 I~e Mayor and Cily Commission of lheCilY of Soulh Miami amending Ibe Lend Developmenl COde, Article. III. "ZonIng Regulations," Section 20·3.5, "Oimenslonal Req.ulrements," to amend and clarify Ihe selback relIulremenls for sid. streGI firs! and .econd story facades of structures' on cornet lots. and for ~e interior soiback. for eddRions 10 structures wilh a five fOOl se!back, .. lho RS·1. RS·2. RS-3, RS·4 and AS·S zoning dlslrkta; and SecHon 20-3.6; "Supplemenlal Regulations,' subsection (f){41, 10 correcl Ihe tille 01 the director responsible for determining which streets are frontage and side slreels .• An Ordinance amending Section 20·6.1 of Ihe City of Soulh Miami'. Land Developmenl Code, to amend Ihe meeling requmemenl. for Ihe EnVironmental Review end Preservation Board. An Ordinance AdopUng a Small Scale Amendment 10 Ihe FUMe Land Us. Mep of the Cornprehansive Plan, amending Ihe designation of rhe Marshall Williamson property loealed SOUlh of SW 64111 :Te""""e • approximately between SW 60th Avenue and SW 61st Court, from Slngle.Family Resldenlial (lINo,slOry) 10 Townhouse RosldenHai (TWo-51ory). An Ordinance Amending the Official Zoning Map. as authortzed by Section :!(l·3.1(C), and olher applicable provisions, amending the deslgnalion of fhe Marshall Williamson properly localed south 01 SW 641h Terrae .. apprmclmaleiy betWeen SW 60111 Avenue and SW 6181 Court. from Single-Family Re.iden",' Dlotrlcl RS-410 AT·9. ALL int.resled partie. are invllad to al10nd and wUl be hOard. For further informalion, ple.se eonlecl lhe CilY Clerk's Office at 305-663-6340. Maria M. Men..,d9z, CMC CilyClerk Pursuanl to Florida 'Statutes 286.0105, the City hereby edvises lhe pubic Ihat If a pen;on decide. ID appeal any decision mode by lhls Board. Agency or Commission wilh respact 10 any mafler considered al lis .,eeting or hearing, he or· she will need a record of Ihe proceedings, and Ihal for .uc~ pU'llose, affected person may need 10 ensure Ihat a verballm record of Ihe proceedfn9s Is mede Which record includ.s the rasUmony and evidence upon which Iha eppesll. to be based. 919 . . 16·101100001510!l6M 68 ORDINANCE NO. 23-19-2336 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. as well as Implement Changes for Members who are not covered under a Collective Bargaining Agreement; by amending Section 16-12, "Definitions"; by amending Section 16-13, "Eligibility"; by amending Section 16-14, "Pension benefits and retirement dates"; by amending Section 16-17, "Termination"; and by amending Section 16-19, Contributions". 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, there are some members who are not covered under the Agreements, but the City of South Miami is desirous of amending the pension plan provisions for those members in accordance herewith; and WHEREAS, some of the purposes and intentions of this ordinance are to provide for adding additional positions to the AMSC class, adding an open enrollment period for joining the South Miami Pension Plan, capping contribution percentages for police officers and sergeants and changing normal retirement age and vesting for AMSC members; 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 actuarial impact statements related to the amendments to the South Miami Pension Plan that are set forth in this ordinance; 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 to include those individuals who not members of the Unions and not covered by 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 in order to continue to meet the City's objectives of retaining City employees, hiring the best talent and managing employee turnover. 1 ORDINANCE NO. 23-19-2336 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. as well as Implement Changes for Members who are not covered under a Collective Bargaining Agreement; by amending Section 16-12, "Definitions"; by amending Section 16-13, "Eligibility"; by amending Section 16-14, "Pension benefits and retirement dates"; by amending Section 16-17, "Termination"; and by amending Section 16-19, Contributions". 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, there are some members who are not covered under the Agreements, but the City of South Miami is desirous of amending the pension plan provisions for those members in accordance herewith; and WHEREAS, some of the purposes and intentions of this ordinance are to provide for adding additional positions to the AMSC class, adding an open enrollment period for joining the South Miami Pension Plan, capping contribution percentages for police officers and sergeants and changing normal retirement age and vesting for AMSC members; 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 actuarial impact statements related to the amendments to the South Miami Pension Plan that are set forth in this ordinance; 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 to include those individuals who not members of the Unions and not covered by 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 in order to continue to meet the City'S objectives of retaining City employees, hiring the best talent and managing employee turnover. 1 69 Ordinance No. 23-19-2336 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, Sec. 16-12, "Definitions" of the City of South Miami Code of Ordinances is hereby amended by ameRdiag and shall read as follows: *** AMSC member shall mean the administration management service class. It will 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 Community Redevelopment Agency Director Personnel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance Assistant Director of Parks and Recreation Second tier member shall mean general employees who are hired on or after October 1, 2016 who elect to join the city pension plan, &Re general employees who were hired prior to October 1, 2016 and not participating in the city pension plan as of October 1, 2016 who elect to join the city pension plan-:-and employees who previously participated in the City of South Miami Defined Contribution Plan and subsequently opted-out during the annual open enrollment period and joined the South Miami Pension Plan. *** Section 2: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-13, "Eligibility" as follows: ill *** Notwithstanding anything in this Section to the contrary, the City shall hold an annual open enrollment period during which time any employee who previously entered into the City of South Miami Defined Contribution Plan and is currently in the City of South Miami Defined Contribution Plan, may opt-out, and elect to join the South Miami Pension Plan, as a Second tier member or as their respective classification at the time they elect to join the South Miami Pension Plan. 2 Ordinance No. 23-19-2336 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, Sec. 16-12, "Definitions" of the City of South Miami Code of Ordinances is hereby amended by ameRdiRg and shall read as follows: *** AMSC member shall mean the administration management service class. It will 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 Community Redevelopment Agency Director Personnel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance Assistant Director of Parks and Recreation Second tier member shall mean general employees who are hired on or after October 1,2016 who elect to join the city pension plan, aRd general employees who were hired prior to October 1, 2016 and not participating in the city pension plan as of October 1, 2016 who elect to join the city pension plan. and employees who previously participated in the City of South Miami Defined Contribution Plan and subsequently opted-out during the annual open enrollment period and joined the South Miami Pension Plan. *** Section 2: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-13, "Eligibility" as follows: *** ill Notwithstanding anything in this Section to the contrary, the City shall hold an annual open enrollment period during which time any employee who previously entered into the City of South Miami Defined Contribution Plan and is currently in the City of South Miami Defined Contribution Plan. may opt-out, and elect to join the South Miami Pension Plan, as a Second tier member or as their respective classification at the time they elect to join the South Miami Pension Plan. 2 70 Ordinance No. 23-19-2336 ~) Notwithstanding sections (a) through Will above, all persons who join the eCity pension plan on or after the effective Elate of the offiiflallee fi:em wliieh this seetioa is Eleri¥eEISeptember 20, 2016 will not be required to have completed six (6) months of service prior to joining and are required to participate immediately upon hire or upon election to join for members who were hired prior to the effective Elate of this offiiaaBee fi:em whieh this seetioa is Elerh•eel September 20, 2016. Section 3: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-14( a )(3 ), "Pension benefits and retirement date" as follows: (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows: *** (3) AMSC members. The earlier of (a) age sixty-fwe (60~) and completion of thfee five ~3-) years of eCredited service; or (b) completion of thirty-three (33) years of eCredited service. *** Section 4: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-17(b), "Termination" 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 I is elected before the participant's normal retirement date. Option I: 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 prior to 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 on which pension benefits commence; or an amount determined by multiplying the amount of pension to which the participant is entitled in accordance with section subsection 16-14(a) or 16-14(b), whichever is applicable by a percentage determined in accordance with the following schedule on the basis of the length of credited service. *** 3 Ordinance No. 23-19-2336 t%) Notwithstanding sections (a) through Will above, all persons who join the eCity pension plan on or after the eftestive Elate ef the erEliaanse frem wftish this sestiea is EleriveEiSeptember 20, 2016 will not be required to have completed six (6) months of service prior to joining and are required to participate immediately upon hire or upon election to join for members who were hired prior to the effeetive Elate efthis erEiiaanee frem whish this sestiea is EleriveEi September 20, 2016. Section 3: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-14(a)(3), "Pension benefits and retirement date" as follows: (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows: *** (3) AMSC members. The earlier of (a) age sixty-fi¥e (60~) and completion ofthfee five ~3-) years of eCredited service; or (b) completion of thirty-three (33) years of eCredited service. *** Section 4: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-17(b), "Termination" 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 1 is elected before the participant's normal retirement date. Option J: 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 prior to 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 on which pension benefits commence; or an amount determined by multiplying the amount of pension to which the participant is entitled in accordance with section subsection 16-14(a) or 16-14(b), whichever is applicable by a percentage determined in accordance with the following schedule on the basis of the length of credited service. *** 3 71 Ordinance No. 23-19-2336 All general employees shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous credited service. All second tier members shall be one hundred (I 00) percent vested in the pension plan upon completion of ten (10) years of continuous service. AMSC members shall be one hundred (100) percent vested in the pension plan upon completion of five three ~3) years of continuous Credited service. AMSC members who have completed three (3) years of continuous Credited service as of the Effective Date of this Ordinance shall be 100% vested. General employees and AMSC members who opt to join the defined contribution plan of the city shall vest after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995, and have ten (10) years or more of continuous service will be one hundred (100) percent vested. *** Section 5: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-19(a)(2), "Contributions" 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. Except as otherwise provided herein, no participant shall make any contributions toward the cost of any past service pension to which 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 for all general employee participants, including those general employees that are now members of the retirement system, shall be increased from three (3) percent to five (5) percent of earnings. Effective October 1, 2001, the pension contribution for all general employee participants, including those general employees that are now members of the plan, shall be increased from five (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 to five (5) percent of earnings. Effective October 1, 2001, police officer participants shall contribute seven and one-half (7 .5) percent of earnings. *** (2) Police officer participants. Effective October 1, 2004, if the total police officer participants contributions and employer's contribution exceeds fifteen (15) percent of covered police payroll for any fiscal year, the excess over fifteen (15) percent shall be shared equally by the employer and police officer participants, provided however, that effective October 1, 2016, police lieutenants and police captains shall have their contributions capped at twelve (12) percent of earnings~ and effective October 1, 2018, police officers and sergeants shall have their contributions capped at twelve (12) percent of earnings. 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 growth or diminution in future chapter 185, F .S. funds. *** 4 Ordinance No. 23-19-2336 All general employees shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous credited service. All second tier members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous service. AMSC members shall be one hundred (100) percent vested in the pension plan upon completion of five three ~3) years of continuous Credited service. AMSC members who have completed three (3) years of continuous Credited service as of the Effective Date of this Ordinance shall be 100% vested. General employees and AMSC members who opt to join the defined contribution plan of the city shall vest after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995, and have ten (10) years or more of continuous service will be one hundred (100) percent vested. *** Section 5: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. I6-19(a)(2), "Contributions" 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. Except as otherwise provided herein, no participant shall make any contributions toward the cost of any past service pension to which 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 for all general employee participants, including those general employees that are now members of the retirement system, shall be increased from three (3) percent to five (5) percent of earnings. Effective October 1, 2001, the pension contribution for all general employee participants, including those general employees that are now members of the plan, shall be increased from five (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 to five (5) percent of earnings. Effective October 1, 2001, police officer participants shall contribute seven and one-half (7.5) percent of earnings. *** (2) Police officer participants. Effective October 1, 2004, if the total police officer participants contributions and employer's contribution exceeds fifteen (15) percent of covered police payroll for any fiscal year, the excess over fifteen (15) percent shall be shared equally by the employer and police officer participants, provided however, that effective October 1,2016, police lieutenants and police captains shall have their contributions capped at twelve (12) percent of earnings~ and effective October 1. 2018. police officers and sergeants shall have their contributions capped at twelve (12) percent of earnings. 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 growth or diminution in future chapter 185, F.S. funds. *** 4 72 Ord. No. 23-19-2336 Section 6. Codification. The provisions of this Ordinance shall become and be made part of the Future Land Use Map of the City of South Miami 's Comprehensive Plan, as amended. Section 7. 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 or the Guidelines adopted hereunder. Section 8. Ordinances in Conflict. All ordinances or parts of ordinances and all section and parts of sections of ordinances in direct conflict herewith are he reb y repealed. Section 9. Effective Date. This ordinance shall become effective upon enactment. PASSED AND ENACTED this 18 th day of June , 2019. ATTE ST: 1st Reading: 6/4/19 2 nd Reading: 6/18/19 READ LA 5 COMMISSION VOTE: Mayor Stoddard: Vice Mayor Harris: Commissioner Gil: Commissioner Welsh: 5-0 Yea Yea Yea Yea Commissioner Liebman: Yea Ord. No. 23-19-2336 Section 6. Codification. The provisions of this Ordinance shall become and be made part of the Future Land Use Map of the City of South Miami 's Comprehensive Plan as amended. Section 7. Severabili ty. 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 or the Guidelines adopted hereunder. Section 8. 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 9. Effective Date. This ordinance shall become effective upon enactment. PASSED AND E ACTED this 18 th day of June, 2019 . ATTEST: 15t Reading: 6/4119 2 nd Reading: 6118119 5 APPROVED: 'vlU /d4d1 MA OR COMMISSION VOTE: 5-0 Mayor Stoddard: Yea Vice Mayor Harris: Yea Commissioner Gi l: Yea Commissioner Welsh: Yea Commissioner Liebman: Yea 73 City Commission Agenda Item Report Meeting Date: June 18, 2019 Submitted by: Alfredo Rivero! Submitting Department: Finance Department Item Type: Ordinance Agenda Section: Subject: Agenda Item No:14. 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. as well as Implement Changes for Members who are not covered under a Collective Bargaining Agreement; by amending Section 16-12, "Definitions"; by amending Section 16-13, "Eligibility"; by amending Section 16-14, "Pension benefits and retirement dates"; by amending Section 16-17, "Termination"; and by amending Section 16-19, Contributions". 3/5 (City Manager-Finance Department) Suggested Action: Attachments: ARMemo Ordinances -Pension Revision (June 2019) CAP-Open-More Members FINAL.pdf Ord Amending 16-12, 13, 14, 17 & 19.docx Res. No 184-18-15217-Agreement with the FOP (Officers Sergeants).pdf Actuarial Projection Study (Open Enroll -More Management).pdf Actuarial Study-AMSC.pdf MDBRAd.pdf Miami Herald Ad.pdf Memo Pension Impact Statement (6-18-19) FINAL.pdf Actuarial Impact Statement Open-AMSC-Cap.pdf Res No 146-01-11294-GRS and Support.pdf 1 City Commission Agenda Item Report Meeting Date: June 18, 2019 Submitted by: Alfredo Riverol Submitting Department: Finance Department Item Type: Ordinance Agenda Section: Subject: Agenda Item No:14. 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. as well as Implement Changes for Members who are not covered under a Collective Bargaining Agreement; by amending Section 16-12, "Definitions"; by amending Section 16-13, "Eligibility"; by amending Section 16-14, "Pension benefits and retirement dates"; by amending Section 16-17, "Termination"; and by amending Section 16-19, Contributions". 3/5 (City Manager-Finance Department) Suggested Action: Attachments: ARMemo Ordinances -Pension Revision (June 2019) CAP-Open-More Members FINAl.pdf Ord Amending 16-12,13,14,17 & 19.docx Res. No 184-18-15217 -Agreement with the FOP (Officers Sergeants).pdf Actuarial Projection Study (Open Enroll -More Management).pdf Actuarial Study -AMSC.pdf MDBRAd.pdf Miami Herald Ad.pdf Memo Pension Impact Statement (6-18-19) FINAl.pdf Actuarial Impact Statement Open-AMSC-Cap.pdf Res No 146-01-11294-GRS and Support.pdf 1 74 THE CITY OF PLEASANT LIVING CITY OF SOUTH.MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: The Honorable Mayor & Members of the City Commission From: Steven Alexander, City Manager Date: June 4, 2019 Request: 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. as well as Implement Changes for Members who are not covered under a Collective Bargaining Agreement; by amending Section 16-12, "Definitions''; by amending Section 16-13, "Eligibility''; by amending Section 16-14, "Pension benefits and retirement dates"; by amending Section 16-17, ''Termination"; and by amending Section 16-19, Contributions". BACKGROUND On September 20, 2018 the .Mayor and Commission adopted Resolution 184-18-15217 which approved the Florida State Lodge Fraternal Order of Police, Inc. three-year Collective Bargaining Agreement (CBA) for police officers and sergeants beginning September 18, 2018 through September 17, 2021, authorizing the City Manager to execute the agreement. The proposed Ordinance incorporates the changes necessary to conform to the approved CBA, specifically Article 37, Retirement Benefits ensuring police officers and sergeants pension contributions will be capped at no more than 12% of earnings. In addition, the City is proposing additional changes for all of our employees in an effort continue to meet the City's objectives of: Retaining our City employees, the City's greatest assets. -Retention is the key to corporate stability and resident satisfaction. Keeping & managing employee turnover -Employee turnover can be costly. Various sources estimate it can cost anywhere from 30% to 200% of an employee's annual salary to replace them. PROPOSED ORDINANCE Effective October 1, 2018 police officers and sergeants pension contributions will be capped at no more than 12% of earnings, as agreed upon in the most recently agreed three-year Collective Bargaining Agreement (CBA) for police officers and sergeants. Moreover, as part of the proposed ordinance, the City is requesting to include six additional 2 positions within the Administrative Management Service Class (AMSC). The new proposed AMSC Members will be composed of the persons who hold only the following positions: Page 1of2 rcr South rMiami THE CITY OF PLEASANT LIVING CITY OF SOUTH.MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: The Honorable Mayor & Members of the City Commission From: Steven Alexander, City Manager Date: June 4, 2019 Request: 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. as well as Implement Changes for Members who are not covered under a Collective Bargaining Agreement; by amending Section 16-12, "Definitions"; by amending Section 16-l3, "Eligibility"; by amending Section 16-14, "Pension benefits and retirement dates"; by amending Section 16-17, ''Termination''; and by amending Section 16-19, Contributions". BACKGROUND On September 20, 2018 the .Mayor and Commission adopted Resolution 184-18-15217 which approved the Florida State Lodge Fraternal Order of Police, Inc. three-year Collective Bargaining Agreement (CBA) for police officers and sergeants beginning September 18, 2018 through September 17, 2021, authorizing the City Manager to execute the agreement. The proposed Ordinance incorporates the changes necessary to conform to the approved CBA, specifically Article 37, Retirement Benefits ensuring police officers and sergeants pension contributions will be capped at no more than 12% of earnings. In addition, the City is proposing additional changes for all of our employees in an effort continue to meet the City's objectives of: -Retaining our City employees, the City's greatest assets. -Retention is the key to corporate stability and resident satisfaction. -Keeping & managing employee turnover -Employee turnover can be costly. Various sources estimate it can cost anywhere from 30% to 200% of an employee's annual salary to replace them. PROPOSED ORDINANCE Effective October 1, 2018 police officers and sergeants pension contributions will be capped at no more than 12% of earnings, as agreed upon in the most recently agreed three-year Collective Bargaining Agreement (CBA) for police officers and sergeants. Moreover, as part of the proposed ordinance, the City is requesting to include six additional 2 positions within the Administrative Management Service Class (AMSq. The new proposed AMSC Members will be composed of the persons who hold only the following positions: Page 10f2 75 -Community Redevelopment Agency Director -Personnel Manager/Human Resources Director -Project Manager -Special Assistant to the Manager (vacant and not funded in FY 2019) Superintendent of Maintenance -Assistant Director of Parks and Recreation AMSC Members shall be fully vested in the pension plan upon completion of five (5) years of credited service and a normal retirement age of sixty (60). Lastly, the City is proposing an annual open enrollment period for members who previously elected to participate in the City's defined contribution plan to join as second tier members or their respective plan of classification. This proposed revision provides everyone an opportunity to join the City's South Miami Pension Defined Benefit Plan. The proposed changes listed above, provide an overall savings 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 provides additional revisions with the intent to continue meeting the City's personnel objectives. ATTACHMENTS -Proposed Ordinances -Resolution 184-18-15217 Approving the Florida State Lodge Fraternal Order of Police, Inc. CBA -GRS Projection Studies Page 2 of 2 3 -Community Redevelopment Agency Director -Personnel Manager/Human Resources Director -Project Manager -Special Assistant to the Manager (vacant and not funded in FY 2019) Superintendent of Maintenance -Assistant Director of Parks and Recreation AMSC Members shall be fully vested in the pension plan upon completion of five (5) years of credited service and a normal retirement age of sixty (60). Lastly, the City is proposing an annual open enrollment period for members who previously elected to participate in the City's defined contribution plan to join as second tier members or their respective plan of classification. This proposed revision provides everyone an opportunity to join the City's South Miami Pension Defined Benefit Plan. The proposed changes listed above, provide an overall savings 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 provides additional revisions with the intent to continue meeting the City's personnel objectives. ATIACHMENTS -Proposed Ordinances -Resolution 184-18-15217 Approving the Florida State Lodge Fraternal Order of Police, Inc. CBA -GRS Projection Studies Page 2 of 2 3 76 RESOLUTION NO. _1_8_4_-_1 _8-_1_5_2_1_7 __ A Resolution ratifying the three-year Collective Bargaining Agreement for police officers and sergeants between the Florida State Lodge Fratemal .Order of Police, Inc. and the City of South Miami and authorizing its execution by the City Manager. --~~=··=··=-=·=··..;-WH;.;.;.;;.;;E;,;,REAS:::;;.;~f..:t;,;,;he:.-M.;.:..;.;:a:.&y~or;..;a;;.;n.;.;:d;.,·G;;; .. j:;!ty!..:·G;;;·o=m,;;m~iss;;;i;;;:;o;,;n·:::o;,;,f ·,;;th,;;;e;.;a;;·ty.&..;o=f=S~o=ut,;;·h~·M;,;,;,;,;ia;,;.m;.;.;i.,;·s=e~ek~-~to;,..··pi;.;r;..;:;o ... vi_· d_e ____ -~---·-=· =~r the highest levels of law enforcement protection and services for the citizens, residents, businesses and visitors of the City of South Miami; and WHEREAS, a Collective Bargaining Agreement with the Florida State Lodge Fraternal Order of Police Inc. (FOP), the union representing the police officers and sergeants of the South Miami Police Department, is an integral component of this effort; and WHEREAS, • the City Administration and the FOP have successfully concluded negotiations for a new three-year contract that achieves these objectives; and WHEREAS, the police officers and sergeants have ratified the attached agreement. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI., FLORIDA, that: Section 1: The three-year Collective Bargaining Agreement between the Florida State Lodge Fraternal Order of Police Inc. and the aty of South Miami is hereby ratified and the City Manager is authorized to execute the Agreement. A copy of the Agreement is attached her~to and made a part hereof by reference. Section 2. Severability. If any section clause, sentence, or phrase of this resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding shall not affect the validity of the remaining portions of this resolution. Section 3. Effective Date. This resolution shall become effective immediately upon adoption. PASSED AND ADOPTED this 20th day of September. 2018. ATI~.g Approved: .Pf/C8~ CITY. CLER MAYO READ AND APPR Commission Vote: 5-0 LANGUAGE E Mayor Stoddard: Yea LEGALITY: Vice Mayor Harris: Yea Commissioner Gil: Yea Commissioner Liebman: Yea Commissioner Welsh: Yea 9 RESOLUTION NO. _'_8_4-_1_8_-_'_52_'_' __ A Resolution ratifying the three-year Collective Bargaining Agreement for police officers and sergeants between the Florida State Lodge Fratemal.Order of Police, Inc. and the CIty of South Miami and authorizing its execution by the City Manager. i I I I I I I I __ ~~'",:,"=._-~' ·:",,·-~WH;;.;.;.;;E~R;,:;EAS~i:..;-t~"'e~-M~a;.&y~ar~a;;.;.n~d;,,;·G;;·it;!;-Y.,;;·G~·o;;;m;;m;;;i:;;ss;;;io;;n~-o;,;f,,;·t~he;.e';:;;·;,;,jty~o=f=· S~o:=l;It;;,·h~·M~ia~m~i-,;,se=e~k;...;·t~e",··p~ro~V1_·d~e ...... _~_~.~_._._=-===i-F the highest levels of law enforcement protection and services for the citizens, residents, r businesses and visitors of the City of South Miami; and WHEREAS, a Collective Bargaining Agreement with the Florida State Lodge Fraternal Order of Police Inc. (FOP), the union representing the police officers and sergeants of the South Miami Police Department, is an integral component of this effort; and WHEREAS, . the City Administration and the FOP have successfully concluded negotiations for a new three-year contract that achieves these objectives; and WHEREAS, the police officers and sergeants have ratified the attached agreement. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, that: Section 1: The three-year Collective Bargaining Agreement between the FlOrida State Lodge Fraternal Order of Police Inc. and the ety of South Miami is hereby ratified and the City Manager is authorized to execute the Agreement. A copy of the Agreement is attached her~to and made a part hereof by reference. Section 2. Severability. If any section clause, sentence, or phrase of this resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding shall not affect the validity of the remaining portions of this resolution. Section 3. Effective Date. This resolution shall become effective immediately upon adoption. PASSED AND ADOPTED this 20th day of September, 2018. Ai3~,~ Approved: .Pf!I rg/Jk4 CITY. ClER MAYO READ AND APPR Commission Vote: 5-0 LANGUAGE E Mayor Stoddard: Yea LEGALITY: Vice Mayor Harris: Yea Commissioner Gil: Yea Commissioner Uebman: Yea Commissioner Welsh: Yea 9 77 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 PREAMBLE i :_ ---· ····---·-~hi~greementis=ent;~ed~into-by·ttric1trotS-o-ottrMrami;-Flmilia~-~~refetred't~a~·-..••••. -· ~-~~ the 11 Employer11 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 for the 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 ev_ery 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 Chief, 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. 1 10 · . AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 PREAMBLE i :. -.. u.... -o·-~hi~greementis:ent;~ed~into-b~,.ttrei:itiOfio-oti+MianTi;-FIOrid-d~· ~tterrefeTreth~a~o-....... uo ~o~f the IIEmployer" or the "City" and the Florida State Lodge, Fraternal Order of Police Inc., j 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 for the 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 "Si-weekly" mean ev,ery 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 Chief, Majors, Police Captain, Police Ueutenants, 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. 1 10 78 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 I .ARTICLE 2. NON-DISCRIMINATION __ . . ! ·•···· --··--·~·=·----·•-~--" --~··~·~····-····-·-~---~~~~=~===~~-=-~-··" --·-·=-==+ There shall be no discrimination, interference, restraint, or coercion by the Employer or the FOP against any employee because of FOP membership or non-membership, or because of race, creed, color, age, sex, religion, marital status, sexual orientation, disability and national origin. All references to employees in this Agreement shall app,y to both sexes and wherever the male gender is used, it shall be construed to include male and female employees and vice versa. ARTICLE 3. DUES CHECK-OFF 1 Any member of the FOP, who has submitted a properly executed dues authorization card or written statement to the City Manager, or the Manager's designee, in accordance with a format prescribed or approved by the City, may, by request in writing, have their membership dues in the FOP deducted from their wages. Dues shall be deducted each bi-weekly pay period, and shall, thereafter, be transmitted to the FOP. However, the City shall have no responsibility or any liability for any monies once sent to the FOP, nor shall the City have any responsibility or any liability for the improper deduction of dues. Furthermore, the FOP shall hold the City harmless for non-intentional errors in the administration of the dues deduction system. The City shall send all dues to: Fraternal Order of Police-Florida State Lodge 242 Office Plaza Tallahassee, Fl. 32301 2 It shall be the responsibility of the FOP to notify the City Manager, or the Manager's designee, of any change In the amount of dues to be deducted at least thirty (30} working days in advance of said change. Under no circumstances shall the City be required to deduct FOP fines, penalties, or assessments from the wages of any member. 3. Any member of the FOP may, on thirty (30) calendar day's written notice to the City and the FOP, request that the City cease deducting dues from his wages. ARTICLE 4. FOP BOARD OF DIRECTORS REPRESENTATIVES l. The FOP shall notify the Chief of Police of the names of all members of the FOP Board of 2 I i 11 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 . ..... .. . .. . .. .... . ARTICLE 2. NON-DISCRIMINATION .. _ . ~==~~~-=~~~~~~============~======~~~==--=~~======~.=.= .. =-.. ... -.-.-... -.~ There shall be no discrimination, interference, restraint, or coercion by the Employer or the FOP against any employee because of FOP membership or non-membership, or because of race, creed, color, age, sex, religion, marital status, sexual orientation, disability and national origin. All references to employees in this Agreement shall apply to both sexes and wherever the male gender is used, it shall be construed to include male and female employees and vice versa. ARTICLE 3. DUES CHECK-OFF 1 Any member of the FOP, who has submitted a properly executed dues authorization card or written statement to the City Manager, or the Manager's designee, in accordance with a format prescribed or approved by the City, may, by request in writing, have their membership dues in the FOP deducted from their wages. Dues shall be deducted each bi-weekly pay period, and shall, thereafter, be transmitted to the FOP. However, the City shall have no responsibility or any liability for any monies once sent to the FOP, nor shall the City have any responsibility or any liability for the improper deduction of dues. Furthermore, the FOP shall hold the City harmless for non-intentianal errors in the administration of the dues deduction system. The City shall send all dues to: Fraternal Order of Police-Florida State Lodge 242 Office Plaza Tallahassee, FI. 32301 2 It shall be the responsibility of the FOP to notify the City Manager, or the Manager's designee, of any change In the amount of dues to be deducted at least thirty (3D) working days in advance of said change. Under no circumstances shall the City be required to deduct FOP fines, penalties, or assessments from the wages of any member. 3. Any member of the FOP may, on thirty (30) calendar day's written notice to the City and the FOP, request that the City cease deducting dues from his wages. ARTlaE 4. fOP BOARD Of DIRECIORS REPRESENTATIVES 1. The FOP shall notify the Chief of Police of the names of all members of the FOP Board of 2 I I ..=-==+ , i 11 79 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 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 __ . • • --··-0:thef..ctiailgi:in:..t1ie:if.irof.matio"i:i:ieq·1.;:r~eiii~ta:&e-8i.vei:i-foi~tl:i&<Gf.ifet,::ef..:t4>ifGe,:t-we-inem11eFSJ=--· . 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 names of the members attending as FOP representatives, provided however this attendance must be approved by the Chief of Police or the Chiefs designee. 2. 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 Chief of Police or the Chiefs designee. The FOP shall provide dates and times on a quarterly basis and at least 30 working days prior to the board meeting to help facilitate staff 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. ARTICLE 5. SERVlas TO THE FOP 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 hour~ 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 concerning th is 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. 3 12 AGREEMENT BETWEEN FOP AND CSM RA TIFfED BY FOP SEPTEMBER 7, 2018 Directors, the commencement date and length of their term of office, any changes made to the membership of the FOP Board of Directors and any change to a directors term of office, within 3 working days of the election or appointment to the FOP Board of Directors or any --...... -.. -.. ·-···Qlh8f..ctiai.1ji:in:.tbe:ii.if(jr.matiQ·ii:ieij·l:.i:r~eiiI~tNe:.gi.vei:i-t0~th(pGf.if~..:t4lirGe.:t-we·inemllefl5F--·· 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 names of the members attending as FOP representatives, provided however this attendance must be approved by the Chief of Police or the Chiefs designee. 2. 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 payor 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 Chief of Police or the Chiefs designee. The FOP shall provide dates and times on a quarterly basis and at least 30 working days prior to the board meeting to help facilitate staff 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. ARTICLE 5. SERVlas TO THE FOP 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 hour~ 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 concerning th is 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 artide. 3 12 80 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 5. Any action taken by the City Manager or Manager's designee concerning the solicitation of City employees for membership in a collective bargaining unit including, signing up of 1 . "----~memlie~GiilleGtie~ef.:rnitiatien~ees.-au~er~seismen~meetliies~istr-1ii~iien~t--~ -----~=f bargaining unit or affiliated bargaining unit literature or any other business activity of the bargaining unit on City time and during the working hours of City employees, or on any City property, or In Cityvehlcles or any other City property shall not be a grieveable offense. ARTICLE 6. PERSONNEL RECORDS l Employees covered by this Agreement shall have the right to inspect their official personnel file and/or their closed Internal Affairs file upon written request through their chain of command both of which shall occur during normal business hours under the supervision of the respective records custodian or the custodian's designee. Employees shall not be compensated sho.uld said inspection occur outside employee's regular duty hQurs. The employee shall have the right to have duplicate copies of any Items in their official files created for them, upon payment of the usual charge thereof. 2. Employees covered by this Agreement shall receive copies of any item that is placed in the employee's official personnel file. Employees covered by this Agreement shall also have the right to add written responses to any such item that is placed in the employee's official personnel file. All written responses to such Items shall be sent to the Chief of Police via chain of command not more than ten (10} working days following the day of receipt of such items by the employee. Written responses shall strictly parallel the item(s) of concern. Any refusal to sign any document shall be documented on all copies by the issuing officer (I.e. "Employee Refused to Sign"); however, no retaliatory or disciplinary action shall be taken against any employee who refuses to sign such a document. 3. To the _extent permitted by law, all personnel records of the employees shall be kept confidential and shall not be released to any person except; authorized officials of the City, or in response to a subpoena from a court of competent jurisdiction, or upon written authorization from the employee. In this regard, the FOP recognizes the City's obligation to comply with Chapter 119, Florida Statutes. 4. At no time shall the news media be directly furnished with the home address or home telephone number of any employee or his relatives without the express written consent of the employee. 5. The City shall purge, upon written request from the employee covered by this Agreement, all records of counseling/coaching and oral warnings from the employees' personnel files after one (1) full year of service during which the employee does not receive further counseling or 4 13 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7,2018 S. Any action taken by the City Manager or Manager's designee concerning the solicitation of City employees for membership in a collective bargaining unit including, signing up of I .c.--~~meml1e~GQlleGtiQ~ef.:rRitiatiGR~ees.-du~ar.;..:as5e5SmentsFmeetIRg5~i.liJ~tien~f.=~'· .. -~=¥ bargaining unit or affiliated bargaining unit literature or any other business activity of the bargaining unit on City time and during the working hours of City employees, or on any City property, or In City vehicles or any other City property shall not be a grieveable offense. ARTICLE 6. PERSONNEL RECORDS 1 Employees covered by this Agreement shall have the right to inspect their official personnel file and/or their closed Internal Affairs file upon written request through their chain of command both of which shall occur during normal business hours under the supervision of the respective records custodian or the custodian's designee. Employees shall not be compensated sho.uld said inspection occur outside employee's regular duty hQurs. The employee shall have the right to have duplicate copies of any Items in their official files created for them, upon payment of the usual charge thereof. 2. Employees covered by this Agreement shall receive copies of any item that is placed in the employee's official personnel file. Employees covered by this Agreement shall also have the right to add written responses to any such item that is placed in the employee's official personnel file. All written responses to such Items shall be sent to the Chief of Police via chain of command not more than ten (10) working days following the day of receipt of such items by the employee. Written responses shall strictly parallel the item(s) of concern. Any refusal to sign any document shall be documented on all copies by the issuing officer (i.e. "Employee Refused to Sign"); however, no retaliatory or diSciplinary action shall be taken against any employee who refuses to sign such a document. 3. To the .extent permitted by law, all personnel records of the employees shall be kept confidential and shall not be released to any person except; authorized officials of the City, or in response to a subpoena from a court of competent jurisdiction, or upon written authorization from the employee. In this regard, the FOP recognizes the City's obligation to comply with Chapter 119, Florida Statutes. 4. At no time shall the news media be directly furnished with the home address or home telephone number of any employee or his relatives without the express written consent of the employee. S. The City shall purge, upon written request from the employee covered by this Agreement, all records of counseling/coaching and oral warnings from the employees' personnel files after one (1) full year of service during which the employee does not receive further counseling or 4 13 81 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. ARTlaE 7. INTERNALAFFAIRS 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 a·nd 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 by the 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 ~ri~. • 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 l 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 5 14 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 I ___ " ___ "._. __ ._.=_k_~_~ __ i_~_!_!_~_a_~_"t_~_fi_~ __ ~ __ ~_~_~_~_~_!_~_~_~_~_~_!_~_._-_-.~"_"_-_-_"-~~~~~~~~~~.~ __ ~~ ARTICLE 7. INnRNAL AFFAIRS INVESnGATION AND OBUGATION TO THE PUBUC 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 a"nd protect the interests and trust of Its citizens, the parties agree that the City must have the unrestricted right to cond uct 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 ofthe circumstances by the 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. ARDeLE 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 5 I j ! I 14 82 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 authorized compensated leave. In the event bargaining unit employees have the same seniority by classification, seniority shall then be determined as set forth in paragraph 4. c. below. -• •·••--•,--•-.•-·•·-••0 --•---,.--•---••-•---.. •• H-•----•••·•••--••-•-0 ---•••---a•••• --• ·-···· ... •··•--=--=,;....,_,;,, ____________ =......,==-----=......,--==- 2. Non-probationary patrol officers and sergeants shall bid (semi-annually) for their choice of shift assignments and days off. Days off shall not be bid until shift assignments are set, including the Chiefs mandatory assignments, if any. The determining factor In said bid process shall be each employee's seniority as defined In paragraph 4. c. below. In order to meet Department operational needs, the Chief may, at his discretion, make no more than two specific assignments to each shift (during the semi-annual bid process) The Chiefs assignment of six officers in total is without regard to seniority and appealable only to the City Manager. 3. A seniority list by shift and work assignment shall be established and shall be utilized when the Department calls in, or holds over, personnel, except in emergency or unusual situations. 4. The parties understand and agree that Seniority for the purposes of this Agreement, unless otherwise stated shall be determined within each rank for employees covered by this Agreement. Additionally, notwithstanding the above, the-following shall be adhered to for purposes of determining seniority as follows: a. Seniority within Sergeant's Rank shall be determined by date of promotion to that rank. In case of ties, the same procedure outlined in paragraph c. shall be utilized. b. Seniority within a Specialized Unit shall be determined by length of assignment within that specific specialized unit (CID, Motors, K-9) and solely within that specialized unit, and such specialized unit seniority has preference and precedence over departmental seniority. In case of ties, the same procedure outlined In paragraph 4.c. shall be utilized. c. Departmental Seniority shall consist of continuous accumulated service within the Cty of South Miami Police Department. Departmental Seniority shall be computed from the date of taking the P.ollce Officer's Oath with the City of South Miami. Where two or more officers take the oath on same date, the drawing of lots shall determine which officer is senior to the other. 5. Vacancies in specialized units shall be filled by permanent employees in all cases unless no permanent employee can demonstrate the experience or the best potential to properly function in such assignment. Should no permanent employee demonstrate said capacity, probationary employees may be considered. Assignment determinations shall be made by the. chief of police based on the recommendations of a selection panel appointed by the chief and such assignment determinations are not grievable. 6. In the event of a layoff for any reason, employees shall be laid off In the inverse order of their seniority in their classification. Any employee to be laid off who has advanced to his present 6 I • I I i 15 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7,2018 authorized compensated leave. In the event bargaining unit employees have the same seniority by classification, seniority shall then be determined as set forth in paragraph 4. c. below. I • I ! -.. ~ .. --.. :--~-:.-.... -... -_._ .... __ ._--.. _-_.-...... _._---•.. -... --.. -._-. _ ..... _-_ ........ ----_ . . __ .......... --=;......-..;...-----------~~=~---~~ ....... =--==-= -........... ~=jo 2. Non-probationary patrol officers and sergeants shall bid (semi-annually) for their choice of shift assignments and days off. Days off shall not be bid until shift assignments are set, including the Chiefs mandatory assignments, if any. The determining factor In said bid process shall be each employee's seniority as defined In paragraph 4. c. below. In order to meet Department operational needs, the Chief may, at his discretion, make no more than two specific assignments to each shift (during the semi-annual bid process) The Chiefs assignment of six officers in total is without regard to seniority and appealable only to the City Manager. 3. A seniority list by shift and work assignment shall be established and shall be utilized when the Department calls in, or holds over, personnel, except in emergency or unusual situations. 4. The parties understand and agree that Seniority for the purposes of this Agreement, unless otherwise stated shall be determined within each rank for employees covered by this Agreement. Additionally, notwithstanding the above, the following shall be adhered to for purposes of determining seniority as follows: a. Seniority within Sergeant's Rank shall be determined by date of promotion to that rank. In case of ties, the same procedure outlined in paragraph c. shall be utilized. b. Seniority within a Specialized Unit shall be determined by length of assignment within that specific specialized unit (CID, Motors, K-9) and solely within that specialized unit, and such specialized unit seniority has preference and precedence over departmental seniority. In case of ties, the same procedure outlined In paragraph 4.c. shall be utilized. c. Departmental Seniority shall consist of continuous accumulated service within the ety of South Miami Police Department. Departmental Seniority shall be computed from the date of taking the P.ollce Officer's Oath with the Clty of South Miami. Where two or more officers take the oath on same date, the drawing of lots shall determine which officer Is senior to the other. 5. Vacancies in specialized units shall be filled by permanent employees in all cases unless no permanent employee can demonstrate the experience or the best potential to properly function in such assignment. Should no permanent employee demonstrate said capacity, probationary employees may be considered. Assignment determinations shall be made by the. chief of police based on the recommendations of a selection panel appointed by the chief and such assignment determinations are not grievable. 6. In the event of a layoff for any reason, employees shall be laid off in the inverse order of their seniority in their classification. Any employee to be laid off who has advanced to his present 6 15 83 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 classlflcatlon 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 . _ , .. .......::.:.Jiiw.er-classificaticif..sllall.~ablisl:led.:aGGGi"dfilg..oo'.:ti;;e:-l:la~af=the=empfoyee?.s~pei:mar.ient-•--, ···· 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: a. 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 of this Article and shall not apply if the vacancy is filled within one (1} month of the next shift/days off picked. 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: • Santa's Elves Parade • Fourth of July • Martin Luther King Parade • Safe Streets Halloween lO. The chief retains the right to transfer employees from shift to shift to meet arising operational 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 •.~1ill eRl•1 shall only be applicable during the first 7 16 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 . _, .. --=.Jil-Wer_Class[fiCaficif..sllall.!ie:eStablisl:led.:aGGGidfilg..oo'.:tI;1e;IiIa~af~the:emprQye~~pe;;maAent-.. -' .... 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: a. 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-biddlng provision also does not apply should the Chief of Police approve an exchange of shifts as provided for in paragraph 6 of this Article and shall not apply if the vacancy is filled within one {1} month of the next shift/days off picked. 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: • Santa's Elves Parade • Fourth of July • Martin luther King Parade • Safe Streets Halloween .10. The chief retains the right to transfer employees from shift to shift to meet arising operational 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 '1.I iII oRI'1 shall only be applicable during the first 7 --... -.~ i I 16 84 AGREEMENT BElWEEN FOP AND CSM · RATIFIED BY FOP SEPTEMBER 7, 2018 thirty days of each semiannual shift change. Shift transfers are appealable via the chain of command to the chief of police. Denial of a shift transfer appeal shall be given in writing with the specific departmental needs identified. Bar:gaiRiRg YRit eFRple>,tees R=tay eKeFcise aR appeaLto;fl!le.e,&,maaager; •NftAiR=§-i:fai;s,-IR •.wit1rtg,,iaeRtlfylRg thelF EOACeFRs.,Sua/:1.tr,ansfer:s.,_,_ are not grievable to the city manager. ARTICLE 9. VEHICLES AND SAFETY EQUIPMENT 1 The City will make a good-faith and energetic effort to maintain Police veh ides and safety equipment in proper working order. Police vehicles operated by the City shall comply with the standards and requirements of applicable Florida State Statutes governing motor vehicle safety equipment. Employees will, as soon as possible, report any broken and/or malfunctioning equipment to their Supervisor, but no later than the end of their shift.• Employees shall keep the vehicles cleaned and fully fueled at the start of their shift. It is the responsibility of Officers with assigned take-home vehicles to promptly deliver their vehicle to the Motor Pool or dealership as appropriate, when repairs are necessary or for scheduled preventative maintenance. 2. The City shall, insofar as possible, equip its marked patrol vehicles with the appropriate lights, siren, first-aid kit, emergency road flares, yellow crime scene tape and fire extinguishers. 3. The City shall furnish riot gear (torso, shoulder, leg and knee, forearm, and gloves) and helmets, riot shields (if applicable) and gas masks Individually to all uniformed Officers and Sergeants as necessary. The City shall furnish one flashlight and firearm (of the design approved by the Chief of Police) along with the appropriate amount of ammunition for the authorized and issued firearm to each sworn Law Enforcement Officer covered under this Agreement. 4. Employees agree to be bound by and abide by the Take Home/Assigned Vehicle Policy, as may be revised by the Chief of Police from time to time. The City shall provide the FOP with two (2} weeks advance notice of any modifications to the aforesaid Take-Home Vehicle Policy which become effective after the ratification of this Agreement. 5. Upon ratification of this Agreement, sworn Law Enforcement Officers covered under this Agreement shall be responsible for the timely changing of motor oil and vehicle filters which shall be done at the City of South Miami Motor Pool Publl,c Works Department. Failure to do so on a timely basis will be a violation of this Agreement and the subject of potential disciplinary action. Employees having a take home vehicle shall pay the City twenty five dollars for each scheduled oil change. Employees will not be compensated for any time incurred with a scheduled oil changes and/or maintenance conducted while the employee is off-duty. 8 17 AGREEMENT BElWEEN FOP AND CSM . RATIFIED BY FOP SEPTEMBER 7, 2018 thirty days of each semiannual shift change. Shift transfers are appealable via the chain of command to the chief of police. Denial of a shift transfer appeal shall be given in writing with the specific departmental needs identified. BaFgaiRiRg YRit eFRI3IE~',tees R=lay eKeFeise aR .. a-jipill:t91l;lii£le,uBaaagei·'MfAili§jiays;IRl.wififig;;jQeFitfijlFijJ¥hei"F-eoi=lcerRs-.,;;si.uill.tr.ansfer:s·,-,- are not grievable to the city manager. ARTICLE 9. VEHICLES AND SAFETY EQUIPMENT 1. The City will make a good-faith and energetic effort to maintain Police veh icles and safety equipment in proper working order. Pollee vehicles operated by the City shall comply with the standards and requirements of applicable Florida State Statutes governing motor vehicle safety equipment. Employees will, as soon as possible, report any broken and/or malfunctioning equipment to their Supervisor, but no later than the end of their shift.· Employees shall keep the vehicles cleaned and fully fueled at the start of their shift. It is the responsibility of Officers with assigned take-home vehicles to promptly deliver their vehicle to the Motor Pool or dealership as appropriate, when repairs are necessary or for scheduled preventative maintenance. 2. The City shall, insofar as possible, equip its marked patrol vehicles with the appropriate lights, siren, first-aid kit, emergency road flares, yellow crime scene tape and fire extinguishers. 3. The City shall furnish riot gear (torso, shoulder, leg and knee, forearm, and gloves) and helmets, riot shields (if applicable) and gas masks Individually to all uniformed Officers and Sergeants as necessary. The City shall furnish one flashlight and firearm (of the design approved by the Chief of Police) along with the appropriate amount of ammunition for the authorized and issued firearm to each sworn Law Enforcement Officer covered under this Agreement. 4. Employees agree to be bound by and abide by the Take Home/Assigned Vehicle Policy, as may be revised by the Chief of Police from time to time. The City shall provide the FOP with two (2) weeks advance notice of any modifications to the aforesaid Take-Home Vehicle Policy which become effective after the ratification of this Agreement. 5. Upon ratification of this Agreement, sworn law Enforcement Officers covered under this Agreement shall be responsible for the timely changing of motor oil and vehicle filters which shall be done at the City of South Miami Motor Pool Publi,c Works Department-Failure to do SO on a timely basis will be a violation of this Agreement and the subject of potential disciplinary action. Employees having a take home vehicle shall pay the City twenty five dollars for each scheduled oil change. Employees will not be compensated for any time incurred with a scheduled oil changes and/or maintenance conducted while the employee is off-duty. 8 17 85 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 6. The bargaining unit member must submit a copy of the receipt detailing the vehicle license pf ate 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 . ... ..:..::.ta•Laijiilninj:tJAii-meml,ef.mu~etain~-oopyrat-theiecef pt-ftlrij;efioiof-tilree·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 Cty will list the areas which the examinations wlll 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 promoti(!nal 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 Cty 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 ~he training is within four (4) hours of the end of their tour of duty for that work week. 9 18 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 Q The bargaining unit member must submit a copy of the receipt detailing the vehicle license prate 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 . ..... :.::;;E-aG~bafgaIR .. n-itJflit!-memj,er.mt:ist~retain~a~ee-py'ef-theiecefpt1oF8~pefio&Ottiifee'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 promoti~nal 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. 9 , •• p~ I t 18 86 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 2 The City will provide each employee a copy of training bulletins. Additionally, the City will promptly post in a prominent plac~ and/or disseminate via email, City training bulletins as well as approved training advertisements. 3. The City agrees to pay for certain courses. The City agrees to provide at least forty (40) hours of training every four years to meet Florida statutory certification requ I rements. The City may provide additional training at its discretion. • 4. The City shall have the right to change or alter work when scheduling training. To the extent practicable, the City shall give forty-eight (48) hour-notice to employees of such off-duty training. 5. The City shall provide weapons training for all employees at least once annually. This training is in addition to the training provided under paragraph 3. Upon qualification and a demonstration of proficiency, employees shall be permitted to carry, on duty, semiautomatic weapons which have been approved by the Department in accordance with Article 30. The Department will make every reasonable effort to facilitate the attendance at the firearm range during an employee's normal working hours. In the event the Department is unable to schedule the employee to attend. the firing range during his normal working hours, the employee may be required to attend the firing range during his off-duty hours. The City agrees to provide ammunition for firearms training. ARTICLE 12. GRIEVANCE AND ARBITRATION PROCEDURE 1. In a mutual effort to provide a harmonious working relationship between the parties to this Agreement, it is agreed and understood that there shall be a procedure for the resolution of grievances between the parties. For the purpose of this Article, a grievance is defined as, any dispute, difference or controversy involving the interpretation and application of this Agreement. 2. calendar Days is defined as any day of the week lnduding Saturday and Sunday and holidays. l Working Days is defined as any business day Monday through Friday and excludes Saturday and Sundays and holidays. 4. Every effort will be made by the parties to settle any grievance as expeditiously as possible. Should the grieving party fail to observe the time limits as set out in the steps of the applicable Article, the grievance shall be considered conclusively abandoned. Any grievance not timely responded to by management within the prescribed time limits shall automatically advance to the next higher step. 5. Grievances shall be presented in the following manner: 10 7 . I I I 19 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 2 The City will provide each employee a copy of training bulletins. Additionally, the City will promptly post in a prominent plac~ and/or disseminate via email, City training bulletins as well as approved training advertisements. 3. The City agrees to pay for certain courses. The City agrees to provide at least forty (40) hours of training every four years to meet Florida statutory certification requ I rements. The City may provide additional fralning at its discretion .. 4. The City shall have the right to change or alter work when scheduling training. To the extent practicable, the City shall give forty-eight (48) hour-notice to employees of such off-duty training. S. The City shall provide weapons training for all employees at least once annually. This training is in addition to the training provided under paragraph 3. Upon qualification and a demonstration of proficiency, employees shall be permitted to carry, on duty, semiautomatic weapons which have been approved by the Department in accordance with Articie 30. The Department will make every reasonable effort to facilitate the attendance at the firearm range during an employee's normal working hours. In the event the Department is unable to schedule the employee to attend. the firing range during his normal working hours, the employee may be required to attend the firing range during his off-duty hours. The City agrees to provide ammunition for firearms training. ARTICLE 12. GRIEVANCE AND ARBITRATION PROCEDURE 1. In a mutual effort to provide a harmonious working relationship between the parties to this Agreement, it Is agreed and understood that there shall be a procedure for the resolution of grievances between the parties. For the purpose of this Article, a grievance is defined as, any dispute, difference or controversy involving the interpretation and application of this Agreement. 2. calendar Days is defined as any day of the week Induding Saturday and Sunday and holidays. 1 Working Days is defined as any business day Monday through Friday and excludes Saturday and Sundays and holidays. 4. Every effort will be made by the parties to settle any grievance as expeditiously as possible. Should the grieving party fail to observe the time limits as set out in the steps of the applicable Article, the grievance shall be considered conduslvely abandoned. Any grievance not timely responded to by management within the prescribed time limits shall automatically advance to the next higher step. S. Grievances shall be presented in the following manner: 10 l . I I I 19 87 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} ... -~,:;,__ -.:~ :_ ~wn1Gfi~gav.e~·f.Tse:fa:.:me:g~ieva-RGe-;:er:m.tJ:ie::em 13rovee.-4s::0n.;;autfier.faei:1:1aav~aur-Ing=that .... 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 (bt shall complete a second grievance transmittal form within five (5) days of the meeting noting the nature of the grievance 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 be taken up with the Chief of Police, or the Chiefs 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 Chiefs designee, within seven (7) working days after the completion of ~tep 2. The Chief of Police, or the Chiefs 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 11 20 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} ""~,~--,:~:-~wlilGfi~gav.e~'f.Tse:ta:';tl~e:g~ieva-R€e-;:er:jf;.The::6mproyee..45::eFi,;;auther.-Ized:leav~aur.lng=that·"" 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 an d it shall note natu re 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 (bt shall complete a second grievance transmittal form within five (5) days of the meeting noting the nature of the grievance 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 (lO) 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 be taken up with the Chief of Police, or the Chiefs 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 Chiefs designee, within seven (7) working days after the completion of ~tep 2. The Chief of Police, or the Chiefs 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 Chief's 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 11 20 88 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 the Chiefs designee, be reversed or modified (0 Notice of Appeal"). The Oty Manager, or the Manager's designee, shall meet with the employee and/or the FOP representative within seven (7) working days of receipt of the Notice of Appeal. The City Manager, or the --··=· ··--Ma11ater'..s.aes1ga1.e.,.stiall;.w.1tf.iiiiliffaa~gf.kinjitays.of."ffi-e.r.eGeipt..gf.tr1e:Natic;e-of, ... Appeal (or such longer period ot" time as is mutually agreed upon) render a decision in writing and deliver a copy to the FOP and the grievant. 6. Where a grievance Is general In nature, In that It applies to a number of employees rather than a single employee ("Class Grievance"), or if the grievance is directly between the FOP and the Department or the City ("FOP Grievance0 ), such grievance shall be presented in writing directly to the Chief of Police within ten (10) working days of the occurrence of the event(s) that gave rise to the grievance. The Class Grievance shall be signed by the aggrieved employees and the Representative of the FOP. Thereafter, the grievance shall be processed in accordance with the procedures set forth in Step 3 and Step 4. 7. If the grievance involves discharge, suspension or demotion of the employee, such grievance shall be flied at Step 4 within ten (10) calendar days from the date that the employee receives the "Final Discipline Notice". The Final Discipline Notice Is the disciplinary report or memorandum signed by the Chief of Police or the Chief's designee, containing his recommendation for disciplinary action against the employee. & Coaching and counseling shall be flied at the appropriate Initiation level and shall only be grieveable up to Step 3 of the Grievance Procedure. Written reprimands shall be flied at the appropriate.initiation level and shall only be grelvable to Step 4 of the Grievance Procedure. Tf1erefore, such action shall not be the subject of arbitration. Satisfactory evaluations are not grieveable and, therefore, they shall not be the subject of arbitration; however, the employee may forward his or her comments regarding such evaluation through the chain of command prior to the Reviewer's finalization-of the evaluation. In addition, matters relating to the assignment, hiring, promotion, or demotion of probationary employees, as well as any decision by the City Manager on any matter not involving loss of pay shall be final and binding and not be the subject of any arbitration. 9. In the event that a grievance that has advanced to Step 4 has not been resolved, the grievant may demand arbitration of the grievance, If It Is arbltral. The demand for arbitration shall be delivered to the City Manager within fifteen (15} working days after the City Manager, or the Manager's deslgnee, renders a written decision on the grievance. All other matters not deemed grievable or arbitral or other matters that have been deemed by this Agreement to not be the subject of arbitration, including those relating to the assignment, hiring, promotion, or demotion of probationary employees, as well as any decision by the City Manager on any matter of disclpllne_not involving loss of pay shall be final and binding and not be the subject of any arbitration The parties shall attempt to mutually select an Impartial arbitrator within seven (7) calendar days after a demand for arbitration has been made pursuant to this Artide. The arbitrator shall be any Impartial person mutually agreed upon by and between the parties. However, in the event the parties are unable to agree upon said 12 21 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 the Chiefs designee, be reversed or modified ("Notice of Appear). The City Manager, or the Manager's designee, shall meet with the employee and/or the FOP representative within seven (7) worldng days of receipt of the Notice of Appeal. The City Manager, or the _"",,""=" "-d-Mil'laiif'..s.:aeslgt\I.e.,.stia";.\iiitf.iiiiliff88~gr.kinjita¥5.Qf.l&-e.r.eGSlpt-.Qf.ll1e:NaiiGe-of, .. · Appeal (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. 6. Where a grievance Is general In nature, In that It applies to a number of employees rather than a single employee (ItClass Grievance"), or if the grievance is directly between the FOP and the Department or the City ("FOP Grievance"), such grievance shall be presented in writing directly to the Chief of Police within ten (10) working days of the occurrence of the event(s) that gave rise to the grievance. The Class Grievance shall be signed by the aggrieved employees and the Representative of the FOP. Thereafter, the grievance shall be processed in accordance with the procedures set forth in Step 3 and Step 4. 7. If the grievance involves discharge, suspension or demotion of the employee, such grievance shall be filed at Step 4 within ten (10) calendar days from the date that the employee receives the "Final Discipline Notice". The Final Discipline Notice Is the disciplinary report or memorandum signed by the Chief of Police or the Chief's designee, containing his recommendation for disciplinary action against the employee. & COaching and counseling shall be filed at the appropriate Initiation level and shall only be grieveable up to Step 3 of the Grievance Procedure. Written reprimands shall be flied at the appropriate.initiation level and shall only be grelvable to Step 4 of the Grievance Procedure. l11erefore, such action shall not be the subject of arbitration. Satisfactory evaluations are not grieveable and, therefore, they shall not be the subject of arbitration; however, the employee may forward his or her comments regarding such evaluation through the chain of command prior to the Reviewer's finalization" of the evaluation. In addition, matters relating to the assignment, hiring, promotion, or demotion of probationary employees, as well as any decision by the City Manager on any matter not involving loss of pay shall be final and binding and not be the subject of any arbitration. 9. In the event that a grievance that has advanced to Step 4 has not been resolved, the grievant may demand arbitration of the grievance, If It Is arbitral. The demand for arbitration shall be delivered to the City Manager within fifteen (is} working days after the City Manager, or the Manager's designee, renders a written decision on the grievance. All other matters not deemed grievable or arbitral or other matters that have been deemed by this Agreement to not be the subject of arbitration, including those relating to the assignment, hiring, promotion, or demotion of probationary employees, as well as any decision by the City Manager on any matter of discipline_not involving loss of pay shall be final and binding and not be the subject of any arbitration The parties shall attempt to mutually select an Impartial arbitrator within seven (7) calendar days after a demand for arbitration has been made pursuant to this Artlde. The arbitrator shall be any impartial person mutually agreed upon by and between the parties. However, in the event the parties are unable to agree upon said 12 i ~ I I 21 89 AGREEMENT BElWEEN 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 ... ,-~~i~-:;ih~;:;.~:aii~~::~t~:;=te!~;~:~!!:}:~::~a~~~~:i;~1~:;J~:::~:a~t .. ~l 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 arpitrated 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 13 22 AGREEMENT BElWEEN 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 ... ,.~~:~-::ih~;:;'~:a1~~::~t~~~=:e!~;~~~!:~~~~::~a~~~~~i;~1~:;J~:::~~a~~ .. ~l 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 dose 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 arpitrated 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. U 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. HOUDAYS 1. The follOWing paid holidays shall be granted under the following conditions: i. January 1 New Yea"'s Day Ii. 3rd Monday of January Martin luther King's Birthday 13 22 90 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 iii. 3rd Monday of February President's Day iv. 4th Monday of May Memorial Day v. July 4 Independence Day vi. 1st Monday of September Labor Day vii. Columbus Day viii. November 9 Veteran's Day ix. Last Thursday in November Thanksgiving Day x. Friday after Thanksgiving xi. December 24 Christmas Eve xii. December 25 Christmas Day 2. When a holiday falls on the regularly assigned day off for an employee, such employee shall receive, at the employee's option, an additional day's pay at their straight-time rate of pay, or compensatory time at their straight-time rate of pay. 3. Birthday and two floating holidays will be credited to the employee after 1 year of continuous service and shall only be taken as leave time. 4. Upon rattfication of this Agreement, holidays will be observed on the actual day it falls on. ARTICLE 14. SICK LEAVE 1. Sick leave shall be granted to employees for absence for the following conditions: (a) Personal illness or physical disability resulting in the incapacity of the employee to perform the regular duties of his position and not arising from a service-connected injury or accident. (b) Medical, dental or optical treatments and examinations. (c) Personal illness or physical disability resulting in the Incapacity of the employee to perform the usual duties of his position and arising from a service- 14 23 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 iii. 3rd Monday of February President's Day iv. 4th Monday of May Memorial Day v. July 4 Independence Day vi. 1st Monday of September Labor Day vii. Columbus Day viii. November 9 Veteran's Day ix. last Thursday in November Thanksgiving Day x. Friday after Thanksgiving xi. December 24 Christmas Eve xii. December 25 Christmas Day 2. When a holiday falls on the regularly assigned day off for an employee, such employee shall receive, at the employee's option, an additional day's pay at their straight-time rate of pay, or compensatory time at their straight-time rate of pay. 3. Birthday and two floating holidays will be credited to the employee after 1 year of continuous service and shall only be taken as leave time. 4. Upon ratification ofthls Agreement, holidays will be observed on the actual day it fallson. ARTICLE 14. SICK LEAVE 1. Sick leave shall be granted to employees for absence for the following conditions: (a) Personal illness or physical disability resulting in the incapacity of the employee to perform the regular duties of his position and not arising from a service-connected injury or accident. (b) Medical, dental or optical treatments and examinations. (c) Personal illness or physical disability resulting In the incapacity of the employee to perform the usual duties of his position and arising from a service- 14 23 91 AGREEMENT BElWEEN FOP AND CSM RA TIFlED 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 __ l~~v~ l~ __ t_~i~ ~~~n~~ sh~II _b~ a~-~~! ei:n_Plo~~e~s-r~q~est and i~ ~-o~ m~nd~.tory. (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. Side leave may be 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 Oty 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 leave 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 ofabsence on sick leave in excess of three (3) working days and in casesofabsence 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 15 24 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 connected injury or acddent, but only after all available disability benefits offered under Workmen's Compensation are exhausted, provided further that use of sick _ .I~~v~ i~ .. t.~i~ ~~~n~~ sh~lI.b~ a~.~~~ e':'1!lo~~e~s. r~q~est and i~ ~.o~ m~nd~.tory. (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. Side leave may be 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 aty 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 leave 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 ctty 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 ofabsence on sick leave in excess of three (3) working days and in casesofabsence on sick leave for any period less than three (3) working days when the Personnel Manager or Chief of Police, or the Chiefs designee, ("Department Head") shall so direct, the written request for sick leave shall be accompanied by a certificate signed by the physidan 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 15 I I l -:~r' I ! I i 24 92 AGREEMENT BE"TWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 issue additional directives not to exceed twelve weeks in duration, in their disaetion with the approval of the City Manager. The issuance of all such directives may be appealed to the City Manager. Failure to furnish such a medical certificate for absences in excess of three (3) .. ·=-~Woikaa.y5;-0r="fr:ir~r:i~absentie:wtien::Sa·~1.eeteEl•by~e:-aepartment~Heed"OrPersonnetaffice; •• • - shall result in the absence being charged to the employee's vacation leave. 