04-21-09 Item 141
ORDINANCE NO.
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AN ORDINANCE OF THE MAYOR AND CITY
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COMMISSION OF THE CITY OF SOUTH MIAMI,
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FLORIDA AMENDING THE CITY OF SOUTH MIAMI
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PENSION PLAN, PROVIDING FOR A RESTATEMENT OF
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THE PLAN TO CONSOLIDATE THE VARIOUS
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AMENDMENTS MADE OVER TIME TO THE PLAN AND
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TO CLARIFY THE PROVISIONS OF THE PLAN;
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PROVIDING ADMINISTRATIVE AMENDMENTS TO THE
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PLAN TO COMPLY WITH STATE AND FEDERAL
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REQUIREMENTS; PROVIDING FOR SEVERABILITY;
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PROVIDING. FOR CODIFICATION; AND PROVIDING
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FOR AN EFFECTIVE DATE.
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WHEREAS, the City of South Miami desires to provide a restatement of the Pension
17 Plan to consolidate amendments and revisions adopted over the course of the last ten years since
18 the Plan was originally adopted; and
19 WHEREAS, certain provisions of state and federal laws are required to maintain tax
• 20 qualified status; and
21 WHEREAS, the City recognizes that such pension plan restatement is a desirable action
22 to clarify the various provisions of the Plan; and
23 WHEREAS, the City Commission has received and reviewed an actuarial impact
24 statement related to such restatement.
25 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
26 CITY OF SOUTH MIAMI, FLORIDA, THAT:
27 Section I. Part I, Provisions governing the South Miami Pension Plan,
28 Chapter 16, Article Il, of the South Miami Code of Ordinances is hereby amended and restated to
29 read as follows:
30 Part I. Provisions governing the South Miami Pension Plan.
• 31 Chapter 16 - Pensions
I ARTICLE II - CITY PENSION PLAN
• 2
3 See. 16 -11. Plan established.
4
5 A pension plan is hereby established and placed under the management of a pension
6 Board of Trustees for the purpose of providing retirement allowances for employees of the City
7 of South Miami, Florida, and shall be known as South Miami Pension Plan." The effective date
8 of the plan shall be October 1, 1965. If any provision of this article or the application thereof to
9 any person or circumstance is held invalid such invalidity shall not affect other provisions or
10 applications of the article which can be given effect without the invalid provisions or application,
11 and to this end the provisions of this article are declared to be severable.
12 (Ord. No. 528, 12 -7 -65)
13
14 Sec. 16-12. Definitions.
15
16 Annual Compensation shall mean regular wages and salaries including hazardous pav, overtime
17 pay, vacation sick leave holiday pay clothing allowance educational incentive and extra duty
18 pay.
19
20 Base index shall mean the current index determined on the valuation date coincident with, or
21 otherwise, immediately preceding a Participant's normal retirement date.
22
23 The base index applicable to a Participant who elects a late retirement date shall mean be the
• 24 base index which would apply had the participant's normal retirement date been such last
25 retirement date.
26
27 Basic benefit shall mean that portion of the pension payable to a Participant under the plan,
28 which portion, upon the disability or retirement of any Participant, is guaranteed both as to
29 amount and duration.
30
31 Beneficiary shall mean the person last designated by a Participant as entitled to receive any
32 benefits which may be payable under this plan by reason of the death of the Participant.
33
34 Consumer price index shall mean the statistical table based on changes in the price of consumer
35 goods and services published periodically by the Bureau of Labor Statistics of the United States,
36 which table relates to the United States as a whole.
37
38 Credited service shall mean Participant's continuous employment with the Employer. Leaves of
39 absence authorized by the Employer with periods of absence in connection with military service
40 during which the Participant's employment rights were protected by law shall not be considered
41 to have broken the continuity of his employment; provided, that the employee has become re-
42 employed by the Employer within time period provided in The Uniform Service Employment
43 and Reemployment Rights Act (USERRA) and for police officers Chapter 185 of the Florida
44 Statutes after honorable discharge from the military service. Further, that the employee has paid
45 an amount equal to the contributions that would have been made during such leave of absence
• 46 based on the Participant's salary immediately prior to entry into military service, provided that
1 police officer Participants shall not be required to make such payment of contributions per
• 2 Chapter 185, FS. No employee shall be eligible to become a Participant during such absence.
3
4 Current index shall mean the average of the six (6) latest available monthly Consumer Price
5 1 Indexes published immediately preceding the applicable valuation date.
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7 Employee shall mean any person employed full -time by the Employer on a regular, permanent
8 basis Elected officials and any person whose customary employment is less than thirty two (32)
9 hours in any one week or for five (5) months or less in any calendar year shall be excluded. The
10 city manager, city clerk and Department Directors shall be included within the definition of
11 employee however such positions shall be allowed to opt out of this pension plan.
12
13 Employer shall mean City of South Miami.
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15 Final average compensation shall mean the Participant's annual compensation, excluding
16 accruals such as vacation holiday pay, sick leave and compensation time averaged over the last
17 three-year period ending_ on the Participant's retirement date date of disability, date of
18 termination of employment or the date of termination of the plan whichever is applicable.
19
20 Group annuity policy shall mean a policy issued by an insurance company to the Employer
21 providing retirement benefits as established in this pension plan.
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23 Investment shall mean purchase in any fund, stock, insurance policy or any other instrument or
• 24 method as provided by law.
25
26 Board of Trustees shall mean those individuals appointed to the pension board in accordance
27 with the provisions of this pension plan.
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29 Participant shall mean any employee who has met the eligibility requirements provided herein
30 and who has performed all acts required for eligibility. Unless otherwise limited by the context,
31 including a former employee who has retired and who is receiving benefits under this plan, and a
32 former employee whose employment has otherwise terminated and who remains eligible for
33 benefits under this plan.
34
35 Partiei�qatien date shall mean Oeteber- 1 of eaeh year- this plan is in eff-eet, ineluding Oeteber--�,
36 1965. -
37
38 Plan shall mean South Miami Pension Plan effective October 1, 1965, as the same may be
39 amended from time to time.
40
41 Plan year shall mean the twelve (12) month period commencing on any participation date and
42 ending on the following September 30.
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44 Prior index shall mean the last current index which was used to adjust benefits on the last
45 valuation date immediately preceding the current Valuation Date.
�X-'
I Retirement date shall mean the date on which payment of a Participant's pension benefit
2 commences, whether such date is normal or, if applicable, early or late retirement date.
