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03-04-08 Item 5SOU7, 04 "7 South Miami AD- AmefiCa City 1 1 ~ CITY OF SOUTH MIAMI • INCORPORATED • OFFICE OF THE CITY MANAGER 1927 ��ORI�p INTER - OFFICE MEMORANDUM 2001 To: The Honorable Mayor and Members of the Commission Date: February 19, 2008 Via: Yvonne S. McKinley, City Manager From: Jeanette Ennzo, Human Resource Manager Agenda Item No.:; J Human Resource U Subject: Amendment of Pension Ordinance Chapter 16, Article II, Section. 16 -13 (B) Ordinance: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO PENSION ORDINANCE; AMENDING CHAPTER 16, ARTICLE II, SECTION 16 -13 (B); PROVIDING FOR SEVERABILITY, ORDINANCES IN CONFLICT AND AN EFFECTIVE DATE. Reason/Need: During the last City Commission meeting, the City Commission discussed the issues regarding our current pension provision which allows employees to join the pension plan after six months compared to the adopted probationary period of one year. Initially, it was considered that by extending the probationary period to one year, the ability to join the pension program would automatically extend it to twelve months. After much discussion, the City Commission recommended to keep current status of allowing employees to join the pension after six months. As a result, staff was directed to introduce the revision of the proposed attached ordinance for consideration. Cost: N/A Funding Source: N/A Backup Documentation: Proposed Ordinance 1 2 3 ORDINANCE NO.: 4 5 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF 6 THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO PENSION 7 ORDINANCE; AMENDING CHAPTER 16, ARTICLE (II), SECTION 8 16 -13 (B); PROVIDING FOR SEVERABILITY, ORDINANCES IN 9 CONFLICT AND AN EFFECTIVE DATE. 10 11 12 WHEREAS; Chapter 16, Article (II), section 16 -13(B) will be amended 13 reflecting pension eligibility for new employees in the general pension plan; and 14 15 WHEREAS; the City Commission agreed to allow new employees that are hired 16 to be eligible to participate in the general pension plan after six (6) months of 17 employment instead of waiting completion of probationary period. 18 19 NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY 20 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA: 21 22 Section 1: Sec. 16 -13. Eligibility: 23 (a) Each employee employed by the employer on October 1, 1965, shall be a participant 24 on the first participation date on which he has completed two (2) years of credited service 25 and has attained his twenty -fifth birthday. 26 (b) Each employee who becomes an employee subsequent to October 1, 1973, shall be a 27 participant on the first participation date on which he /she has completed six (6) months of 28 credited service and has obtained his/her twentieth birthday. For all current employees as 29 of October 1, 1995, each fiscal year there will be a window for joining the retirement 30 system; i.e. October 1 through October 31. It shall become mandatory for all employees 31 hired on or after October 1, 1995, to join the pension plan after completion of the six 6 32 months of employment with the City. eried. 33 (c) Each employee classified as policemen shall become eligible to participate in the 34 plan from his/her date of employment provided he /she began participation in the plan 35 when first eligible as provided in subsections (a) and (b) of this section. 36 (d) An employee who has received a cash payment under Option 1 of section 16 -17(b) 37 may elect to participate in the plan upon meeting the following requirements: 38 (1) Election to participate must be made within thirty (30) days of receipt of 39 notice of eligibility to participate. 40 (2) Such employee had received a cash payment under Option 1 of section 16- 41 17(b). 42 (3) Such employee pays to the employer an amount equal to the amount of cash 43 payment he received under Option 1 of section 16- 17(b), plus credited interest 44 compounded annually at the rate of three (3) percent per annum from the date on 45 which such cash payment was made to the date of such repayment. Participation 46 under this section will be effective as of September 1, 1977. In determining an F) 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 37 38 39 40 41 42 43 44 45 46 employee's credited service at any future date, there shall not be included any service during which the employee did not participate under this plan. (e) Notwithstanding the above subsections, any participant classified as a police officer, who elects to retire after January 31, 2005, and before June 1, 2005, shall be eligible for a retirement incentive, which shall be equal to normal retirement provided: (1) The police officer participant has attained an age that when added to credited service equals or is greater than seventy (70); and (2) The full actuarial cost of such retirement incentive shall be paid by the police officer participant, no later than June 31, 2005. Section 2: If any section, clause, sentence, or phrase of this ordinance 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 ordinance. Section 3: All ordinances or parts of ordinances in conflict with the provisions of this ordinance are repealed. Section 4: This ordinance shall be codified and included in the Code of Ordinances. Section 5: This ordinance shall take effect immediately upon enactment. PASSED AND ADOPTED this day of , 2008. ATTEST: CITY CLERK READ AND APPROVED AS TO FORM: Luis R. Figueredo, Nagin Gallop Figueredo, P.A Office of the City Attorney MAYOR First Reading — Second Reading- COMMISSION VOTE: Mayor Feliu: Vice Mayor Beasley: Commissioner Wiscombe: Commissioner Palmer: Commissioner Beckman: 3