9. The parties agree that the Oty may take any steps it deems appropriate to strictly administer and enforce the aty sick leave policy in such a manner as to eliminate abuse of sick leave privilege. 10. In the event an employee is killed in the line of duty, or by natural causes, his heirs shall receive one-hundred percent (100%) of his accumulated sick leave time. 11. It is further understood and agreed that all issues pertaining to sick leave usage shall be governed by City of South Miami Sick Leave Policy ARTICLE 15. BEREAVEMENT LEAVE 1. Employees covered by this Agreement after providing adequate notice concerning the death of an immediate family member shall be entitled to bereavement leave with pay up to a maximum of four (4) workdays in the event of such death. 2. Two 13ddltional days of leave may be granted if travel in excess of 250 miles one way is necessary. 3. The phrase "immediate family" shall be defined as the employee's spouse, grandparents, parents, stepparents, children, stepchildren, grandchildren, brothers, stepbrothers, sisters, stepsisters, father-in-law, mother-in-law, brother-in-law, sister-in-law, and domestic partner. 4. Proof of death in the immediate family in the form of death certificate or public obituary must be provided to the City Manager, or the Manager's designee, before compensation is approved. 5. Bereavement leave shall not be charged to sick leave or annual leave. 6. Should an employee require more bereavement leave in excess of the allotted time, he may request additional time not to exceed ten (10) days. Such requests must be submitted at least five (5) days prior to the start of the requested leave and be pre-approved by the Chief of Police, or the Chief's designee. Moreover, the employee requesting such additional leave must have at least ten (10) days in either his vacation or compensatory leave banks, from which the requested time will be deducted. 16 25 AGREEMENT BE"TWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 issue additional directives not to exceed twelve weeks in duration, in their discretion with the approval of the City Manager. The issuance of all such directIves may be appealed to the City Manager. Failure to furnish such a medical certificate for absences in excess of three (3) ... =-~WQif(Ga.ys;-or=lar;ar:i~abieAGe:wtieA::sa·~IPeeteEl·by~e:-aepartment~Head.QrpersOnnetaffice~ ... - shall result in the absence being charged to the employee's vacation leave. 9. The parties agree that the ety may take any steps it deems appropriate to strictly administer and enforce the ety sick leave policy in such a manner as to eliminate abuse of sick leave privilege. 10. In the event an employee is killed in the line of duty, or by natural causes, his heirs shall receive one-hundred percent (100%) of his accumulated sick leave time. 11. It is further understood and agreed that all issues pertaining to sick leave usage shall be governed by City of South Miami Sick Leave Policy ARTICLE 15. BEREAVEMENT LEAVE 1. Employees covered by this Agreement after providing adequate notice concerning the death of an immediate family member shall be entitled to bereavement leave with pay up to a maximum of four (4) workdays in the event of such death. 2. Two ltddltional days of leave may be granted if travel in excess of 250 miles one way is necessary. 3. The phrase "immediate family" shall be defined as the employee's spouse, grandparents, parents, stepparents, children, stepchildren, grandchildren, brothers, stepbrothers, sisters, stepsisters, father-in-law, mother-in-law, brother-in-law, sister-In-law, and domestic partner. 4. Proof of death in the immediate family in the form of death certificate or public obituary must be provided to the City Manager, or the Manager's deSignee, before compensation is approved. 5. Bereavement leave shall not be charged to sick leave or annual leave. 6. Should an employee require more bereavement leave in excess of the allotted time, he may request additional time not to exceed ten (10) days. Such requests must be submitted at least five (5) days prior to the start of the requested leave and be pre-approved by the Chief of Police, or the Chief's designee. Moreover, the employee requesting such additional leave must have at least ten (10) days in either his vacation or compensatory leave banks, from which the requested time will be deducted. 16 ! i I i I I I -~ i 25 93 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ARTICLE 16. LEAVE OF ABSENCE l Leave without pay and without benefits may be 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. 2 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 (~) 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 1. 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 ttie year in which It Is earned. Under exceptional circumstances and upon written request 17 26 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ARTICLE 16. LEAVE OF ABSENCE 1 leave without pay and without benefits may be 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. 2 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 (~) 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 1. 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 17 26 94 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 within the year in which the vacation leave is earned, such time may be used up to 30 calendar days past the employee's anniversary date with the written approval of the City Manager. . - (iii) Vacation leave may be taken to the extent that it is earned by the employee, subject to the prior approval of the Chief of Police, upon written application by the employee In advance, and at the convenience of the City. (iv) Any earned and credited vacation leave to the credit of an employee in good standing when he terminates his employment with the City will be paid prorated at the employee's current rate of pay with the last paycheck received. ARTICLE 18. EXTRA-DUTY POLICE EMPLOYMENT Employees agree to be bound by and abide by the Extra-Duty Police Employment policy as developed by the Chief of Police. The City shall provide the FOP with two (2) weeks advance notice of any modifications to the aforesaid Extra-Duty Police Employment policy which becomes effective after the ratification of this Agreement. ARTICLE 19. INSURANCE BENEFITS The City agrees to pay for HMO health insurance for all employees covered by this Agreement. Employees wanting the optional POS or PPO health insurance will pay the difference between the HMO plan and the optional plan chosen. The City will attempt to continue the current levels of coverage for dental, life and disability insurance. The employee agrees to pay for 100% of dependent coverage for health and dental insurance. ARTICLE 20. HOURS OF WORK AND OVERTIME 1 Forty (40) hours shall constitute a normal workweek for an employee covered by this Agreement. Nothing herein shall guarantee any employee payment for a forty (40) hour workweek unless the employee actually works forty (40) hours. Actual hours worked shall not include hours when work is not done such as during time off for sick leave, birthday, holiday, floating holiday, or vacation leave, whether or not any of this time is pre-approved. 18 27 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 within the year in which the vacation leave is earned, such time may be used up to 30 calendar days past the employee's anniversary date with the written approval of the City Manager. .. - ,~--~.~-----~~, -~-,--~-~-..=~~ ... -. .,.~-.... ---:,.--.. -" ,-. -, -.. ;-.... --~":'-"" (iii) Vacation leave may be taken to the extent that it is earned by the employee, subject to the prior approval of the Chief of Police, upon written application by the employee In advance, and at the convenience of the City. (iv) Any earned and credited vacation leave to the credit of an employee in good standing when he terminates his employment with the City will be paid prorated at the employee's current rate of pay with the last paycheck received. ARTICLE 18. EXTRA-DUTY POLICE EMPLOYMENT Employees agree to be bound by and abide by the Extra-Duty Police Employment policy as developed by the Chief of Police. The City shall provide the FOP with two (2) weeks advance notice of any modifications to the aforesaid Extra-Duty Pollee Employment policy which becomes effective after the ratification of this Agreement. ARTICLE 19. INSURANCE BENEFITS The City agrees to pay for HMO health insurance for all employees covered by this Agreement. Employees wanting the optional POS or PPO health insurance will pay the difference between the HMO plan and the optional plan chosen. The City will attempt to continue the current levels of coverage for dental, life and disability insurance. The employee agrees to pay for 100% of dependent coverage for health and dental insurance. ARTICLE 20. HOURS OF WORK AND OVERTIME 1 Forty (40) hours shall constitute a normal workweek for an employee covered by this Agreement. Nothing herein shall guarantee any employee payment for a forty (40) hour workweek unless the employee actually works forty (40) hours. Actual hours worked shall not include hours when work is not done such as during time off for sick leave, birthday, holiday, floating holiday, or vacation leave, whether or not any of this time is pre-approved. 18 27 95 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 ~l:ioi.ir.s.if.l.a.;wor.lailteek...All~avallable.·overtime..shall,be-offereeit.tci.bar-gaining,.1:1nit~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 participat~ in authorized special events for the Qty, 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. 6. 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 19 28 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 ~l:ioi.ir.SJi.i.a.;woi:1(Week...AI'~avallable"Qvertime..shal,.be-offef,eit.tci.bar:gaining..l:lnit~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 (4O) 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 participat~ in authorized special events for the Oty, 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. S. 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. 6. 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 19 28 96 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 to reduce the number of overt ime, court time, or call-out hours worked by the employee covered by this Agreement. -.a :....=I.be_D:epa.ctroerftr.esetVessthiW gh t.toJnstitute~any-procedlir.e,or:.system .it..deems ,appr.opriate . to measure, record and/or verify attendance at and duration off-duty court appearances . Strict compliance with any procedure or system so instituted by the Department shall be a condition precedent to obtaini ng compensation for an off-duty court appearance under Paragraph 3 above . 9. 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 rates regardless of actual hours worked during t hat pay period. lQ Compensatory time shall be administered in accordance with the following guidelines: (a) Compensatory leave ma y be accrued to a maximum of two hundred forty (240) hours. Certain current employees, who have an accrual in excess of the current cap, will be "grandfathered" to allow them to retain their accrued balance. However, such employees shall not be eligible for accrual of any additional compensatory leave until their balance falls below the 240 hour cap and at that time their accrual cap becomes 240 hours . (b) Compensatory leave may be taken in unlimited blocks of time, provided operational needs have been met, as determined and approved by the Chief of Police . (c) Compensatory leave sh all be requested in writing at least one (1) week prior to the effective date of r eque sted leave or the one (1) week time frame is agreed to and waived by the Chief of Police or the Chief's des ignee. Approval or disapproval shall be made within 3 busine ss days after the request is submitted . Under exceptional circumstances and as approved by the Ch ief of Police, the time limits for request of compensatory leave m ay be waived . (d) Once approved, compensatory leave will not be cance led by the Department unless warranted by an emerge ncy situation, as determined by the Chief of Police, exists. 11 T he Chief of Po lice will cond uct a straw poll of al l Sergeants and Officers to proceed in adopting a 10 and/or 12 hour shift. If the majority of Sergeants and Officers who participated in the poll agree to adopt a 10 and/or 12 hour sh ift, the Chief of Police or designee will prepare and present a Memorandum of Understand ing (MOU) within 30 days of said polling affirming such approval. The Chief of Police reserves the right to adopt 8, 10 and 12 hour shifts for different Divisions and/or assi gnments. ARTICLE 2 1. MANAGEMENT RIGHTS 20 29 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7,2018 to reduce the number of overt im e, court time, or call-out hours worked by the employee covered by this Agreement. -.a,~.=Ib~_D~e.par;trnerft r.es .erV es~thiH i ght.t6 ,jnstitute~any,procedlir:e ,or..sys tem ,it..deems ,appr.opriate . to measure, record and/or verify attendance at and duration off-duty court appearances . Strict compliance with any procedure or system so instituted by the Department shall be a condition precedent to obtaini ng compensation for an off-du t y court appearance under Parag r aph 3 above. 9. 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 rates regardless of actual hours worked during th at pay period. 10. Compensatory time shall be ad m inistered in accordance with the following gUidelines: (a) Compensatory leave m ay be accrued to a maximum of two hundred forty (240) hours. Certain current employee s, who have an accrual in excess of the current cap, will be "grandfathered" to all ow them to retain their accrued balance. However, such employees shall not be eligibl e for accrua l of any additional compensa t ory leave until their balance falls belo w the 240 hour cap and at that time their accrual cap becomes 240 hours . (b) Compensatory leave m ay be taken in unlimited blocks of t ime, provided operational needs have been met, as determined and approved by the Chief of Police . (c) Compensatory leave sh all be requested in writing at least one (1) week prior to t he effective date of r eque sted leave or the one (1) week t ime frame is agreed to and waived by t he Ch ief o f Po lice o r the Chief's des ignee . Approval or disapproval shall be made within 3 business days after the request is submitted . Under exceptional circumstances and as approved by the Ch ief of Police, the time limits for request of compensatory leave m ay be waived . (d) Once approved, comp en satory leave will not be cance led by the Department unless warranted by an emerge ncy situation, as determined by the Chie f of Police, exists. 11 T he Chief of Police will co nd uct a st raw poll of al l Sergeants and Officers to proceed in adopting a 10 and/or 12 hour sh ift. If the majority of Sergeants and Officers who participated in the poll agree to adop t a 10 and/or 12 hour sh ift, t he Chie f of Police or deSignee will prepare and presen t a Memorandum of Understand ing (MaUl within 30 days of said polling affirming such approval. The Chief of Police reserves the right to adopt 8, 10 and 12 hour shifts for different Divisio·ns and/or assi gnments. ARTICLE 21. MANAGEMENT RIGHTS 20 I i I I i j ~ ..~ .. -~ I , 29 97 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 aU of Its operations and when these rights are exercised they shall not be the subject of any ---~gcie.varic~iioofdinglv,;--t-he--Gify.:.speoifieallyrbut-not-by-way~of-timitation;--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 qualificatlons 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 I i ' 30 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 aU of Its operations and when these rights are exercised they shall not be the subject of any ---~grie.varice.;,.AGGoFdingly.,--t.Jie··GitY,:,speGifjeanyrblJt-not'-by-way~oHimitation;--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; h. 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 20i 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; J. 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 I i , 30 98 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 p. Schedule and assign the work to the employees and to determine the size and composition of the work force; ··-~.--~-q,~Determine.::.:.t1:ie.::.sewlces-to-b~pravided-ta--,the-publi~and-the.-maint-enance;· · procedures, materials, facilities, and equipment to be used, and to introduce new or improved services, maintenance procedures, materials, facilities and equipment; r. Take whatever action may be necessary to carry out the mission and responsibilities of the City in emergency situations; s. Formulate, amend, revise and implement policy, programs, rules and regulations; t. Have complete authority to exercise those rights and powers that are incidental to the rights and powers enumerated above, including the right to make unilateral changes, 2 The aboye rights of the City are not meant to be all-inclusive, but are meant as illustrations, which indicate the type of matters, or rights, which belong to and are inherent in the Oty as the employer. Any of the rights, powers, and authority the City had prior to entering their collective bargaining Agreement are retained by the City, except as specifically abridged, delegated, granted or modified by this Agreement. 3. If the City fails to exercise any one or more of the above functions from time to time, this will not be deemed a waiver of the City's right to exercise any or all of such functions. ARTICLE 22, WORK STOPPAGES 1. The FOP agrees that, under no circumstances, shall there be any work stoppage, strike, improper political activity, sympathy strike, safety strike, jurisdictional dispute, walkout, sit- down, stay-in, sick-out or any other concerted failure or refusal to perform assigned work for any reason whatsoever, or picketing in the furtherance of any of the above-prohibited activities, nor shall any bargaining unit personnel refuse to cross any picket line at any location, whether the picketing is being done by the FOP or any other employee organization or union. 2. The FOP agrees that the City shall retain the right to discharge or otherwise discipline one, some, or all of the employees participating in or promoting any of the activities enumerated in paragraph 1 above, the exercise of such rights by the City will not be subject to recourse under the grievance/arbitration process. 3. It is recognized by the parties that the improper activities enumerated in paragraphs I and 2 22 31 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 p. Schedule and assign the work to the employees and to determine the size and composition of the work force; .. -~-~-q ....... Deter.miile;,;.the,::,ser:ViGes-ta.-be41i:9vided-te-the-;publi&-and--the.-maint-enanee;-· procedures, materials, fatilities, and equipment to be used, and to introduce new or improved services, maintenance procedures, materials, facilities and equipment; r. Take whatever action may be necessary to carry out the mission and responsibilities of the Oty in emergency situations; s. Formulate, amend, revise and implement policy, programs, rules and regulations; t. Have complete authority to exercise those rights and powers that are incidental to the rights and powers enumerated above, including the right to make unilateral changes, 2. The abo~e rights of the City are not meant to be ali-inclusive, but are meant as illustrations, which Indicate the type of matters, or rights, which belong to and are Inherent in the Oty as the employer. Any of the rights, powers, and authority the City had prior to entering their collective bargaining Agreement are retained by the City, except as specifically abridged, delegated, granted or modified by this Agreement. 3. If the City fails to exercise anyone or more of the above functions from time to time, this will not be deemed a waiver of the City's right to exercise any or all of such functions. ARTICLE 22. WORK STOPPAGES L The FOP agrees that, under no circumstances, shall there be any work stoppage, strike, Improper political activity, sympathy strike, safety strike, jurisdictional dispute, walkout, sit- down, stay-in, sick-out or any other concerted failure or refusal to perform assigned work for any reason whatsoever, or picketing in the furtherance of any of the above-prohibited activities, nor shall any bargaining unit personnel refuse to cross any picket line at any location, whether the picketing is being done by the FOP or any other employee organization or union. 2 The FOP agrees that the City shall retain the right to discharge or otherwise discipline one, some, or all of the employees participating In or promoting any of the activities enumerated in paragraph 1 above, the exerCise of such rights by the Oty will not be subject to recourse under the grievance/arbitration process. 3. It is recognized by the parties that the improper activities enumerated in paragraphs I and 2 22 31 99 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 --coutt:of..oompetent~judsdiGtian.----•-· ---.. ~ -··---~-- 4. For the purpose of this Article, it is agreed that the FOP shall be re~ponsible 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 Chiefs 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 32 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 ~-coutt:of-oompeteRt~judsdiGtiQn..---·-.--" --" _._".' '--.-..... -.... -.... .. 4. For the purpose of this Article, it is agreed that the FOP shall be re~ponsible 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 emplovee authorized to use their private automobile by the Chief of Police or the Chiefs 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 32 100 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 The City shall permit the FOP to post notices of an informational· nature and names and addresses of officers, directors, and representatives of the Employee Organization on a bulletin board in roll call room of the Police Station, or other location as may be necessary as __ _ ___ deter.mfnecLby;.the-Chief..oU:!olice.-A.copy-of-each-iiotice-to-be:;posted~shall-be-appr:oved by --·-f the Chief of Police or the Chiefs designee prior to posting. Under no circumstances shall the I FOP tender for posting, any notice or material tending to, directly or indirectly, disparage any elected or appointed official or employee of the City. An Officer of the FOP shall sign each notice to be posted. • ARTICLE 27. SEVERABIUTV CLAUSE Should any provision of this Agreement or any part thereof, be rendered or declared invalid by reason of any existing or subsequently enacted State or federal legislation, or by any decree of a court of competent jurisdiction, all other articles and sections of this Agreement shall remain in full force and effect for the duration of this Agreement. Furthermore, should any provision of this Agreement become invalid, as described above, the parties may meet within thirty (30) calendar days of such decision or legislation to discuss substitute provisions or ramifications of such action of this Agreement ARTICLE 28. COMPENSATION 1. Bargaining unit employees who serve as Field Training Officers (FTO) pursuant to the criteria below will receive a base hourly rate supplement of seven percent (7%) during the time that the employee performs FTO duties. In order to receive the FTO supplement, the employee must: (1) possess an FTO certificate from the State of Florida, and (2) be assigned to and actually perform FTO duties. Thus, employees will receive FTO pay only during those days in which the employee is at work, Is assigned to FTO duties and performs FTO duties. The seven . percent (7%) FTO supplement will be added to the employee's base pay for the days during which the employee receives such supplement. The assignment pay shall be tied to the base salary for overtime and pension calculation. l Bargaining unit employees covered by this Agreement who are temporarily assigned to a higher rank shall receive seven percent (7%) of his/her base hourly rate as a supplement for each full day worked in the higher rank. The assignment pay shall be tied to the base salary for overtime and pension calculation. 3. Longevity pay shall be calculated based on the hourly rate of each bargaining unit employee. 4. Employees covered by this contract will continue to receive $50 hazardous duty pay bi- weekly. This hazardous duty pay will not be used for pension calculation. 24 33 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 The City shall permit the FOP to post notices of an informational' nature and names and addresses of officers, directors, and representatives of the Employee Organization on a bulletin board in roll call room of the Police Station, or other location as may be necessary as i ___ .deter.mfneC::Lby;.the_Chief-.oU:!olice._A:,copv_of_each.iiQticE!-to-be:;posted~shall-be-appr:oved by ----f the Chief of Police or the Chiefs designee prior to posting. Under no circumstances shall the I FOP tender for posting, any notice or material tending to, directly or indirectly, disparage any elected or appointed official or employee of the City. An Officer of the FOP shall sign each notice to be posted. . ARTICLE 27. SEVERABIUTV CLAUSE Should any provision of this Agreement or any part thereof, be rendered or declared invalid by reason of any existing or subsequently enacted State or federal legislation, or by any decree of a court of competent jurisdiction, all other articles and sections of this Agreement shall remain in full force and effect for the duration of this Agreement. Furthermore, should any provision of this Agreement become invalid, as described above, the parties may meet within thirty (30) calendar days of such decision or legislation to discuss substitute provisions or ramifications of such action of this Agreement ARTICLE 28. COMPENSATION 1. Bargaining unit employees who serve as Reid Training Officers (FTO) pursuant to the criteria below will receive a base hourly rate supplement of seven percent (7%) during the time that the employee performs FTO duties. In order to receive the FTO supplement, the employee must: (1) possess an FTO certificate from the State of Florida, and (2) be assigned to and actually perform flO duties. Thus, employees will receive FTO pay only during those days in which the employee is at work, Is assigned to FTO duties and performs flO duties. The seven . percent (7%) FTO supplement will be added to the employee's base pay for the days during which the employee receives such supplement. The assignment pay shall be tied to the base salary for overtime and pension calculation. l Bargaining unit employees covered by this Agreement who are temporarily assigned to a higher rank shall receive seven percent (7%) of his/her base hourly rate as a supplement for each full day worked in the higher rank. The assignment pay shall be tied to the base salary for overtime and pension calculation. 3. Longevity pay shall be calculated based on the hourly rate of each bargaining unit employee. 4. Employees covered by this contract will continue to receive $50 hazardous duty pay bi- weekly. This hazardous duty pay will not be used for pension calculation. 24 33 101 AGREEMENT BElWEEN 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 __ ( afterao.on_shif.t)_or_.$0.50-(midnight-shift).-Sergeants-assignecUo-unifor:m-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 oyertime 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.1.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 {S) 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 25 34 AGREEMENT BElWEEN 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 __ (afteroQoD_shift}_or-$0.50-(rriidnight-shift).-Sergeants-assigned-.to-unifor:m-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 oyertime 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 (S) 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 25 -r 34 102 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 Step 3: 3.5% Step 4: CPI Step 5: 3.5% -• -------step-s~-cPI Step 7: 3.5% Step 8: CPI Step 9: 3.5% Step 10: CPI Step 11 (Year 15): 5% Step 12 (Vear 20): 5% 10. Within the twelve ( 12} month period immediately preceding the effective date of the merit increase Employee must not have any of the following (these rules do not apply for the CPI increase): i. Received ascorebelow3.0 on the annual performance review ii. A sustained or upheld Suspension If an employee has been suspended, then once the suspension has ended and it has been resolved and. finalized in the employee's records, then the employee can request to be reviewed again for merit pay increase. An employee that has a suspension or annual performance review overturned through the appropriate appellate process may be entitled to the applicable merit pay increase he would have otherwise received at the time. 11. An Employee must be an employee of the City on the date the merit pay increase is scheduled to be awarded. 12 An employee promoted to Sergeant will receive a one (1) time 10% increase regardless of which step he has attained in the merit based step system. The employee will continue to receive eligible steps based on the merit based step system. ARTICLE 29. PROHIBITION AGAINST RE-OPENING OF NEGOTIATIONS . Except as specifically provided herein, neither party hereto shall be permitted to re-open this Agreement or any part of this Agreement. This Agreement contains the entire Agreement of the parties on all matters relative to wages, hours, working conditions, and all other matters which have been, or could have been negotiated by and between the parties prior to the execution of this Agreement. 26 ' --f I 35 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 Step 3: 3.5% Step 4: CPI Step 5: 3.5% -. -------Step-6~-CPI------·-·--· -.. -. ---------.--... ----.. -.-.---------. Step 7: 3.5% Step 8: CPI Step 9: 3.5% Step 10: CPI Step 11 (Year 15): 5% Step 12 (Year 20): 5% 10. Within the twelve (12) month period immediately preceding the effective date of the merit increase Employee must not have any of the following (these rules do not apply for the CPI increase): i. Received a score below 3.0 on theannual performance review ii. A sustained or upheld Suspension If an employee has been suspended, then once the suspension has ended and it has been resolved and. finalized in the employee's records, then the employee can request to be reviewed again for merit pay increase. An employee that has a suspension or annual performance review overturned through the appropriate appellate process may be entitled to the applicable merit pay increase he would have otherwise received at the time. 11. An Employee must be an employee of the City on the date the merit pay increase is scheduled to be awarded. 12 An employee promoted to Sergeant will receive a one (1) time 10% increase regardless of which step he has attained in the merit based step system. The employee will continue to receive eligible steps based on the merit based step system. ARTIClE 29. PROHIBITION AGAINST RE-OPENING OF NEGOTIATIONS . Except as specifically provided herein, neither party hereto shall be permitted to re-open this Agreement or any part of this Agreement. This Agreement contains the entire Agreement of the parties on all matters relative to wages, hours, working conditions, and all other matters which have been, or could have been negotiated by and between the parties prior to the execution of this Agreement. 26 I ! --f I I 35 103 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ARTICLE 30. UNIFORMS AND EQUIPMENT 1. Employees covered by this Agreement shall receive from the City upon appointment, at no 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 Oty, 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 or the Chiefs designee, via the 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 27 36 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ARTICLE 30. UNIFORMS AND EQUIPMENT 1. Employees covered by this Agreement shall receive from the City upon appointment, at no 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; (e) 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 a bove 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 Pollee or the Chiefs designee, via the 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, 10, etc. has been returned to the City. 5. Commencing with the ratification of this Agreement each bargaining unit employee covered 27 l. ··--r 36 104 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 by this Agreement shall be provided with a Level Ill A bullet resistant vest. The wearing of the vest will be in compliance with Department policy. ---6.-Each-.Officei:-(upon.r.equest)-wlll~b~-issued:..sur.gical-gloves-and--a-plastiG-poeaket-resusc;itation mask for use in administering first aid. Such items shall be replaced as needed. 7. Employees shall be issued hand held batons (ASP) with holsters and shall receive appropriate training for use of such ASP priorfo issuance. 8. Uniformed personnel shall be permitted to wear, as part of their uniform, a standard knife (The blade of which shall not exceed three inches in length) and case, the finish of which matches the duty belt accessories issued by the City. The uniformed personnel shall not carry any knife on their person other than that which is contained in said case. ARTICLE 31. PHYSICAL EXAMINATION AND WORKERS' COMPENSATION BENEFITS l Employees will receive an electrocardiogram, eye exam, and physical examination to indude alcohol and drug screen testing at least once a year (12 months) performed by a physician or agency selected by the City or when requested by the City. Scheduling of the above will be at the discretion of the City, and the results will become part of the employee's permanent record. The City will undertake the cost of the examination and will furnish the employee with a copy of the examination report. 2 In the event of an on-the-job injl,!ry to an employee, not as a result of negligence by the employee, such employee will be carried at full pay and benefits for a period not to exceed 180 calendar days from the first day of injury. The Chief of Police may determine that a prior sustained injury reported on a subsequent date is acceptable and the 180-benefrt period can be initiated at that time at the Chiefs discretion. 3. Any employee injured on the job, and not as a result of his negligence, shall be paid the regular full wage for the day of the accident if their treating physician advises that he should not return to work that day. 4. Employees covered by this Agreement further agree that, in the interest of public confidence, there needs to exist a management right to submit employees at random and without notification for testing such as for Drug and Alcohol use. Said tests shall be In addition to the annual physical and may occur not more than one time per employee each calendar year. 5. Personnel requesting light duty status based on non-work related injuries shall file request for such duty with supporting medical documentation to the Chief of Police. If light duty status is available and is approved by the Chief at his discretion as per the Personnel Manual, the employee will be assigned duties and shift as per Departmental needs at the Chiefs 28 37 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 by this Agreement shall be provided with a Level III A bullet resistant vest. The wearing of the vest will be in compliance with Department policy. ___ 6._Each_.Officei:_(u pon.r.eque:St)-wUI~b~.lssuEld:"sur.giGal-glove5-and .. a -plastiG-poGket ·resuSGitation mask for use in administering first aid. Such items shall be replaced as needed. 7. Employees shall be issued hand held batons (ASP) with holsters and shall receive appropriate training for use of such ASP prior to issuance. 8. Uniformed personnel shall be permitted to wear, as part of their uniform, a standard knife (The blade of which shall not exceed three inches in length) and case, the finish of which matches the duty belt accessories issued by the City. The uniformed personnel shall not carry any knife on their person other than that which is contained in said case. ARTICLE 31. PHYSICAL EXAMINATION AND WORKERS' COMPENSATION BENEFITS 1 Employees will receive an electrocardiogram, eye exam, and physical examination to indude alcohol and drug screen testing at least once a year (12 months) performed by a physician or agency selected by the City or when requested by the City. Scheduling of the above will be at the discretion of the City, and the results will become part of the employee's permanent record. The City will undertake the cost of the examination and will furnish the employee with a copy of the examination report. 2 In the event of an on-the-job injury to an employee, not as a result of negligence by the employee, such employee will be carried at full pay and benefits for a period not to exceed 180 calendar days from the first day of injury. The Chief of Police may determine that a prior sustained injury reported on a subsequent date is acceptable and the l80-beneflt period can be initiated at that time at the Chiefs discretion. 3. Any employee injured on the job, and not as a result of his negligence, shall be paid the regular full wage for the day of the accident if their treating physician advises that he should not return to work that day. 4. Employees covered by this Agreement further agree that, in the interest of public confidence, there needs to exist a management right to submit employees at random and without notification for testing such as for Drug and Alcohol use. Said tests shall be In addition to the annual physical and may occur not more than one time per employee each calendar year. 5. Personnel requesting light duty status based on non-work related injuries shall file request for such duty with supporting medical documentation to the Chief of Police. If light duty status is available and is approved by the Chief at his discretion as per the Personnel Manual, the employee will be assigned duties and shift as per Departmental needs at the Chiefs 28 37 105 discretion. · AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ---------ARllCI.E-3-2-..-RET-IREMEN-T-BENEFII§---······ -------· --·· ·· ··· -· -· · ·· · ----· 1. Each employee who retires based on recelvlng 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 f:iscal 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 38 discretion. · AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 --------ARlICLE-3-2-... REnREMENT-BENEFII§---.......... ---_. -. .. ... .., _ .. h •• -••• 1. Each employee who retires based on recelv1ng 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 f:jscal 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 38 106 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ten (10) years credited full time service in the retirement plan is completed. 4. Effective October 1, 2001, the employee contribution to the retirement plan will be 7 .5%. :.. ..... --Should-the..total.contr:ibutlon.:.be..actuar:ially-deter-mir-1ed-t.o-exGeed.:.1s9';-:both--the-Gity·and the employees will share equally the excess amount (should the total contribution be actuarially determined to be 17%, the City shall contribute a total of 8.5% and the employees shall contribute a total of 85%t. Employee contribution will not exceed 12%. 5. The sum of $12A98 will be paid from the Chapter 185 Police Retirement funds to the South Miami Police Pension Plan each year, regardless of the growth or diminution in future Chapter 185 funds in partial exchange for the 25 years of service and out benefit and providing the pension benefit accrual rate (multiplier) for sworn police personnel shall not be less than two percent (2.0%) for all years of service improvement to the South ~iami Police Pension Plan. In addition, the sum of $25,282 will be paid from the Chapter 185 Police Retirement funds to the South Miami Police Pension Plan each year up to and including the payment for fiscal year ending September 30, 2026, regardless of the growth or diminution In future Chapter 185 funds In partial exchange for providing for credited service from date of employment for sworn police personnel who entered the South Miami Police Pension Plan when first eligible. The amount determined by the pension board actuary for future benefit improvements for sworn police personnel, If any,_ will be paid from the Chapter 185 Police Retirement funds to the South Miami Police Pension Plan each year, regardless of the growth or diminution in future Chapter 185 funds. 6. The retirement plan is mandatory for aH employees, covered under this Agreement, hired after October 1, 1995. 7. Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner' averaged over the best five (S) year period of the participant's career with the City of South Miami ending on the participant's retirement date, date of disability, date of termination of employment, or date of termination of the plan, whichever is applicable. For the purposes of this Agreement the best five (5) years Is defined as best five -26 consecutive pay periods within a participant's career and such consecutive year periods shall not overlap one another. 8. The normal retirement date (the earliest date a bargaining unit employee may retire with full unreduced pension benefits) for a participant shall be on the date that the participant has completed 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 9. Employees covered by this Agreement shall be allowed to apply for permission to purchase credit for active duty in the U. S. military service, up to a maximum of four (4) years in the South Miami Retirement System, pursuant to procedures to be promulgated by the City In consultation with the FOP. 30 39 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ten (10) years credited full time service in the retirement plan is completed. 4. Effective October I, 2001, the employee contribution to the retirement plan will be 7.5%. :.. ..... __ Should_the..total.contr.ibutlon.:.be-actuar:iiilly-deter:mined-t.o-exGeed':'l.G%;·:both-·the-Gity·and the employees will share equally the excess amount (should the total contribution be actuarially determined to be 17%, the City shall contribute a total of 8.5% and the employees shall contribute a total of 85%,. Employee contribution will not exceed 12%. 5. The sum of $ 12A98 will be paid from the Chapter 185 Police Retirement funds to the South Miami Police Pension Plan each year, regardless of the growth or diminution in future Chapter 185 funds in partial exchange for the 25 years of service and out benefit and providing the penSion benefit accrual rate (multiplier) for sworn police personnel shall not be less than two percent (2.0%) for all years of service improvement to the South ~iami Police Pension Plan. In addition, the sum of $25,282 will be paid from the Chapter 185 Police Retirement funds to the South Miami Police Pension Plan each year up to and indudlng the payment for fiscal year ending September 30, 2026, regardless of the growth or diminution In future Chapter 185 funds In partial exchange for providing for credited service from date of employment for sworn police personnel who entered the South Miami Police Pension Plan when first eligible. The amount determined by the pension board actuary for future benefit improvements for sworn police personnel, if any" will be paid from the Chapter 185 Police Retirement funds to the South Miami Police Pension Plan each year, regardless of the growth or diminution in future Chapter 185 funds. 6. The retirement plan is mandatory for all employees, covered under this Agreement, hired after October 1, 1995. 7. Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner' averaged over the best five (5) year period of the participant's career with the City of South Miami ending on the participant's retirement date, date of disability, date of termination of employment, or date of termination of the plan, whichever is applicable. For the purposes of this Agreement the best five (5) years Is defined as best five -26 consecutive pay periods within a participant's career and such consecutive year periods shall not overlap one another. 8. The normal retirement date (the earliest date a bargaining unit employee may retire with full unreduced pension benefits) for a participant shall be on the date that the participant has completed 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 9. Employees covered by this Agreement shall be allowed to apply for permission to purchase credit for active duty In the U. S. military service, up to a maximum of four (4) years in the South Miami Retirement System, pursuant to procedures to be promulgated by the City in consultation with the FOP. 30 39 107 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 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 _______ prnmulgated_by_the.CityJn .. consultation,with-the.FOP-T.he..actuar:ial.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 (SO} 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 ratiflcatfon 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 31 40 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 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 ... _ .. _promulgated.by_the.CityJn .. consultation,with.the.FOP~T.he.actuar:ial.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 presu med 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 anyone 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 ratificat~on 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 31 40 108 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 in which they are employed, as determined by and approved in writing by the Chief of Police. 2. Every application for educational assistance shall be subject to the approval of the Chief of eollce_aod.J:he_.City_Maoager .. Such_.appmvaLmust-be_obtained .. at .least-thlrtv--(30.). calendar. days prior to the beginning of any course. 3. If any application is approved, guidelines for reimbursement are as follows: a) 75% reimbursement of the course cost for a grade of 11 B11 or better for undergraduate courses; b) 75% reimbursement of the course cost for a grade of 11 B11 or better for graduate courses; c) 50% reimbursement of the course cost for a grade of "C 11 for graduate courses; d) Any such reimbursement shall be made only upon submission of proof of the grades as provided In sub-sections a, b, & c above; e} The credit hour cost of any courses approved shall be capped at the rate used by local publicly funded universities and/or community colleges. f} There shall be no reimbursement for grades "D" or less or"unsatisfactory''. • 4. Employees utilizing educational assistance must remain with the City for a period of at least two years following completion of any reimbursed course, or said reimbursement must be repaid to the City (amount may be deducted from final pay). ARTICLE 34. EMPLOYEE PREGNANCY/MATERNITY LEAVE 1 An employee who becomes pregnant must notify the Chief of Police as soon as she receives a medical confirmation that she is pregnant. A pregnant employee is required to furnish a letter from her physician who will state the anticipated delivery date, the amount of time the employee may continue to work until the delivery and the types and limitations of duty to be performed. The pregnant employee may, in the discretion of the City, be placed on light duty status with the approval of the Chief of Police or the Chiefs designee and the City Manager. In the event that a light duty position is not available at the Police Station, the pregnant employee may be utilized In other City of South Miami offices at the discretion of the City Manager. The employee's rate of pay will remain the same. 2 Pregnant employees may be granted FMIA leave on the same terms and conditions as granted for other non-pregnancy-related disabilities or illness. Any employee who 32 41 AGREEMENT BElWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 in which they are employed, as determined by and approved in writing by the Chief of Police. 2. Every application for educational assistance shall be subject to the approval of the Chief of . __ .J~olice._al1d.J:he_City_MaDager. •.. Such_.appmval_must.be.Dbtained .. at Jeast-thir:tv-.(30) .. calendar. days prior to the beginning of any course. 3. If any application is approved, guidelines for reimbursement are as follows: a) 75% reimbursement of the course cost for a grade of "8" or better for undergraduate courses; b) 75% reimbursement of the course cost for a grade of nB" or better for graduate courses; c) 50% reimbursement of the course cost for a grade of ne" for graduate courses; d) Any such reimbursement shall be made only upon submission of proof of the grades as provided In sub-sections a, b, & c above; e) The credit hour cost of any courses approved shall be capped at the rate used by loca I publidy funded universities and/or community colleges. f) There shall be nc reimbursement for grades tiD" or less cr "unsatlsfactory". . 4. Employees utilizing educational assistance must remain with the City for a period of at least two years following completion of any reimbursed course, or said reimbursement must be repaid to the City (amount may be deducted from final pay). ARTICLE 34. EMPLOYEE PREGNANCY/MATERNITY LEAVE 1 An employee who becomes pregnant must notify the Chief of Police as soon as she receives a medical confirmation that she Is pregnant. A pregnant employee is required to furnish a letter from her physician who will state the anticipated delivery date, the amount of time the employee may continue to work until the delivery and the types and limitations of duty to be performed. The pregnant employee may, In the discretion of the City, be placed on light duty status with the approval of the Chief of Police or the Chiefs designee and the City Manager. In the event that a light duty position is not available at the Police Station, the pregnant employee may be utilized In other aty of South Miami offices at the discretion of the City Manager. The employee's rate of pay will remain the same. 2. Pregnant employees may be granted FMLA leave on the same terms and conditions as granted for other non-pregnancy-related disabilities or illness. Any employee who 32 41 109 AGREEMENT BElWEEN FOP AND CSM 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 __ pact.ohhe accrued.leave_atheuequestinJieu_of-unpald.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. 33 42 AGREEMENT BETWEEN FOP AND CSM 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 -.... --_-patt-otthe.accruedJeave.atheuequest-inJieu..of.unpaldJeave .. _. _____ . _. ____ .. _ ... _ ... __ . _ ... ARTICLE 35. EMPLOYEE ASSISlANa 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 DISABIUTIES 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. 33 ""-r I 42 110 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ---------·•----· -----·----------------------··· . -. 34 43 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 --------_._-----._--_ .. _---_. __ ._._-_._---_._----_._-------------_._---------_._---. 34 I ! . ! ! , i 43 111 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7, 2018 ----~~==~-===:-=---=--~-=------~at~= ____ (P-:2_~ ✓ L'T' Date: / tJ/-zz. ( 2 0 I ,P Fratemal Order of Police: Date: _.._J'0-+1-'""-\,--__.}_\ ( __ 35 44 AGREEMENT BETWEEN FOP AND CSM RATIFIED BY FOP SEPTEMBER 7,2018 ____ ~~==~-==:::_ = ___ = __ ~.= ___ .. _~at~:_ ... tp-:2.~ / Lr Date: /tJ!t.z..(t.oJl' Fratemal Order of Police: Date: _L-.(O-+I_""'\_"--IJ_\ ( __ Date: _/~~ ft,,---~_z.,../~;--=~~_ 7~ 35 44 112 Retiremen t C onsulting March 25, 2019 Mr. Alfred Rivero ! Finance Directo r City Hall, 1st Floor 6130 Sunset Drive South Miami, Florida 33143 Re: Actuarial Projection Study South Miami Pension Plan Dear Alfred: P: 954.527.1616 F: 954.525.0083 www .grsconsulting.com As requested, we are pleased to e nclose our Actuarial Projectio n Study including thirty (30) year projections beginning Oc tober 1, 2017 for the South Miami Pension Plan illustrating the financial impact of the current and proposed provisions. Census data and financial informati on is reported as of October 1, 2017 . If you should have any quest ion concerning the above or if we may be of further assistance with this matter, please do not hesitate t o contact us. Sincerest regards, Lawrence F. Wilson, A.S.A., E.A., .A.A.A., F.C.A. Senior Consultant and Actuary Enclosures Jennifer M. Borregard, E.A., M .A.A.A., F.C.A. Consultant and Actuary Retiremen t C onsulting March 25, 2019 Mr. Alfred Rivero l Finance Director City Hall, 1st Floor 6130 Sunset Drive South Miami, Florida 33143 Re: Actuarial Projection Study South Miami Pension Plan Dear Alfred: P: 954.527.1616 F: 954.525.0083 www.grsconsulting.com As requested, we are pleased to e ncl ose our Actuarial Projection Study including thirty (30) year projections beginning October 1, 2017 for the South Miami Pension Plan illustrating the financial impact of the current and propos ed provisions. Census data and financial i nforma ti on is repo rted as of October 1,2017. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate t o con ta ct us. Si ncerest r egards , Law rence F. Wi lson, A.S.A., E.A ., M.A.A.A ., F.C.A. Senior Consultant and Actuary Enclosu re s Jennifer M. Borregard, E.A ., M .A.A .A., F.C.A. Consu ltant and Actua r y 113 South Miami Pension Plan Actuarial Projection Study as of October 1, 2017 Prepared: March 25, 2019 s South Miami Pension Plan Actuarial Projection Study as of October 1, 2017 Prepared: March 25, 2019 114 Retireme nt Consu lting 47 Reti rement Con.ulting 47 115 TABLE OF CONTENTS I Page I. Executive Summary .......................................................................................................... 1 II. Projection Results .................. : ......................................................................................... 5 Ill. Outline of Principal Provisions of the Retirement Plan ................................................... 7 IV. Actuarial Assumptions and Cost Methods ..................................................................... 13 V. Glossary .......................................................................................................................... 18 48 TABLE OF CONTENTS I I. Executive Summary .......................................................................................................... 1 II. Projection Results ............................................................................................................. 5 III. Outline of Principal Provisions of the Retirement Plan ................................................... 7 IV. Actuarial Assumptions and Cost Methods ..................................................................... 13 V. Glossary .......................................................................................................................... 18 48 116 EXECUTIVE SUMMARY I As requested, we have completed th i rty year projections illustrating the financial impact of proposed changes to the benefit provisions of the South Miami Pension Plan (Plan). Background Currently, the Plan provides administra t ive management service class (AMSC) membership for the following positions: J:( City Manager J:( City Attorney J:( City Clerk J:( Assistant/ Deputy City M anager J:( Finance Director/ Chie f Financial Officer J:( Chief of Police J:( Planning and Zoning Di r ector J:( Building Director J:( Director of Public Works J:( Chief Administrative Officer (currently Finance Office Manager) J:( Chief Procurement Offi cer (currently Purchasing Manager) J:( Parks and Recreation Di rector Additionally, general employees who w ere not participating in the 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 be made within 90 days from the later of th e effective date of the Ordinance to re -open the Plan to general employees or date of hire) to eith er become a second tier member of the Plan or join a defined contribution plan . Proposed Changes We understand the City is intereste d in an analysis of providing an annual open enrollment period for members who previously elected to participate in the City's defined contribution plan to join as second tier members . In addition the City is considering addi ng the following positions to AMSC membership: J:( Community Redevelop ment Agency Director J:( Personnel Manager J:( Project Manager J:( Special Assistant to the Manager (vacant and not funded in FY 2019) J:( Superintendent of Mai ntenance J:( Assistant Director of Parks and Recreation South Miami Pens i on Plan 1 49 / EXECUTIVE SUMMARY I As reques t ed, we have comp leted th i rty year projections illustrating the financial impact of proposed changes to the benefit provisions of th e South Miami Pension Plan (Plan). Background Currently, the Plan provides adm i nistra t ive managemen t service class (AMSC) membership for the following positions: l:I City Manager l:I Ci t y Attorney l:I City Clerk l:I Assistant / Deputy City Manager l:I Finance Director / Chie f Financial Officer l:I Chief of Police l:I Planning and Zoning Di r ector l:I Building Director l:I Director of Public Works l:I Chief Administrative Officer (curren t ly Finance Office Manager) l:I Chief Procurement Offi cer (currently Purchasing Manager) l:I Parks and Recreation Di rector Additionally, general employees who w ere not participating in the Plan as of October 1, 2016 and general employees hi red on or after October 1, 2016 shall be given a one -time irrevocable election (to be made with i n 90 days from the later of th e effective date of the Ordinance to re-open the Plan to general employees or date of hire) to eith er become a second tier member of the Plan or join a defined contribution plan. Proposed Changes We understand the City is intereste d i n an analysis of providing an annual open enrollment period for members who previously elected to participate in the City's defined contribution plan to join as second tier members. In addition the City is conSidering addi ng the following positions to AMSC membership: l:I Community Redevelopment Agency Director l:I Personne l Manager l:I Project Manager l:I Special Assistant t o the Manager (vacant and not funded in FY 2019) l:I Superintendent of Mai ntenance l:I Ass istant Director of Parks and Recreation South Miami Pens ion Plan 1 49 117 Results The following table shows the current City cost over the next five, ten and thi rty years for the baseline and for the proposed benefit changes described above both as a dollar amount and as a percentage of projected covered payroll, respectively . Summary of Costs Current Total Scenario 2 -Open Enrollment Impacted DC Scenario 1 -Open Enrollment Impacted DC and AMSC postitions andAMSC Amount Amount Increase/ Amount Increase/ (Decrease) Amount (Decrease) Next Year -Impacted Payroll $380 $380 $0 $2,496 $2,496 $0 -City Cost$ $27 $15 ($12) $174 $182 $8 -City Cost % 7.0% 3.9 % (3 .1%) 7.0% 7.3% 0.3% Next 5 Years -Impacted Payroll $3,409 $3 ,409 $0 $14,746 $14,746 $0 -City Cost$ $239 $125 ($113) $945 $906 ($39) -City Cost% 7.0% 3.7% (3 .3%) 6.4 % 6.1% (0.3%) Next 10 Yea rs -Impacted Payroll $8,650 $8,650 $0 $33,587 $33,587 $0 -City Cost$ $606 $348 ($257) $2,120 $2,017 ($103) • Oty Cost% 7.0% 4.0% (3.0%) 6.3% 6.0% (0.3%) Next 30 Yea rs • I mpacted Payroll $44,038 $44,038 $0 $148,566 $148,566 $0 -City Cost$ $3,083 $2,141 ($942) $8,917 $8,429 ($488) -City Cost % 7.0% 4 .9% (2.1%) 6.0% 5.7% (0.3 %) Actuarial Assumptions and Methods, Fund Provisions, Financial Data and Member Census Data The City DC Pla n participants and new entrant information for ASMC was provided by the City. The actuarial assumptions and meth ods , City DB Plan provisions (a s modified above), financial data and membe r cen su s data employed for purposes of o ur Actuarial Projection Study are the same actuarial assumptions and methods, City DB Plan provisions (as modified above), financial data and member census data utilized for th e October 1, 2017 Actuarial Valuation with the follow ing projection modifications . • Each year, one -half of cur ren t employees in the City DC Pl ans are assumed to enroll in Tier 2 benefits for General Employees until there are no City DC Plan participants (which takes p la ce over approxima t ely 10 years). • All current General Tier 2 Employee s participa t ing in the City DB Plan are assumed to continue to participate i n the current Ci t y DB Plan . South Miami Pension Plan 2 50 Results The following table shows the current City cost over the next five, ten and thirty years for the baseline and for the proposed benefit changes described above both as a dollar amount and as a percentage of project ed covered payroll, respectively . Summary of Costs Current Total Scenario 2 -Open Enrollment Impacted DC Scenario 1-Open Enrollment Impacted DC and AMSC postitions andAMSC Amount Amount Increase / Amount Increase/ (Decrease) Amount (Decrease) Ne xt Year -Impacted Payroll $380 $380 $0 $2,49 6 $2,496 $0 -City Cost $ $27 $15 ($12) $174 $182 $8 -City Cost % 7.0% 3.9% (3 .1%) 7 .0 % 7.3% 0 .3% Next 5 Years -Impacted Payroll $3,409 $3,409 $0 $14,746 $14,746 $0 -City Cost $ $239 $125 ($113) $945 $906 ($39) -City Cost % 7.0% 3.7% (3 .3%) 6.4 % 6 .1% (0 .3%) Next 10 Yea rs -Impacted Payro ll $8,650 $8,650 $0 $33,587 $33,587 $0 -City Cost $ $606 $348 ($257) $2,120 $2,017 ($103) • City Cost % 7 .0 % 4.0% (3.0 %) 6.3 % 6.0% (0 .3%) Next 30 Yea rs -I mpacted Payroll $44,038 $44,038 $0 $148,566 $148,566 $0 • City Cost $ $3,083 $2,14 1 ($942) $8,917 $8,429 ($488) -City Cost % 7.0% 4 .9% (2 .1%) 6 .0% 5.7% (0 .3%) Actuarial Assumptions and Methods, Fund Provisions, Financial Data and Member Census Data The City DC Plan participants and new entrant information for ASMC was provided by the City. The actuarial assumptions and methods, City DB Pla n provisions (as modified above), financial data and member census data employed for purposes of our Actuarial Projection Study are the same actuarial assumptions and methods, City DB Plan provisions (as modified above), financial data and member census data utilized for the October 1, 2017 Actuar i al Valuation with the following projection modifications . • Eac h year, one-ha lf of current employees in the City DC Plans are assumed to enroll in Tier 2 benefits for General Employees unti l there are no City DC Plan participants (which takes place over approximately 10 years). • All current General Tier 2 Employees participating in the City DB Plan are assumed to continue to participate in the current City DB Plan. South Miami Pension Plan 2 50 118 • All current General Tier 2 Emp loyees are assumed to be hired each year at a rate sufficient to maintain a constant act ive hea dcount -stationary population. New employees are assumed to have . the same average demog r aphic characteristics (age, gender, salary -adjusted each yea r for inflation) as those employees hi red for General Tier 2 Employees over the past five years. • All newly added AMSC employe es are assumed to enroll in the City DB Plan . • For City DC participants, the Cit y Cost per participant is assumed to be 7% of salary. • Demographic data for eight A SC employees was reported by the City. It is assumed in both the Current and Proposed Plan Pro j ections four additional AMSC employees (to fill vacant posit ions for a total of twelve AMSC empl oyees) are added to the City DB Plan . The additional six AMSC positions are added only to the Proposed Plan Projections (resulting in a total of 18 AMSC City DB Plan participants). • For AMSC projections, once added as described above, new employees are assumed to be hired each year at a rate sufficient to maintain a constant active headcount -stationary population. New employees are assumed to hav e the same average demographic characteristics (age, gender, salary -adjusted each year for inflatio n) as those employees hired for AMSC positions over the past five yea r s. • Under the City DB Plan, expen se s paid by the City are assumed to be 0.4% of the projected market value of assets during the projection period . • Projections are deterministic -throughout the projection period experience is expected to match the assumptions -including a 7.375% annual market value investment return for fiscal year ended September 30, 201a and there after. Other Considerations Under Governmental Accounting Stan d ards Board (GASB) Statement Number 68, we understand the cost of benefit changes must be recognized im mediately in pension expense (accounting not funding). Therefore, pension expense is expected to increa se the first year and then is expected to return to lower levels in fiscal years following initial recognition of the benefit change. Some current DC plan participants have already been asked to join the City DB plan and have declined . Generally, a participant who makes a one -time election (in the DB / DC plan) remains under that election. Different results would be produced if the election was allowed to occur only once . This Actuarial Projection Study is intended to describe the estimated future financial effects of the proposed benefit changes on the Pla n and is not intended as a recommendation in favor of the change nor in opposition to the change. These calculations are based upon assumptions regarding future events. However, the Plan's long term costs will be determined by actual fut ure events, which may differ materially from the assumptions made. South M iami Pension Plan 3 51 • All current General Tier 2 Emp loyees are assumed to be hired each year at a rate sufficient to maintain a constant active hea d count -stationary population. New employees are assumed to have . the same average demog raphic characteristics (age, gender, salary -adjusted each year for inflation) as those employees hi red for General Tier 2 Employees over the past five years. • All newly added AMSC employe es are assumed to enroll in the City DB Plan . • For City DC participants, the City Cost per participant is assumed to be 7% of salary. • Demographic data for eight A M SC employees was reported by the City. It is assumed in both the Current and Proposed Plan Pro j ections four additional AMSC employees (to fill vacant positions for a total of twelve AMSC empl oyees) are added to the City DB Plan. The additional six AMSC positions are added only to the Proposed Plan Projections (resulting in a total of 18 AMSC City DB Plan participants). • For AMSC projections, once ad ded as described above, new employees are assumed to be hired each year at a rate sufficient to maintain a constant active headcount -stationary population. New employees are assumed to hav e the same average demographic characteristics (age, gender, salary -adjusted each year for inflatio n) as those employees hired for AMSC positions over the past five years. • Under the City DB Plan, expen ses paid by the City are assumed to be 0.4% of the projected market value of assets during the projection period . • Projections are deterministic -throughout the projection period experience is expected to match the assumptions -including a 7.375% annual market value investment return for fiscal year ended September 3D, 2018 and there after. Other Considerations Under Governmental Accounting Stan d ards Board (GASB) Statement Number 68, we understand the cost of benefit changes must be recognized i m mediately in pension expense (accounting not funding). Therefore, pension expense is expected to increa se the first year and then is expected to return to lower levels in fiscal years following initial recognition of the benefit change . Some current DC plan participants have already been asked to join the City DB plan and have declined . Generally, a participant who makes a one-time election (in the DB / DC plan) remains under that election. Different results would be produced if the election was allowed to occur only once. This Actuarial Projection Study is intended to describe the estimated future financial effects of the proposed benefit changes on the Pla n and is not intended as a recommendation in favor of the change nor in opposition to the change. These calculations are based upon assumptions regarding future events . However, the Plan's long term costs will be determined by actual fut ure events, which may differ materially from the assumptions made. Sou th Miami Pen si on Plan 3 51 119 If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described or referenced, important Plan provisions relevant to this Actuarial Projection Study are not described or that conditions have changed since the calculations were made, you should contact the unders ign ed prior to relying on information in this Actuarial Projection Study. If you have reason to believe that the information provided in this Actuarial Projection Study is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to mak i ng such decision. If all ac tuar ial assump t ions are met and if all future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, fu ture contributions are expected to remain relatively stable as a percent of payroll and the funded status is expected to improve. Future actuar i al measurements may d iffer significantly from the current measurements presented in this re port due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demog raph ic assumptions; inc reases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contr i bution requi rements based on the Plan 's funded status); and changes in Plan provisions or applicable law . Due to the limited scope of the actuary's ass ignm ent, the actuary d id not perform an analysis of the potential range of such future measurements. This report should not be relied on for any purpose other than the purpose described in the primary communication. Determ i nations of the financia l results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This report has been prepa re d by actuaries who have substantia l experience valuing public employee retirement systems. To the best of our knowledge the information con tain ed in this report is accurate and fa i rly presents the actuarial posit ion of the Fund as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Boa rd and with applicable statutes. The signing actuaries are i ndependent of the Pla n sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Lawrence F. Wi lson, A.S.A., M.A.A.A ., E.A., F.C.A . Senior Consultant and Actuary Jennifer M . Bo rre gard, E.A., M.A.A.A., F.C.A. Consultant and Actuary South Miami Pension Plan 4 52 If you have reason to believe the assumptions used are un reas onable, the Plan provisions are incorrectly described or referenced, important Plan provisions relevant to this Actuarial Projection Study are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Projection Study. If you have reason to believe that the information provided in this Actuarial Projection Study is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to mak i ng such decision. If all ac tuari al assump t ions are met and if all future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, fu tu re contributions are expected to remain relatively stable as a percent of payroll and the funded status is expected to improve. Future actuari al measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demog r aphic assumptions; inc reases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or con t r i bution requi remen ts based on the Plan's funded status); and changes in Plan provisions or applicable law . Due to the limited scope of the actuary's ass ignm ent, the actuary d id not perform an analysis of the potentia l range of such future measurements. This report should not be relied on for any purpose other than the purpose described in the primary communication. Determ i nations of the financia l results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This report has been prepared by actuaries who have substantia l experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Fund as of the valuation date. All ca Iculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Boa rd and with applicable statutes. The sign ing actuaries are i ndependent of the Pla n sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concern i ng the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, la wrence F. Wi lso n, A.S.A., M.A.A.A., E.A., F.c.A. Senior Consultant and Actuary Jennifer M. Bo rreg ard, E.A., M .A.A.A ., F.C.A. Consultant and Actuary South Miami Pension Plan 4 52 120 PROJECTION RESULTS I Scenario 1 -Open Enrollment Provides an annual open enrollment pe r iod for members who previously elected to participate in the City 's DC Plan The following Table shows projected covered payroll and comparison of projected City cost under the baseline forecast versus Scenario 1-($1 ,000s). Fiscal Baseline Scenario #1 Deen Enrollment Increase L Increase L Year Impacted Projected Oty DC Cost Projected aty DB Cost (Decrease) (Decrease) End Payroll Dollar % of Pay Dollar % of Pay Dollar Cumulative 2019 380 27 7.0% 15 3.9 % (12) (12) 2020 597 42 7 .0 % 22 3.7 % (20) (31) 2021 728 51 7 .0 % 27 3.7 % (24) (56) 2022 818 57 7 .0% 29 3.6% (28) (83) 2023 886 62 7.0 % 32 3.6% (30) (113) 2024 943 66 7.0% 37 3.9% (29) (143) 2025 996 70 7.0% 41 4.1 % (29) (172) 2026 1,048 73 7.0% 44 4 .2% (29) (201) 2027 1,101 77 7.0% 48 4.4% (29) (229) 2028 1,154 81 7.0% 53 4 .6% (28} (257} 2029 1,208 85 7.0% 57 4 .7% (28) (285} 2030 1,260 88 7.0% 62 4 .9% (26} (311) 2031 1,312 92 7.0% 66 5.0% (26) (338) 2032 1,366 96 7 .0% 70 5.1 % (26) (364) 2033 1,423 100 7.0% 73 5.1% (27} (391) 2034 1,481 104 7.0 % 77 5.2 % (27) (417) 2035 1,541 108 7.0% 80 5.2% (28) (44 5) 2036 1,602 112 7 .0% 83 5.2% (29) (474) 2037 1,665 117 7.0% 87 5.2% (30} (504) 2038 1,729 121 7.0% 90 5.2 % (31) (53 5) 2039 1,789 125 7.0% 93 5.2% (32) (567) 2040 1,850 130 7.0% 94 5 .1% (35) (602) 2041 1,908 134 7.0% 99 5.2% (34) (637) 2042 1,971 138 7.0 % 99 5 .0% (39} (676) 2043 2,036 142 7.0 % 104 5 .1% (39) (715) 2044 2,104 147 7 .0% 105 5.0 % (42) (757} 2045 2,175 152 7.0 % 109 5.0% (44) (800} 2046 2,246 157 7.0% 112 5.0% (45) (845} 2047 2,321 162 7 .0% 116 5.0% (46) (892) 2048 2,401 168 7.0% 118 4.9 % (SO) (942} 5 Year Totals 3,409 239 7.0% 125 3.7% (113} 10 Year Totals 8,650 606 7.0% 348 4.0% (257) 30 Year Totals 44,038 3,083 7.0% 2,141 4.9% (942} 53 South Miami Pension Pla n 5 PROJECTION RESULTS I Scenario 1 -Open Enrollment Provides an annual open enrollment pe r iod for members who previously elected to participate in the City's DC Plan The following Table shows projected covered payroll and comparison of projected City cost under the baseline forecast versus Scenario 1-($l,OOOs). Fiscal Baseline Scenario #1 De.en Enrollment Increase L Increase L Year Impacted Projected City DC Cost Projected City DB Cost (Decrease) (Decrease) End Payroll Dollar % of Pay Dollar % of Pay Dollar Cumulative 2019 380 27 7.0% 15 3.9 % (12) (12) 2020 597 42 7.0 % 22 3.7 % (20) (31) 2021 728 51 7.0% 27 3.7 % (24) (56) 2022 818 57 7.0% 29 3.6% (28) (83) 2023 886 62 7.0% 32 3.6% (30) (113) 2024 943 66 7.0% 37 3.9% (29) (143) 2025 996 70 7.0% 41 4 .1% (29) (172) 2026 1,048 73 7.0% 44 4 .2% (29) (201) 2027 1,1 01 77 7.0% 48 4.4% (29) (229) 2028 1,154 81 7.0% 53 4.6% (28) (257) 2029 1,208 85 7.0% 57 4 .7% (28) (285) 2030 1,260 88 7.0% 62 4 .9% (26) (311) 2031 1,312 92 7.0% 66 5.0% (26) (338) 2032 1,366 96 7 .0% 70 5.1 % (26) (364) 2033 1,423 100 7.0% 73 5.1% (27) (391) 2034 1,481 104 7.0% 77 5 .2% (27) (417) 2035 1,541 108 7.0% 80 5.2% (28) (44 5) 2036 1,602 112 7 .0% 83 5 .2% (29) (474) 2037 1,665 117 7.0% 87 5 .2% (30) (504) 2038 1,729 121 7.0% 90 5 .2% (31) (5 35) 2039 1,789 125 7.0% 93 5 .2% (32) (567) 2040 1,850 130 7.0 % 94 5 .1% (35) (602) 2041 1,908 134 7.0% 99 5.2 % (34) (637) 2042 1,971 138 7.0 % 99 5 .0% (39) (676) 2043 2,036 142 7.0 % 104 5 .1% (39) (715) 2044 2,104 147 7 .0% 105 5.0% (42) (757) 2045 2,175 152 7.0 % 109 5.0% (44) (800) 2046 2,246 157 7.0% 112 5 .0% (45) (845) 2047 2,321 162 7 .0% 116 5.0% (46) (892) 2048 2,401 168 7.0% 118 4.9% (50) (942) 5 Year Totals 3,409 239 7.0% 125 3.7% (113) 10 Year Totals 8,650 606 7.0% 348 4 .0% (257) 30 Year Totals 44,038 3,083 7.0% 2,141 4.9% (942) 53 South Miami Pension Plan 5 121 Scenario 2 -Open Enrollment and Additional AMSC positions Provides an annual open enrollment period for members who previously elected to participate in the City's DC Plan and provides for an additional six AMSC positions The following Table shows projected covered payroll and comparison of projected City cost under the baseline forecast versus Scenario 2 -($1,000s). Fiscal Total Baseline -Total Scenario 112 Combined Increase L Increase L Year Impacted Projected City DC/ DB Cost Projected City DB Cost (Decrease) (Decrease) End Payroll Dollar % of Pay Dollar % of Pal£ Dollar Cumulative 2019 2,496 174 7.0 % 182 7 .3% 8 8 2020 2,792 167 6.0% 156 5.6% (11) (2) 2021 2,963 185 6.2% 173 5.8% {12) (14) 2022 3,164 204 6.5% 192 6.1 % (12) (26} 2023 3,330 215 6.5% 202 6.1 % (13) (39) 2024 3,489 227 6.5% 216 6.2% {10) {49) 2025 3,632 234 6.4% 224 6.2% {10} (59) 2026 3,782 245 6.5% 236 6.2% (9) (68) 2027 3,914 238 6.1% 224 5.7% {15} (83) 2028 4,025 231 5.7% 211 5 .2% {20) {103) 2029 4,112 247 6.0% 232 5.6% (16) (119) 2030 4,251 252 5.9% 236 5.5% {16) (135} 2031 4,391 262 6.0% 248 5.6% (14} (148) 2032 4,544 269 5.9% 255 5.6% (14) (162} 2033 4,701 280 6.0% 266 5.7% (14} (176} 2034 4,872 290 6.0% 278 5.7% {13} (189) 2035 5,043 300 6.0% 287 5.7% (13) (202) 2036 5,222 311 6.0% 297 5.7% (14) (216) 2037 5,404 322 6.0% 307 5 .7% (15) {231) 2038 5,583 332 6.0% 317 5 .7% (15) (246) 2039 5,763 346 6.0 % 331 5 .7% (15) {261) 2040 5,951 357 6.0% 340 5 .7% (17) {278) 2041 6,142 368 6.0% 352 5 .7% {16) {294) 2042 6,341 362 5 .7 % 333 5 .3% {29) {323) 2043 6,543 380 5.8% 355 5.4% (25) {348) 2044 6,76 1 392 5.8% 364 5.4 % (28 ) (376) 2045 6,987 409 5.9 % 381 5.5% (27) {403) 2046 7,2 17 422 5.9 % 394 5.5% (28) (431) 2047 7,453 440 5.9 % 412 5.5% {28) {459} 2048 7,699 458 5.9 % 428 5.6% {29) {488} 5 Year Totals 14,746 945 6.4% 906 6.1% (39) 10 Year Totals 33,587 2,120 6.3% 2,017 6.0% (103) 30 Year Totals 148,566 8,917 6.0% 8,429 5.7% (488) 54 South M iami Pension Plan 6 Scenario 2 -Open Enrollment and Additional AMSC positions Provides an annual open enrollment period for members who previously elected to participate in the City's DC Plan and provides for an additional six AMSC positions The following Table shows projected covered payroll and comparison of projected City cost under the baseline forecast versus Scenario 2 -($1,0005). Fiscal Total Baseline -Total Scenario 112 Combined Increase L Increase L Year Impacted Projected City DC I DB Cost Projected City DB Cost (Decrease) (Decrease) End Payroll Dollar % of Pay Dollar % of Pay Dollar Cumulative 2019 2,496 174 7.0 % 182 7.3% 8 8 2020 2,792 167 6 .0% 156 5 .6% (11) (2) 2021 2,963 185 6 .2% 173 5.8 % (12) (14) 2022 3,164 204 6 .5% 192 6.1 % (12) (26) 2023 3,330 215 6 .5% 202 6.1 % (13) (39) 2024 3,489 227 6 .5% 216 6.2% (10) (49) 2025 3,632 234 6.4% 224 6 .2% (10) (59) 2026 3,782 245 6 .5% 236 6 .2% (9) (68) 2027 3,914 238 6 .1% 224 5 .7% (15) (83) 2028 4,025 231 5.7% 211 5 .2% (20) (103) 2029 4,112 247 6 .0% 232 5 .6% (16) (119) 2030 4,251 252 5.9% 236 5.5% (16) (135) 2031 4 ,391 262 6.0% 248 5.6% (14) (148) 2032 4,544 269 5 .9% 255 5.6% (14) (162) 2033 4 ,701 280 6.0% 266 5 .7% (14) (176) 2034 4,872 290 6.0% 278 5.7% (13) (189) 2035 5,043 300 6.0% 287 5 .7% (13) (202) 2036 5,222 311 6.0% 297 5.7% (14) (216) 2037 5,404 322 6 .0% 307 5 .7% (15) (231) 2038 5,583 332 6 .0% 317 5 .7% (15) (246) 2039 5,763 346 6 .0 % 331 5.7% (15) (26 1) 2040 5,95 1 357 6.0% 340 5.7% (17) (278) 2041 6,142 368 6.0% 352 5 .7% (16) (294) 2042 6,341 362 5 .7 % 333 5 .3% (29 ) (323) 2043 6,543 380 5.8% 355 5.4% (25) (348) 2044 6,76 1 392 5.8% 364 5.4 % (28 ) (376) 2045 6,987 409 5 .9 % 381 5.5% (27) (403) 2046 7,217 422 5.9% 394 5 .5% (28) (431) 2047 7,453 440 5 .9% 412 5 .5% (28) (459) 2048 7,699 458 5.9% 428 5.6% (29) (488) 5 Year Totals 14,746 945 6.4% 906 6.1% (39) 10 Year Totals 33,587 2,120 6.3% 2,017 6.0% (103) 30 Year Totals 148,566 8,917 6.0% 8,429 5.7% (488) 54 South Miami Pe nsion Plan 6 122 OUTLINE OF PRIN CIPAL PROVISIONS OF THE RETIREMENT PLAN PRIOR TO ANY PROPOSED CHANGES INCLUDED IN THIS STUDY A. Effective Date: Oct ober 1, 1965. Most re cently amend ed by Ord i nance 1-1 7-2 271 adop t ed Janu ary 17 , 2017 . B. El igibility Req u irements : 1. General Employees Tier 1: Regul ar f u l l-t i me em ploy ee h i red befo re Oct ob er 1, 20 11 is eligible to en t er the Plan following the comp letion of six months of Cred it ed Servic e and attainment of age 20. Tier 2: Reg u la r full -time employee hi red on or afte r Octobe r 1, 2011 and not pa rti cip ating in the Plan as of October 1, 20 16 w ho elect s t o join or fa i ls t o mak e any electio n wi t hin ni nety (90) days from effective date of Ordin ance is el igible to enter the Plan as a Tie r 2 employee as of th e effective date of Ordinance. Reg u lar full -t i me employee hi red o n or afte r Octobe r 1, 2016 who elects to j oin or fails to make any election withi n ninety (90) days from date of hire is eligible to en t er th e Pla n as a Tier 2 employee as of their date of hi re . 