•
3
4 Supplemental benefit shall mean a variable benefit reflecting changes in the cost of living
5 determined from the Consumer Price Index, which may become payable on October 1, 1970, and
6 every October first thereafter for the ensuing twelve -month period to persons retiring or
7 becoming disabled on or after October 1, 1970.
8
9 Valuation date shall mean the September first on which the current index shall be compared
10 with the Base Index of each payee receiving a basic benefit to determine whether a supplemental
11 benefit may be payable.
12
13 (Ord. No. 528, 12 -7 -65; Ord. No. 697, § 1, 10 -6 -70; Ord. No. 1418, § 3, 2- 2149; Ord. No. 1593,
14 § 1, 10 -5 -95; Ord. No. 1595, § 1, 11 -7 -95; Ord. No. 1761, § 1, 10- 16 -01)
15
16 Sec. 16-13. Eligibility.
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18 (a) Each employee employed by the Employer on October 1, 1965, shall be a Participant on
19 the first participation date on which he has completed two (2) years of Credited service and has
20 attained his twenty -fifth birthday.
21
22 (b) Each Employee who becomes an employee subsequent to October 1, 1973, shall be a
23 Participant on the first participation date on which he /she has completed six (6) months of
•24 Credited service and has obtained his /her twentieth birthday. For all.current Employees as of
25 October 1, 1995, each fiscal year there will be a window for joining the retirement system; i.e.
26 October 1 through October 31.
27
28 (c) It shall become mandatory for all Employees hired on or after October 1, 1995, to join the
29 pension plan after completion of six months of employment by the City.
30
31 (d) Each Employee classified as police officer shall become eligible to participate in this plan
32 upon the date of employment provided the police officer began participation in this plan when
33 first eligible as provided in subsections (a) and (b) of this section.
34
35 (Ord. No. 528, 12 -7 -65; Ord. No. 908, § 1, 9- 21 -76; Ord. No. 954, § 1, 8 -2 -77; Ord. No. 1418, §
36 1, 2- 21 -89; Ord. No. 1544, § 1, 9- 21 -93; Ord. No. 1595, § 2, 11 -7 -95; Ord. No. 1828, § 1, 3 -15-
37 05; Ord. No. 1836, § 1, 4- 19 -05)
38
39 Sec. 16 -14. Pension benefits and retirement date.
40
41 (a) Retirement date. The normal retirement date with full unreduced pension benefits for a
42 Participant shall be as follows:
43
44 (1) General employees shall be the first day of the calendar month coincident with or,
45 otherwise, next following the later of the Participant's fifty -fifth birthday and the date on which
1046 the Participant has completed ten (10) years of Credited service.
1
2 (2) Police officers shall be the completion of twenty -five (25) years of credited police
3 service, regardless of age, or attainment of age sixty (60) and completion of ten (10) years of
4 credited police service.
5
6 (b) Amount of pension. The yearly amount of pension payable to a Participant on the first
7 day of the month coincident with or next following the Participant's retirement date shall be an
8 amount equal to the Participant's number of completed years of Credited service multiplied by a
9 percentage of Final average compensation as stated herein.
10
11 (1) Basic benefit.
12
13 (a) A basic benefit for Participant's retiring prior to October 1, 1970, shall be
14 determined by multiplying 1.6 percent of the Participant's final average compensation by
15 the number of completed years of Credited service, excluding the first two (2) years of
16 such service and any additional service completed by the Participant prior to the
17 Participant's twenty -fifth birthday.
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20 (b) However, as to those Participants who became an Employee subsequent to
21 October 1, 1973, there shall only be excluded the first six (6) months of such service plus
22 any additional service completed prior to the Participant's twentieth birthday and/or
23 additional service completed prior to the Participant becoming eligible to join this
• 24 pension plan.
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26 (2) General employees
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28 (a) Effective October 1, 1993, the pension benefit accrual rate (multiplier) for
29 general employee Participants, shall be increased from 1.6 percent to 1.8 percent for
30 services performed in the 1993 -1994 fiscal year.
31
32 (b) Effective October 1, 1994, the pension benefit accrual rate (multiplier) for
33 general employee Participants, shall be increased from 1.8 percent to 1.9 percent for
34 services performed in the 1994 -1995 fiscal year.
35
36 (c) Effective October 1, 1995, the pension benefit accrual rate (multiplier) for
37 general employee Participants shall be increased from 1.9 percent to 2.25 percent for
38 services performed in the 1995 -1996 fiscal year.
39
40 (d) Effective October 1, 1996 the pension benefit accrual rate (multiplier) for
41 general employee Participants shall be increased from 2.25 percent to 2.50 percent for
42 services performed in the 1996 -1997 fiscal year. Effective October 1, 2001, the pension
43 benefit accrual rate (multiplier) for general employee Participants shall be 2.25 percent
44 for all services performed through September 30 1998.
45
• 46
1
(e) Effective October 1, 1997 the pension benefit accrual rate (multiplier) for
2
general employee Participants shall be increased from 2.50 percent to 2.75 percent for
3
services . performed in the 1997 -1998 fiscal year and thereafter. Effective October 1,
4
2001, the pension benefit accrual rate (multiplier) for general employee Participants shall
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be 2.50 percent for services performed in the 1998 -1999 fiscal year and 2.75 percent for
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services performed thereafter.
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(f) Effective October 1, 2002, the pension benefit accrual rate (multiplier) for
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general employee Participants shall be 2.50 percent for all services performed through
10
September 30 1999, and 2.75 percent for services performed thereafter.
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(3) Police officers
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(a) For sworn police personnel, effective October 1, 1993, the pension benefit
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accrual rate (multiplier) shall be increased from 1.6 percent to 1.8 percent, for services
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performed in the 1993 -1994 fiscal year.
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(b) Effective October 1, 1994, the pension benefit accrual rate (multiplier)
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shall be increased from 1.8 percent to 1.9 percent, for services performed in the 1994-
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1995 fiscal year.
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(c) Effective October 1, 1995, the pension benefit accrual rate (multiplier)
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shall be increased from 1.9 percent to 2.25 percent for services performed in the 1995-
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1996 fiscal year.
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(d) Effective October 1, 1996 the pension benefit accrual rate (multiplier)
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shall be increased from 2.25 percent to 2.50 percent for services performed in the 1996-
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1997 fiscal year.
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(e) Effective October 1, 1997 the pension benefit accrual rate (multiplier)
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shall be increased from 2.50 percent to 2.75 percent, for services performed in the 1997-
32
2001 fiscal year.
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(f) Effective October 1, 2001, the pension benefit accrual rate (multiplier) for
35
sworn police personnel shall be increased from 2.75 percent to 2.80 percent for services
36
performed in the 2001 -2002 fiscal year.
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(g) Effective October 1, 2002, the pension benefit accrual rate (multiplier) for
39
sworn police personnel shall be increased from 2.80 percent to 2.90 percent for services
40
performed in the 2002 -2003 fiscal year.
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42
(h) Effective October 1, 2003 and thereafter the pension benefit accrual rate
43
(multiplier) for sworn police personnel shall be increased from 2.90 percent to 3.00
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percent.
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(i) Notwithstanding the above subsection, the pension benefit accrual rate
(multiplier) for sworn police personnel shall not be less than two (2) percent for all years
of service.
(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.
(c) Early retirement.
(1) A police officer Participant may elect an early retirement date which may be the
first day of any calendar month coincident with, or subsequent to the Participant's fiftieth
birthday and completion of fifteen (15) 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).
Police officer Participant- Percentages for Early Retirement Date
TABLE INSET:
Years prior to
normal
retirement date
Percentage
1
97
2
94
3
91
4
88
5
85
Age on normal retirement date shall be age nearest birthday. Years prior to normal retirement
date shall mean years and completed months from early retirement date to normal retirement
date. Allowance for such months shall be made by interpolating in this table.
I
2 Commencing after the Participant's normal retirement date the Basic Benefit of any
3 Participant retiring on or after October 1, 1970, will be supplemented by the applicable
4 Supplemental Benefit determined in the same manner as in subsection 16- 14(b)(2).
5
6 (d) Late retirement. A Participant, with the written consent of his Employer, may elect a later
7 retirement date which may be the first day of any calendar month after normal retirement date. If
8 the Participant's contributions shall terminate on late retirement, benefits shall be based on
9 annual earnings and Credited service to late retirement date.
10
11 Commencing after the Participant's late retirement date the Basic Benefit of any Participant
12, retiring on or after October 1, 1970, will be supplemented by the applicable Supplemental
13 Benefit determined in the same manner as provided in subsection 16- 14(b)(2), based on the
14 Basic Benefit actually being paid; provided, however, that the first applicable Valuation Date
15 will be the first such date following such Participant's late retirement date.
16
17 (e) Life income; death benefit. The normal form of pension shall be a life income with the first
18 monthly payment of a Participant's pension being due on his-- retirement date if the Participant is
19 then living, and the last monthly payment being due on the last monthly due date on which the
20 Participant is living. If the death of the Participant occurs after this form of pension has become
21 operative but before the sum of all monthly payments that have become due prior to the
22 participant'shi-s death exceeds the death benefit which would have been payable if the Participant
23 had died immediately prior to retirement date, there shall be payable in one sum to the
• 24 Beneficiary entitled thereto an amount equal to the excess of such death benefit over the sum of
25 such monthly payment.
26
27 (f) Optional forms of payment.
28
29 (1) A Participant entitled to a normal or early service retirement benefit shall have the
30 right at any time prior to the date upon which the first payment is received to elect to
31 have the benefit payable under one of the options provided in this section. The Participant
32 shall be permitted to revoke any such election and to elect a new option at any time prior
33 to the receipt of the first payment. Election of the retirement option shall be on a form
34 prescribed by the Board of Trustees.
35
36 a. Life annuity. A Participant may elect to receive an annuity payable for life.
37 This shall be the normal form of retirement. There shall be no guaranteed
38 payment in excess of the accumulated contributions of the Participant, which
39 contributions shall be paid to the Participant's estate or designated Beneficiary
40 should the Participant die prior to receiving payments equal to said contributions.
41
42 b. Joint and last survivor option. A Participant may elect to receive a reduced
43 benefit for life and to have the same benefit (or a designated fraction of the
44 benefit) continued after the Participant's death and during the lifetime of a
45 designated joint pensioner. The Participant shall have the option of electing to
• 46 receive the payment of a benefit of seventy -five (75) percent, sixty -six and two-
I thirds (66 2/3) percent, or fifty (50) percent of the Participant's monthly
• 2 retirement allowance to be paid at the Participant's death to a joint pensioner
3 designated by the Participant at the time of or prior to retirement, such benefit to
4 be payable during the lifetime of the joint pensioner. The reduced retirement
5 benefit shall be the actuarial equivalent of the amount of the retirement
6 compensation otherwise payable to the Participant. A designated joint pensioner
7 may be any natural person, but need not be the spouse of the Participant. In the
8 event that the designated joint pensioner dies, before the Participant's benefit
9 payments begin, this option shall be canceled automatically and a retirement
10 income shall be payable to the member in the form of a life annuity as if the
11 election had never been made.
12
13 c. Other options. The pension board may, approve any other optional form of
14 substantially equal payments, which are the actuarial equivalent of any other form
15 provided for in this plan, or which optional form of payment is cost neutral to the
16 plan.
17
18 (Ord. No. 528, 12 -7 -65; Ord. No. 697, §§ 2 -4, 10 -6 -70; Ord. No. 827, § 1, 6 -4 -74; Ord. No. 908,
19 § 2, 9- 21 -76; Ord. No. 1220, § 1, 1- 22 -85; Ord. No. 1418, § 2, 2- 21 -89; Ord. No. 1544, § 2, 9-
20 21 -93; Ord. No. 1593, § 2,10-5-95; Ord. No. 1595, § 3, 11 -7 -95; Ord. No. 1761, § 2,10-16-01;
21 Ord. No. 1828, § 2, 3- 15 -05; Ord. No. 1892, § 1, 11- 28 -06)
22
0 23 Sec. 16 -15. Disability benefits.
24
25 (a) If a Participant becomes totally and permanently disabled for a six -month period while in
26 the active employ of the Employer, he shall receive a monthly disability benefit during the
27 continuation of such disability commencing as of the first day of the calendar month following
28 six (6) months of disability equal to one - twelfth (1/12) of the yearly amount of pension to which
29 the Participant is entitled in accordance with subsection 16- 14(b). A Participant shall be entitled
30 to select payment of a disability pension using any of the optional forms of retirement provided
31 under subsection 16- 14(f).
32
33 If the Participant remains disabled until normal retirement date, the Participant shall then receive
34 a basic benefit on the normal annuity form equal to the amount of disability benefit the
35 Participant was receiving. In addition to the basic benefit, the payments of any Participant who
36 becomes disabled on or after October 1, 1970, will be adjusted after the normal retirement date
37 of the Participant by a supplemental benefit determined in the same manner as provided in
38 subsection 16- 14(b)(2), the last payment being due at the time that the last basic benefit payment
39 is due. If the disabled Participant ceased to be totally and permanently disabled and returns to the
40 service of the Employer, the Participant shall be entitled to resume coverage under the plan on
41 the first of the month following suchhi-s re- employment and the Participant's pension at
42 retirement shall be based on Credited service before and after such period of disability. If the
43 Participant does not return to the service of the Employer, the vested pension shall be determined
44 in accordance with article VI, including as service for the purpose of determining the applicable
45 vesting percentage only, the period of such disability.