2. Police Office rs Regu la r full -t i me Po lic e Officer is el ig ible to ente r the Pla n as of date of employment. 3. Administration Ma n agem en t Servi ce Clas s (AMSC) Employees of the City w ith the fo l lo w ing po sitions who do n ot elect to pa rt icipate i n a defined con t ribution Plan of the Ci t y: City M anager Ci t y Atto rn ey Ci t y Clerk Assistant/ Deputy City Mana ger Finance Di rec t or/ Ch ief Fi na nci al Officer Ch ief of Pol ice Plann i ng and Zoning Di rector Building Di rector Director of Publ ic Works Chief Ad m inistra t ive Offi cer (cu rre ntly Finance Office Manage r ) Chief Procureme nt Officer (c ur re nt ly Purchas .i ng M anager) Parks and Recreat ion Di recto r Sout h Miami Pen sion Pla n 7 55 OUTLINE OF PRINCIPAL PROVISIONS OF THE RETIREMENT PLAN PRIOR TO ANY PROPOSED CHANGES INCLUDED IN THIS STUDY A. Effective Date: October 1,1965. Most recently amend ed by Ordinance 1-17-2271 adopted January 17, 2017 . B. El igibility Requirements: 1. General Employees Tier 1: Regular full-time employee hired before October 1, 2011 is eligible to enter the Plan following the completion of six months of Credit ed Service and attainment of age 20. Tier 2: Regular full -time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fa i ls to make any election within ninety (90) days from effective date of Ordinance is eligible to enter the Plan as a Tier 2 employee as of the effective date of Ordinance. Regular full -time employee hired on or after October 1, 2016 who elects to join or fails to make any election withi n ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. 2. Police Officers Regu la r full-t i me Police Officer is el ig ible to enter the Plan as of date of employment. 3. Administration Management Servi ce Class (AMSC) Employees of the City w ith the fo l lowing positions who do not elect to participate in a defined contribution Plan of the City: City Manager City Attorney City Clerk Assistant / Deputy City Manager Finance Director / Chief Finan ci al Officer Ch ief of Police Planning and Zoning Director Building Di rector Director of Public Works Chief Administrative Officer (c u rrently Finance Office Manager) Chief Procurement Officer (cu r rently Purchasing Manager) Parks and Recreation Director South Miami Pension Plan 7 55 123 C. Credited Service: 1. General Employees and AMSC Continuous employment. Credited service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973 , credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25 . (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of October 1, 2016 or date of hire . 2. Police Officers Continuous employment. For Police Officers who did not participa t e when first eligible for the Plan, Credited Service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, Credited Service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25 . (2) If employed on or after October 1, 1973, Credited Service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20 . D. Final Monthly Compensation (FMC): Final Average Compensation is 1/36th of the final 36 consecutive months of compensation . For Police Officers , not less than 1/5th of the highest five (5) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salaries , excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, Final Average Compensation for General Employees is 1/60th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30 , 2011 based on the definition above . Basic compensation shall mean base wages and salaries, excluding commissions , overtime pay , bonuses and any other forms of additional compensation earned outside of base wages . Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries , including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages . South Mia m i Pension Plan 8 56 C. Credited Service: 1. General Employees and AMSC Continuous employment. Credited service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973 , credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25 . (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of October 1, 2016 or date of hire . 2. Police Officers Continuous employment. For Police Officers who did not participa t e when first eligible for the Plan , Credited Service shall exclude continuous employment prior to Plan partic i pation as follows: (1) If employed prior to October 1, 1973, Credited Service shall exclude the first two years of cont i nuous employment and any additional year of continuous employment prior to atta i nment of age 25 . (2) If employed on or after October 1, 1973, Credited Service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20 . D. Fi nal Monthly Compensation (FMC): Final Average Compensation is 1/36th of the final 36 consecutive months of compensation . For Police Officers, not less than 1/5th of the highest five (5) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salar ies , excluding bonuses , vacation, sick leave and other additional compensation . Effective October 1, 2011, Final Average Compensation for General Employees is 1/60th of the f i nal 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30 , 2011 based on the definit ion above . Bas ic compensa ti on shall mean base wages and salaries, excluding commissions , overtime pay , bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011 , Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Ave rage Compensation as of September 30, 2011 based on the definition above . Basic compensation shall mean base wages and salaries , including up t o 300 hours of overti me i n a fiscal year and excluding payments for acc r ued unused sick or annual leave , extra duty or special detail work, sh ift differential, assignment pay , bonuses and any other forms of additiona l compensa t ion earned outside of base wages . So uth Mia m i Pension Plan 8 56 124 D. Final Monthly Compensation {FMC) (con t 'd): Effective October 1, 2016, Fi nal Averag e Compensation for members covered under the Miami -Dade County Po lice Benevolent Association Upper-Collective Bargainning Union (Lieutenants & Captains) collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of Septembe r 30, 2016 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annua l leav e, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additiona l compensation earned outside of base wages. Fina l Average Compenation for Tier 2 Ge neral Employees and AMSC sha ll be the average of the highest eight (8) years of credit service. E. Normal Retirement: 1. Eligibility: a. General Employees: b. Pol ice Officers: c. AMSC: 2. Be nefi t: Attainment of age 55 and completion of ten (10) years of Credited Service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10) years of Credited Service for benefits accrued after September 30, 2011, inc lud ing increases in the accrued benefi t as of September 30, 2011 due to increases in the Final Average Compens ation . Attainme nt of age 65 and co mpl etion of ten (10) years of Credited Service or comp letion of th irty-three (33) years of Credited Service regardless of age for Tie r 2 Ge neral Employees . Attainme nt of age 60 and completion of ten (10) years of Credited Service or completi on of twenty-five (25) years of Credited Service regardless of age. Attainm ~nt of age 65 and comp letion of three (3) years of Credited Service or completi o of thirty-three (33) years of Credited Service regardless of age. The mo nthly Pla n benefit is the produ ct of: a. FMC, b. Credited Service during the approp r iate period and c. The approp ri ate benefit percentage The appropriate benefit percentages are: a. General Emp loy ees For Credited Service Through Sep t ember 30, 1999 October 1, 1999 through Septembe r 30, 2011 October 1, 2011 and thereafter Percentage 2.50% 2.75% 2.25% South Miami Pensi on Plan 9 57 D. Final Monthly Compensation (FMC) (con t 'd): Effective October 1, 2016, Final Averag e Compensation for members covered under the Miami-Dade County Police Benevolent Association Upper-Collective Bargainning Union (Lieutenants & Captains) collective bargaining agreement is the best five (5 ) years of basic compensation, provided it is not less than the Final Average Compensation as of Septembe r 30, 2016 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annua l leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additiona l compensation earned outside of base wages. Fina l Average Compenation for Tier 2 General Employees and AMSC shall be the average of the highest eight (8) years of credit service. E. Normal Retirement: 1. Eligibility: a. General Employees: b. Police Officers: c. AMSC: 2. Benefit: Attainment of age 55 and completion of ten (10) years of Credited Service for benefits accrued as of September 30,2011. Attainment of age 60 and completion of ten (10) years of Credited Service for benefits accrued after September 30, 2011, inc lud ing increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compens ation . Attainme nt of age 65 and completion of ten (10) years of Credited Service or completi o n of thirty-three (33) years of Credited Service regardless of age for Tier 2 Ge neral Employees. Attainme nt of age 60 and completion of ten (10) years of Credited Service or completi on of twenty-five (25) years of Credited Service regardless of age. Attainme nt of age 65 and comp letion of three (3) years of Credited Service or completi o of thirty-three (33) years of Credited Service regardless of age. The monthly Plan benefit is the produ ct of: a. FMC, b. Credited Service during the approp r iate period and c. The approp ri ate benefit percentage The appropriate benefit percentages are: a. General Emp loyees For Credited Service Throug h September 30, 1999 October 1, 1999 through September 30, 2011 October 1, 2011 and thereafter Percentage 2.50% 2.75% 2.25% South Miami Pension Plan 9 57 125 E. Normal Ret irement (con t 'd): 2. Benefit : b. Po l ice Officers c. General Employees (Tier 2) d. AMSC F. Supplemental Benefit: For Cred ited Service Through September 30, 1995 October 1, 1995 th rough September 30 , 1996 October 1, 1996 through Septemb er 30, 1997 October 1, 1997 through September 30 , 2001 October 1, 2001 through September 30 , 2002 October 1, 2002 through September 30, 2003 October 1, 2003 and thereafter For Cred ited Service October 1, 2016 and thereafter For Credited Service October 1, 2016 and thereafter Percentage 2.00% 2.25% 2.50 % 2.75% 2.80% 2.90% 3.00% Percentage 1.60% Percentage 3.00% A cost-of-l iving supplemental benefit based upon the consumer price index is provided upon retirement . The annual i ncrease is limited to 3%. Fo r General Employees the cost-o f-living supplemen t al benefi t is only prov ided on the accrued benefit as of September 30, 2011 and does not apply to increases in this accrued benefit due to increases in the Final Average Compensation. No cost-of-living supp lemental benefit is provided for Tier 2 General Employees. No cost -of-living supp lemental benefit is provided for AMSC for benefit accruals on or after October 1, 2011. G. Early Ret irement: 1. Eligibility: a. Police Officers: b. AMSC: 2. Benefit : a. Police Officers: Attainment of age 50 and completion of 15 years of Credited Service. Attainment of age 55 and completion of 10 years of Credited Service . Accrued benefit based upon FMC and Credited Service as of Early Retirement Date , reduced 3% for each year that the benefit commencement date precedes Normal Retirement. Sout h Miami Pen sion Plan 10 58 E. Normal Retirement (cont'd): 2. Benefit: b. Po l ice Officers c. General Em p loyees (Tier 2) d. AMSC F. Supplemental Benefit: For Credited Service Through September 30, 1995 October 1, 1995 through September 30 , 1996 October 1, 1996 through September 30, 1997 October 1, 1997 through September 30, 2001 October 1, 2001 through September 30, 2002 October 1, 2002 through September 30, 2003 October 1, 2003 and thereafter For Credited Service October 1, 2016 and thereafter For Credited Service October 1, 2016 and thereafter Percentage 2.00% 2.25% 2.50% 2.75% 2.80% 2.90% 3.00% Percentage 1.60% Percentage 3.00% A cost-of-living supplemental benefit based upon the consumer price index is provided upon retirement. The an nu al i ncrease is limited to 3%. Fo r General Employees the cost-of-living supplementa l benefi t is only provided on the accrued benefit as of September 30, 2011 and does not apply to increases in this accrued benefit due to increases in the Final Average Compensation . No cost-of-living supplemental benefit is provided for Tier 2 General Employees. No cost -of-living supplemental benefit is provided for AMSC for benefit accruals on or after October 1,2011. G. Early Retirement: 1. Elig i bility: a. Po lice Officers: b. AMSC: 2. Benefit: a. Police Officers: Attainment of age 50 and completion of 15 years of Credited Service. Attainment of age 55 and completion of 10 years of Credited Service . Accrued benefit based upon FMC and Credited Service as of Ear ly Retirement Date, reduced 3% for each year that the benefit commencement date precedes Norma l Retirement. South Miami Pension Plan 10 58 126 G. Early Retirement (cont'd): 2. Benefit: b. AMSC : Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 1/15 for each of the first five years and 1/30 for the next five years that the benefit commenc ement date precedes Normal Retirement. H. Delayed Retirement: I. 1. Eligibility: Retirement subsequent to Normal Retirement Date. 2. Benefit: Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date. Disability Retirement: 1. Eligibility: Totally and perm anently disabled for a six month period while actively employed. 2. Benefit: Accrued benefit based upon FMC and Credited Service as of date of disability, actuarially reduced as for Early Retirement for early commencement. J. Pre -Ret i rement Death Benefit: The beneficiary shall receive the me m ber's accumulated Employee Contributions. K. Benefit Upon Termination of Service : 1. Benefit payable at Norma l Reti rement equal to the greater of: a. Accrued benefit based upon FMC and Credited Service as of date of termination times the vesting percentage shown below, or b. Benefit which can be su pported by the accumulated Member Contributions with interest to Normal Retirement Date . No supplementa l benefit shall be payable t o vested term i nees. South M iam i Pension Plan 11 59 G. Early Retirement (cont 'd): 2. Benefit: b. AMSC: Accrued benefit based upon FMC and Cred ited Service as of Early Retirement Date , reduced 1/15 for each of the first f ive years and 1/30 for the next five years that the benefit commencement date precedes Normal Reti r ement. H. Delayed Retirement : 1. Eligibility: Retirement subse q uent to Normal Retirement Date . 2. Benefit: Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date. I. Disability Retiremen t: 1. Eligibility: Totally and permanently d isa bled for a six month period while actively employed. 2. Benefit: Accrued benefit base d upon FMC and Credited Service as of date of disability, actuarially reduced as for Early Retirement for ear ly commencement. J. Pre-Ret i re men t Death Bene f it: The be nefic ia ry shall receive the member's accumulated Employee Contri butions . K. Bene f it Upon Term i nation of Se rvic e: 1. Benefit payable at Normal Retirement equal to the greater of: a. Accrued benefit based upon FMC and Credited Service as of date of term in ation times the vest i ng perce ntage shown below, or b . Benefit which can be su p ported by the accumulated Member Contributions with interest to Normal Retirement Date . No supplementa l benefit shall be payable t o vested terminees. So uth Miami Pension Plan 11 59 127 K. Benef it Upon Termination of Service (cont'd): 2. Vesting Schedule: All employees except AMSC: AMSC: 3. Refund Option: Years of Credited Service Less than 10 10 or more years Years of Credited Service Less than 3 3 or more years Vesting Percentage 0% 100% Vesting Percentage 0% 100% A term i nated member may elect t o receive a refund of Accumulated Contributions without interest i n lieu of rece iving any othe r Plan benefits. L. Member Cont r ibutio ns: Members contribute 7.0 % (3.0% for Tier 2 General Employees and 7.5% fo r Pol ice Officers) of member's bas ic annual compensat ion. Should the City contribution for General Employees be actua ria lly dete rmi ned to exceed 7.0%, not i ncluding expenses , both the City and the General Employees (other than Tier 2 General Employees and AMSC) will share equally in the amount in excess of 7 .0%. Ge neral Employees (o ther than Tier 2 General Employees and AMSC) Contributions are capped at 10% of basic annual compensation as of October 1, 20 16. Should the City contribution for Po lice Officers be act uaria lly determined to exceed 7.5%, not including expenses, both the City and the Police Officers wi ll share equally in the amount in excess of 7.5 % but not mo re tha n 12.0 % for Po lice Lieutenan ts and Police Captains . M . Nor ma l Fo rm of Retiremen t Income: The normal form of paymen t shall be a li f e annuity wi t h a guarantee of a refund of accumulated Emp loyee Contribut io ns. N. Changes Since Previous Actuarial Valuation: Proposed changes rela t ed to t his Study. South Miami Pension Plan 12 60 K. Benefit Upon Termination of Service (cont'd): 2. Vesting Schedule: All employees except AMSC: AMSC: 3. Refund Option: Years of Credited Service Less than 10 10 or more years Years of Credited Service Less than 3 3 or more years Vesting Percentage 0% 100% Vesting Percentage 0% 100% A terminated member may elect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits. L. Member Contributions: Members contribute 7.0% (3.0% for Tier 2 General Employees and 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, both the City and the General Employees (other than Tier 2 General Employees and AMSC) will share equally in the amount in excess of 7 .0%. General Employees (other than Tier 2 General Employees and AMSC) Contributions are capped at 10% of basic annual compensation as of October 1, 2016 . Should the City contribution for Po lice Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5 % but not more than 12 .0 % for Police Lieutenants and Police Captains. M. Normal Form of Retirement Income: The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated Emp loyee Contributions. N. Changes Since Previous Actuarial Valuation: Proposed changes related to this Study . South Miami Pension Plan 12 60 128 ACTUARIAL ASSUMPTIONS AND METHODS I A. Mortality General Employees including AMSC Mortality Assumptions: For healthy male participants during employment, RP 2000 Combined Male Healthy Participant Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB . For healthy female participants during employment, RP 2000 Combined Female Healthy Participant Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For hea lthy male participants post employment, RP 2000 Annuitant Male Mortality Table, with 50% White Collar/ 50% Blue Co l lar Adjustment and fully generational mortality i mprovements projected to each future decrement date with Scale BB. For hea lthy female participants post employment, RP 2000 Annuitant Female Morta lity Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Sca le BB. For disabled male participants, RP 2000 Disabled Male Morta l ity Table, setback four years, without projected mortality improvements. For disab led female participants, RP 2000 Disabled Female Mortality Table, set forward two years, without projected mortal ity i mprovements . Pre-ret irement Post-retirement Sample Futu r e Life Future Life Ages Expecta cy (Years) Expectancy (Years) (2017) Male Female Male Female 55 30.42 33.47 29.99 33 .25 60 25.49 28.45 25 .32 28.35 62 23 .58 26.49 23.48 26.43 Pre-ret irement Post-retirement Sample Futu re Life Future Life Ages Expecta ncy (Years) Expectancy (Years) (2037) Male Female Male Female 55 32.57 35.32 32.16 35 .12 60 27.67 30 .29 27.52 30.21 62 25 .76 28.32 25 .68 28.26 South Miam i Pens ion Plan 13 61 ACTUARIAL ASSUMPTIONS AND METHODS I A. Mortality General Employees i ncluding AMSC Mortality Assumptions: For healthy male participants during employment, RP 2000 Combined Male Healthy Participant Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements proj ected to each future decrement date wit h Scale BB . For healthy female participants during employment, RP 2000 Combined Female Healthy Participant Mortality Tab le , with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For hea lthy male participants post e mployment, RP 2000 Annuitant Male Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment an d fully generational mortality i mprovements projected to each future decrement date w ith Scale BB. For hea lthy female participants post employment, RP 2000 Annuitant Female Morta lity Table, with Wh ite Colla r Ad ju st ment and f u lly generational mortality i mprovements projected to eac h fut u re decrement date with Sca le BB . Fo r disabled male participan ts , RP 20 0 0 Disabled Male Mortality Table, setbac k four years, without projected mortality improvements. For disab led female participants, RP 2000 Disabled Female Mortality Table, set forward two years, without proje cte d mortal ity i mprovements . Sample Ages (2017) 55 60 62 Sample Ages (2037) 55 60 62 Pre-ret irement Futur e Life Expecta n cy (Years) Male Female 30.42 25 .4 9 23 .58 Pre-ret irement Futu r e Life Expecta ncy (Years) 33.47 28.45 26.49 Male Female 32.57 27 .67 25 .76 35.32 30.29 28.32 Post-retirement Future Life Expectancy (Years) Male Female 29.99 25 .32 23.48 Post-retirement Future Life Expectancy (Years) 33 .25 28 .3 5 26.43 Male Female 32.16 27 .5 2 25.68 35.12 30.21 28 .2 6 South Miam i Pension Plan 13 61 129 A. Mortality (cont'd) Police Officer Mortality Assumptions: For healthy participants during employment, RP-2000 Combined Healthy Participant Mortality Tables, separate rates for males and females, with 90% Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP-2000 Annuitant Mortality Tables , separate rates for males and females, with 90% Blue Collar Adjustment / 10 % White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB . For disabled male participants, 60 % RP 2000 Disabled Male Mortality Table setback four years/ 40% RP 2000 Annuitant Male Mortality Table, with White Collar Adjustment and no setback , without projected mortality improvements. For disabled female particpants, 60% RP 2000 Disabled Female Mortality Table set forward two years / 40% RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment, without projected mortality improvements. Sample Ages (2017) 55 60 62 Sample Ages (2037) 55 60 62 Pre-retirement Future Life Expectancy (Years) Male Female 29.73 24.84 22.97 Pre-retirement Future Life Expectancy (Years) 32.50 27.46 25.50 Male Female 31.96 27.11 25 .23 34.44 29.40 27 .41 B. Investment Return to be Earned by Fund Post-retirement Future Life Expectancy (Years) Male Female 29 .21 24 .64 22 .85 Post-retirement Future Life Expectancy (Years) 32 .30 27 .31 25 .39 Male Female 31.46 26 .92 25.12 34.27 29.27 27 .33 7.375% (net of investment expenses), compounded annually-includes inflation at 2.75%. C. Allowances for Expenses or Contingencies Actual expenses paid in previous year. South M iam i Pension Plan 14 62 A. Mortality (cont'dl Police Officer Mortality Assumptions : For healthy participants during employment, RP-2000 Combined Healthy Participant Mortality Tables, separate rates for males and females, with 90 % Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB . For healthy participants post employment, RP -2000 Annuitant Mortality Tables , separate rates for males and females , with 90 % Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality improvements projected to each future dec rement date with Scale BB . For disabled male participants, 60 % RP 2000 Disabled Male Mortality Table setback four years /40% RP 2000 Annuitant Male Mortality Table, with White Collar Adjustment and no setbac k, without projected mortality improvements. For disabled female particpants, 60 % RP 2000 Disabled Female Mortality Table set forward two years / 40% RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment, without projected mortality improvements. Sample Ages (2017) 55 60 62 Sample Ages (2037) 55 60 62 Pre-retirement Future Life Expectancy (Years) Male Female 29 .73 24.84 22 .97 Pre-retirement Future Life Expectancy (Years) 32.50 27.46 25.50 Male Female 31.96 27 .11 25 .23 34 .44 29.40 27 .41 B. Investment Return to be Earned by Fund Post-retirement Future Life Expectancy (Years) Male Female 29.21 24 .64 22.85 Post-retirement Future Life Expectancy (Years) 32 .30 27 .31 25 .39 Male Female 31.46 26 .92 25.12 34 .27 29.27 27 .33 7.375 % (net of investment ex penses), compounded annually -includes inflation at 2.75 %. C. Allowances for Expenses or Contingencies Actual expenses paid in previous year. So ut h M iam i Pens io n Plan 14 62 130 D. Employee Withdrawa l Rates Withdrawa l r ates for males and for fe m ales were used in accordance with the following illustrative examp le based upon number of yea rs of service : E. Disab i lity Rates Service 1-2 3 -6 7 -10 11 & Over Withdrawal Rates Per 100 Emp loyees Police Genera l / AMSC 12.00 8.00 8.00 3.50 20.00 9.25 5.00 5.00 1985 Disabi l ity Study, Class 1 with separate rates for females was used. F. Marita l Assumpti o ns 100% of act ive me m bers are assum ed to be married . Where applicable, females are assumed to be three years younger than their ma le spous es. G. Sa lary Increase Factors Current salary is assumed to increas e in accordance with the following table based upon number of years of serv ice -i ncludes wage inflation of 3.25%. Service 0-9 10-14 15 -19 20 & over H. Increase in Covered Payro ll Po lice 5.25% 3.75% 3.75% 3.75% General I AMSC 5.25% 4.75% 4.25% 3.75% 4.0% per yea r, lim ited to average annual i ncrease over most r ecent ten years (-0.7%) but not less than 0.0% for Police Officers. No i ncrease in covered payroll is assumed for Genera l Employees including AMSC. South Miami Pension Plan 15 63 D. Emp loyee Withdrawa l Rates Withdrawa l r ates for ma les and f o r fe m ales were used in accordance with the following illustrative examp le based upon number of yea rs of service: E. Disab i lity Ra t es 1-2 3-6 7 -10 11 & Over Withdrawal Rates Per 100 Employees Police General / AMSC 12.00 8.00 8.00 3.5 0 20 .00 9.25 5.00 5.00 1985 Disabi l ity Study, Class 1 w ith se par ate rates for fema les was used . F. Marita l Assum ptions 100% of act ive members are assum ed t o be married. Where app li cable, females are as sumed to be three years younge r than the i r ma le spous es. G. Sa lary Increase Factors Current salary is assumed to increas e in accordance with the following table based upon number of years of service -i ncludes wage i nf lat ion of 3.25%. Service 0-9 10 -14 15 -19 20 & over H. Increase in Covered Pa yroll Po lice 5.25% 3.75% 3.75% 3.75% General / AMSC 5.25% 4.75% 4.25% 3.75% 4.0 % per year, l imi t ed to average annual i ncrease over most r ecent ten years (-0.7%) but not less than 0.0% for Po li ce Offi cers. No i ncrease in covere d payroll is assumed f or General Employees including AMSC. South Miami Pension Plan 15 63 131 I. Retirement Rates Rates of Early Retirement for Police Officers were used in accordance with the following table. Years Preceding Norma l Retirement 1 -6 7 -10 Police 5% 10% Rates of Normal Retirement were used in accordance with the fo llowing tables. Age 55 -59 60 -61 62 -64 65 -66 67 & above Service 25 years Police N/A 25% 40% 100% 100% Police 1 --- General & AMSC* 10% 10% 25% 25% 100% * Includes Ear ly Retirement for AMSC Employees . Rates are 25% for Tier 2 and AMSC members for each year upon meeting 33 years of service until 100% at age 67. General Employees who retire prior to age sixty (60) but after attainment of ten (10) years of Credited Service (55 & 10) are assumed to receive an actuaria l ly reduced benefit payable immediately upon retirement. J. Cost of Living Increases Future cost of living increases for General Employees (other than Ti e r 2 Genera l Employees) and Police Officers are assumed to be 3.0% per annum. K. Valuat ion of Assets The method used for determining the actuarial va lue of assets phases in the deviation between the expected and actua l return on assets at the rate of 20% per year. The actuarial value of assets will be further adjusted to the extent necessary to fa l l within the corridor whose lowe r limit is 80 % of the fair market value of Plan assets and whose upper limit is 120% of the fair market va l ue of Plan assets . South M iami Pension Plan 16 64 I. Retirement Rates Rates of Early Retirement for Police Officers were used in accordance with the following table. Years Preceding Norma l Retirement 1-6 7 -10 Police 5% 10% Rates of Normal Retirement were used in accordance with the fo llowing tables. Age 55 -59 60 -61 62 -64 65 -66 67 & above Service 25 years Police N/A 25% 40% 100% 100% Police 100% General & AMSC* 10% 10% 25% 25% 100% * Includes Early Retirement for AMSC Employees . Rates are 25% for Tier 2 and AMSC members for each year upon meeting 33 years of service until 100% at age 67. General Employees who retire prior to age sixty (60) but after attainment of ten (10) years of Credited Service (55 & 10) are assumed to receive an actuarially reduced benefit payable immediately upon retirement . J. Cost of Living Increases Future cost of living increases for General Employees (other than Tier 2 Genera l Employees) and Police Officers are assumed to be 3.0% per annum. K. Valuat ion of Assets The method used for determining the actuarial va lue of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The actuarial value of assets will be further adjusted to the extent necessary to fa l l within the corridor whose lower limit is 80% of the fair market value of Plan assets and whose upper limit is 120% of the fair market value of Plan assets. South M iami Pensio n Plan 16 64 132 L. Cost Methods Normal Retirement, Termination, Di sability and Pre -Retirement Death Benefit: Entry-Age-Actuarial Cost Method Under t his method the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assum ing the Plan had always been in effect. The normal cost for the Plan is the sum of the i ndividual normal co sts for all active employees . The actuarial accrued liability as of any valuation date for each active empl oyee or inactive employee who is eligible to receive benefits under the Plan is t he excess of the actuarial p resent value of estimated future benefits over the actuarial present value of current and future normal cos ts . The unfunded actua r ial accrued liability as of any valuation date is the excess of the actuarial accrue d liabil ity over the actuarial value of assets of the Plan. M. Change s Since Previous Actuarial Va luation None, except as noted above relate d to the Study. South M iam i Pension Plan 17 65 L. Cost Methods Normal Retirement, Termination, Di sability and Pre-Retirement Death Benefit: Entrv-Age-Actuarial Cost Method Under this method the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assumi ng the Plan had always been in effect. The normal cost for the Plan is the sum of the individual normal costs for all active employees. The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the Plan is the excess of the actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs. The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrued liability over the actuarial value of assets of the Plan. M. Changes Since Previous Actuarial Va luation None, except as noted above related to the Study. South Miami Pension Plan 17 65 133 GLOSSARY I Actuarial Accrued Liability. The difference between the Actuarial Present Va l ue of Future Benefits, and the Actuarial Present Value of Future Normal Costs. Actuarial Assumptions. Assumptions about future plan experience that affect costs or liabilities, such as: mortality, withdrawal, disablement, and retirement; future increases in salary; future rates of investment earnings; future investment and administrative expenses; characteristics of members not specified in the data, such as marital status; characteristics of future members; future elections made by members and other items. Actuarial Cost Method. Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits between the Actuarial Present Value of Future Normal Costs and the Actuarial Accrued Liability. Actuarial Equivalent. Of equal Actuarial Present Value, determined as of a given date and based on a given set of Actuarial Assumptions . Actuarial Present Value of Future Benefits . The Actuarial Present Value of amounts which are expected to be paid at various future times to active members, retired members, beneficiaries receiving benefits and inactive, non-retired members entitled to either a refund or a future retirement benefit. Expressed another way, it is the value that would have to be invested on the valuation date so that the amount invested plus investment earnings would provide sufficient assets to pay all projected benefits and expenses when due . Actuarial Valuation . The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a plan. An Actuarial Valuation for a governmental retirement system typically also includes calculations of items needed for compliance with GASB No. 67. Actuarial Value of Assets. The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets or a smoothed value in order to reduce the year-to-year volatility of calculated results, such as the funded ratio and the actuarially required contribution. Amortization Method. A method for determining the Amortization Payment. The most common methods used are level dollar and level percentage of payroll. Under the Level Dollar method, the Amortization Payment is one of a stream of payments, all equal, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the Amortization Payment is one of a stream of increasing payments, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the stream of payments increases at the rate at which tota l covered payroll of all active members is assumed to increase. South Miami Pension Plan 18 66 GLOSSARY I Actuarial Accrued Liability. The difference between the Actuarial Present Value of Future Benefits, and the Actuarial Present Value of Future Normal Costs. Actuarial Assumptions. Assumptions about future plan experience that affect costs or liabilities, such as: mortality, withdrawal, disablement, and retirement; future increases in salary; future rates of investment earnings; future investment and administrative expenses; characteristics of members not specified in the data, such as marital status; characteristics of future members; future elections made by members and other items. Actuarial Cost Method. Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits between the Actuarial Present Value of Future Normal Costs and the Actuarial Accrued Liability. Actuarial Equivalent. Of equal Actuarial Present Value, determined as of a given date and based on a given set of Actuarial Assumptions . Actuarial Present Value of Future Benefits. The Actuarial Present Value of amounts which are expected to be paid at various future times to active members, retired members, beneficiaries receiving benefits and inactive, non-retired members entitled to either a refund or a future retirement benefit. Expressed another way, it is the value that would have to be invested on the valuation date so that the amount invested plus investment earnings would provide suffi cient assets to pay all projected benefits and expenses when due. Actuarial Valuation . The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a plan. An Actuarial Valuation for a governmental retirement system typically also includes calculations of items needed for compliance with GASB No. 67 . Actuarial Value of Assets. The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets or a smoothed value in order to reduce the year-to-year volatility of calculated results, such as the funded ratio and the actuarially required contribution. Amortization Method. A method for determining the Amortization Payment. The most common methods used are level dollar and level percentage of payroll. Under the Level Dollar method, the Amortization Payment is one of a stream of payments, all equal, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the Amortization Payment is one of a stream of increasing payments, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the stream of payments increases at the rate at which total covered payroll of all active members is assumed to increase. South M iam i Pension Plan 18 66 134 Amortization Payment. That porti o n of the plan contribution which is designed t o pay interest on and to amortize the Unfunded Actu ar ial Accrued Liability. Amortization Period. The period used in calculating th e Amortization Payment. Annual Required Contribution. The emp loyer's periodic required contributions, expressed as a dollar amount or a pe rcentage of covered plan compensation . The annual required contribution consists of the Employer Normal Cost and Amo rtization Payment plus interest adjustment. Closed Amortization Period. A specific number of years that is reduced by one each year, and declines to zero with the passage of time. For example if the amortization period is initially set at 30 years, it is 29 years at the end of on e year, 28 years at the end of two years, etc. Employer Normal Cost. The portion of the Normal Cost to be paid by the employer. This is equal to the No rmal Cos t less expected member contributions. Equivalent Single Amortization Per iod . For plans that do not establish separate amortization bases (separate components of the UAAL ), this is the same as the Amortization Period. For plans that do establish separate amortization bases, th is is the period over which the UAAL would be amortized if all amortization bases were combined upon the current UAAL payment. Experience Gain/Loss. A measure of the difference between actua l experience and that expected based upon a set of Actuarial Assumptions, during the period between two actuarial valuations . To the extent that actual experience d iffers from that assumed, Un funde d Actuarial Accrued Liabilities emerge which may be larger or smaller than projected. Gains are due to favorable experience, e.g., the assets earn more than projected , salaries do not increase as fast as assumed, members retire later than assumed, etc. Favorable experi en ce means actual results produce actuarial liabilities not as large as projected by the actuarial assump t ions . Losses are the result of unfavorable experience, i.e., actual results that produce Unfunded Actuarial Accrued Liabilities which are larger than projected . Funded Ratio. The rat io of the Actu ar ial Value of Assets to the Ac tu arial Accrued Liability . GASB. Governmental Accounting St andards Board. GASB No . 67 and GASB No. 68. These are the governmental accounting standards that set the accounting r ules for public retirem e nt plans and the employers that sponsor or contribute to them. Statement No. 67 sets the accounti g rules for the plans themselves, while Statement No. 68 sets the accounting rules for the employers that sponsor or contribute to pub l ic retirement plans. Normal Cost. The annual cost assig ned, under the Actuarial Cost Method, to the current plan year. Sout h Miami Pensio n Plan 19 67 Amortization Payment. That porti o n of the plan contribution which is designed to pay interest on and to amortize the Unfunded Actu ar ial Accrued Liability. Amortization Period. The period used in calculating th e Amortization Payment. Annual Required Contribution. The emp loyer's periodic required contributions, expressed as a dollar amount or a pe rcentage of covered plan compensation. The annual required contribution consists of the Employer Normal Cost and Amo rtization Payment plus interest adjustment. Closed Amortization Period. A specific number of years that is reduced by one each year, and declines to zero with the passage of time. For example if the amortization period is initially set at 30 years, it is 29 years at the end of one year, 28 years at the end of two years, etc. Employer Normal Cost. The portio n of the Normal Cost to be paid by the employer. This is equal to the No rmal Cost less expected mem ber contributions. Equivalent Single Amortization Per iod. For plans that do not establish separate amortization bases (separate components of the UAAL ), this is the same as the Amortization Period. For plans that do establish separate amortization bases, this is the period over which the UAAL would be amortized if al l amortization bases were combined upon the current UAAL payment. Experience Gain/loss. A measure of the difference between actua l experience and that expected based upon a set of Actuarial Assumptions, during the period between two actuarial valuations . To the extent that actual experience d iffers from that assumed, Un funded Actuarial Accrued Liabilities emerge which may be larger or smaller than projected. Gains are due to favorable experience, e.g., the assets earn more than projected , salaries do not increase as fast as assumed, members retire later than assumed, etc. Favorable experi en ce means actual results produce actuarial liabilities not as large as projected by the actuarial assump t ions . Losses are the result of unfavorable experience, i.e., actual results that produce Unfunded Actuarial Accrued liab il ities which are larger than projected. Funded Ratio. The rat io of the Actu ar ial Value of Assets to the Ac t uarial Accrued Liability . GASB. Governmental Accounting St andards Board. GASB No . 67 and GASB No. 68. These are the governmental accounting standards that set the accounting rules for public retirem e nt plans and the employers that sponsor or contribute to them. Statement No. 67 sets the accounti g rules for the plans themselves, while Statement No. 68 sets the accounting rules for the employers that sponsor or contribute to public retirement plans. Normal Cost. The annual cost assig ned, under the Actuarial Cost Method, to the current plan year. So uth Miami Pensio n Plan 19 67 135 Open Amortization Period. An open amortization period is one which is used to determine the Amortization Payment but which does not change over time. In other words, if the initial period is set as 30 years, the same 30-year period is used in determining the Amortization Period each year. In theory, if an Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability, the UAAL will never completely disappear, but will become smaller each year, either as a dollar amount or in relation to covered payroll. Unfunded Actuarial Accrued Liability . The difference between the Actuarial Accrued Liability and Actuarial Value of Assets . Valuation Date. The date as of which the Actuarial Present Value of Future Benefits are determined . The benefits expected to be paid in the future are discounted to this date . Sou th M iam i Pension Plan 20 68 Open Amortization Period. An open amortization period is one which is used to determine the Amortization Payment but which does not change over time. In other words, if the initial period is set as 3D years, the same 3D-year period is used in determining the Amortization Period each year. In theory, if an Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability, the UAAL will never completely disappear, but will become smaller each year, either as a dollar amount or in relation to covered payroll. Unfunded Actuarial Accrued liability. The difference between the Actuarial Accrued Liability and Actuarial Value of Assets. Valuation Date. The date as of which the Actuarial Present Value of Future Benefits are determined . The benefits expected to be paid in the future are discounted to this date. South Miami Pension Plan 20 68 136 Retiremen t Consu ltin g May 23, 2019 Mr. Alfred Rivero! Finance Di rector City Hall, 1st Floor 6130 Sunset Drive South Miami, Florida 33143 Re: Actuarial Study as of October 1, 2018 South Miami Pension Plan Dear Alfred: P: 954 .527.1616 I F: 954.525 .0083 www.grsconsu lting.com As re ques ted, we have performed an Actuarial Study as of October 1, 2018 to determine the minimum required annual cont r ibution of amending the normal retirement eligibility and vesting provisions for the Administration Management Service Class (AMSC) under the South Miami Pension Plan (P lan). Background-Currently the Pl an provides AMSC members the fo llowing normal retirement elig i bility and vesting provision s: ► No rmal Retirement elig i bi lity upon the earlier of: (a) Attainment of age sixty-five (65) and completion of three (3) years of Credited Service (b) Completion of thirty-three (33) years of Credited Service regardless of age ► Vesting -100% vesting upon comp letion of three (3) years of Credited Service Proposed Ordinance -We understand the City is interested in an analysis of amending the normal retiremen t eligibility and vesting provisions as follows: Scenario 1 ► Normal Retirement eligibi l ity upon the earlier of: (a) Attainment of age sixty-two (62) and completion of five (5) years of Credited Service (b) Completion of thirty-three (33) years of Credited Service regardless of age ► Vesting -100% vesting upon completion of five (5) years of Credited Service Scenario 2 ► Normal Retirement eligibility upon the earlier of: (a) Attainment of age sixty (60) and completion of five (5) years of Credited Service R etiremen t Consu lting May 23, 20 1 9 Mr. Alfred Riverol Finance Director City Hall, 1st Floo r 6130 Sunset Drive South Miami, Florida 33143 Re: Actuarial Study as of October 1, 2018 South Miami Pension Plan Dear Alfred: P: 954.527.1616 I F: 954.525.0083 www.grscons ulting .com As requested, we have performed an Actuarial Study as of October 1, 2018 to determine the minimum required annual cont r ibution of amending the normal retirement eligibility and vesting prov is ions fo r the Administration Management Service Class (AMSC) under the South Miami Pension Plan (P lan). Background -Currently the Pl an provides AMSC members the following normal retirement elig i bility and vesting provision s: ~ No rma l Retirement elig i bi lity upon the earlier of: (a) Attainment of age sixty-five (65) and completion of three (3) years of Credited Service (b) Completion of thirty -t hree (33) years of Credited Service regardless of age ~ Vesting -100% vesting upon completion of three (3) years of Credited Service Proposed Ordinance -We understand the City is interested in an analysis of amending the normal retiremen t eligibility a nd vesting provisions as follows: Scenario 1 ~ Normal Retirement eligibi l ity upon the earlier of: (a) Attainment of age sixty-two (62) and completion of five (5) years of Credited Service (b) Completion of thirty-t hree (33) years of Credited Service regardless of age ~ Vesting -100% vesting upon completion of five (5) years of Credited Service Scenario 2 ~ Normal Retirement eli gibility upon the earlier of: (a) Attainment of age sixty (60) and completion of five (5) years of Credited Service 137 Mr. Alfred Riverol May 23, 2019 Page Two {b) Completion of thirty-three {33) years of Credited Service regardless of age ► Vesting -100% vesting upon completion of five (5) years of Credited Service Results -The attached Exhibit sets out the key financial results of our Actuarial Study for each Scenario for the AMSC Group. The following sets out the projected annual increase in minimum required annual contribution as a dollar amount and as a percentage of expected AMSC covered payroll ($1,004,692). 1 Increase in tern Annual Required Contribution Scenario 1 -Normal retirement eligibility upon the earlier of age 62 and completion of 5 years of Credited Service or completion of 33 years of Credited Service. 100% vesting upon completion of 5 years of Credited Service Scenario 2 -Normal retirement eligibility upon the earlier of age 60 and completion of 5 years of Credited Service or completion of 33 years of Credited Service. 100% vesting upon completion of 5 years of Credited Service $5,306 {0.5%) $14,056 {1.4%) Actuarial assumptions and methods, Plan provisions and member census data -The actuarial assumptions and methods, financial data and employee census data employed for purposes of our Actuarial Study are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2018 Actuarial Valuation with the following exception: ~ Age Current Scenario 1 Scenario 2 Less than 33 years of service 55 -59 10% 10% 10% 60 -61 10% 10% 25% 62 -64 25% 35% 35% 65 -66 25% 35% 35% 67 & above 100% 100% 100% With 33 or more years of service Under62 25% 25% 25% 62 -66 25% 35% 35% 67 100% 100% 100% 70 Mr. Alfred Riverol May 23, 2019 Page Two (b) Completion of thirty-three (33) years of Credited Service regardless of age ~ Vesting -100% vesting upon completion o f five (5) years of Credited Service Results -The attached Exhibit sets out the key financial results of our Actuarial Study for each Scenario for the AMSC Group. The following sets out the projected annual increase in minimum required annual contribution as a dollar amount and as a percentage of expected AMSC covered payroll ($l,004,692). I Increase in tern Annual Required Contribution Scenario 1 -Normal retirement eligibility upon the earlier of age 62 and completion of 5 years of Credited Service or completion of 33 years of Credited Service . 100% vesting upon completion of 5 years of Credited Service Scenario 2 -Normal retirement eligibility upon the earlier of age 60 and completion of 5 years of Credited Service or completion of 33 years of Credited Service . 100% vesting upon completion of 5 years of Credited Service Actuarial assumptions and methods, Plan provisions and member census data -The actuarial assumptions and methods, financial data and employee census data employed for purposes of our Actuarial Study are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2018 Actuarial Valuation with the following exception: ~ Age Current Scenario 1 Scenario 2 Less than 33 years of service 55 -59 10% 10% 10% 60 -61 10% 10% 25 % 62 -64 25% 35% 35% 65 -66 25% 35% 35% 67 & above 100% 100% 100% With 33 or more years of service Under62 25% 25% 25% 62 -66 25% 35% 35% 67 100% 100% 100% 70 138 Mr. Alfred Rivero! May 23, 2019 Page Three The Plan provisions emp loyed for purposes of our Actuarial Study are t he same Plan provisions uti l ized in the Octo be r 1, 2018 Actuar ial Valuation with the exception of the proposed changes described above. Other Considerations-Under Governmental Accounting Standards Board (GASB) Statemen t Number 68, we und erstand the full cost of benefit changes must be recognized immediate ly in pension expen se (account i ng not funding). Th is Actua r ia l Study is intende d to describe the estimated future financial effects of the proposed benefi t changes on t he Plan and is not intended as a r ecommendation in favor of the benefit changes nor in opp osition to the benefit changes. If all actua ri al assump t ions are met and if all current and future minimum required contributio ns are paid, Plan as se ts w i ll be sufficient to pay all Plan benefits, future contributions are expected to rema i n relatively stable as a percent of payroll and the funded status is expected to i mprove . Plan min i mum requi red contributions are determined in comp liance with t he req ui rem en ts of t he Florida Protecti on of Pub l ic Employee Retirement Benefi t s Ac t with normal cost determ i ned as a level percent of covered payroll and a level dollar amortization payment usi ng an init ial amortiz ation per iod of 25 years. The Unfunded Actuarial Accrue d Liabi l ity (UAAL) may not be appropriate for assessing the sufficiency of Plan assets to me et the estimated cost of settling benefit obligations but may be approp r iate fo r as se ss i ng th e need for or t he amount of future con t r i butions. These calculations are based upon assumptions regarding future events . However, the Plan's long t erm costs will be det ermined by actual future events , which may differ materially from the assum pti o ns made . These calculat ions are also based upon present and propose d Plan provisions tha t are outlined or referenced in this Actuar ial Study. If you have reason to believe th e assumptions used are unreasonable, the Plan provisions ar e incorrectly described or referenced , important Plan provis ions relevant to this Actuarial St udy are not descr i bed or that conditions have changed since t he calculations were made , you should contact t he undersi gned prio r t o r ely i ng on i nformation i n this Actuar ial Study. If you have reason t o be l ieve th at the information provided in t his Actuarial Study is i naccura t e, or is in any way inc om plete, or if you need further information in order to make an i nformed decision on the su bject ma tter of th is report, please contact the unders igned prior to making such decision . Future actuarial measurements may differ significan tly from t he current measuremen t s presented in this report due to such factors as the following : Plan experience differing from 71 Mr. Alfred Riverol May 23,2019 Page Three The Plan provisions employed f or purposes of our Actuarial Study are the same Plan provisions utilized in the Octo be r 1, 2018 Actuarial Valuation with the exception of the proposed changes described abo ve. Other Considerations -Under Governmenta l Accounting Standards Board (GASB) Statement Numbe r 68, we und erstand the full cost of benefit changes must be recognized immediate ly in pension expens e (accounting not funding). Th is Ac tuarial Study is intended to describe the estimated future financial effects ofthe proposed benefit changes on t he Plan and is not intended as a recommendation in favor of the benefit changes nor in opp osition to the benefit changes. If all actuaria l assumptions are met and if all current and future minimum required contributions are paid, Plan ass ets will be sufficient to pay all Plan benefits, future contributions are expected to remain re latively stable as a percent of payroll and the funded status is expected to improve. Plan minimum required contributions are determined in comp liance with the requirem en ts of the Florida Protection of Pub l ic Employee Retirement Benefits Ac t with normal cost determined as a level percent of covered payroll and a level dollar amortization payment usi ng an initia l amortization period of 25 years. The Unfunded Actuarial Accrued Liability (UAAL) may not be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing th e need for or the amount of future contributions. These calculations are based upon assumptions regarding future events. However, the Pla n's long te rm costs will be determined by actual future events, which may differ materially from the assumptions made. These calculations are also based upon present and proposed Plan provisions that are outlined or referenced in this Actuarial Study. If you have reason to believe th e assumptions used are unreasonable, the Plan provisions ar e incorrectly described or referenced, important Plan provisions relevant to this Actuarial Study are not described or that cond itio ns have changed since the calculations were made, you should contact the undersi gned prior to re ly i ng on information in this Actuarial Study. If you have reason t o believe th at the information provided in this Actuarial Study is inaccurate, or is in any way inc om plete, or if you need further information in order to make an i nformed decision on the su bject matter of th is report, please contact the undersigned prior to making such decision . Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from 71 139 Mr. Alfred Rivero! May 23, 2019 Page Four that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period) and changes in Plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements . This Actuarial Study should not be relied on for any purpose other than the purpose described in the primary communication . Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results . This Actuarial Study has been prepared by actuaries who have substantial experience valuing public employee retirement systems . To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date . All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Actuarial Study may be provided to parties other than the City only in its entirety and only with the permission of an approved representative of the City. The signing actuaries are independent of the Plan sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us . Sincerest regards, ~.::s~~ Lawrence F. Wilson, A.S .A., E.A. Senior Consultant and Actuary Enclosure Retirement Consulting :Ju,+ &vu-a/Ud._ Jennifer M . Borregard , E.A. Consultant and Actuary 72 Mr. Alfred Riverol May 23,2019 Page Four that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation ofthe methodology used for these measurements (such as the end of an amortization period) and changes in Plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements . This Actuarial Study should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results . This Actuarial Study has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date . All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Actuarial Study may be provided to parties other than the City only in its entirety and only with the permission of an approved representative of the City. The signing actuaries are independent of the Plan sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concerning the above or if we may be of further ass istance with this matter, please do not hesitate to contact us . Sincerest regards, ~.0 .~~ Lawrence F. Wilson, A.S .A., E.A. Senior Consultant and Actuary Enclosure Retirement Consu lting ;r+ ~(j~ Jennifer M . Borregard , E.A. Consultant and Actuary 72 140South Miami Pension Plan Actuarial Studies as of October 11 2018 -AMSC Group Actuarial Valuation Scenario 1 Scenario 2 Normal Retirement eligibility-the earlier of Normal Retirement eligibility-the earlier of Age 62 with 5 years of Credited Service or Age 60 with s years of Credited Service or 33 years of Credited Service regardless of age 33 years of Credited Service regardless of age 100% vested upon 5 years of Credited Service 100% vested upon 5 years of Credited Service Cost %of Annual Cost %of Annual Cost %of Annual Data Compensation Data Compensation Data Compensation A. Participants 1. Active employees 8 N/A 8 N/A 8 N/A 2. Terminated vested D N/A 0 N/A D N/A 3. Receiving benefits 2 N/A 2 N/A 2 N/A 4. Annual payroll of active employees s 1,004,692 100.0% s 1,004,692 100.0% s 1,004,692 100.0% B. Present Value of Future Benefits s 2,533,146 252.1% s 2,617,530 260.5% s 2,669,588 265.7% C. Total Normal Costs s 128,124 12.8% s 125,999 12.5% s 130,346 13.0% D. Total Actuarial Accrued Liability s 1,959,405 195.0% s 2,047,121 203.8% $ 2,096,772 208.7% E. Smoothed Value of Assets s 1,284,535 127.9% s 1,284,535 127.9% $ 1,284,535 127.9% F. Unfunded Actuarial Accrued Liability s 674,870 67.2% s 762,586 75.9% $ 812,237 80.8% G. Member Cost s 70,328 7.0% $ 70,328 7.0% $ 70,328 7.0% H. City Cost (includes expenses) s 120,619 12.0% $ 125,925 12.5% s 134,675 13.4% I. Increase/ (Decrease) in City Cost N/A N/A s 5,306 0.5% $ 14,056 1.4% 73 nrepared: May 23, 2019 Page 1 South Miami Pension Plan Actuarial Studies as of October 1. 2018 -AMSC Group Actuarial Valuation Scenario 1 Scenario 2 Normal Retirement eligibility -the earlier of Normal Retirement eligibility -the earlier of Age 62 with 5 years of Credited Service or Age 60 with 5 years of Credited Service or 33 years of Credited Service regardless of age 33 years of Credited Service regardless of age 100% vested upon 5 years of Credited Service 100% vested upon 5 years of Credited Service Cost % of Annual Cost % of Annual Cost % of Annual Data Compensation Data Compensation Data Compensation A. Participants 1. Active employees 8 N/A 8 N/A 8 N/A 2. Terminated vested 0 N/A 0 N/A 0 N/A 3. Receiving benefits 2 N/A 2 N/A 2 N/A 4. Annual payroll of active employees S 1,004,692 100.0% S 1,004,692 100.0% S 1,004,692 100.0% B. Present Value of Future Benefits S 2,533,146 252.1% S 2,617,530 260.5% S 2,669,588 265.7% C. Total Normal Costs S 128,124 12.8% S 125,999 12.5% S 130,346 13.0% D. Total Actuarial Accrued Liability S 1,959,405 195.0% S 2,047,121 203.8% $ 2,096,772 208.7% E. Smoothed Value of Assets S 1,284,535 127.9% S 1,284,535 127.9% $ 1,284,535 127.9% F. Unfunded Actuarial Accrued Liability S 674,870 67.2% S 762,586 75.9% $ 812,237 80.8% G. Member Cost S 70,328 7.0% $ 70,328 7.0% $ 70,328 7.0% H. City Cost (includes expenses) S 120,619 12.0% $ 125,925 12.5% S 134,675 13.4% I. Increase / (Decrease) in City Cost N/A N/A S 5,306 0.5% $ 14,056 1.4% 73 nrepared: May 23, 2019 Page 1 141 MIAMI DAILY BUSI N ESS REVI EW Published Da ily except Saturday . Sunday and Legal Holi days Miam,, Mram ~Dade Co unly Florida STATE OF FLO RIDA COUN TY OF MIA MI-D ADE : Befo re the unde rsi gn ed authority personally app eared GUIL LERMO GARC IA, who on oath says tha t he or she is lhe DIR ECTOR OF OPERATIONS , Lega l Notice s of th e Miami Dai ly Business Review ftk/a Miam, Revie w, a dai ly (e xcept Sa turday , Sunday and Le gal Holida ys) newspaper, pub li shed at Miam i in Miami -Dade County , Flo ri da , that the attached cop y of advert ise ment. be ing a Legal Advertisement of No tice in the matte r of NOTICE OF PU BLIC HEARI NGS· CIT Y OF SOU TH MIAMI . JUN . 18,2019 in the XXXX Coun , was published in said new spaper in the issu es or 06/07/2019 Affiant fu rther sa ys that t11e said Miami Da ily Bu siness Review rs a news paper publ ishe d at M,am,. ,n sa ,d M1am 1-Dade County , Florida and that the said new spap er has heretofor e been cont inuously publish ed ,n said M,am ,-Dade Cou nty. Florid a each day (except Sa turda y, Sunday and Legal Holidays) and ha s been entered as second class marl ma ue r al the post office in Miam i in sai d Miam i-Da de Cou nty , Flori da , fo r a period or one year nex t preced ing th e first publrcalion of the att ach ed copy of advertisement: and affiant furt her says that he 01 she has nei ther paid no r promised any person . fir m or co rpora tion any di scount. rebat e, cornm1ss1on or refund fo r the purpose of securin g this advertisem en t fo r pub hca tron 1n the said GUILL ER MO GARC IA person ally known 10 me .. -:·:::~~•~·-. BARBAR/\ THOMAS (::-'. '\\ Com~t ission # GG 121171 \~-~-:# ExpirE;S November 2, 2021 ·<r,r,'~f.~~t-' lk.ndcd TIVu Troy Fain Insurance t().)-385-7li t9 CITY OF OUTH M NOTICE OF PUBLIC HEARINGS NOTICE IS HEREBY given that the City CommiSS1on of the City of South Miami Florida will conduct Publ ic Hearings et its regular City Commission meeting scheduled for Tuesday, June 18, 201 9, beginning at 7:00 p.m., in the City Commission Chambers, 6130 Sunset Drive, to consider the following items: 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 St ale, County and Municipal Employees , AFL-CIO, City Employees Local 3294, the Florida State Lodge, Fraternal Order of Police, Inc., and the Dad e County Police Benevolent Association, Inc. by creating Section 16-28 • Deferred Retirement Option Plan l 'DROP') and amend ing Section 16-12 to define DROP members. An Ordinance amending the South Miami Pension Plan to implement the Collective Bargaining Agreements between the City of South Miami and the American Federal ion of State, Coun ty an d Municipal Empl oyees, AFL-CIO, City Employees Local 3294 , the Flo rida State Lodge, Fraternal Order of Police, Inc., and the Dade Co unty Pol ice Benevolent Association, In c. as wen as Implement Changes for Members who are not covered under a Collective Bargaining Agreement, by amending Section 16-12, 'Definitions'; by amending Section 16-13, 'Eligibility'; by amending Section 16·14, 'Pension benefits and retirement dates'; by amending Section 16-17, 'Terminati on "; and by amending Section 16-19, Co ntributions'. ALL interested parties are Invited to attend and will be heard. For further information , please contact the City Clerk's Office at; 305 -663-634 0. Nke nga A. Payne, CMC Crty Clerk Pursuant to Florida Statutes 286.010 5, the City hereby advises t he publi c that if a person decides to appeal any decision made by this Board , Agency or Commission with respect to any matter considered at its meeting or hearing, he or she will need a record of the proceedings, and that fo r such purpose, affected person may need to ensure that a verbatim record of the proceedings is made which record includes the testimony and evidence up on which the appeal is to be based. 6(7 19-126/0000405588 M 74 MIAMI DAILY BUSINESS REVIEW Published Da lly except Saturday. Sunday and Legal Holidays Miami, M l a m~Dade Counly Fl oflda STATE OF FLORIDA COUNTY OF MIAMI·DADE : Befo re the unde rsi gned authorily personally appea red GUIL LERMO GARC IA, who on oat h says tha t he or she is Ihe DIR ECTOR OF OPERATIONS , Lega l Notices of Ihe Miami Dai ly Busi ness Review flk/a Miami Revie w, a dal ly (except Sa turday , Sund ay and Le gal Holrdays) newspaper, pub li shed at Miami in Miami ·Dade Co unty , Ftonda , that Ih e attached copy of advertise men t. being a Legal Advertisement of No lice in the mailer of NOTICE OF PUBLIC HEARI NGS· CIT Y OF SOUT H MIAMI · J UN . 18,2019 in the XXXX Coun , wa s publ ished in said newspaper in th e is sues of 061071201 9 Affiant fu nher sa ys that tile sa id Miami Da ily Bus iness Review IS a newspaper publ ished at Miami . In said Mlam l·Dade County , Florida and that the sa id newspaper has heretofo re been cont inuously publish ed In sa id Mlaml ·Dade Co unty . Flonda each day (exce pt Sa tu rda y, Sund ay and Legal Holidays) and has been entered as second class mall malter at th e post offi ce in Miami in said Miami·Dade Cou nty, Flonda , for a penod Of one year next preced ing th e fi rst publlcatron of the alt ached copy of advertisement: and affi ant furth er says tha t he 0 1 she has neither paid nor promised any person . flf m or corporation any discount. rebat e, commiSSion or refund fo r the purpose of securing this adverttsemen t fo r publication In the said GUILLERMO GARCIA persona lly known 10 me "'~';~:~~"!:;'" BARBARA THOMAS {';: .... /l. .. ::\ Com~t i ssion # GG 121171 ~~·.~·il E:.xpirf:5 November 2,2 02 1 '<f.r..::~;;~,:, .. , Bonded Thtu Troy Fa in Insurance el).)·385·71i1 9 CITY OF OUTH M NOTICE OF PUBLIC HEARINGS NonCE IS HEREBY given that the City CommiSSIon of the City of South MiamI. Florida will conduct Public Hearings at its regUlar City Commission meeting schedu led for Tuesday, Jun e 18, 2019, beginning at 7:00 p.m., in the City Co mm ission Chambers, 6130 Sunset Drive, to consider the following items: An Ordinance amending the South Miami Pension Plan to implement the Collective Bargaining Agreeme nts between the City of South Miami and the American Federation of Stale, County and Municipal Emp loyees, AFL·C IO , City Employees Local 3294, the Rorlda State Lodge, Fraternal Order of Police, Inc ., and the Dade County Police Benevolent Associatio n, Inc. by creating Section 16-28 . Deferred Retirement Option Plan ('DROP') and amending Secti on 16-12 to define DROP members. An Ordinance amending the South Miami Pension Plan to implement the Collective Bargaining Agreement s between the City of South Miami and the American Federation of Sl ate, Coun ty an d Municipa l Employees, AFL-CIO, City Employees Local 3294, the Flo rida Stat e Lodge, Fratemal Order of Police, Inc., and the Dade County Police Benevolent Association, Inc . as well as Implement Changes for Members who are not covered under a Collective Barg aini ng Agreement, by amending Section 16-12, 'Definitio ns '; by amendi ng Section 16-13, 'Bigi bility'; by amending Section 16-14, 'Pension benefits and retirement dates '; by amendi ng Seclion 16-17, 'Te rmination '; and by amending Section 16-19 , Co ntributions '. ALL Interested parties are invited to attend and will be heard. For further information , please contact the City Clerk's Office at: 305-663-6340 . Nkenga A. Payne, CMC City Cieri< Pursuan t to Rorlda Statutes 286.0105, th e City hereby advises the publi c that if a person decides to appeal any decision made by Ihis Board, Agency or Commission with respect to any matter considered at its meeting or hearing, he or she will need a record of the proceedi ngs, and that fo r such purpose, affected person may need to ensure that a verbatim record of the proceedings is made which record inclu des the testimony and evide nce upon which the appeal is to be based. 617 19-1 261000040558BM 74 142265E I I NEIGHBORS I SUNDAY JUNE 9 1019 MIAMIHERALO.COM CITY OF SOUTH MIAMI NOTICE OF PUBLIC HEARlNGS NOTICE IS HEREBY given that the City Commission or the City or South Miami, Florida will conduct Public I !caring\ al it~ regular City Commission meeting scheclulccl for Tuesday, June 18, 2019, beginning at 7:00 p.m., in the City Commission Chambers. 6 I JO Sunset Drive, lo consider 1hc following items: J\n Ordinance amending the South Miami Pcn\ion Plan lo implement the Collcclivc Bargaining Agreement~ between the City of South Miami and the American f-edcratiun of Swtc. County and Municipal Employees. AFL-ClO. 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 clelinc DROP members. An Ordinance amending the South Miami Pension Plan to implement the Collective Bargaining Agreements between the City or South Miami and the American r-ccleralion or Stale, County and Municipal Employees, AFL-CIO, City Employees Local 3294. the Florida Stale Lodge, Fraternal Order or Police. Inc .. and the Dade County Police 1:3cnc11olenl Association, Inc. as well as Implement Changes for Members who arc nol covered under a Collective Bargaining Agreement; by amending Section 16-12. "Definitions•·; by amending Section 16-13. "Eligibility"; by amending Section 16-14, "Pension benefit~ and retirement dates•·: by amending Section 16-17, "Termination"; and by amending Section 16-19, Contributions". ALL interested parties arc invited 10 attend and will be beard. For further information. plca~e contact the City Clerk's Office at: ]05-663-6340. Nkcnga A. Payne, CMC ity Clerk Pm'luunl It> Hnrnl.1 S1i11u1c,; :!86.0I05. lhc City hereby advi,c':l the puhlu.: that 1f ;.1 pcP\Un dcculc, 10 appcJI any tlcc1,1on made by thi, Hoard. Agcnc) or Comnw,,1011 with ,c..,pcct to any mutter con"idcrcd ;n 11, mrcung or hearing. he nr ,he will need n rccnrd ,1f the pmcccchngi., and tiMI for ,ud1 purpo~c. ;11Tct1cd r-.c1,011 m.ly need 10 cn-.urc 1ha1 a vc,h:ium 1i.:cu11l ur rhc pmcccding~ i, maclc wl11ch tctnu-l 111tl11dc, the 1c,111nnny ,ind C\'1dcncc upon \d11ch lhc appc.111, to he hobcd. .?' ~ / South Florida shoppers will have to resort to paying shipping again now lhat Topshop. the trendy UK retailer. is closing. After only two years, Aventura Mall's Topshop store is closing. That means big sales BY AMANDA ROSA arvsa@miamihtrald.com Less than two years after fast-fashion fans rejoiced at the opening of the only Topshop in Florida, the two-story mega store in Aventura Mall will close. Sales at Topshop and Topman, the brand's joint menswear store, began last week after Arcadia Group, the brand's parent compa-ny, announced a plan to restructure after filing for bankruptcy. There is no official closing dale as of now. Topshop and Topman, which opened Nov. 20, 2017, was the brand's 11th brick-and-mortar store in the U.S. and the only one in Florida. It was part of the mall's expansion that included the return of Zara, a 93-foot tall slide and several bougic restaurants. Now, black and red signs hanging from the ceiling read "STORE CLOSING SALE!" Certain racks arc on sale, including for up to 50 per-cent off, while the rest of the store is normal price. Customers can pay $6 for t11be tops, $10 for a bikini and $30 for "mom jeans" that used to cost $80. But don't pull out your credit card just yet. The store is only accepling payments in cash. Paper signs that read "CASH ONLY" arc taped on the store's glass walls and at the cash registers. The store's manager said the cash only policy "comes from corporate" and he did not know a reason as to why. About 50 Arcadia Group brand stores arc set 10 close, according lo the BBC. Topshop and Topman's websites are advertising an up to 50 percent off sum-mer sale while showing no signs of U.S. stores shutting down. Arcadia Group CEO Ian Grabiner blamed online competition and changing consumer habits as part of the company's struggles, according to CNN. "This has been a tough but necessary decision for the business," Grabincr said in a statement. 75 26SE I I NEIGHBORS I SUNDAY JUNE 9 2019 MIAMIHERAlD.(OM CITY OF SOUTH MIAMI NOTICE OF PUBLIC HEARINGS 'onCE IS HEREBY given that the City Commission of the City of South Miami, Florida will conduct Public I-Icaring~ at it, regular ity Commi~sion meeting scheduled for Tuesday. June IS, 2019, beginning at 7:00 p.m., in the City Commission Chambers. 6130 Sunset Drive. to c.:onsidcr the following items: n Ordinancc amending the SOllth iami Pen~ion Plan to impl m nl the olkctivc Bargaining Agrcement~ between the City of South Miami and the American Federation of State. OllI1ty and MUnicipal Employees. AFL-C10. City Employees Local 3294. the Florida State Lodge, Fraternal Order of Police, Inc., and the Dade ounty Police Benevolent Association. Inc. by cr 'ating Section 16-28 -Deferred Retircment Option Plan ("DROP") and amending Section 16-12 to define DROP members. An Ordinance amending the South Miami Pension Plan to implement the Collective Bargaining Agreements between the City of Somh Miami and the American Federation of Slate, County and Municipal Employees. AFL-ClO, ity Employecs Local 3294. the rlorida State Lodge, Fraternal Order of Police. Inc .. an I thc Dade County Police Benevolent Association, Inc. as well as Implement Changes for Members who arc not covcrcd under a Collcctive Bargaining Agreement; by amending Section 16-12. "Definitions"; by amcnding Section 16-13. "Eligibility"; by amending Section 16-14, "Pension benelit~ and retirement dates"; by amending Section 16-17, "Termination"; and by amending Section 16-19, Contributions". ALL intercsted parties are invited 10 attend and will he heard. For furlher information. plea~e contact the Cily lerk's Office at: 305-66.1-6340. kenga A. Payne, CMC City lerk Pur~lI:U11111 HIlIHI.1 Slall1tC\ 286.0IUS.lhc 'IIY hereby ativi,c., the puhlle that 11.1 pcr'lIll detale,", 10 appc.11 :m) uecl",on Ill.ide hy thi!<. BO~1rd. Agency or Cornllll',1011 wllh rc ... pccl 10 any m.Hler cnn'Oidcrcd:11 II ... lllcClIng nr hC~lrIng, he elr ,he Will need a record I)r Ihe proct:cchng'O, and th.lt ror ... uch plllpmC, ,1!Teeled pC' ... lln m.IY IIced hi ell'IIIC Ihal jJ \Crh.11II1I IClWtl ur Ihe pHlcccdingo;; , ... I1l'HIr.: which retuld IIldudc, the le"lllmtHl) ,lnd cvu_h:ncc upon \\ hlch Ihe ,IJlpe.11 h tl) he ha\cd. South Florida shoppers will have to resort to paying shipping again now that Topshop. the trendy UK retailer. Is closing. After only two years, Aventura Mall's Topshop store is closing. That means big sales n\' AMANDA ROSA aroJ'a@miamih~rald.(om Less than two years after fast-fashion fans rejoiced at the opening of the only Topshop in Florida, the tWO-SIOry mega store in Avenlura Mall will close. Sales at Topshop and Topman, the brand's joint menswear store, began last week after Arcadia Group, the brand's parent compa-ny, announced a plan to restructure after filing for bankruptcy. There is no official closing date as of now. Topshop and Topman, which opened Nov. 20, 20t7, was the brand's 11th brick-and-mortar store in the U.S. and the onty one in Florida. It was part of the mall's expansion that included the return of Zara, a 93-foot tall slide and several bougie restaurants. Now, black and red signs hanging from the ceiling read "STORE CLOSING SALE'" Certain racks are on sale, including for up to 50 per-cent off, while the rest of the store is normal price. Customers can pay 56 for tube tops, 510 for a bikini and $30 for "mom jeans" that used to cost $80, But don't pull out your credit card just yet. The store is only accepting payments in cash. Paper signs that read "CASH ONLY" arc taped on the store's glass walls and at the cash registers. The store's manager said the cash only policy "comes from corporate" and he did not know a reason as to why. About 50 Arcadia Group brand stores arc set to close, according to the BBC. Topshop and Topman's websites are advertising an up to 50 percent off sum-mer sale while showing no signs of U.S. stores shutting down. Arcadia Group CEO Ian Grabiner blamed online competition and changing COnSumer habits as part of the company's struggles, according to CNN. "This has been a tough but necessary decision for the business, /I Grabincr said in a statement. 75 143 THE CITY OF PIFASANT LIVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: The Honorable Mayor & Members of the City Commission From: Steven Alexander, City Manager Date: June 18, 2019 Subject: Ordinance amending the South Miami Pension Plan Approved on First Reading, June 4, 2019 -Actuarial Impact Statement SUMMARY The savings provided by adopting the recommended Ordinance amending the City's Pension Plan is an annual estimated total savings amount of $15,434. BACKGROUND On June 4, 2018, the City Commission approved, with amendments, on first 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 of a proposed change in the provisjons of a local retirement system certified by an enrolled actuary. On June 14, 2019, GRS issued their Actuarial Impact Statement which may be found attached. The Actuarial Impact Statement was prepared reflecting the impact to all classes Police Lower and Upper Units, the General Employees and Administrative Management Service Class (AMSC). The Florida Administrative Code (60T-1.004(3)(a)) states that an Actuarial Impact Statement must be certificated and signed and dated by the Plan Administrator and contain the following information: a. A description of the proposed amendment and a statement that the actuary was provided the information necessary to evaluate the proposed amendment; b. An estimate of the cost of implementing the amendment, signed and dated by an enrolled actuary, which discloses, at a minimum, sufficient information on both the before and after amendment basis, so that another actuary, unfamiliar with the situation, would be able to appraise the estimate. If any actuarial assumptions, techniques or methods are also changed, additional information disclosing the effect of such actuarial changes must be provided; c. A statement indicating whether the proposed change is in compliance with Part VII, 76 Page 1 of 2 THE CITY OF PIFASANT LIVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-QFFICE MEMORANDUM To: The Honorable Mayor & Members of the City Commission From: Steven Alexander, City Manager Date: June 18, 2019 Subject: Ordinance amending the South Miami Pension Plan Approved on First Reading, June 4, 2019 -Actuarial Impact Statement SUMMARY The savings provided by adopting the recommended Ordinance amending the City's Pension Plan is an annual estimated total savings amount of $15,434. BACKGROUND On June 4, 2018, the City Commission approved, with amendments, on first 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 of a proposed change in the provis!ons of a local retirement system certified by an enrolled actuary. On June 14, 2019, GRS issued their Actuarial Impact Statement which may be found attached. The Actuarial Impact Statement was prepared reflecting the impact to all classes Police Lower and Upper Units, the General Employees and Administrative Management Service Class (AMSC). The Florida Administrative Code (60T-l.004(3)(a)) states that an Actuarial Impact Statement must be certificated and signed and dated by the Plan Administrator and contain the following information: a. A description of the proposed amendment and a statement that the actuary was provided the information necessary to evaluate the proposed amendment; b. An estimate of the cost of implementing the amendment, signed and dated by an enrolled actuary, which discloses, at a minimum, sufficient information on both the before and after amendment basis, so that another actuary, unfamiliar with the situation, would be able to appraise the estimate. If any actuarial assumptions, techniques or methods are also changed, additional information disclosing the effect of such actuarial changes must be provided; c. A statement indicating whether the proposed change is in compliance with Part VII, 76 Page lof2 144 Chapter 112, F.S. and Section 14, Article X of the State Constitution. No unit of local government shall agree to a proposed change in the retirement benefits or liabilities of a local system, unless the administrator of the system, prior to adoption of the change by the governing body, has issued a statement of actuarial impact of the proposed change upon the local retirement system prior to the last public hearing. Based directly on information from the City's Pension Plan Actuary, (GRS), and their Actuarial Impact Statement, the City can responcibly make the following statement. The savings provided by adopting the Ordinance amending the City's Pension Plan is; an annual total savings amount of $15,434.42. Below is a table which reflects the information based on GRS' Actuarial Impact Statement. PENSION IMPACT STATEMENT SUMMARY INFORMATION Description City Annual Required Contribution for Proposed Change Expected Payroll of Active Employees Before Change Expected Payroll of Active Employees After Change Difference Amount No Longer Contributing to the DC Defined Contribution (DC) Plan City % City's Savings Amount no longer needing to be Contributing Total Annual Estimated Savings ATTACHMENTS -Proposed Ordinance -June 14, 2019, GRS Actuarial Impact Statement -Res. No 146-01-11294-GRS Annual Aggregate Salaries $36,793 $6,721,049 $7,467,155 $746,106 7% $52,227.42 $15,434.42 Page 2of 2 77 Chapter 112, F.S. and Section 14, Article X of the State Constitution. No unit of local government shall agree to a proposed change in the retirement benefits or liabilities of a local system, unless the administrator of the system, prior to adoption of the change by the governing body, has issued a statement of actuarial impact of the proposed change upon the local retirement system prior to the last public hearing. Based directly on information from the City's Pension Plan Actuary, (GRS), and their Actuarial Impact Statement, the City can responcibly make the following statement. The savings provided by adopting the Ordinance amending the City's Pension Plan is; an annual total savings amount of $15,434.42. Below is a table which reflects the information based on GRS' Actuarial Impact Statement. PENSION IMPACT STATEMENT SUMMARY INFORMATION Description City Annual Required Contribution for Proposed Change Expected Payroll of Active Employees Before Change Expected Payroll of Active Employees After Change Difference Amount No Longer Contributing to the DC Defined Contribution (DC) Plan City % City's Savings Amount no longer needing to be Contributing Total Annual Estimated Savings ATTACHMENTS -Proposed Ordinance -June 14, 2019, GRS Actuarial Impact Statement -Res. No 146-01-11294 -GRS Annual Aggregate Salaries $36,793 $6,721,049 $7,467,155 $746,106 7% $52,227.42 $15,434.42 Page 20f2 77 145 Retirement Consult i ng June 14, 2019 Ms. Edemir K. Estrada Pension Administrator Gabriel, Roeder, Smith & Company One East Broward Blvd. Suite 505 Fort Lauderdale, Florida 33301-1804 Re: South Miami Pension Plan Actuarial Impact Statement Dear Edemir: P: 954.527.1616 F: 954.525.0083 www.grsconsulting.com As requested, we are pleased to enclose twelve (12) copies of our Actuarial Impact Statement as of October 1, 2018 for the proposed Ordinance under the South Miami Pension Plan (Plan) with the State of Florida (copy enclosed) prior to second reading . Background Currently General Employees hired on or after October 1, 2016 have ninety (90) days from date of hire to elect to participate in the Plan as a Tier 2 member (or as their respective Administration Management Service Class (ASMC) classification) or join the City's Defined Contribution (DC) Plan. General Employees hired prior to October 1, 2016 who were participating in the DC Plan as of October 1, 2016 had ninety (90) days from September 20, 2016 to elect to participate in the Plan as a Tier 2 member (or as their respective AMSC classification) or remain in the City's DC Plan. Currently ASMC membership is composed of employees who ho ld the following positions: J:l City manager J:l City attorney ):( City clerk J:l Assistant/ deputy city manager J:l Finance director/ chief financial officer J:l Chief administrative officer (currently finance officer manager) J:l Planning and zoning director J:l Building director J:l Director of public works J:l Chief of police J:l Parks and recreation director J:l Chief procurement officer (currently purchasing manager) Currently the Plan provides AMSC members the following normal retirement eligibility and vesting provisions: Retirement C onsulting June 14, 2019 Ms. Edemir K. Estrada Pension Administrator Gabriel, Roeder, Smith & Company One East Broward Blvd. Suite 505 Fort Lauderdale, Florida 33301-1804 Re: South Miami Pension Plan Actuarial Impact Statement Dear Edemir: P: 954.527.16 16 F: 954.525.0083 www.grsconsul ting .co m As requested, we are pleased to enclose twelve (12) copies of our Actuarial Impact Statement as of October 1, 2018 for the proposed Ordinance under the South Miami Pension Plan (Plan) with the State of Florida (copy enclosed) prior to second reading . Background Currently General Employees hired on or after October 1, 2016 have ninety (90) days from date of hire to elect to participate in the Plan as a Tier 2 member (or as their respective Administration Management Service Class (ASMC) classification) or join the City's Defined Contribution (DC) Plan. General Employees hired prior to October 1, 2016 who were participating in the DC Plan as of October 1,2016 had ninety (90) days from September 20,2016 to elect to participate in the Plan as a Tier 2 member (or as their respective AMSC classification) or remain in the City's DC Plan. Currently ASMC membership is composed of employees who ho ld the following positions: ):( City manager ):( City attorney ):( City clerk ):( Assistant / deputy city manager ):( Finance director / chief financial officer ):( Chief administrative officer (currently finance officer manager) ):( Planning and zoning director ):( Building director ):( Director of public works ):( Chief of police ):( Parks and recreation director ):( Chief procurement officer (currently purchasing manager) Currently the Plan provides AMSC members the following normal retirement eligibility and vesting provisions: 146 Ms. Edemir K. Estrada June 14, 2019 Page Two ► Normal Retirement elig i bility upon the earlier of: (a) Attainment of age si xty-five (65) and completion of three (3) years of Credited Service (b) Comple tion of thirty-three (33) years of Cred ite d Service regardless of age ► Vesting -100% vesting upon completion of three (3) years of Credited Service In addition, currently pol ic e lieu t enan ts and police captains member contributions are capped at twelve percent (12%) of earnings. Police office r s and sergeants member contributions are not capped. Proposed Ordinance -The proposed Ordinance : ► The City will shall hold an annual open enrollment period during which time employees who previou sly elected to enter the DC Plan may opt-out of the DC Plan and elect to pa rticipate in t he Plan as a Tie r 2 member (or as their resp ective AMSC . clas sification). ► The follow i ng positions are added to the AMSC classification: n Community redevelopment agency director J:l Pe rson nel manager J:l Pro j ect manager J:l Special assistant to t he manage r n Superintendent of ma i ntenance J:l Assistant d i rector of p arks and recreation ► AMSC Norma l Ret i rement eligibility upon the earlier of: (a) Attainment of age si xty (60) and completion of five (5) years of Credited Service (b) Comple t ion of thirty-three (33) years of Credi te d Service regardless of age ► AMSC Vesting -100% ve sting upon completion of five (5) years of Credited Service. AMSC members who ha ve completed three (3) years of Credited Service as of the effective date of the Ord i nance shall be 100% vested . ► Police officers and serge ants member contributions are capped at twelve percent (12%)"of earn i ngs as of October 1, 2018. Cost-The total impact of the proposed Ordinance results in an expected increase in the first year Net City Annual Required Contribution of $36,793 and results in an expected 79 Ms. Edemir K. Estrada June 14, 2019 Page Two ~ Normal Retirement elig ibility upon the earlier of: (a) Attainment of age si xty-five (65) and completion of three (3) years of Credited Service (b) Completion of thirty-three (33) years of Credited Service regardless of age ~ Vesting -100% vesting upon completion of three (3) years of Credited Service In addition, currently police lieu t enants and police captains member contributions are capped at twelve percent (12%) of earnings. Police officers and sergeants member contributions are not capped. Proposed Ordinance -T he proposed Ordinance: ~ The City will shall hold an annual open enrollment period during which time employees who previous ly elected to enter the DC Plan may opt-out of the DC Plan and elect to participate in the Plan as a Tier 2 member (or as their respective AMSC . classification). ~ The following positions are added to the AMSC classification: n Community redevelopment agency director n Personnel manager l:l Project manager l:l Special assistant to the manager l:l Superintendent of m ai ntenance l:l Assistant director of p arks and recreation ~ AMSC Normal Retirement eligibility upon the earlier of: (a) Attainment of age si xty (60) and completion of five (5) years of Credited Service (b) Completion of thirty-three (33) years of Credi t ed Service regardless of age ~ AMSC Vesting -100% ve sting upon completion of five (5) years of Credited Service. AMSC members who have completed three (3) years of Credited Service as of the effective date of the Ord i nance shall be 100% vested. ,.. Police officers and serge ants member contributions are capped at twelve percent (12 %rof earnings as of October 1,2018. Cost -The total impact of t he proposed Ordinance results in an expected increase in the first year Net City Annua l Required Contribution of $36,793 and results in an expected 79 147 Ms. Edemir K. Estrada June 14, 2019 Page Three increase in the first year expected Member Annual Required Contribution of $40,892 . Filing Requirements -We have prepared the Actuarial Impact Statement for filing with the State of Florida. Please note that this Statement must be signed and dated on behalf of the Board of Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated Actuarial Impact Statement are generally required to be filed with the State at the 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 We understand the State requires funding any increases in costs no later than the fiscal year next following the effective date of the Ordinance. Please forward a copy of the Ordinance upon passage at second reading to update our files . Actuarial assumptions and methods, Plan provisions, financial data and member census data-The actuarial assumptions and methods, financial data and member census data employed for purposes of our Actuarial Impact Statement are the· same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2018 Actuarial Valuation unless otherwise specified herein: ~ Age Valuation Proposed Ordinance Less than 33 years of Credited Service 55 -59 10% 10% 60-61 10% 25% 62 -66 25% 35% 67 & above 100% 100% With 33 years or more years of Credited Service Under 62 25% 25% 62 -66 25% 35% 67 & above 100% 100% Based upon prior discussions with the City and prior Plan experience along with prior Actuarial Projection Studies, we have assumed 50% of current employees in the DC Plan and 80 Ms . Edemir K. Estrada June 14, 2019 Page Three increase in the first year expected Member Annual Required Contribution of $40,892 . Filinq Requirements -We have prepared the Actuarial Impact Statement for filing with the State of Florida. Please note that this Statement must be signed and dated on behalf of the Board of Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated Actuarial Impact Statement are generally required to be filed with the State at the 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 We understand the State requires funding any increases in costs no later than the fiscal year next following the effective date of the Ordinance. Please forward a copy of the Ordinance upon passage at second reading to update our files . Actuarial assumptions and methods, Plan provisions, financial data and member census data -The actuarial assumptions and methods, financial data and member census data employed for purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1,2018 Actuarial Valuation unless otherwise specified herein: ~ Age Valuation Proposed Ordinance less than 33 years of Credited Service 55 -59 10% 10% 60 -61 10% 25% 62 -66 25% 35% 67 & above 100% 100% With 33 years or more years of Credited Service Under 62 25% 25% 62 -66 25% 35% 67 & above 100% 100% Based upon prior discussions with the City and prior Plan experience along with prior Actuarial Projection Studies, we have assumed 50% of current employees in the DC Plan and 80 148 Ms. Edemir K. Estrada June 14, 2019 Page Four all eligible AMSC employees w i ll elect to join the Plan . However, we assume the Chief of Police wi l l elect to continue to participate i n the DC Plan. Demographic data for employees in the DC Plan and AMSC members was reported by the City. We understand the City attorney posit ion is currently filled by outside counsel and not by a City emp loyee. The Plan prov isions employed fo r pu r poses of our Ac tu ar ial Impact Sta t ement are the same Plan provis ions uti liz ed in the October 1, 2018 Ac t uar ial Valuation with the exception of the proposed changes descri bed above. Other Considerations-Under Governmental Accoun t ing St andards Board {GASB) Statement Num ber 68, we und ers t and the full cost of benefit changes must be recognized immediately i n pension expens e (ac counting not funding). Th is Ac t uarial Impact Statemen t is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendat ion i n favo r of th e benefit changes nor in opposition to the benefit changes. If all actuarial assumptions are m et and if all cur r en t and future m i nimum required con t r i bu t ions are pa id, Plan ass et s w i ll be sufficien t to pay all Plan benefits, future contr i butions are expected to remain r elatively stab le as a percent of payroll and the funded status is expected t o improve . Plan min i mum requi red contributions are determ i ned in comp l iance w ith the requ i reme nts of t he Florida Protection of Public Emp loyee Ret i rement Benefits Act and Police Office rs eti r ement Chap t er 185 wit h norma l cost de t ermined as a level percent of covered payroll and a level percent amortization payment using an initial amorti zation period of 25 years . The Unfunded Actuarial Accrue d Liabi l ity (UAAL) may not be appropriate fo r assessing the sufficiency of Plan assets to me et the estimated cost of settl i ng benefit ob l igations but may be appropriate for assessing the need for or t he amount of fu t ure contribut ions. The UAAL would be different if it re fl ected t he ma r ke t value of assets rather than the smoothed value of asse t s. These calculations ar e based up o n assumptions regarding future events. However, the Plan 's long term costs w i ll be de t ermined by actual future events, which may diffe r materially from the assumption s made . These calculations are also based upon present and proposed Plan prov isions that ar e outlined or referenced in th is Actuaria l Impact Statement. If you have r eason t o be l ieve the assumptions used ar e un r easonable, the Plan provis ions are incorrectly descr i bed or refe r enced, important Plan provis ions re levant t o this Actuarial 81 Ms. Edemir K. Estrada June 14, 2019 Page Four all eligible AMSC employees w i ll elect to jo in the Plan. However, we assume the Chief of Police will elect to continue to participate in the DC Plan. Demographic data for employees in the DC Plan and AM5C members was reported by the City. We understand the City attorney position is currently f illed by outside counsel and not by a City employee. The Plan provisions employed f or purposes of our Actuarial Impact Statement are the same Plan provisions utilized in the October 1, 2018 Actuarial Valuation with the exception of the proposed changes described above. Other Considerations -Under Governmenta l Accounting Standards Board (GASB) Statement Number 68, we understand the full cost of benefit changes must be recognized immediately in pensi on expense (accounting not funding). Th is Actuarial Impact Statemen t is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the benefit cha nges nor in opposition to the benefit changes. If all actuarial assumptions are met and if all current and future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, future contributions are expected to remain re latively stable as a percent of payroll and the funded status is expected to improve. Plan minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act and Police Officers Ret ireme nt Chapter 185 with normal cost determined as a leve l percent of covered payroll and a level percent amortization payment using an initial amortization period of 25 years . The Unfunded Actuarial Accrue d Liabil ity (UAAL) may not be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit ob l igations but may be appropriate for assessing the need for or the amount of future contributions. The UAAL would be different if it reflected the market value of assets rather than the smoothed value of assets. These calculations are based upon assumptions regarding future events. However, the Plan's long term costs will be de t ermined by actual future events, which may differ materially from the assumptions made. These calculations are also based upon present and proposed Plan provisions that are outlined or referenced in this Actuarial Impact Statement. If you have reaso n to believe the assumpt ions used are unreasonable, the Plan provisions are incorrectly described or refe r enced, important Plan provisions relevant to this Actuarial 81 149 Ms. Edemir K. Estrada June 14, 2019 Page Five Impact Statement are not described or that conditions have changed since the calculations were made, you should contact the undersigned prio r to relying on information in this Actuarial Impact Statement. If you have reason to bel ieve that the information provided in this Actuarial Impact Statement is inaccurate, or is in any way incomplete, or if you need further information in o r der t o make an informed decision on the subject matter of this report, please contact the unde rsigned prior to making such decision. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience d iffering from that anticipated by the economic or demographic assumptions; ch anges in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period) and changes in Plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements. Th is Actuarial Impact Statement should not be relied upon for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significant ly different results . This Actuarial Impact Statement has been prepared by actuaries who have substantial experience valuing pub l ic employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fa i rly presents the actuarial position of the Plan as of the valuation date . All calculations have been made in conformity with generally accepted actuarial princip les and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. Th is Actuarial Impact Statement may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent of the Plan sponsor. The und ers igned are Members of the American Academy of Actuaries and meet the Qual ificat ion Standards of the American Academy of Actuaries to render th e actuarial opinion contained herein . Retirement CoMulting 82 Ms. Edemir K. Estrada June 14, 2019 Page Five Impact Statement are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Impact Statement. If you have reason to believe that the information provided in this Actuarial Impact Statement is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decis io n on the subject matter of this report, please contact the undersigned prior to making such decision. Future actuarial measurements may differ significantly from the current measurements presented in this rep ort due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period) and changes in Plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis ofthe potential range of such future measurements. Th is Actuarial Impact Statement should not be relied upon for any purpose other than the purpose described in the primary communication. Determinations ofthe financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significant ly different results . Th is Actuaria l Impact Statement has been prepared by actuaries who have substantial experience valuing pub l ic employee retirement systems. To the best of our knowledge the informat ion contained in this report is accurate and fa i rly presents the actuarial position of the Plan as of the valuation date . All calculations have been made in conformity with generally accepted actua r ial princip le s and practices, with the Actuarial St andards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Ac tuarial Impact Statement may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent of the Plan sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qual ification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein . Retirement Consulting 82 150 Ms. Edemir K. Estrada June 14, 2019 Page Six If you should have any question concerning the above or if we may be of further assistance w ith this matter, please do not hesitate to contact us. Sincerest regards, ~-~-u~ Lawrence F. Wilson, ASA, EA, M AAA , FCA Senior Consu ltant and Actuary Enclosures cc: Mr. Alfred Riverol Ju,+ 6avu-o,ud_ Jenn ife r M. Borregard, EA, MAAA, FCA Consultant and Actuary 83 Ms. Edemir K. Estrada June 14, 2019 Page Six If you should have any question concerning the above or if we may be of further assistance w ith this matter, please do not hesitate to contac t us. Sincerest regards, ~.~.G~ Lawrence F. Wilson, ASA, EA, M AAA, FCA Senior Consu ltant and Actuary Enclosures cc: Mr. Alfred Riverol ;r+ &vu-tJad- Jenn ifer M. Borregard, EA, MAAA, FCA Consultant and Actuary 83 151 1 ORDINANCE NO. ------ 2 An Ordinance amending the South Miami Pension Plan to implement the Collective 3 Bargaining Agreements between the City of South Miami and the American Federation of 4 State, County and Municipal Employees, AFL-CIO, City Employees Local 3294, the 5 Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police 6 Benevolent Association, Inc. as well as Implement Changes for Members who are not 7 covered under a Collective Bargaining Agreement; by amending Section 16-12, 8 "Definitions"; by amending Section 16-13, "Eligibility"; by amending Section 16-14, 9 "Pension benefits and retirement dates"; by amending Section 16-17, "Termination"; and 10 by amending Section 16-19, Contributions". 11 12 WHEREAS, the City of South Miami and the American Federation of State, County and 13 Municipal Employees, AFL-CIO, City Employees Local 3294, the Florida State Lodge, Fraternal Order 14 of Police, Inc., and the Dade County Police Benevolent Association, Inc. (hereinafter "Unions"), have 15 entered into Collective Bargaining Agreements ("Agreements"); and 16 17 WHEREAS, there are some members who are not covered under the Agreements, but the City 18 of South Miami is desirous of amending the pension plan provisions for those members in accordance 19 herewith; and 20 21 WHEREAS, some of the purposes and intentions of this ordinance are to provide for adding 22 additional positions to the AMSC class, adding an open enrollment period for joining the South Miami 23 Pension Plan, capping contribution percentages for police officers and sergeants and changing normal 24 retirement age and vesting for AMSC members; and 25 26 WHEREAS, Florida law requires that if any provision of a collective bargaining agreement is 27 in conflict with any ordinance over which the chief executive officer has no amendatory power, the chief 28 executive officer shall submit to the appropriate governmental body having amendatory power a 29 proposed amendment to such ordinance; and 30 31 WHEREAS, the City Commission has received and reviewed actuarial impact statements related 32 to the amendments to the South Miami Pension Plan that are set forth in this ordinance; and 33 34 WHEREAS, the City Commission wishes to change the terms of the South Miami Pension Plan 35 to effectuate the changes called for in the Agreements and to include those individuals who not members 36 of the Unions and not covered by the Agreements; and 37 38 WHEREAS, the City Commission deems it to be in the public interest to provide these changes 39 to the South Miami Pension Plan in order to continue to meet the City's objectives of retaining City 40 employees, hiring the best talent and managing employee turnover. 41 42 NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY 43 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, TBA T: 1 84 1 ORDINANCE NO. ____ _ 2 An Ordinance amending the South Miami Pension Plan to implement the Collective 3 Bargaining Agreements between the City of South Miami and the American Federation of 4 State, County and Municipal Employees, AFL-CIO, City Employees Local 3294, the 5 Florida State Lodge, Fraternal Order of Police, Inc., and the Dade County Police 6 Benevolent Association, Inc. as well as Implement Changes for Members who are not 7 covered under a Collective Bargaining Agreement; by amending Section 16-12, 8 "Definitions"; by amending Section 16-13, "Eligibility"; by amending Section 16-14, 9 "Pension benefits and retirement dates"; by amending Section 16-17, "Termination"; and 10 by amending Section 16-19, Contributions". 11 12 WHEREAS, the City of South Miami and the American Federation of State, County and 13 Municipal Employees, AFL-CIO, City Employees Local 3294, the Florida State Lodge, Fraternal Order 14 of Police, Inc., and the Dade County Police Benevolent Association, Inc. (hereinafter "Unions"), have 15 entered into Collective Bargaining Agreements ("Agreements"); and 16 17 WHEREAS, there are some members who are not covered under the Agreements, but the City 18 of South Miami is desirous of amending the pension plan provisions for those members in accordance 19 herewith; and 20 21 WHEREAS, some of the purposes and intentions of this ordinance are to provide for adding 22 additional positions to the AMSC class, adding an open enrollment period for joining the South Miami 23 Pension Plan, capping contribution percentages for police officers and sergeants and changing normal 24 retirement age and vesting for AMSC members; and 25 26 WHEREAS, Florida law requires that if any provision of a collective bargaining agreement is 27 in conflict with any ordinance over which the chief executive officer has no amendatory power, the chief 28 executive officer shall submit to the appropriate governmental body having amendatory power a 29 proposed amendment to such ordinance; and 30 31 WHEREAS, the City Commission has received and reviewed actuarial impact statements related 32 to the amendments to the South Miami Pension Plan that are set forth in this ordinance; and 33 34 WHEREAS, the City Commission wishes to change the terms of the South Miami Pension Plan 35 to effectuate the changes called for in the Agreements and to include those individuals who not members 36 of the Unions and not covered by the Agreements; and 37 38 WHEREAS, the City Commission deems it to be in the public interest to provide these changes 39 to the South Miami Pension Plan in order to continue to meet the City's objectives of retaining City 40 employees, hiring the best talent and managing employee turnover. 41 42 NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY 43 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: 1 84 152 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Section 1: Chapter 16, Article II, Sec. 16-12, "Definitions" of the City of South Miami Code of Ordinances is hereby amended by amending and shall read as follows: *** AMSC member shall mean the administration management service class. It will 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 Community Redevelopment Agency Director Personnel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance Assistant Director of Parks and Recreation Second tier member shall mean general employees who are hired on or after October 1, 2016 who elect to join the city pension plan, anEI general employees who were hired prior to October 1, 2016 and not participating in the city pension plan as of October 1, 2016 who elect to join the city pension plan-:-and employees who previously participated in the City of South Miami Defined Contribution Plan and subsequently opted-out during the annual open enrollment period and joined the South Miami Pension Plan. *** Section 2: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-13, "Eligibility" as follows: *** ill Notwithstanding anything in this Section to the contrary. the City shall hold an annual 37 open enrollment period during which time any employee who previously entered into the 38 City of South Miami Defined Contribution Plan and is currently in the City of South 39 Miami Defined Contribution Plan, may opt-out, and elect to join the South Miami Pension 40 Plan, as a Second tier member or as their respective classification at the time they elect 41 to join the South Miami Pension Plan. 42 ti)(j) Notwithstanding sections (a) through Will above, all persons who join the eCity pension 43 plan on or after the effeetive date ef the eFElinaRee fi:em whieh this seetien is 2 85 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Section 1: Chapter 16, Article II, Sec. 16-12, "Definitions" of the City of South Miami Code of Ordinances is hereby amended by ameadiag and shall read as follows: *** AMSC member shall mean the administration management service class. It will 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 Community Redevelopment Agency Director Personnel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance Assistant Director of Parks and Recreation Second tier member shall mean general employees who are hired on or after October 1, 2016 who elect to join the city pension plan, aBEl general employees who were hired prior to October 1, 2016 and not participating in the city pension plan as of October 1, 2016 who elect to join the city pension plan-:-and employees who previously participated in the City of South Miami Defined Contribution Plan and subsequently opted-out during the annual open enrollment period and joined the South Miami Pension Plan. *** Section 2: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Sec. 16-13, "Eligibility" as follows: *** ill Notwithstanding anything in this Section to the contrary, the City shall hold an annual 37 open enrollment period during which time any employee who previously entered into the 38 City of South Miami Defined Contribution Plan and is currently in the City of South 39 Miami Defined Contribution Plan, may opt-out, and elect to join the South Miami Pension 40 Plan, as a Second tier member or as their respective classification at the time they elect 41 to join the South Miami Pension Plan. 42 ti1(j) Notwithstanding sections (a) through 00ill above, all persons who join the €City pension 43 plan on or after the efi'eeti'le date of the oFdia&Bee fFom whieh this seetioa is 2 85 153 1 2 3 4 5 6 clem•eclSeptember 20, 2016 will not be required to have completed six (6) months of service prior to joining and are required to participate immediately upon hire or upon election to join for members who were hired prior to tile effeeW1•e date of tliis orEliB&nee ffom 1Nhieh tliis seetieB is clerh•ecl September 20, 2016. 7 Section 3: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is 8 hereby amended by amending Sec. 16-14(a)(3), "Pension benefits and retirement date" as follows: 9 10 (a) Retirement date. The normal retirement date with full unreduced pension benefits for a 11 participant, shall be as follows: 12 *** 13 (3) AMSC members. The earlier of (a) age sixty--fi¥e (60¼) and completion of~ 14 five (ii) years of eCredited service; or (b) completion of thirty-three (33) years of eCredited 15 service. 16 *** 17 Section 4: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is 18 hereby amended by amending Sec. 16-1 ?(b ), "Termination" as follows: 19 *** 20 (b) Any such participant shall be entitled to elect Option I or Option 2, as described below, except 21 that Option 2 shall be automatically considered as having been elected by the Participant unless 22 Option I is elected before the participant's normal retirement date. 23 Option 1: A cash payment of an amount equal to the aggregate of the contributions 24 made by the participant prior to termination of employment. Provided that police 25 officer participants eligible to withdraw their contributions from this pension plan 26 may only withdraw their contributions without interest. 27 Option 2: Pension benefits commencing on what otherwise would have been the 28 normal retirement date of the participant in an amount equal to the greater of that 29 which can be provided by the aggregate of the contributions made by the participant 30 prior to the termination of employment, with credited interest compounded annually 31 at the rate of three (3) percent per annum from the end of the year of payment to the 32 date on which pension benefits commence; or an amount determined by multiplying 33 the amount of pension to which the participant is entitled in accordance with section 34 subsection l6-14(a) or l 6-l 4(b), whichever is applicable by a percentage 35 determined in accordance with the following schedule on the basis of the length of 36 credited service. 37 38 *** 39 All general employees shall be one hundred ( 100) percent vested in the pension plan upon 40 completion of ten (10) years of continuous credited service. All second tier members shall be one 41 hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous 3 86 1 2 3 4 5 6 serP.'esSeptember 20. 2016 will not be required to have completed six (6) months of service prior to joining and are required to participate immediately upon hire or upon election to join for members who were hired prior to tlie eileewf'e sate ef t:1iis efEiiBanee fFem , .... fiiea t:1iis seetieB is sen'les September 20. 2016. 7 Section 3: That Chapter 16. Article II. of the City of South Miami Code of Ordinances is 8 hereby amended by amending Sec. 16-14(a)(3). "Pension benefits and retirement date" as follows: 9 10 (a) Retirement date. The normal retirement date with full unreduced pension benefits for a 11 participant. shall be as follows: 12 *** 13 (3) AMSC members. The earlier of (a) age sixty-4i¥e (6~) and completion of ~ 14 five (i~) years of eCredited service; or (b) completion of thirty-three (33) years of eCredited 15 service. 16 *** 17 Section 4: That Chapter 16. Article II, of the City of South Miami Code of Ordinances is 18 hereby amended by amending Sec. 16-17(b). "Termination" as follows: 19 *** 20 (b) Any such participant shall be entitled to elect Option I or Option 2. as described below. except 21 that Option 2 shall be automatically considered as having been elected by the Participant unless 22 Option 1 is elected before the participant's normal retirement date. 23 Option i: A cash payment of an amount equal to the aggregate of the contributions 24 made by the participant prior to termination of employment. Provided that police 25 officer participants eligible to withdraw their contributions from this pension plan 26 may only withdraw their contributions without interest. 27 Option 2: Pension benefits commencing on what otherwise would have been the 28 normal retirement date of the participant in an amount equal to the greater of that 29 which can be provided by the aggregate of the contributions made by the participant 30 prior to the termination of employment, with credited interest compounded annually 31 at the rate of three (3) percent per annum from the end of the year of payment to the 32 date on which pension benefits commence; or an amount determined by multiplying 33 the amount of pension to which the participant is entitled in accordance with section 34 subsection 16-14(a) or 16-14(b), whichever is applicable by a percentage 35 determined in accordance with the following schedule on the basis of the length of 36 credited service. 37 38 *** 39 All general employees shall be one hundred (100) percent vested in the pension plan upon 40 completion of ten (10) years of continuous credited service. All second tier members shall be one 41 hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous 3 86 154 1 service. AMSC members shall be one hundred (100) percent vested in the pension plan upon completion 2 of five thfe& ~~) years of continuous Credited service. AMSC members who have completed three (3) 3 years of continuous Credited service as of the Effective Date of this Ordinance shall be I 00% vested. 4 General employees and AMSC members who opt to join the defined contribution plan of the city shall 5 vest after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are 6 in this plan as of October 1, 1995, and have ten (10) years or more of continuous service will be one 7 hundred (100) percent vested. 8 *** 9 Section 5: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is 10 hereby amended by amending Sec. 16-19(a)(2), "Contributions" as follows: 11 12 (a) Each participant, except as otherwise provided herein, shall contribute in each calendar 13 year towards the cost of the participant's pension an amount equal to three (3) percent of the participant's 14 earnings. Except as otherwise provided herein, no participant shall make any contributions toward the 15 cost of any past service pension to which the participant is entitled under this plan. The employer shall 16 contribute the balance of the cost, actuarially determined, of providing the benefits of the plan. The 17 employer's contributions shall be deposited into the pension plan on at least a quarterly basis. Effective 18 October 1, 1995, the pension contribution for all general employee participants, including those general 19 employees that are now members of the retirement system, shall be increased from three (3) percent to 20 five ( 5) percent of earnings. Effective October 1, 200 l, the pension contribution for all general employee 21 participants, including those general employees that are now members of the plan, shall be increased 22 from five (5) percent to seven (7) percent of earnings. Police officer participant including bargaining 23 unit employees, that are now members of the plan and any police officers who join the plan in the future 24 shall, effective October 1, 1993, have their contribution increased from three (3) percent to five (5) 25 percent of earnings. Effective October 1, 2001, police officer participants shall contribute seven and one- 26 half (7 .5) percent of earnings. 27 *** 28 (2) Police officer participants. Effective October 1, 2004, if the total police officer 29 participants contributions and employer's contribution exceeds fifteen (15) percent of covered 30 police payroll for any fiscal year, the excess over fifteen (15) percent shall be shared equally by 31 the employer and police officer participants, provided however, that effective October 1, 2016, 32 police lieutenants and police captains shall have their contributions capped at twelve (12) percent 33 of earnings-:-and effective October 1, 2018, police officers and sergeants shall have their 34 contributions capped at twelve (12) percent of earnings. Police officer participant contributions 35 shall be deposited in the plan immediately after each pay period. Effective October 1, 2001 an 36 amount actuarially determined, to provide for certain minimum benefits required by chapter 185, 37 F.S. shall be paid from the South Miami Police Officers Retirement Trust Fund to the plan each 38 year, regardless of the growth or diminution in future chapter 185, F.S. funds. 39 *** 40 41 Section 6. Codification. The provisions of this Ordinance shall become and be made part of 42 the Future Land Use Map of the City of South Miami's Comprehensive Plan, as amended. 43 4 87 1 service. AMSC members shall be one hundred (100) percent vested in the pension plan upon completion 2 of five tRfe& ~~) years of continuous Credited service. AMSC members who have completed three (3) 3 years of continuous Credited service as of the Effective Date of this Ordinance shall be 100% vested. 4 General employees and AMSC members who opt to join the defined contribution plan of the city shall 5 vest after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are 6 in this plan as of October 1, 1995, and have ten (10) years or more of continuous service will be one 7 hundred (100) percent vested. 8 *** 9 Section 5: That Chapter 16, Article II, of the City of South Miami Code of Ordinances is 10 hereby amended by amending Sec. 16-19(a)(2), "Contributions" as follows: 11 12 (a) Each participant, except as otherwise provided herein, shall contribute in each calendar 13 year towards the cost of the participant's pension an amount equal to three (3) percent of the participant's 14 earnings. Except as otherwise provided herein, no participant shall make any contributions toward the 15 cost of any past service pension to which the participant is entitled under this plan. The employer shall 16 contribute the balance of the cost, actuarially determined, of providing the benefits of the plan. The 17 employer's contributions shall be deposited into the pension plan on at least a quarterly basis. Effective 18 October 1, 1995, the pension contribution for all general employee participants, including those general 19 employees that are now members of the retirement system, shall be increased from three (3) percent to 20 five (5) percent of earnings. Effective October 1, 2001, the pension contribution for all general employee 21 participants, including those general employees that are now members of the plan, shall be increased 22 from five (5) percent to seven (7) percent of earnings. Police officer participant including bargaining 23 unit employees, that are now members ofthe plan and any police officers who join the plan in the future 24 shall, effective October 1, 1993, have their contribution increased from three (3) percent to five (5) 25 percent of earnings. Effective October 1, 2001, police officer participants shall contribute seven and one- 26 half (7.5) percent of earnings. 27 *** 28 (2) Police officer participants. Effective October 1, 2004, if the total police officer 29 participants contributions and employer's contribution exceeds fifteen (15) percent of covered 30 police payroll for any fiscal year, the excess over fifteen (15) percent shall be shared equally by 31 the employer and police officer participants, provided however, that effective October 1, 2016, 32 police lieutenants and police captains shall have their contributions capped at twelve (12) percent 33 of earnings~ and effective October 1. 2018. police officers and sergeants shall have their 34 contributions capped at twelve (12) percent of earnings. Police officer participant contributions 35 shall be deposited in the plan immediately after each pay period. Effective October 1, 2001 an 36 amount actuarially determined, to provide for certain minimum benefits required by chapter 185, 37 F.S. shall be paid from the South Miami Police Officers Retirement Trust Fund to the plan each 38 year, regardless of the growth or diminution in future chapter 185, F.S. funds. 39 *** 40 41 Section 6. Codification. The provisions of this Ordinance shall become and be made part of 42 the Future Land Use Map of the City of South Miami's Comprehensive Plan, as amended. 43 4 87 155 1 Section 7. Severability. If any section, clause, sentence, or phrase of this Ordinance is for any 2 reason held invalid or unconstitutional by a court of competent jurisdiction, this holding shall not affect 3 the validity of the remaining portions of this Ordinance or the Guidelines adopted hereunder. 4 5 Section 8. Ordinances in Conflict. All ordinances or parts of ordinances and all section and 6 parts of sections of ordinances in direct conflict herewith are hereby repealed. 7 8 Section 9. Effective Date. This ordinance shall become effective upon enactment. 9 PASSED AND ENACTED this __ day of _____ , 2019. 10 11 12 13 14 15 ATTEST: CITY CLERK 16 1st Reading 17 2nd Reading 18 19 20 21 22 23 24 READ AND APPROVED AS TO FORM: LANGUAGE, LEGALITY AND EXECUTION THEREOF CITY ATTORNEY APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Harris: Commissioner Gil: Commissioner Welsh: Commissioner Liebman: 5 88 1 Section 7. Severability. If any section, clause, sentence, or phrase of this Ordinance is for any 2 reason held invalid or unconstitutional by a court of competent jurisdiction, this holding shall not affect 3 the validity of the remaining portions of this Ordinance or the Guidelines adopted hereunder. 4 5 Section 8. Ordinances in Conflict. All ordinances or parts of ordinances and all section and 6 parts of sections of ordinances in direct conflict herewith are hereby repealed. 7 8 Section 9. Effective Date. This ordinance shall become effective upon enactment. 9 PASSED AND ENACTED this __ day of _____ , 2019. 10 11 12 13 14 15 ATTEST: CITY CLERK 16 151 Reading 17 2nd Reading 18 19 20 21 22 23 24 READ AND APPROVED AS TO FORM: LANGUAGE, LEGALITY AND EXECUTION THEREOF CITY ATTORNEY APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Harris: Commissioner Gil: Commissioner Welsh: Commissioner Liebman: 5 88 156 Actuarial Impact Statement as of October 1, 2018 A. Description of Proposed Amendment Eligibility · Hold an annual open enrollment period for the Plan during which time employees who previously entered into the City Defined Contribution (DC) Plan may opt-out and elect to join the Plan. Depending on job classification, new members will participate in Tier 2 or the Administration Management Service Class (AMSC). Administration Management Service Class (AMSC) Employees who hold the following positions will belong to the 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 Added AMSC positions Assistant Director of Parks and Recreation Community Redevelopment Agency Director Personnel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance Full vesting upon completion of five (5) years of Credited Service. Members who have completed three (3) years of Credited Service as of the effective date of this Ordinance are 100% vested. Normal retirement is the earlier of (a) attainment of age sixty (60) and completion of five (5) years of Credited Service or (b) completion of thirty-three (33) years of Credited Service. Police Officers Effective October 1, 2018, police officers and sergeants member contributions are capped at twelve percent (12%) of earnings. B. An estimate of the cost implementing this amendment (see attachment) C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Article X of the Statement Constitution. Chairman, Pension Board Date 89 Actuarial Impact Statement as of October 1, 2018 A. Description of Proposed Amendment Eligibility . Hold an annual open enrollment period for the Plan during which time employees who previously entered into the City Defined Contribution (DC) Plan may opt-out and elect to join the Plan. Depending on job classification, new members will participate in TIer 2 or the Administration Management Service Class (AMSC). Administration Management Service Class (AMSq Employees who hold the following positions will belong to the 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 Added AMSC positions Assistant Director of Parks and Recreation Community Redevelopment Agency Director Personnel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance Full vesting upon completion of five (5) years of Credited Service. Members who have completed three (3) years of Credited Service as of the effective date of this Ordinance are 100% vested. Normal retirement is the earlier of (a) attainment of age sixty (60) and completion of five (5) years of Credited Service or (b) completion of thirty-three (33) years of Credited Service. Police Officers Effective October 1, 2018, police officers and sergeants member contributions are capped at twelve percent (12%) of earnings. B. An estimate of the cost implementing this amendment (see attachment) C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Article X of the Statement Constitution. Chairman, Pension Board Date 89 157 Actuarial Impact Statement as of October 1, 2018 (All Participants) Actuarial Impact Valuation Statement 10/01/2018 10/01/2018 A. Participant Data 1. Active participants 107 119 2. Retired participants and beneficiaries receiving benefits 48 48 3. Disabled participants receiving benefits 0 0 4. Terminated vested participants 9 9 5. Annual payroll of active participants $ 6,675,196 $ 7,421,302 6. Expected payroll of active employees for the following year $ 6,721,049 $ 7,467,155 7. Annual benefits payable to those currently receiving benefits $ 1,530,667 $ 1,530,667 B. Assets 1. Market Value of Assets $ 43,219,378 $ 43,219,378 2. Smoothed Value of Assets $ 41,264,634 $ 41,264,634 C. Liabilities 1. Actuarial present value of future expected benefit payments for active members a. Retirement benefits $ 21,342,077 $ 21,716,062 b. Vesting benefits 1,461,043 1,686,264 c. Death benefits 109,769 111,228 d. Disability benefits 718,464 741,694 e. Refunds 283,544 280,107 f. Total $ 23,914,897 $ 24,535,355 2. Actuarial present value of future expected benefit payments for terminated vested members $ 1,266,989 $ 1,266,989 3. Actuarial present value of future expected benefit payments for members currently receiving benefits a. Service retired $ 19,210,022 $ 19,210,022 b. Disability retired 0 0 c. Beneficiaries 176,438 176,438 d. Miscellaneous 149,378 149,378 e. Total $ 19,535,838 $ 19,535,838 90 South Miami Pension Plan 1 Actuarial Impact Statement as of October 1, 2018 (All Participants) Actuarial Impact Valuation Statement 10/01/2018 10/01/2018 A. Participant Data 1. Active participants 107 119 2. Retired participants and beneficiaries receiving benefits 48 48 3. Disabled participants receiving benefits 0 0 4. Terminated vested participants 9 9 5. Annual payroll of active participants $ 6,675,196 $ 7,421,302 6. Expected payroll of active employees for the following year $ 6,721,049 $ 7,467,155 7. Annual benefits payable to those currently receiving benefits $ 1,530,667 $ 1,530,667 B. Assets 1. Market Value of Assets $ 43,219,378 $ 43,219,378 2. Smoothed Value of Assets $ 41,264,634 $ 41,264,634 C. Liabilities 1. Actuarial present value of future expected benefit payments for active members a. Retirement benefits $ 21,342,077 $ 21,716,062 b. Vesting benefits 1,461,043 1,686,264 c. Death benefits 109,769 111,228 d. Disability benefits 718,464 741,694 e. Refunds 283,544 280,107 f. Total $ 23,914,897 $ 24,535,355 2. Actuarial present value of future expected benefit payments for terminated vested members $ 1,266,989 $ 1,266,989 3. Actuarial present value of future expected benefit payments for members currently receiving benefits a. Service retired $ 19,210,022 $ 19,210,022 b. Disability retired 0 0 c. Beneficiaries 176,438 176,438 d. Miscellaneous 149,378 149,378 e. Total $ 19,535,838 $ 19,535,838 90 South Miami Pension Plan 1 158 Actuarial Impact Statement as of October 1. 2018 (All Participants} Act uaria l Impa ct Valuation Statement 10/01/2018 10/01/20 18 4. Tota l actua r ial presen t va lue of futu re expected benefit payments $ 44,717,724 $ 45,338,182 5. Ac t uaria l accrued liabi l it ies $ 39,169,604 $ 39,390,620 6. Unfunded actuaria l accrued liabilitie s $ (2,095,030) $ (1,874,014) D. Statement of Accumu lated Pla n Bene f its 1. Actuarial pre sent value of accumu lat ed vested benefits a. Part icipa nts currently receiving benefits $ 19,386,460 $ 19,386,460 b. Ot her partic i pants 12,223,902 12,223,902 c. Tota l $ 31,610,3 62 $ 31,610,362 2. Actuaria l present val ue of accumu lat ed non - vested Plan benefits 3,134,126 3,134,126 3. Tota l actuar ial p r esent va lue of accumu lat ed Plan benefi t s $ 34,744,488 $ 34,744,488 E. Pensio n Cost 1. Tota l norma l cost (including expe nses) $ 981,888 $ 1,0 38,501 2. Payment required to amortize unfunded liabi lit y (193,875) (175,611) 3. Interest adjustment 28,696 31,358 4. Tota l pre li m i nary require d contribu t ion $ 816,70 9 $ 894,248 5. Tota l req uired contributio n $ 1,066,311 $ 1,143,996 6. Item 5 as a percentage of payrol l 16.0% 15.4% 7. Est i mated member contribut i ons $ 439,175 $ 480,067 8. It em 7 as a pe r centage of payroll 6.5% 1 6.4% 2 9. Estimate d State co ntributions $ 37,780 $ 37,780 10. Item 9 as a percentage of payro l l 0.6% 1 0.5% 2 11. Net am oun t paya bl e by City $ 597,995 $ 634,788 12. Item 11 as a pe rcentage of payroll 8.9% 1 8 .5% 2 1 Percent of expected 20 19-2020 co vered payro l l ($6,721 ,049) 2 Pe rcent of expected 20 19-2020 co vered payro ll ($7,467,155) 91 South Miami Pen si on Plan 2 Actuarial Impact Statement as of October 1, 2018 (All Participants) Actu arial Im p act Valuation Statement 10/01/2018 10/0 1/20 18 4. Tota l actua rial p resent va lue of futu re expected benefit payments $ 44,717,724 $ 45,338,182 5. Ac t uarial accrued li abi l ities $ 39,169,604 $ 39,390,620 6. Un f u nded actuarial accrued li abilitie s $ (2,095,030) $ (1,874,014) D. Stat e ment of Accumu lated Pla n Benefits 1. Actuarial p resent value of accumu lat ed vested benefits a. Participants currently receiv i ng benefits $ 19,386,460 $ 19,386,460 b. Other partic i pants 12,223,902 12,223,902 c. Tota l $ 31,610,3 62 $ 31,610,362 2. Actuaria l present value of accumu lat ed non- vested Pla n benefits 3,134,126 3,134,126 3. Tota l actuaria l present va lue of accumu lated Plan benefits $ 34,74 4,488 $ 34,744,488 E. Pension Cost 1. Tota l norma l cost (includ i ng expe nses) $ 981,888 $ 1,038,501 2. Payment required to amortize unfunded liabi lity (193,875) (175,611) 3. Interest adjustme nt 28,696 31,358 4. Tota l pre li mi nary r equired contr i bu t ion $ 816,709 $ 894,248 5. Tota l required contributio n $ 1,066,311 $ 1,143,996 6. Item 5 as a percentage of payroll 16.0% 15.4% 7. Estimated member contributions $ 439,175 $ 480,067 8. Item 7 as a percentage of payroll 6.5% 1 6.4% 9. Estimated State contributions $ 37,780 $ 37,780 10. Item 9 as a percentage of payro l l 0.6% 1 0 .5% 11. Net amo un t payab le by City $ 597,995 $ 634,788 12 . Item 11 as a percentage of payroll 8.9% 1 8 .5% 1 Percent of expected 2019-2020 co vered payro l l ($6,721,049) 2 Pe rcent of expected 2019 -2020 co vered payr oll ($7,467,155) 91 South Miami Pen si on Plan 2 159 Actuarial Impact Statement as of October 1, 2018 (All Participants) F. Disclosure of Following Items: 1. Actuarial present value of future salaries -attained age $ 2. Actuarial present value of future employee contributions -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 Valuation 10/01/2018 45,957,035 2,896,466 N/A 5,431,831 N/A N/A Actuarial Impact Statement 10/01/2018 $ 51,272,977 $ 3,164,343 N/A $ 5,431,830 N/A N/A 92 South Miami Pension Plan 3 Actuarial Impact Statement as of October 1. 2018 (All Participants) F. Disclosure of Following Items: 1. Actuarial present value of future salaries -attained age $ 2. Actuarial present value of future employee contributions -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 $ Valuation 10/01/2018 45,957,035 2,896,466 N/A 5,431,831 N/A N/A Actuarial Impact Statement 10/01/2018 $ 51,272,977 $ 3,164,343 N/A $ 5,431,830 N/A N/A 92 South Miami Pension Plan 3 160 Actuarial Impact Statement as of October 1, 2018 Unfunded Actuarial Current Unfunded Amortization Remaining Funding Accrued Liabilities Liabilities Payment Period General Employees Tier 1 10/01/2015 Combined Bases * $ (1,166,604) $ (117,886) 16 years 10/01/2016 Actuarial Loss/ (Gain) (413,545) (35,269) 23 years 10/01/2016 Assumption Change 426,727 36,393 23 years 10/01/2017 Actuarial Loss/ (Gain) (280,976) (23,571) 24 years 10/01/2018 Actuarial Loss/ (Gain) (1,290,160) (106,612) 25 years 10/01/2018 Plan Amendment 0 0 25 years TOTAL $ (2,724,558) $ (246,945) General Employees Tier 2 10/01/2017 Initial Base $ 61,121 $ 5,213 23 years 10/01/2018 Actuarial Loss/ (Gain) 19,733 1,631 25 years 10/01/2018 Plan Amendment 0 0 25 years TOTAL $ 80,854 $ 6,844 AMSC 10/01/2017 Combined Bases * $ 187,758 $ 16,013 23 years 10/01/2018 Actuarial Loss/ (Gain) 487,112 40,252 25 years 10/01/2018 Plan Amendment 221,016 18,264 25 years TOTAL $ 895,886 $ 74,529 Police Officers 10/01/2018 Combined Bases * $ (126,196) $ (10,039) 21 years 10/01/2018 Actuarial Loss/ (Gain) 0 0 25 years TOTAL $ (126,196) $ (10,039) * Combined per Internal Revenue Code Regulation 1.412(b)-1 This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. Based upon our understanding of the Plan, there is no benefit or expense to be provided by the Plan and/or paid from the Plan's assets for which liabilities or current costs have not been established or other wise provided for in the valuation. All known events or trends which may require material increase in Plan costs or required contribution rates have been taken into account in the valuation. Enrollment Number: 17-02802 Dated: June 14, 2019 Lawrence F. Wilson, A.S.A. 93 South Miami Pension Plan 4 Actuarial Impact Statement as of October 1, 2018 Unfunded Actuarial Current Unfunded Amortization Remaining Funding Accrued Liabilities Liabilities Payment Period General Employees Tier 1 10/01/2015 Combined Bases * $ (1,166,604) $ (117,886) 16 years 10/01/2016 Actuarial Loss / (Gain) (413,545) (35,269) 23 years 10/01/2016 Assumption Change 426,727 36,393 23 years 10/01/2017 Actuarial Loss / (Gain) (280,976) (23,571) 24 years 10/01/2018 Actuarial Loss / (Gain) (1,290,160) (106,612) 25 years 10/01/2018 Plan Amendment 0 0 25 years TOTAL $ (2,724,558) $ (246,945) General Employees Tier 2 10/01/2017 Initial Base $ 61,121 $ 5,213 23 years 10/01/2018 Actuarial Loss / (Gain) 19,733 1,631 25 years 10/01/2018 Plan Amendment 0 0 25 years TOTAL $ 80,854 $ 6,844 AMSC 10/01/2017 Combined Bases * $ 187,758 $ 16,013 23 years 10/01/2018 Actuarial Loss / (Gain) 487,112 40,252 25 years 10/01/2018 Plan Amendment 221,016 18,264 25 years TOTAL $ 895,886 $ 74,529 Police Officers 10/01/2018 Combined Bases * $ (126,196) $ (10,039) 21 years 10/01/2018 Actuarial Loss / (Gain) 0 0 25 years TOTAL $ (126,196) $ (10,039) * Combined per Internal Revenue Code Regulation 1.412(b)-1 This actuarial valuation and/or cost determination was prepared and completed by me or under my direct supervision, and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. Based upon our understanding of the Plan, there is no benefit or expense to be provided by the Plan and/or paid from the Plan's assets for which liabilities or current costs have not been established or other wise provided for in the valuation. All known events or trends which may require material increase in Plan costs or required contribution rates have been taken into account in the valuation. Enrollment Number: 17-02802 Dated: June 14, 2019 Lawrence F. Wilson, A.S.A. 93 South Miami Pension Plan 4 161 Outline of Principal Provisions of the Retirement Plan A. Effective Date: October 1, 1965. Most recently amended by Ordinance 1-17-2271 adopted January 17, 2017. B. Eligibility Requirements: 1. General Employees Tier 1: Regular full-time employee hired before October 1, 2011 is eligible to enter the Plan following the completion of six months of Credited Service and attainment of age 20. Tier 2: Regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety (90) days from September 20, 2016 is eligible to enter the Plan as a Tier 2 employee as of October 1, 2016. Regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. Any regular full-time employee who previously entered into the Defined Contribution (DC) Plan may opt-out of the DC Plan and elect to join the Plan as a Tier 2 member or as their respective classification at the time they elect to join the Plan during an annual open enrollment period. 2. Police Officers Regular full-time Police Officer is eligible to enter the Plan as of date of employment. 3. Administration Management Service Class (AMSC) Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: 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 Assistant Director of Parks and Recreation Community Redevelopment Agency Director Personnel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance 94 South Miami Pension Plan 5 Outline of Principal Provisions of the Retirement Plan A. Effective Date: October 1, 1965. Most recently amended by Ordinance 1-17-2271 adopted January 17, 2017. B. Eligibility Requirements: 1. General Employees Tier 1: Regular full-time employee hired before October 1, 2011 is eligible to enter the Plan following the completion of six months of Credited Service and attainment of age 20. Tier 2: Regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety (90) days from September 20, 2016 is eligible to enter the Plan as a Tier 2 employee as of October 1, 2016. Regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. Any regular full-time employee who previously entered into the Defined Contribution (DC) Plan may opt-out of the DC Plan and elect to join the Plan as a Tier 2 member or as their respective classification at the time they elect to join the Plan during an annual open enrollment period. 2. Police Officers Regular full-time Police Officer is eligible to enter the Plan as of date of employment. 3. Administration Management Service Class (AMSq Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: City Manager City Attorney City Clerk Assistant I Deputy City Manager Finance Director I 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 Assistant Director of Parks and Recreation Community Redevelopment Agency Director Personnel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance 94 South Miami Pension Plan 5 162 Outline of Principal Provisions of the Retirement Plan C. Credited Service: 1. General Employees and AMSC Continuous employment. Credited service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of date of Plan entry election date or date of hire. 2. Police Officers Continuous employment. For Police Officers who did not participate when first eligible for the Plan, Credited Service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, Credited Service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, Credited Service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. D. Final Monthly Compensation (FMC}: Final Average Compensation is 1/36th of the final 36 consecutive months of compensation. For Police Officers, not less than 1/Sth of the highest five (S) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, Final Average Compensation for General Employees is 1/60th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. 95 South Miami Pension Plan 6 Outline of Principal Provisions of the Retirement Plan C. Credited Service: 1. General Employees and AMSC Continuous employment. Credited service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of date of Plan entry election date or date of hire. 2. Police Officers Continuous employment. For Police Officers who did not participate when first eligible for the Plan, Credited Service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, Credited Service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, Credited Service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. D. Final Monthly Compensation (FMC): Final Average Compensation is 1/36th of the final 36 consecutive months of compensation. For Police Officers, not less than l/sth of the highest five (5) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, Final Average Compensation for General Employees is 1/60th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. 95 South Miami Pension Plan 6 163 Outline of Principal Provisions of the Retirement Plan D. Final Monthly Compensation {FMC) (cont'd): Effective October 1, 2016, Final Average Compensation for members covered under the Miami-Dade County Police Benevolent Association Upper-Collective Bargainning Union (Lieutenants & Captains) collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2016 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. Final Average Compenation for Tier 2 General Employees and AMSC shall be the average of the highest eight (8) years of credit service. E. Normal Retirement: 1. Eligibility: a. General Employees: b. Police Officers: c. AMSC: 2. Benefit: Attainment of age 55 and completion of ten (10) years of Credited Service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10) years of Credited Service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. Attainment of age 65 and completion of ten (10) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age for Tier 2 General Employees. Attainment of age 60 and completion of ten (10) years of Credited Service or completion of twenty-five {25) years of Credited Service regardless of age. Attainment of age 60 and completion of five (5) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age. The monthly Plan benefit is the product of: a. FMC, b. Credited Service during the appropriate period and c. The appropriate benefit percentage The appropriate benefit percentages are: a. General Employees For Credited Service Through September 30, 1999 October 1, 1999 through September 30, 2011 October 1, 2011 and thereafter Percentage 2.50% 2.75% 2.25% 96 South Miami Pension Plan 7 Outline of Principal Provisions of the Retirement Plan D. Final Monthly Compensation (FMC) (cont' d): Effective October 1, 2016, Final Average Compensation for members covered under the Miami-Dade County Police Benevolent Association Upper-Collective Bargainning Union (lieutenants & Captains) collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2016 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. Final Average Compenation for Tier 2 General Employees and AMSC shall be the average of the highest eight (8) years of credit service. E. Normal Retirement: 1. Eligibilitv: a. General Employees: b. Police Officers: c. AMSC: 2. Benefit: Attainment of age 55 and completion of ten (10) years of Credited Service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10) years of Credited Service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. Attainment of age 65 and completion of ten (10) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age for Tier 2 General Employees. Attainment of age 60 and completion of ten (10) years of Credited Service or completion of twenty-five (25) years of Credited Service regardless of age. Attainment of age 60 and completion of five (5) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age. The monthly Plan benefit is the product of: a. FMC, b. Credited Service during the appropriate period and c. The appropriate benefit percentage The appropriate benefit percentages are: a. General Employees For Credited Service Through September 30,1999 October 1, 1999 through September 30, 2011 October 1, 2011 and thereafter Percentage 2.50% 2.75% 2.25% 96 South Miami Pension Plan 7 164 Outline of Principal Provisions of the Retirement Plan E. Normal Retirement (cont'd): 2. Benefit: b. Police Officers c. General Employees (Tier 2) d. AMSC F. Supplemental Benefit: For Credited Service Through September 30, 1995 October 1, 1995 through September 30, 1996 October 1, 1996 through September 30, 1997 October 1, 1997 through September 30, 2001 October 1, 2001 through September 30, 2002 October 1, 2002 through September 30, 2003 October 1, 2003 and thereafter For Credited Service October 1, 2016 and thereafter For Credited Service October 1, 2016 and thereafter Percentage 2.00% 2.25% 2.50% 2.75% 2.80% 2.90% 3.00% Percentage 1.60% Percentage 3.00% 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 on the accrued benefit as of September 30, 2011 and does not apply to increases in this accrued benefit due to increases in the Final Average Compensation. No cost-of-living supplemental benefit is provided for Tier 2 General Employees. No cost-of-living supplemental benefit is provided for AMSC for benefit accruals on or after October 1, 2011. G. Early Retirement: 1. Eligibility: a. Police Officers: b. AMSC: 2. Benefit: a. Police Officers: Attainment of age 50 and completion of 15 years of Credited Service. Attainment of age 55 and completion of 10 years of Credited Service. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 3% for each year that the benefit commencement date precedes Normal Retirement. 97 South Miami Pension Plan 8 Outline of Principal Provisions of the Retirement Plan E. Normal Retirement (cont'd): 2. Benefit: b. Police Officers c. General Employees (TIer 2) d. AMSC F. Supplemental Benefit: For Credited Service Through September 30, 1995 October 1, 1995 through September 30, 1996 October 1, 1996 through September 30, 1997 October 1, 1997 through September 30, 2001 October 1, 2001 through September 30, 2002 October 1, 2002 through September 30, 2003 October 1, 2003 and thereafter For Credited Service October 1, 2016 and thereafter For Credited Service October 1, 2016 and thereafter Percentage 2.00% 2.25% 2.50% 2.75% 2.80% 2.90% 3.00% Percentage 1.60% Percentage 3.00% 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 on the accrued benefit as of September 3D, 2011 and does not apply to increases in this accrued benefit due to increases in the Final Average Com pensation. No cost-of-living supplemental benefit is provided for Tier 2 General Employees. No cost-of-living supplemental benefit is provided for AMSC for benefit accruals on or after October 1, 2011. G. Early Retirement: 1. Eligibility: a. Police Officers: b. AMSC: 2. Benefit: a. Police Officers: Attainment of age 50 and completion of 15 years of Credited Service. Attainment of age 55 and completion of 10 years of Credited Service. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 3% for each year that the benefit commencement date precedes Normal Retirement. 97 South Miami Pension Plan 8 165 Outline of Principal Provisions of the Retirement Plan G. Early Retirement (cont'd): 2. Benefit: b. AMSC: Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 1/15 for each of the first five years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. H. Delayed Retirement: I. 1. Eligibility: Retirement subsequent to Normal Retirement Date. 2. Benefit: Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date. Disability Retirement: 1. Eligibility: 2. Benefit: Totally and permanently disabled for a six month period while actively employed . Accrued benefit based upon FMC and Credited Service as of date of disability, actuarially reduced as for Early Retirement for ea r ly commencement. J. Pre -Retirement Death Benefit: The beneficiary shall receive the member's accumulated Employee Contributions. K. Benefit Upon Termination of Service: 1. Benefit payable at Normal Retirement equal to the greater of: a. Accrued benefit based upon FMC and Credited Service as of date of termination times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated Member Contributions with interest to Normal Retirement Date. No supplemental benefit shall be payable to vested terminees. 2. Vesting Schedule: All employees except AMSC: Years of Credited Service Less than 10 10 or more years Vesting Percentage 0% 100% 98 South Miami Pension Plan 9 Outline of Principal Provisions of the Retirement Plan G. Early Retirement (cont'd): 2. Benefit: b. AMSC: Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 1/15 for each of the first f ive years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. H. Delayed Retirement: 1. Eligibility: Retirement subsequent to Normal Retirement Date . 2. Benefit: Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date. I. Disability Retirement : 1. El igibility: Totally and permanently disabled for a six month period while actively employed . 2. Benefit: Accrued benefit based upon FMC and Credi ted Service as of date of disability, actuarially reduced as for Early Ret i rement for early commencement. J. Pre -Retirement Death Benefit: The beneficiary shall recei ve the m e mber's accu mula ted Employee Contributions. K. Benefit Upon Term i nation of Service: 1. Benefit payable at Normal Retirement equal to the greater of: a. Accrued benefit based upon FMC and Credited Service as of date of termination times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated Member Contributions with interest to Normal Retirement Da te. No supp le mental benefit shall be payable to vested terminees. 2. Vesting Schedule: All employees except AMSC: Years of Credited Service Less than 10 10 or more years Vesting Percentage 0% 100% 98 South Miami Pension Plan 9 166 Outline of Pr incipal Provisions of the Ret i rement Plan K. Benefit Upon Termination of Service (cont'd): AMSC: Years of Credited Service Less than 5 5 or more yea rs Vesting Percentage 0% 100% AMSC members who have completed t hree (3) years of continuous Credited Service as of the effective date of this Ordinance date are 100% vested. 3. Refund Option: A terminated member may el ect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits. L. Member Contributions : Members contribute 7.0% (3.0 % for Tier 2 General Employees and 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 includ i ng expenses , both the City an d the Ge neral Employees (other than Tier 2 General Employees and AMSC) will share equally in the am o unt in excess of 7.0%. General Employees (other than Tier 2 General Employees and AMSC} Contributions are capped at 10% of bas ic annua l compensation as of October 1, 2016 . Should the City contribution for Po lice Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Po li ce Officers will share equally in the amount in excess of 7.5% but not more than 12.0%. M. Normal Form of Retirement I ncom e: The normal form of payment sh all be a life annuity with a gua rantee of a refund of accumulated Employee Con t ributions . 99 South Miami Pension Plan 10 Outline of Pr incipal Provisions of the Ret i rement Plan K. Benefit Upon Termination of Service (cont'd): AMSC: Years of Credited Service Less than 5 5 or more years Vesting Percentage 0% 100% AMSC members who have completed three (3) years of continuous Credited Service as of the effective date of this Ordinance date are 100% vested. 3. Refund Option: A terminated member may el ect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits . L. Member Contributions : Members contribute 7.0% (3.0% for Tier 2 General Employees and 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 includ i ng expenses , both the City and the General Employees (other than Tier 2 General Employees and AMSC) will share equally in the amount in excess of 7.0%. General Emp loyees (other than Tier 2 General Employees and AMSC) Contributio ns are capped at 10% of basic annua l compensation as of October 1, 2016 . Should the City contribution for Po l ice Officers be act ua rially determined to exceed 7.5%, not including expenses, both the City and the Po lice Officers will share equally in the amount in excess of 7.5% but not more than 12.0%. M. Normal Form of Retirement I ncom e: The normal form of paymen t sh all be a life an nu ity with a gua rantee of a refund of accumulated Employee Contributions . 99 South Miami Pension Plan 10 167 Outline of Principal Provisions of the Retirement Plan N. Changes Since Previous Actuarial Valuation: 1. Eligibility Requirements were: Tier 2: Regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety (90) days from effective date of Ordinance is eligible to enter the Plan as a Tier 2 employee as of the effective date of Ordinance. Regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. Administration Management Service Class (AMSC) Employees of the City with the following positions who do not elect to participate in a Defined Contribution Plan of the City: 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 2. AMSC Normal Retirement eligibility was: Attainment of age 65 and completion of three (3) years of Credited Service or completion of thirty- three (33) years of Credited Service regardless of age. 3. AMSC Vesting Schedule was: Yeats-of Credited Service ~85$than3 3 Qr more years 4. Police Officers Contributions were: Vesting Percenta1e• °" 100% Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5% but not more than 12.0% for Police lieutenants and Police Captains. 100 South Miami Pension Plan 11 Outline of Principal Provisions of the Retirement Plan N. Changes Since Previous Actuarial Valuation: 1. Eligibility Requirements were: Tier 2: Regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety (90) days from effective date of Ordinance is eligible to enter the Plan as a Tier 2 employee as of the effective date of Ordinance. Regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. Administration Management Service Class (AMSq Employees of the City with the following positions who do not elect to participate in a Defined Contribution Plan of the City: 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 2. AMSC Normal Retirement eligibility was: 3. 4. Attainment of age 65 and completion of three (3) years of Credited Service or completion of thirty- three (33) years of Credited Service regardless of age. AMSC Vesting Schedule was: YeatS-of Vesting credltellServlce Percental8' ~ess'than3 0% 3 QF more years 100% Police Officers Contributions were: Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5% but not more than 12.0% for Police Lieutenants and Police Captains. 