46
I (b) As used in this section "totally and permanently disabled" means the inability to engage in
•2 any substantial gainful activity by reason of a medically determinable physical or mental
3 impairment which can be expected to result in death or to be of long- continued and indefinite
4 duration.
5
6 The disability of any Participant shall be determined by the pension board, in accordance with
7 uniform principles consistently applied, upon the basis of such evidence as the pension board
8 deems necessary and desirable. The pension board may, at any time prior to the Participant's
9 normal retirement date, determine that the Participant is no longer totally and permanently
10 disabled. In determining the nature, extent and duration of any Participant's disability, the
11 pension board shall select a physician to examine such Participant and to advise the pension
12 board with respect to such disability. The final determination of the nature, extent and duration
13 of such disability shall be made solely by the pension board.
14
15 Disability shall not include a permanent incapacity directly incurred and due solely to military,
16 service of any Participant which prevents employment with the Employer and for which the
17 Participant receives a disability benefit or pension from the United States.
18
19 (Ord. No. 528, 12 -7 -65; Ord. No. 697, § 5, 10 -6 -70; Ord. No. 1761, § 3, 10- 16 -01)
20
21 Sec. 16 -16. Death of a Participant.
22
23 (a) Before retirement date. Upon the death of a Participant prior to retirement date there shall
•24 be paid to the Beneficiary last designated by the Participant an amount equal to the aggregate of
25 the Participant's contributions made prior to the date of death. For General employee
26 Participants, the contributions shall be credited with interest compounded annually at the rate of
27 three (3) percent per annum from the end of the year of payment to the first of the month in
28 which the death benefit is paid.
29
30 (b) After retirement date. Upon the death of a Participant on or after retirement date, there shall
31 be paid to the Beneficiary last designated by the Participant in accordance with the following
32 provisions, the benefit, if any, payable under the group annuity policy.
33
34 (c) Beneficiary. Each Participant shall have the right to name a Beneficiary and to change such
35 Beneficiary designation from time to time. Any such exercise of rights shall become effective
36 only in accordance with the provisions of the group annuity policy and the rules and practices of
37 the insurance company, where applicable. Police officers who are Participants of the plan shall
38 have the right to name one or more beneficiaries, jointly or sequentially and to change the
39 Beneficiary designation from time to time in accordance with F.S. §§ 185.161 and 185.341.
40 Upon failure of a police officer Participant to designate a Beneficiary, any benefit shall be paid
41 to the Participant's estate.
42
43 (d) Cooperation of pension board. Upon the death of any Participant the pension board shall
44 cooperate with the Participant's Beneficiary so that such Beneficiary may receive such benefits
45 as are provided by this plan or from any group annuity policy.
46
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•
(Ord. No. 528, 12 -7 -65; Ord. No. 1088, § 1, 10- 21 -80; Ord. No. 1463, § 1, 11 -6 -90; Ord. No.
1761, § 4, 10- 16 -01)
Sec. 16 -17. Termination of employment.
(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 with credited interest compounded
annually at the rate of three (3) percent per annum from the end of the year of payment to
the first of the month in which the cash payment is made. 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 Participanthe is entitled in accordance with section 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.
TABLE INSET:
Number of years
of Credited service
Percentage
Less than 10
0
11
10
12
20
13
30
14
40
15
50
16
60
I
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
37
38
39
40
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' continuous Ceredited service. Accordingly, effective October 1,
1995, all general Employees who are in this plane as of October 1, 1995, and have ten (10) years
or more of continuous service will be one hundred (100) percent vested.
(c) No Supplemental Benefit shall be payable under this article.
(d) (1) A terminated Participant's pension benefit payments shall commence on what would
otherwise have been the Participant's normal retirement date; provided, however, that if
on the date of termination of employment the Participant has satisfied the service
requirement for early retirement but not the age requirement, the Participant may elect, in
writing, on a form approved by the pension board, to have payments determined on an
actuarial equivalent basis commence prior to hi-s--normal retirement date, but in no event
prior to the first day of the calendar month coincident with or next following his
completion of the age requirement. The pension board must receive such written election
at least six (6) months prior to the commencement of benefits. If such pension
commences before the Participant's normal retirement date, the amount of such pension
shall be the actuarial equivalent, or as to a police officer Participant on the date of
termination of employment determined in accordance with the Table, as such table
appears in section 16 -14, of the monthly amount of pension benefit on the normal form
which would otherwise commence on normal retirement date.
(2) The basic benefit described herein shall be effective for all Participants who
terminate employment on or after October 1, 1978.
(e) An Employee who has received a cash payment under Option 1 above may elect to
participate in this plan upon meeting the following requirements:
(1) Election to participate must be made within thirty (30) days of receipt of notice of
eligibility to participate.
(2) Such Employee had received a cash payment under Option 1 above.
1
2 (3) Such Employee pays to the pension plan an amount equal to the amount of cash
3 payment received under Option 1 above, plus credited interest compounded .annually at
4 the rate of three (3) percent per annum from the date on which such cash payment was
5 made to the date of such repayment.
6
7 Participation under this section will be effective as of September 1, 1977. In determining an
8 Employee's Credited service at any future date, any service during which the Employee did not
9 participate under this plan shall not be included.
10
11 (Ord. No. 528, 12 -7 -65; Ord. No. 697, § 7, 10 -6 -70; Ord. No. 1155, § 1, 9 -7 -82; Ord. No. 1161,
12 § 1, 12- 21 -82; Ord. No. 1544, § 3, 9- 21 -93; Ord. No. 1595, § 4, 11 -7 -95)
13
14 Sec. 16 -18. Group annuity policy.
15
16 (a) The Employer, in order to provide the benefits of this plan, may procure from an insurance
17 company a group annuity policy. In general, such group annuity policy shall provide for the
18 establishment and maintenance of a fund or funds by the insurance company to which
19 contributions will be credited and from which will be withdrawn the amount necessary to pay
20 pension benefits at retirement and to pay such other benefits as may be provided by the plan.
21 Any monies not so invested may be invested in other methods as provided by law.
22
23 (b) The terms and provisions of such group annuity policy shall be agreed upon between the
• 24 Employer and the insurance company and shall, to the extent possible, be consistent with the
25 provisions of this plan and amendments hereto.