100 South Miami Pension Plan 11 168 A. Mortality Actuarial Assumptions and Methods Used in the Valuation General Employees including AMSC Mortality Assumptions: For healthy male participants during employment, RP 2000 Combined Male Healthy Participant Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female participants during employment, RP 2000 Combined Female Healthy Participant Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy male participants post employment, RP 2000 Annuitant Male Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female participants post employment, RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male participants, RP 2000 Disabled Male Mortality Table, setback four years, without projected mortality improvements. For disabled female participants, RP 2000 Disabled Female Mortality Table, set forward two years, without projected mortality improvements. Pre-retirement Post-retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2018) Male Female Male Female 55 30.53 33.57 30.10 33.34 60 25.60 28.54 25.44 28.44 62 23.70 26.58 23.60 26.52 Pre-retirement Post-retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2038) Male Female Male Female 55 32.67 35.41 32.26 35.21 60 27.78 30.38 27.63 30.30 62 25.87 28.40 25.78 28.35 101 South Miami Pension Plan 12 A. Mortalitv Actuarial Assumptions and Methods Used in the Valuation General Employees including AMSC Mortality Assumptions: For healthy male participants during employment, RP 2000 Combined Male Healthy Participant Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female participants during employment, RP 2000 Combined Female Healthy Participant Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy male participants post employment, RP 2000 Annuitant Male Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female participants post employment, RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male participants, RP 2000 Disabled Male Mortality Table, setback four years, without projected mortality improvements. For disabled female participants, RP 2000 Disabled Female Mortality Table, set forward two years, without projected mortality improvements. Pre-retirement Post-retirement Sample Future Ufe Future Ufe Ages Expectancy (Years) Expectancy (Years) (2018) Male Female Male Female 55 30.53 33.57 30.10 33.34 60 25.60 28.54 25.44 28.44 62 23.70 26.58 23.60 26.52 Pre-retirement Post-retirement Sample Future Ufe Future Ufe Ages Expectancy (Years) Expectancy (Years) (2038) Male Female Male Female 55 32.67 35.41 32.26 35.21 60 27.78 30.38 27.63 30.30 62 25.87 28.40 25.78 28.35 101 South Miami Pension Plan 12 169 A. Mortality (cont'd) Actuarial Assumptions and Methods Used in the Valuation Police Officer Mortality Assumptions: For healthy participants during employment, RP-2000 Combined Healthy Participant Mortality Tables, separate rates for males and females, with 90% Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP-2000 Annuitant Mortality Tables, separate rates for males and females, with 90% Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male participants, 60% RP 2000 Disabled Male Mortality Table setback four years / 40% RP 2000 Annuitant Male Mortality Table, with White Collar Adjustment and no setback, without projected mortality improvements. For disabled female particpants, 60% RP 2000 Disabled Female Mortality Table set forward two years / 40% RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment, without projected mortality improvements. Sample Ages (2018) 55 60 62 Sample Ages (2038) 55 60 62 Pre-retirement FutureUfe Expectancy(Years) Male Female 29.84 24.96 23.09 32.60 27.56 25.59 Pre-retirement Future Ufe Expectancy (Years) Male Female 32.06 27.21 25.34 34.54 29.49 27.51 Post-retirement FutureUfe Expectancy (Years) Male 29.33 24.76 22.97 Female 32.40 27.41 25.49 Post-retirement Future life Expectancy (Years) Male Female 31.57 27.03 25.23 34.36 29.36 27.42 102 South Miami Pension Plan 13 A. Mortalitv (cont'd) Actuarial Assumptions and Methods Used in the Valuation Police Officer Mortality Assumptions: For healthy participants during employment, RP-2000 Combined Healthy Participant Mortality Tables, separate rates for males and females, with 90% Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment, RP-2000 Annuitant Mortality Tables, separate rates for males and females, with 90% Blue Collar Adjustment / 10% White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male partiCipants, 60% RP 2000 Disabled Male Mortality Table setback four years /40% RP 2000 Annuitant Male Mortality Table, with White Collar Adjustment and no setback, without projected mortality improvements. For disabled female particpants, 60% RP 2000 Disabled Female Mortality Table set forward two years / 40% RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment, without projected mortality improvements. Sample Ages (2018) 55 60 62 Sample Ages (2038) 55 60 62 Pre-retirement FutureUfe Expectancy (Years) Male Female 29.84 24.96 23.09 32.60 27.56 25.59 Pre-retirement Future Ufe Expectancy (Years) Male Female 32.06 27.21 25.34 34.54 29.49 27.51 Post-retirement FutureUfe Expectancy (Years) Male 29.33 24.76 22.97 Female 32.40 27.41 25.49 Post-retirement Future Life Expectancy (Years) Male Female 31.57 27.03 25.23 34.36 29.36 27.42 102 South Miami Pension Plan 13 170 Act u arial Assumptions and Methods Used in the Valuation B. Inves tm ent Return to be Earned by F nd 7.375% (net of investment expenses ), compounded annually-includes infla t ion at 2.75%. C. All owances for Expenses or Continge ncies Actual expenses paid in previous yea r . D. Emp loyee Withd rawa l Rates Withdrawa l rates for ma les and for fema les were used in accordance with the following illustrative examp le based upon number of years of service: E. Disabil it y Ra t es Service 1-2 3-6 7 -10 11 & Over Withdrawal Rates Per 100 Emp loyees Po lice General/ AMSC 12.00 8.00 8.00 3.50 20 .00 9.25 5.00 5.00 1985 Disability St udy, Class 1 with se para t e rates for fema les . F. Marit al Assu mptions 100% of active members are ass u med to be married . Whe re applicable, females are assumed to be three years yo unger t han their male spous es . G. Salary Increase Factors Current salary is assumed to i ncreas e in acco rdance wi t h the following table based upon number of years of serv ice -inc ludes wage inflation o f 3.25 %. Serv ice 0-9 10-14 15 -19 20 & over Po lice 5.25% 3.75% 3.75% 3.75% General/ AMSC 5.25% 4.75% 4,25% 3.75% 103 So uth M iam i Pe nsio n Plan 14 Actu arial Assumptions and Methods Used in the Valuation B. Investment Return t o be Earned by F nd 7.375% (net of investment expenses ), compounded annually -includes inflation at 2.75%. C. All owances for Expenses o r Continge ncies Actua l expenses paid in previous yea r . D. Emp loyee Withdrawa l Rates Withdrawal rates for ma les and for females were used in accordance with the fol lowing illustrative example based upon number of years of service: E. Disability Rates Service 1-2 3-6 7 -10 11 & Over Withdrawal Rates Per 100 Employees Po lice General / AMSC 12.00 8.00 8.00 3 .50 20 .00 9.25 5.00 5.00 1985 Disability St udy, Class 1 with se para t e rates for fema les. F. Marit al Ass um ptions 100% of active members are assum ed to be married. Where applicable, females are assumed to be three years younger tha n their male spous es. G. Salary In crease Fact o rs Current salary is assumed to i ncreas e in accordance with the following table based upon number of years of service -includes wage inflation o f 3.25%. Serv ice 0-9 10-14 15 -19 20 & over Police 5.25% 3.75% 3.75% 3.75% General! AMSC 5.25% 4.75% 4,25% 3.75% 103 So uth M iami Pe nsi o n Pla n 14 171 H. Increase in Covered Payroll Actuarial Assumptions and Methods Used in the Valuation 4.0% per year, limited to average annual increase over most recent ten years (1.4%) but not less than 0.0% for Police Officers. No increase in covered payroll is assumed for General Employees including AMSC. I. Retirement Rates Rates of Early Retirement for Police Officers were used in accordance with the following table. Years Preceding Normal Retirement 1-6 7 -10 Police 5% 10% Rates of Normal Retirement were used in accordance with the following tables. Age Police General * 55 -59 N/A 10% 60-61 25% 10% 62 -64 40% 25% 65 -66 100% 25% 67 & above 100% 100% Service Police 25 years 100% AMSC ** 10% 25% 35% 35% 100% * Rates are 25% for Tier 2 members for each year upon meeting 33 years of service until 100% at age 67. ** Includes Ear ly Retirement. Rates are 25% be low the age of 62 and 35% between the ages of 62 and 66 upon meeting 33 years of service until 100% at age 67. General Employees who retire prior to age sixty (60) but after attainment of ten (10) years of Credited Service (55 & 10) are assumed to receive an actuarially reduced benefit payable immediately upon retirement. J. Cost of Living Inc reases Future cost of living increases for General Employees (other than Tier 2 General Employees) and Police Officers are assumed to be 3.0% per annum. K. Valuation of Assets The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The smoothed value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80 % of the fair market value of Plan assets and whose upper limit is 120% of the fair market value of Plan assets. 104 South Miami Pension Plan 15 H. Increase in Covered Payroll Actuarial Assumptions and Methods Used in the Valuation 4.0% per year, li mited to average annual increase over most recent ten years (1.4%) but not less than 0.0% for Pol ice Officers. No increase i n covered payroll is assumed for General Employees including AMSC. I. Ret i rement Rates Rates of Ea r ly Reti rem e nt f or Police Officers were us ed in accordance with the fol lowing table. Years Preced i ng Normal Ret i rement 1-6 7 -10 Pol ice 5% 10% Rates of Normal Retirement were used i n accordance with the following tab les. Age Police Genera l * 55 -59 N/A 10% 60 -61 25% 10% 62 -64 40% 25% 65 -66 100% 25% 67 & above 100% 100% Service Po l ice 25 years 100% AMSC ** 10 % 25% 35% 35% 100% * Rates are 25% for Tie r 2 members f or each year u pon meeti ng 33 years of service until 100% at age 67. ** I ncludes Ear ly Ret ire m en t . Rates are 25% be low t he age o f 62 and 35% between the ages of 62 and 66 upon meeting 33 yea rs of serv ice unti l 100% at age 67. Genera l Employees who retire prior to age sixty (60) but after attainment of ten (10) years of Credited Service (55 & 10) are ass umed t o receive an actuaria ll y reduce d benefit payable immediate ly upon retirement. J. Cost of Living Inc r eases Future cost of living increases for General Em ployees (o t her than Tie r 2 General Emp loyees) and Police Officers are assumed to be 3.0% per annum. K. Va luat ion of Assets The met hod used for de t erm i ning the smoot hed value of ass ets phas es in th e d eviation between the expected and actua l return on assets at the r ate of 20% per year. The smoothed va l ue of assets will be further adjusted t o the extent necessa ry to fa ll within the corridor whose lower limit is 80 % of the fa i r market value of Plan assets and whose upper l i mit is 120% of t he fai r m a rket va lue of Plan as sets. 104 Sout h M ia mi Pension Pla n 15 172 L. Cost Methods Ac t uarial Assumptions and Methods Used in the Valuation Norma l Ret i rement, Termination, Disab ility and Pre-Retirement Death Benefit: Entry-Age-Actuarial Cost Method Under t his method the normal cos t for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assuming the Plan had always been in effect. The normal cost for the Plan is the sum of the ind iv idual normal costs for all active employees. The actuarial accrued liability as of any valuation date for each act ive employee or i nactive employee who is eligible to receive benefits under the Plan is the excess of the actuarial pre sent va lu e of estimated future benefits over the actuarial present value of current and future normal costs. The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrued liability over the smoothed value of assets of the Plan . M. Changes Si nc e Previous Actuaria l Valuation AMSC Retirement Rates were: Age 55 -59 60-61 62 -64 65 -66 67 & above AMSC * 10% 10% 25% 25% 100% * Includes Early Re ti rement for AMSC Employees . Rates are 25% for Tier 2 and AMSC members for eac h year upon meeting 33 years of service unt il 100% at age 67. 105 So uth Mia mi Pension Plan 16 L. Cost Methods Ac t uarial Assumptions and Methods Used in the Valuation Norma l Retirement, Termination, Disability and Pre-Retirement Death Benefit: Entry-Age-Actua rial Cost Method Under this method the normal cos t for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assumi ng the Plan had always been in effect. The normal cost for the Plan is the sum of the individual normal co sts for all active employees. The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the Plan is t he excess of the actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs . The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrue d liab il ity over the smoothed value of assets ofthe Plan. M. Changes Since Previous Actuarial Valuation AMSC Retirement Rates were: Age 55 -59 60-61 62 -64 65 -66 67 & above AMSC* 10% 10% 25% 25% 100% * Includes Early Retirement for AMSC Employees . Rates are 25% for Tier 2 and AMSC members for each year upon meeting 33 year s of service until 100% at age 67. 105 South Miami Pension Plan 16 173 RESOLUTION NO. ___ 1_4_6-01-11294 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF soum MIAMI., FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES, AU1HORJZING rnE CITY MANAGER TO SIGN A THREE-YEAR CONTRACT WI1H GABRIEL, ROEDER, SMilH & COMPANY(ORS), WITH TI-IE OPTION FOR RENEW AL FOR ADDITIONAL YEARS. WHEREAS, the City of South Miami employee Pension Fund currently utilizes WATSON WYATT as the actuarial consulting finn; and WHEREAS, Watson Wyatt (a~aries) has advised the City that effective August 31, 2001, it reached an alliance with Gabriel, Roeder & Company (ORS); and WHEREAS, the City sought to conduct a formal search for actuarial services from different companies and received proposals from four of them~ and WHEREAS, the pension board reviewed the proposals submitted and interviewed representatives of the four companies that responded; and WHEREAS, the pension board bas recommended that the service contract be awarded to Gabriel, Roeder & Company, and the pension attorney concurred that the company is premier in the industry. NOW THEREFORE BE IT RESOLVED BY TIIE MAYOR AND Cl1Y COMMISSION OF SOUTH MIAMI, FLORIDA, THAT: Section I Effective immediately, Gabriel, Roeder & Company (GRS) will serve as the actuarial consulting firm in accordance with the tenns and conditions of the City pension plan. Section 2 The City Manager is ~uthori7.ed to sign a three-year contract with the option for renewals for additional years with the company for pension actuarial services. Section 3 This resolution shall take effect immediately upon approval. PASSED AND ADOPTED this 2nd day of October 2001. APP~;...-__..~._;? .-7 . ~~Hu/ 10LX, ATTEST: COMMISSION VOTE: 4-0 Mayor· Robaina: Yea READ AND APPROVED AS TO FORM: ~ Vice Mayor Feliu: Yea Commissioner Bethel: Yea Commissioner Wiscombe: not preser. Commissioner Russell: Yea --~/ b. ~//~,-l. CITY ATTORNEY II 106 RESOLUTION NO. ___ 1_4_6-01-11294 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF TIlE CITY OF SOUlH MIAMI, FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES, AUTHORIZING TIlE CITY MANAGER TO SIGN A THREE-YEAR CONTRACT WI1H GABRIEL, ROEDER, SMI1lI & COMPANY(GRS), WITH 1HE OPTION FOR RENEWAL FOR ADDITIONAL YEARS. WHEREAS, the City of South Miami employee Pension Fund currently utilizes WATSON WYATT as the actuarial consulting finn~ and WHEREAS, Watson Wyatt (actuaries) has advised the City that effective August 31, 2001, it reached an alliance with Gabriel, Roeder & Company (GRS); and WHEREAS, the City sought to conduct a formal search for actuarial services from different companies and received proposals from four of them; and WHEREAS, the pension board reviewed the proposals submitted and interviewed representatives of the four companies that responded; and WHEREAS, the pension board has recommended that the service contract be awarded to Gabriel, Roeder & Company, and the pension attorney concurred that the company is premier in the industry. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND eI1Y COMMISSION OF soum MIAMI, FLORIDA, THAT: Section 1 Effective immediately, Gabriel, Roeder & Company (GRS) will serve as the actuarial consulting firm in accordance with the tenns and conditions of the City pension plan. Section 2 The City Manager is authorized to sign a three-year contract with the option for renewals for additional years with the" company for pension actuarial services. Section 3 This resolution shall take effect immediately upon approval. PASSED AND ADOPTED this 2nd day of October 2001. COMMISSION VOTE: 4-0 Mayor" Robaina: Yea READ AND APPROVED AS TO FORM: ~~"// ,,"_ ,I' Vice Mayor Feliu: Yea Commissioner Bethel: Yea Commissioner Wiscombe: not preser. Commissioner Russell: Yea _. __ ""''1.-"1-6 ~. i....A::=:" ... t .10 <" 1_ CITY ATIORNEY :; 106 174 TO: FROM: The Request Mayor and City Commission ~-.. / . Charles D . Scurr /J / -' City Manager //)//// / I / i'.l<~ J C?# . .? ././.AJ~,; ~v· DATE :September 26, 2001 Re: AGENDA ITEM# -11 Transfer of Actuarial Consulting Services from Watson Wyatt to Gabriel, Roeder, Smith & Company A RESOLU TION OF THE MAYOR AND CITY COMJ\1ISSION OF THE CITY OF SOUTH MIA.ivll , FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES , AUTHORlZING THE CITY MANAGER TO SIGN A THREE YEAR CONTRACT WITH GABRIEL, ROEDER, Sl\1ITH & COJvIP ANY (HEREINAF TER GRS) WITH RENEW AL OPTIO N FOR ADDITION AL YE AR S . Background and Analysis Recentl y, the Ci t y pension board made a business decision to solicit bids for actuarial service s frorn different compan ies with the intention of reducing the total cost of administering the pension plan. Four compani es submitted p ro posals in response to the solicitation. These four companies are as follows : Gabriel, R oeder, Smith & Company (Watson Wyatt) Buck Co n sultants AON Con sulting Services Segal Com pany The four proposals were reviewed by the pension board members , and the representatives of each company were given the opportunit y to respond to questions posed by the board members with regards t o the proposals submitted. After careful deliberations, th e pen s ion board unanimousl y agreed to award the service contract to Gabriel , Roeder , Smith & Company (GRS). The company recently formed an alliance with Watson Wyatt. It is a private corporation that has been in bu siness since 193 8. It provides b e nefit consulting services to over 5 00 public and pri vat e sector clie!.1t s nat ionwide with an emphasi s on the public sector retirement system. Just for your information, the pen sion attorn ey concurred that GRS is a prern.ier company in the industry . At t ached with the resolution is t he schedule of services that will be provided and fee to be charged by the company for the ne xt three years . The payment of the fee will be charged directly 107 TO: Mayor and City Commission DATE : September 26, 2001 FROM: The Request Re : AGENDA ITEM # ~ Transfer of Actuarial Consulting Services from Watson Wyatt to Gabriel, Roeder, Smith & Company A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI , FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES, AUTHORlZING THE CITY MANAGER TO SIGN A THREE YEAR CONTRACT WITH GABRIEL, ROEDER, SWTH & CONlP ANY (HEREINAFTER GRS) WITH RENEWAL OPTION FOR ADDITIONAL YEARS. Background and Analysis Recently, the City pension board made a business decision to solicit bids for actuarial services frorn different companies with the intention of reducing the total cost of administering the pension plan. Four compani es submitted proposals in response to the solicitation. These four companies are as follows : Gabriel, R oeder, Smith & Company (Watson Wyatt) Buck Consultants AON Consulting Services Segal Co mpany The four proposals were reviewed by the pension board members , and the representatives of each company were given the opportunity to respond to questions posed by the board members with regards t o the proposals submitted . After careful deliberations, the pension board unanimously agreed to award the service contra t to Gabriel , Roeder , Smith & Company (GRS). The company recently formed an alliance with Watson Wyatt. It is a private corporation that has been in business since 1938 . It provides benefit consulting services to over 500 public and private sector cliellts nationwide with an emphasis on the public sector retirement system . Just for your informat ion , the pen sion attorney concurred tbat GRS is a premier co mpany in the industry . Attached with the resolution is the schedule of services that will be provided and fee to be charged by the company for the ne xt three years . The payment of the fee will be charged directly 107 175 against the pension fund bank account. RECOMMENDATION I recommend approval. 108 against the pension fund bank account. RECOMMENDATION I recommend approval. 108 176 SCOPE OF SERVICES AND FEE PROPOSAL 1. FIXED FEE SERVICES Based upon our experience with similar Plans and based upon our discussions, we propose a comprehensive fixed-:-fee services that the Boards can be expected to require. We have then determined our fees based upon our analysis of these comprehensive regular recurring services. The advantages of this fixed fee approach to the Boards include Imowing in advance the annual cost for all anticipated recurring services and the ability to budget and to prevent any surprises after the work has been perfonned. Further, we will guarantee this fixed fee amount for two years. The fixed fee amount will be increased only by inflation as measured by the Consumer Price Index for the third and subsequent years. The fixed fee services may be summarized as follows: • Preparation and delivery of the annual Actuarial Valuation Report including attendance at a Pension Board meeting to present the results of our valuation and respond to any questions. Our report will include the following requested services: • ✓ Collection and reconciliation of Member census data, ✓ Recommendation of actuarial assumptions and methods, ✓ Calculation and reconciliation of actuarial value of assets. ✓ Determination of liabilities in accordance with State, actuarial and Government Accounting Standards Board (GASB) requirements, ✓ Detennination of required contributions, ✓ GASB expense and disclosure exhibits (GASB #25 and #27) and ✓ Compliance with Chapters 112 and 18S, Florida Statutes. • Preparation and delivery of Individual Employee Benef'"it Statements. We recommend that we prepare one copy to be distributed to active members and a second copy to be retained in the Plan records. • Preparation and delivery of actuarial studies to ~etermine financial effect of plan changes or changes in actuarial assumptions or methods (up to 2 per annum}, • Preparation and delivery of Actuarial Impact Statements to be filed with the State after passage of amending City Ordinances after passage at first reading but prior to passage at second reading. {up to 2 per annum), • Attendance at up to two additional Committee Meeting. • Response to any Inquiries from the State relating to our Actuarial Valuation Report. • Response to auditor's confirmation request and coordination with other service providers. • Biennial preparation of SPD financial addendum. • Triennial review of actuarial equivalence definition for determining optional fonns of payment including preparation of revised option factor tables upon any update. o Review of plan experience in comparison to actuarial assumptions. • Preparation of benefit calculations for retiring or tenninating employees (up to 6 per annum). . • • Calculation of buy-back amounts (up to 6 per annum) • Telephone conversations on pending or anticipated issues that may affect our Actuarial Valuation Report that do not result in a work assignment • Review legislation that may impact plan in coordination with Plan Attorney. • Review compliance with State and Federal regulations in coordination with Plan Attorney Our fixed fee for these comprehensive services wi11 be SlS,600 annually. We will bill for our 109 fixed fee services quarterly at the rate o( $3,900 per quarter. GABRIEL, ROEDER. SMITH & COMPANY SCOPE OF SERVICES AND FEE PROPOSAL 1. FIXED FEE SERVICES Based upon our experience with similar Plans and based upon our discussions, we propose a comprehensive fixed-:-fee services that the Boards can be expected to require. We have then determined our fees based upon our analysis of these comprehensive regular recurring services. The advantages of this fixed fee approach to the Boards include knowing in advance the annual cost for all anticipated recutTing services and the ability to budget and to prevent any surprises after the work has been performed. Further, we will guarantee this fixed fee amount for two years. The fixed fee amount will be increased only by inflation as measured by the Consumer Price Index for the third and subsequent years. The fixed fee services may be summarized as follows: • Prep8l'ation and delivery of the annual Actuarial Valuation Report including attendance at a Pension Board meeting to present the results of our valuation and respond to any questions. Our report will include the following requested services: . '" Collection and reconciliation of Member census data, '" Recommendation of actuarial assumptions and methods, ~ Calculation and reconciliation of actuarial value of assets, ~ Determination of liabilities in accordance with State, actuarial and Government Accounting Standards Board (GASB) requirements, 0/ Detennination of required contributions, 0/ GASB expense and disclosure exhibits (GASB #25 and #27) and 0/ Compliance with Chapters 112 aod 185, Florida Statutes. ~ Preparation and delivery ofIndividual Employee Benefit Statements. We recommend that we prepare one copy to be distributed to active members and a second copy to be retained in the Plan records. o Preparation and delivery of actuarial studies to ~etermine financial effed of plan ehanges or changes in actuarial assumptions or methods (up to 2 per annum), o Preparation and delivery of Actuarial Impact Statements to be filed with the State after passage of amending City Ordinances after passage at first reading but prior to passage at second reading. (up to 2 per annum). • Attendance at up to two additional Conunittee Meeting. • Response to any inquiries from the State relating to our Actuarial Valuation Report. • Response to auditor's confirmation request and coordination with other service providers. • Biennial preparation ofSPD financial addendum. • Triennial review of actuarial equivalence definition for determining optional fonns of payment including preparation of revised option factor tables upon any update. IOl Review of plan experience in comparison to actuarial assumptions. • Preparation of benefit calculations for retiring or terminating employees (up to 6 per annum). • Calculation of buy-back amounts (up to 6 per annum) • Telephone conversations on pending or anticipated issues that may affect our Actuarial Valuation Report that do not result in a work assignment • Review legisJation that may impact plan in coordination with Plan Attorney. • Review compUance with State and Federal regulations in coordination with Plan Attorney Our fixed fee for these comprehensive services will be 515,600 annually. We will bill for our 109 fixed fee services quarterly at the rate oi.$3,900 per quarter. GABRIEL, ROEDER. SMITH & COMPANY 177 SCOPE OF SERVICES AND FEE PROPOSAL (CONTINUED) 2. OTHER SERVICES While the breadth of fixed fee services is quite comprehensive, additional services of a non- recurring nature will be based upon our hourly rates. These rates would apply to any actuarial studies or impact statements in excess of the two per annum included under the fixed fee arrangement. . Our hourly rates are detennined based upon the experience and abilities of our employees. The following are our current hourly rates reflecting the South Miami Team members. • Senior Consultant and Actuary: $285 • Consultant and Actuary $150 • Analyst $125 • Administrative Assistant $ 85 Our hourly rates are quite competitive in the industry. Further, we will not increased these hourly rates for two years. In the third and subsequent years our hourly rates will be increased only by inflation as measured by the Consumer Price Index for the third and subsequent years Unlike some other firms, our hourly rates include our overhead. We do not load our fees for technical and administrative services. 3. BENEFIT CALCULATIONS AND BUY BACK CALCULTIONS (IN EXCESS OF SIX EACH PER ANNUM) While we do not anticipate a volume of calculations in excess of the six each covered under the fixed fee arrangement, our fees for excess benefit calculations and buy-backs will be detemtined based upon hourly rates and we will agree to a not.to-exceed basis. That is, to the extent that our costs based upon our hourly rates are lower than the noMo-exceed amounts, we will bill our costs. To the extent that our costs based upon our hourly rates equals or exceeds the not-to- exceed amount, we will bill the not-to-exceed amount. We anticipate that our costs may be less than the not-to-exceed amount when verifications, calculations or buy-backs are batched (requested in groups). The following are our not-to-exceed amounts: • Benefit verifications: $150 per verification • Benefit calculations: $250 per calculation • Buy-back calculations: $275 per calculation. Our hourly rates are shown above. GABRIEL. ROEDER, SMITH & COMPANY 110 SCOPE OF SERVICES AND FEE PROPOSAL (CONTINUED) 2. OTHER SERVICES While the breadth of fixed fee services is quite comprehensive, additional services of a non- recurring nature will be based upon our hourly rates. These rates would apply to any actuarial studies or impact statements in excess of the two per annum included under the fixed fee arrangement. . Our hourly rates are detennined based upon the experience and abilities of our employees. The following are our current hourly rates reflecting the South Miami Team members. • Senior Consultant and Actuary: $285 • Consultant and Actuary $150 • Analyst $125 • Administrative Assistant $ 8S Our hourly rates are quite competitive io the industry. Further, we will not increased these hourly rates for two years. In the third and subsequent years our hourly rates will be increased only by inflation as measured by the Consumer Price Index for the third and subsequent years Unlike some other finns, our hourly rates include our overhead. We do not load our fees for technical and administrative services. 3. BENEFIT CALCULATIONS AND BUY BACK CALCULTIONS (IN EXCESS OF SIX EACH PER ANNUM) While we do not anticipate a volume of calculations in excess of the six each covered under the fixed fee arrangement, our fees for excess benefit calculations and buy-backs will be detennined based upon hourly rates and we will agree to a not-to-exceed basis. That is, to the extent that our costs based upon our hourly rates are lower than the not~to-exceed amountS, we will bill our costs. To the extent that our costs based upon our hourly rates equals or exceeds the not-to- exceed amount, we will bill the not-to-exceed amount. We anticipate that our costs may be less than the not-to-exceed amount when verifications, calculations or buy-backs are batched (requested in groups). The following are our not-to-exceed amounts: • Benefit verifications: $150 per verification • Benefit calculations: $250 per calculation • Buy-back calculations: $275 per calculation. Our hourly rates are shown above. GABRIEL, ROEDER, SMITH & COMPANY 110 178 Iii\ <iABRIEl., ROEDER. SM!TH & COMPAN Y Con5\.lltiintJ ll< Actvadi::, September 26 , 2001 Ms. Jeanette Enrizo -Navarro Pension Administrator 301 Ea.st La s Ola:; alvd .11 S·J•l 92CO • F:. •~ac.cerda le. FL 33301 o 954·527··,1)~8 • FAX E54·525-G08:i General and Police Pension F\11'.ds City of South Miami 6130 Sunset Drive Soum Miami, Florida 33143-5093 Dear Jeanette: As discussed, we are coi:firming our oral advice agreeing to an expa.1sion of the services covered ·ll!lder our fixed-fee proposal. As you are aware, our initial fixed-fee proposal provided for up to two (2) actuarial cost studies plus up to t,vo (2) actuaria l impact s~s.~ements per annum. We had previously agreed to expand lhese services to inc1 1Jde a total of eig.h.: {8) actuarial cost s-:udies or actcarial impact statements in any combination during each period o f two {2) years. \Ve now co,firm that we wi!l expand our fb.ed- fee ser\ices to include a total of rJne (9) actuariaJ -:ost studies or ac~uarial impact statements in any combination during each period of two (2) yeGTS That is to say, for the period from date of b.:eption (i .e:. October 1 1 (\'J 1) to u,:e ·s·e::o nd arJ1i v ersary of the date of inception (i.e. Oc tober I, 2003), we wi ;: pef.orm up _Lu a total of nine (9) ac.tuarial studies or actu&-ial impact statements. During the subsequent m•o-year period (i.e. October l, 2003 -October 1, 2005), the fued-fe~ would cov~ nine (9) actuarial cost srudies or actuarial impact statements in any combination . For exa..-nple, dt0.ng the rwo year period, ti.11e Board could reques~ six (6 ) actuarial cost studies and three (3) actuarial impact sta1ernen ~s, or some other combi.nztion totaling nine (9), without incurring additi onal fees . We trust that foe Pension Boards and Cicy \:.'i1l fir:d our clarific ation worthwhile. We remain excited about the opportuniry to wcrk ,vith you . Sincerest regards. Lawrence F. Wilsor., A .S .A. Senior Consultant a.,d Actuary 111 GABRJ£1", ROEOER. SMHH & COMPANY Consultilnu '" Athlllrie$ Septembei 26,2001 Ms. Jeanette Enrizo·Navarro Pension Administrat or General and Police Pensi on FUJ'.ds City of South Mia mi 6130 suriset Drive Soum Nfiarni, Florida 33143-5093 Dear Jeanette: As discussed, we are codl.1-ming our oral advice agreei ng to an ex pansion of the services covered under our fixed-fee proposal. As you are aware, our initial fixed-fee proposal proyjded for up to two (2) actuarial cost studies plus up to two (2) actuaria l impact sta~ements per annum. We had previousl y agreed to expand these serv ices to inc1ude a total of ejg.h.: (8) actuarial cost s~die, or actt:.arial impact st3:ements in any combina tion during each perio d of two (2) years . We now contii'm that we wi!l expand our n)'.ed. fee 5er\ices to include a tara: of nine (9) actuarial .::ost studies or a c~al impact statements in any combination during each period of two (2) ye.ars That is to say, for the period from date l)f b;eption (i .E:. October 1 ;(\')1) to tp~"s-rXCind arJ1i v ers8...T)· of the date of inc.ep'ion (i.e. Octobei 1, 2003), we wi ;: per::orm up .to a total of nine (9) actuarial studies or actua.-ial impact statements . During the sub se quent iV.'C'-year period (i .e. October l, 2003 -October !: 2005), the fixed-feg would cover nine (9) actuarial cost srudies or actuarial impact statemems in any com bination. For ex.ampJe, dlL."";~f1g the \'w'o year period, ul.e Board could reques~. six (6) actuarial cost studies and Lru-ee (3) actuarial impact st<.temen ts: or some other combiIlztion totaling rJne (9), without incurring additional fees . We trust that l1,.e Pension Boards and City will fLnd Ol!r clarification worthwhile. We remain excited about t.~e opportUn1')' to w ork \v~th you. Sincerest regards. Lawrence F. Wilsor., .o\.S.A. Senior Consultant a..'1d Acruar;.· . ~. 111 179 ORDINANCE NO. 18-21-2408 An Ordinance amending the South Miami Pension Plan; by Amending Section 16-12, "Definitions"; by Amending Section 16-14, "Pension benefits and retirement dates"; and by Amending Section 16-17, "Termination". WHEREAS, the City established the South Miami Pension Plan ("Plan") for City employees in 1965, and has amended the Plan on numerous occasions; and WHEREAS, the City adopted Ordinance 23-19-2336 on June 18, 2019, implementing several changes to the Plan, including a reduction in the normal retirement age for AMSC members from age 65 with three years of service to age 60 with five years of service; however, there was no change to the early retirement date of age 55 with ten years of service; and WHEREAS, The Plan currently differentiates in certain benefits provided to members in different employee groups and membership tiers; and WHEREAS, the City has determined that it is in the best interest of employees to provide greater consistency in the benefits provided to members in different employee groups and membership tiers; and WHEREAS, the City is recommending a change in the vesting period for Administrative Management Service Class ("AMSC") members hired in the future from five years to ten years of continuous service, consistent with the vesting period for First Tier and Second Tier members; and WHEREAS, the City is recommending a change in the final average compensation period for AMSC members from eight years to five years, consistent with the final average compensation period for police officers; and WHEREAS, the City is recommending that the option of retiring early upon reaching age 55 with ten years of service and receiving a reduced early retirement benefit be eliminated for AMSC members, consistent with Second Tier members; and WHEREAS, the City is recommending that the normal retirement date for AMSC members be revised to include retirement at age 55 with twenty years of service; and WHEREAS, the City Commission has received and reviewed actuarial impact statements related to such amendments; and WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the South Miami Pension Plan in order to continue to meet the City's objectives of attracting and retaining the best talent as City employees, and managing employee turnover; 1 ORDINANCE NO. 18-21-2408 An Ordinance amending the South Miami Pension Plan; by Amending Section 16-12, "Definitions"; by Amending Section 16-14, "Pension benefits and retirement dates"; and by Amending Section 16-17, "Termination". WHEREAS, the City established the South Miami Pension Plan ("Plan") for City employees in 1965, and has amended the Plan on numerous occasions; and WHEREAS, the City adopted Ordinance 23-19-2336 on June 18, 2019, implementing several changes to the Plan, including a reduction in the normal retirement age for AMSC members from age 65 with three years of service to age 60 with five years of service; however, there was no change to the early retirement date of age 55 with ten years of service; and WHEREAS, The Plan currently differentiates in certain benefits provided to members in different employee groups and membership tiers; and WHEREAS, the City has determined that it is in the best interest of employees to provide greater consistency in the benefits provided to members in different employee groups and membership tiers; and WHEREAS, the City is recommending a change in the vesting period for Administrative Management Service Class ("AMSC') members hired in the future from five years to ten years of continuous service, consistent with the vesting period for First Tier and Second Tier members; and WHEREAS, the City is recommending a change in the final average compensation period for AMSC members from eight years to five years, consistent with the final average compensation period for poliCe officers; and WHEREAS, the City is recommending that the option of retiring early upon reaching age 55 with ten years of service and receiving a reduced early retirement benefit be eliminated for AMSC members, consistent with Second Tier members; and WHEREAS, the City is recommending that the normal retirement date for AMSC members be revised to include retirement at age 55 with twenty years of service; and WHEREAS, the City Commission has received and reviewed actuarial impact statements related to such amendments; and WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the South Miami Pension Plan in order to continue to meet the City's objectives of attracting and retaining the best talent as City employees, and managing employee turnover; 1 180 Ord. No. 18-21-2408 NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section 1: The foregoing recitals are hereby ratified and incorporated by reference as if fully set forth herein and as the legislative intent of this Ordinance. Section 2: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-12, "Definitions" as follows: * * * Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner. For general employees, except for Second Tier Members and AMSC 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 definition of final 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) five (5) years of credited service. In the event an AMSC Member has less than eight (8) five (5) 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 City of 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 of final 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: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-14, "Pension benefits and retirement date" as follows: (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows: * * * 2 Ord. No. 18-21-2408 NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section 1: The foregoing recitals are hereby ratified and incorporated by reference as if fully set forth herein and as the legislative intent of this Ordinance. Section 2: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-12, "Definitions" as follows: * * * Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner. For general employees, except for Second Tier Members and AMSC 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 definition of final 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) five (5) years of credited service. In the event an AMSC Member has less than eight (8) five (5) 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 ofthe police officer or sergeant's career with the City of 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 of final 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 se rvice. 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: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-14, "Pension benefits and retirement date" as follows: (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows: * * * 2 181 Ord. No. 18-21-2408 (3) AMSC Members. The normal retirement date for AMSC Members hired before [effective date of this Ordinance] shall be the earlier of (a) age 60 and completion of five (5) years of credited service; or (b) age 55 and completion of twenty (20) years of credited service; or (bf) completion of thirty-three (33) years of credited service . The normal retirement date for AMSC Members hired on or after [effective date ofthis Ordinance] shall be the earlier of (a} age 60 and completion of ten (10) years of credited service; or (b) age 55 and completion of twenty (20) years of credited service; or (c) 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 often (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 which is entitled up to early retirement date in accordance with subsection (b). Table-General Employee participant as of September 30, 2011, /\MSC Participants - Percentages for early retirement date 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 ~ 53.33 10 50.00 3 Ord. No. 18-21-2408 (3) AMSC Members. The normal retirement date for AMSC Members hired before [effective date of this Ordinance] shall be the earlier of (a) age 60 and completion offive (5) years of credited service; or (b) age 55 and completion of twenty (20) years of credited servicej or (Sf) completion of thirty-three (33) years of credited service . The normal retirement date for AMSC Members hired on or afte r [effective date of this Ordinance] shall be the earlier of (a) age 60 and completion of ten (10) years of credited service; or (b) age 55 and completion of twenty (20) years of credited service; or (c) completion of thirty-three (33) years of credited service . (A) Early retirement. (1) A general employee participant as of September 3D, 2011, anel AMSC Particil'lants 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 which is entitled up to early retirement date in accordance with subsection (b). Table-General Employee participant as of September 30,2011, AMSC Particil'lants - Percentages for early retirement date 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 ~ 56.67 2 53.33 10 50.00 3 182 Ord. No. 18-21-2408 (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 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. * * * Section 4: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-17 "Termination of Employment" as follows: (a) If the employment of a participant is terminated except by retirement, transfer to ineligible status or death, the participant's interest and rights under this plan shall be limited to those contained in the following sections of this section. (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 1 is 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: For vested participants, pension 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 prior to 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 on which pension benefits commence; or an amount determined by multiplying the amount of pension to which the participant is entitled in accordance with subsection 16-14(a) or 16-14(b), whichever is applicable bv a percentage determined in accordance with the follovc;ing schedule on the basis of the length of credited service. N1::1mber of l'ears of credites seri.iice Percentage bess than ;ig g -11--W ~ ~ g 3G ±4 4Q ~ w -±e @ -1-7 +G -18 gg -1-9 w ;rn or more -WQ 4 Ord. No. 18-21-2408 (2) Police officers. Shall be the completion oftwenty-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. * * * Section 4: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-17 "Termination of Employment" as follows: (a) If the employment of a participant is terminated except by retirement, transfer to ineligible status or death, the participant's interest and rights under this plan shall be limited to those contained in the following sections of this section. (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 1 is elected before the participant's normal retirement date. Option 1: A cash payment of an amount equal to the aggregate ofthe 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: For v ested participan t s, p ensi on 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 prior to 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 on which pension benefits commence; or an amount determined by multiplying t h e aR10unt of pen sion to which the participant is entitled in accordance with subsection 16-14(a) or 16-14(b), whichever is applicable by a percentage d etermin ed in accordance '.'I ith the f o llowi ng schedule o n th b . f t h I gth f En d e aS l s a e en a cre I e service . Nl::lm be r of ¥ears of credites ser¥ice Percentage bess than 1Q Q ±± .w ~ ~ g 3G ±4 4Q ~ W ±e @ ±7 +G -±& gg 1-9 9Q ~Q or more -100 4 183 Ord. No. 18-21-2408 Police officer participants, including bargaining unit employees, shall be one hundred (100) percent vested in the retirement plan upon completion of ten (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 of ten (10) years of continuous credited service. All Second Tier Members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous credited service. AMSC members hired on or after (effective date of this Ordinance) shall be 100% vested in the pension plan upon completion of ten (10) years of continuous credited service. AMSC Members who are employed on the (effective date of this Ordinance] shall be one hundred (100) percent vested in the pension plan upon completion of five (5) vears of continuous service. General employees and AMSC Members who opt to join the defined contribution plan of the City of South Miami shall vest in the defined contribution plan after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995 and have ten (10) years or more of continuous service will be one hundred (100) percent vested. * * * Section 5. 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 6. 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. However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances, that give the appearance of being in conflict when the two ordinances can be harmonized or when only a portion of the ordinance in conflict needs to be repealed to harmonize the ordinances. If the ordinance in conflict can be harmonized by amending its terms, it is hereby amended to harmonize the two ordinances. Therefore, only that portion that needs to be repealed to harmonize the two ordinances shall be repealed. Section 7. Codification. The provisions of this ordinance will become and be made part of the City of South Miami Land Development Code 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 8. Effective Date. This ordinance shall become effective upon enactment . PASSED AND ADOPTED this 7th day of September, 2021. 5 Ord. No. 18-21-2408 Police officer participants, including bargaining unit employees, shall be one hundred (100) percent vested in the retirement plan upon completion of ten (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 of ten (10) years of continuous credited service. All Second Tier Members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous credited service. AMSC members hired on or after [effective date of this Ordinance] shall be 100% vested in the pension plan upon completion of ten (10) years of continuous credited service. AMSC Members who are employed on the [effective date of this Ordinance ] shall be one hundred (100) percent vested in the pension plan I:Ipon completion of five (5) years of continl:lous service. General employees and AMSC Members who opt to join the defined contribution plan of the City of South Miami shall vest in the defined contribution plan after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995 and have ten (10) years or more of continuous service will be one hundred (100) percent vested. * * * Section 5. 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 6. 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. However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances, that give the appearance of being in conflict when the two ordinances can be harmonized or when only a portion of the ordinance in conflict needs to be repealed to harmonize the ordinances. If the ordinance in conflict can be harmonized by amending its terms, it is hereby amended to harmonize the two ordinances. Therefore, only that portion that needs to be repealed to harmonize the two ordinances shall be repealed . Section 7. Codification. The provisions ofthis ordinance will become and be made part of the City of South Miami Land Development Code as amended; that the sections of this ordinance may be renumbered or re-Iettered to accomplish such intention; and that the word "ordinance" may be changed to "section" or other appropriate word. Section 8. Effective Date. This ordinance shall become effective upon enactment. PASSED AND ADOPTED this 7th day of September, 2021. 5 184 Ord. No. 18-21-2408 ATTEST: 1st Reading-8/17 /21 2nd Reading -9/7 /21 6 APPROVED: COMMISSION VOTE: 5-0 Mayor Philips: Yea Commissioner Harris: Yea Commissioner Gil: Yea Commissioner Liebman : Yea Commissioner Corey: Yea Ord. No. 18-21-2408 ATTEST: 1st Reading -8/17/21 2nd Reading -9/7/21 6 APPROVED: COMMISSION VOTE: 5-0 Mayor Philips: Yea Commissioner Harris : Yea Commissioner Gil: Yea Commissioner Liebman : Yea Commissioner Corey: Yea 185 City Commission Agenda Item Report Meeting Date: September 7, 2021 Submitted by: Alfredo Riverol Submitting Department: Finance Department Item Type: Ordinance Agenda Section: Subject: Agenda Item No:18 . An Ordinance amending the South Miami Pension Plan; by Amending Section 16-12, "Definitions"; by Amending Section 16-14, "Pension benefits and retirement dates"; and by Amending Section 16-17, 'Termination ". 3/5 (City Manager-Finance Dept.) Suggested Action: Attachments: Memo Updated Pension Revisions-Avg Comp -Early Retire Out) DRAFT.docx FinalAMSC_Pension _Ordinance_rev_8.19.21_revised (5).docx South Miami AMSC Projection Study 10-1-2020 Report (60 10 NRD).pdf Res. No. 146-01-11294 (GRS).pdf October 12020-Summary of Retirement Plan Costs .pdf Ord_Amending_Ch_16_re_AMSCChanges_(Approved on lst).pdf GRS Actuarial Impact Statement 2021.pdf 1 City Commission Agenda Item Report Meeting Date: September 7, 2021 Submitted by: Alfredo Riverol Submitting Department: Finance Department Item Type: Ordinance Agenda Section: Subject: Agenda ttem No:18. An Ordinance amending the South Miami Pension Plan ; by Amending Section 16-12, "Definitions"; by Amending Section 16-14, "Pension benefits and retirement dates"; and by Amending Section 16-17, 'Termination". 3/5 (City Manager-Finance Dept.) Suggested Action: Attachments: Memo Updated Pension Revisions-Avg Comp -Early Retire Out) DRAFT.docx FinaIAMSC_Pension _Ordinance_rev_8.19.21_revised (S).docx South Miami AMSC Projection Study 10-1-2020 Report (60 10 NRD).pdf Res. No. 146-01-11294 (GRS).pdf October 12020 -Summary of Retirement Plan Costs. pdf GRS Actuarial Impact Statement 202l.pdf 1 186 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM THE CITY OF PLEASANT LIVING To: From: Via: Date: Subject: The Honorable Mayor & Members of the City Commission Shari Kamali, ICMA-CM, City Manager Alfredo Riverol, CPA, CGFM, CRFAC, CGMA September 7, 2021 An Ordinance amending the South Miami Pension Plan; by Amending Section 16- 12, "Definitions"; by Amending Section 16-14, "Pension benefits and retirement dates"; and by Amending Section 16-17, "Termination"; and providing for Severability; Providing for Inclusion in the Code; Providing for a Repealer; and Providing for an Effective Date. BACKGROUND The City on June 4, 2019, adopted Ordinance 23-19-2336 reducing the normal retirement age for AMSC members from 65 to 60, however the City of South Miami never amended Chapter 16 Article II, Section 16-14(A), "Early Retirement." to reflect the change. The City must eliminate the outdated section and update it in order to bring it into compliance. Furthermore, the City of South Miami currently has a few different benefits within the multiple classes of pension participant tiers and groups. The City is looking to eliminate some of those different benefits to provide consistency among the various groups . The City is looking to make the vesting period 10-years for all tiers and groups and have the final average compensation for Administrative Management Service Class (AMSC) members mirror the final average compensation provided to police. Currently, the AMSC members have a vesting period of 5- years, the proposal amends the vesting period of new AMSC members to 10-years, like all other tiers and groups. 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 of a proposed change in the provisions of a local retirement system certified by an enrolled actuary. The City requested that the City's Pension Plan Actuary, Gabriel Roeder Smith & Company (GRS), complete the required Actuarial Impact Statement. GRS issued their Actuarial Impact Statement before second reading and adoption of the Ordiance. The Actuarial Impact Statement is prepared reflecting the impact to the South Miami Pension Plan. The Florida Administrative Code (60T-1.004(3)(a)) states that an Actuarial Impact Statement must be certificated and signed and dated by the Plan Administrator and contain the following information: Page 1 of 2 2 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM THE CITY OF PLEASANT LIVING To; From: Via: Date: Subject: The Honorable Mayor & Members of the City Commission Shari Kamali, ICMA-CM, City Manager Alfredo Riverol, CPA, CGFM, CRFAC, CGMA September 7, 2021 An Ordinance amending the South Miami Pension Plan; by Amending Section 16- 12, "Definitions"; by Amending Section 16-14, "Pension benefits and retirement dates"; and by Amending Section 16-17, "Termination"; and providing for Severability; Providing for Inclusion in the Code; Providing for a Repealer; and Providing for an Effective Date. BACKGROUND The City on June 4, 2019, adopted Ordinance 23-19-2336 reducing the normal retirement age for AMSC members from 65 to 60, however the City of South Miami never amended Chapter 16 Article II, Section 16-14(A), "Early Retirement." to reflect the change. The City must eliminate the outdated section and update it in order to bring it into compliance. Furthermore, the City of South Miami currently has a few different benefits within the mUltiple classes of pension participant tiers and groups. The City is looking to eliminate some of those different benefits to provide consistency among the various groups. The City is looking to make the vesting period 10-years for all tiers and groups and have the final average compensation for Administrative Management Service Class (AMSC) members mirror the final average compensation provided to police. Currently, the AMSC members have a vesting period of 5- years, the proposal amends the vesting period of new AMSC members to 10-years, like all other tiers and groups. 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 of a proposed change in the provisions of a local retirement system certified by an enrolled actuary. The City requested that the City's Pension Plan Actuary, Gabriel Roeder Smith & Company (GRS), complete the required Actuarial Impact Statement. GRS issued their Actuarial Impact Statement before second reading and adoption of the Ordiance. The Actuarial Impact Statement is prepared reflecting the impact to the South Miami Pension Plan. The Florida Administrative Code (60T-1.004(3)(a)) states that an Actuarial Impact Statement must be certificated and signed and dated by the Plan Administrator and contain the following information: Page 1 of 2 2 187 a. A description of the proposed amendment and a statement that the actuary was provided the information necessary to evaluate the proposed amendment; b. An estimate ofthe cost of implementing the amendment, signed and dated by an enrolled actuary, which discloses, at a minimum, sufficient information on both the before and after amendment basis, so that another actuary, unfamiliar with the situation, would be able to appraise the estimate. If any actuarial assumptions, techniques or methods are also changed, additional information disclosing the effect of such actuarial changes must be provided; c. A statement indicating whether the proposed change is in compliance with Part VII, Chapter 112, F.S. and Section 14, Article X of the State Constitution. No unit of local government shall agree to a proposed change in the retirement benefits or liabilities of a local system, unless the administrator of the system, prior to adoption of the change by the governing body, has issued a statement of actuarial impact of the proposed change upon the local retirement system prior to the last public hearing. Based on the projection study provided by the City's Pension Plan Actuary, (GRS), the estimated cost in adopting the Ordinance amending the City's Pension Plan is; an estimated average amount of $20,000 annually over a 30-year period, with the City actually beginning to save money after year 24. ATTACHMENTS -Proposed Ordinance -GRS Projection Study -Res. No 146-01-11294 -GRS Summary of Retirement Plan Costs as of October 1, 2020 -GRS Actuarial Impact Statement Page 2 of 2 3 a. A description of the proposed amendment and a statement that the actuary was provided the information necessary to evaluate the proposed amendment; b. An estimate ofthe cost of implementing the amendment, signed and dated by an enrolled actuary, which discloses, at a minimum, sufficient information on both the before and after amendment basis, so that another actuary, unfamiliar with the situation, would be able to appraise the estimate. If any actuarial assumptions, techniques or methods are also changed, additional information disclosing the effect of such actuarial changes must be provided; c. A statement indicating whether the proposed change is in compliance with Part VII, Chapter 112, F.S. and Section 14, Article X of the State Constitution . No unit of local government shall agree to a proposed change in the retirement benefits or liabilities of a local system, unless the administrator of the system, prior to adoption of the change by the governing body, has issued a statement of actuarial impact of the proposed change upon the local retirement system prior to the last public hearing. Based on the projection study provided by the City'S Pension Plan Actuary, (GRS), the estimated cost in adopting the Ordinance amending the City's Pension Plan is; an estimated average amount of $20,000 annually over a 30-year period, with the City actually beginning to save money after year 24. ATTACHMENTS -Proposed Ordinance -GRS Projection Study -Res. No 146-01-11294 -GRS Summary of Retirement Plan Costs as of October 1, 2020 -GRS Actuarial Impact Statement Page 2 of 2 3 188 August 12, 2021 Mr. Alfredo Riverol Finance Director City Hall, 1st Floor 6130 Sunset Drive South Miami, Florida 33143 Re: Actuarial Projection Study South Miami Pension Plan-AMSC Members Dear Alfredo: P: 954.527.1616 j F: 954.525.0083 I www.grsconsulting.com As requested, we are pleased to enclose our Updated Actuarial Projection Study including thirty (30) year projections beginning October 1, 2020 for AMSC members of the South Miami Pension Plan illustrating the financial impact of the current and proposed provisions. The update reflects the change of Normal Retirement eligibility from attainment of age 60 and completion of ,2 years of credited service to attainment of age 60 and completion of 10 years of credited service for all future AMSC members. Census data and financial information is reported as of October 1, 2020 . If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Jennifer M. Borregard, E.A., M.A.A.A., F.C.A . Consultant and Actuary Enclosure Shelly L. Jones, A.S.A, E.A., M.A.A.A., F.C.A. Consultant and Actuary One East Broward Boulevard s"'" 505 I Ft. Loodecdale, Flocida 33301-180"1. August 12, 2021 Mr. Alfredo Riverol Finance Director City Hall, 1st Floor 6130 Sunset Drive South Miami, Florida 33143 Re: Actuarial Projection Study South Miami Pension Plan -AMSC Members Dear Alfredo: P: 954.527.1616 I F; 954.525.0083 I www.grsconsulting.c:om As requested, we are pleased to enclose our Updated Actuarial Projection Study including thirty (30) year projections beginning October 1, 2020 for AMSC members of the South Miami Pension Plan illustrating the financial impact of the current and proposed provisions . The update reflects the change of Normal Retirement eligibility from attainment of age 60 and completion of.2 years of credited service to attainment of age 60 and completion of 10 years of credited service for all future AMSC members. Census data and financial information is reported as of October 1, 2020 . If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Jennifer M. Borregard, E.A., M.A.A.A., F.C.A. Consultant and Actuary Enclosure Shelly L. Jones, A.S.A, E.A., M.A.A.A., F.C.A. Consultant and Actuary 189 South Miami Pension Plan Updated Actuarial Projection Study For Administration Management Service Class (AMSC) Employees as of October 1, 2020 Prepared: August 12, 2021 GRS South Miami Pension Plan Updated Actuarial Projection Study For Administration Management Service Class (AMSC) Employees as of October 1, 2020 Prepared: August 12, 2021 GRS 190 12 12 191 TABLE OF CONTENTS I I. Executive Summary .......................................................................................................... 1 II. Projection Results ............................................................................................................ 5 Ill. Outline of Principal Provisions of the Retirement Plan ................................................... 7 IV. Actuarial Assumptions and Cost Methods ..................................................................... 13 V. Glossary .......................................................................................................................... 17 13 TABLE OF CONTENTS I I. Executive Summary .......................................................................................................... 1 II. Projection Results ............................................................................................................ 5 III. Outline of Principal Provisions ofthe Retirement Plan ................................................... 7 IV. Actuarial Assumptions and Cost Methods ..................................................................... 13 V. Glossary .......................................................................................................................... 17 13 192 EXECUTIVE SUMMARY I As requested, we have completed updated thirty (30) year projections illustrating the financial impact of proposed changes to the benefit provisions of the South Miami Pension Plan (Plan) for Administration Management Service Class (AMSC) Employees. The update reflects the change of normal retirement eligibility from attainment of age 60 and completion of~ years of credited service to attainment of age 60 and completion of 10 years of credited service for future AMSC members hired after adoption of the ordinance. Background Currently, the Plan provides the following for AMSC members: ► Normal retirement eligibility is (a) attainment of age 60 and completion of 5 years of credited service or (b) completion of 33 years of credited service ► Early (reduced) retirement eligibility is attainment of age 55 and completion of 10 years of credited service ► Final Average Compensation is the average of the highest 8 years of credited service ► 100% vesting upon completion of 5 years of credited service Proposed Changes We understand the City is interested in an analysis of providing the following for AMSC members: ► Normal retirement eligibility is (a) attainment of age 60 and completion of 10 years of credited service (for current AMSC members, attainment of age 60 and completion of 5 years of credited service), (b) attainment of age 55 and completion of 20 years of credited service or (c) completion of 33 years of credited service ► Eliminate early (reduced) retirement eligibility ► Final Average Compensation is the average of the highest 5 years of credited service ► 100% vesting upon completion of 10 years of credited service for new members; all current AMSC members will become 100% vested upon adoption of the ordinance. Results The following table shows the current City cost over the next five (5), ten (10) and thirty (30) years for the baseline (current plan) and for the proposed benefit changes described above both as a dollar amount and as a percentage of projected covered payroll, respectively. South Miami Pension Plan 1 14 EXECUTIVE SUMMARY I As requested, we have completed updated thirty (30) year projections illustrating the financial impact of proposed changes to the benefit provisions of the South Miami Pension Plan (Plan) for Administration Management Service Class (AMSC) Employees. The update reflects the change of normal retirement eligibility from attainment of age 60 and completion of 2 years of credited service to attainment of age 60 and completion of 10 years of credited service for future AMSC members hired after adoption of the ordinance. Background Currently, the Plan provides the following for AMSC members : ~ Normal retirement eligibility is (a) attainment of age 60 and completion of 5 years of credited service or (b) completion of 33 years of credited service ~ Early (reduced) retirement eligibility is attainment of age 55 and completion of 10 years of credited service ~ Final Average Compensation is the average of the highest 8 years of credited service ~ 100% vesting upon completion of 5 years of credited service Proposed Changes We understand the City is interested in an analysis of providing the following for AMSC members: ~ Normal retirement eligibility is (a) attainment of age 60 and completion of 10 years of credited service (for current AMSC members, attainment of age 60 and completion of 5 years of credited service), (b) attainment of age 55 and completion of 20 years of credited service or (c) completion of 33 years of credited service ~ Eliminate early (reduced) retirement eligibility ~ Final Average Compensation is the average ofthe highest 5 years of credited service ~ 100% vesting upon completion of 10 years of credited service for new members; all current AMSC members will become 100% vested upon adoption of the ordinance. Results The following table shows the current City cost over the next five (5), ten (10) and thirty (30) years for the baseline (current plan) and for the proposed benefit changes described above both as a dollar amount and as a percentage of projected covered payroll, respectively. South Miami Pension Plan 1 14 193 Ii Summary of Costs for Alll(SC Ef1l-ploy-ees ($\~00051 ,_ furrent Plan Proposed Ch_ang,es· Amount Amount Increase/ (li>ecrease) Next Year -Projected Payroll $1 ,251 $1,251 $0 -City Cost$ $202 $235 $34 -City Cost% 16.1% 18.8% 2.7% Next 5 Years -Projected Payroll $7,091 $7,091 $0 -City Cost$ $1,209 $1,344 $135 -City Cost% 17.0% 18.9% 1.9% Next 10 Years -Projected Payroll $15,716 $16,089 $372 -City Cost$ $2,853 $3,104 $251 -City Cost % 18 .2% 19.3% 1.1% Next 30 Years -Projected Payroll $61,663 $68,295 $6,632 -City Cost$ $12,307 $12,939 $631 -City Cost% 20.0% 18.9% -1 .0% The increase in the present value of benefits based on the proposed Plan provision changes is $385,594 as of October 1, 2020. The amount accumulated with interest would be $411,593 if paid in September 2021. Actuarial Assumptions and Methods, Plan Provisions, Financial Doto and Member Census Doto Actuarial assumptions and methods, financial data and member census data employed for purposes of our Actuarial Projection Study are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2020 Actuarial Valuation with the following exception: AMSC -Normal and Early R~iremenf Rates Age Current Proposed Change Less than 33 years of service 55 -59 10% 25% 60 -61 25% 25% 62 -64 35% 35% 65 -66 35% 35% 67 & above 100% 100% With 33 or more years of service Under62 25% 25% 62 -66 35% 35% 67 100% 100% The Plan provisions employed for purposes of our Actuarial Projection Study are the same Plan provisions utilized in the October 1, 2020 Actuarial Valuation with the exception of the proposed changes described above. South Miami Pension Plan 2 15 Summary of Co sts for AMSC E",ploy'ee5 ($~,000s) Cu rrent Plan Proposed Chang,es" Amount Amount I ncr ease / (0ecrease) Next Year -Projected Payroll $1,251 $1,251 $0 -City Cost $ $202 $235 $34 -City Cost % 16.1% 18.8% 2.7% Next 5 Years -Projected Payroll $7,091 $7,091 $0 -City Cost $ $1,209 $1,344 $135 -City Cost % 17 .0% 18.9% 1.9% Next 10 Years -Projected Payroll $15,716 $16,089 $372 -City Cost $ $2,853 $3,104 $251 -City Cost % 18.2% 19.3% 1.1% Next 30 Years -Projected Payroll $61,663 $68,295 $6,632 -City Cost $ $12,307 $12,939 $631 -City Cost % 20.0% 18.9% -1.0% The increase in the present value of benefits based on the proposed Plan provision changes is $385,594 as of October 1, 2020. The amount accumulated with interest would be $411,593 if paid in September 2021. Actuarial Assumptions and Methods, Plan Provisions, Financial Data and Member Census Data Actuarial assumptions and methods, financial data and member census data employed for purposes of our Actuarial Projection Study are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2020 Actuarial Valuation with the following exception: AMs e -Norm al and Early Retirement Rates Age Current Propesed Change Less than 33 years of service 55 -59 10% 25% 60 -61 25% 25% 62 -64 35% 35% 65 -66 35% 35% 67 & above 100% 100% With 33 or more years of service Under62 25% 25% 62 -66 35% 35% 67 100% 100% The Plan provisions employed for purposes of our Actuarial Projection Study are the same Plan provisions utilized in the October 1, 2020 Actuarial Valuation with the exception of the proposed changes described above . South Miami Pension Plan 2 15 194 The following projection assumptions have been included: • AMSC employees are assumed to be hired each year at a rate sufficient to maintain a constant active headcount -stationary population. New AMSC employees are assumed to have the same average demographic characteristics (age, gender, salary -adjusted each year for inflation) as those employees hired for AMSC employees over the past five years, respectively. • Expenses paid by the City are assumed to be 0.3% of the projected market value of assets during the projection period. • Projections are deterministic-throughout the projection period experience is expected to match the assumptions -including a 7.375% annual market value investment return for fiscal year ended September 30, 2021 and thereafter. This Actuarial Projection Study only reflects experience through October 1, 2020. It does not reflect the recent and still developing impact of COVID-19, which may significantly impact the demographic and economic experience seen in future actuarial valuations. Risk Assessment Risk assessment may include scenario tests, sensitivity, or stress tests, stochastic modeling, and a comparison of the present value of benefits at low-risk discount rates. We are prepared to perform such assessment to aid in the decision-making process. Please refer to the October 1, 2020 Actuarial Valuation Report dated March 16, 2021 for additional discussion regarding the risks associated with measuring the liability and the minimum funding payment. Other Considerations Under Governmental Accounting Standards Board (GASB) Statement Number 68, we understand the cost of benefit changes must be recognized immediately in pension expense (accounting not funding). Therefore, pension expense is expected to increase the first year and then is expected to return to lower levels in fiscal years following initial recognition of the benefit change. This Actuarial Projection Study is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the change nor in opposition to the change. These calculations are based upon assumptions regarding future events. However, the Plan's long term costs will be determined by actual future events, which may differ materially from the assumptions made. If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described or referenced, important Plan provisions relevant to this Actuarial Projection Study are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Projection Study. If you have reason to believe that the information provided in this Actuarial Projection Study is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. If all actuarial assumptions are met and if all future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, future contributions are expected to remain relatively stable as a percent South Miami Pension Plan 3 16 The following projection assumptions have been included: • AMSC employees are assumed to be hired each year at a rate sufficient to maintain a constant active headcount -stationary population. New AMSC employees are assumed to have the same average demographic characteristics (age, gender, salary -adjusted each year for inflation) as those employees hired for AMSC employees over the past five years, respectively. • Expenses paid by the City are assumed to be 0.3% of the projected market value of assets during the projection period. • Projections are deterministic -throughout the projection period experience is expected to match the assumptions -including a 7.375% annual market value investment return for fiscal year ended September 30, 2021 and thereafter. This Actuarial Projection Study only reflects experience through October 1, 2020. It does not reflect the recent and still developing impact of COVID-19, which may significantly impact the demographic and economic experience seen in future actuarial valuations. Risk Assessment Risk assessment may include scenario tests, sensitivity, or stress tests, stochastic modeling, and a comparison of the present value of benefits at low-risk discount rates. We are prepared to perform such assessment to aid in the decision-making process. Please refer to the October 1, 2020 Actuarial Valuation Report dated March 16, 2021 for additional discussion regarding the risks associated with measuring the liability and the minimum funding payment. Other Considerations Under Governmental Accounting Standards Board (GASB) Statement Number 68, we understand the cost of benefit changes must be recognized immediately in pension expense (accounting not funding). Therefore, pension expense is expected to increase the first year and then is expected to return to lower levels in fiscal years following initial recognition of the benefit change. This Actuarial Projection Study is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the change nor in opposition to the change. These calculations are based upon assumptions regarding future events. However, the Plan's long term costs will be determined by actual future events, which may differ materially from the assumptions made. If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described or referenced, important Plan provisions relevant to this Actuarial Projection Study are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Projection Study. If you have reason to believe that the information provided in this Actuarial Projection Study is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. If all actuarial assumptions are met and if all future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, future contributions are expected to remain relatively stable as a percent South Miami Pension Plan 3 16 195 of payroll and the funded status is expected to improve. Plan minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act with normal cost determined as a level percent of covered payroll and a level percent amortization payment using an initial amortization period of 25 years. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the Plan's funded status); and changes in Plan provisions or applicable law. Due to the limited scope of the actuary's assignment, the actuary did not perform an analysis of the potential range of such future measurements. This report should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This report was prepared using ProVal's valuation model, a software product of Winklevoss Technologies. We are relying on the Pro Val model. We performed tests of the Pro Val model with this assignment and made a reasonable attempt to understand the developer's intended purpose of, general operation of, major sensitivities and dependencies within, and key strengths and limitations of the ProVal model. In our professional judgment, the ProVal valuation model has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our ~nowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. The signing actuaries are independent of the Plan sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Jennifer M. Borregard, E.A., M.A.A.A., F.C.A. Consultant and Actuary Shelly L. Jones, A.S.A., E.A., M.A.A.A., F.C.A. Consultant and Actuary South Miami Pension Plan 4 17 of payroll and the funded status is expected to improve. Plan minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act with normal cost determined as a level percent of covered payroll and a level percent amortization payment using an initial amortization period of 25 years. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the Plan's funded status); and changes in Plan provisions or applicable law. Due to the limited scope of the actuary's assignment, the actuary did not perform an analysis of the potential range of such future measurements. This report should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results . This report was prepared using ProVal's valuation model, a software product of Winklevoss Technologies. We are relying on the ProVal model. We performed tests of the ProVal model with this assignment and made a reasonable attempt to understand the developer's intended purpose of, general operation of, major sensitivities and dependencies within, and key strengths and limitations of the ProVal model. In our professional judgment, the ProVal valuation model has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses . This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our ~nowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. The signing actuaries are independent of the Plan sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Jennifer M. Borregard, EA, M.A.A.A., F.C.A. Consultant and Actuary Shelly L. Jones, A.S.A., EA, M.A.A.A., F.C.A . Consultant and Actuary South Miami Pension Plan 4 17 196 PROJECTION RESULTS I The Plan adds normal retirement eligibility of age 55 and completion of 20 years, amends normal retirement eligibility of age 60 and completion of 5 years to age 60 and completion of 10 years for new hires, eliminates reduced early retirement eligibility of age 55 and completion of 10 years, amends Final Average Compensation to 5 years and provides 10 year vesting schedule for new hires for AMSC Employees . The change applies to all current and future active members. The following Table shows projected covered payroll, comparison of projected City cost and Unfunded Actuarial Accrued Liabilities (UAAL) under the baseline forecast versus the Study-($1,000s). Current Plan Fiscal Projected Projected Year Annual Net City Cost Amount % of Pay End 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 5 Year Total 10Year Total 30Year Total 1,251 1,338 1,407 1,505 1,590 1,685 1,680 1,714 1,747 1,798 1,836 1,854 1,888 1,927 1,985 2,013 2,065 2,106 2,147 2,212 2,294 2,355 2,405 2,466 2,560 2,605 2,678 2,760 2,855 2,936 202 222 241 262 282 298 314 330 344 359 372 386 399 415 432 446 462 476 490 507 506 523 422 488 495 505 516 526 539 549 16.1% 16.6% 17.2% 17.4% 17.7% 17.7% 18.7% 19.2% 19.7% 20.0% 20.3% 20.8% 21.1% 21.5% 21.8% 22.2% 22.4% 22.6% 22.8% 22.9% 22.1% 22.2% 17.6% 19.8% 19.3% 19.4% 19.3% 19.0% 18.9% 18 .7% 7,091 1,209 17.0% 15,716 2,853 18.2% 61,663 12,307 20.0% UAAL 1,108 1,159 1,226 1,263 1,301 1,343 1,382 1,418 1,451 1,479 1,503 1,519 1,529 1,531 1,523 1,508 1,483 1,451 1,409 1,356 1,295 1,243 1,181 1,214 1,195 1,184 1,168 1,152 1,138 1,122 Projected Annual Payroll 1,251 1,338 1,407 1,505 1,590 1,685 1,704 1,777 1,858 1,973 2,056 2,064 2,087 2,136 2,216 2,271 2,344 2,408 2,445 2,512 2,598 2,670 2,734 2,827 2,934 2,988 3,079 3,171 3,280 3,384 7,091 16,089 68,295 Proposed Changes Projected Net City Cost Amount 235 252 268 286 302 316 333 351 369 392 401 414 427 442 460 474 491 506 520 535 533 549 449 516 494 505 514 523 536 546 1,344 3,104 12,939 UAAL 18.8% 1,409 18.8% 1,458 19.1% 1,522 19.0% 1,553 19.0% 1,584 18.8% 1,616 19.5% 1,644 19.7% 1,669 19.9% 1,694 19.9% 1,717 19.5% 1,740 20.1% 1,750 20.5% 1,751 20.7% 1,743 20.8% 1,724 20.8% 1,699 20.9% 1,665 21.0% 1,624 21.3% 1,567 21.3% 1,497 20.5% 1,415 20.6% 1,340 16.4% 1,253 18.2% 1,264 16.8% 1,219 16.9% 1,205 16.7% 1,186 16.5% 1,167 16.3% 1,150 16.1% 1,132 18.9% 19 .3% 18.9% Increase/ Cumulative Increase/ (Decrease) Inc./ (Dec.) (Decrease) in Net City Cost 34 30 27 24 21 19 19 21 25 33 29 28 29 27 28 28 29 30 30 28 27 27 27 27 -1 0 -2 -3 -3 -3 135 251 631 in Net City cost 34 63 90 114 135 154 173 194 219 251 280 308 337 364 392 419 448 478 507 535 562 589 616 643 643 642 640 638 635 631 in UAAL 301 299 296 291 283 273 262 251 243 238 236 231 222 212 201 191 182 173 158 141 120 97 72 50 24 21 18 15 12 10 South Miami Pension Plan 5 18 PROJECTION RESULTS I The Plan adds normal retirement eligibility of age 55 and completion of 20 years, amends normal retirement eligibility of age 60 and completion of 5 years to age 60 and completion of 10 years for new hires, eliminates reduced early retirement eligibility of age 55 and completion of 10 years, amends Final Average Compensation to 5 years and provides 10 year vesting schedule for new hires for AMSC Employees . The change applies to all current and future active members. The following Table shows projected covered payroll, comparison of projected City cost and Unfunded Actuarial Accrued Liabilities (UAAL) under the baseline forecast versus the Study -($l,OOOs). Current pl an Fiscal Projected Projected Net City Cost Year Annual End 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 5 Year Total 10 Year Total 30Year Total Payroll Amount % of Pay UAAL 1,251 1,338 1,407 1,505 1,590 1,685 1,680 1,714 1,747 1,798 1,836 1,854 1,888 1,927 1,985 2,013 2,065 2,105 2,147 2,212 2,294 2,355 2,405 2,455 2,550 2,505 2,578 2,760 2,855 2,936 202 222 241 262 282 298 314 330 344 359 372 386 399 415 432 446 462 475 490 507 506 523 422 488 495 505 516 526 539 549 15.1% 1,108 16.5% 1,159 17.2% 1,226 17.4% 1,263 17.7% 1,301 17.7% 1,343 18.7% 1,382 19.2% 1,418 19.7% 1,451 20.0% 1,479 20.3% 1,503 20.8% 1,519 21.1% 1,529 21.5% 1,531 21.8% 1,523 22.2% 1,508 22.4% 1,483 22.5% 1,451 22.8% 1,409 22.9% 1,356 22.1% 1,295 22.2% 1,243 17 .5% 1,181 19.8% 1,214 19.3% 1,195 19.4% 1,184 19.3% 1,168 19.0% 1,152 18.9% 1,138 18.7% 1,122 7,091 1,209 17.0",A; 15,716 2,853 18.2% 61,663 12,307 20 .0",A; Projected Annual Proposed Changes Projected Net City Cost Increase / Cumulative Increase / (Decrease) Inc./ (Dec.) (Decrease) in Net i n Net in Payroll Amount % of Pay UAAL City Cost City Co st UAAL 1,251 1,338 1,407 1,505 1,590 1,685 1,704 1,777 1,858 1,973 2,056 2,064 2,087 2,136 2,216 2,271 2,344 2,408 2,445 2,512 2,598 2,670 2,734 2,827 2,934 2,988 3,079 3,171 3,280 3,384 7,091 16,089 68,295 235 252 268 286 302 316 333 351 369 392 401 414 427 442 460 474 491 505 520 535 533 549 449 516 494 505 514 523 536 546 1,344 3,104 12,939 18.8% 1,409 18.8% 1,458 19.1% 1,522 19.0% 1,553 19.0% 1,584 18.8% 1,616 19.5% 1,544 19.7% 1,669 19.9% 1,694 19.9% 1,717 19.5% 1,740 20 .1% 1,750 20.5% 1,751 20.7% 1,743 20.8% 1,724 20.8% 1,699 20.9% 1,665 21.0% 1,624 21.3% 1,567 21.3% 1,497 20.5% 1,415 20.6% 1,340 16.4% 1,253 18.2% 1,264 16.8% 1,219 16.9% 1,205 16.7% 1,186 16.5% 1,167 16.3% 1,150 16.1% 1,132 18.9% 19.3% 18.9% 34 30 27 24 21 19 19 21 25 33 29 28 29 27 28 28 29 30 30 28 27 27 27 27 -1 o -2 -3 -3 -3 135 251 631 34 63 90 114 135 154 173 194 219 251 280 308 337 364 392 419 448 478 507 535 562 589 616 643 643 642 640 638 635 631 301 299 296 291 283 273 262 251 243 238 236 231 222 212 201 191 182 173 158 141 120 97 72 50 24 21 18 15 12 10 South Miami Pension Plan 5 18 197..Jo. <D 600 500 400 300 200 100 0 Projected City Contribution Amount and As Percentage of Payroll AMSC Employees ~ :» I>< h <o :\ fb PJ s:i ~ '.\-'.'> I>< b <o C\ ~ i?J .(\ ~ '.\-'.'> ·"' b <o C\ ~ i?J s:i ~ (:)1, (:)1, (:)'V (:)1, (:)'V (:)1, ()'\I Cl'); ci"l ci"> ci"> ci"> ci"> (:),,, ci"l ci"> (:)'>j (:)'? Clo<' C)I>< ()I>< cit>< (:)o< C)ti-C)t,l C)I>< d:il C)f:$. C)(.J C)~ 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, -Current Plan City Cost$ Proposed Changes City Cost$ -· -Current Plan City Cost% -Proposed Changes City Cost% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% South Miami Pension Plan 6 600 500 400 300 200 100 o -..".., ;..... ;-Projected City Contribution Amount and As Percentage of Payroll AMSC Employees ~~J liLl -::::-]I J I r: I-I'-.,'" ~ .>-." ~ -----Ill-Je--l-f-:'-f-f--~~ J.-c-;-:-J r J --rtJ i----'-!-:.-I-'-;-:-,'-r--,-r-;---:-.-'--~~ '-'--I--r i-I--'---t-'-I-;-r--f--;-,--,'-,-,-r-;--:-.-.-t-o-l-'-i-.~ ',-:-,.--,.... 1"-:-'--;-l-I-'-f0-e--f-i-I-:-;-i:--L ....... '---'-'-i-i----"---J j Ii n I !... i -~ I [. ~ -f'. ~l t.i -Current Pia n City Cost $ Proposed Changes City Cost $ -. -Current Plan City Cost % -Proposed Changes City Cost % 25.0% 20.0% 15.0% 10.0% 5,0% 0.0% South Miami Pension Plan 6 198 OUTLINE OF PRINCIPAL PROVISIONS OF THE PLAN PRIOR TO ANY PROPOSED CHANGES INCLUDED IN THIS STUDY A. Effective Date: October 1, 1965. Most recently amended by Ordinance 38-19-2351 adopted December 3, 2019. B. Eligibility Requirements: 1. General Employees Tier 1: Regular full-time employee hired before October 1, 2011 is eligible to enter the Plan following the completion of six months of Credited Service and attainment of age 20. Tier 2: Regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety {90) days from September 20, 2016 is eligible to enter the Plan as a Tier 2 employee as of October 1, 2016. Regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. Any regular full-time employee who previously entered into the Defined Contribution (DC) Plan may opt-out of the DC Plan and elect to join the Plan as a Tier 2 member or as their respective classification at the time they elect to join the Plan during an annual open enrollment period. 2. Police Officers Regularfull-time Police Officer is eligible to enter the Plan as of date of employment. 3. Administration Management Service Class (AMSC) Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: City Manager City Attorney City Clerk Assistant/ Deputy City Manager Chief Administrative Officer (currently Finance Office Man, Chief Procurement Officer (currently Purchasing Manager) Parks and Recreation Director Assistant Director of Parks and Recreation Finance Director/ Chief Financial Officer Community Redevelopment Agency Director Chief of Police Personnel Manager Planning and Zoning Director Building Director Director of Public Works Project Manager Special Assistant to the Manager Superintendent of Maintenance South Miami Pension Plan 7 20 OUTLINE OF PRINCIPAL PROVISIONS OF THE PLAN PRIOR TO ANY PROPOSED CHANGES INCLUDED IN THIS STUDY A. Effective Date: October 1,1965. Most recently amended by Ordinance 38-19-2351 adopted December 3,2019. B. Eligibility Requirements : 1. Gene ra l Employees Tier 1: Regular full-time employee hired before October 1, 2011 is eligible to enter the Plan following the completion of six months of Credited Service and attainment of age 20. Tier2: Regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join orfails to make any election within ninety (90) days from September 20,2016 is eligible to enter the Plan as a Tier 2 employee as of October 1,2016. Regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire . Any regular full-time employee who previously entered into the Defined Contribution (DC) Plan may opt-out of the DC Plan and elect to join the Plan as a Tier 2 member or as their respective classification at the time they elect to join the Plan during an annual open enrollment period. 2. Police Offi cers Regularfull-time Police Officer is eligible to enterthe Plan as of date of employment. 3. Admini strati o n M an age m ent Serv i ce Cl ass (AMSq Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: City Manager City Attorney City Clerk Assistant / Deputy City Manager Chief Administrative Officer (currently Finance Office Man, Chief Procurement Officer (currently Purchasing Manager) Parks and Recreation Di recto r Assistant Director of Parks and Recreation Finance Director / Chief Financial Officer Community Redevelopment Agency Director Chief of Police Personnel Manager Planning and Zoning Director Project Manager Building Director Special Assistant to the Manager Director of Public Works Superintendent of Maintenance South M iami Pension Plan 7 20 199 C. Credited Service : 1. Genera l Emp loyees and AMS C Continuous employment. Credited service shall exclude continuous employment prior to Plan participation as follows : (1) If employed pr ior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20 . Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of date of Plan entry election date or date of hire. 2. Police Officers Continuous employment. For Police Officers who did not participate when first eligible for the Plan, Credited Service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, Credited Service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, Credited Service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. D. Fi nal Monthly Co mpensat i on (FMC): Final Average Compensation is 1/36th of the final 36 consecutive months of compensation. For Police Officers, not less than 1/5th of the highest five (5) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, Final Average Compensation for General Employees is 1/60th of the final 60 consecutive months of basic compensation , provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. South Miami Pension Plan 8 21 C. Credited Service: 1. Ge ne ra l Employees and A MSC Continuous employment. Credited service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of date of Plan entry election date or date of hire . 2. Police Officers Continuous employment. For Police Officers who did not participate when first eligible for the Plan, Credited Service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, Credited Service shall exclude the first two years of continuous employment and any additional year of continuous employment priorto attainment of age 25. (2) If employed on or after October 1, 1973, Credited Service shall exclude the first six (6) months of continuous employment and continuous employment priorto age 20. D. Final Month l y Compensation (FMC): Final Average Compensation is 1/36th of the final 36 consecutive months of compensation. For Police Officers, not less than 1/5th of the highest five (5) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salaries , excluding bonuses, vacation , sick leave and other additional compensation . Effective October 1, 2011, Final Average Compensation for General Employees is 1/6Oth of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30,2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1,2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided i t is not less than the Final Average Compensation as of September 30, 2011 based on the definition above . Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. South Miami Pens ion Plan 8 21 200 D. Final Monthly Compensation (FMC) (cont'd): Effective October 1, 2016, Final Average Compensation for members covered under the Miami-Dade County Police Benevolent Association Upper-Collective Bargainning Union (Lieutenants & Captains) collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2016 based on the definition above . Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay , bonuses and any other forms of additional compensation earned outside of base wages . Final Average Compenation for Tier 2 General Employees and AMSC shall be the average of the highest eight (8) years of credit service. E. Normal Retirement: 1. Eli gi b il i ty: a. Genera l Em pl oye es: Attainment of age 55 and completion of ten (10) years of Credited Service for benefits accrued as of September 30, 2011. b . Police Officers : c. AMSC: 2. Benefit: Attainment of age 60 and completion of ten (10) years of Credited Service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. Attainment of age 65 and completion of ten (10) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age for Tier 2 General Employees. Attainment of age 55 and completion of ten (10) years of Credited Service or completion of twenty-five (25) years of Credited Service regardless of age. Attainment of age 60 and completion of five (5) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age . The monthly Plan benefit is the product of: a. FMC , b . Credited Service during the appropriate period and c. The appropriate benefit percentage The appropriate benefit percenta.ges are: a. General Employees For Credited Service Through September 30, 1999 October 1, 1999through September 30, 2011 October 1, 2011 and thereafter Percentage 2.50% 2.75% 2.25 % South Miami Pension Plan 9 22 D. Final Monthly Compensation (FMC) (cont'd): Effective October 1, 2016, Final Average Compensation for members covered under the Miami-Dade County Police Benevolent Association Upper-Collective Bargainning Union (Lieutenants & Captains) collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2016 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any otherforms of additional compensation earned outside of base wages. Final Average Compenation for Tier 2 General Employees and AMSC shall be the average of the highest eight (8) years of credit service. E. Normal Retirement: 1. Eligibility: a. General Employe es : Attainment of age 55 and completion of ten (1O) years of Credited Service for benefits accrued as of September 30, 2011. b. Police Officers : 2. Benefit: Attainment of age 60 and completion of ten (10) years of Credited Service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. Attainment of age 65 and completion of ten (10) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age forTier 2 General Employees. Attainment of age 55 and completion of ten (1O) years of Credited Service or completion of twenty-five (25) years of Credited Service regardless of age . Attainment of age 60 and completion of five (5) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age. The monthly Plan benefit is the product of: a. FMC, b. Credited Service during the appropriate period and c. The appropriate benefit percentage The appropriate benefit percentaOges are: a. General Employees For Credited Service Through September 3D, 1999 October 1, 1999 through September 30,2011 October 1,2011 and thereafter Percentage 2.50% 2.75% 2.25% South Miami Pension Plan 9 22 201 E. No rm al Reti r emen t (cont 'd): 2. Benefit: b. Police Officers c. General Employees (Tier 2) d. AMSC F. Supplemen ta l Benefit : For Credited Service Through September 30, 1995 October 1, 1995 through September 30, 1996 October 1, 1996 through September 30, 1997 October 1, 1997 through September 30, 2001 October 1, 2001 through September 30, 2002 October 1, 2002 through September 30, 2003 October 1, 2003 and thereafter For Credited Service October 1, 2016 and thereafter For Credited Service October 1, 2016 and thereafter Percentage 2.00% 2.25% 2.50% 2.75% 2.80% 2.90% 3.00% Percentage 1.60% Percentage 3.000/o A cost-of-living supplemental benefit based upon the consumer price index is provided upon retirement. The annual increase is limited to 3%. No cost-of-living supplemental benefit is provided for Tier 2 General Employees and AMSC members who retired or entered the DROP prior to October 1, 2019. No cost-of-living supplemental benefit is provided on the portion of the benefit accrued after September 30, 2011 for Tier 1 General Employees who retired or entered the DROP prior to October 1, 2019. G. Ear ly Retirement: 1. Eli gibility: a. Police Officers : b. AMSC: 2. Benefit: a. Police Officers : Attainment of age 50 and completion of 10years of Credited Service . Attainment of age 55 and completion of 10years of Credited Service . Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 3% for each year that the benefit commencement date precedes Normal Retirement. South Miami Pension Plan 10 23 E. Normal Retirement (cont 'd): 2. Benefit: b. Police Officers c. General Employees (Tier 2) d. AMSC F. Supplemental Benefit: For Credited Service Through September 30,1995 October I, 1995 through September 3D, 1996 October 1,1996 through September 3D, 1997 October 1,1997 through September 30,2001 October 1,2001 through September 30,2002 October 1,2002 through September 30,2003 October 1,2003 and thereafter For Credited Service October 1,2016 and thereafter For Credited Service October 1,2016 and thereafter Percentage 2.00% 2.25% 2.50% 2.75% 2.80% 2.90% 3.00% Percentage 1.60% Percentage 3.00% A cost-of-living supplemental benefit based upon the consumer price index is provided upon retirement. The annual increase is limited to 3%. No cost-of-living supplemental benefit is provided for Tier 2 General Employees and AMSC members who retired or entered the DROP prior to October I, 2019. No cost-of-living supplemental benefit is provided on the portion of the benefit accrued after September 30, 2011 for Tier 1 General Employees who retired or entered the DROP prior to October I, 2019. G. Early Retirement: 1. Eligibility: a. Police Officers : b. AMSC: 2. Benefit: a. Police Officers : Attainment of age 50 and completion of 10 years of Credited Service . Attainment of age 55 and completion of lOyears of Credited Service . Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 3% for each year that the benefit commencement date precedes Normal Retirement. South Miami Pension Plan 10 23 202 G. Earl y Retire m en t (co nt'd ): 2. Benefit: b. AMSC: Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 1/15 for each of the first five years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. H. Del aye d Reti reme nt: 1. Elig i bi lity : Retirement subsequent to Normal Retirement Date . 2. Be n efit: Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date. I. Di sa b i l ity Reti r em e nt: 1. Eligi b i li t y : Totally and permanently disabled for a six month period while actively employed . 2. Be n efit: Accrued benefit based upon FMC and Credited Service as of date of disability, actuarially reduced as for Early Retirement for early commencement. J. Pre -Retirement Death Benefit: The beneficiary shall receive the member's accumulated Employee Contributions . K. Ben efit Upo n Te r m i n ation of Se rv i ce: 1. Benefit payable at Normal Retirement equal to the greater of: a. Accrued benefit based upon FMC and Credited Service as of date of termination times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated Member Contributions with interest to Normal Retirement Date. No supplemental benefit shall be payable to vested terminees. 2. Vesting Schedule: All employees except AMSC: Ye·ars of Credited Service Les§ t h an 10 10 or more y ears Vesting Percent~ge_ 09/4 lOOo/4 South Miami Pension Plan 11 24 G. Early Ret ire ment {cont'dl: 2. Benefit: b. AMSC: Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 1/15 for each of the first five years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. H. Delayed Retirement: 1. Eligibility: Retirement subsequent to Normal Retirement Date . 2. Benefit: Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date. I. Disability Retirement: 1. Eligibility: Totally and permanently disabled for a six month period while actively employed. 2. Benefit: Accrued benefit based upon FMC and Credited Service as of date of disability, actuarially reduced as for Early Retirement for early commencement. J. Pre-Retirement Death Benefit: The beneficiary shall receive the member's accumulated Employee Contributions. K. Benefit Upon Termination o f Service : 1. Benefit payable at Normal Retirement equal to the greater of: a. Accrued benefit based upon FMC and Credited Service as of date oftermination times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated Member Contributions with interest to Normal Retirement Date. No supplemental benefit shall be payable to vested terminees. 2. Vesting Schedule: All employees except AMSC: Ye'ars of Credited S~rvic~ Les.s than 10 10 er m0re years Vesting- Per(lent~ge., South Miami Pension Plan 11 24 203 K. Benefit Upon Terminati on of Service (cont'd): AMSC: Years of Credited Service l es s t han 5 5 o~ mor.e yea r,s Vesting l?!;!rcenJag_e 00/4 100% AMSC members who have completed three (3) years of continuous Credited Service as of June 18, 2019 are 100% vested. 3. Refund Option: A terminated member may elect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits . L. MemberContributions: Members contribute 7.0% (3 .0% for Tier 2 General Employees and 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, both the City and the General Employees (other than Tier 2 General Employees and AMSC) will share equally in the amount in excess of 7.0%. General Employees (other than Tier 2 General Employees and AMSC) Contributions are capped at 10% of basic annual compensation as of October 1, 2016. Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5% but not more than 12.0%. M. Normal Form of Retirement Income: The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated Employee Contributions . N. Deferred Retirement Option Plan (DROP): 1. Eligibility: Attainment of normal retirement date. 2. The maximum period of participation in the DROP is sixty (60) months . 3. A member's account in the DROP shall be credited monthly with interest in an amount equal to 50% of the net (gross return minus investment expense) yearly interest earned by the Plan for the preceding fiscal year, up to a maximum of 5% and a minimum of 0%. 4. No payment may be made from the DROP until the member actually separates from service with the City. The DROP account balance may be distributed in a lump sum, periodic payments, an annuity or a combination thereof. 0. Ch anges Since Pr evi ous Actuaria l Valuation: None. South Miami Pension Plan 12 25 K. Benefit Upon Termination of Service (cont'd): AMSC: Years of Etedited Service lessthaf.\ 5 5 Of more years Vesting P!!rcentage AMSC members who have completed three (3) years of continuous Credited Service as of June 18,2019 are 100% vested. 3. Refund Option: A terminated member may elect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits. L. MemberContributions: Members contribute 7.0010 (3.0% for Tier 2 General Employees and 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, both the City and the General Employees (other than Tier 2 General Employees and AMSC) will share equally in the amount in excess of 7.0%. General Employees (other than Tier 2 General Employees and AMSC) Contributions are capped at 10% of basic annual compensation as of October 1,2016. Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5% but not more than 12.0%. M. Normal Form of Retirement Income: The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated Employee Contributions. N. Deferred Retirement Option Plan (DROP): 1. Eligibility: Attainment of normal retirement date. 2. The maximum period of participation in the DROP is sixty (60) months. 3. A member's account in the DROP shall be credited monthly with interest in an amount equal to 50% of the net (gross return minus investment expense) yearly interest earned by the Plan for the preceding fiscal year, up to a maximum of 5% and a minimum of 0%. 4. No payment may be made from the DROP until the member actually separates from service with the City. The DROP account balance may be distributed in a lump sum, periodic payments, an annuity or a combi nation thereof. O. Changes Since Prev i ous Actuarial Valuation : None. South Miami Pension Plan 12 25 204 ACTUARIAL ASSUMPTIONS AND METHODS PRIOR TO ANY PROPOSED CHANGES INCLUDED IN THIS STUDY A. Mortality General Employees I ncluding AMSC Mortality As sumptions: For healthy participants during employment, PUB-2010 Headcount Weighted General Below Median Employee Mortality Table, separate rates for males and females, set back 1 year for males, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment, PUB-2010 Headcount Weighted General Below Median Healthy Retiree Mortality Table, separate rates for males and females, set back 1 year for males, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled participants, PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table, separate rates for males and females, both set forward 3 years, without projected mortality improvements. Pre-retirement Post-retirement Sample Future Life Future Life Ages Expectancy {Years) Expectancy (Years) (2020) Male Female Male Female 55 32.58 35 .02 28.63 32.38 60 27.74 30.00 24.55 27.84 62 25.85 28 .02 22.93 26.02 Pre-retirement Post-retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2040) Male Female Male Female 55 34.22 36.50 30.64 34.15 60 29.30 31 .44 26.40 29.51 62 27.37 29.43 24.72 27.63 Pol i ce Officer Mortality Assum1:1tions : For healthy participants during employment, PUB-2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment, PUB-2010 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP- 2018. For disabled participants, 80% PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table/ 20% PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table, separate rates for males and females, without projected mortality improvements. South Miami Pension Plan 13 26 ACTUARIAL ASSUMPTIONS AND METHODS PRIOR TO ANY PROPOSED CHANGES INCLUDED IN THIS STUDY A. Mortality General Employees Including AMSC Mortality Assumptions: For healthy participants during employment, PUB-2010 Headcount Weighted General Below Median Employee Mortality Table, separate rates for males and females , set back 1 year for males, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment, PUB-20l0 Headcount Weighted General Below Median Healthy Retiree Mortality Table, separate rates for males and females, set back 1 year for males, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled participants, PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table, separate rates for males and females, both set forward 3 years, without projected mortality improvements . Pre-retirement Post-retirement Sample Future Ufe Future Ufe Ages Expectancy (Years) Expectancy (Years) (2020) Male Female Male Female 55 32.58 35 .02 28.63 32 .38 60 27.74 30.00 24.55 27.84 62 25.85 28 .02 22.93 26.02 Pre-retirement Post-retirement Sample Future Ufe Future Ufe Ages Expectancy (Years) Expectancy (Years) (2040) Male Female Male Female 55 34.22 36.50 30.64 34.15 60 29 .30 31 .44 26.40 29.51 62 27.37 29.43 24.72 27.63 Poljce Officer Mortality Assumptions : For healthy participants during employment, PUB-2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment, PUB-20l0 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP- 2018. For disabled participants, 80% PUB-20l0 Headcount Weighted General Disabled Retiree Mortality Table / 20% PUB-20l0 Headcount Weighted Safety Disabled Retiree Mortality Table, separate rates for males and females, without projected mortality improvements. South Miami Pension Plan 13 26 205 A. Mortality (cont'd) Pre-retirement Post-retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2020) Male Female Male Female 55 30.45 34.32 27.59 31.17 60 25.51 29.26 23.01 26.39 62 23.58 27 .25 21.28 24.55 Pre-retirement Post-retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2040) Male Female Male Female 55 32.09 35.81 29.48 33.00 60 27.08 30.70 24.79 28.13 62 25.11 28.67 23.00 26.25 B. Investment Return to be Earned by Fund 7.375% (net of investment expenses), compounded annually-includes inflation at 2.75%. C. Allowances for Expenses or Contingencies Actual expenses paid in previous year. D. Employee Withdrawal Rates Withdrawal rates for males and for females were used in accordance with the following illustrative example based upon number of years of service: E. Disability Rates 1 -l i-0 "l ~ il'tl ' ll &CO~r V'v1ithdrawal R~tes P-e.r.-'.100 F..rnp,•!o~e eis 12.00 40.()© S:.00 §~lS: ~JOO) S.00 1'.5.'Q 5 .Q.O 1985 Disability Study, Class 1 with separate rates for females. South Miami Pension Plan 14 27 A. Mortality (cont'd) Pre-retirement Post-retirement Sample Future Ufe Future Ufe Ages Expectancy (Years) Expectancy (Years) (2020) Male Female Male Female 55 30.45 34.32 27.59 31.17 60 25.51 29.26 23.01 26.39 62 23.58 27.25 21.28 24.55 Pre-retirement Post-retirement Sample Future Life Future Ufe Ages Expectancy (Years) Expectancy (Years) (2040) Male Female Male Female 55 32.09 35.81 29.48 33.00 60 27.08 30.70 24.79 28.13 62 25.11 28.67 23.00 26.25 B. Investment Return to be Earned by Fund 7.375% (net of investment expenses), compounded annually -includes inflation at 2.75%. C. Allowances for Expenses or Contingencies Actual expenses paid in previous year. D. Employee Withdrawal Rates Withdrawal rates for males and for females were used in accordance with the following illustrative example based upon number of years of service: E. Disability Rates \Ai~ithclJ7awel R~tQS Perl00 [ll'lplC>:yefMi P4.i1I,i C$ (jeneral l AMSe: l.~.OO ~O .O@ 8~OO ~-",2S: @~OO 5.,00 ~.gO §l1O 1985 Disability Study, Class 1 with separate rates for females. South Miami Pension Plan 14 27 206 F. Marital Assumptions 100% of active members are assumed to be married. Where applicable, females are assumed to be three years younger than their male spouses. G. Salary Increase Factors H. Current salary is assumed to increase in accordance with the following table based upon number of years of service -includes wage inflation of 3.25%. Service 0-9 10-14 15-19 20&over Increase in Covered Payroll Police 5.25% 3.75% 3.75% 3.75% General/ AMSC 5 .25% 4.75% 4.25% 3.75% 4.0% per year, limited to average annual increase over most recent ten years (0.7%) but not less than 0.0% for Police Officers. No increase in covered payroll is assumed for General Employees including AMSC. I. Retirement Rates Rates of Early Retirement for Police Officers were used in accordance with the following table. Years Preceding Normal Retirement 1-6 7-10 Police 5% 10% Rates of Normal Retirement were used in accordance with the following tables. Age Police General* AMSC ** 55-59 25% 10% 100/4 60-61 25% 100/4 25% 62-64 40% 25% 35% 65-66 100% 25% 35% 67 & above 1000/4 100% 100% Service Police 25 years 100% * Rates are 25% for Tier 2 members for each year upon meeting 33 years of service until 100% at age 67. ** Includes Early Retirement. Rates are 25% below the age of 62 and 35% between the ages of 62 and 66 upon meeting 33 years of service until 100% at age 67. General Employees who retire prior to age sixty (60) but after attainment of ten (10) years of Credited Service (55 & 10) are assumed to receive an actuarially reduced benefit payable immediately upon retirement. South Miami Pension Plan 15 28 F. Marital Assumptions 100% of active members are assumed to be married . Where applicable, females are assumed to be three years younger than their male spouses . G. Sa l ary I ncrease Fact o rs H. Current salary is assumed to increase in accordance with the following table based upon number of years of service -includes wage inflation of 3.25 %. Service 0-9 10-14 15 -19 20& over Increas e in Covered Pa~roll Police 5.25% 3.75% 3.75% 3.75% Ge ne ral I A M SC 5 .25% 4 .75% 4.25% 3.75% 4.0% per year, limited to average annual increase over most recent ten years (0.7%) but not less than 0 .0% for Police Officers. No increase in covered payroll is assumed for General Employees including AMSC. I. Retirement Rates Rates of Ea r ly Retireme nt for Police Office rs were used i n accordance with the following table. Years Preceding Normal Retirement 1 -6 7-10 Police 5% 10% Rates of Normal Retirement were used in accordance with the following tables. Age Police General • AMSC" 55-59 25% 10% 100;6 GO-61 25% 100;6 25% 62-64 40% 25% 35% 65-66 100% 25% 35% 67 & above 1000;6 100% 100% Service Police 25 ,):,ears 100% * Rates are 25 % forTier 2 members for each year upon meeting 33 years of service until 100% at age 67 . ** Includes Early Retirement. Rates are 25 % below the age of 62 and 35% between the ages of 62 and 66 upon meeting 33 years of service until 100% at age 67 . General Employees who ret i re pri orto age si x ty (60) but after attainment of ten (10) years of Cred i ted Service (55 & 10) are assumed to receive an actuarially reduced benefit payable immediately upon retirement. South Miami Pension Plan 15 28 207 J. Cost of Living In creases Future cost of l iving increases for General Employees (other than Tier 2 General Employees and AMSC) and Police Officers are assumed to be 3.0% per annum. K. Valuation of Assets The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The smoothed value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair market value of Plan assets and whose upper limit is 120% of the fair market value of Plan assets . L. Cost Methods Normal Retirement, Termination, Disab i lity and Pre-Retirement Death Benefit: Ent ry -Age-Actuarial Cost Method _ Under this method the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assuming the Plan had always been in effect. The normal cost for the Plan is the sum of the ind ividual normal costs for all active employees. The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the Plan is the excess of the actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs. The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrued liability over the smoothed value of assets of the Plan. Vested Normal Retirement, Terminat i on, Disa bility, and Death Benefits : Unit Credit Cost Method Under this method, the actuarial present value of vested accrued benefits is an amount calculated to be the sum of the present values of each individual's vested accrued o r earned benefit under the Plan as of the valuation date. Each individual's calculation is based on pay and service as of the valuation date . M. Changes Since Previous Actuarial Valuation None . South M iami Pension Plan 16 29 J. Cost of living Incre ase s Future cost of living increases for General Employees (other than Tier 2 General Employees and AMSC) and Police Officers are assumed to be 3.0% per annum . K. Valuation of Assets The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The smoothed value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair market value of Plan assets and whose upper limit is 120% of the fai r market value of Plan assets. L. Cost Methods Normal Retirement. Termination. Disability and Pre-Retirement Death Benefit : En try-Age-Actuaria l Cost M ethod. Under this method the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assuming the Plan had always been in effect. The normal cost for the Plan is the sum of the individual normal costs for all active employees. The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the Plan is the excess ofthe actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs. The unfunded actuarial accrued liability as of any valuation date is the excess ofthe actuarial accrued liability overthe smoothed value of assets of the Plan. Ve st e d Norm al Retirement. Terminati on . Disability. and Death Benefits: Unit Credit Cost Method Under this method, the actuarial present value of vested accrued benefits is an amount calculated to be the sum of the present values of each individual 's vested accrued or earned benefit under the Plan as of the valuation date. Each individual's calculation is based on pay and service as ofthe valuation date. M. Changes Since Previous Actuarial Valuation None . South Miami Pension Plan 16 29 208 GLOSSARY Actuarial Accrued Liability. The difference between the Actuarial Present Value of Future Benefits, and the Actuarial Present Value of Future Normal Costs. Actuarial Assumptions. Assumptions about future plan experience that affect costs or liabilities, such as : mortality, withdrawal, disablement, and retirement; future increases in salary; future rates of investment earnings; future investment and administrative expenses; characteristics of members not specified in the data, such as marital status; characteristics of future members; future elections made by members and other items. Actuarial Cost Method. Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits between the Actuarial Present Value of Future Normal Costs and the Actuarial Accrued Liability . Actuarial Equivalent. Of equal Actuarial Present Value, determined as of a given date and based on a given set of Actuarial Assumptions. Actuarial Present Value of Future Benefits . The Actuarial Present Value of amounts which are expected to be paid at various future times to active members, retired members, beneficiaries receiving benefits and inactive, non-retired members entitled to either a refund or a future retirement benefit. Expressed another way, it is the value that would have to be invested on the valuation date so that the amount invested plus investment earnings would provide sufficient assets to pay all projected benefits and expenses when due. Actuarial Valuation . The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a plan. An Actuarial Valuation for a governmental retirement system typically also includes calculations of items needed for compliance with GASB No. 67 . Actuarial Value of Assets. The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets or a smoothed value in order to reduce the year-to-year volatility of calculated results, such as the funded rat io and the actuarially required contribution. Amortization Method . A method for determining the Amortization Payment . The most common methods used are level dollar and level percentage of payroll. Under the Level Dollar method, the Amortization Payment is one of a stream of payments, all equal, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the Amortization Payment i s one of a stream of increasing payments, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the stream of payments increases at the rate at which total covered payroll of all active members is assumed to increase . I South Miami Pension Plan 17 30 GLOSSARY Actuarial Accrued Liability. The difference between the Actuarial Present Value of Future Benefits, and the Actuarial Present Value of Future Normal Costs. Actuarial Assumptions. Assumptions about future plan experience that affect costs or liabilities, such as : mortality, withdrawal, disablement, and retirement; future increases in salary; future rates of investment earnings; future investment and administrative expenses; characteristics of members not specified in the data, such as marital status; characteristics of future members; future elections made by members and other items. Actuarial Cost Method. Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits between the Actuarial Present Value of Future Normal Costs and the Actuarial Accrued Liability. Actuarial Equivalent. Of equal Actuarial Present Value, determined as of a given date and based on a given set of Actuarial Assumptions. Actuarial Present Value of Future Benefits. The Actuarial Present Value of amounts which are expected to be paid at various future times to active members, retired members, beneficiaries receiving benefits and inactive, non-retired members entitled to either a refund or a future retirement benefit. Expressed another way, it is the value that would have to be invested on the valuation date so that the amount invested plus investment earnings would provide sufficient assets to pay all projected benefits and expenses when due. Actuarial Valuation. The determination, as of a valuation date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a plan. An Actuarial Valuation for a governmental retirement system typically also includes calculations of items needed for compliance with GASB No. 67. Actuarial Value of Assets. The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets or a smoothed value in order to reduce the year-to-year volatility of calculated results, such as the funded ratio and the actuarially required contribution. Amortization Method. A method for determining the Amortization Payment. The most common methods used are level dollar and level percentage of payroll. Under the Level Dollar method, the Amortization Payment is one of a stream of payments, all equal, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the Amortization Payment is one of a stream of increasing payments, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the stream of payments increases at the rate at which total covered payroll of all active members is assumed to increase. I South Miami Pension Plan 17 30 209 Amortization Payment. That portion of the plan contribution which is designed to pay interest on and to amortize the Unfunded Actuarial Accrued Liability. Amortization Period. The period used in calculating the Amortization Payment. Annual Required Contribution. The employer's periodic required contributions, expressed as a dollar amount or a percentage of covered plan compensation. The annual required contribution consists of the Employer Normal Cost and Amortization Payment plus interest adjustment. Closed Amortization Period. A specific number of years that is reduced by one each year, and declines to zero with the passage of time. For example if the amortization period is initially set at 30 years, it is 29 years at the end of one year, 28 years at the end of two years, etc. Employer Normal Cost. The portion of the Normal Cost to be paid by the employer. This is equal to the Normal Cost less expected member contributions . Equivalent Single Amortization Period. For plans that do not establish separate amortization bases (separate components of the UAAL}, this is the same as the Amortization Period. For plans that do establish separate amortization bases, this is the period over which the UAAL would be amortized if all amortization bases were combined upon the current UAAL payment. Experience Gain/Loss. A measure of the difference between actual experience and that expected based upon a set of Actuarial Assumptions, during the period between two actuarial valuations. To the extent that actual experience differs from that assumed, Unfunded Actuarial Accrued Liabiliti es emerge which may be larger or smaller than projected. Gains are due to favorable experience, e.g., the assets earn more than projected, salaries do not increase as fast as assumed, members retire later than assumed, etc. Favorable experience means actual results produce actuarial liabilities not as large as projected by the actuarial assumptions. Losses are the result of unfavorable experience, i.e., actual results that produce Unfunded Actuarial Accrued Liabilities which are larger than projected . Funded Ratio. The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability. GASB. Governmental Accounting Standards Board . South Miami Pension Plan 18 31 Amortization Payment. That portion of the plan contribution which is designed to pay interest on and to amortize the Unfunded Actuarial Accrued Liability. Amortization Period. The period used in calculating the Amortization Payment. Annual Required Contribution. The employer's periodic required contributions, expressed as a dollar amount or a percentage of covered plan compensation. The annual required contribution consists of the Employer Normal Cost and Amortization Payment plus interest adjustment. Closed Amortization Period . A specific number of years that is reduced by one each year, and declines to zero with the passage of time. For example if the amortization period is initially set at 30 years, it is 29 years at the end of one year, 28 years at the end of two years, etc. Employer Normal Cost. The portion of the Normal Cost to be paid by the employer. This is equal to the Normal Cost less expected member contributions . Equivalent Single Amortization Period. For plans that do not establish separate amortization bases (separate components of the UAAL), this is the same as the Amortization Period. For plans that do establish separate amortization bases, this is the period over which the UAAL would be amortized if all amortization bases were combined upon the current UAAL payment. Experience Gain/Loss. A measure of the difference between actual experience and that expected based upon a set of Actuarial Assumptions, during the period between two actuarial valuations. To the extent that actual experience differs from that assumed, Unfunded Actuarial Accrued Liabilities emerge which may be larger or smaller than projected. Gains are due to favorable experience, e.g., the assets earn more than projected, salaries do not increase as fast as assumed, members retire later than assumed, etc. Favorable experience means actual results produce actuarial liabilities not as large as projected by the actuarial assumptions. Losses are the result of unfavorable experience, i.e., actual results that produce Unfunded Actuarial Accrued Liabilities which are larger than projected. Funded Ratio. The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability . GASB. Governmental Accounting Standards Board . South Miami Pension Plan 18 31 210 GASB No. 67 and GASB No. 68. These are the governmental accounting standards that set the accounting rules for public retirement plans and the employers that sponsor or contribute to them. Statement No. 67 sets the accounting rules for the plans themselves, while Statement No. 68 sets the accounting rules for the employers that sponsor or contribute to public retirement plans . Normal Cost. The annual cost assigned, under the Actuarial Cost Method, to the current plan year. Open Amortization Period. An open amortization period is one which is used to determine the Amortization Payment but which does not change over time. In other words, if the initial period is set as 30 years, the same 30-year period is used in determining the Amortization Period each year. In theory, if an Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability, the UAAL will never completely disappear, but will become smaller each year, either as a dollar amount or in relation to covered payroll. Unfunded Actuarial Accrued Liability. The difference between the Actuarial Accrued Liability and Actuarial Value of Assets. Valuation Date. The date as of which the Actuarial Present Value of Future Benefits are determined. The benefits expected to be paid in the future are discounted to this date. South Miami Pension Plan 19 32 GASB No. 67 and GASB No. 68. These are the governmental accounting standards that set the accounting rules for public retirement plans and the employers that sponsor or contribute to them. Statement No. 67 sets the accounting rules for the plans themselves, while Statement No. 68 sets the accounting rules for the employers that sponsor or contribute to public retirement plans. Normal Cost. The annual cost assigned, under the Actuarial Cost Method, to the current plan year. Open Amortization Period. An open amortization period is one which is used to determine the Amortization Payment but which does not change over time. In other words, if the initial period is set as 30 years, the same 30-year period is used in determining the Amortization Period each year. In theory, if an Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability, the UAAL will never completely disappear, but will become smaller each year, either as a dollar amount or in relation to covered payroll. Unfunded Actuarial Accrued Liability. The difference between the Actuarial Accrued Liability and Actuarial Value of Assets. Valuation Date. The date as of which the Actuarial Present Value of Future Benefits are determined. The benefits expected to be paid in the future are discounted to this date. South Miami Pension Plan 19 32 211 RESOLUTION NO. ___ 1_4 _6-01-11294 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF soum MIAMI, FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES, AU1HORIZING TIIE CITY MANAGER TO SIGN A THREE-YEAR CONTRACT WIIB GABRIEL, ROEDER, SMITH & COMP ANY(GRS), WITH THE OPTION FOR RENEWAL FOR ADDITIONAL YEARS. WHEREAS, the City of South Miami employee Pension Fund currently utilizes WATSON WYATT as the actuarial consulting finn; and WHEREAS , Watson Wyatt (actuaries) has advised the City that effective August 31, 2001, it reached an alliance with Gabriel, Roeder & Company (GRS); and WHEREAS, the City sought to conduct a formal search for actuarial services from different companies and received proposals from four of them; and WHEREAS, the pension board reviewed the proposals submitted and interviewed representatives of the four companies that responded ; and WHEREAS , the pension board has recommended that the service contract be awarded to Gabriel, Roeder & Company, and the pension attorney concurred that the company is premier in the industry. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF SOUTH MIAMI , FLORIDA, THAT: Section 1 Effective immediately, Gabriel, Roeder & Company (GRS) will serve as the actuarial consulting firm in accordance with the tenns and conditions of the City pension plan. Section 2 The City Manager is authorized to sign a three-year contract with the option for renewals for additional years with the company for pension actuarial se1vices. Section 3 This resolution shall take effect innnediately upon approval. PASSED AND ADOPTED this _2_n_a __ day of October 2001 . COMMISSION VOTE: 4-0 Mayor Robaina: Yea READ AND APPROVED AS TO FORM : Vice Mayor Feliu: Yea Commissioner Bethel: Yea Commissioner Wiscombe: not preser Commissioner Russell: Yea 33 RESOLUTION NO. ___ '_4 _6-01-11294 A RESOUmON OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTII MIAMI, FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES, AU1HORIZING THE CITY MANAGER TO SIGN A THREE-YEAR CONTRACT WIlli GABRIEL, ROEDER, SMITH & COMP ANY(GRS), WITH THE OPTION FOR RENEWAL FOR ADDITIONAL YEARS . WHEREAS, the City of South Miami employee Pension Fund currently utilizes WATSON WYATT as the actuarial consulting firm; and WHEREAS, Watson Wyatt (actuaries) has advised the City that effective August 31, 2001, it reached an alliance with Gabriel, Roeder & Company (GRS); and WHEREAS, the City sought to conduct a formal search for actuarial services from different companies and received proposals from four of them; and WHEREAS, the pension board reviewed the proposals submitted and interviewed representatives of the four companies that responded; and WHEREAS, the pension board has recommended that the service contract be awarded to Gabriel, Roeder & Company, and the pension attorney concurred that the company is premier in the industry. NOW THEREFORE BE IT RESOL YED BY THE MAYOR AND CITY COMMISSION OF SOUTH MIAMI, FLORIDA, THAT : Section 1 Effective immediately, Gabriel, Roeder & Company (GRS) will serve as the actuarial consulting firm in accordance with the tenns and conditions of the City pension plan. Section 2 The City Manager is authorized to sign a three-year contract with the option for renewals for additional years with the company for pension actuarial seIVices. Section 3 This resolution shall take effect innnediately upon approval. PASSED AND ADOPTED this __ 2n_d __ day of October 2001 . ATTEST: .<'l COMMISSION VOTE: 4-0 Mayor Robaina: Yea crfhf1fi¥ READ AND APPROVED AS TO FORM: Vice Mayor Feliu: Yea Commissioner Bethel: Yea Commissioner Wiscombe: not preser Commissioner Russell: Yea 33 212 TO : FROM: The Request Mayor and City Commission /,--"'; Charles D. Scurr .-t 11:1· .1 City Manage/·½},.!//? _ _ , ·r.•J I -,y ~ r~~/ • _,,'\)'.§1] t,<tJ ,,.,t,,v- ' ~ DATE: September 26, 2001 Re: AGENDA ITEM# _if Transfer of Actuarial Consulting Services from Watson Wyatt to Gabriel, Roeder, Smith & Company A RESOLUTION OF THE l\1AYOR AND CITY CO:M:MISSION OF THE CITY OF SOUTH MIAMJ, FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES, AUTHORIZING THE CITY MANAGER TO SIGN A THREE YEAR CONTRACT WITH GABRIEL, ROEDER, SMITH & CO:MPANY (HEREINAFTER GRS) WITH RENEW AL OPTION FOR ADDITIONAL YEARS. Background and Analysis- Recently, the City pension board made a business decision to solicit bids for actuarial services from different companies with the intention of reducing the total cost of administering the pension plan. Four companies submitted proposals in response to the solicitation_ These four companies are as follows: Gabriel, Roeder, Smith & Company (Watson Wyatt) Buck Consultants AON Consulting Services Segal Company The four proposals were reviewed by the pension board members, and the representatives of each company were given the opportunity to respond to questions posed by the board members with regards to the proposals submitted. After careful deliberations, the pension board unanimously agreed to award the service contract to Gabriel, Roeder, Smith & Company (GRS). The company recently formed an alliance with Watson Wyatt. It is a private corporation that has been in business since 1938 . It provides benefit consulting services to over 500 public and private sector clients nationwide with an emphasis on the public sector retirement system. Just for your information, the pension attorney concurred that GRS is a premier company in the industry . Attached vVith the resolution is the schedule of services that will be provided and fee to be charged by the company for the next three years. The payment of the fee will be charged directly 34 TO : FROM: The R equest Mayor and City Commission /' .. "'; Charles D. Scurr rl 11:1' .I City Manage/1;.? 1/ ~" "F1 CAy ,~.. ....'#:fi:P.. ,..j,".i' .§I] , 'fIjP,,,,l/ - DATE: September 26,2001 Re: AGENDA ITEM # -'..1 Transfer of Actuarial Consulting Services from Watson Wyatt to Gabriel, Roeder, Smith & Company A RESOLUTION OF THE NIAYOR AND CITY CO:M:MISSION OF THE CITY OF SOUTH MIAMJ, FLORIDA, RELATING TO PENSION ACTUARIAL CONSULTING SERVICES, AUTHORIZING THE CITY MANAGER TO SIGN A THREE YEAR CONTRACT WITH GABRIEL, ROEDER, SMITH & CO:MPANY (HEREINAFTER GRS) WITH RENEWAL OPTION FOR ADDITIONAL YEARS. Background and Analysis Recently, the City pension board made a business decision to solicit bids for actuarial services from different companies with the intention of reducing the total cost of administering the pension plan. Four companies submitted proposals in response to the solicitation. These four companies are as follows: Gabriel, Roeder, Smith & Company (Watson Wyatt) Buck Consultants AON Consulting Services Segal Company The four proposals were reviewed by the pension board members, and the representatives of each company were given the opportunity to respond to questions posed by the board members with regards to the proposals submitted. After careful deliberations, the pension board unanimously agreed to award the service contract to Gabriel, Roeder, Smith & Company (GRS). The company recently formed an alliance with Watson Wyatt. It is a private corporation that has been in business since 1938. It provides benefit consulting services to over 500 public and private sector clients nationwide with an emphasis on the public sector retirement system. Just for your information, the pension attorney concurred that GRS is a premier company in the industry. Attached with the resolution is the schedule of services that will be provided and fee to be charged by the company for the next three years. The payment of the fee will be charged directly 34 213 against the pension fund bank account. RECOMMENDATION I recommend approval. 35 against the pension fund bank account. RECOMMENDATION I recommend approval. 35 214 SCOPE OF SERVICES AND FEE PROPOSAL 1. FIXED FEE SERVICES Based upon our experience with similar Plans and based upon our discussions, we propose a comprehensive fixed-fee services that the Boards can be expected to require. We have then determined our fees based upon our analysis of these comprehensive regular recurring services. The advantages of this fixed fee approach to the Boards include knowing in advance the annual cost for all anticipated recurring services and the ability to budget and to prevent any surprises after the work has been performed. Further, we will guarantee this fixed fee amount for two years. The fixed fee amount will be increased only by inflation as measured by the Consumer Price Index for the third and subsequent years. The fixed fee services may be summarized as follows: • Preparation and delivery of the annual Actuarial Valuation Report including attendance at a Pension Board meeting to present the results of our valuation and respond to any questions. Our report will include the following requested seniices: • ✓ Collection and reconciliation of Member census data, ✓ Recommendation of actuarial assumptions and methods, ✓ Calculation and reconciliation of actuarial value of assets, ✓ Determination of liabilities in accordance with State, actuarial and Government Accounting Standards Board (GASB) requirements, ✓ Determination of required contributions, ✓ GASB expense and disclosure exhibits (GASB #25 and #27) and ✓ Compliance with Chapters 112 and 185, Florida Statutes. 11 Preparation and delivery oflndividual Employee Benefit Statements. We recommend that we prepare one copy to be distributed to active members and a second copy to be retained in the Plan records. • Preparation and delivery of actuarial studies to determine financial effect of plan <:hanges or changes in actuarial assumptions or methods (up to 2 per annum), e Preparation and delivery of Actuarial Impact Statements to be filed with the State after passage of amending City Ordinances after passage at first reading but p1ior to passage at second reading. (up to 2 per annum), • Attendance at up to two additional Committee Meeting. • Response to any inquiries from the State relating to our Actuarial Valuation Report. & Response to audito1·'s confirmation request and coordination with other service providers. • Biennial preparation ofSPD financial addendum. • Triennial review of actuarial equivalence definition for determining optional fonns of payment including preparation of revised option factor tables upon any update. o Review of plan experience in comparison to actuarial assumptions. • Preparation of benefit calculations for retiring or terminating employees ( up to 6 per annum). • Calculation of buy-back amounts (up to 6 per annum) " Telephone conversations on pending or anticipated issues that may affect our Actuarial Valuation Report that do not result in a work assignment • Review legislation that may impact plan in coordination with Plan Attorney. • Review compliance with State and Federal regulations in coordination with Plan Attorney Our fixed fee for these comprehensive services will be $15,600 annually. We will bili for our fixed fee services quartei:-1y at the rate of $3,900 per quarter_ GABRIEL, ROEDER, SMITH & COMPANY 36 SCOPE OF SERVICES AND FEE PROPOSAL 1. FIXED FEE SERVICES Based upon our experience with similar Plans and based upon our discussions, we propose a comprehensive fixed-fee services that the Boards can be expected to require. We have then determined our fees based upon our analysis of these comprehensive regular recurring services. The advantages ofthis fixed fee approach to the Boards include knowing in advance the annual cost for all anticipated recurring services and the ability to budget and to prevent any surprises after the work has been perfonned. Further, we will guarantee this fixed fee amount for two years. The fixed fee amount will be increased only by inflation as measured by the Consumer Price Index for the third and subsequent years. The fixed fee services may be summarized as follows: • Preparation and delivery of the annual Actuarial Valuation Repoli including attendance at a Pension Board meeting to present the results of our valuation and respond to any questions. Our report will include the following requested selllices: . ../ Collection and reconciliation of Member census data, ../ Recommendation of actuarial assumptions and methods, ../ Calculation and reconciliation of actuarial value of assets, ./ Determination of liabilities in accordance with State, actuarial and Government Accounting Standards Board (GASB) requirements, ./ Determination of required contributions, ./ GASB expense and disclosure exhibits (GASB #25 and #27) and ./ Compliance with Chapters 112 aDd 185, Florida Statutes. II Preparation and delivery ofIndividual Employee Benefit Statements. We recommend that we prepare one copy to be distributed to active members and a second copy to be retained in the Plan records. o Preparation and delivery of actuarial studies to determine financial effect of plan o;:hanges or changes in actuarial assumptions or methods (up to 2 per annum), e Preparation and delivery of Actuarial Impact Statements to be filed with the State after passage of amending City Ordinances after passage at fIrst reading but plior to passage at second reading. (up to 2 per annum), " Attendance at up to two additional Committee Meeting. " Response to any inquiries from the State relating to our Actuarial Valuation Report. & Response to auditol"S confirmation request and coordination with other service providers. " Biennial preparation ofSPD financial addendum. " Triennial review of actuarial equivalence definition for determining optional forms of payment including preparation of revised option factor tables upon any update. " Review of plan experience in comparison to actuarial assumptions, • Preparation of benefit calculations for retiring or terminating employees (up to 6 per annum). • Calculation of buy-back amounts (up to 6 per annum) fl Telephone conversations on pending or anticipated issues that may affect our Actuarial Valuation Report that do not result in a work assignment " Review legislation that may impact plan in coordination with Plan Attorney. " Review compliance with State and Federal regulations in coordination with Plan Attorney Our fixed fee for these comprehensive services will be $15,600 annually. We will bili for our fixed fee services quarterly at the rate ()f $3,900 per quarter. GABRIEL, ROEDER, SMITH & COMPANY 36 215 SCOPE OF SERVICES AND FEE PROPOSAL (CONTINUED) 2. OTHER SERVICES \Vhile the breadth of fixed fee services is quite comprehensive, additional services of a non- recurring nature will be based upon our hourly rates. These rates would apply to any actuarial studies or impact statements in excess of the two per annum included under the fixed fee arrangement. . Our hourly rates are detennined based upon the experience and abilities of our employees. The following are our current hourly rates reflecting the South Miami Team members. • Senior Consultant and Actuary: $285 • Consultant and Actuary $150 • Analyst $125 • Administrative Assistant $ 85 Our hourly rates are quite competitive in the industry. Further, we will not increased these hourly rates for two years, In the third and subsequent years our hourly rates will be increased only by inflation as measured by the Consumer Price Index for the third and subsequent years Unlike some other firms, our hourly rates include our overhead. We do not load our fees for technical and administrative services. 3. BENEFIT CALCULATIONS AND BUY BACK CALCULTIONS {IN EXCESS OF SIX EACH PER ANNUM) Vvnile we do not anticipate a volume of calculations in excess of the six each covered under the fixed fee arrangement, our fees for excess benefit calculations and buy-backs will be determined based upon hourly rates and we will agree to a not-to-exceed basis. That is, to the extent that our costs based upon our hourly rates are lower than the not-to-exceed amounts, we will bill our costs. To the extent that our costs based upon our hourly rates equals or exceeds the not-to- exceed amount , we will bill the not-to-exceed amount. We anticipate that our costs may be less than the noUo-exceed amount when verifications, calculations or buy-backs are batched (requested in groups). The following are our not-to-exceed amounts: • Benefit verifications: • Benefit calculations: • Buy-back calculations: $150 per verification $250 per calculation $275 per calculation . Our hourly rates are shown above. GABRIEL, ROEDER, SMITH & COMPANY 37 SCOPE OF SERVICES AND FEE PROPOSAL (CONTINUED) 2. OTHER SERVICES \Vhile the breadth of fixed fee services is quite comprehensive, additional services of a non- recurring nature will be based upon our hourly rates. These rates would apply to any actuarial studies or impact statements in excess of the two per annum included under the fixed fee arrangement. . Our hourly rates are determined based upon the experience and abilities of our employees. The following are our current hourly rates reflecting the South Miami Team members. " Senior Consultant and Actuary: $285 " Consultant and Actuary $150 " Analyst $125 .. Administrative Assistant $ 85 Our hourly rates are quite competitive in the industry. Further, we will not increased these hourly rates for two years, In the third and subsequent years our hourly rates will be increased only by inflation as measured by the Consumer Price Index for the third and subsequent years Unlike some other firms, our hourly rates include our overhead. We do not load our fees for technical and administrative services. 3. BENEFIT CALCULATIONS AND BUY BACK CALCULTIONS (IN EXCESS OF SIX EACH PER ANNUM) Vv11ile we do not anticipate a volume of calculations in excess of the six each covered under the fixed fee arrangement, our fees for excess benefit calculations and buy-backs will be determined based upon hourly rates and we will agree to a not-to-exceed basis, That is, to the extent that our costs based upon our hourly rates are lower than the noHo-exceed amounts, we will bill our costs. To the extent that our costs based upon our hourly rates equals or exceeds the not-to- exceed amount , we will bill the not-to-exceed amount. We anticipate that our costs may be less than the not-to-exceed amount when verifications, calculations or buy-backs are batched (requested in groups), The following are our not-to-exceed amounts: • • Benefit verifications: Benefit calculations: Buy-back calculations: $150 per verification $250 per calculation $275 per calculation . Our hourly rates are shown above. GABRiEL, ROEDER, SMITH & COMPANY 37 216 .. GABRIEL, R<>eOER. SMlTH & COMPANY C!X15ulhinu • A~hl•rii:, September 26) 200 l Ms. Jeanette Enrizo •Navarro Pension Administrator 3"1 East Las Olas alvd. 11 S,;;1~ 200 • Ft. Lac.oeerdale , f'L 33301•954·527··,6~6 9 FAX 954·525·006:i General and Police Pension FUJ".ds City of South Miami 6130 Suri.set Drive South Miami, Florida 33143.5093 Dear Jeanette: As discussed, we are confinnm.g our orai advice agreeing to an expansion of the seI'\'ices covered under our fixed-fee proposal. As you are aware, our initial fixed-fee proposal provided for up to two (2) actuarial cost studies plus up to two (2) actuarial impact s!s.tements per aMum. We had previously agreed to expand these services to include a total of eight (8) actuarial cost s:udies or actt.arial impact sta tements in any combination during each period of tv.'o (2) years. We now confinn that we will expand our fixed. fee services to include a total of nine (9) actuarial cost studies or actuarial impact statements in any com'oination during each period of two (2) ye.a.rs That is to say, for the period frnm date ~,fi:;.;eption (i.e. October 1 ~(!')1) to t}ie"'s·eco nd ar.niversa.')· of the date of inception (i.e. October 1, 2003), we wi:: petiorm up _tu a total of nine (9) actuarial studies or actuarial impact statements. During the su~.sequent i'\J.'o-year period (i .e. October l, 2003 -October l , 2005), the fixed-fee would cov~ ni.ne (9) actuarial cost sru.dies or actuarial impact statements in any combination. For e:xa..ilple, du..--ing the tw·o year period, tt'l.e Board could request. six (6 ) actuarial cost studies and three (3) actuarial impact statements , er sorne other combination totaling nine (9), without incurring additional fees . We trust that t.li.e Pension Boards and Ci:y will find our clarification worthwhile. We remain excited about the opportunlry to work with you. Sincerest regards, Lawrence f . Wilson, A.S.A. Senior Consultant EL.'1d Actuary 38 GABRIEL, RoeOER. SMITH 8. COMPANY C!m5\4ltilnu • Ad\lariu September 26) 200 1 Ms. Jeanette Enrizo-Navarro Pension Administrator 301 East Las Oh~3 BLvd. II S';;19 2CO' Ft.'~ac.'Cerdale. rL 33301 "954·527··.6~6. FAX 954-52S·00S:; General and Police Pension FW".ds City of South Miami 6130 Sunset Drive South Miami, Florida 33 143~5093 Dear Jeanette: As discussed, we Ere codlnning Qur oral advice agreeing to an expansion of the set\'ices covered under OUT fixed-fee proposal. As you are aware, our initial fixed-fee proposal provided for up to 1'\\10 (2) actuarial cost studies plus up to two (2) actuarial impact s!atements per annum. We had prev10usly agreed to expand these services to include a total of eight (8) actuarial cost s~dies or actt.arial impact statements in any combination during each period of two (2) years. \Ve now confirm that we wi!! expand our fixed· fee sen:ices to include a tota:! of nine (9) actuarial cost studies or a~al impact statements in any combination during each period ofnvo (2) ye.ars That is to say, for the period frum date ~)fi:;.;eption (i.e. October 1 ~(!')l) to tJi.'e"se;ohd ar.niversary of the date of inception (i.e. October 1, 2003), we \vi;; petioI'm up .tv a total of nine (9) actuarial studies or actua:ial impact statcrnents. During the subsequent i\l.'o-year period (i.e. October l, 2003 -October 1, 2005), the fued~fee would COV~ nine (9) actuarial cost studies or actuarial impact statements in any combination. For exa-.-nple, du..-mg the t'wo year period, ul.e Board could request six (6) actuarial cost studies and three (3) actuarial impact statements, or some other combL."lation totaling nine (9), without incurring additional fees. We tntst that L\e Pension Boards and City will find our clarification worthwhile. We remain excited about the opportunity to work \\l1th you. Sincerest regards. Lawrence f. Wilson, A.S.A. Senior Consultant EL.'1d Actuary 38 217 Summary of Retirement Plan Costs as of October 1, 2020 General Employees Tier 1 A. Participant Data Summary 1. Active employees 2. Terminated vested 3. Receiving benefits (excluding DROPs) 4. DROP participants 5. Annual payroll of active employees B. Total Normal Costs 1. Age retirement benefits 2. Termination benefits 3. Death benefits 4. Disability benefits 5. Estimated administrative expenses 6. Total annual normal costs C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees 2. Termination benefits active employees 3. Death benefits active employees 4. Disability benefits active employees 5. Retired or terminated vested participants receiving benefits excluding DROP participants 6. DROP participants 7. Terminated vested participants entitled to future benefits 8. Deceased participants whose beneficiaries are receiving benefits 9. Disabled participants receiving benefits 10. Miscellaneous liability 11. Total actuarial accrued liability D. Market Value of Assets (Table V) E. Smoothed Value of Assets (Table V) F. Unfunded Actuarial Accrued Liability (C. -E.) $ $ $ $ $ $ $ $ Cost Data 15 5 25 4 907,685 65,115 20,111 685 6,303 51,460 143,674 4,034,813 138,642 14,386 212,204 6,957,382 1,360,944 824,475 167,205 0 83,178 13,793,229 17,126,850 17,318,262 (3,525,033) Table I %of Payroll N/A N/A N/A N/A 100.0% 7.2% 2.2% 0.1% 0.7% 5.7% 15.8% 444.5% 15 .3% 1.6% 23.4% 766 .5% 149.9% 90.8% 18.4% 0.0% 9.2% 1519.6% 1886.9% 1908.0% (388.4%) South Miami Pension Plan 39 Table I Summary of Retirement Plan Costs as of October 1, 2020 General Emplovees TIer 1 A. Participant Data Summary 1. Active employees 2. Terminated vested 3. Receiving benefits (excluding DROPs) 4. DROP participants 5. Annual payroll of active employees B. Total Normal Costs 1. Age retirement benefits 2. Termination benefits 3. Death benefits 4. Disability benefits 5. Estimated administrative expenses 6. Total annual normal costs C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees 2. Termination benefits active employees 3. Death benefits active employees 4. Disability benefits active employees 5. Retired or terminated vested participants receiving benefits excluding DROP participants 6. DROP participants 7. Terminated vested participants entitled to future benefits 8. Deceased participants whose beneficiaries are receiving benefits 9. Disabled participants receiving benefits 10. Miscellaneous liability 11. Total actuarial accrued liability D. Market Value of Assets (Table V) E. Smoothed Value of Assets (Table V) F. Unfunded Actuarial Accrued Liability (c. -E.) $ $ $ $ $ $ $ $ Cost %of Data Payroll 15 N/A 5 N/A 25 N/A 4 N/A 907,685 100.0% 65,115 7.2% 20,111 2.2% 685 0.1% 6,303 0.7% 51,460 5.7% 143,674 15.8% 4,034,813 444.5% 138,642 15.3% 14,386 1.6% 212,204 23 .4% 6,957,382 766.5% 1,360,944 149.9% 824,475 90.8% 167,205 18.4% 0 0.0% 83 ,178 9.2% 13,793,229 1519.6% 17,126,850 1886.9% 17,318,262 1908.0% (3,525,033 ) (388.4%) South Miami Pension Plan 39 218 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 Genera l Employees Tier 1 Cost %of Data Payroll G. Preliminary Minimum Required Contribution 1. Total normal cost $ 143,674 15.8% 2. Amortization of unfunded liability (331,035) (36.5%) 3. Interest adjustment (6,663) (0.7%) 4. Total preliminary required contribution $ (194,024) (21.4%) H. Minimum Required Contribution (F .S., 112.66 (13)) (Greater of G.l. and G.4.) $ 143,674 15.8% I. Contribution Sources for Fiscal Year Ending September 30, 2022 1. City $ 80,136 8.8% 2. Member 63,538 7.0% 3. State N/A N/A 4. Total minimum funding requirement $ 143,674 15.8% J. Actuarial Present Value of Vested Accrued Benefits 1. Retired, terminated vested, beneficiaries and disabled receiving benefits excluding DROPs $ 7,124,587 784.9% 2. DROP participants 1,360,944 149.9% 3. Terminated vested participants entitled to future benefits and miscellaneous 907,653 100.0% 4. Active participants entitled to future benefits 3,062,003 337.3% 5. Total actuarial present value of vested accrued benefits $ 12,455,187 1372 .2% K. Unfunded Actuarial Present Value of Vested Accrued Benefits (J. -D., not less than zero) $ 0 0.0% L. Vested Benefit Security Ratio (D.-;-J.) 137.5% N/A South Miami Pension Plan 40 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 General Employees Tier 1 Cost %of Data Payroll G. Preliminary Minimum Required Contribution 1. Total normal cost $ 143,674 15.8% 2. Amortization of unfunded liability (331,035) (36.5%) 3. Interest adjustment (6,663) (0.7%) 4. Total preliminary required contribution $ (194,024) (21.4%) H. Minimum Required Contribution (F.S., 112.66 (13)) (Greater of G.1. and G.4.) $ 143,674 15.8% I. Contribution Sources for Fiscal Year Ending September 30,2022 1. City $ 80,136 8.8% 2. Member 63,538 7.0% 3. State N/A N/A 4. Total minimum funding requirement $ 143,674 15.8% J. Actuarial Present Value of Vested Accrued Benefits 1. Retired, terminated vested, beneficiaries and disabled receiving benefits excluding DROPs $ 7,124,587 784.9% 2. DROP participants 1,360,944 149.9% 3. Terminated vested participants entitled to future benefits and miscellaneous 907,653 100.0% 4. Active participants entitled to future benefits 3,062,003 337.3% 5. Total actuarial present value of vested accrued benefits $ 12,455,187 1372.2% K. Unfunded Actuarial Present Value of Vested Accrued Benefits (1. -D., not less than zero) $ ° 0.0% L. Vested Benefit Security Ratio (D . .;. 1.) 