26
27 (Ord. No. 528, 12 -7 -65; Ord. No. 697, § 8, 10 -6 -70; Ord. No. 1418, § 4, 2- 21 -89)
28
29 See. 16-19. Contributions.
30 (a) Each Participant shall contribute in each calendar year towards the cost of the Participant's
31 pension an amount equal to three (3) percent of the Participant's earnings. With the exception of
32 police officer Participants, no Participant shall make any contributions toward the cost of any
33 past service pension to which the Participant is entitled under this plan. The Employer shall
34 contribute the balance of the cost, actuarially determined, of providing the benefits of the plan.
35 The Employer's contributions shall be deposited into the pension plan on at least a quarterly
36 basis. Effective October 1, 1995, the pension contribution for all general Employee Participants,
37 including those general Employees that are now members of the retirement system, shall be
38 increased from three (3) percent to five (5) percent of earnings. Effective October 1, 2001, the
39 pension contribution for all general Employee Participants, including those general Employees
40 that are now members of the plan, shall be increased from five (5) percent to seven (7) percent of
41 earnings. Police officer Participant including bargaining unit Employees, that are now members
42 of the plan and any police officers who join the plan in the future shall, effective October 1,
43 1993, have their contribution increased from three (3) percent to five (5) percent of earnings.
44 Effective October 1, 2001, police officer Participants shall contribute 7.5 percent of earnings.
45
U
1 (1) General Employee Participants. Should the Employer's annual contribution be
•2 actuarially determined to exceed twelve (12) percent, both the Employer and the
3 Participants shall share equally the amount in excess of twelve (12) percent for that fiscal
4 year. Effective October 1, 2005 should the total Participant and Employer's annual
5 contribution be actuarially determined to exceed (14) fourteen percent, both the Employer
6 and the general employee Participants shall share equally the amount in excess of
7 fourteen (14) percent for that fiscal year.
8
9 (2) Police officer Participants. Effective October 1, 2004 if the total police officer
10 partcipitants contributions and Employer contribution exceeds fifteen (15) percent of
11 covered police payroll for any fiscal year, the excess over fifteen (15) percent shall be
12 shared equally by the Employer and police officer Participants. Police officer Participant
13 contributions shall be deposited in the plan immediately after each pay period. Effective
14 October 1, 2001, an amount actuarially determined, to provide for certain minimum
15 benefits required by Chapter 185, F.S. shall be paid from the South Miami Police
16 Officers Retirement Trust Fund to the Plan each year, regardless of the growth or
17 diminution in future Chapter 185, F.S. funds..
18
19 (b) All amounts paid by the Employer to the insurance company in accordance with this plan
20 shall represent irrecoverable contributions, except as may be otherwise provided in subsection
21 16- 22(b).
22
23 (c) The Employer shall pay the reasonable expenses of the pension board, including any
• 24 expenses for legal and actuarial services.
25
26 (d) Rollover option. A Participant eligible to receive a refund of contributions may elect, at the
27 time and in the manner prescribed by the pension board, to have any portion of an eligible
28 rollover distribution paid directly to an eligible retirement plan specified by the Participant in a
29 direct rollover. For the purposes of this section, the following words and phrases shall have the
30 following meanings indicated:
31
32 (1) Eligible rollover distribution is any distribution,of all or any portion of the balance to
33 the credit of the distributee, except that an eligible rollover distribution does not include:
34
35 a. Any distribution that is one of a series of substantially equal payments (not
36 less than annually) made for the life (or life expectancy) of the distributee, or the
37 joint lives (or joint life expectancies) of the distributee and the distributees
38 designated Beneficiary, or for a specified period of ten years or more;
39
40 b. Any distribution to the extent such distribution is required under section
41 401(a)(9) of the Internal Revenue Code; and
42
43 c. The portion of any distribution that is not includable in gross income.
44
45 (2) Eligible retirement plan is an individual retirement account described in section
46 408(a) of the Internal Revenue Code, an individual retirement annuity described in
I section 408(b) of the Internal Revenue Code, an annuity plan described in section 403(a)
2 of the Internal Revenue Code, or a qualified trust described in section 401(a) of the
3 Internal Revenue Code, that accepts the distributees eligible rollover distribution.
4 However, in the case of an eligible rollover distribution to the surviving spouse, an
5 eligible retirement plan as an individual retirement account or individual retirement
6 annuity.
7
8 (3) Distributee includes an Employee or former Employee. In addition, the Employee's
9 or former Employee's surviving spouse is a distributee with regard to the interest of the
10 spouse.
11
12 (4) Direct rollover is a payment by the plan to the eligible retirement plan specified by
13 the distributee.
14
15 (Ord. No. 528, 12 -7 -65; Ord. No. 1544, § 4, 9- 21 -93; Ord. No. 1595, § 5, 11 -7 -95; Ord. No.
16 1761, § 5, 10- 16 -01; Ord. No. 1892, § 2, 11- 28 -06)
17
18 Sec. 16 -20. Board of Trustees.
19
20 (a) The Board of Trustees shall be comprised of seven (7) members consisting of the two (2)
21 active Employees of the city elected by Participants of the Plan, two (2) citizen of the City, and
22 two (2) individuals with financial backgrounds and the appointment of one (1) active Employee
23 of the city designated by the city manager, all to be appointed by the mayor with the advice and
•24 consent of the city commission. No Board of Trustee member shall receive any compensation or
25 emolument for services on the pension board. The board members shall each serve for a period
26 of two (2) years, or until their successors are appointed, which appointment shall be evidenced
27 by an acceptance in writing of such appointment. A member of the pension board may resign by
28 delivering a written resignation to the city clerk, and such resignation shall become effective
29 upon its delivery or at a later date specified therein. If, at any time there shall be a vacancy in the
30 membership of the board, provided there are not less than five (5) members, the board shall
31 continue to act until such vacancy is filled as provided above.
32
33 (b) The board shall hold meetings upon such notice, at city hall, and at such times as its
34 members may from time to time determine but in no event less than once each calendar quarter.
35 A majority of the members of the board at the time in office shall constitute a quorum for the
36 transaction of business. All action taken by the board at any meeting shall be by vote of the
37 majority of its members present at such meeting.
38
39 (c) Subject to the terms of this plan, the pension board shall from time to time adopt bylaws,
40 rules and regulations for the administration of the plan and the conduct and transaction of its
41 business and affairs.
42
43 (d) The pension board shall have such powers as may be necessary to discharge its duties
44 hereunder; including but not limited to, the power to interpret and construe the plan, to determine
45 all questions of eligibility for benefits, duration of employment, computation of benefits, value of
46 benefits and similarly related matters for the purposes of the plan.