137.5% N/A South Miami Pension Plan 40 219 Summary of Retirement Plan Costs as of October 1, 2020 General Employees Tier 2 A. Participant Data Summary 1. Active employees 2. Terminated vested 3. Receiving benefits (excluding DROPs) 4. DROP participants 5. Annual payroll of active employees B. Total Normal Costs 1. Age retirement benefits 2. Termination benefits 3. Death benefits 4. Disability benefits 5. Estimated administrative expenses 6. Total annual normal costs C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees 2. Termination benefits active employees 3. Death benefits active employees 4. Disability benefits active employees 5. Retired or terminated vested participants receiving benefits excluding DROP participants 6. DROP participants 7. Terminated vested participants entitled to future benefits 8. Deceased participants whose beneficiaries are receiving benefits 9. Disabled participants receiving benefits 10. Miscellaneous liability 11. Total actuarial accrued liability D. Market Value of Assets (Table V) E. Smoothed Value of Assets (Table V) F. Unfunded Actuarial Accrued Liability (C. -E.) $ $ $ $ $ $ $ $ Cost Data 27 1 0 0 1,264,549 68,633 22,599 567 5,725 1,798 99,322 438,606 108,735 2,954 32,724 0 0 9,941 0 0 18,199 611,159 650,209 664,846 (53,687) Table I (Cont'd) %of Payroll N/A N/A N/A N/A 100.0% 5.4% 1.8% 0.0% 0.5% 0.1% 7.9% 34.7% 8.6% 0.2% 2.6% 0.0% 0.0% 0.8% 0.0% 0.0% 1.4% 48.3% 51.4% 52.6% (4.2%) South Miami Pension Plan 41 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 General Employees Tier 2 A. Participant Data Summary 1. Active employees 2. Terminated vested 3. Receiving benefits (excluding DROPs) 4. DROP participants 5. Annual payroll of active employees B. Total Normal Costs 1. Age retirement benefits 2. Termination benefits 3. Death benefits 4. Disability benefits 5. Estimated administrative expenses 6. Total annual normal costs C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees 2. Termination benefits active employees 3. Death benefits active employees 4. Disability benefits active employees 5. Retired or terminated vested participants receiving benefits excluding DROP participants 6. DROP participants 7. Terminated vested participants entitled to future benefits 8. Deceased participants whose beneficiaries are receiving benefits 9. Disabled participants receiving benefits 10. Miscellaneous liability 11. Total actuarial accrued liability D. Market Value of Assets (Table V) E. Smoothed Value of Assets (Table V) F. Unfunded Actuarial Accrued Liability (c. -E.) $ $ $ $ $ $ $ $ Cost Data 27 1 0 0 1,264,549 68,633 22,599 567 5,725 1,798 99,322 438,606 108,735 2,954 32,724 o o 9,941 o o 18,199 611,159 650,209 664,846 (53,687) %of Payroll N/A N/A N/A N/A 100.0% 5.4% 1.8% 0.0% 0.5% 0.1% 7.9% 34.7% 8.6% 0.2% 2.6% 0.0% 0.0% 0.8% 0.0% 0.0% 1.4% 48.3% 51.4% 52.6% (4.2%) South Miami Pension Plan 41 220 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 General Employees Tier 2 G. Preliminary Minimum Required Contribution 1. Total normal cost 2. Amortization of unfunded liability 3. Interest adjustment 4. Total preliminary required contribution H. Minimum Required Contribution (F.S ., 112.66 (13)) (Greater of G.1. and G.4.) I. Contribution Sources for Fiscal Year Ending September 30, 2022 1. City 2. Member 3. State 4. Total minimum funding requirement J. Actuarial Present Value of Vested Accrued Benefits 1. Retired, terminated vested, beneficiaries and disabled receiving benefits excluding DROPs 2. DROP participants 3. Terminated vested participants entitled to future benefits and miscellaneous 4. Active participants entitled to future benefits 5. Total actuarial present value of vested accrued benefits K. Unfunded Actuarial Present Value of Vested Accrued Benefits (J. -D., not less than zero) L. Vested Benefit Security Ratio (D. + J.) $ $ $ $ $ $ $ $ Cost Data 99,322 (3,763) 3,398 98,957 99,322 61,386 37,936 N/A 99,322 0 0 28,140 221,065 249,205 0 260.9% %of Payroll 7.9% (0.3%) 0.3% 7.8% 7.9% 4.9% 3.0% N/A 7.9% 0.0% 0.0% 2.2% 17.5% 19.7% 0.0% N/A Sou t h M i ami Pension Plan 42 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 General Employees Tier 2 G. Preliminary Minimum Required Contribution 1. Total normal cost 2. Amortization of unfunded liability 3. Interest adjustment 4. Total preliminary required contribution H. Minimum Required Contribution (F.S., 112.66 (13)) (Greater of G.1. and G.4.) I. Contribution Sources for Fiscal Year Ending September 30, 2022 1. City 2. Member 3. State 4. Total minimum funding requirement J. Actuarial Present Value of Vested Accrued Benefits 1. Retired, terminated vested, beneficiaries and disabled receiving benefits excluding DROPs 2. DROP participants 3. Terminated vested participants entitled to future benefits and miscellaneous 4. Active participants entitled to future benefits 5. Total actuarial present value of vested accrued benefits K. Unfunded Actuarial Present Value of Vested Accrued Benefits (J. -D., not less than zero) L. Vested Benefit Security Ratio (D. + J.) $ $ $ $ $ $ $ $ Cost Data 99,322 (3,763) 3,398 98,957 99,322 61,386 37,936 N/A 0 0 28,140 221,065 249,205 o 260.9% %of Payroll 7.9% (0.3%) 0.3% 7.8% 7.9% 4.9% 3.0% N/A 7.9% 0.0% 0.0% 2.2% 17.5% 19.7% 0.0% N/A South Miami Pension Plan 42 221 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 A. Participant Data Summary 1. Active employees 2. Terminated vested 3. Receiving benefits (excluding DROPs) 4. DROP participants 5. Annual payroll of active employees 8. Total Normal Costs 1. Age retirement benefits 2. Termination benefits 3. Death benefits 4. Disability benefits 5. Estimated administrative expenses 6. Total annual normal costs C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees 2. Termination benefits active employees 3. Death benefits active employees 4. Disability benefits active employees 5. Retired or terminated vested participants · receiving benefits excluding DROP participants 6. DROP participants 7. Terminated vested participants entitled to future benefits 8. Deceased participants whose beneficiaries are receiving benefits 9. Disabled participants receiving benefits 10. Miscellaneous liability 11. Total actuarial accrued liability D. Market Value of Assets (Table V) E. Smoothed Value of Assets (Table V) F. Unfunded Actuarial Accrued Liability (C. -E.) $ $ $ $ $ $ $ $ Cost %of Data Payroll 11 N/A 0 N/A 3 N/A 0 N/A 1,298,985 100.0% 125,726 9.7% 8,024 0.6% 673 0.1% 7,485 0.6% 7,697 0.6% 149,605 11.5% 2,396,028 184.5% 462,976 35.6% 7,023 0.5% 90,912 7.0% 857,450 66.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 3,814,389 293.6% 2,675,349 206.0% 2,726,874 209.9% 1,087,515 83.7% South Miami Pension Plan 43 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 A. Participant Data Summary 1. Active employees 2. Terminated vested 3. Receiving benefits (excluding DROPs) 4. DROP participants 5. Annual payroll of active employees B. Total Normal Costs 1. Age retirement benefits 2. Termination benefits 3. Death benefits 4. Disability benefits 5. Estimated administrative expenses 6. Total annual normal costs C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees 2. Termination benefits active employees 3. Death benefits active employees 4. Disability benefits active employees 5. Retired or terminated vested participants receiving benefits excluding DROP participants 6. DROP participants 7. Terminated vested participants entitled to future benefits 8. Deceased participants whose beneficiaries are receiving benefits 9. Disabled participants receiving benefits 10. Miscellaneous liability 11. Total actuarial accrued liability D. Market Value of Assets (Table V) E. Smoothed Value of Assets (Table V) F. Unfunded Actuarial Accrued Liability (c. -E.) $ $ $ $ $ $ $ $ Cost %of Data Payroll 11 N/A 0 N/A 3 N/A 0 N/A 1,298,985 100.0% 125,726 9.7% 8,024 0.6% 673 0.1% 7,485 0.6% 7,697 0.6% 149,605 11.5% 2,396,028 184.5% 462,976 35.6% 7,023 0.5% 90,912 7.0% 857,450 66.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 3,814,389 293.6% 2,675,349 206.0% 2,726,874 209.9% 1,087,515 83.7% South Miami Pension Plan 43 222 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 AMSC Cost %of Data Payroll G. Preliminary Minimum Required Contribution 1. Total normal cost $ 149,605 11.5% 2. Amortization of unfunded liability 93,793 7.2% 3. Interest adjustment 8,656 0.7% 4. Total preliminary required contribution $ 252,054 19.4% H. Minimum Required Contribution (F.S., 112.66 (13)) (Greater of G.1. and G.4.) $ 252,054 19.4% I. Contribution Sources for Fiscal Vear Ending September 30, 2022 1. City $ 161,125 12.4% 2. Member 90,929 7.0% 3. State N/A N/A 4. Total minimum funding requirement $ 252,054 19.4% J. Actuarial Present Value of Vested Accrued Benefits 1. Retired, terminated vested, beneficiaries and disabled receiving benefits excluding DROPs $ 857,450 66.0% 2. DROP participants 0 0.0% 3. Terminated vested participants entitled to future benefits and miscellaneous 0 0.0% 4. Active participants entitled to future benefits 1,696,329 130.6% 5. Total actuarial present value of vested accrued benefits $ 2,553,779 196.6% K. Unfunded Actuarial Present Value of Vested Accrued Benefits (J. -D., not less than zero) $ 0 0.0% L. Vested Benefit Security Ratio (D. + J.) 104.8% N/A South Miami Pension Plan 44 Table! (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 AMSC Cost %of Data Payroll G. Preliminary Minimum Required Contribution 1. Total normal cost $ 149,605 11.5% 2. Amortization of unfunded liability 93,793 7.2% 3. Interest adjustment 8,656 0.7% 4 . Total preliminary required contribution $ 252,054 19.4% H. Minimum Required Contribution (F.S., 112.66 (13)) (Greater of G.1. and G.4.) $ 252,054 19.4% I. Contribution Sources for Fiscal Year Ending September 30,2022 1. City $ 161,125 12.4% 2. Member 90,929 7.0% 3. State N/A N/A 4. Total minimum funding requirement $ 252,054 19.4% J. Actuarial Present Value of Vested Accrued Benefits 1. Retired , terminated vested, beneficiaries and disabled receiving benefits excluding DROPs $ 857,450 66.0% 2. DROP participants 0 0.0% 3. Terminated vested participants entitled to future benefits and miscellaneous 0 0.0% 4. Active participants entitled to future benefits 1,696,329 130.6% 5. Total actuarial present value of vested accrued benefits $ 2,553,779 196.6% K. Unfunded Actuarial Present Value of Vested Accrued Benefits (J. -D., not less than zero) $ 0 0.0% L. Vested Benefit Security Ratio (D. -:-J.) 104.8% N/A South Miami Pension Plan 44 223 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 Police Officers Cost %of Data Payroll A . Participant Data Summary 1. Active employees 45 N/A 2. Terminated vested 5 N/A 3. Receiving benefits (excluding DROPs) 22 N/A 4. DROP participants 3 N/A 5. Annual payroll of active employees $ 3,281,847 100.0% B. Total Normal Costs 1. Age retirement benefits $ 454,233 13 .8% 2. Termination benefits 78,055 2.4% 3. Death benefits 2,277 0.1% 4 . Disability benefits 17,576 0.5% 5. Estimated administrative expenses 82,497 2.5% 6. Total annual normal costs $ 634,638 19.3% C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees $ 11,771,263 358.7% 2. Termination benefits active employees 474,397 14.5% 3. Death benefits active employees 16,738 0.5% 4. Disability benefits active employees 177,952 5.4% 5. Retired or terminated vested participants receiving benefits excluding DROP participants 11,551,649 352.0% 6. DROP participants 2,676,496 81.6% 7. Terminated vested participants entitled to future benefits 673,430 20.5% 8. Deceased participants whose beneficiaries are receiving benefits 0 0.0% 9. Disabled participants receiving benefits 0 0.0% 10. Miscellaneous liability 64,748 2.0% 11. Total actuarial accrued liability $ 27,406,673 835.1% D. Market Value of Assets (Table V) $ 27,678,257 843.4% E. Smoothed Value of Assets (Table V) $ 28,113,521 856.6% F. Unfunded Actuarial Accrued Liability (C. -E.) $ (706,848) (21.5%) South M ia mi Pension Pla n 45 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 Police Officers Cost %of Data Payroll A. Participant Data Summary 1. Active employees 45 N/A 2. Terminated vested 5 N/A 3. Receiving benefits (excluding DROPs) 22 N/A 4 . DROP participants 3 N/A 5. Annual payroll of active employees $ 3,281,847 100.0% B. Total Normal Costs 1. Age retirement benefits $ 454,233 13.8% 2. Termination benefits 78,055 2.4% 3. Death benefits 2,277 0.1% 4. Disability benefits 17,576 0.5% 5. Estimated administrative expenses 82,497 2.5% 6. Total annual normal costs $ 634,638 19 .3% C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees $ 11,771,263 358.7% 2. Termination benefits active employees 474,397 14.5% 3. Death benefits active employees 16,738 0.5% 4. Disability benefits active employees 177,952 5.4% 5. Retired or terminated vested participants receiving benefits excluding DROP participants 11,551,649 352.0% 6. DROP participants 2,676,496 81.6% 7. Terminated vested participants entitled to future benefits 673,430 20 .5% 8. Deceased participants whose beneficiaries are receiving benefits 0 0.0% 9. Disabled participants receiving benefits 0 0.0% 10. Miscellaneous liability 64,748 2.0% 11. Total actuarial accrued liability $ 27,406,673 835.1% D. Market Value of Assets (Table V) $ 27,678 ,257 843.4% E. Smoothed Value of Assets (Table V) $ 28,113,521 856.6% F. Unfunded Actuarial Accrued Liability (c. -E.) $ (706,848) (21.5%) So uth M iami Pensi o n Pl an 45 224 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 Police Officers Cost %of Data Payroll G. Preliminary Minimum Required Contribution 1. Total normal cost $ 634,638 19.3% 2. Amortization of unfunded liability (59,985) (1.8%) 3. Interest adjustment 21,846 0.7% 4. Total preliminary required contribution $ 596,499 18.2% H. Minimum Required Contribution (F.S., 112.66 (13)) (Greater of G.1. and G.4.) $ 634,638 19.3% I. Expected Payroll of Active Employees for Fiscal Year Ending 2022 (A.5. X 1.007) $ 3,304,820 100.7% J. Contribution Sources for Fiscal Year Ending September 30, 2022 (% of projected payroll of active employees for fiscal year ending 2022) 1. City $ 311,990 9.4% 2. Member 247,862 7.5% 3. State 79,228 2.4% 4. Total required contribution $ 639,080 19.3% K. Actuarial Present Value of Vested Accrued Benefits 1. Retired, terminated vested, beneficiaries and disabled receiving benefits excluding DROPs $ 11,551,649 352.0% 2. DROP participants 2,676,496 81.6% 3. Terminated vested participants entitled to future benefits and miscellaneous 738,178 22.5% 4. Active participants entitled to future benefits 7,889,496 240.4% 5. Total actuarial present value of vested accrued benefits $ 22,855,819 696.4% L. Unfunded Actuarial Present Value of Vested Accrued Benefits (K. -D., not less than zero) $ 0 0.0% M. Vested Benefit Security Ratio (D. 7 K.) 121.1% N/A South Miami Pension Plan 46 Table! (Cont'd) Summary of Retirement Plan Costs as of October I, 2020 Police Officers Cost %of Data Payroll G. Preliminary Minimum Required Contribution 1. Total normal cost $ 634,638 19.3% 2. Amortization of unfunded liability (59,985) (1.8%) 3. Interest adjustment 21,846 0.7% 4. Total preliminary required contribution $ 596,499 18.2% H. Minimum Required Contribution (F.S., 112.66 (13)) (Greater of G.1. and G.4.) $ 634,638 19.3% I. Expected Payroll of Active Employees for Fiscal Year Ending 2022 (A.5 . x 1.007) $ 3,304,820 100.7% J. Contribution Sources for Fiscal Year Ending September 30,2022 (% of projected payroll of active employees for fiscal year ending 2022) 1. City $ 311,990 9.4% 2. Member 247,862 7.5% 3. State 79,228 2.4% 4. Total required contribution $ 639,080 19.3% K. Actuarial Present Value of Vested Accrued Benefits 1. Retired, terminated vested, beneficiaries and disabled receiving benefits excluding DROPs $ 11,551,649 352.0% 2. DROP participants 2,676,496 81.6% 3. Terminated vested participants entitled to future benefits and miscellaneous 738,178 22.5% 4. Active participants entitled to future benefits 7,889,496 240.4% 5. Total actuarial present value of vested accrued benefits $ 22,855,819 696.4% L. Unfunded Actuarial Present Value of Vested Accrued Benefits (K. - D., not less than zero) $ 0 0.0% M. Vested Benefit Security Ratio (D . -:-K.) 121.1% N/A South Miami Pension Plan 46 225 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 All Participants Cost %of Data Payroll A. Participant Data Summary 1. Active employees 98 N/A 2. Terminated vested 11 N/A 3. Receiving benefits (excluding DROPs) so N/A 4. DROP participants 7 N/A 5. Annual payroll of active employees $ 6,753,066 100.0% B. Total Normal Costs 1. Age retirement benefits $ 713,707 10.6% 2. Termination benefits 128,789 1.9% 3. Death benefits 4,202 0.1% 4. Disability benefits 37,089 0.5% 5. Estimated administrative expenses 143,452 2.1% 6. Total annual normal costs $ 1,027,239 15.2% C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees $ 18,640,710 276.0% 2. Termination benefits active employees 1,184,750 17.5% 3. Death benefits active employees 41,101 0.6% 4. Disability benefits active employees 513,792 7.6% 5. Retired or terminated vested participants receiving benefits excluding DROP participants 19,366,481 286.8% 6. DROP participants 4,037,440 59.8% 7. Terminated vested participants entitled to future benefits 1,507,846 22.3% 8. Deceased participants whose beneficiaries are receiving benefits 167,205 2.5% 9. Disabled participants receiving benefits 0 0.0% 10. Miscellaneous liability 166,125 2.5% 11. Total actuarial accrued liability $ 45,625,450 675.6% D. Market Value of Assets (Table V) $ 48,130,665 712.7% E. Smoothed Value of Assets (Table V) $ 48,823,503 723 .0% F. Unfunded Actuarial Accrued Liability (C. -E.) $ (3,198,053) (47 .4%) South Miami Pension Plan 47 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 All Participants Cost %of Data Payroll A. Participant Data Summary 1. Active employees 98 N/A 2. Terminated vested 11 N/A 3. Receiving benefits (excluding DROPs) 50 N/A 4. DROP participants 7 N/A 5. Annual payroll of active employees $ 6,753,066 100.0% B. Total Normal Costs 1. Age retirement benefits $ 713,707 10.6% 2. Termination benefits 128,789 1.9% 3. Death benefits 4,202 0.1% 4. Disability benefits 37,089 0.5% 5. Estimated administrative expenses 143,452 2.1% 6. Total annual normal costs $ 1,027,239 15.2% C. Total Actuarial Accrued Liability 1. Age retirement benefits active employees $ 18,640,710 276.0% 2. Termination benefits active employees 1,184,750 17.5% 3. Death benefits active employees 41,101 0.6% 4. Disability benefits active employees 513,792 7.6% 5. Retired or terminated vested participants receiving benefits excluding DROP participants 19,366,481 286.8% 6. DROP participants 4,037,440 59.8% 7. Terminated vested participants entitled to future benefits 1,507,846 22.3% 8. Deceased participants whose beneficiaries are receiving benefits 167,205 2.5% 9. Disabled participants receiving benefits 0 0.0% 10. Miscellaneous liability 166,125 2.5% 11. Total actuarial accrued liability $ 45,625,450 675.6% D. Market Value of Assets (Table V) $ 48,130,665 712.7% E. Smoothed Value of Assets (Table V) $ 48,823,503 723.0% F. Unfunded Actuarial Accrued Liability (c. -E.) $ (3,198,053) (47.4%) South Miami Pension Plan 47 226 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 All Participants Cost %of Data Payroll G. Preliminary Minimum Required Contribution 1. Total normal cost $ 1,027,239 15.2% 2. Amortization of unfunded liability (300,990) (4.5%) 3. Interest adjustment 27,237 0.4% 4. Total preliminary required contribution $ 753,486 11.2% H. Minimum Required Contribution (F.S., 112.66 (13)) $ 1,129,688 16.7% I. Expected Payroll of Active Employees for Fiscal Year Ending 2022 ($907,685 X 1.000 + $1,264,549 X 1.000 + $1,298,985 X 1.000 + $3,281,847 X 1.007) $ 6,776,039 100.3% J. Contribution Sources for Fiscal Year Ending September 30, 2022 (% of projected payroll of active employees for fiscal year ending 2022) 1. City $ 614,637 9.1% 2. Member 440,265 6.5% 3. State 79,228 1.2% 4. Total required contribution $ 1,134,130 16.7% K. Actuarial Present Value of Vested Accrued Benefits 1. Retired, terminated vested, beneficiaries and disabled receiving benefits excluding DROPs $ 19,533,686 289.3% 2. DROP participants 4,037,440 59.8% 3. Terminated vested participants entitled to future benefits and miscellaneous 1,673,971 24.8% 4. Active participants entitled to future benefits 12,868,893 190.6% 5. Total actuarial present value of vested accrued benefits $ 38,113,990 564.4% L. Unfunded Actuarial Present Value of Vested Accrued Benefits (K. -D., not less than zero) $ 0 0.0% M. Vested Benefit Security Ratio (D. -a-K.) 126.3% N/A South Miami Pension Plan 48 Table I (Cont'd) Summary of Retirement Plan Costs as of October 1, 2020 All Participants Cost %of Data Payroll G. Preliminary Minimum Required Contribution 1. Total normal cost $ 1,027,239 15.2% 2. Amortization of unfunded liability (300,990) (4.5%) 3. Interest adjustment 27,237 0.4% 4. Total preliminary required contribution $ 753,486 11.2% H. Minimum Required Contribution (F.S., 112.66 (13)) $ 1,129,688 16.7% I. Expected Payroll of Active Employees for Fiscal Year Ending 2022 ($907,685 x 1.000 + $1,264,549 x 1.000 + $1,298,985 x 1.000 + $3,281,847 x 1.007) $ 6,776,039 100.3% J . Contribution Sources for Fiscal Year Ending September 30, 2022 (% of projected payroll of active employees for fiscal year ending 2022) 1. City $ 614,637 9.1% 2. Member 440,265 6.5% 3. State 79,228 1.2% 4. Total required contribution $ 1,134,130 16.7% K. Actuarial Present Value of Vested Accrued Benefits 1. Retired, terminated vested, beneficiaries and disabled receiving benefits excluding DROPs $ 19,533,686 289.3% 2. DROP participants 4,037,440 59.8% 3. Terminated vested participants entitled to future benefits and miscellaneous 1,673,971 24.8% 4. Active participants entitled to future benefits 12,868,893 190.6% 5. Total actuarial present value of vested accrued benefits $ 38,113,990 564.4% L. Unfunded Actuarial Present Value of Vested Accrued Benefits (K . - D., not less than zero) $ 0 0.0% M. Vested Benefit Security Ratio (D. 7 K.) 126.3% N/A South Miami Pension Plan 48 227 August 31, 2021 Ms. Edemir K. Estrada Pension Administrator Gabriel, Roeder, Smith & Company One East Broward Blvd. Suite 505 Fort Lauderdale, Florida 33301-1804 Re: South Miami Pension Plan Actuarial Impact Statement Dear Edemir: P: 954.527.1616 F: 954.525.0083 I www.g~cOn$ulting.com As requested, we are pleased to enclose twelve {12) copies of our Actuarial Impact Statement as of October 1, 2020 for the proposed Ordinance under the South Miami Pension Plan {Plan) with the State of Florida (copy enclosed) prior to second reading. Background Currently, the Plan provides Administration Management Service Class (AMSC) members the following provisions: ► Normal Retirement eligibility upon the earlier of: (a) Attainment of age sixty (60) and completion of five (5) years of Credited Service (b) Completion of thirty-three (33) years of Credited Service regardless of age ► Early (reduced) Retirement eligibility is attainment of age fifty-five {55) and completion of ten (10) years of Credited Service ► Final Average Compensation is the average of the highest eight (8) years of Credited Service ► Vesting-100% vesting upon completion of five (5) years of Credited Service. AMSC members who have completed three (3) years of Credited Service as of June 18, 2019 are 100% vested Ooe East Bcowacd Boole,acd I Su;te 50S I Ft. Laodecdal,, Flo,;d, 33301-18011. August 31,2021 Ms. Edemir K. Estrada Pension Administrator Gabriel, Roeder, Smith & Company One East Broward Blvd. Suite 505 Fort Lauderdale, Florida 33301-1804 Re: South Miami Pension Plan Actuarial Impact Statement Dear Edemir: P: 954.527.1616 F: 954.525.0083 I www.gp.;con$ulting.co m As requested, we are pleased to enclose twelve (12) copies of our Actuarial Impact Statement as of October 1, 2020 for the proposed Ordinance under the South Miami Pension Plan (Plan) with the State of Florida (copy enclosed) prior to second reading. Background Currently, the Plan provides Administration Management Service Class (AMSC) members the following provisions: ~ Normal Retirement eligibility upon the earlier of: (a) Attainment of age sixty (60) and completion of five (5) years of Credited Service (b) Completion of thirty-three (33) years of Credited Service regardless of age ~ Early (reduced) Retirement eligibility is attainment of age fifty-five (55) and completion of ten (10) years of Credited Service ~ Final Average Compensation is the average of the highest eight (8) years of Credited Service ~ Vesting -100% vesting upon completion offive (5) years of Credited Service . AMSC members who have completed three (3) years of Credited Service as of June 18, 2019 are 100% vested 228 Ms. Edemir K. Estrada August 31, 2021 Page Two Proposed Ordinance-The proposed Ordinance provides AMSC members with following: ► Normal Retirement eligibility upon the earliest of: (a) Attainment of age sixty (60) and completion of ten (10) years of Credited Service (attainment of age sixty (60) and completion of five (5) years of Credited Service if an AMSC member prior to the adoption of the proposed Ordinance) (b) Attainment of age fifty-five (55) and completion of twenty (20) years of Credited Service (c) Completion of thirty-three (33) years of Credited Service regardless of age ► Eliminate Early (reduced) Retirement eligibility ► Final Average Compensation is the average of the highest five (5) years of Credited Service ► Vesting -100% vesting upon completion of ten (10) years of Credited Service . AMSC members on the date of adoption of the Ordinance are 100% vested immediately. Cost-The total impact of the proposed Ordinance results in an expected increase in the first year Net City Annual Required Contribution of $36,550 {0.5% as a percentage of expected covered payroll -$6,776,039). Filing Requirements-We have prepared the Actuarial Impact Statement for filing with the State of Florida. Please note that this Statement must be signed and dated on behalf of the Board of Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated Actuarial Impact Statement are generally required to be filed with the State at the 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 We understand the State requires funding any increases in costs no later than the fiscal year next following the effective date of the Ordinance. Please forward a copy of the Ordinance upon passage at second reading to update our files . Ms. Edemir K. Estrada August 31,2021 Page Two Proposed Ordinance -The proposed Ordinance provides AMSC members with following: ~ Normal Retirement eligibility upon the earliest of: (a) Attainment of age sixty (60) and completion of ten (10) years of Credited Service (attainment of age sixty (60) and completion of five (5) years of Credited Service if an AMSC member prior to the adoption of the proposed Ordinance) (b) Attainment of age fifty-five (55) and completion of twenty (20) years of Credited Service (c) Completion of thirty-three (33) years of Credited Service regardless of age ~ Eliminate Early (reduced) Retirement eligibility ~ Final Average Compensation is the average of the highest five (5) years of Credited Service ~ Vesting -100% vesting upon completion of ten (10) years of Credited Service. AMSC members on the date of adoption of the Ordinance are 100% vested immediately. Cost -The total impact of the proposed Ordinance results in an expected increase in the first year Net City Annual Required Contribution of $36,550 (0.5% as a percentage of expected covered payroll -$6,776,039). Filing Requirements -We have prepared the Actuarial Impact Statement for filing with the State of Florida. Please note that this Statement must be Signed and dated on behalf of the Board of Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated Actuarial Impact Statement are generally required to be filed with the State at the 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 We understand the State requires funding any increases in costs no later than the fiscal year next following the effective date of the Ordinance. Please forward a copy of the Ordinance upon passage at second reading to update our files. 229 Ms. Edemir K. Estrada August 31, 2021 Page Three Actuarial assumptions and methods, Plan provisions, financial data and member census data - The actuarial assumptions and methods, financial data and member census data employed for purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2020 Actuarial Valuation with the following exception: AMSC -Retirement Rates Age Valuation Proposed Ordinance Less than 33 years of Credited Service 55-59 10% 25% 60-61 25% 25% 62 -66 35% 35% 67 & above 100% 100% With 33 years or more years of Credited Service Under 62 25% 25% 62 -66 35% 35% 67 & above 100% 100% The Plan provisions employed for purposes of our Actuarial Impact Statement are the same Plan provisions utilized in the October 1, 2020 Actuarial Valuation with the exception of the proposed changes described above. This Actuarial Impact Statement only reflects experience through October 1, 2020. It does not reflect the recent and still developing impact of COVID-19, which may significantly impact the demographic and economic experience seen in future actuarial valuations. Risk Assessment-Risk assessment may include scenario tests, sensitivity, or stress tests, stochastic modeling, and a comparison of the present value of benefits at low-risk discount rates. We are prepared to perform such assessment to aid in the decision-making process. Please refer to the October 1, 2020 Actuarial Valuation Report dated March 16, 2021 for additional discussion regarding the risks associated with measuring the liability and the minimum funding payment. Other Considerations-Under Governmental Accounting Standards Board (GASB) Statement Number 68, we understand the full cost of benefit changes must be recognized immediately in pension expense (accounting not funding). Therefore, the pension expense is expected to increase the first year and then is expected to decrease to a lower level in fiscal years following initial recognition of the plan change. Ms. Edemir K. Estrada August 31,2021 Page Three Actuarial assumptions and methods, Plan provisions, financial data and member census data - The actuarial assumptions and methods, financial data and member census data employed for purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2020 Actuarial Valuation with the following exception: AMSC -Retirement Rates -------------------- Age Valuation Proposed Ordinance Less than 33 years of Credited Service 55 -59 10% 25% 60 -61 25% 25% 62 -66 35% 35% 67 & above 100% 100% With 33 years or more years of Credited Service Under 62 25% 25% 62 -66 35% 35% 67 & above 100% 100% The Plan provisions employed for purposes of our Actuarial Impact Statement are the same Plan provisions utilized in the October 1, 2020 Actuarial Valuation with the exception of the proposed changes described above. This Actuarial Impact Statement only reflects experience through October 1,2020. It does not reflect the recent and still developing impact of COVID-19, which may significantly impact the demographic and economic experience seen in future actuarial valuations. Risk Assessment -Risk assessment may include scenario tests, sensitivity, or stress tests, stochastic modeling, and a comparison of the present value of benefits at low-risk discount rates. We are prepared to perform such assessment to aid in the decision-making process. Please refer to the October 1, 2020 Actuarial Valuation Report dated March 16,2021 for additional discussion regarding the risks associated with measuring the liability and the minimum funding payment. Other Considerations -Under Governmental Accounting Standards Board (GASB) Statement Number 68, we understand the full cost of benefit changes must be recognized immediately in pension expense (accounting not funding). Therefore, the pension expense is expected to increase the first year and then is expected to decrease to a lower level in fiscal years following initial recognition of the plan change. 230 Ms. Edemir K. Estrada August 31, 2021 Page Four This Actuarial Impact Statement is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the benefit changes nor in opposition to the benefit changes. If all actuarial assumptions are met and if all current and future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, future contributions are expected to remain relatively stable as a percent of payroll and the funded status is expected to improve. Plan minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act and Police Officers Retirement Chapter 185 with normal cost determined as a level percent of covered payroll and a level percent amortization payment using an initial amortization period of 25 years. The Unfunded Actuarial Accrued Liability (UAAL) may not be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing the need for or the amount of future contributions. The UAAL would be different if it reflected the market value of assets rather than the smoothed value of assets. These calculations are based upon assumptions regarding future events. However, the Plan's long term costs will be determined by actual future events, which may differ materially from the assumptions made. These calculations are also based upon present and proposed Plan provisions that are outlined or referenced in this Actuarial Impact Statement. If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described or referenced, important Plan provisions relevant to this Actuarial Impact Statement are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Impact Statement. If you have reason to believe that the information provided in this Actuarial Impact Statement is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period) and changes in Plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements. Ms. Edemir K. Estrada August 31, 2021 Page Four This Actuarial Impact Statement is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the benefit changes nor in opposition to the benefit changes. If all actuarial assumptions are met and if all current and future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, future contributions are expected to remain relatively stable as a percent of payroll and the funded status is expected to improve. Plan minimum required contributions are determined in compliance with the requirements ofthe Florida Protection of Public Employee Retirement Benefits Act and Police Officers Retirement Chapter 185 with normal cost determined as a level percent of covered payroll and a level percent amortization payment using an initial amortization period of 25 years . The Unfunded Actuarial Accrued Liability (UAAL) may not be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing the need for or the amount of future contributions. The UAAL would be different if it reflected the market value of assets rather than the smoothed value of assets. These calculations are based upon assumptions regarding future events. However, the Plan's long term costs will be determined by actual future events, which may differ materially from the assumptions made. These calculations are also based upon present and proposed Plan provisions that are outlined or referenced in this Actuarial Impact Statement. If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described or referenced, important Plan provisions relevant to this Actuarial Impact Statement are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Impact Statement. If you have reason to believe that the information provided in this Actuarial Impact Statement is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period) and changes in Plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements. 231 Ms. Edemir K. Estrada August 31, 2021 Page Five This Actuarial Impact Statement should not be relied upon for any purpose other than the purpose described in the primary communication . Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This report was prepared using ProVal's valuation model, a software product of Winklevoss Technologies. We are relying on the Pro Val model. We performed tests of the Pro Val model with this assignment and made a reasonable attempt to understand the developer's intended purpose of, general operation of, major sensitivities and dependencies within, and key strengths and limitations of the ProVal model. In our professional judgment, the ProVal valuation model has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. This Actuarial Impact Statement has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Actuarial Impact Statement may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent of the Plan sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, fr+ ,&vu_aad Jennifer M. Borregard, EA, MAAA, FCA Consultant and Actuary Enclosures cc: Mr. Alfredo Rivero I Shelly L. Jones, ASA, EA, MAAA, FCA Consultant and Actuary Ms. Edemir K. Estrada August 31, 2021 Page Five This Actuarial Impact Statement should not be relied upon for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This report was prepared using ProVal's valuation model, a software product of Winklevoss Technologies. We are relying on the ProVal model. We performed tests of the ProVal model with this assignment and made a reasonable attempt to understand the developer's intended purpose of, general operation of, major sensitivities and dependencies within, and key strengths and limitations of the ProVal model. In our professional judgment, the ProVal valuation model has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. This Actuarial Impact Statement has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Actuarial Impact Statement may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent of the Plan sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, r+ &vu-~~ Jennifer M. Borregard, EA, MAAA, FCA Consultant and Actuary Enclosures cc: Mr. Alfredo Riverol Shelly L. Jones, ASA, EA, MAAA, FCA Consultant and Actuary 232 ORDINANCE NO. _____ _ An Ordinance amending the South Miami Pension Plan; by Amending Section 16-12, "Definitions"; by Amending Section 16-14, "Pension benefits and retirement dates"; and by Amending Section 16-17, "Termination"; and providing for Severability; Providing for Inclusion in the Code; Providing for a Repealer; and Providing for an Effective Date. Rev.8 .19.21 WHEREAS, the City established the South Miami Pension Plan ("Plan"} for City employees in 1965, and has amended the Plan on numerous occasions; and WHEREAS, the City adopted Ordinance 23-19-2336 on June 18, 2019, implementing several changes to the Plan, including a reduction in the normal retirement age for AMSC members from age 65 with three years of service to age 60 with five years of service; however, there was no change to the early retirement date of age 55 with ten years of service; and WHEREAS, The Plan currently differentiates in certain benefits provided to members in different employee groups and membership tiers; and WHEREAS, the City has determined that it is in the best interest of employees to provide greater consistency in the benefits provided to members in different employee groups and membership tiers; and WHEREAS, the City is recommending a change in the vesting period for Administrative Management Service Class ("AMSC"} members hired in the future from five years to ten years of continuous service, consistent with the vesting period for First Tier and Second Tier members; and 01529379-2 1 60 ORDINANCE NO. _____ _ An Ordinance amending the South Miami Pension Plan; by Amending Section 16-12, "Definitions"; by Amending Section 16-14, "Pension benefits and retirement dates"; and by Amending Section 16-17, "Termination"; and providing for Severability; Providing for Inclusion in the Code; Providing for a Repealer; and Providing for an Effective Date. Rev.8.19.21 WHEREAS, the City established the South Miami Pension Plan ("Plan") for City employees in 1965, and has amended the Plan on numerous occasions; and WHEREAS, the City adopted Ordinance 23-19-2336 on June 18, 2019, implementing several changes to the Plan, including a reduction in the normal retirement age for AMSC members from age 65 with three years of service to age 60 with five years of service; however, there was no change to the early retirement date of age 55 with ten years of service; and WHEREAS, The Plan currently differentiates in certain benefits provided to members in different employee groups and membership tiers; and WHEREAS, the City has determined that it is in the best interest of employees to provide greater consistency in the benefits provided to members in different employee groups and membership tiers; and WHEREAS, the City is recommending a change in the vesting period for Administrative Management Service Class ("AMSC") members hired in the future from five years to ten years of continuous service, consistent with the vesting period for First Tier and Second Tier members; and 01529379-2 1 60 233 Rev .8.19 .21 Whereas, the City is recommending a change in the final average compensation period for AMSC members from eight years to five years, consistent with the final average compensation period for police officers; and WHEREAS, the City is recommending that the option of retiring early upon reaching age 55 with ten years of service and receiving a reduced early retirement benefit be eliminated for AMSC members, consistent with Second Tier members; and WHEREAS, the City is recommending that the normal retirement date for AMSC members be revised to include retirement at age 55 with twenty years of service; and WHEREAS, the City Commission has received and reviewed actuarial impact statements related to such amendments; and WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the South Miami Pension Plan in order to continue to meet the City's objectives of attracting and retaining the best talent as City employees, and managing employee turnover; NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section 1: The foregoing recitals are hereby ratified and incorporated by reference as iffully set forth herein and as the legislative intent of this Ordinance . Section 2: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-12, "Definitions" as follows: * * * 01529379-2 2 61 Rev.8.19.21 Whereas, the City is recommending a change in the final average compensation period for AMSC members from eight years to five years, consistent with the final average compensation period for police officers; and WHEREAS, the City is recommending that the option of retiring early upon reaching age 55 with ten years of service and receiving a reduced early retirement benefit be eliminated for AMSC members, consistent with Second Tier members; and WHEREAS, the City is recommending that the normal retirement date for AMSC members be revised to include retirement at age 55 with twenty years of service; and WHEREAS, the City Commission has received and reviewed actuarial impact statements related to such amendments; and WHEREAS, the City Commission deems it to be in the public interest to provide these changes to the South Miami Pension Plan in order to continue to meet the City's objectives of attracting and retaining the best talent as City employees, and managing employee turnover; NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section 1 : The foregoing recitals are hereby ratified and incorporated by reference as iffully set forth herein and as the legislative intent of this Ordinance. Section 2: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-12, "Definitions" as follows: * * * 01529379-2 2 61 234 Rev .8.19 .21 Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner . For general employees, except for Second Tier Members and AMSC 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 definition of final 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) five (5) vears of credited service. In the event an AMSC Member has less than eight (8) five fil 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 City of 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 of final 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 01529379-2 3 62 Rev.B.19.21 Final average compensation shall mean the participant's annual compensation, as determined by the employer, acting in a uniform and nondiscriminatory manner. For general employees, except for Second Tier Members and AMSC 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 definition of final 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) five (5) years of credited service. In the event an AMSC Member has less than eight (8) five 1.2l 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 City of 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 of final 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 01529379-2 3 62 235 Rev .8.19.21 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: Chapter 16, Article 11, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-14, "Pension benefits and retirement date" as follows : (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows : * * * (3) AMSC Members. The normal retirement date for AMSC Members hired before (effe ct iv e date of t his Or d in ance] sh all be th e earlier of (a) age 60 and completion of five (5) years of credited service; or (b) age 55 and completion of twenty (20l years of credited service; or (ef) completion of th irty-three {33) years of credited service . The normal retirement date for AMSC Members hired on or aft er (effective date of this Ordinance] shall be the earlier of (al age 60 and completion of ten (10l years of cre d ite d se rvi ce; or (bl age 55 and completion of twe nty (20l years of credited service ; or (cl completion of thirty-three (33l years of credited service. (A) Early retirement. (1) A general employee participant as of September 30, 2011, anel 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 01 529379-2 4 63 Rev.8.19.21 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: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-14, "Pension benefits and retirement date" as follows : (a) Retirement date. The normal retirement date with full unreduced pension benefits for a participant, shall be as follows : * * * (3) AMSC Members. The normal retirement date for AMSC Members hired before [effective date of this Ordin anc e] shall be the earlier of (a) age 60 and completion of five (5) years of credited service; or (b) age 55 and completion of twenty (20) years of credited service; or (-Sf) completion of thirty-three (33) years of credited service . The normal retirement date for AMSC Members hired on or afte r [effective date of this Ordinance] shall be the earlie r of (a ) age 60 and com pletion of ten (10 ) ye ars of cr edited service ; or (bl age 55 and co mp letion of twe nty (20 ) years of credited service; or (c) completion of thirty-three (33) years of credited service. (A) Early retirement. (1) A general employee participant as of September 30, 2011, anel l\MSC Particil3ants may elect an early retirement date which may be the first day of any calendar month co i ncident with, or subsequent to the participant's fifty-fifth (55th) birthday and 01529379-2 4 63 236 Rev.8 .19.21 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, deter·mined in accordance with the table below, to the amount of pension to which is entitled up to early retirement date in accordance with subsection (b). Table-General Employee participant as of September 30, 2011, /\MSC Participants -Percentages for early retirement date Years prior to normal retirement date Percentage 1 93.33 2 86.67 3 80.00 4 73.33 5 66.67 § 63.33 7 60.00 8 56.67 2 53.33 10 50.00 01529379-2 5 64 Rev .B.19 .21 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 which is entitled up to early retirement date in accordance with subsection (b). Table-General Employee participant as of September 30,2011, /\MS C Participants -Percentages for early retirement date Years prior to normal retirement date Percentage 1 93 .33 2 86.67 3 80.00 4 73.33 5 66.67 § 63.33 7 60.00 8 56.67 2 53.33 10 50.00 01529379-2 5 64 237 Rev.8.19 .21 (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 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. * * * Section 4: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-17 "Termination of Employment" as follows : (a} If the employment of a participant is terminated except by retirement, transfer to ineligible status or death, the participant 's interest and rights under this plan shall be limited to those contained in the following sections of this section. (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 1 is 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. 01529379-2 6 65 Rev.8.19.21 (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 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. * * * Section 4: Chapter 16, Article II, of the City of South Miami Code of Ordinances is hereby amended by amending Section 16-17 "Termination of Employment" as follows : (a) Ifthe employment of a participant is terminated except by retirement, transfer to ineligible status or death, the participant's interest and rights under this plan shall be limited to those contained in the following sections of this section. (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 1 is 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. 01529379·2 6 65 238 Rev.8.19 .21 Option 2: For vested participants, pension PeRsioR 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 prior to 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 on which pension benefits commence; or an amount determined b1• FRl:Jltiplying the aFF101:1nt of pension to which the participant is entitled in accordance with subsection 16-14(a) or 16-14(b), whichever is applicable biy a percentage determined in accordance with the fullo•A•ing sched1:1le on the basis of the lengtl=l of credited sePt'ice. N1:1R=iber of ','ears of credited ser>.iice Percentage l:ess than :l:Q G -H -1G ~ ~ .g JG ±4 4G ~ w ¼ w ±7 7G -±8 gQ -±9 9G ;?,Q or more -1GG 01529379-2 7 66 Rev.8.19.21 Option 2: For vested participants, pension 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 prior to 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 on which pension benefits commence; or an amount determined bIt FAl:Jltif'llying the amol:Jnt of pension to I .... hich the f3articif'lant is entitlea in accordance with subsection 16-14(a) or 16-14(b), whichever is applicable by a percentage aeterminea in accoraance with the following scheal:Jle on the basis of the length of creaited sep,cice. ~jl:JmbeF of I,ears of creelitea sep<,ice Percentage bess than ±Q G H ±G ~ ~ .g W ±4 4G ~ W 1-9 eG ±7 7G ±& gg ±9 9G ~Q or more ±GG 01529379·2 7 66 239 Rev .8.19 .21 Police officer participants, including bargaining unit employees, shall be one hundred (100) percent vested in the retirement plan upon completion of ten (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 of ten (10) years of continuous credited service. All Second Tier Members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous cre di t ed service. AMS( mem ber s hired o n o r after [effecti ve date of t his Ordinance) sha ll be 100% vested in the pensi on p lan up on compl etion of ten (10) y ears of co nti nu o us cre d ited ser v ice . AMSC Members who are em pl oyed o n the [effect iv e date of t his Ord i nance) shall be one hundred (100) percent vested in the pension plan upon coA1 p le t ion of five (5) ,,.ears of conti nuous seri,i ice. General employees and AMSC Members who opt to join the defined contribution plan of the City of South Miami shall vest in the defin ed co ntribu t io n pl an after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995 and have ten (10) years or more of continuous service will be one hundred (100) percent vested . * * * Section 5. 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. 01 529379-2 8 67 Rev.8.19.21 Police officer participants, including bargaining unit employees, shall be one hundred (100) percent vested in the retirement plan upon completion of ten (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 of ten (10) years of continuous credited service. All Second Tier Members shall be one hundred (100) percent vested in the pension plan upon completion of ten (10) years of continuous credited service. AMSC members hired on or after [effective date of this Ordinance] shall be 100% vested in the pension plan upon completion of ten (10) years of continuous credited service. AMSC Members who are employed on the [effective date of this Ordinance] shall be one hundred (100) percent vested in the pension plan blPOR coA'lpletioA of five (5) years of COAtiRl:JOl:JS service. General employees and AMSC Members who opt to join the defined contribution plan of the City of South Miami shall vest in the defin ed contribution plan after one (1) year of service. Accordingly, effective October 1, 1995, all general employees who are in this plan as of October 1, 1995 and have ten (10) years or more of continuous service will be one hundred (100) percent vested . * * * Section 5. 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. 01529379-2 8 67 240 Rev.8.19 .21 Section 6. 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. However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances, that give the appearance of being in conflict when the two ordinances can be harmonized or when only a portion of the ordinance in conflict needs to be repealed to harmonize the ordinances. If the ordinance in conflict can be harmonized by amending its terms, it is hereby amended to harmonize the two ordinances. Therefore, only that portion that needs to be repealed to harmonize the two ordinances shall be repealed. 01529379-2 Section 7. Effective Date. This ordinance shall become effective upon enactment. PASSED AND ADOPTED this __ day of _____ ~ 2021. ATTEST : CITY CLERK READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY, AND EXECUTION THEREOF CITY ATTORNEY 9 APPROVED : MAYOR COMMISSION VOTE: Mayor Philips: Commissioner Harris: Commissioner Gil: Commissioner Liebman : Commissioner Corey: 68 Rev.B.19.21 Section 6. 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. However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances, that give the appearance of being in conflict when the two ordinances can be harmonized or when only a portion ofthe ordinance in conflict needs to be repealed to harmonize the ordinances. If the ordinance in conflict can be harmonized by amending its terms, it is hereby amended to harmonize the two ordinances. Therefore, only that portion that needs to be repealed to harmonize the two ordinances shall be repealed. 01529379-2 Section 7. Effective Date. This ordinance shall become effective upon enactment. PASSED AN D ADOPTED this __ day of _____ -', 2021. ATIEST : CITY CLERK READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY, AND EXECUTION THEREOF CITY ATTORNEY 9 APPROVED : MAYOR COMMISSION VOTE: Mayor Philips: Commissioner Harris: Commissioner Gil : Commissioner Liebman : Commissioner Corey: 68 241 Actuarial Impact Statement as of October 1, 2020 A. Description of Proposed Amendment Final Average Compensation Final average compensation for AMSC members is the average of the highest 5 years of Credited Service Normal Retirement Eligibility For AMSC members: the earliest of attainment of age 60 and completion of 10 years of Credited Service (attainment of age 60 and completion of 5 years of Credited Service if an AMSC member prior to the adoption of the proposed Ordinance), attainment of age 55 and completion of 20 years of Credited Service or completion of 33 years of Credited Service. Early Retirement Eligibility Early retirement eligibility for AMSC members is eliminated. Vesting Schedule AMSC members are 100% vested upon completion of 10 years of Credited Service. AMSC members on the date of adoption of the Ordinance are 100% vested immediately. B. An estimate of the cost implementing this amendment (see attachment) C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Article X of the Statement Constitution. Chairman, Pension Board Date Actuarial Impact Statement as of October 1, 2020 A. Description of Proposed Amendment Final Average Compensation Final average compensation for AMSC members is the average of the highest 5 years of Credited Service Normal Retirement Eligibility For AMSC members: the earliest of attainment of age 60 and completion of 10 years of Credited Service (attainment of age 60 and completion of 5 years of Credited Service if an AMSC member prior to the adoption of the proposed Ordinance), attainment of age 55 and completion of 20 years of Credited Service or completion of 33 years of Credited Service. Ea r ly Retirement Eligibilit y Early retirement eligibility for AMSC members is eliminated . Vesting Schedule AMSC members are 100% vested upon completion of 10 years of Credited Service. AMSC members on the date of adoption of the Ordinance are 100% vested immediately. B. An estimate of the cost implementing this amendment (see attachment) C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Article X of the Statement Constitution. Chairman, Pension Board Date 242 Actuarial Impact Statement as of October 1, 2020 {All Participants) Actuarial Impact Valuation Statement 10/01/2020 10/01/2020 A. Participant Data 1. Active participants 98 98 2. Retired participants and beneficiaries receiving benefits excluding DROPs 50 50 3. DROP participants 7 7 4. Disabled participants receiving benefits 0 0 5. Terminated vested participants 11 11 6. Annual payroll of active participants $ 6,753,066 $ 6,753,066 7. Expected payroll of active employees for the following year $ 6,776,039 $ 6,776,039 8. Annual benefits payable to those currently receiving benefits excluding DROPs $ 1,603,894 $ 1,603,894 9. Annual benefits payable to DROPs $ 244,787 $ 244,787 B. Assets 1. Market Value of Assets $ 48,130,665 $ 48,130,665 2. Smoothed Value of Assets $ 48,823,503 $ 48,823,503 C. Liabilities 1. Actuarial present value of future expected benefit payments for active members a. Retirement benefits $ 23,402,980 $ 23,693,294 b. Vesting benefits 1,857,500 1,956,361 c. Death benefits 67,402 66,525 . d. Disability benefits 749,941 754,067 e. Refunds 255,641 248,811 f. Total $ 26,333,464 $ 26,719,058 2. Actuarial present value of future expected benefit payments for terminated vested members $ 1,507,846 $ 1,507,846 3. Actuarial present value of future expected benefit payments for members currently receiving benefits a. Service retired $ 19,366,481 $ 19,366,481 b. DROP participants 4,037,440 4,037,440 c. Disability retired 0 0 d. Beneficiaries 167,205 167,205 e. Miscellaneous 166,125 166,125 f. Total $ 23,737,251 $ 23,737,251 South Miami Pension Plan 1 j Actuarial Impact Statement as of October 1, 2020 (All Participants) Actuarial Impact Valuation Statement 10/01/2020 10/01/2020 A. Participant Data 1. Active participants 98 98 2. Retired participants and beneficiaries receiving benefits excluding DROPs 50 50 3. DROP participants 7 7 4 . Disabled participants receiving benefits 0 0 5. Terminated vested participants 11 11 6. Annual payroll of active participants $ 6,753,066 $ 6,753,066 7. Expected payroll of active em ployees for the following year $ 6,776,039 $ 6,776,039 8. Annual benefits payable to those currently receiving benefits excluding DROPs $ 1,603,894 $ 1,603,894 9. Annual benefits payable to DROPs $ 244,787 $ 244,787 B. Assets 1. Market Value of Assets $ 48,130,665 $ 48,130,665 2. Smoothed Value of Assets $ 48,823,503 $ 48,823,503 C. liabilities 1. Actuarial present value of future expected benefit payments for active members a. Retirement benefits $ 23,402,980 $ 23,693,294 b. Vesting benefits 1,857,500 1,956,361 c. Death benefits 67,402 66,525 . d. Disability benefits 749,941 754,067 e. Refunds 255,641 248,811 f. Total $ 26,333,464 $ 26,719,058 2. Actuarial present value of future expected benefit payments for terminated vested members $ 1,507,846 $ 1,507,846 3. Actuarial present value of future expected benefit payments for members currently receiving benefits a. Service retired $ 19,366,481 $ 19,366,481 b. DROP participants 4,037,440 4,037,440 c. Disability retired 0 0 d. Beneficiaries 167,205 167,205 e. Miscellaneous 166,125 166,125 f. Total $ 23,737,251 $ 23,737,251 South M iam i Pension Plan 1 i 243 Actuarial Impact Statement as of October 1, 2020 (All Participants) Actuarial Impact Valuation Statement 10/01/2020 10/01/2020 4. Total actuarial present value of future expected benefit payments $ 51,578,561 $ 51,964,155 5. Actuarial accrued liabilities $ 45,625,450 $ 45,891,756 6. Unfunded actuarial accrued liabilities $ (3,198,053) $ (2,931,747) D. Statement of Accumulated Plan Benefits 1. Actuarial present value of accumulated vested benefits a. Participants currently receiving benefits including DROP participants $ 23,571,126 $ 23,571,126 b. Other participants 14,542,864 14,673,469 c. Total $ 38,113,990 $ 38,244,595 2. Actuarial present value of accumulated non- vested Plan benefits 1,914,206 1,903,690 3. Total actuarial present value of accumulated Plan benefits $ 40,028,196 $ 40,148,285 E. Pension Cost 1. Total normal cost (including expenses) $ 1,027,239 $ 1,040,527 2. Payment required to amortize unfunded liability (300,990) (278,984) 3. Interest adjustment 27,237 28,493 4. Total preliminary required contribution $ 753,486 $ 790,036 5. Total required contribution $ 1,129,688 $ 1,166,238 6. Item 5 as a percentage of payroll 16.7% 17.3% 7. Estimated member contributions $ 440,265 $ 440,265 8. Item 7 as a percentage of payroll 6.5% 1 6.5% 1 9. Estimated State contributions $ 79,228 $ 79,228 10. Item 9 as a percentage of payroll 1.2% 1 1.2% 1 11. Net amount payable by City $ 614,637 $ 651,187 12. Item 11 as a percentage of payroll 9.1% 1 9.6% 1 l Percent of expected 2021-2022 covered payroll ($6,776,039) South Miami Pension Plan 2 i Actuarial Impact Statement as of October 1, 2020 (All Participants) Actuarial Impact Valuation Statement 10/01/2020 10/01/2020 4. Total actuarial present value of future expected benefit payments $ 51,578,561 $ 51,964,155 5. Actuarial accrued liabilities $ 45,625,450 $ 45,891,756 6. Unfunded actuarial accrued liabilities $ (3,198,053) $ (2,931,747) D. Statement of Accumulated Plan Benefits 1. Actuarial present value of accumulated vested benefits a. Participants currently receiving benefits including DROP participants $ 23,571,126 $ 23,571,126 b. Other participants 14,542,864 14,673,469 c. Total $ 38,113,990 $ 38,244,595 2. Actuarial present value of accumulated non- vested Plan benefits 1,914,206 1,903,690 3. Total actuarial present value of accumulated Plan benefits $ 40,028,196 $ 40,148,285 E. Pension Cost 1. Total normal cost (including expenses) $ 1,027,239 $ 1,040,527 2. Payment required to amortize unfunded liability (300,990) (278,984) 3. Interest adjustment 27,237 28,493 4. Total preliminary required contribution $ 753,486 $ 790,036 5. Total required contribution $ 1,129,688 $ 1,166,238 6. Item 5 as a percentage of payroll 16.7% 17.3% 7. Estimated member contributions $ 440,265 $ 440,265 8. Item 7 as a percentage of payroll 6.5% 6.5% 9. Estimated State contributions $ 79,228 $ 79,228 10. Item 9 as a percentage of payroll 1.2% 1.2% 11. Net amount payable by City $ 614,637 $ 651,187 12. Item 11 as a percentage of payroll 9.1% 9.6% 1 Percent of expected 2021-2022 covered payroll ($6,776,039) South Miami Pension Plan 2 i 244 Actuarial Impact Statement as of October 1, 2020 (All Participants) F. Disclosure of Following Items : 1. Actuarial present value of future salaries -attained age 2. Actuarial present value of future employee contributions -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 $ $ $ Valuation 10/01/2020 46,470,683 2,917,279 N/A 4,993,866 N/A N/A Actuarial Impact Statement 10/01/2020 $ 46,251,034 $ 2,901,904 N/A $ 4,993,866 N/A N/A So uth M iam i Pen si o n Plan 3 j Actuarial Impact Statement as of October 1, 2020 (All Participants) F. Disclosure of Following Items : 1. Actuarial present value of future salaries -attained age 2. Actuarial present value of future employee contributions -attained age 3. Actuarial present value of future contributions from other sources 4. Amount of activ-e 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 $ $ $ Valuation 10/01/2020 46,470,683 2,917,279 N/A 4,993,866 N/A N/A Actuarial Impact Statement 10/01/2020 $ 46,251,034 $ 2,901,904 N/A $ 4,993,866 N/A N/A South Miami Pension Plan 3 245 Actuarial Impact Statement as of October 1, 2020 Unfunded Actuarial Current Unfunded Amortization Remaining Funding Accrued Liabilities Liabilities Payment Period General Employees Tier 1 10/01/2015 Combined Bases * $ (1,339,699) $ (145,891) 14 years 10/01/2016 Actuarial Loss/ (Gain) (475,200) (42,082) 21 years 10/01/2016 Assumption Change 490,348 43,424 21 years 10/01/2017 Actuarial Loss/ (Gain) (322,884) (28,037) 22 years 10/01/2018 Actuarial Loss/ (Gain) (1,482,664) (126,448) 23 years 10/01/2018 Plan Amendment -Ord. #35-19-2348 761,159 64,915 23 years 10/01/2019 Actuarial Loss/ (Gain) (847,185) (71,072) 24 years 10/01/2019 Assumption Change (252,790) (21,207) 24 years 10/01/2020 Actuarial Loss/ (Gain) (56,118) (4,637) 25 years TOTAL $ (3,525,033) $ (331,035) General Employees Tier 2 10/01/2017 Initial Base $ 89,877 $ 7,959 21 years 10/01/2018 Actuarial Loss/ (Gain) 28,804 2,457 23 years 10/01/2018 Plan Amendment -Ord. #35-19-2348 107,661 9,182 23 years 10/01/2019 Actuarial Loss/ (Gain) (161,584) (13,556) 24 years 10/01/2019 Assumption Change (13,628) (1,143) 24 years 10/01/2020 Actuarial Loss/ (Gain) (104,817) (8,662) 25 years TOTAL $ (53,687) $ (3,763) AMSC 10/01/2017 Combined Bases * $ 204,282 $ 18,091 21 years 10/01/2018 Actuarial Loss/ (Gain) 531,090 45,293 23 years 10/01/2018 Plan Amendment -Ord. #23-19-2336 240,969 20,551 23 years 10/01/2018 Plan Amendment -Ord. #35-19-2348 525,546 44,821 23 years 10/01/2019 Actuarial Loss/ (Gain) (508,066) (42,622) 24 years 10/01/2019 Assumption Change (65,942) (5,532) 24 years 10/01/2020 Actuarial Loss/ (Gain) 159,636 13,191 25 years 10/01/2020 Plan Amendment 266,306 22,006 25 years TOTAL $ 1,353,821 $ 115,799 * Combined per Internal Revenue Code Regulation 1.412(b)-1 South Miami Pension Plan 4 i Actuarial Impact Statement as of October 1, 2020 Unfunded Actuarial Current Unfunded Amortization Remaining Funding Accrued Liabilities Liabilities Payment Period General Employees Tier 1 10/01/2015 Combined Bases * $ (1,339,699) $ (145,891) 14 years 10/01/2016 Actuarial Loss / (Gain) (475,200) (42,082) 21 years 10/01/2016 Assumption Change 490,348 43,424 21 years 10/01/2017 Actuarial Loss / (Gain) (322,884) (28,037) 22 years 10/01/2018 Actuarial Loss / (Gain) (1,482,664) (126,448) 23 years 10/01/2018 Plan Amendment -Ord. #35-19-2348 761,159 64,915 23 years 10/01/2019 Actuarial Loss / (Gain) (847,185) (71,072) 24 years 10/01/2019 Assumption Change (252,790) (21,207) 24 years 10/01/2020 Actuarial Loss / (Gain) (56,118) (4,637) 25 years TOTAL $ (3,525,033) $ (331,035) General Employees Tier 2 10/01/2017 Initial Base $ 89,877 $ 7,959 21 years 10/01/2018 Actuarial Loss / (Gain) 28,804 2,457 23 years 10/01/2018 Plan Amendment -Ord. #35-19-2348 107,661 9,182 23 years 10/01/2019 Actuarial Loss / (Gain) (161,584) (13,556) 24 years 10/01/2019 Assumption Change (13,628) (1,143) 24 years 10/01/2020 Actuarial Loss / (Gain) (104,817) (8,662) 25 years TOTAL $ (53,687) $ (3,763) AMSC 10/01/2017 Combined Bases * $ 204,282 $ 18,091 21 years 10/01/2018 Actuarial Loss / (Gain) 531,090 45,293 23 years 10/01/2018 Plan Amendment -Ord. #23-19-2336 240,969 20,551 23 years 10/01/2018 Plan Amendment -Ord. #35-19-2348 525,546 44,821 23 years 10/01/2019 Actuarial Loss / (Gain) (508,066) (42,622) 24 years 10/01/2019 Assumption Change (65,942) (5,532) 24 years 10/01/2020 Actuarial Loss / (Gain) 159,636 13,191 25 years 10/01/2020 Plan Amendment 266,306 22,006 25 years TOTAL $ 1,353,821 $ 115,799 * Combined per Internal Revenue Code Regulation 1.412(b)-1 South Miami Pension Plan 4 i 246 10/01/2018 10/01/2018 10/01/2019 10/01/2019 10/01/2020 Actuarial Impact Statement as of October 1, 2020 Unfunded Actuarial Accrued Liabilities Combined Bases * Plan Amendment -Ord. #38-19-2351 Actuarial Loss/ (Gain) Assumption Change Actuarial Loss/ (Gain) Current Unfunded Liabilities Police Officers $ (487,880) 343,941 274,937 (925,610) 87,764 Amortization Payment $ (43,044) 27,714 21,753 (73,236) 6,828 TOTAL $ (706,848) $ (59,985) * Combined per Internal Revenue Code Regulation l.412(b)-1 Remaining Funding Period 19 years 23 years 24 years 24 years 25 years This actuarial valuation and/or cost determination was prepared and completed by us or under our direct supervision, and we acknowledge responsibility for the results. To the best of our knowledge, the results are complete and accurate, and in our opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. Based upon our understanding of the Plan, there is no benefit or expense to be provided by the Plan and/or paid from the Plan's assets for which liabilities or current costs have not been established or other wise provided for in the valuation. All known events or trends which may require material increase in Plan costs or required contribution rates have been taken into account in the valuation . ~ F Shelly L. Jones, A.S.A. Enrollment Number: 20-08646 Dated: August 31, 2021 Jennifer M . Borregard, E.A. Enrollment Number: 20-07624 South Miami Pension Plan 5 i 10/01/2018 10/01/2018 10/01/2019 10/01/2019 10/01/2020 Actuarial Impact Statement as of October 1, 2020 Unfunded Actuarial Accrued Liabilities Combined Bases * Plan Amendment -Ord. #38-19-2351 Actuarial Loss / (Gain) Assumption Change Actuarial Loss / (Gain) Current Unfunded Liabilities Police Officers $ (487,880) 343,941 274,937 (925,610) 87,764 Amortization Payment $ (43,044) 27,714 21,753 (73,236) 6,828 TOTAL $ (706,848) $ (59,985) * Combined per Internal Revenue Code Regulation 1.412(b)-1 Remaining Funding Period 19 years 23 years 24 years 24 years 25 years This actuarial valuation and/or cost determination was prepared and completed by us or under our direct supervision, and we acknowledge responsibility for the results. To the best of our knowledge, the results are complete and accurate, and in our opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. Based upon our understanding of the Plan, there is no benefit or expense to be provided by the Plan and/or paid from the Plan's assets for which liabilities or current costs have not been established or other wise provided for in the valuation. All known events or trends which may require material increase in Plan costs or required contribution rates have been taken into account in the valuation. Shelly L. Jones, A.S.A. Enrollment Number: 20-08646 Dated : August 31, 2021 Jennifer M. Borregard, E.A. Enrollment Number: 20-07624 South Miami Pension Plan 5 i 247 Outl ine of Principal Provisions of the Retirement Plan A. Effective Date: October 1, 1965 . Most recently amended by Ordinance 38-19-2351 adopted December 3, 2019 . B. Eligibility Requirements: 1. General Em pl oye es Tier 1: Regular full-time employee hired before October 1, 2011 is eligible to enter the Plan following the completion of six months of Credited Service and attainment of age 20. Tier 2: Regular full -time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety {90) days from September 20, 2016 is eligible to enter the Plan as a Tier 2 employee as of October 1, 2016. Regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of the ir date of hire. Any regular full-time employee who previously entered into the Defined Contribution (DC) Plan may opt-out of the DC Plan and elect to join the Plan as a Tier 2 member or as their respective classification at the time they elect to join the Plan during an annual open enrollment period. 2. Police Officers Regular full-time Police Officer is eligible to enter the Plan as of date of employment . 3. Adm inis t ratio n Ma nag em ent Servic_e Cl ass (AMSC) Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: 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 Assistant Director of Parks and Recreation Community Redevelopment Agency Director Personnel Manager Project Manager Special Ass istant to the Manager Superintendent of Maintenance So ut h Mi ami Pens ion Pl an 6 Outline of Principal Provisions of the Retirement Plan A. Effective Date: October I, 1965. Most recently amended by Ordinance 38-19-2351 adopted December 3,2019. B. Eligibility Requirements: 1. General Employees Tier 1: Regular full-time employee hired before October I, 2011 is eligible to enter the Plan following the completion of six months of Credited Service and attainment of age 20. Tier 2: Regular full-time employee hired on or after October I, 2011 and not participating in the Plan as of October I, 2016 who elects to join or fails to make any election within ninety (90) days from September 20, 2016 is eligible to enter the Plan as a Tier 2 employee as of October I, 2016. Regular full-time employee hired on or after October I, 2016 who elects to join or fails to make any election within ninety (90) days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. Any regular full-time employee who previously entered into the Defined Contribution (DC) Plan may opt-out of the DC Plan and elect to join the Plan as a Tier 2 member or as their respective classification at the time they elect to join the Plan during an annual open enrollment period. 2. Police Officers Regular full-time Police Officer is eligible to enter the Plan as of date of employment . 3. Administration Management Service Class (AMSC) Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: 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 Assistant Director of Parks and Recreation Community Redevelopment Agency Director Personriel Manager Project Manager Special Assistant to the Manager Superintendent of Maintenance South Miami Pension Plan 6 248 Outline of Principal Provisions of the Retirement Plan C. Credited Service: 1. General Employees and AMSC Continuous employment. Credited service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of date of Plan entry election date or date of hire. 2. Police Officers Continuous employment. For Police Officers who did not participate when first eligible for the Plan, Credited Service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, Credited Service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, Credited Service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. D. Final Monthly Compensation (FMC): Final Average Compensation is 1/36th of the final 36 consecutive months of compensation. For Police Officers, not less than 1/5th of the highest five (5) years out of the last (10) ten years of compensation. Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, Final Average Compensation for General Employees is l/60th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. South Miami Pension Plan 7 i Outline of Principal Provisions of the Retirement Plan C. Credited Service: 1. General Employees and AMSC Continuous employment. Credited service shall exclude continuous employment prior to Plan participation as follows: (1) If employed prior to October 1, 1973, credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of date of Plan entry election date or date of hire. 2. Police Officers Continuous employment. For Police Officers who did not participate when first eligible for the Plan, Credited Service shall exclude continuous employment prior to Plan participation as follows : (1) If employed prior to October 1, 1973, Credited Service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2) If employed on or after October 1, 1973, Credited Service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. D. Final Monthly Compensation (FMC): Final Average Compensation is 1/36th of the final 36 consecutive months of compensation. For Police Officers, not less than 1/5th of the highest five (5) years out of the last (10) ten years of compensation . Compensation shall mean regular wages and salaries, excluding bonuses, vacation, sick leave and other additional compensation. Effective October 1, 2011, Final Average Compensation for General Employees is 1/60th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries , excluding commissions, overtime pay, bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011, Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 3D, 2011 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. South Miami Pension Plan 7 i 249 Outline of Principal Provisions of the Retirement Plan D. Final Monthly Compensation (FMC) (cont'd}: Effective October 1, 2016, Final Average Compensation for members covered under the Miami-Dade County Police Benevolent Association Upper-Collective Bargainning Union (Lieutenants & Captains) collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2016 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages . Final Average Compenation for Tier 2 General Employees shall be the average of the highest eight (8) years of credited service. Final Average Compenation for AMSC shall be the average of the highest five (5) years of credited service . E. Normal Retirement: 1. Eligibility: a. General Employees: b. Police Officers: c. AMSC: 2. Benefit: Attainment of age 55 and completion of ten (10) years of Credited Service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10) years of Credited Service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation . Attainment of age 65 and completion of ten (10) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age for Tier 2 General Employees. Attainment of age 55 and completion of ten (10) years of Credited Service or completion of twenty-five (25) years of Credited Service regardless of age. Attainment of age 60 and completion of ten (10) years of Credited Service (attainment of age 60 and completion of five (5) years of Credited Service if an AMSC member prior to the adoption of the proposed Ordinance), attainment of age 55 and completion of twenty (20) years of Crediited Service or completion of thirty-three (33) years of Credited Service regardless of age. The monthly Plan benefit is the product of: a. FMC, b. Credited Service during the appropriate period and c. The appropriate benefit percentage South Miami Pension Plan 8 Outline of Principal Provisions of the Retirement Plan D. Final Monthly Compe nsation (FMC) (cont'd): Effective October 1, 2016, Final Average Compensation for members covered under the Miami-Dade County Police Benevolent Association Upper-Collective Bargainning Union (Lieutenants & Captains) collective bargaining agreement is the best five (5) years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2016 based on the definition above. Basic compensation shall mean base wages and salaries, including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave, extra duty or special detail work, shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages . Final Average Compenation for Tier 2 General Employees shall be the average of the highest eight (8) years of credited service. Final Average Compenation for AMSC shall be the average of the highest five (5) years of credited service. E. Normal Retirement: 1. Eligib i li t y : a. General Employees: b. Police Officers: c. AMSC: 2. Benefit: Attainment of age 55 and completion of ten (10) years of Credited Service for benefits accrued as of September 30,2011. Attainment of age 60 and completion of ten (10) years of Credited Service for benefits accrued after September 30, 2011, including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Com pensation. Attainment of age 65 and completion of ten (10) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age for Tier 2 General Employees. Attainment of age 55 and completion of ten (10) years of Credited Service or completion oftwenty-five (25) years of Credited Service regardless of age. Attainment of age 60 and completion of ten (10) years of Credited Service (attainment of age 60 and completion of five (5) years of Credited Service if an AMSC member prior to the adoption of the proposed Ordinance), attainment of age 55 and completion of twenty (20) years of Crediited Service or completion of thirty-three (33) years of Credited Service regardless of age. The monthly Plan benefit is the product of: a. FMC, b. Credited Service during the appropriate period and c. The appropriate benefit percentage South M iami Pension Pl an 8 250 Outline of Principal Provisions of the Retirement Plan E. Normal Retirement (con t'd ): 2. Benefit {cont 'd): The appropriate benefit percentages are: a. General Employees For Credited Service Percentage b. Police Officers c. General Employees (Tier 2) d. AMSC F. Supplem ental Be nefi t: 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, 1995 through September 30, 1996 October 1, 1996 through September 30, 1997 October 1, 1997 through September 30, 2001 October 1, 2001 through September 30, 2002 October 1, 2002 through September 30, 2003 October 1, 2003 and thereafter For Credited Service October 1, 2016 and thereafter For Credited Service October 1, 2016 and thereafter 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% A cost-of-living supplemental benefit based upon the consumer price index is provided upon retirement. The annual increase is limited to 3%. No cost-of-living supplemental benefit is provided for Tier 2 General Employees and AMSC members who retired or entered the DROP prior to October 1, 2019. No cost-of-liv i ng supplemental benefit is provided on the portion of the benefit accrued after September 30, 2011 for Tier 1 General Employees who retired or entered the DROP prior to October 1, 2019. G. Early Retire ment for Police Officers: 1. El igi b ility: 2. Benefit: Attainment of age 50 and completion of 10 years of Credited Service. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 3% for each year that the benefit commencement date precedes Normal Retirement. South Miami Pension Plan 9 7 Outline of Principal Provisions of the Retirement Plan E. Normal Retirement (cont'd): 2. Benefit (cont 'd): The appropriate benefit percentages are: a. General Employees For Credited Service Percentage b. Police Officers c. General Employees (Tier 2) d. AMSC F. Supplemental Benefit : Through September 30, 1999 October I, 1999 through September 30, 2011 October I, 2011 and thereafter For Credited Service Through September 30, 1995 October I, 1995 through September 30, 1996 October I, 1996 through September 30, 1997 October I, 1997 through September 30, 2001 October I, 2001 through September 30,2002 October I, 2002 through September 30,2003 October I, 2003 and thereafter For Credited Service October I, 2016 and thereafter For Credited Service October I, 2016 and thereafter 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% A cost-of-living supplemental benefit based upon the consumer price index is provided upon retirement. The annual increase is limited to 3%. No cost-of-living supplemental benefit is provided for Tier 2 General Employees and AMSC members who retired or entered the DROP prior to October I, 2019. No cost-of-living supplemental benefit is provided on the portion of the benefit accrued after September 3D, 2011 for Tier 1 General Employees who retired or entered the DROP prior to October I, 2019. G. Early Retirement for Police Officers: 1. Eligibility: 2. Benefit: Attainment of age 50 and completion of 10 years of Credited Service. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 3% for each year that the benefit commencement date precedes Normal Retirement. South Miami Pension Plan 9 7 251 Outline of Principal Provisions of the Retirement Plan H. De laye d Retire men t: 1. El igi bi li ty : Retirement subsequent to Normal Retirement Date. 2. Ben efit: Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date . I. Di sab il ity Retirement: 1. Eligib i li ty : Totally and permanently disabled for a six month period while actively employed. 2. Benefit: Accrued benefit based upon FMC and Credited Service as of date of disability, actuarially reduced as for Early Retirement for early commencement. J. Pre-Retirement Death Benefit : The beneficiary shall receive the member's accumulated Employee Contributions. K. Ben efit Upon Termination of Servi ce: 1. Benefit payable at Normal Retirement equal to the greater of: a. Accrued benefit based upon FMC and Credited Service as of date of termination times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated Member Contributions with interest to Normal Retirement Date. No supplemental benefit shall be payable to vested terminees. 2. Vesting Schedule: Years of Credited Service Less than 10 10 or more years Vesting Percentage 0% 100% AMSC members who have completed three (3) years of continuous Credited Service as of June 18, 2019 are 100% vested . AMSC members on the date of adoption of the Ordinance are 100% vested immediately. 3. Refund Option : A terminated member may elect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits. South Miami Pension Plan 10 Outline of Principal Provisions of the Retirement Plan H. Dela yed Reti rement: 1. El ig i bility: Retirement subsequent to Normal Retirement Date . 2. Ben efit: Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date. I. Disab i li ty Reti re ment: 1. Eligi b i l ity : Totally and permanently disabled for a six month period while actively employed . 2. Benefit: Accrued benefit based upon FMC and Credited Service as of date of disability, actuarially reduced as for Early Ret irement for early commencement. J. Pre-Retirement Death Benefit : The beneficiary shall receive the member's accumulated Employee Contributions. K. Benefit Upo n Terminatio n of Serv ic e: 1. Benefit payable at Normal Retirement equal to the greater of: a. Accrued benefit based upon FMC and Credited Service as of date of term i nation times the vesting percentage shown below, or b. Benefit which can be supported by the accumulated Member Contributions with interest to Normal Retirement Date. No supplemental benefit shall be payable to vested terminees. 2. Vesting Schedule: Years of Credited Service Less than 10 10 or more years Vesting Percentage 0% 100% AMSC members who have completed three (3) years of continuous Credited Service as of June 18, 2019 are 100% vested. AMSC members on the date of adoption of the Ordinance are 100% vested immediately. 3. Refund Option : A terminated member may elect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits . Sou t h Miami Pen sion Plan 10 252 Outline of Principal Provisions of the Retirement Plan L. Member Contributions: Members contribute 7.0% (3 .0% for Tier 2 General Employees and 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, both the City and the General Employees (other than Tier 2 General Employees and AMSC) will share equally in the amount in excess of 7.0%. General Employees (other than Tier 2 General Employees and AMSC) Contributions are capped at 10% of basic annual compensation as of October 1, 2016 . Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5% but not more than 12.0%. M. Normal Form of Retirement Income: The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated Employee Contributions. N. De ferred Retirement Option Plan (DROP}: 1. Eligibility: Attainment of normal retirement date. 2. The maximum period of participation in the DROP is sixty (60) months. 3. A member's account in the DROP shall be credited monthly with interest in an amount equal to 50% of the net (gross return minus investment expense) yearly interest earned by the Plan for the preceding fiscal year, up to a maximum of 5% and a minimum of 0%. 4. No payment may be made from the DROP until the member actually separates from service with the City. The DROP account balance may be distributed in a lump sum, periodic payments, an annuity or a combination thereof. South Miami Pension Plan 11 Outline of Principal Provisions of the Retirement Plan L. Member Contributions: Members contribute 7.0% (3 .0% for Tier 2 General Employees and 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, both the City and the General Employees (other than Tier 2 General Employees and AMSq will share equally in the amount in excess of 7.0%. General Employees (other than Tier 2 General Employees and AMSq Contributions are capped at 10% of basic annual compensation as of October 1, 2016. Should the City contribution for Police Officers be actuarially determined to exceed 7.5%, not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5% but not more than 12.0%. M. Normal Form of Retirement Income: The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated Employee Contributions. N. Deferred Retirement Option Plan (DROP): 1. Eligibility: Attainment of normal retirement date. 2. The maximum period of participation in the DROP is sixty (60) months. 3. A member's account in the DROP shall be credited monthly with interest in an amount equal to 50% of the net (gross return minus investment expense) yearly interest earned by the Plan for the preceding fiscal year, up to a maximum of 5% and a minimum of 0%. 4. No payment may be made from the DROP until the member actually separates from service with the City. The DROP account balance may be distributed in a lump sum, periodic payments, an annuity or a combination thereof. South Miami Pension Plan 11 253 Outline of Principal Provisions of the Retirement Plan 0. Changes Since Previous Actuarial Valuation : 1. Fina.I Average Compensation for AMSC was: Final Average Compenation for AMSC shall be the average of the highest eight (8) years of credited service. 2. Normal Retirement eligibility for AMSC was : Attainment of age 60 and completion of five (5) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age. 3. Early retirement for AMSC was : Eligibility: Benefit: Attainment of age 55 and completion of 10 years of Credited Service. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 1/15 for each of the first five years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. 4. Vest ing schedule for AMSC was : 100% vesting upon completion of 5 years of credited service. South Miami Pension Plan 12 a Outline of Principal Provisions of the Retirement Plan O. Changes Since Previous Actuarial Valuation: 1. Final Average Compensation for AMSC was: Final Average Compenation for AMSC shilll be the average of the highest eight (8) years of credited service. 2. Normal Retirement eligibility for AMSC was : Attainment of age 60 and completion of five (5) years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age. 3. Early retirement for AMSC was: Eligibility: Benefit: Attainment of age 55 and completion of 10 years of Credited Service. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 1/15 for each of the first five years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. 4 . Vesting schedule for AMSC was: 100% vesting upon completion of 5 years of credited service. South Miami Pension Plan 12 a 254 A. Mortality Actuarial Assumptions and Methods Used in the Actuarial Impact Statement General Employees including AMSC Mortality Assumptions: For healthy participants during employment, PUB-2010 Headcount Weighted General Below Median Employee Mortality Table, separate rates for males and females, set back 1 year for males, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment, PUB-2010 Headcount Weighted General Below Median Healthy Retiree Mortality Table, separate rates for males and females, set back 1 year for males, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled participants, PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table, separate rates for males and females, both set forward 3 years, without projected mortality improvements. Pre-retirement Sample Future Life Ages Expectancy (Years) (2020) Male Female 55 32.58 35.02 60 27.74 30.00 62 25.85 28.02 Pre-retirement Sample Future Life Ages Expectancy (Years) (2040) Male Female 55 34.22 36.50 60 29.30 31.44 62 27.37 29.43 Police Officer Mortality Assumptions: Post-retirement Future Life Expectancy (Years) Male Female 28.63 24.55 22.93 32.38 27.84 26 .02 Post-retirement Future Life Expectancy (Years) Male 30.64 26.40 24.72 Female 34.15 29.51 27.63 For healthy participants during employment, PUB-2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment, PUB-2010 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled participants, 80% PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table / 20% PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table, separate rates for males and females, without projected mortality improvements. South Miami Pension Plan 13 E A. Mortality Actuarial Assumptions and Methods Used in the Actuarial Impact Statement General Employees including AMSC Mortality Assumptions: For healthy participants during employment, PUB-20lO Headcount Weighted General Below Median Employee Mortality Table, separate rates for males and females, set back 1 year for males, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment, PUB-20lO Headcount Weighted General Below Median Healthy Retiree Mortality Table, separate rates for males and females, set back 1 year for males, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled participants, PUB-20lO Headcount Weighted General Disabled Retiree Mortality Table, separate rates for males and females, both set forward 3 years, without projected mortality improvements. Pre-retirement Sample Future Life Ages Expectancy (Years) (2020) Male Female 55 32.58 35.02 60 27.74 30.00 62 25.85 28.02 Pre-retirement Sample Future Life Ages Expectancy (Years) (2040) Male Female 55 34.22 36.50 60 29.30 31.44 62 27.37 29.43 Police Officer Mortality Assumptions: Post-retirement Future Life Expectancy (Years) Male Female 28.63 24.55 22.93 32.38 27.84 26.02 Post-retirement Future Life Expectancy (Years) Male 30.64 26.40 24.72 Female 34.15 29.51 27 .63 For healthy participants during employment, PUB-2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment, PUB-2010 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled participants, 80% PUB-20lO Headcount Weighted General Disabled Retiree Mortality Table / 20% PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table, separate rates for males and females, without projected mortality improvements. South Miami Pension Plan 13 255 Actuarial Assumptions and Methods Used in the Actuarial Impact Statement A. Mortality (cont'd) Police Officer Mortality Assumptions {cont'd): Pre-retirement Post-retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2020) Male Female Male Female 55 30.45 34.32 27.59 31.17 60 25.51 29.26 23.01 26.39 62 23.58 27.25 21.28 24 .55 Pre-retirement Post-retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2040) Male Female Male Female 55 32.09 35.81 29.48 33 .00 60 27.08 30.70 24.79 28.13 62 25.11 28.67 23.00 26.25 B. Investment Return to be Earned by Fund 7.375% (net of investment expenses), compounded annually-includes inflation at 2.75%. C. Allowances for Expenses or Contingencies Actual expenses paid in previous year. D. Employee Withdrawal Rates Withdrawal rates for males and for females were used in accordance with the following illustrative example based upon number of years of service: E. Disability Rates Servi·c:e 1 -2 3-6 7 -10 11.& Over Withdrawal Rates Per 10!i) Etnploy,~es 12.00 20.00 8.00 9 .. 25 8.Q(l) 5,0.0 3.50 5.00 1985 Disability Study, Class 1 with separate rates for females. South Miami Pension Plan 14 a Actuarial Assumptions and Methods Used in the Actuarial Impact Statement A. Mortality (cont'd) Police Officer Mortality Assumptions (cont 'dl: Pre-retirement Post-retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2020) Male Female Male Female 55 30.45 34.32 27.59 31.17 60 25.51 29.26 23.01 26 .39 62 23.58 27.25 21.28 24 .55 Pre-reti rement Post-retirement Sample Future Life Future Life Ages Expectancy (Years) Expectancy (Years) (2040) Male Female Male Female 55 32.09 35.81 29.48 33.00 60 27.08 30 .70 24.79 28.13 62 25.11 28.67 23.00 26.25 B. Investment Return to be Earned by Fund 7.375% (net of investment expenses), compounded annually -includes inflation at 2.75%. C. Allowances for Expenses or Contingencies Actual expenses paid in previous year. D. Employee Withdrawal Rates Withdrawal rates for males and for females were used in accordance with the following illustrative example based upon number of years of service: E. Disability Rates Service 1 -2 3 ~6 7 -1@ 11.& Over Withdrawal Rates Per lOO Employ~es Palke GeAeral1 AMS[ 12.00 to. 00 8.0@ 9.2£ 8.0@ £.O@ 3.50 ~.OO 1985 Disability Study, Class 1 with separate rates for females. South Miami Pension Plan 14 a 256 F. Marital Assumptions Actuarial Assumptions and Methods Used in the Actuarial Impact Statement 100% of active members are assumed to be married. Where applicable, females are assumed to be three years younger than their male spouses . G. Salary Increase Factors Current salary is assumed to increase in accordance with the following table based upon number of years of service -includes wage inflation of 3.25%. S1'lrv:fce e-,. l!©-14 U-19 ~tll & <>¥ r H. Increase in Covered Payroll P.e1iee ~-2!~% 3.7S/Jl6 2.7£% 3'.15% General /AMSC 5 ,'2S!¾ i;J:.75$ 4..23 % 3 .. 1.§-% 4.0% per year, limited to average annual increase over most recent ten years (D. 7%) but not less than 0.0% for Police Officers. No increase in covered payroll is assumed for General Employees including AMSC. I. Retirement Rates Rates of Early Retirement for Police Officers were used in accordance with the following table. 'r'€ars Preceding ~.il:i e.r~t 1 -~ Rates of Normal Retirement were used in accordance with the following tables . Age Police, C:ienei:,al * AMSC "'* 55 -.59 25% 10% 25% 60--61 25% 10.% 25% 62 -64 4 0 % 2-5% 35% 65 -66 1©0% 2S!¼ 3$1¾, ~7 & a~eve 1tl0% 100% 100% S~Ge P0lf~, as years 1©.0% * Rates are 25% for Tier 2 members for each year upon meeting 33 years of service until 100% at age 67. ** Rates are 25% below the age of 62 and 35% between the ages of 62 and 66 upon meeting 33 years of service until 100% at age 67. General Employees who retire prior to age sixty (60) but after attainment of ten (10) years of Credited Service (55 & 10) are assumed to receive an actuarially reduced benefit payable immediately upon retirement. South Miami Pension Plan 15 E F. Marital Assumptions Actuarial Assumptions and Methods Used in the Actuarial Impact Statement 100% of active members are assumed to be married. Where applicable, females are assumed to be three years younger than their male spouses. G. Salary Increase Factors Current salary is assumed to increase in accordance with the following table based upon number of years of service -includes wage inflation of 3.25%. $g,rvrce el-9, 14iJ-~ll l ~ -1'9 H. Increase in Covered Payroll ~01iee 5.2:15% 3.7S% ~.1'.S% ~0 5% General! AMSC 5 .2'5% ~L7 5;% 4..23 % 3).~$~~ 4.0% per year, limited to average annual increase over most recent ten years (0.7%) but not less than 0.0% for Police Officers. No increase in covered payroll is assumed for General Employees including AMSC. I. Retirement Rates Rates of Early Retirement for Police Officers were used in accordance with the following table. rgli ~e ~%. 10% Rates of Normal Retirement were used in accordance with the following tables . Age Rolice' General .. AMSC ** 55 -59 26% 10% 2S% 60 -.51 25% 1 0,% 2~% 6~ -64 4 0 % 2-£% 35% 65 -66 Hl9% 2S% 3S% 97 & above l'dO% 100% 100% Se:K\9c;e ~0Ii£@, a years 1(1).0% * Rates are 25% for Tier 2 members for each year upon meeting 33 years of service until 100% at age 67. ** Rates are 25% below the age of 62 and 35% between the ages of 62 and 66 upon meeting 33 years of service until 100% at age 67. General Employees who retire prior to age sixty (60) but after attainment of ten (10) years of Credited Service (55 & 10) are assumed to receive an actuarially reduced benefit payable immediately upon retirement. South Miami Pension Plan 15 257 J. Cost of Living Increases Actuarial Assumptions and Methods Used in the Actuarial Impact Statement Future cost of living increases for General Employees (including Tier 1 and Tier 2 General Employees), AMSC and Police Officers are assumed to be 3.0% per annum. K. Valuation of Assets The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The smoothed value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair market value of Plan assets and whose upper limit is 120% of the fair market value of Plan assets. L. Cost Methods Normal Retirement, Termination, Disab ility and Pre-Retirement Death Benefit : Entry-Age-Actuarial Cost Method Under this method the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assuming the Plan had always been in effect. The normal cost for the Plan is the sum of the individual normal costs for all active employees. The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the Plan is the excess of the actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs. The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrued liability over the smoothed value of assets of the Plan. Vested Normal Retirement, Termination, Disability, and Death Benefits: Unit Credit Cost Method Under this method, the actuarial present value of vested accrued benefits is an amount calculated to be the sum of the present values of each individual's vested accrued or earned benefit under the Plan as of the valuation date. Each individual's calculation is based on pay and service as of the valuation date. M. Changes Since Previous Actuarial Valuation AMSC Retirement Rates were: Age SS -S9 60-6[ 62 -64 6.5 -66 67 & above * Includes Early Retirement . AMSC:,., 19% 25% 35% 35% 100% South Miami Pension Plan 16 J. Cost of Livi ng Increa ses Actuarial Assumptions and Methods Used in the Actuarial Impact Statement Future cost of living increases for General Employees (including Tier 1 and Tier 2 General Employees), AMSC and Police Officers are assumed to be 3.0% per annum. K. Valuation of Assets The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 20% per year. The smoothed value of assets wi" be further adjusted to the extent necessary to fa" within the corridor whose lower limit is 80% of the fair market value of Plan assets and whose upper limit is 120% of the fair market value of Plan assets. L. Cost Methods Normal Retirement, Termination , Disability and Pre-Ret i rement Death Benefit: Ent ry -Age -Actuar i al Co st M ethod Under this method the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assuming the Plan had always been in effect . The normal cost for the Plan is the sum of the individual normal costs for a" active employees. The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the Plan is the excess of the actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs. The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrued liability over the smoothed value of assets of the Plan . Vested Normal Retirement, Termination, Disabi lity, and Death Benefits: Unit Credit Cost Method Under this method, the actuarial present value of vested accrued benefits is an amount calculated to be the sum of the present values of each individual's vested accrued or earned benefit under the Plan as of the valuation date. Each individual's calculation is based on pay and service as of the valuation date. M. Ch ang es Since Previo us Actuar ial Valuation AMSC Retirement Rates were : Age Sf) -59 60 -6 [ 62 -64 65 -66 67 & ab0v e * Includes Early Retirement . :a:MSC: "* 1 0 % 2.S% 35% 35.% 1 0 0% South Miami Pension Plan 16 October 12, 2023 Ms. Siera Feketa, MBA South Miami Pension Plan, Pension Administrator Foster & Foster 2503 Del Prado Blvd. S Suite 502 Cape Coral, Florida 33904 Re: South Miami Pension Plan Actuarial Impact Statement Dear Siera: As requested by Mr. Alfredo Riverol, we are pleased to enclose twelve (12) copies of our Actuarial Impact Statement as of October 1, 2022 for the proposed Ordinance under the South Miami Pension Plan (Plan) for filing with the State of Florida (copy enclosed) prior to second reading. Background Currently, the Plan provides Administration Management Service Class (AMSC) members the following provisions: Employees of the City with following positions belong to the AMSC City Manager Chief Administrative Officer (currently Finance Office Manager) City Attorney Chief Procurement Officer (currently Purchasing Manager) City Clerk Parks and Recreation Director Assistant / Deputy City Manager Assistant Director of Parks and Recreation Finance Director / Chief Financial Officer Community Redevelopment Agency Director Chief of Police Personnel Manager Planning and Zoning Director Project Manager Building Director Special Assistant to the Manager Director of Public Works Superintendent of Maintenance For AMSC members hired on or after September 7, 2021, Normal Retirement eligibility upon the earlier of: (a)Attainment of age sixty (60) and completion of ten (10) years of Credited Service (b)Attainment of age fifty-five (55) and completion of twenty (20) years of Credited Service (c)Completion of thirty-three (33) years of Credited Service regardless of age 258 Ms. Siera Feketa, MBA October 12, 2023 Page Two  100% vesting upon completion of ten (10) years of Credited Service for members hired on or after September 7, 2021 Proposed Ordinance – The proposed Ordinance provides AMSC members with following:  Employees of the City with following positions belong to the AMSC City Manager Planning and Zoning Director City Attorney Building Director City Clerk Director of Public Works Assistant / Deputy City Manager Director of Parks, Recreation and Culture Finance Director / Chief Financial Officer Development Services Director Chief of Police Employees who were employed in the following positions remain members of AMSC for as long as they are employed in such positions or other positions included in the AMSC. Employees initially hired or promoted into the following positions on or after the effective date of the Ordinance will be second tier members under the Plan. Chief Administrative Officer (currently finance officer manager) Project Manager Chief Procurement Officer (currently purchasing manager) Special Assistant to the Manager Community Redevelopment Agency Director Superintendent of Maintenance Personnel Manager Assistant Director of Parks and Recreation  For all AMSC members, Normal Retirement eligibility upon the earliest of: (a) Attainment of age sixty (60) and completion of five (5) years of Credited Service (b) Attainment of age fifty-five (55) and completion of twenty (20) years of Credited Service (c) Completion of thirty-three (33) years of Credited Service regardless of age  100% vesting upon completion of five (5) years of Credited Service. Cost – The total impact of the proposed Ordinance results in an expected increase in the first year Net City Annual Required Contribution of $53 (0.0% as a percentage of expected covered payroll - $6,262,907). Filing Requirements – We have prepared the Actuarial Impact Statement for filing with the State of Florida. Please note that this Statement must be signed and dated on behalf of the Board of Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated Actuarial Impact Statement are generally required to be filed with the State at the following address: 259 Ms. Siera Feketa, MBA October 12, 2023 Page Three 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 We understand the State requires funding any increases in costs no later than the fiscal year next following the effective date of the Ordinance. Please forward a copy of the Ordinance upon passage at second reading to update our files. Actuarial assumptions and methods, Plan provisions, financial data and member census data – The actuarial assumptions and methods, financial data and member census data employed for purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2022 Actuarial Valuation. The Plan provisions employed for purposes of our Actuarial Impact Statement are the same Plan provisions utilized in the October 1, 2022 Actuarial Valuation with the exception of the proposed changes described above. This Actuarial Impact Statement only reflects experience through October 1, 2022. Risk Assessment – Risk assessment may include scenario tests, sensitivity, or stress tests, stochastic modeling, and a comparison of the present value of benefits at low-risk discount rates. We are prepared to perform such assessment to aid in the decision-making process. Please refer to the October 1, 2022 Actuarial Valuation Report dated March 17, 2023 for additional discussion regarding the risks associated with measuring the liability and the minimum funding payment. Other Considerations – Under Governmental Accounting Standards Board (GASB) Statement Number 68, we understand the full cost of benefit changes must be recognized immediately in pension expense (accounting not funding). Therefore, the pension expense is expected to increase the first year and then is expected to decrease to a lower level in fiscal years following initial recognition of the plan change. This Actuarial Impact Statement is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the benefit changes nor in opposition to the benefit changes. If all actuarial assumptions are met and if all current and future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, future contributions are expected to remain relatively stable as a percent of payroll and the funded status is expected to improve. Plan 260 Ms. Siera Feketa, MBA October 12, 2023 Page Four minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act and Police Officers Retirement Chapter 185 with normal cost determined as a level percent of covered payroll and a level percent amortization payment using an initial amortization period of 25 years. The Unfunded Actuarial Accrued Liability (UAAL) may not be appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing the need for or the amount of future contributions. The UAAL would be different if it reflected the market value of assets rather than the smoothed value of assets. These calculations are based upon assumptions regarding future events. However, the Plan’s long term costs will be determined by actual future events, which may differ materially from the assumptions made. These calculations are also based upon present and proposed Plan provisions that are outlined or referenced in this Actuarial Impact Statement. If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described or referenced, important Plan provisions relevant to this Actuarial Impact Statement are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Impact Statement. If you have reason to believe that the information provided in this Actuarial Impact Statement is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period) and changes in Plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements. This Actuarial Impact Statement should not be relied upon for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This Actuarial Impact Statement was prepared using ProVal’s valuation model, a software product of Winklevoss Technologies. We are relying on the ProVal model. We performed tests of the ProVal model with this assignment and made a reasonable attempt to understand the developer’s intended purpose of, general operation of, major sensitivities and dependencies within, and key 261 Ms. Siera Feketa, MBA October 12, 2023 Page Five strengths and limitations of the ProVal model. In our professional judgment, the ProVal valuation model has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. This Actuarial Impact Statement has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Actuarial Impact Statement was prepared at the request of the Board and is intended for use by the Board and those designated or approved by the Board. This report may be provided to parties other than the Board only in its entirety and only with the permission of the Board. GRS is not responsible for unauthorized use of this report. The signing actuaries are independent of the Plan sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Gabriel, Roeder, Smith & Company Jennifer M. Borregard, EA, MAAA, FCA Shelly L. Jones, ASA, EA, MAAA, FCA Consultant and Actuary Consultant and Actuary Enclosures cc: Mr. Alfredo Riverol 262 1 ORDINANCE NO. ______________1 AN ORDINANCE OF THE CITY COMMISSION OF 2 THE CITY OF SOUTH MIAMI, FLORIDA,3 AMENDING THE SOUTH MIAMI PENSION PLAN; 4 BY AMENDING CHAPTER 16 “PENSIONS”, 5 ARTICLE II “CITY PENSION PLAN”, SECTION 16-6 12, “DEFINITIONS”; SECTION 16-14, “PENSION 7 BENEFITS AND RETIREMENT DATE”; AND BY 8 AMENDING SECTION 16-17, “TERMINATION OF 9 EMPLOYMENT”;AND PROVIDING FOR 10 SEVERABILITY; PROVIDING FOR INCLUSION IN 11 THE CODE; PROVIDING FOR CONFLICTS; AND 12 PROVIDING FOR AN EFFECTIVE DATE.13 14 WHEREAS, the City Commission desires to amend the eligibility and vesting requirements for 15 members of the administration management service class (“ASMC”) of the City’s pension plan; and 16 WHEREAS,the City Commission has determined that amending the City’s pension plan is in 17 the best interests of the City and its residents. 18 NOW, THEREFORE, BE IT HEREBY ORDAINED BY THE MAYORAND CITY 19 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT:20 Section 1.Recitals.The foregoing recitals are hereby ratified and incorporated by 21 reference as if fully set forth herein and as the legislative intent of this Ordinance. 22 Section 2.Amending Section 16-12 of the Code. Chapter 16, Article II, of the City of 23 South Miami Code of Ordinances is hereby amended by amending Section 16-12, “Definitions” as 24 follows: 25 Sec. 16-12. - Definitions.26 ***27 263 2 AMSC member shall mean a member of the administration management service 28 class. On or after [effective date of ordinance], the AMSC It will be composed of 29 employees who hold only the following positions: 30 31 32 City Manager 33 City Attorney 34 City Clerk 35 Assistant/Deputy City Manager 36 Finance Director/Chief Financial Officer 37 Chief of Police 38 Planning and Zoning Director 39 Building Director 40 Director of Public Works 41 Chief administrative officer (currently finance office manager) 42 Chief procurement officer (currently purchasing manager) 43 Director of Parks, Recreation and Culture (formerly known as Parks and 44 recreation director) 45 Development Services Director46 Community redevelopment agency director 47 Personnel manager 48 Project manager 49 Special assistant to the manager 50 Superintendent of maintenance 51 Assistant director of parks and recreation 52 Notwithstanding the forgoing, an employee who was employed in one of the following 53 positions on [effective date of ordinance] shall remain a member of the AMSC for as long 54 as they are employed in such position, or another position included in the AMSC after 55 [effective date of ordinance]. Employees initially hired or promoted into the following 56 positions on or after [effective date of ordinance] shall be second tier members of the city57 pension plan: 58 Chief administrative officer (currently finance office manager) 59 Chief procurement officer (currently purchasing manager) 60 Community redevelopment agency director 61 264 3 Personnel manager 62 Project manager 63 Special assistant to the manager 64 Superintendent of maintenance 65 Assistant director of parks and recreation 66 67 ***68 Section 3. Amending Section 16-14 of the Code. Chapter 16, Article II, of the City of South 69 Miami Code of Ordinances is hereby amended by amending Section 16-14, “Pension benefits and 70 retirement date” as follows: 71 Sec. 16-14. - Pension benefits and retirement date.72 (a)Retirement date.The normal retirement date with full unreduced pension 73 benefits for a participant, shall be as follows: 74 * **75 (3)AMSC members.The normal retirement date for AMSC members hired 76 before [September 7, 2021] shall be the earlier of (a) age sixty (60) and 77 completion of five (5) years of credited service; or (b) age fifty-five (55) and 78 completion of twenty (20) years of credited service; or (c) completion of thirty-79 three (33) years of credited service. The normal retirement date for AMSC 80 members hired on or after [September 7, 2021] shall be the earlier of (a) age 81 sixty (60) and completion of ten (10) five (5) years of credited service; or (b) 82 age fifty-five (55) and completion of twenty (20) years of credited service; or 83 (c) completion of thirty-three (33) years of credited service. 84 ***85 Section 4. Amending Section 16-17 of the Code. Chapter 16, Article II, of the City of South 86 Miami Code of Ordinances is hereby amended by amending Section 16-17, “Termination of 87 employment” as follows: 88 ***89 265 4 Sec. 16-17. - Termination of employment.90 (b) Any such participant shall be entitled to elect Option 1 or Option 2, as described 91 below, except that Option 2 shall be automatically considered as having been 92 elected by the participant unless Option 1 is elected before the participant's 93 normal retirement date. 94 Option 1:A cash payment of an amount equal to the aggregate of the 95 contributions made by the participant prior to termination of employment. 96 Provided that police officer participants eligible to withdraw their contributions 97 from this pension plan may only withdraw their contributions without interest. 98 Option 2:For vested participants, pension benefits commencing on what 99 otherwise would have been the normal retirement date of the participant in an 100 amount equal to the greater of that which can be provided by the aggregate of 101 the contributions made by the participant prior to the termination of 102 employment, with credited interest compounded annually at the rate of three (3) 103 percent per annum from the end of the year of payment to the date on which 104 pension benefits commence; or an amount determined in accordance with 105 subsection 16-14(a) or 16-14(b), whichever is applicable. 106 Police officer participants, including bargaining unit employees, shall be one 107 hundred (100) percent vested in the retirement plan upon completion of ten (10) 108 years continuous full-time sworn police service. Accordingly, effective October 109 1, 1993, all police officer participants, including members of the bargaining 110 unit, who are in this plan effective October 1, 1993, and have between ten (10) 111 years and twenty (20) years of continuous sworn police service will be one 112 hundred (100) percent vested. 113 All general employees shall be one hundred (100) percent vested in the pension 114 plan upon completion of ten (10) years of continuous credited service. All 115 second tier members shall be one hundred (100) percent vested in the pension 116 plan upon completion of ten (10) years of continuous credited service. AMSC 117 members hired on or after [September 7, 2021] shall be one hundred (100) 118 percent vested in the pension plan upon completion of ten (10) five (5) years of 119 continuous credited service. AMSC members who are employed on [September 120 7, 2021] shall be one hundred (100) percent vested in the pension plan. General 121 employees and AMSC members who opt to join the defined contribution plan 122 of the City of South Miami shall vest in the defined contribution plan after one 123 (1) year of service. Accordingly, effective October 1, 1995, all general 124 employees who are in this plan as of October 1, 1995 and have ten (10) years 125 or more of continuous service will be one hundred (100) percent vested. 126 ***127 266 5 Section 5. Severability. If any section, clause, sentence, or phrase of this ordinance is for any 128 reason held invalid or unconstitutional by a court of competent jurisdiction, this holding shall not affect 129 the validity of the remaining portions of this ordinance.130 Section 6. Ordinances in Conflict. All ordinances or parts of ordinances and all sections and 131 parts of sections of ordinances in direct conflict herewith are hereby repealed. However, it is not the 132 intent of this section to repeal entire ordinances, or parts of ordinances, that give the appearance of being 133 in conflict when the two ordinances can be harmonized or when only a portion of the ordinance in 134 conflict needs to be repealed to harmonize the ordinances. If the ordinance in conflict can be harmonized 135 by amending its terms, it is hereby amended to harmonize the two ordinances. Therefore, only that 136 portion that needs to be repealed to harmonize the two ordinances shall be repealed. 137 Section 6. Effective Date. This ordinance shall become effective upon enactment.138 PASSED AND ADOPTED this ____ day of _____________, 2023.139 140 ATTEST:APPROVED:141 142 ___________________________________________143 CITY CLERK MAYOR144 145 READ AND APPROVED AS TO FORM, COMMISSION VOTE:146 LANGUAGE, LEGALITY, AND Mayor Fernandez:147 EXECUTION THEREOF Vice Mayor Bonich:148 Commissioner Calle:149 Commissioner Liebman:150 _______________________Commissioner Corey:151 CITY ATTORNEY152 267 A.Description of Proposed Amendment Administration Management Service Class (AMSC) Employees who hold the following positions will belong to the AMSC: City Manger Chief of Police City Attorney Planning and Zoning Director City Clerk Building Director Assistant/Deputy City Manager Director of Public Works Finance Director / Chief Financial Officer Director of Parks, Recreation and Culture Added AMSC Positions Development Services Director Chief administrative officer (currently finance office manager) Chief procurement officer (currently purchasing manager) Community redevelopment agency director Personnel manager Project manager Special assistant to the manager Superintendent of maintenance Assistant director of parks and recreation Normal Retirement Eligibility Vesting Schedule B.An estimate of the cost implementing this amendment (see attachment) C. Actuarial Impact Statement as of October 1, 2022 For AMSC members:the earliest of (1)attainment of age 60 and completion of 5 years of Credited Service,(2) attainment of age 55 and completion of 20 years of Credited Service or (3)completion of 33 years of Credited Service. AMSC members are 100%vested upon completion of 5 years of Credited Service.AMSC members who were employed on September 7, 2021 are 100% vested. In my opinion,the proposed changes are in compliance with Part VII,Chapter 112,Florida Statutes and Section 14, Article X of the Statement Constitution. Chairman, Pension Board Date Members employed in the following positions on the effective date of the ordinance remain members of the AMSC as long as they are employed in such positions or other positions in the AMSC.Employees initially hired or promoted into the following positions on or after the effective date of the ordinance shall be second tier members under the Plan. 268 Actuarial Impact Valuation Statement 10/01/2022 10/01/2022 A.Participant Data 1.Active participants 82 82 2.Retired participants and beneficiaries receiving benefits excluding DROPs 52 52 3.DROP participants 11 11 4.Disabled participants receiving benefits 0 0 5.Terminated vested participants 12 12 6.Annual payroll of active participants 6,262,907$ 6,262,907$ 7.Expected payroll of active employees for the following year 6,262,907$ 6,262,907$ 8.Annual benefits payable to those currently receiving benefits excluding DROPs 1,767,489$ 1,767,489$ 9.Annual benefits payable to DROPs 530,445$ 530,445$ B.Assets 1.Market Value of Assets 49,186,762$ 49,186,762$ 2.Smoothed Value of Assets 55,181,869$ 55,181,869$ C.Liabilities 1.Actuarial present value of future expected benefit payments for active members a.Retirement benefits 22,765,408$ 22,765,408$ b.Vesting benefits 1,957,525 1,957,978 c.Death benefits 134,827 134,852 d.Disability benefits 687,607 687,607 e.Refunds 208,608 208,608 f.Total 25,753,975$ 25,754,453$ 2.Actuarial present value of future expected benefit payments for terminated vested members 1,659,572$ 1,659,572$ 3.Actuarial present value of future expected benefit payments for members currently receiving benefits a.Service retired 21,026,098$ 21,026,098$ b.DROP participants 9,171,064 9,171,064 c.Disability retired 0 0 d.Beneficiaries 176,703 176,703 e.Miscellaneous 103,023 103,023 f.Total 30,476,888$ 30,476,888$ (All Participants) Actuarial Impact Statement as of October 1, 2022 South Miami Pension Plan 1 269 Actuarial Impact Valuation Statement 10/01/2022 10/01/2022 4.Total actuarial present value of future expected benefit payments 57,890,435$ 57,890,913$ 5.Actuarial accrued liabilities 52,629,740$ 52,629,799$ 6.Unfunded actuarial accrued liabilities (2,552,129)$ (2,552,070)$ D.Statement of Accumulated Plan Benefits 1.Actuarial present value of accumulated vested benefits a.Participants currently receiving benefits including DROP participants 30,373,865$ 30,373,865$ b.Other participants 13,778,808 13,778,818 c.Total 44,152,673$ 44,152,683$ 2.Actuarial present value of accumulated non- vested Plan benefits 2,290,368 2,290,486 3.Total actuarial present value of accumulated Plan benefits 46,443,041$ 46,443,169$ E.Pension Cost 1.Total normal cost (including expenses)945,291$ 945,337$ 2.Payment required to amortize unfunded liability (280,556) (280,551) 3.Interest adjustment 25,049 25,051 4.Total preliminary required contribution 689,784$ 689,837$ 5.Total required contribution 1,105,262$ 1,105,315$ 6.Item 5 as a percentage of payroll 17.6%17.6% 7.Estimated member contributions 402,452$ 402,452$ 8.Item 7 as a percentage of payroll 6.4%1 6.4%1 9.Estimated State contributions 79,228$ 79,228$ 10.Item 9 as a percentage of payroll 1.3%1 1.3%1 11.Net amount payable by City 623,582$ 623,635$ 12.Item 11 as a percentage of payroll 10.0%1 10.0%1 1 Percent of expected 2023-2024 covered payroll ($6,262,907) Actuarial Impact Statement as of October 1, 2022 (All Participants) South Miami Pension Plan 2 270 Actuarial Impact Valuation Statement 10/01/2022 10/01/2022 F.Disclosure of Following Items: 1.Actuarial present value of future salaries - attained age 41,694,907$ 41,694,907$ 2.Actuarial present value of future employee contributions - attained age 2,571,628$ 2,571,628$ 3.Actuarial present value of future contributions from other sources N/A N/A 4.Amount of active members' accumulated contributions 4,412,073$ 4,412,073$ 5.Actuarial present value of future salaries and future benefits at entry age N/A N/A 6.Actuarial present value of future employee contributions at entry age N/A N/A Actuarial Impact Statement as of October 1, 2022 (All Participants) South Miami Pension Plan 3 271 Unfunded Actuarial Current Unfunded Amortization Remaining Funding Accrued Liabilities Liabilities Payment Period 10/01/2015 Combined Bases *(1,545,410)$ (184,845)$ 12 years 10/01/2016 Actuarial Loss / (Gain)(548,118) (50,787) 19 years 10/01/2016 Assumption Change 565,590 52,406 19 years 10/01/2017 Actuarial Loss / (Gain)(372,427) (33,700) 20 years 10/01/2018 Actuarial Loss / (Gain)(1,710,150) (151,446) 21 years 10/01/2018 Plan Amendment - Ord. #35-19-2348 877,943 77,748 21 years 10/01/2019 Actuarial Loss / (Gain)(977,162) (84,849) 22 years 10/01/2019 Assumption Change (291,574) (25,318) 22 years 10/01/2020 Actuarial Loss / (Gain)(64,728) (5,520) 23 years 10/01/2021 Actuarial Loss / (Gain)(186,359) (15,634) 24 years 10/01/2022 Actuarial Loss / (Gain)299,082 24,715 25 years TOTAL (3,953,313)$ (397,230)$ 10/01/2017 Initial Base 109,690$ 10,164$ 19 years 10/01/2018 Actuarial Loss / (Gain)35,076 3,106 21 years 10/01/2018 Plan Amendment - Ord. #35-19-2348 131,108 11,611 21 years 10/01/2019 Actuarial Loss / (Gain)(196,595) (17,071) 22 years 10/01/2019 Assumption Change (16,581) (1,440) 22 years 10/01/2020 Actuarial Loss / (Gain)(127,422) (10,867) 23 years 10/01/2021 Actuarial Loss / (Gain)9,025 757 24 years 10/01/2022 Actuarial Loss / (Gain)9,046 748 25 years TOTAL (46,653)$ (2,992)$ 10/01/2017 Combined Bases *213,907$ 19,820$ 19 years 10/01/2018 Actuarial Loss / (Gain)558,242 49,436 21 years 10/01/2018 Plan Amendment - Ord. #23-19-2336 253,288 22,430 21 years 10/01/2018 Plan Amendment - Ord. #35-19-2348 552,415 48,920 21 years 10/01/2019 Actuarial Loss / (Gain)(534,902) (46,446) 22 years 10/01/2019 Assumption Change (69,424) (6,028) 22 years 10/01/2020 Actuarial Loss / (Gain)168,313 14,354 23 years 10/01/2020 Plan Amendment - Ord. #18-21-2408 280,780 23,946 23 years 10/01/2021 Actuarial Loss / (Gain)198,923 16,688 24 years 10/01/2022 Actuarial Loss / (Gain)63,719 5,265 25 years 10/01/2022 Plan Amendment 59 5 25 years TOTAL 1,685,320$ 148,390$ * Combined per Internal Revenue Code Regulation 1.412(b)-1 Actuarial Impact Statement as of October 1, 2022 General Employees Tier 1 AMSC General Employees Tier 2 South Miami Pension Plan 4 272 Unfunded Actuarial Current Unfunded Amortization Remaining Funding Accrued Liabilities Liabilities Payment Period 10/01/2018 Combined Bases *(546,609)$ (53,503)$ 17 years 10/01/2018 Plan Amendment - Ord. #38-19-2351 386,461 34,224 21 years 10/01/2019 Actuarial Loss / (Gain)309,099 26,840 22 years 10/01/2019 Assumption Change (1,040,619)(90,359)22 years 10/01/2020 Actuarial Loss / (Gain)98,719 8,419 23 years 10/01/2021 Actuarial Loss / (Gain)(195,740)(16,421)24 years 10/01/2022 Actuarial Loss / (Gain)751,265 62,081 25 years TOTAL (237,424)$ (28,719)$ * Combined per Internal Revenue Code Regulation 1.412(b)-1 Shelly L. Jones, A.S.A.Jennifer M. Borregard, E.A. Enrollment Number: 23-08646 Enrollment Number: 23-07624 Dated: October 12, 2023 Police Officers This actuarial valuation and/or cost determination was prepared and completed by us or under our direct supervision, and we acknowledge responsibility for the results.To the best of our knowledge,the results are complete and accurate, and in our opinion,the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII,Chapter 112,Florida Statutes.Based upon our understanding of the Plan,there is no benefit or expense to be provided by the Plan and/or paid from the Plan's assets for which liabilities or current costs have not been established or other wise provided for in the valuation.All known events or trends which may require material increase in Plan costs or required contribution rates have been taken into account in the valuation. Actuarial Impact Statement as of October 1, 2022 South Miami Pension Plan 5 273 A.Effective Date: B.Eligibility Requirements: 1.General Employees Tier 1: Tier 2: 2.Police Officers 3.Administration Management Service Class (AMSC) City Manager Planning and Zoning Director City Attorney Building Director City Clerk Director of Public Works Assistant / Deputy City Manager Director of Parks, Recreation and Culture Finance Director / Chief Financial Officer Development Services Director Chief of Police Chief Administrative Officer (currently Finance Office Manager)Project Manager Chief Procurement Officer (currently Purchasing Manager)Special Assistant to the Manager Community Redevelopment Agency Director Superintendent of Maintenance Assistant Director of Parks and Recreation Personnel Manager Employees who are employed in the following positions on the effective date of the Ordinance remain members of the AMSC for as long as they are employed in such positions or other positions included in the AMSC.Employees initially hired or promoted into the following positions on or after the effective date of the Ordinance will be second tier members under the Plan: Regular full-time Police Officer is eligible to enter the Plan as of date of employment. Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: Outline of Principal Provisions of the Retirement Plan October 1, 1965. Most recently amended by Ordinance 15-22-2436 adopted June 21, 2022. Regular full-time employee hired before October 1,2011 is eligible to enter the Plan following the completion of six months of Credited Service and attainment of age 20. Regular full-time employee hired on or after October 1,2011 and not participating in the Plan as of October 1,2016 who elects to join or fails to make any election within ninety (90)days from September 20,2016 is eligible to enter the Plan as a Tier 2 employee as of October 1, 2016. Regular full-time employee hired on or after October 1,2016 who elects to join or fails to make any election within ninety (90)days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. Any regular full-time employee who previously entered into the Defined Contribution (DC)Plan may opt-out of the DC Plan and elect to join the Plan as a Tier 2 member or as their respective classification at the time they elect to join the Plan during an annual open enrollment period. South Miami Pension Plan 6 274 C.Credited Service: 1.General Employees and AMSC 2.Police Officers D.Final Monthly Compensation (FMC): Effective October 1,2011,Final Average Compensation for General Employees is 1/60th of the final 60 consecutive months of basic compensation,provided it is not less than the Final Average Compensation as of September 30,2011 based on the definition above.Basic compensation shall mean base wages and salaries, excluding commissions,overtime pay,bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1,2011,Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5)years of basic compensation,provided it is not less than the Final Average Compensation as of September 30,2011 based on the definition above.Basic compensation shall mean base wages and salaries,including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave,extra duty or special detail work,shift differential, assignment pay, bonuses and any other forms of additional compensation earned outside of base wages. Outline of Principal Provisions of the Retirement Plan Continuous employment.Credited service shall exclude continuous employment prior to Plan participation as follows:(1)If employed prior to October 1,1973,credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2)If employed on or after October 1,1973,credited service shall exclude the first six (6)months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of date of Plan entry election date or date of hire. Continuous employment.For Police Officers who did not participate when first eligible for the Plan,Credited Service shall exclude continuous employment prior to Plan participation as follows:(1)If employed prior to October 1,1973,Credited Service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25.(2)If employed on or after October 1,1973,Credited Service shall exclude the first six (6)months of continuous employment and continuous employment prior to age 20. Final Average Compensation is 1/36th of the final 36 consecutive months of compensation.For Police Officers, not less than 1/5th of the highest five (5)years out of the last (10)ten years of compensation.Compensation shall mean regular wages and salaries,excluding bonuses,vacation,sick leave and other additional compensation. South Miami Pension Plan 7 275 D.Final Monthly Compensation (FMC) (cont'd): E.Normal Retirement: 1.Eligibility: a.General Employees: b.Police Officers: c.AMSC: 2.Benefit: The monthly Plan benefit is the product of: a.FMC, b.Credited Service during the appropriate period and c.The appropriate benefit percentage Attainment of age 65 and completion of ten (10)years of Credited Service or completion of thirty-three (33)years of Credited Service regardless of age for Tier 2 General Employees. Attainment of age 55 and completion of ten (10)years of Credited Service or completion of twenty-five (25) years of Credited Service regardless of age. Attainment of age 60 and completion of five (5)years of Credited Service, attainment of age 55 and completion of twenty (20)years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age. Outline of Principal Provisions of the Retirement Plan Effective October 1,2016,Final Average Compensation for members covered under the Miami-Dade County Police Benevolent Association Upper-Collective Bargaining Union (Lieutenants &Captains)collective bargaining agreement is the best five (5)years of basic compensation,provided it is not less than the Final Average Compensation as of September 30,2016 based on the definition above.Basic compensation shall mean base wages and salaries,including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave,extra duty or special detail work,shift differential,assignment pay,bonuses and any other forms of additional compensation earned outside of base wages. Final Average Compensation for Tier 2 General Employees shall be the average of the highest eight (8)years of credited service. Attainment of age 55 and completion of ten (10)years of Credited Service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10)years of Credited Service for benefits accrued after September 30,2011,including increases in the accrued benefit as of September 30,2011 due to increases in the Final Average Compensation. Final Average Compensation for AMSC shall be the average of the highest five (5) years of credited service. South Miami Pension Plan 8 276 E.Normal Retirement (cont'd): 2.Benefit (cont'd): The appropriate benefit percentages are: a.General Employees For Credited Service Percentage Through September 30, 1999 2.50% October 1, 1999 through September 30, 2011 2.75% October 1, 2011 and thereafter 2.25% b.Police Officers 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, 2001 through September 30, 2002 2.80% October 1, 2002 through September 30, 2003 2.90% October 1, 2003 and thereafter 3.00% c.General Employees (Tier 2)For Credited Service Percentage October 1, 2016 and thereafter 1.60% d.AMSC For Credited Service Percentage October 1, 2016 and thereafter 3.00% F.Supplemental Benefit: G.Early Retirement for Police Officers: 1.Eligibility: 2.Benefit: Outline of Principal Provisions of the Retirement Plan A cost-of-living supplemental benefit based upon the consumer price index is provided upon retirement.The cumulative increase is limited to 3% per year. No cost-of-living supplemental benefit is provided for Tier 2 General Employees and AMSC members who retired or entered the DROP prior to October 1,2019.No cost-of-living supplemental benefit is provided on the portion of the benefit accrued after September 30,2011 for Tier 1 General Employees who retired or entered the DROP prior to October 1, 2019. Attainment of age 50 and completion of 10 years of Credited Service. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date,reduced 3%for each year that the benefit commencement date precedes Normal Retirement. South Miami Pension Plan 9 277 H.Delayed Retirement: 1.Eligibility: 2.Benefit: I.Disability Retirement: 1.Eligibility: 2.Benefit: J.Pre-Retirement Death Benefit: K.Benefit Upon Termination of Service: 1. a. b. 2.Vesting Schedule: Years of Credited Service AMSC Members All Other Members Less than 5 0%0% 5 - 9 years 100%0% 10 or more years 100%100% 3.Refund Option: Benefit payable at Normal Retirement equal to the greater of: Upon vesting:The beneficiary will receive benefit payable as if the deceased member had terminated employment on the day before death and survived to the earliest retirement date and elected the 50%Joint and Contingent form of payment reduced for early retirement and died the next day.The beneficiary may elect to defer payment until the deceased member’s normal retirement date. Accrued benefit based upon FMC and Credited Service as of date of disability,actuarially reduced as for Early Retirement for early commencement. Prior to vesting: Refund of member’s accumulated Employee Contribution. Outline of Principal Provisions of the Retirement Plan Retirement subsequent to Normal Retirement Date. Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date. Totally and permanently disabled for a six month period while actively employed. AMSC members who have completed three (3)years of continuous Credited Service as of June 18,2019 are 100% vested. AMSC members employed on September 7, 2021 are 100% vested immediately. No supplemental benefit shall be payable to vested terminees. Accrued benefit based upon FMC and Credited Service as of date of termination times the vesting percentage shown below, or Benefit which can be supported by the accumulated Member Contributions with interest to Normal Retirement Date. A terminated member may elect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits. Vesting Percentage South Miami Pension Plan 10 278 L.Member Contributions: M.Normal Form of Retirement Income: N.Deferred Retirement Option Plan (DROP): 1. 2. 3. 4. O.Changes Since Previous Actuarial Valuation: 1.Eligibility Requirements for AMSC were: City Manager City Attorney City Clerk Parks and Recreation Director Assistant / Deputy City Manager Assistant Director of Parks and Recreation Finance Director / Chief Financial Officer Community Redevelopment Agency Director Chief of Police Personnel Manager Planning and Zoning Director Project Manager Building Director Special Assistant to the Manager Director of Public Works Superintendent of Maintenance Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: Chief Administrative Officer (currently Finance Office Manager) Chief Procurement Officer (currently Purchasing Manager) Should the City contribution for Police Officers be actuarially determined to exceed 7.5%,not including expenses, both the City and the Police Officers will share equally in the amount in excess of 7.5% but not more than 12.0%. Outline of Principal Provisions of the Retirement Plan Members contribute 7.0%(3.0%for Tier 2 General Employees and 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,both the City and the General Employees (other than Tier 2 General Employees and AMSC)will share equally in the amount in excess of 7.0%.General Employees (other than Tier 2 General Employees and AMSC) Contributions are capped at 10% of basic annual compensation as of October 1, 2016. The maximum period of participation in the DROP is sixty (60) months. A member's account in the DROP shall be credited monthly with interest in an amount equal to 50%of the net (gross return minus investment expense)yearly interest earned by the Plan for the preceding fiscal year, up to a maximum of 5%and a minimum of 0%.Effective June 21,2022,the maximum interest credited to a member's DROP account shall be 6%. No payment may be made from the DROP until the member actually separates from service with the City. The DROP account balance may be distributed in a lump sum,periodic payments,an annuity or a combination thereof. Eligibility: Attainment of normal retirement date. The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated Employee Contributions. South Miami Pension Plan 11 279 O.Changes Since Previous Actuarial Valuation (cont'd): 2.Normal Retirement eligibility for AMSC was: 3.Vesting Schedule for AMSC was: Years of Vesting Credited Service Percentage Less than 10 0% 10 or more years 100% Attainment of age 60 and completion of ten (10)years of Credited Service (attainment of age 60 and completion of five (5)years of Credited Service if an AMSC member prior to September 7,2021), attainment of age 55 and completion of twenty (20)years of Credited Service or completion of thirty- three (33) years of Credited Service regardless of age. AMSC members who have completed three (3)years of continuous Credited Service as of June 18,2019 are 100% vested. AMSC members employed on September 7, 2021 are 100% vested immediately. Outline of Principal Provisions of the Retirement Plan South Miami Pension Plan 12 280 Actuarial Assumptions and Methods Used in the Valuation A.Mortality General Employees including AMSC Mortality Assumptions: Sample Ages (2022)Male Female Male Female 55 32.75 35.17 28.83 32.55 60 27.89 30.14 24.73 28.00 62 25.99 28.16 23.10 26.17 Sample Ages (2042)Male Female Male Female 55 34.38 36.65 30.85 34.33 60 29.45 31.58 26.59 29.67 62 27.52 29.57 24.90 27.79 Police Officer Mortality Assumptions: For healthy participants during employment,PUB-2010 Headcount Weighted General Below Median Employee Mortality Table,separate rates for males and females,set back 1 year for males,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment,PUB-2010 Headcount Weighted General Below Median Healthy Retiree Mortality Table,separate rates for males and females,set back 1 year for males,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled participants,PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table,separate rates for males and females, both set forward 3 years, without projected mortality improvements. Pre-retirement Post-retirement For healthy participants during employment,PUB-2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table,both set forward 1 year,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment,PUB-2010 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table,both set forward 1 year,with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled participants,80%PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table / 20%PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table,separate rates for males and females, without projected mortality improvements. Future Life Future Life Expectancy (Years)Expectancy (Years) Expectancy (Years)Expectancy (Years) Pre-retirement Post-retirement Future Life Future Life South Miami Pension Plan 13 281 Actuarial Assumptions and Methods Used in the Valuation A.Mortality (cont'd) Police Officer Mortality Assumptions (cont'd): Sample Ages (2022)Male Female Male Female 55 30.62 34.47 27.78 31.35 60 25.66 29.40 23.18 26.55 62 23.73 27.39 21.44 24.71 Sample Ages (2042)Male Female Male Female 55 32.25 35.96 29.67 33.18 60 27.23 30.84 24.97 28.30 62 25.27 28.81 23.18 26.42 B.Investment Return to be Earned by Fund C.Allowances for Expenses or Contingencies D.Employee Withdrawal Rates Service Police General / AMSC 1 - 2 12.00 20.00 3 - 6 8.00 9.25 7 - 10 8.00 5.00 11 & Over 3.50 5.00 E.Disability Rates 1985 Disability Study, Class 1 with separate rates for females. Expectancy (Years)Expectancy (Years) Expectancy (Years)Expectancy (Years) Pre-retirement Post-retirement Future Life Future Life 7.375% (net of investment expenses), compounded annually - includes inflation at 2.75%. Actual expenses paid in previous year. Withdrawal rates for males and for females were used in accordance with the following illustrative example based upon number of years of service: Per 100 Employees Withdrawal Rates Future Life Future Life Pre-retirement Post-retirement South Miami Pension Plan 14 282 F.Marital Assumptions G.Salary Increase Factors Police 5.25% 3.75% 3.75% 3.75% H.Increase in Covered Payroll I.Retirement Rates Police 5% 10% Age Police General *AMSC ** 55 - 59 25%10%25% 60 - 61 25%10%25% 62 - 64 40%25%35% 65 - 66 100%25%35% 67 & above 100%100%100% Service Police 25 years 100% 20 & over 3.75% 10 - 14 4.75% 15 - 19 4.25% Service General / AMSC 0 - 9 5.25% Current salary is assumed to increase in accordance with the following table based upon number of years of service - includes wage inflation of 3.25%. Actuarial Assumptions and Methods Used in the Valuation 100%of active members are assumed to be married.Where applicable,females are assumed to be three years younger than their male spouses. 4.0%per year,limited to average annual increase over most recent ten years (-0.3%)but not less than 0.0%for Police Officers. No increase in covered payroll is assumed for General Employees including AMSC. Rates of Early Retirement for Police Officers were used in accordance with the following table. Rates of Normal Retirement were used in accordance with the following tables. * Rates are 25% for Tier 2 members for each year upon meeting 33 years of service until 100% at age 67. General Employees who retire prior to age sixty (60)but after attainment of ten (10)years of Credited Service (55 & 10) are assumed to receive an actuarially reduced benefit payable immediately upon retirement. Years Preceding Normal Retirement 1 - 6 7 - 10 ** Rates are 25% below the age of 62 and 35% between the ages of 62 and 66 upon meeting 33 years of service until 100% at age 67. South Miami Pension Plan 15 283 J.Cost of Living Increases K.Valuation of Assets L.Cost Methods Normal Retirement, Termination, Disability and Pre-Retirement Death Benefit: Entry-Age-Actuarial Cost Method Vested Normal Retirement, Termination, Disability, and Death Benefits: Unit Credit Cost Method M.Disclosure of Assumptions N.Changes Since Previous Actuarial Valuation None. The investment return,salary increases,withdrawal and retirement rates were updated based on the experience study performed for the period October 1,2005 -May 31,2013.The mortality rates are based upon the July 1, 2022 FRS Actuarial Valuation, as required under F.S., Chapter 2015-157. Actuarial Assumptions and Methods Used in the Valuation Under this method the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits,assuming the Plan had always been in effect.The normal cost for the Plan is the sum of the individual normal costs for all active employees.The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the Plan is the excess of the actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs.The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrued liability over the smoothed value of assets of the Plan. Future cost of living increases for General Employees (including Tier 1 and Tier 2 General Employees),AMSC and Police Officers are assumed to be 3.0% per annum. The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 20%per year.The smoothed value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80%of the fair market value of Plan assets and whose upper limit is 120% of the fair market value of Plan assets. Under this method,the actuarial present value of vested accrued benefits is an amount calculated to be the sum of the present values of each individual's vested accrued or earned benefit under the Plan as of the valuation date. Each individual's calculation is based on pay and service as of the valuation date. South Miami Pension Plan 16 284 285 MIAMI-DADE STATE OF FLORIDA COUNTY OF MIAMI-DADE: Before the undersigned authority personally appea red GUILLERMO GARCIA, who on oath says th at he or she is the DIR ECT OR OF OPERATIONS , Lega l Notices of the Mia mi Daily Busin ess Review 1/k/a Mi ami Review , of Miami -Dade County , Flori da ; that the attac hed copy of adve rtisemen t, being a Lega l Adve rt isemen t of Not ice in the ma tter of CITY OF SOUTH MIAMI -PUBLIC HEARING -OCT . 17, 2023 in the XXXX Court , wa s published in a new spaper by print in the issues of Mi ami Daily Business Rev iew f/k/a Miami Review on 10/06/2023 Affia nt further says that the newspaper comp li es with all for publicat ion in chapter 50 , Florida Swo o and subscribed before me this 6 day of GUILLERMO GARCIA personally know n to me _.-·fl¾t--, CHRISTINA LYN N;' VIX-DORLEANS i;!~ / Comm ission # Hf ! 332954 '·?:,::;,of ExpirGs Novemb r.r ·19, 2026 '•,.,.,.,•' CITY OF SOUTH MIAMI, FLORIDA CITY COMMISSION NOTICE OF PUBLIC HEARING Notice is hereby given that the City Commission will hold a public hearing on Tuesda October 17 2023 at 7:00 .m. to consider the following public hearing item(s): A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI , FLORIDA, APPROVING A DEVELOPMENT AGREEMENT WITH ANCHOR MIAMI IRF OWNER, LLC, AND SOUTH MIAMI HOSPITAL, INC., FOR THE PROPERTY LOCATED AT 6233 SUNSET DRIVE , 6201 SUNSET DRIVE, AND 7150 SW 62 AVENUE , SOUTH MIAMI, FLORIDA, PURSUANT TO SECTION 20-8.9 OF THE LAND DEVELOPMENT CODE; AUTHORIZING THE CITY MANAGER TO EXECUTE THE DEVELOPMENT AGREEMENT;; PROVIDING FOR CORRECTIONS, IMPLEMENTATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A MULTI -YEAR SOLE SOURCE RENEWAL AGREEMENT . WITH ICON ENTERPRISES, INC ., D/B/A CIVICPLUS FOR WEBSITE SUPPORT, MAINTENANCE AND HOSTING SERVICES, AND SUBSCRIPTIONS FOR AUDIOEYE , A PROGRAM THAT ENABLES THE CITY WEBSITE TO BE MORE ADA ACCESSIBLE , AND SEECLICK FIX UNDER THE CITY BANNER AS SOMI CONNECT, A 311-REQUEST MANAGEMENT APPLICATION ASSISTING CITY STAFF TO COMMUNICATE WITH RESIDENTS , MANAGE TICKETS AND RESOLVE ISSUES PROVIDING FOR IMPLEMENTATION; CORRECTIONS; SEVERABIUTY; AND AN EFFECTIVE DATE. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLOR IDA, AUTHORIZING THE CITY MANAGER ·ro ENTER INTO A MULTI -YEAR AGREEMENT FOR THE ENFORCEM ENT OF SCHOOL ZONE SPEED LIMITS, PROVIDING FOR IMPLEMENTATION , CORRECTIONS , SEVERABIUTY AND AN EFFECTIVE DATE. MIAMI-DAD E STATE OF FLORIDA COU NTY OF MIA MI-DADE : Befo re the undersigned au thority personally appeared GUIL LERMO GA RCIA , who on oa th says that he or she is the D\RECT OR OF OPERATIONS , Legal Notices of the Miami Daily Busi ness Review flk/a Miami Review, of Miami-Dade County , Florida ; that the attached copy of advertisement , be ing a Legal Advertiseme nl of Notice in the matter of CITY OF SOU TH MIAMI-PUBLI C HEAR ING -OCT. 17 , 2023 in the XXXX Court , was published in a newspaper by print in the issues of Miam i Daily Business Rev iew flk/a Miami Review on 10106/20 23 Affiant further says that the newspaper complies with all for publication in chapter 50 , Florida o and subscribed before me th is 6 day of OCTOBER , A.D . 2023 GU ILLERMO GARCIA person ally known to me •••• ~'y'p •••• '/~AJ-"'~~~'" CHRIST INA LYN N ~V I X -DO R L EANS ~~: . :'~ Commission # Hf ! 332 954 ";". "J-j" ,t:;."'f: ·'1!,'1.~·~,i~~~>-Expir6s Novembr.' '19, 2026 CITY OF SOUTH MIAMI, FLORIDA CITY COMMISSION NOTICE OF PUBLIC HEARING Notice is hereby given that the City Commission will hold a public hearing on Tuesda October 17 2023 at 7:00 .m . to consider the following publi c hearing ltem(s): A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, APPROVING A DEVELOPMENT AGREEMENT WITH ANCHOR MIAMI IRF OWNER, LLC, AND SOUTH MIAMI HOSPITAL, INC., FOR THE PROPERTY LOCATED AT 6233 SUNSET DRIVE , 6201 SUNSET DRIVE , AND 7150 SW 62 AVENUE, SOUTH MIAMI , FLORIDA, PURSUANT TO SECTION 20-8.9 OF TH E LAND DEVELOPMENT CODE ; AUTHORIZING THE CITY MANAGER TO EXECUTE THE DEVELOPMENT AGREEMENT;; PROVIDING FOR CORRECTIONS, IMPLEMENTATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE. A RESOLUTlON AUTHORIZING THE CITY MANAGER TO ENTER INTO A MULTI-YEAR SOLE SOURCE RENEWAL AGREEMENT · WITH ICON ENTERPRISES, INC., D/B/A CIVICPLUS FOR WEBSITE SUPPORT, MAINTENANCE AND HOSTING SERVICES , AND SUBSCRIPllONS FOR AUDIOEYE , A PROGRAM THAT ENABLES THE CITY WEBSITE TO BE MORE ADA ACCESSIBLE, AND SEECLICK FIX UNDER THE CITY BANNER AS SOM I CONNECT, A 311-REQUEST MANAGEMENT APPLICATION ASSISTING CITY STAFF TO COMMUNICATE WITH RESIDENTS , MANAGE TICKETS AND RESOLVE ISSUES PROVIDING FOR IMPLEMENTATION ; CORRECTIONS; SEVERABILITY ; AND AN EFFECTIVE DATE. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER 'TO ENTER INTO A MULTI-YEAR AGREEMENT FOR THE ENFORCEMENT OF SCHOOL ZONE SPEED LIMITS , PROVIDING FOR IMPLEMENTAllON, CORRECTIONS , SEVERABILITY AND AN EFFECTIVE DATE. 286 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA , AMENDING ARTICLE Ill 'ZONING REGULATIONS ', SECTION 20-3.6(L) OF THE LANO DEVELOPMENT CODE, TO PROHIBIT STORAGE ANO PARK ING OF BOATS WITHIN THE FRONT AND SIDE STREET YARDS OF RESIDENTIAL PROPERTY; PROVIDING FOR CORRECTIONS; SEVERABILITY; CONFLICTS; IMPLEMENTATION; ANO AN EFFECTIVE DATE. AN ORDINANCE OF rHE CITY COMMISSfON OF THE CITY OF SOUTH MIAMI, FLORIDA , AMENDING THE SOUTH MIAMI PENSION PLAN; BY AMENDING CHAPTER 16 'PENSIONS ', ARTICLE II 'CITY PENSION PLAN ', SECTION 16-12, 'DEFINITIONS '; SECTION 16-14, 'PENSION BENEFITS AND RETIREMENT DATE "; AND BY AMENDING SECTION 16-17, 'TERMINATION OF EMPLOYMENT'; AND PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE ; PROVIDING FOR CONFLICTS; AND PROVIDING FORAN EFFECTIVE DATE. The hearing will be held at Ci Hall Commission Chambers 6130 Sunset Drive, South Miami, Florida 33143 Commission members will partic ipate in Chambers or by video conferencing through the Zoom platfom, and members of the public may join the meeting via Zoom at (!:!!!J:ls:I zoom.us/i 3056636338 , by phone by calling +1-786-635-1003 and entering Meeting ID: 3056636338 when prompted , or in person in the Commission Chambers , and where their appearance will be broadcast on the Zoom platform, and where they can part icipate. All interested parties are Invited to attend and will be heard. For further infom,ation, please contact the City Clerk's Office at: 305-663-6340. Pursuant to Section 286.0105, Fla. Stat., the City hereby advise s the public that if a person decides to appeal any decision made by the Commission with respect to this matter, such person l'!lUSt ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based . This notice does not constitute consent by the City for the introduction or admission of otherwise inadmissible or irrelevant evidence , nor does. it authorize challenges or appeals not ot~erwise allowed by law. WA: To request a modification to a policy, practi ce or procedure or to re- :iuest an auxiliary aide or service in order to participate in a City program, 1ctivity or eve.nt, you must on or before 4:00 p.m. 3 business days before 'he meeting (not counting the day of the meeting) deliver your request to :he City Cieri< by telephone: 305-663 -6340, by mail at 6130 Sunset Drive , 3outh Miami, Florida or emall at npayne@southmiamlfl.gov. 10/6 Nkenga A. Payne, CMG, FCRM City Cieri< 23-83/0000687681 M ,. AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORID.A:, AMENDING ARTICLE III 'ZON /NG REGULATIONS ', SECTION 20-3.6(L) OF THE LAND DEVELOPMENT CODE, TO PROHIBIT STORAGE AND PARKING OF BOATS WITHIN THE FRONT AND SIDE STREET YARDS OF RESIDENTIAL PROPERTY; PROVIDING FOR CORRECTIONS; SEVERABILITY; CONFLICTS; IMPLEMENTATION; AND AN EFFECTIVE DATE. AN ORDINANCE OF tHE CITY COMMISSfoN OF THE CITY OF SOLITH MIAMI, FLORIDA , AMENDING THE SOLITH MIAMI PENSION PLAN; BY AMENDING CHAPTER 16 'PENS IONS ', ARTICLE II 'CITY PENSION PLAN ', SECTION 16-12, 'OEFINITIONS '; SECTION 16-14, 'PENSION BENEFITS AND RETIREMENT OATE '; AND BY AMENDING SECTION 16-17, 'TERMINATION OF EMPLOYMENT '; AND PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLU SIO N IN THE CODE; PROVIDING FOR CONFLICTS; AND PROVIDING FORAN EFFECTIVE DATE. The hearing will be held at ~all Commission Chambers, 6130 Sunset Drive. South Miami. Aorida 33143_ Commission members will participate in Chambers or by video conterenclng through the Zoom platform and members of the public may join the meeting via Zoom at (!:!ttps://zoom.usfi/30566363 38), by phone by calling +1-786-635-1003 and entering Meeting ID: 3056636338 when prompted, or in person in the Commission Chambers, and where their appearance will be broadcast on the Zoom platfonm, and where they can participate . All interested parti es are invited to attend and will be heard . For further information, please contact the City Clerk 's Office at: 305-663-6340. Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the public that i1 a person decides to appeal any decision made by the Commission with respect to this matter, such person J'!1ust ensure that a veroatlm record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the introduction or admission of otherwise Inadmissible or irrelevant evidence, nor does. it authorize challenges or appeals not ot~erwise allowed by law. WA: To request a modification to a policy, practice or procedure or to re- ~uest an auxiliary aide or service in order to participate in a City program, lctivity or event, you must on or before 4:00 p.m. 3 business days before :he meeting (not counting the day of the meeting) deliver your request to :he-City Clerk by telephone: 305-663-6340, by mail at 6130 Sunset Drive , 30uth Miami, Florida or email at npayne@southmiamifl.gov . 10/6 Nkenga A. Payne, CMC, FCRM City Clerk 23-83/0000687681 M SUNDAY OCTOBER 8 2023 NEIGHBORS ...................................................................................................15SE Nearly 20 years ago, back-to-back hurricanes left the old Flamingo Lodge at Everglades Na- tional Park in ruins.Now, the famed lodge is finally ready to reopen. Park officials will cele- brate the grand opening on Oct.2 7.Flamingo 2.0 is elevated on stilts and made from shipping con- tainers.Park officials said its 24 rooms and new restaurant are energy- efficient and built to with- stand flooding. The old pink visitor center,also damaged by Hurricanes Katrina and Wilma,reopened in July. Lodge reservations are now being accepted for stays beginning Nov.1. Summer and winter rates start at $159 a night.Win- ter and spring rates start at $2 59. National Park Service (Artist’s rendering) Cabins built from shipping containers will replace the old lodge,according to this proposed design. Everglades National Park’s old lodge ready to reopen 20 years later BY JENNY STALETOVICH WLRN Biscayne National Park is asking visitors to weigh in on proposed fee changes for services at Boca Chita and Elliott Keys. It would include a new docking fee and a flat camping fee.Proceeds would be used to improve visitor services and better address trash pick-up and disposal,dock repair, resource damage miti- gation and facilities main- tenance. In a statement to WLRN,Biscayne National Park officials say the pro- posed fees would help its team improve the visitor experience and manage- ment of the remote is- lands. The public comment period runs from Sept.2 2 to Oct.2 3. Biscayne National Park weighs fee changes at Boca Chita, Elliott Keys BY SHERRILYN CABRERA WLRN PHOTO BY NEIL MONTANUS/NPS Boca Chita Key,once a millionaire's retreat,is now the park's most popular island. 287