I (e) No member of the pension board shall be precluded from becoming a Participant under this
2 plan if otherwise eligible.
3
4 (f) The board shall keep accurate records and minutes of its proceedings and actions. The
5 pension board shall prepare annually a report showing in reasonable detail and account of the
6 operations for the preceding year, as required by section 112.63 and 185.221 and shall deliver a
7 copy within sixty (60) days thereof to the city commission. The pension board shall also file with
8 the appropriate governmental bodies all necessary forms and documents that must be furnished
9 in accordance with applicable law.
10
11 (g) The board shall, from time to time, issue written instructions to the insurance company, if
12 applicable with respect to the pensions and other benefits to be provided pursuant to this plan.
13
14 (h) The board may authorize one (1) or more of its members to sign on its behalf any document
15 relating to the administration of this plan.
16
17 (i) Except for gross negligence or willful breach of the terms of this plan, no member of the
18 pension board shall incur any individual liability for any action or failure to act pursuant to the
19 terms of this plan. No member of the pepsion board shall be liable for the acts of any other
20 member of the pension board. The members of the pension board may engage agents, to include
21 consultants, custodians, actuaries, Accountants, auditors and investment managers to assist them
22 in their duties and may consult with counsel who may be an independent counsel or of counsel to
23 the Employer. The members of the pension board shall be relieved of all responsibility
• 24 whatsoever for anything done or not done upon the written advice of counsel.
25
26 (j) The members of the pension board may inspect the records of the Employer whenever such
27 inspection shall be reasonably necessary in order to determine any fact pertinent to the
28 performance of their duties under this plan. The members of the pension board, however, shall
29 not be required to make such inspection, but in good faith may rely on any statement of the
30 Employer .or any of its officials or authorized Employees.
31
32 (Ord. No. 528, 12 -7 -65; Ord. No. 1207, § 1, 9- 10 -84; Ord. No. 1247, § 1, 2 -4 -86; Ord. No.
33 1253, § 1, 8 -5 -86; Ord. No. 1707, § 1, 4- 11 -00)
34
35 Sec. 16 -21. Purchase of Credited service.
36
37 (a) Police officer Participants, including bargaining unit Employees, to purchase credit for
38 active duty in the U.S. military service, prior to employment as a Police officer with the City in
39 accordance with USERRA and applicable state law. This provision shall not cover reserve active
40 duty or weekend drill
41
42 (b) All Participants in the city pension plan shall be allowed to purchase credit for immediate
43 past city service up to a maximum of five (5) years in the city pension plan pursuant to
44 procedures promulgated at the time of such purchase. All costs for approved purchase of past
45 city services shall be one hundred (100) per cent born e by the Participant with no cost assumed
•
1 by the city. Should the Participant be permitted to purchase past city service over a period of
. 2 time, the effective date of Credited service shall be on the date such purchase is paid in full.
3
4 (Ord. No. 1544, § 5, 9- 21 -93; Ord. No. 1616, § 15 9 -3 -96)
5
6 Sec. 16 -22. Amendment and termination of the pension plan.
7
8 (a) The Employer may amend the provisions of this pension plan at any time and from time to
9 time by enacting such amendments in a public meeting provided that:
10
11 (1) No amendment shall increase the duties or liabilities of the Board of Trustees.
12
13 (2) No amendment shall provide for the use of funds or assets held under this plan other
14 than for the benefit of Employees and no contributions paid by the Employer shall ever
15 revert to or be used or enjoyed by the Employer, except as provided in subsection (b).
16
17 (b) The Employer may terminate this pension plan at any time by repealing the provisions of
18 this ordinance in a public meeting. In such event the Board of Trustees shall take the necessary
19 steps to have all the funds held by the plan applied to the purchase of immediate or deferred
20 annuities, as the case may be, in the following order of priority and in accordance with the
21 provisions of section 16 -23, if applicable:
22
23 (1) An immediate annuity on the normal forms of pension for each Employee
•24 Participant who has retired or has attained normal retirement date but who has not retired,
25 in an amount equal to the amount of basic benefit to which the Participant is entitled or
26 would have been entitled if the Participant had retired immediately prior to such
27 termination.
28
29 (2) A deferred annuity on a full cash refund form of pension commencing at normal
30 retirement date for each Participant who has not reached normal retirement date, for each
31 disabled Participant, and for each former Employee who is a terminated Participant and
32 has not elected a cash payment as provided in option 1 of section 16 -17i in an amount of
33 the Participant's contributions paid to and received by the plan, with credited interest of
34 three (3) percent per annum from the end of the year in which contributions were
35 received to the date basic benefits commence.
36
37 (3) A temporary annuity ending on normal retirement date for each disabled Participant
38 in an amount equal to the basic benefits being received under section 16 -15.
39
40 (4) A deferred annuity on the life annuity form commencing at normal retirement date
41 for each terminated Participant as defined in section 16 -17 in an amount equal to the
42 amount the Participant is entitled to under section 16 -17 and deferred annuity
43 commencing at normal retirement date for each disabled Participant and each Participant
44 in an amount equal to the amount the participant would be entitled to under 16 -17 if the
45 date of termination of employment less the amount of benefit applicable to him in (b)
• 46 above.
• 2 (5) A deferred annuity on the life annuity f6rm commencing at normal retirement date
3 for each Participant who has not reached Iris normal retirement date in an amount equal to
4 the amount of basic benefit the Participant would be entitled to if the Participant's normal
5 retirement date were the date of termination of this plan less the amount of benefit
6 applicable in (2), (3) and (4) above.
7
8 Provided, however, that if there are insufficient funds to provide any category of such
9 annuities, the amount of annuity to be provided for each Participant in that category shall be
10 reduced by a uniform percentage. If by reason of actuarial error the purchase of such annuities as
11 is provided for in (1), (2), (3), (4) and (5) above does not exhaust the funds, any excess shall be
12 paid to such Employer.
13
14 (Ord. No. 528, 12 -7 -65; Ord. No. 21 -70 -697, § 9, 10 -6 -70)
15
16 Sec. 16 -23. Limitation of pension benefit payment.
17
18 (a) Any provision in this plan to the contrary notwithstanding, during the ten -year period
19 following the date the plan is initiated the benefits provided hereunder by the employer's
20 , contributions with respect to its twenty -five (25) highest paid Employees on the date the plan is
21 initiated who then become or who may thereafter become Participants and whose pension benefit
22 at normal retirement date will exceed one thousand five hundred dollars ($1,500.00) annually
•23 will be subject to the following conditions:
24
25 (1) The benefits payable to any such Employee or his survivor (in the event of the death
26 after retirement) shall not exceed those purchasable by the larger of (a) and (b):
27
28 (a) Twenty thousand dollars ($20,000).
29
30 (b) Twenty (20) percent of the average regular annual compensation up to fifty
31 thousand dollars ($50,000.00) of any such Employee multiplied by the numbers
32 of years the plan is in effect.
33
34 (2) As long as this plan remains in full effect and its full current costs have been met,
35 the provisions of this section shall not restrict the payments of either full pedsion benefits
36 to any retired Participant or full survivor's benefits on account of any deceased
37 Participant.
38
39 (3) In the event of termination of this plan, the terms and conditions of Florida Statutes
40 185.37, entitled "Termination of Plan and Distribution of Fund" shall govern for police
41 officer Participants.
42
43 (b) In no event may a Participant's annual benefit exceed the lesser of:
44
45 (1) $90,000 (adjusted for cost -of living in accordance with Internal Revenue Code (IRC)
46 Section 415(d), but only for the year in which such adjustment is effective), or
2 . (2) One hundred percent of the average annual compensation for the Part icipant's three
3 highest paid consecutive years; however, benefits of up to $10,000 a year can be paid
4 without regard to the 100 percent limitation if the total retirement benefits payable to a
5 Participant under all defined benefit plans (as defined in IRC Section 4140)) maintained
6 by the City for the present and any prior year do not exceed $10,000 and the City has not
7 at any time maintained a defined contribution plan (as defined in IRC Section 414(1)) in
8 which the employee was a Participant.
9
10 (3) If the Member has less than ten years of service with the City (as defined In IRC
11 Section 415(b)(5) and as modified by IRC Section 415(b)(6)(D)), the applicable
12 limitation in paragraph (1) or paragraph (2) of this subsection shall be reduced by
13 multiplying such limitation by a fraction, not to exceed one. The numerator of such
14 fraction shall be the number of years, or part thereof, of service with the City; the
15 denominator shall be ten years.
16
17 (4) For purposes of this subsection, the "annual benefit" means a benefit payable
18 annually in the form of a straight life annuity with no ancillary or incidental benefits and
19 with no Member or rollover contributions. To the extent that ancillary benefits are
20 provided, the limits set forth in paragraphs (1) and (2) above will be reduced actuarially,
21 using an interest rate assumption equal to the greater of five percent or the interest rate
22 used in the most recent annual actuarial valuation, to reflect such ancillary benefits. .
23
•24 (5) Except with respect to distributions on or after January 1, 1997 to "Qualified Police
25 Officers," as that term is defined in Section 415(b)(2)(G) of the Code, if distribution of
26 retirement benefits begins before age 62, the dollar limitation as described above shall be
27 reduced actuarially using an interest rate assumption equal to the greater of five percent
28 or the interest rate used in the most recent annual actuarial valuation; provided however,
29 retirement benefits shall not be reduced below $75,000 if payment of benefits begins at or
30 after age 55 and not below the actuarial equivalent of $75,000 if payment of benefits
31 begins before age 55. If retirement benefits begin after age 65, the dollar limitation of
32 above shall be increased actuarially using an interest assumption equal to the lesser of
33 five percent or the interest rate used in the most .recent annual actuarial valuation. For
34 purposes of this subsection, the "average annual compensation for a Participant's three
35 highest paid consecutive years shall mean the Participant's greatest aggregate
36 compensation during the period of three consecutive years in which the individual was an
37 active Participant of the Plan.
38
39 (c) Distributions in Plan Years Beginning After December 31, 1986 Benefit payments to a
40 Participant must commence no later than the April 1 of the calendar year immediately following
41 the calendar year in which the Participant attains age 701/2, or with respect to plan years
42 beginning on or after January 1, 1997, the later of (i) the calendar year in which the Participant
43 attains age 701/2, or (ii) the calendar year in which the Participant retires. For Participants
44 whose benefits commence after April 1 of the calendar year following the calendar year in which
45 the Participant attains age 701/2, such Participant's benefit amount (including any additional
• 46 benefit which is accrued after such date) shall be actuarially increased for the period between (i)
I April 1 of the calendar year following the calendar year in which the Participant attains age
• 2 701/2 (or the end of the Plan year in which any additional benefit is accrued)and (ii) the
3 Participant's benefit commencement date. Such actuarial increase shall be determined using the
4 interest and mortality assumptions used for the purposes of Actuarial Equivalence, and may be
5 offset to the extent an actuarial increase is otherwise provided due to delayed retirement.
6
7 (1) Distributions to a Participant shall not extend beyond the life of the Member or the
8 lives of the Member and his designated Beneficiary, or over a period not extending
9 beyond the life expectancy of the Member or the life expectancy of the Member and his
10 designated Beneficiary.
11
12 (2) If distribution has commenced to a Participant, and such Participant dies before
13 receiving such entire interest, the remainder of such interest shall be distributed over a
14 period at least as rapidly as under the method of distribution in effect prior to such
15 Participant's death.
16
17 (3) In the event distributions have not commenced to a Participant prior to the
18 Participant's death, the entire interest of the Participant shall be distributed within five
19 years after the death of such Participant. However, such fire -year rule shall not apply if
20 any portion of the Participant's interest is payable to a designated beneficiary, where such
21 portion will be distributed over the life of such designated beneficiary, or over a period
22 not extending beyond the life expectancy of such beneficiary beginning not later than one
23 year after the date of the Participant's death or such later date as the Secretary of the
•24 Treasury may by regulations prescribe. If the designated beneficiary is the surviving
25 eligible spouse of the Participant, the date on which the distributions would be required to
26 begin shall not be earlier than the date on which the Participant would have attained age
27 701/2. If the surviving eligible spouse dies before payments are required to commence,
28 the five -year rule shall be applied as if the surviving eligible spouse were the Participant.
29
30 (Ord. No. 528, 12 -7 -65; Ord. No. 868, § 1, 8 -5 -75)
31
32 Sec. 16 -24. Limitations generally.
33
34 (a) Plan exclusively for Employee's benefit; definition of plan. This pension plan is created for
35 the exclusive benefit of Employees of the Employer and their beneficiaries, and shall be
36 interpreted in a manner consistent with its being a qualified pension plan as defined in section
37 401(a) of the Internal Revenue Code of 1954, as the same may be amended from time to time.
38 This section cannot be altered or amended.
39
40 (b) Funds restricted. Except as provided in section 16- 22(b), no funds contributed to this plan
41 and no assets of this plan shall ever revert to, be used or enjoyed by the Employer nor shall any
42 such funds or assets ever be used other than for the benefit of Employees of the Employer or
43 their beneficiaries. This section cannot be altered or amended.
44
(c) Compliance by parties, claimants. All parties to this plan and all persons claiming any
045
46 interest whatsoever hereunder agree to perform any and all acts and execute any and all
1 documents or papers which may be necessary or desirable for carrying out any of the provisions
• 2 of this plan or of any amendments to this plan or for complying with any federal or state
3 disclosure laws.
4 .
5 (d) Plan is not contract of employment. The pension plan shall not be construed as creating any
6 contract of employment between the Employer and any of its Employees.
7
8 (e) Alienation of proceeds, levy, etc.; prohibited. No Participant shall have any right to assign,
9 alienate, anticipate or commute any payments hereunder; and, except as otherwise prescribed by
10 law, no payment shall be subject to the debts, contracts or engagements of any payee, nor to a
11 judicial process to levy upon or attach the same for the payment thereof, except the recipient of
12 any monthly benefit may authorize the Board of Trustees to withhold from the monthly benefit
13 those funds necessary to pay for the benefits being received through the City, to pay the certified
14 bargaining agent of the city, and to make any payments for child support or alimony.
15
16 (f) Laws of Florida. applicable. This plan shall be construed according to the laws of the State
17 of Florida where it is made and where it shall be enforced.
18
19 (g) Gender; number. Wherever used in this article, the masculine gender shall include the
20 feminine gender and the singular shall include the plural.
21
22 (h) Lump sum payment. If at anytime it is determined that monthly payments to be made at any
23 time or at any _future date to a Participant will be less than ten dollars ($10.00) each, a lump sum
• 24 payment may be made in lieu thereof.
25
26 (Ord. No. 528, 12 -7 -65; Ord. No. 1868, § 1, 12- 20 -05)
27
28 Sec. 16 -25. Deferred compensation program created; administrator.
29
30 (a) There is hereby established a deferred compensation program of the City of South Miami.
31
32 (b) The city manager is hereby designated as the official to approve and administer a deferred
33 compensation plan as required by state law.
34
35 (c) The city attorney is hereby designated as the appropriate official to determine, in accordance
36 with the requirements of F.S. § 112.215(6)(b) (1976), whether the compensation deferred under
37 any plan approved by the city manager will not be included in the Participants taxable income
38 under the federal or state law until it is actually received by such Participant under the terms of
39 the plan, and that such compensation will nonetheless be deemed compensation at the time of the
40 deferral for the purposes of social security, the pension plan of the City of South Miami or for
41 any other retirement, pension or benefit program required by law.
42
43 (d) The deferred compensation program authorized hereunder and any other plan approved and
44 adopted as herein provided, will exist and serve in addition to any other retirement, pension or
45 benefit system established by the federal government, the State of Florida or the City of South
r
�J
U
•
U
1 Miami, and shall not supersede, make inoperative or reduce any benefits provided by the Florida
2 Retirement System or by any other retirement, pension or benefit program established by law.
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
37
38
39
40
41
42
43
44
45
(Ord. No. 929, § § 1 -4, 3 -1 -77)
Sec. 16 -26. Pre - retirement survivor annuity.
Notwithstanding any other provisions of this plan, in the event of death of any qualifying
Participant with a vested benefit a pre- retirement survivor annuity will be provided to the spouse
of such Participant, provided the Participant and spouse have been married throughout the one -
year period ending on the date of the Participant's death. Commencing with the first plan year
beginning after December 31, 1984, any qualifying Participant who attains such annuity starting
date shall receive benefit in the form of a qualified joint and survivor annuity, unless otherwise
elected with appropriately witnessed spousal consent. The amount of the survivor annuity shall
be the minimum amount required under section 401(a)(11) of the Internal Revenue Code. If any
qualifying Participant has designated a person, persons or entity other than his or her spouse as
the Beneficiary of any plan benefits payable upon death of the Participant, such Beneficiary is
entitled only to such benefit, if any, as is in excess of the qualified pre- retirement survivor
annuity payable to the surviving spouse described above. A qualifying Participant is any married
Participant who completed at least one hour of service (or paid leave) on or after August 23,
1984 who has yet to attain annuity starting date under the plan.
A vested Participant who is not credited with at least one hour of service on or after August 23,
1984, may elect, during the election period, to have the qualified pre- retirement survivor annuity
coverage apply if such Participant (1) had at least an hour of service in the first plan year
beginning after December 31, 1975, (2) had at least ten (10) years of service under the plan and a
non - forfeitable right to at least part of the accrued benefit derived from Employer contributions,
and (3) has not yet reached annuity starting date. The election period referred to in the previous
sentence is the period beginning August 23, 1984, and ending on the earlier of the Participant's
annuity starting date or the date of the Participant's death.
A vested Participant who is not credited with at least one hour of service for any plan year
beginning after December 31, 1975, may elect, during the election period, to have the ERISA
survivor annuity rules apply if such Participant (1) had at least one hour of service during the
period commencing September 2, 1974, and ending with the last day of the plan year
commencing in 1975, (2) has not yet reached his annuity starting date, and (3) has attained
the later of the qualified early retirement age under the plan or one hundred twenty (120) months
prior to the normal retirement date. The election period referred to in the previous sentence is the
period beginning August 23, 1984, and ending on the earlier of the Participant's annuity starting
date or the Participant's death.
The Participant shall not bear any part of the cost of providing the pre- retirement survivor
annuities described above, however shall bear the cost of any joint and survivor annuity provided
at the annuity starting date.
• 2
3
4
5
6
7
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.7
The survivor annuity benefits otherwise provided by this section are subject to any qualified
domestic relations order, as defined by Internal Revenue Code, section 414(p), and such benefits
shall be provided only to the extent that provision of the benefit is consistent with the terms of
the order.
(Ord. No. 1239, § 1, 3 -5 -85)
Secs. 16- 27-- 16 -29. Reserved.
Section 2: Should any section or provision of this Ordinance or portion hereof, any
paragraph, any sentence, or word, be declared by a court of competent jurisdiction to be invalid,
such decision shall not affect the validity of the remainder of this ordinance.
Section 3: Authority is hereby granted to codify this Ordinance.
Section 4: This Ordinance shall become effective upon adoption.
PASSED and ADOPTED this day of , 2009
ATTEST
CITY CLERK
1St Reading -
2 °d Reading -
READ AND APPROVED AS TO FORM
CITY ATTORNEY
MAYOR
COMMISSION VOTE:
Mayor: .-
Vice Mayor-
Comm.:
Comm.:
Comm.: