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05-06-08 Item 28SUGARMAN & SU.SSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW Robert A. Sugarman* Howard S. Susskind Kenneth R. Harrison, Sr. Noah S. Warman D. Marcus Braswell, Jr. Pedro A. Herrera Ivelisse Berio LeBeau *Board Certified Labor & Employment Lawyer April 29, 2008 City Commission City of South Miami c/o City Manager 6130 Sunset Drive South Miami, Florida 33143 100 Miracle Mile Suite 300 Coral Gables, Florida 33134 (305) 529 -2801 Broward 327 -2878 Toll Free 1- 800 -329 -2122 Facsimile (305) 447-8115 Re: South Miami Pension Plan - Summary of Proposed Plan restatement Dear Commission Members: This firm represents the City of South Miami Pension. Plan. Our client has directed that we provide an overview of the enclosed proposed Plan restatement to be considered by the City Commission. The Board of Trustees of the Retirement Trust Fund recommends adoption of this proposed Plan restatement as an amendment to the existing code, to bring the plan into compliance with the Uniformed Services Employment and Reemployment Rights Act (USERRA), Chapter 185 of the Florida Statutes and certain Internal Revenue Code (IRC) requirements to maintain tax qualified status. This current codified pension plan ordinance has been amendment several times, either via the collective bargaining process or commission action. Several of these changes were not included in the codified plan ordinance as it is published in the on -line Muni -Code. The proposed Plan restatement is a re- writing of the existing Plan ordinance in a more readable format. In addition to this format revision a few provisions were eliminated as they had been rendered obsolete by certain amendments to the Plan and revisions were made or added to comply with USERRA, chapter 185 of the Florida Statues and IRC requirements. The board believes that enactment of the proposed Plan restatement would beneficial to the city as it will provide a single updated document that states the most recent revisions and compliance with state and federal requirements. City Commission City of South Miami April 29, 2008 Page 2 The Pension Plan actuary has provided a statement of impact for your consideration prior to final reading and enactment of this Plan restatement. We remain available to respond to any questions you may have on this matter. Yours truly, KENNETH R. HARRISON, SR. /krh cc: Board of Trustees Larry Wilson, Actuary, Gabriel, Roeder, Smith & Co. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 ORDINANCE NO. AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA AMENDING THE CITY OF SOUTH MIAMI PENSION PLAN, PROVIDING FOR A RESTATEMENT OF THE PLAN TO CONSOLIDATE THE VARIOUS AMENDMENTS MADE OVER TIME TO THE PLAN AND TO CLARIFY THE PROVISIONS OF THE PLAN; PROVIDING ADMINISTRATIVE AMENDMENTS TO THE PLAN TO COMPLY WITH STATE AND FEDERAL REQUIREMENTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING FOR ORDINANCES IN CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of South Miami desires to provide a restatement of it Pension Plan to consolidate amendments and revisions adopted of the years since the Plan was originally adopted; and WHEREAS, certain provisions of state and federal laws are required to maintain tax qualified status; and WHEREAS, the City recognizes that such pension plan restatement is a desirable action e to clarify the various provisions of the Plan; and WHEREAS, the City Commission has received and reviewed an actuarial impact 24 statement related to such restatement. 25 26 27 28 29 30 31 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT: Section 1. Part I, Provisions governing the South Miami Pension Plan, Chapter 16, Article II, of the South Miami Code of Ordinances is hereby amended and restated to read as follows: Part I. Provisions governing the South Miami Pension Plan. Chapter 16 - Pensions Page 1 of 26 I ARTICLE II - CITY PENSION PLAN 2 3 Sec..16 -11. Plan established. 4 5 A pension plan is hereby established and placed under the management of a pension 6 bear- Board of Trustees for the purpose of providing retirement allowances for employees of the 7 City of South Miami, Florida, and shall be known as "South Miami Pension Plan." The effective 8 date of the plan shall be October 1, 1965. If any provision of this article or the application 9 thereof to any person or circumstance is held invalid such invalidity shall not affect other 10 provisions or applications of the article which can be given effect without the invalid provisions 11 or application, 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 Base index shall mean the current index determined on the valuation date coincident with, or 17 otherwise, immediately preceding a Participant's normal retirement date. 18 19 The base index applicable to aParticipant who elects a late retirement date shall mean be the 20 base index which would apply had the partcipant's normal retirement date been such last 21 retirement date. 22 23 Basic benefit shall mean that portion of the pension payable to a pParticipant under the plan, 24 which portion, upon the disability or retirement of any Participant, is guaranteed both as to 25 amount and duration. 26 27 Beneficiary shall mean the person last designated by a Participant as entitled to receive any 28 benefits which may be payable under this plan by reason of the death of the Participant. 29 30 Consumer price index shall mean the statistical table based on changes in the price of consumer 31 goods and services published periodically by the Bureau of Labor Statistics of the United States, 32 which table relates to the United States as a whole. 33 34 Credited service shall mean Participant's continuous employment with the 35 Employer. Leaves of absence authorized by the Employer with periods of absence in connection 36 with military service during which the Participant's employment rights were protected by law 37 shall not be considered to have broken the continuity of his employment; provided, that the 38 employee has become re- employed by the Employer within time period provided in The 39 Uniform Service Employment and Reemployment Rights Act (USERRA) and for police officers 40 Chapter 185 of the Florida Statutes after honorable discharge from the military service. Further, 41 that the employee has paid an amount equal to the contributions that would have been made 42 during such leave of absence based on the Participant's salary immediately prior to entry into 43 military service, provided that police officer Participants shall not be required to make such 44 payment of contributions per Chapter 185, FS. No employee shall be eligible to become a 45 Participant during such absence. 46 Page 2 of 26 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 Current index shall mean the average of the six (6) latest available monthly Consumer Price Indexes published immediately preceding the applicable valuation date. Employee shall mean any person employed full -time by the Employer on a regular, permanent basis.; Elected officials, and fir -e a-n5 and any person whose customary employment is for twenty (20) hours or less in any one week, or for five (5) months or less in any calendar year shall be excluded. The city manager, and city clerk shall be included within the definition of employee, however such positions shall be allowed to opt out of this pension plan. Employer shall mean City of South Miami. 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 last three - year period ending 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. For police officers, final average compensation shall mean the greater of: (1) The average of the Participant's five best years of annual compensation during the last -ten (10) years of service or (2) The average of the Participant's annual compensation over the Participant's, last three (3) years, as described above. Group annuity policy shall mean a policy issued by an insurance company to the Employer providing retirement benefits as established in this pension plan. Investment shall mean purchase in any fund, stock, insurance policy or any other instrument or method as provided by law. AAember q, the Board of Trustees shall mean those individuals appointed to the pension board in accordance with the provisions of this pension plan. Participant shall mean any employee who has met the eligibility requirements provided herein and who has performed all acts required for eligibility. Unless otherwise limited by the context, including a former employee who has retired and who is receiving benefits under this plan, and a former employee whose employment has otherwise terminated and who remains eligible for benefits under this plan. Participation date shall mean October 1 of each year this plan is in effect, including October 1, 1965. Plan shall mean South Miami Pension Plan effective October 1, 1965, as the same may be amended from time to time. Page 3 of 26 I Plan year shall mean the twelve (12) month period commencing on any participation date and 2 ending on the following September 30. 3 4 Prior index shall mean the last current index which was used to adjust benefits on the last 5 valuation date immediately preceding the current Valuation Date. 6 7 Retirement date shall mean the date on which payment of a Participant's pension benefit 8 commences, whether such date is his normal or, if applicable, early or late retirement date. 9 10 Supplemental benefit shall mean a variable benefit reflecting changes in the cost of living 11 determined from the Consumer Price Index, which may become payable on October 1, 1970, and 12 every October first thereafter for the ensuing twelve -month period to persons retiring or 13 becoming disabled on or after October 1, 1970. 14 15 Valuation date shall mean the September first on which the current index shall be compared 16 with the Base Index of each payee receiving a basic benefit to determine whether a supplemental 17 benefit may be payable. 18 19 (Ord. No. 528, 12 -7 -65; Ord. No. 697, § 1, 10 -6 -70; Ord. No. 1418, § 3, 2- 21 -89; Ord. No. 1593, 20 § 1, 10 -5 -95; Ord. No. 1595, § 1, 11 -7 -95; Ord. No. 1761, § 1, 10- 16 -01) 21 22 See. 16-13. Eligibility. 23 24 (a) Each employee employed by the Employer on October 1, 1965, shall be a Participant on 25 the first participation date on which he has completed two (2) years of Credited service and has 26 attained his twenty -fifth birthday. 27 28 (b) Each Employee who becomes an employee subsequent to October 1, 1973, shall be a 29 Participant on the first participation date on which he /she has completed six (6) months of 30 Credited service and has obtained his/her twentieth birthday. For all current Employees as of 31 October 1, 1995, each fiscal year there will be a window for joining the retirement system; i.e. 32 October 1 through October 31. 33 34 (c) It shall become mandatory for all Employees hired on or after October 1, 1995, to join the 35 pension plan after completion of the pfabalienar-y pefio six months of employment by the City. 36 37 (d) Each eEmployee classified as police officer shall become eligible to participate in thise 38 plan upon the date of employment provided the police officer began participation in this plan 39 when first eligible as provided in subsections (a) and (b) of this section. 40 41 111C1y \+1\+Vl lV iJL[IZ1 Gi„ 43 44 (1) Eleetion to pff6eipate must be made within thif4y (3 0) days ef feeeipt ef neti 45 eligibility to pai4ieipate, 46 Page 4 of 26 1 2 4_,_( 3 4 5 , 6 7 sueh eash payment was made to the date ef sueh fepaymeR4. 8 9 Paftieipafien tmdef this seetien will be effeetive as ef Septembef 1, 1977. in deteffflining an 10 , 11 paffieipate undef this plan shall net be iffeluded- 12 13 14 15 (Ord. No. 528, 12 -7 -65; Ord. No. 908, § 1, 9- 21 -76; Ord. No. 954, § 1, 8 -2 -77; Ord. No. 1418, § 16 1, 2- 21 -89; Ord. No. 1544, § 1, 9- 21 -93; Ord. No. 1595, § 2, 11 -7 -95; Ord. No. 1828, § 1, 3 -15- 17 05; Ord. No. 1836, § 1, 4- 19 -05) 18 19 Sec. 16 -14. Pension benefits and retirement date. 20 21 (a) Retirement date. The normal retirement date with full unreduced pension benefits for a 22 Participant, shall be as follows: 23 24 (1) General employees. 25 shall be the first day of the calendar month coincident with or, otherwise, next following the later 26 of the Participant's sixtiethfifty -fifth birthday and the date on which the Participant has 27 completed ten (10) years of Credited service. 28 29 (2) Police officers. 30 onfi° *h full uBfedueed pension benefits isshall be the completion of twenty -five 31 (25) years of credited police service, regardless of age, or attainment of age sixty (60) and 32 completion of ten (10) years of credited police service. 33 34 (b) Amount of pension. The early amount of pension payable to a Participant on the first 35 day of the month coincident with or next following the Participant's retirement date shall be an 36 amount equal to the Participant's number of completed years of Credited service multiplied by a 37 percentage of Final average compensation as stated herein. shall be equal fe (a) as te pai4ieipa-a 38 ieti�iief to Oetobcr , 1970, -a bass e benefit - cvimrrcncn sA of r- etir-ef icnti+-- ''d crcc 39 40 , exeluding 41 42 , 43 44 45 (1) Basic benefit. Me, Page 5 of 26 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 (a) A basic benefit at the employee's .1—C, -- -.td six tefAhs (1.6) pefeent of the empleyee's final meted by the e pleyee p to his/her- +wenty fifth bift day. for Participant's retiring prior to October 1, 1970, shall be determined by multiplying 16 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. (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 by prior to the Participant's his/her 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 employ 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, 1.994, 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. (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. (3) Police officers (a) For sworn police personnel, effective October 1, 1993, the pension benefit accrual rate (multiplier) shall be increased from 1.6 percent to 1.8 percent, for services performed in the 1993 -1994 fiscal year. Page 6 of 26 I (b) Effective October 1, 1994, the pension benefit accrual rate (multiplier) 2 shall be increased from 1.8 percent to 1.9 percent, for services performed in the 1994- 3 1995 fiscal year. 4 5 (c) Effective October 1, 1995, the pension benefit accrual rate (multiplier) 6 shall be increased from 1.9 percent to 2.25 percent for services performed in the 1995- 7 1996 fiscal year. 9 (d) Effective October 1, 1996 the pension benefit accrual rate (multiplier) 10 shall be increased from 2.25 percent to 2.50 percent for services performed in the 1996- 11 1997 fiscal 'year. 12 13 (e) Effective October 1, 1997 the pension benefit accrual rate (multiplier) 14 shall be increased from 2.50 percent to 2.75 percent, for services performed in the 1997- 15 2001 fiscal year. 16 17 (f) Effective October 1, 2001, the pension benefit accrual rate (multiplier) for 18 sworn police personnel shall be increased from 2.75 percent to 2.80 percent for services 19 performed in the 2001 -2002 fiscal year. 20 21 (g) Effective October 1, 2002, the pension benefit accrual rate (multiplier) for 22 sworn police personnel shall be increased from 2.80 percent to 2.90 percent for services 23 performed in the 2002 -2003 fiscal year. 24 25 (h) Effective October 1, 2003 and thereafter the pension benefit accrual rate 26 (multiplier) for sworn police personnel shall be increased from 2.90 percent to 3.00 27 percent. The multiplier- f ,.t,.,. to be applied at the fiffie of r-e ;foment of eaeh >-,�� 28 unit employee - shall be applied pr-esefibed in the 1992 93 _ and 11705 (�v vviiiitivi 29 -ements. 30 31 (i) Notwithstanding the above subsection, the pension benefit accrual rate 32 (multiplier) for sworn police personnel shall not be less than two (2) percent for all years 33 of service. 34 35 (4) Supplemental benefit. A supplemental benefit, if any is payable, determined on 36 each valuation date which occurs after the participant's normal retirement date. The 37 supplemental benefit shall be equal to 1) an amount determined at the first applicable 38 valuation date by multiplying the yearly amount of basic benefit by the percentage, if 39 any, by which the current index exceeds the base index and (2) an amount determined at 40 each subsequent valuation date, where the current index exceeds the prior index, or where 41 the prior index exceeds the current index, by reducing such sum by the product of such 42 sum and the percentage by which the prior index exceeds the current index; provided, 43 however, that in no event shall the supplemental benefit payable at any time be rg_eater 44 than the excess of (1) the basic benefit increased at three (3) percent compounded 45 annually from the initial valuation date applicable to lithe Participant over (2) the basic 46 benefit. In no event shall the supplemental benefit be reduced below zero so as to affect Page 7 of 26 I the amount of basic benefit. Supplemental benefits shall commence or be adjusted as of 2 each October 1 and shall continue thereafter for the following eleven (11) months. 3 4 (c) Early retirement. 5 6 (1) A Paftieipanl, 7 , of subsequent to the 8 ' 9 pension benefits payable to any stteh Pai4ieipant on ear-15, fetifement date sha4l be eEfdal te a 10 , ef the amounA of pension to whie 11 the Paftieipai# is entitled up to early r-etifemen4 date in aeeafdanee with sttbseetien (b), 12 13 A police officer Participant may elect an early retirement date which may be the first day 14 of any calendar month coincident with, or subsequent to the Participant's fiftieth birthday and 15 completion of fifteen (15) years of Credited service. The pension benefits payable to any such 16 Participant on early retirement date shall be equal to an actuarial equivalent, determined in 17 accordance with the Table below, to the amount of pension to which is entitled up to early 18 retirement date in accordance with subsection (b). 19 20 Table 1 Age 65 en Nei=mal Refifemei4 Date 21 22 TABLE INSET: 23 Years prior- to nofmal Percentage =etirement date 4— 91.894 2— 84.588 3— 4— 72.176 5— 66.970 — 24 25 26 . 27 28 Table-l= Police officer Participant- Percentages for Early Retirement Date 29 30 TABLE INSET: 31 Years prior to normal Percentage retirement date Page 8 of 26 1 97 2 94 3 91 4 88 5 85 1 Age on normal retirement date shall be age nearest birthday. Years prior to normal retirement 2 date shall mean years and completed months from early retirement date to normal retirement 3 date. Allowance for such months shall be made by interpolating in this table. 4 5 Commencing after the paftieipantParticipant's normal retirement date the Basic Benefit of 6 any pai4ieip Participant retiring on or after October 1, 1970, will be supplemented by the 7 applicable Supplemental Benefit determined in the same manner as in subsection 16- 14(b)(2). 8 9 (d) Late retirement. A patie4pantParticipant, with the written consent of his 10 emplayerEmployer, may elect a later retirement date which may be the first day of any calendar 11 month after his—normal retirement date. If the partieirtParticipant's contributions shall 12 terminate on plate retirement, benefits shall be based on annual earnings and efedited 13 _Credited service to his late retirement date. 14 15 Commencing after the partieipan Participant's late retirement date the Basic Benefit of any 16 partieipantParticipant retiring on or after October 1, 1970, will be supplemented by the 17 applicable Supplemental Benefit determined in the same manner as provided in subsection 16- 18 14(b)(2), based on the Basic Benefit actually being paid; provided, however, that the first 19 applicable Valuation Date will be the first such date following such paftieipantParticipant's late 20 retirement date. 21 22 (e) Life income; death benefit. The normal form of pension shall be a life income with the first 23 monthly payment of a paftieipantParticipant's pension being due on leis- retirement date if teethe 24 Participant is then living, and the last monthly payment being due on the last monthly due date 25 on which the paftieipan Participant is living. If the death of the pai4ieipantParticipant occurs after 26 this form of pension has become operative but before the sum of all monthly payments that have 27 become due prior to the participant'shis death exceeds the death benefit which would have been 28 payable if the pai4ieipantParticipant had died immediately prior to hi-a-retirement date, there shall 29 be payable in one sum to the benefyBeneficiary entitled thereto an amount equal to the 30 excess of such death benefit over the sum of such monthly payment. 31 32 (f) Optional forms ofpayment 33 34 (1) A pollee effie°rParticipant entitled to a normal or early service retirement benefit 35 shall have the right at any time prior to the date upon which the first payment is received 36 to elect to have the benefit payable under one of the options provided in this section. The 37 ef€ieerParticipant shall be permitted to revoke any such election and to elect a new option 38 at any time prior to the receipt of the first payment. Election of the retirement option shall 39 be on a form prescribed by the Board of Trustees. Page 9 of 26 2 a. Life annuity. A peliee effi Participant may elect to receive an annuity 3 payable for life. This shall be the normal form of retirement. There shall be no 4 guaranteed payment in excess of the accumulated contributions of the 5 Participantmember, which contributions shall be paid to the 6 Participant'sfneffiber-'s estate or designated benefieiafyBeneficiary should the 7 Participantmember die prior to receiving payments equal to said contributions. 9 b. Joint and last survivor option. A palie per Participant may elect to 10 receive a reduced benefit for life and to have the same benefit (or a designated 11 fraction of the benefit) continued after the Participant'smember's death and during 12 the lifetime of a designated joint pensioner&aMvef. The Participante€€eer shall 13 have the option may of electing to receive the payment of a benefit of seventy - 14 five (75) percent, sixty -six and two - thirds (66 2/3) percent, or fifty (50) percent of 15 the Participant'smemberls monthly retirement allowance to be paid at the 16 Participant'smenbe�s death to ahis --� joint pensioner designated by the 17 Participantmember at the time of or prior to retirement, such benefit to be payable 18 during the lifetime of the joint pensioner. The reduced retirement benefit shall be 19 the actuarial equivalent of the amount of the retirement compensation otherwise 20 payable to the Participantmember. A designated joint pensionersver may be 21 any natural person, but need not be the spouse of the Participantmember. In the 22 event that the designated joint pensioners dies, ^r in the ease of ° sr°„s °, 23 the raffia°° is dissolved, before the Participant'smembef's benefit payments 24 begin, this option shall be canceled automatically and a retirement income shall 25 be payable to the member in the form of a life annuity as if the election had never 26 been made. W/ 28 c. Other options. The pension board may, approve by unifafm fule, establish 29 any other optional form of substantially equal payments, which are the actuarial 30 equivalent of any other form provided for in this plan, or which optional form of 31 payment is cost neutral to the plan. 32 33 (Ord. No. 528, 12 -7 -65; Ord. No. 697, §§ 2 -4, 10 -6 -70; Ord. No. 827, § 1, 6 -4 -74; Ord. No. 908, 34 § 2, 9- 21 -76; Ord. No. 1220, § 1, 1- 22 -85; Ord. No. 1418, § 2, 2- 21 -89; Ord. No. 1544, § 2, 9- 35 21 -93; Ord. No. 1593, § 2, 1.0 -5 -95; Ord. No. 1595, § 3, 11 -7 -95; Ord. No. 1761, § 2, 10- 16 -01; 36 Ord. No. 1828, § 2, 3- 15 -05; Ord. No. 1892, § 1, 11- 28 -06) 37 38 Sec. 16 -15. Disability benefits. 39 40 (a) If a pat4ieip Participant becomes totally and permanently disabled for a six -month period 41 while in the active employ of the empleyerEmployer, he shall receive a monthly disability 42 benefit during the continuation of suchhis— disability commencing as of the first day of the 43 calendar month following six (6) months of disability equal to one - twelfth (1/12) of the yearly 44 amount of pension to which the Participantbe is entitled in accordance with subsection 16- 14(b); 45 reduced in aeee ee with Table 1. A pokee °ffi°°r-Participant shall be entitled to select Page 10 of 26 I payment of a disability pension using any of the optional forms of retirement provided under 2 subsection 16- 14(f). 3 4 If the pai4ieip Participant remains disabled until his-normal retirement date, hethe Participant 5 shall then receive a basic benefit on the normal annuity form equal to the amount of disability 6 benefit the Participanthe was receiving. In addition to the basic benefit, the payments of any 7 span Participant who becomes disabled on or after October 1, 1970, will be adjusted after 8 the normal retirement date of the pai4ieip Participant by a supplemental benefit determined in 9 the same manner as provided in subsection 16- 14(b)(2), the last payment being due at the time 10 that the last basic benefit payment is due. If the disabled paltieip Participant ceased to be 11 totally and permanently disabled and returns to the service of the empleyerEmployer, the 12 ;Participanthe shall be entitled to resume coverage under the plan on the first of the month 13 following suchhis re- employment and the Participant's his pension at retirement shall be based 14 on efedit °a s °m,; °Credited service before and after suchhis period of disability..If the Participant 15 he -does not return to the service of the empleyerEmployer, theh-is vested pension shall be 16 determined in accordance with article VI, including as service for the purpose of determining the 17 applicable vesting percentage only, the period of suchhis disability. 18 19 (b) As used in this section "totally and permanently disabled" means the inability to engage in 20 any substantial gainful activity by reason of a medically determinable physical or mental 21 impairment which can be expected to result in death or to be of long- continued and indefinite 22 duration. 23 24 The disability of any pai4ieipa Participant shall be determined by the pension board, in 25 accordance with uniform principles consistently applied, upon the basis of such evidence as the 26 pension board deems necessary and desirable. The pension board may, at any time prior to the 27 pai4i6pant.Participant's normal retirement date, determine that the pafEieip Participant is no 28 longer totally and permanently disabled. In determining the nature, extent and duration of any 29 Participant's disability, the pension board shall select a physician to examine such 30 pai4kip—aBAParticipant and to advise the pension board with respect to such disability. The final 31 determination of the nature, extent and duration of such disability shall be made solely by the 32 pension board. 33 34 Disability shall not include a permanent incapacity directly incurred and due solely to military 35 service of any paftieipaa Participant which prevents they 4eirrreturni-ng to employment with 36 the emplayerEmployer and for which the Participanthe receives a disability benefit or pension 37 from the United States. 38 39 (Ord. No. 528, 12 -7 -65; Ord. No. 697, § 5, 10 -6 -70; Ord. No. 1761, § 3, 10- 16 -01) 40 41 Sec. 16 -16. Death of a par-flelpan Participant. 42 43 (a) Before retirement date. Upon the death of a par-tieipaR Participant prior to his-retirement 44 date there shall be paid to the b° "Beneficiary last designated by the Participants an 45 amount equal to the aggregate of the Participant'shis contributions made prior to the date of his 46 death. For General employee Participants, the contributions shall be credited with er- edited Page 11 of 26 1 interest compounded annually at the rate of three (3) percent per annum from the end of the year 2 of payment to the first of the month in which the death benefit is paid. 3 4 (b) After retirement date. Upon the death of a paftieipantParticipant on or after his- retirement 5 date, there shall be paid to the be Beneficiary last . designated by the Participanthiffi in 6 accordance with the following provisions, the benefit, if any, payable under the group annuity 7 policy. 8 9 (c) Beneficiary. Each partieipantParticipant shall have the right to name a 10 bene€reiar-yBeneficiary and to change suchhi-s be Beneficiary designation from time to 11 time. Any such exercise of rights shall become effective only in accordance with the provisions 12 of the group annuity policy and the rules and practices of the insurance company, where 13 applicable. Police officers who are Participantsmembefs of the plan shall have the right to name 14 one or more beneficiaries, jointly or sequentially and to change the benefieiar Beneficiary 15 designation from time to time in accordance with F.S. §§ 185.161 and 185.341. Upon failure of a 16 police officer Participant to designate a benefieiaf any benefit shall be paid to the 17 Participant'sdeeeas °a effie°r's estate. 18 19 (d) Cooperation of pension board. Upon the death of any paAmieripanlParticipant the pension 20 board shall cooperate with the Participant's his benefieiafyBeneficiary so that such 21 benefieiaf Beneficiary may receive such benefits as are provided by this plan or from any group 22 annuity policy. 23 24 (Ord. No. 528, 12 -7 -65; Ord. No. 1088, § 1, 10- 21 -80; Ord. No. 1463, § 1, 11 -6 -90; Ord. No. 25 1761, § 4, 10- 16 -01) 26 27 Sec. 16 -17. Termination of employment. 28 29 (a) If the employment of a pai4ieip Participant is terminated except by retirement, transfer to 30 ineligible status or death, the Participant'shis interest and rights under this plan shall be limited 31 to those contained in the following sections of this section. 32 33 34 ()) Any such pertieipan tParticipant shall be entitled to elect Option 1 or Option 2, as described 35 below, except that Option 2 shall be automatically considered as having been elected by the 36 pai4kip—antParticipant unless Option 1 is elected before. the paFfieipantParticipant's normal 37 retirement date. 38 39 Option 1: A cash payment of an amount equal to the aggregate of the contributions made 40 by the partieiparrtParticipant prior to his termination of employment with credited interest 41 compounded annually at the rate of three (3) percent per annum from the end of the year 42 of payment to the first of the month in which the cash payment is made. Swefft Provided 43 that police officer Participants eligible to withdraw their contributions from thise pension 44 pla may only withdraw their contributions without interest. 45 Page 12 of 26 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 Option 2: Pension benefits commencing on what otherwise would have been the normal retirement date of the pertieipantParticipant in an amount equal to the greater of that which can be provided by the aggregate of the contributions made by the paftieipantParticipant prior to the termination of his 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 —leis Ceredited service. TABLE INSET: Number of years of efed * °a sef �° °Credited service Percentage 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 Swefn Police officer Participantspefsennel, including bargaining unit empleyeeEmployees, 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 swe police officer Participantsper-sennel, including members of the bargaining unit, who are in thise plan ' effective October 1, 1993 and have between ten (10) years and twenty (20) years of continuous sworn police service in will be one hundred(100) percent vested. All general exipleyeeEmployees shall be one hundred (100) percent vested in the pensionretirement plan upon completion of ten (10) years' continuous Ceredited service. Accordingly, effective October 1, 1995, all general empleyeeEmployees who are in this plane ' as of October 1, 1995, and have ten (10) years or more of continuous service in the refifet °f* system will be one hundred (100) percent vested. Page 13 of 26 1 2 (c) No Supplemental Benefit shall be payable under this article. 3 4 (d) (1) A terminated pai4iea Participant's pension benefit payments shall commence on 5 what would otherwise have been the Participant'slis normal retirement date; provided, 6 however, that if on the date of his- termination of employment the Participanthe has 7 satisfied the service requirement for early retirement but not the age requirement, the 8 Participanthe may elect, in writing, on a form approved by the pension board, to have 9 payments determined on an actuarial equivalent basis commence prior to his-normal 10 retirement date, but in no event prior to the first day of the calendar month coincident 11 with or next following hi-s-completion of the age requirement. The pension board must 12 receive such written election at least six (6) months prior to the commencement of 13 benefits. If such pension commences before the pat4ieipan normal retirement 14 date, the amount of such pension shall be the actuarial equivalent, determined in 15 accordance with Table I or as to a police officer pai4ieipan tParticipant elass fie as -a 16 pew on the date of his- termination of employment determined in accordance with 17 Table II, as such tables appear in section 16 -14, of the monthly amount of pension benefit 18 on the normal form which would otherwise commence on his--normal retirement date. 19 20 (2) The basic benefit described herein shall be effective for all paAieip rtParticipants 21 who terminate employment on or after October 1, 1978. 22 23 (e) An Employee who has received a cash payment under Option -1 above may elect to 24 participate in this plan upon meeting the following requirements: 25 26 (1) Election to participate must be made within thirty (30) days of receipt of notice of 27 eligibility to participate. 28 29 (2) Such Employee had received a cash payment under Option 1 above. 30 31 (3) Such Employee pays to the pension plan an amount equal to the amount of cash 32 payment received under Option 1 above, plus credited interest compounded annually at 33 the rate of three (3) percent per annum from the date on which such cash payment was 34 made to the date of such repayment. 35 36 Participation under this section will be effective as of September 1, 1977. In determining an 37 Employee's Credited service at any future date, any service during which the Employee did not 38 participate under this plan shall not be included. 39 40 (Ord. No. 528, 12 -7 -65; Ord. No. 697, § 7, 10 -6 -70; Ord. No. 1155, § 1, 9 -7 -82; Ord. No. 1161, 41 § 1, 12- 21 -82; Ord. No. 1544, § 3, 9- 21 -93; Ord. No. 1595, § 4, 11 -7 -95) 42 43 Editor's 7 1 Ofdc� 1155, l�ptedSe��982, Aft. V! Ofd. NO 528 by ote:- -rvo. — § - amended Of 44 have been d 1. 4- , said pr-evisiens eedifi - -ass Z,§ 45 . 46 Page 14 of 26 1 Sec. 16 -18. Group annuity policy. 2 3 (a) The empleyerEmployer, in order to provide the benefits of this plan, may procure from an 4 insurance company a group annuity policy. In general, such group annuity policy shall provide 5 for the establishment and maintenance of a fund or funds by the insurance company to which 6 contributions will be credited and from which will be withdrawn the amount necessary to pay 7 pension benefits at retirement and to pay such other benefits as may be provided by the plan. 8 Any monies not so invested may be invested in other methods as provided by law. 9 10 (b) The terms and provisions of such group annuity policy shall be agreed upon between the 11 empleyerEmployer and the insurance company and shall, to the extent possible, be consistent 12 with the provisions of this plan and amendments hereto. 13 14 (Ord. No. 528, 12 -7 -65; Ord. No. 697, § 8, 10-6 -70; Ord. No. 1418, § 4, 2- 21 -89) 15 16 Sec. 16-19. Contributions. 17 (a) Each pai4ietParticipant shall contribute in each calendar year towards the cost of the 18 Participant's pension an amount equal to three (3) percent of the 19 pa#ieipanAParticipant's earnings. With the exception of swe police officer del 20 Participants, no paitieipantParticipant shall make any contributions toward the cost of any past 21 service pension to which the pai4ieip Participant is entitled under this plan. The 22 employer Employer shall contribute the balance of the cost, actuarially determined, of providing 23 the benefits of the plan. The empleyerEmployer's contributions shall be deposited into the 24 pension plan on at least a quarterly basis. Effective October 1, 1995, the pension contribution for 25 all general empleyeeEmployee paAkipai4Participants, including those general 26 empleyeeEmployees that are now members of the retirement system, shall be increased from 27 three (3) percent to five (5) percent of earnings. Effective October 1, 2001, the pension 28 contribution for all general Employee Participants, including those general Employees that are 29 now members of the plan, shall be increased from five (5) percent to seven (7) percent of 30 earnings. hem— pPolice officer Participantpersefme, including bargaining unit 31 emplayeeEmployees, that are now members of the plan and any sweet- police officerspersenflel 32 who join the plan in the future shall, effective October 1, 1993, have their contribution increased 33 from three (3) percent to five (5) percent of earnings. Effective October 1, 2001, sweet- police 34 officer Participantspersefm6 shall contribute 7.5 percent of earnings. 35 36 (1) General Employee Participants. Should the empleyerEmployer's annual 37 contribution be actuarially determined to exceed twelve (12) percent, both the 38 empleyerEmployer and the paffiepantParticipants shall share equally the amount in 39 excess of twelve (12) percent for that fiscal year. E eefive OEteb°1- 22005 shetild th 40 ' 41 (1T per-eent, beth the emplayefEffieyer- and the —gen 42 43 fefth-a4fisea'lyeaf. Effective October 1, 2005 should the total Participant and 44 Employer's annual contribution be actuarially determined to exceed (14) fourteen 45 percent, both the Employer and the general employee Participants shall share equally the 46 amount in excess of fourteen (14) percent for that fiscal year. Page 15 of 26 I 2 (2) Police officer Participants. Effective October 1, 2004 if the total police officer 3 partcipitants contributions and empleyerEmployer contribution 4 exceeds fifteen (15) percent of covered police payroll for any fiscal year, the excess over 5 fifteen (15) percent shall be shared equally by the empleyerEmployer and swefR- police 6 officerperseflnel puftie-ipantParticipants. Swe Ppolice officer del 7 pieiparrtParticipant contributions shall be deposited in the plan immediately after each 8 pay period. Effective October 1, 2001, an amount actuarially determined, to provide for 9 certain minimum benefits required by Chapter 185, F.S. shall be paid from the South 10 Miami Police Officers Retirement Trust Fund to the Plan each year, regardless of the 11 growth or diminution in future Chapter 185, F.S. funds.. 12 13 (b) All amounts paid by the employer Employer to the insurance company in accordance with 14 this plan shall represent irrecoverable contributions, except as may be otherwise provided in 15 subsection 16- 22(b). 16 17 (c) The eWleyerEmployer shall pay the reasonable expenses of the pension board, including 18 any expenses for legal and actuarial services. 19 20 (d) Rollover option. A paffieipa-R Participant eligible to receive a refund of contributions may 21 elect, at the time and in the manner prescribed by the pension board of tfustees, to have any 22 portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by 23 the paftieip Participant in a direct rollover. For the purposes of this section, the following 24 words and phrases shall have the following meanings indicated: 25 26 (1) Eligible rollover distribution is any distribution of all or any portion of the balance to 27 the credit of the distributee, except that an eligible rollover distribution does not include: 28 29 a. Any distribution that is one of a series of substantially equal payments (not 30 less than annually) made for the life (or life expectancy) of the distributee, or the 31 joint lives (or joint life expectancies) of the distributee and the distributees 32 designated benefteiaryBeneficiary, or for a specified period of ten years or more; 33 34 b. Any distribution to the extent such distribution is required under section 35 401(a)(9) of the Internal Revenue Code; and 36 37 c. The portion of any distribution that is not includable in gross income. 38 39 (2) Eligible retirement plan is an individual, retirement account described in section 40 408(a) of the Internal Revenue Code, an individual retirement annuity described in 41 section 408(b) of the Internal Revenue Code, an annuity plan described in section 403(a) 42 of the Internal Revenue Code, or a qualified trust described in section 401(a) of the 43 Internal Revenue Code, that accepts the distributees eligible rollover distribution. 44 However, in the case of an eligible rollover distribution to the surviving spouse, an 45 eligible retirement plan as an individual retirement account or individual retirement 46 annuity. Page 16 of 26 2 (3) Distributee includes an empleyeeEmployee or former empleyeeEmployee. In 3 addition, the empleyeeEmployee's or former empleyeeEmployee's surviving spouse is a 4 distributee with regard to the interest of the spouse. 5 6 (4) Direct rollover is a payment by the plan to the eligible retirement plan specified by 7 the distributee. 8 9 (Ord. No. 528, 12 -7 -65; Ord. No. 1544, § 4, 9- 21 -93; Ord. No. 1595, § 5, 11 -7 -95; Ord. No. 10 1761, § 5, 10- 16 -01; Ord. No. 1892, § 2, 11- 28 -06) 11 12 Sec. 16 -20. Pension bo Board of Trustees. 13 14 (a) The penmen boa Board of Trustees shall be comprised of seven (7) members consisting of 15 the two (2) active empleyeeEmployees of the city elected by Participants of the Plan, two (2) 16 citizen e'er of the eCity, iffid two (2) individuals with financial backgrounds a4l to b 17 appaii4ed by the "^ � the „a..;,,° and eensei4 of the eity eeFAfnis and the appointment 18 of one (1) active emplayeeEmployee of the city designated by the city manager, all to be 19 appointed by the mayor with the advice and consent of the city commission. No perisien 20 bear-dBoard of Trustee member shall receive any compensation or emolument for services on the 21 pension board. The board members shall each serve for a period of two (2) years, or until their 22 successors are appointed, which appointment shall be evidenced by an acceptance in writing of 23 such appointment. A member of the pension board may resign by delivering ahis written 24 resignation to the city clerk, and such resignation shall become effective upon its delivery or at a 25 later date specified therein. If, at any time there shall be a vacancy in the membership of the 26 board, provided there are not less than five (5) members, the board shall continue to act until 27 such vacancy is filled as provided above. 28 29 (b) The board shall hold meetings upon such notice, at city hall, and at such times as its 30 members may from time to time determine but in no event less than once each calendar quarter. 31 A majority of the members of the board at the time in office shall constitute a quorum for the 32 transaction of business. All action taken by the board at any meeting shall be by vote of the 33 majority of its members present at such meeting; pfevided, h^`• eyef, the beard .,, aet withet * 34 35 mss. 36 37 (c) Subject to the terms of this plan, the pension board ffrayshall from time to time adopt 38 bylaws, rules and regulations for the administration of the plan and the conduct and transaction 39 of its business and affairs. 40 41 (d) The pension board shall. have such powers as may be necessary to discharge its duties 42 hereunder; including but not limited to, the power to interpret and construe the plan, to determine 43 all questions of eligibility for benefits, duration of employment, computation of benefits, value of 44 benefits and similarly related matters for the purposes of the plan, and the pension board's 45 determination of all questions arising under this plan shall be conclusive and binding upon all 46 emplaye eEmployees, retired empleyeeEmployees, paffieip Participants and all other persons. Page 17 of 26 2 (e) No member of the pension board shall be precluded from becoming a pa#ieipan tParticipant 3 under this plan if he watild be otherwise eligible. 4 5 (f) The board shall keep accurate records and minutes of its proceedings and actions. The 6 pension board shall prepare annually a report showing in reasonable dretail and account of the 7 operations for the preceding year, as required by section 112.63 and 185.221 and shall deliver a 8 copy within sixty (60) days thereof to the city commission. The pension board shall also file with 9 the appropriate governmental bodies all necessary forms and documents that must be furnished 10 in accordance with applicable law. 11 12 (g) The board shall, from time to time, issue written instructions to the insurance company, if 13 Uplicable with respect to the pensions and other benefits to be provided pursuant to this plan. 14 15 (h) The board may authorize one (1) or more of its members to sign on its behalf any document 16 relating to the administration of this plan. 17 18 (i) Except for gross negligence or willful breach of the terms of this plan, no member of the 19 pension board shall incur any individual liability for any action or failure to act pursuant to the 20 terms of this plan. No member of the pension board shall be liable for the acts of any other 21 member of the pension board. The members of the pension board may engage agents, to include 22 consultants, custodians, actuaries. Accountants, auditors and investment managers to assist them 23 in their duties and may consult with counsel who may be an independent counsel or of counsel to 24 the employefEmpleye . The members of the pension board shall be relieved of all responsibility 25 whatsoever for anything done or not done upon the written advice of counsel. 26 27 (j) The members of the pension board may inspect the records of the empleyerEmployer 28 whenever such inspection shall be reasonably necessary in order to determine any fact pertinent 29 to the performance of their duties under this plan. The members of the pension board, however, 30 shall not be required to make such inspection, but in good faith may rely on any statement of the 31 eRipleyerEmployer or any of its officials or authorized empleyeeEmployees. 32 33 34 , as the empleyer- may ffem time to time agfee to Pay 35 f ,.v,.. its ,. ,., ands to the indiv;a,,,,, .,.,o.,..be fs 36 37 () The eity manager- shall be e ffleie nonvoting .,,o,,. be f of the p „ boa a 38 39 (Ord. No. 528, 12 -7 -65; Ord. No. 1207, § 1, 9- 10 -84; Ord. No. 1247, § 1, 2 -4 -86; Ord. No. 1253, 40 § 1, 8 -5 -86; Ord. No. 1707, § 1, 4- 11 -00) 41 42 Sec. 16 -21. Purchase of er- edited se Credited service. 43 44 (a) Swom pPolice officer Participantspersefffiel, including bargaining unit eleyeeEmployees, 45 eevered by— the 1992 93, Golleetive Bafgaining Agfeement shall be allowed to apply fer- 46 .ien to purchase credit for active duty in the U.S. military service, prior to employment as Page 18 of 26 I a Police officer with the City in accordance with USERRA and applicable state law up te—a 2 maximum of fi3ttf (4) y eafs. This provision shall not cover reserve active duty or weekend drill. 3 Reservists may use aetive duty military time if they ha-ve been fiefified by the Pr-esidefft and have 4 sefved in that eapaeity full +im° f r mefe than one (1) yeaf. Police officers electing to purchase 5 approve rp for military time will do so at total cost to the ParticipanteffT4eyee with no cost 6 assumed by the city. Pokey f " „°' i eeffieefs' ptifehase of appfaved militafy time shall be 9 (b) All partieiParticipants in the city pension planes shall be allowed 10 pe.ien to purchase credit for immediate past city service up to a maximum of five (5) years 11 in the city pension pla pursuant to procedures promulgated byte --city 12 managerat the time of such purchase. All costs for approved purchase of past city services shall 13 be one hundred (100) per cent borne by the Participantempleyee with no cost assumed by the 14 city. Should the eitypermit Participant be permitted to purchase efpast city service over a period 15 of time, the effective date of efedit °a se Credited service willshall be on the date such 16 purchase is paid in full. 17 18 (Ord. No. 1544, § 5, 9- 21 -93; Ord. No. 1616, § 1, 9 -3 -96) 19 20 Sec. 16 -22. Amendment and termination of the pension plan. 21 22 (a) The empleye Employer may amend the provisions of this pension plan at any time and from 23 time to time by an instmment in .afro, ° „+ °a in its name by _of£—°r of effi efs duly 24 , 25 enacting such amendments in a public meeting provided, however that: 26 27 (1) No amendment shall increase the duties or liabilities of the 28 bear- Board of Trustees withetA their- vffi4en eense �+ 29 30 (2) No amendment shall provide for the use of funds or assets held under this plan other 31 than for the benefit of empleyeeEmployees and no contributions paid by the 32 employer Employer shall ever revert to or be used or enjoyed by the employer Employer, 33 except as provided in subsection (b). 34 35 (b) The empleyerEmployer may terminate this pension plan at any time by 36 37 to ° ° „+° stieh an astr-t m°r+ and delivered to the pension beaf repealing the provisions of this 38 ordinance in a public meeting. In such event the pensieii bea Board of Trustees shall take the 39 necessary steps to have all the funds held by the 40 plan applied to the purchase of immediate or deferred 41 annuities, as the case may be, in the following order of priority and in accordance with the 42 provisions of section 16 -23, if applicable: 43 44 (1) An immediate annuity on the normal forms of pension for each empleyeeEmployee 45 whe is partieip Participant aPd -who has retired or has attained hi-s-normal retirement 46 date but who has not retired, in an amount equal to the amount of basic benefit to which Page 19 of 26 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 the Participanthe is entitled or would have been entitled if the Participanthe had retired immediately prior to such termination. (2) A deferred annuity on a full cash refund form of pension commencing at normal retirement date for each empleyee whe is a pai4ieipan Participant and who has not reached his-normal retirement date, for each disabled partietParticipant, and for each former employee Employee who is a terminated pai4ieip Participant wheand has not elected a cash payment as provided in option 1 of section 16 -17; in an amount of thehis paftieipan Participant's contributions paid to and received by the ' plan, with credited interest of at-three (3) percent per annum from the end of the year in which contributions were received to the date basic benefits commence. (3) A temporary annuity ending on this--normal retirement date for each disabled partieipantParticipant in an amount equal to the basic benefits being received h� reeeiving under section 16 -15. (4) A deferred annuity on the life annuity form commencing at normal retirement date for each terminated partieipantParticipant as defined in section 16 -17 in an amount equal to the amount the Participant he is entitled to under section 16 -17 and deferred annuity commencing at normal retirement date for each disabled partieipantParticipant and each employee whe is paf4ieipa Participant in an amount equal to the amount the participanthe would be entitled to under 16 -17 if the date of termination of employment less the amount of benefit applicable to him in (b) above. (5) A deferred annuity on the life annuity form commencing at normal retirement date for each employee who is partieipantParticipant and -who has not reached his normal retirement date in an amount equal to the amount of basic benefit the Participanthe would be entitled to if the Participant'shis normal retirement date were the date of termination of this plan less the amount of benefit applicable to hi in (2), (3) and (4) above. Provided, however, that if there are insufficient funds to provide any category of such annuities, the amount of annuity to be provided for each pai4ieip arrtParticipant in that category shall be reduced by a uniform percentage. If by reason of actuarial error the purchase of such annuities as is provided for in (1), (2), (3), (4) and (5) above does not exhaust the funds, any excess shall be paid by the insufanee eempany to such effipleyerEmployer. (Ord. No. 528, 12 -7 -65; Ord. No. 21 -70 -697, § 9, 10 -6 -70) Sec. 16 -23. Limitation of pension benefit payment. (a) Any provision in this plan to the contrary notwithstanding, during the ten -year period following the date the plan is initiated the benefits provided hereunder by the empleyerEmployer's contributions with respect to its twenty -five (25) highest paid empleyeeEmployees on the date the plan is initiated who then become or who may thereafter become paAkipan and whose pension benefit at normal retirement date will exceed Page 20 of 26 I one thousand five hundred dollars ($1,500.00) annually will be subject to the following 2 conditions: 3 4 (1) The benefits payable to any such empleyeeEmployee or his survivor (in the event of 5 the death after retirement) shall not exceed those purchasable by the larger of (a) and (b): 6 7 (a) Twenty thousand dollars ($20,000). 8 9 (b) Twenty (20) percent of the average regular annual compensation up to fifty 10 thousand dollars ($50,000.00) of any such empleyeeEmployee multiplied by the 11 numbers of years the plan is in effect. 12 13 (2) As long as this plan remains in full effect and its full current costs have been met, 14 the provisions of this section shall not restrict the payments of either full pension benefits 15 to any retired paitieipantParticipant or full survivor's benefits on account of any deceased 16 pai4ieipan Participant. 17 18 (3) In the event of termination of this plan, the terms and conditions of Florida Statutes 19 185.37, entitled "Termination of Plan and Distribution of Fund" shall govern for police 20 officer Participants. 21 22 (b) In no event may a Participant's annual benefit exceed the lesser of: 23 24 (1) $90,000 (adjusted for cost -of living in accordance with Internal Revenue Code (IRC) 25 Section 415(d). but onlv for the vear in which such adiustment is effective). or OR 27 (2) One hundred percent of the average annual compensation for the Participant's three 28 highest paid consecutive years; however, benefits of up to $10,000 a year can be paid 29 without regard to the 100 percent limitation if the total retirement benefits payable to a 30 Participant under all defined benefit plans (as defined in IRC Section 414(j)) maintained 31 by the City for the present and any prior year do not exceed $10,000 and the City has not 32 at any time maintained a defined contribution plan (as defined in IRC Section 4140) in 33 which the employee was a Participant. 34 35 (3) If the Member has less than ten years of service with the City (as defined In IRC 36 Section 415(b)(5) and as modified by IRC Section 415(b)(6)(D)), the applicable 37 limitation in paragraph (1) or par�ph (2) of this subsection shall be reduced by 38 multiplying such limitation by a fraction, not to exceed one. The numerator of such 39 fraction shall be the number of years, or part thereof, of service with the City, the 40 denominator shall be ten years. 41 42 (4) For purposes of this subsection, the "annual benefit" means a benefit payable 43 annually in the form of a straight life annuity with no ancillary or incidental benefits and 44 with no Member or rollover contributions. To the extent that ancillary benefits are 45 provided, the limits set forth in paragraphs (1) and (2) above will be reduced actuarially, Page 21 of 26 1 using an interest rate assumption equal to the greater of five percent or the interest rate 2 used in the most recent annual actuarial valuation, to reflect such ancillary benefits. 4 (5) Except with respect to distributions on or after January 1, 1997 to "Qualified Police 5 Officers," as that term is defined in Section 415(b)(2)(G) of the Code, if distribution of 6 retirement benefits begins before age 62, the dollar limitation as described above shall be 7 reduced actuarially using an interest rate assumption equal to the greater of five percent 8 or the interest rate used in the most recent annual actuarial valuation; provided however, 9 retirement benefits shall not be reduced below $75,000 if payment of benefits begins at or 10 after age 55 and not below the actuarial equivalent of $75,000 if payment of benefits 11 begins before age 55. If retirement benefits begin after age 65, the dollar limitation of 12 above shall be increased actuarially using an interest assumption equal to the lesser of 13 five percent or the interest rate used in the most recent annual actuarial valuation. For 14 purposes of this subsection, the "average annual compensation for a Participant's three 15 highest paid consecutive years" shall mean the Participant's greatest aggregate 16 compensation during the period of three consecutive years in which the individual was an 17 active Participant of the Plan. 18 19 (c) Distributions in Plan Years Beginning After December 31. 1986 Benefit navments to a 20 Participant must commence no later than the April 1 of the calendar year immediately following 21 the calendar year in which the Participant attains age 701/2, or with respect to plan years 22 beginning on or after January 1, 1997, the later of (i) the calendar year in which the Participant 23 attains age 701/2, or (ii) the calendar year in which the Participant retires. For Participants 24 whose benefits commence after April 1 of the calendar year following the calendar year in which 25 the Participant attains age 701/2, such Participant's benefit amount (including any additional 26 benefit which is accrued after such date) shall be actuarially increased for the period between (i) 27 April 1 of the calendar year following the calendar year in which the Participant attains age 28 701/2 (or the end of the Plan year in which any additional benefit is accrued )and (ii) the 29 Participant's benefit commencement date. Such actuarial increase shall be determined using the 30 interest and mortality assumptions used for the purposes of Actuarial Equivalence, and may be 31 offset to the extent an actuarial increase is otherwise provided due to delayed retirement. 32 33 (1) Distributions to a Participant shall not extend beyond the life of the Member or the 34 lives of the Member and his designated Beneficiary, or over a period not extending 35 beyond the life expectancy of the Member or the life expectancy of the Member and his 36 designated Beneficiar. 37 38 (2) If distribution has commenced to a Participant, and such Participant dies before 39 receiving such entire interest, the remainder of such interest shall be distributed over a 40 period at least as rapidly as under the method of distribution in effect prior to such 41 Participant's death. 42 43 (3) In the event distributions have not commenced to a Participant prior to the 44 Participant's death, the entire interest of the Participant shall be distributed within five 45 years after the death of such Participant. However, such fire -year rule shall not apply if 46 any portion of the Participant's interest is payable to a designated beneficiary, where such Page 22 of 26 I portion will be distributed over the life of such designated beneficiary, or over a period 2 not extending beyond the life expectancy of such beneficiary beginning not later than one 3 year after the date of the Participant's death or such later date as the Secretary of the 4 Treasury may by regulations prescribe. If the designated beneficiary is the surviving 5 eligible spouse of the Participant, the date on which the distributions would be required to 6 begin shall not be earlier than the date on which the Participant would have attained age 7 701/2. If the surviving eligible spouse dies before payments are required to commence, 8 the five -year rule shall be applied as if the surviving eligible spouse were the Participant. 9 10 11 (Ord. No. 528, 12 -7 -65; Ord. No. 868, § 1, 8 -5 -75) 12 13 Sec. 16 -24. Limitations generally. 14 15 (a) Plan exclusively for emp yeeEmployee's benefit; definition of plan. This pension plan is 16 created for the exclusive benefit of employee Employees of the employer Employer and their 17 beneficiaries, and shall be interpreted in a manner consistent with its being a qualified pension 18 plan as defined in section 401(a) of the Internal Revenue Code of 1954, as the same may be 19 amended from time to time. This section cannot be altered or amended. 20 21 (b) Funds restricted. Except as provided in section 16- 22(b), no funds contributed to this plan 22 and no assets of this plan shall ever revert to, be used or enjoyed by the empleyerEmployer nor 23 shall any such funds or assets ever be used other than for the benefit of empleyeeEmployees of 24 the emple }Employer or their beneficiaries. This section cannot be altered or amended. 25 26 (c) Compliance by parties, claimants. All parties to this plan and all persons claiming any 27 interest whatsoever hereunder agree to perform any and all acts and execute any and all 28 documents or papers which may be necessary or desirable for carrying out any of the provisions 29 of this plan or of any amendments to this plan or for complying with any federal or state 30 disclosure laws. 31 32 (d) Plan is not contract of employment. The pension plan shall not be construed as creating any 33 contract of employment between the empleyerEmployer and any of its empleyeeEmployees. 34 35 (e) Alienation of proceeds, levy, etc.; prohibited. No paAieip Participant shall have any right 36 to assign, alienate, anticipate or commute any payments hereunder; and, except as otherwise 37 prescribed by law, no payment shall be subject to the debts, contracts or engagements of any 38 payee, nor to a judicial process to levy upon or attach the same for the payment thereof; except 39 the recipient of any monthly benefit may authorize the Board of Trustees to 40 withhold from the monthly benefit those funds necessary to pay for the benefits being received 41 through the ei-yCity, to pay the certified bargaining agent of the city, and to make any payments 42 for child support or alimony. 43 44 (f) Laws of Florida applicable. This plan shall be construed according to the laws of the State 45 of Florida where it is made and where it shall be enforced. 46 Page 23 of 26 I (g) Gender; number. Wherever used in this article, the masculine gender shall include the 2 feminine gender and the singular shall include the plural. 3 4 (h) Lump sum payment. If at any time it is determined that monthly payments to be made at any 5 time or at any future date to a paffieipaa Participant will be less than ten dollars ($10.00) each, a 6 lump sum payment willmay be made in lieu thereof. 7 8 (Ord. No. 528, 12 -7 -65; Ord. No. 1868, § 1, 12- 20 -05) 9 10 Sec. 16 -25. Deferred compensation program created; administrator. 11 12 (a) There is hereby established a deferred compensation program of the City of South Miami. 13 14 (b) The city manager is hereby designated as the official to approve and administer a deferred 15 compensation plan as required by state law. 16 17 (c) The city attorney is hereby designated as the appropriate official to determine, in accordance 18 with the requirements of F.S. § 112.215(6)(b) (1976), whether the compensation deferred under 19 any plan approved by the city manager will not be included in the Participantsempleyees taxable 20 income under the federal or state law until it is actually received by such ParticipanteRiph)yee 21 under the terms of the plan, and that such compensation will nonetheless be deemed 22 compensation at the time of the deferral for the purposes of social security, the pension 23 pl of the City of South Miami or for any other retirement, pension or benefit 24 program required by law. 25 26 (d) The deferred compensation program authorized hereunder and any other plan approved and 27 adopted as herein provided, will exist and serve in addition to any other retirement, pension or 28 benefit system established by the federal government, the State of Florida or the City of South 29 Miami, and shall not supersede, make inoperative or reduce any benefits provided by the Florida 30 Retirement System or by any other retirement, pension or benefit program established by law. 31 32 (Ord. No. 929, §§ 1 -4, 3 -1 -77) 33 34 Sec. 16 -26. Pre - retirement survivor annuity. 35 36 Notwithstanding any other provisions of this plan, in the event of death of any qualifyin 37 Participant with a vested benefit a pre- retirement survivor annuity will be provided to the spouse 38 of such Participan t in the eve„ a f dea4 , e f any qualifying ,.,,f fie:pant with vested b ene& 39 provided the paf ieipa Participant and spouse have been married throughout the one -year period 40 ending on the date of the paftieip tParticipant's death. Commencing with the first plan year 41 beginning after December 31, 1984, any qualifying pai4ieip Participant who attains suclihis 42 annuity starting date shall receive hWhe benefit in the form of a qualified joint and survivor 43 annuity, unless otherwise elected with appropriately witnessed spousal consent. The amount of 44 the survivor annuity shall be the minimum amount required under section 401(a)(11) of the 45 Internal Revenue Code. If any qualifying paAitParticipant has designated a person, persons 46 or entity other than his or her spouse as the be Beneficiary of any plan benefits payable Page 24 of 26 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 upon his or he death of the Participant, such ben 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 partieipantParticipant is any married paf ic-iparrtParticipant who completed at least one hour of service (or paid leave) on or after August 23, 1984 who has yet to attained his annuity starting date under the plan. A vested partieipaa 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 partieiparrtParticipant (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 Employer contributions, and (3) has not yet reached his of 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 paftieipan annuity starting date or the date of the partieipantparticipant's death. A vested paAieipantParticipant 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 partieipantParticipant (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 per 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 paffieip—anAparticipant's annuity starting date or the partieipantParticipant's death. The pai4ieip Participant shallvAH not bear any part of the cost of providing the pre- retirement survivor annuities described above, howeverand-wiUshall bear the cost of any joint and survivor annuity provided at the annuity starting date. 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. Page 25 of 26 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 Section 4: This Ordinance shall become effective upon adoption. PASSED and ADOPTED this ATTEST CITY CLERK 1 st Reading - 2nd Reading day of , 2008 READ AND APPROVED AS TO FORM CITY ATTORNEY MAYOR COMMISSION VOTE: Mayor Feliu: Vice Mayor Beasley: Commissioner Wiscombe: Commissioner Palmer: Commissioner Beckman: WAN4y Documents\resolutions \Ordinance Pension Plan Restatement 2008 (2)First Draft.doe Page 26 of 26 CITY OF SOUTH MIAMI PENSION PLAN SPECIAL MEETING April 11, 2008 MINUTES Chairman Cassel called the special meeting of the Board of Trustees of the City of South Miami Pension Plan to order at 9:00 a.m. on April 11, 2008 at the City of South Miami City Hall Commission Chambers. TRUSTEES PRESENT: Bradley Cassel, Doug Baker, Mr. De la Torre, and Rita Torres ABSENT & EXCUSED — Peter Isern OTHERS PRESENT: Pete Prior of Benefits USA, Inc., Kimberly Kutlenios and Fred Johnson of Fifth Third, Robert H. Buker III of USBank, and Ann M. Canner and Felecia Relief of Comerica Bank. UNFINISHED BUSINESS RFP Custodian Decision Firth Third Bank Mr. Fred Johnson and Ms. Kutlenios addressed the board regarding the bank. Mr. Johnson said the bank was founded in 1858 with headquarters in Cincinnati, Ohio and they are the tenth largest financial institution in the United States. Fifth Third Bank has $223 billion in assets under care with over 80 years of custody experience and over 500 institutional custody relationships with assets over $78 billion for public entities. Mr. Johnson noted that some of the local clients are on page three, such as the Melbourne Firefighters and General Employees, St. Augustine Firefighters, Lake City Firefighters and Tamarac Police and General. Ms. Kutlenios said that the trustees would have online access, if they want, as well as for the money managers and consultant. It was noted that the money managers will only be able to see their own statements, they cannot see other manager's statements but the trustees can. Ms. Kutlenios also said that Fifth Third will provide all the distribution forms in either Microsoft Word or Excel. Mr. Johnson said that the fee is 4 bps and is all inclusive. With all the relationships in Florida, contractually Fifth Third has no issue as they work with the board's attorney on several mutual clients. Comerica Incorporated Ms. Ann Caner and Ms. Felecia Relief addressed the board regarding the services they provide. Ms. Caner said that they have a large presence with Taft Hartley employees and their pensions, as well as municipal employee pension plans. Ms. Caner. noted that the bank was established in 1849 in Dallas, Texas and is among the 20 largest banking companies in the United States with 400 offices located in Michigan, Florida, California, Texas and other states. Ms. Caner noted that she is the local representative for the State of Florida and Felicia is the pension account representative. Chairman Cassel asked if there are any administrative fees in the sweep accounts. Ms. Caner replied that the sweep accounts are all institutional and have no additional fees to the board. Ms. Relief commented that the 10 year certain notification is reviewed on a semi - annual basis with the Social Security Administration, as well as online documentation that the retiree is eligible to continue to receive benefits. The bank also provides custody online, downloading capabilities, historical pricing and custom reports. Chairman Cassel asked if they would train certain people to assure the forms are filled out correctly and Felicia said yes. They can come down to the office or have a WEBX training session as well. Ms. Caner said that although they are ranked in the top 20 banks in America, they service clients from one million dollars to one hundred million dollars, providing service to clients such as South Miami. U.S. Bank Mr. Buker addressed the board thanking them for the opportunity to present USBank to the Trustees. Mr. Buker said that USBank is the sixth largest financial services holding company with $238 billion in assets. They have over 2,518 banking offices in 24 states serving Endowments & Foundations, Taft - Hartley and Public Entities, to name a few. Ms. Glenda Webb and Ms. Carol Millican would be the two employees of the bank that are the client representatives for this account. Mr. Buker noted that the fund invests in the highest money market accounts available (Institutional) with no additional fees to the board. Mr. Buker said that the sweeps are reviewed weekly and can be provided to the trustees via email on a weekly basis if needed. The trustees, administrator and consultant can have online access to the account as well and USBank can provide any custom documentation that may be needed. Mr. Buker noted that the TrustNow Essentials is part of the SEI software. US Bank is the largest client of SEI, who provides two employees to the technology division. The bank also serves St. Johns County, Indian River, and St. Petersburg General. Conclusion of Review Chairman Cassel asked the board to consider the managers and if anyone has any recommendations. Trustee Baker said he has a preference for Fifth Third and US Bank. The technology for US Bank is very impressive. Trustee De La Torre said he favors US Bank because of their depth of services, such as the quarterly. death inquiry. After much discussion, Trustee De La Torre moved to retain US Bank, pending the board attorney to review the contract and the provisions of the proposals. Trustee Baker seconded the motion and the motion passed. REPORTS: Chairman Discussion on Revised Audit Chairman Cassel noted that the revisions were completed Tuesday night at midnight and the amendments have been made to both parties satisfaction. Mr. Prior said he would send a revised copy to the city. Report on update of Pension Ordinance & Qualification of Pension with IRS Chairman Cassel also spoke on the review of the ordinance and is asking the trustees for permission to provide the ordinance to the city council after review from council and chairman. The ordinance for the qualification of the plan was reviewed again with the chairman and the board attorney and this should be concluded soon. Chairman Cassel said he has been contacting Attorney Harrison on the matter via email. Chairman Cassel noted that since has been working on this matter for quite some, it would be appropriate for the board to approve him to contact -the city regarding the ordinance. Trustee De La Torre moved to have Chairman Cassel provide. the ordinance and backup to the city, and any other follow up required, which Trustee Baker seconded and the motion passed. ADJOURNMENT: Chairman Cassel moved to adjourn the meeting at 12:00 p.m. and seconded by Trustee Baker. The motion passed 4 -0. Secretary 2006 Ordinance ( Ordinance No. 24 -06 -1892 with PBA Contract) ORDINANCE NO. 2 4- 0 6 -18 9 2 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA AMENDING THE CITY OF SOUTH NIIAMI PENSION PLAN SECTIONS 16 -14(B) "PENSION AND RETIREMENT DATE" AND SECTION 16 -19(A) "CONTRIBUTIONS ", PROVIDING FOR COMPLIANCE WITH CURRENT COLLECTIVE BARGAINING AGREEMENTS BETWEEN THE CITY OF SOUTH MIAMI AND RECOGNIZED EMPLOYEE LABOR ORGANIZATIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of South Miami desires to provide compliance with collective bargaining agreement currently in existence between the City and its several recognized Employee Labor Organizations; and WHEREAS, the .City Commission has received and reviewed an actuarial impact statement related to such early retirement incentive. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA: Section 1. Part I, Provisions governing the South Miami Pension Plan, Section 16 -14(b) of the South Miami Code of Ordinances is hereby amended to read as follows: Sec. 16 -14. Pension benefits and 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 percentage of Final average compensation as stated herein. to pattieipaat - for - te— Qettebe 'ter ^ -�-a basie ''e"°fit h• fi errs t date let ed lty _mWti «l. n tenths- (1.6) perve hisAter- final average e11l1NKY by eeffiPlet date, exeluding the fifst �Kve (2) years of swA seMee and any additional s - i . le4ed by h4nAer- prior- 1-8- his/her- twenty fifth bkdi&y (b)as to 'a paf ieipi'm"f mtitmag on and Qete ex -4, 1970, the sum of (1) and (24-. Page 1 of 4 Ord. No. 24 -06 -1892 (1) Basic benefit. A basic benefit -at 4h@ employee's normal r-etkefflellt 11 the number- of izis-ircr'v vxriYae uV °u e„,s of ef-ed-4ead e e „f W„r „r he- efirer..,evj# d" ^tefor Participants retiring luu prior to October 1 1970 shall be determined by multiplying one and six - tenths 1.6 ercent of the Participant's Final average com ensation 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 empleyweParticipant prior to his/her twenty -fifth birthday. However, as to those pParticipants who became an employee subsequent to October 1, 1973, there shall only be excluded the first six (6) months of. such service and any additional service completed by the Participant prior to his/her. twentieth birthday and/or additional service completed by the employee prior to the time the employee became a pParticipant. Effective October 1, 1995, the pension benefit accrual rate (multiplier) for general MIMee participants excluding police personnel, shall be increased from 1.6 to 1.8 for services performed in the 1995 -96 fiscal year; effective October 1 1996, the pension benefit accrual rate (multiplier) for general employee participants, excluding_ police personnel shall be increased from 1.8 to 2.0 for services performed in the 1996 -97 fiscal year. Effective September 30 1999 the vension benefit accrual rate multiplier) for general employee participants excluding police personnel shall be increased from 2.0 to 2.50. Effective October 1, 1999 and thereafter, the pension benefit accrual rate (multiplier) for general employee participants excluding police personnel, shall be increased from 2.50 to 2.75. Q_For sworn police personnel, effective October 1, 1993, the pension benefit accrual rate (multiplier) shall be increased from 1.6 to 1.8, for services performed in the 1993 -94 fiscal year; effective October 1, 1994, the pension benefit accrual rate (multiplier) shall be increased from 1.8 to 1.9, for services performed in the 1994 -95 fiscal year; effective October 1, 1995, the pension benefit accrual rate (multiplier) shall be increased from 1.9 to 2.25 for services performed in the 1995 -96 fiscal year; effective October 1 1996 the pension benefit accrual rate (multiplier) shall be increased from 2.25 to 2.50tiG viva Oetebef 1, 1996, for services performed in the 1996 -97 fiscal year; effective October 1,' 1997_the pension benefit accrual rate (multiplier) shall be increased from 2.50 to 2.75, effeetive Getebef 1, 1997, for services performed in the 1997 -98 fiscal year/ and - herea effective October 1, 2001, the pension benefit accrual rate (multiplier) for sworn police personnel shall be increased from 2.75 to 2.80; effective October 1, 2003, the pension benefit accrual rate (multiplier) for sworn police personnel shall be increased from 2.80 to 2.90; 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.The -2- Ord. No. 24 -06 -1892 multiplier- fiwter- to be applied at the time of Fefifement of eaeh baf&ning i empleyee shall be applied as rrovdar the 1992 - 3 -- and r9» -9or- oonQVCi.e . Provided, however, the pension benefit accrual rate (multiplier) for sworn police personnel shall not be less than two (2) percent for all years of service. Section 2. Part I, Provisions governing the South Miami Pension Plan, Section 16 -19(a) of the South Miami Code of Ordinances is hereby amended to read as follows: Sec. 16 -19. Contributions. (a) Each pParticipant shall contribute in each calendar year towards the cost of hi-sthe Participant's pension an amount equal to three (3) percent of hiethe Participant's earnings. With the exception of sworn police e€fiserspersonnel, no pParticipant shall make any contributions toward the cost of any past service pension to which hethe Participant is entitled under this plan. The eEmployer shall contribute the balance of the cost, actuarially determined, of providing the benefits of the plan. The eitjAEmployer'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 eg neral employees that are now members of the Plan, shall be increased from three (3) percent to five (5) percent of earnings. Sworn police personnel, including bargaining unit employees, that are now members of the re ' lap and any sworn olp ice personnel who join the Ae -emea4 ^ystemPlan in the future shall, effective October 1, 1993, have their contribution increased from three (3) percent to five (5) percent of earnings. Effective October L2001, sworn police personnel shall contribute seven and one -half (7.5) percent of earnings. LD Should. the eky!sEmployer's annual contribution be actuarially determined to exceed twelve (12), both the etyEmployer and the empleyeesParticipants willshall share equally the amount in excess of twelve (12) percent for that fiscal year. n ewe- Oeteber 1, 1995, the pensio n eeffftibtAien &r- A general employees, ineAuding these eWleyees that ffe pffG814 t& five (5) per- Effietive Oeteber- 1, police off;eo„. shell ,.,,.,tribute seven - and on (7.5) gr-eent —ef-eaFaiag&. Effective October 1, 2005 should the Employer's annual contribution be actuarially determined to exceed (14) fourteen percent, both the Employer and the general employee Participants shall share equally the amount in excess of fourteen (14) percent for that fiscal year. (2) Effective October 01, 2004 lif the total sworn police personnel contribution and eityEmploer contribution exceeds s°_�- teen fifteen -3- Ord. No. 24 -06 -1892 percent of covered police payroll for any fiscal year, the excess over seveateen (T fifteen (15) percent shall be shared equally by the eityEmployer and sworn police �spersonnel Participants. Sworn Ppolice personnel Participant contributions shall be deposited in the peasie"Elan immediately after each pay period. Effective October 1, 2001, a minimum of twelve thousand four hundred ninety-eight dollars ($12,498.00) wi4shall be paid from the South Miami Police Officers Retirement Trust Fund to the 6ity pension Ian each year, regardless of the growth or diminution in future Chapter 185 funds, in partial exchange for the retirement after A25 years of Credited service and. -eta benefit improvement. Section 3: 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 4: All ordinances - or parts of ordinances in conflict with the. provisions of this ordinance are repealed. Section 5: This Ordinance shall take effect immediately upon approved. PASSED AND ADOPTED this 281h day of November, 2006 TTEST: Y CLERK 1St Reading — 10/17/06 2nd Reading 11/28/06 READ AND APPROVED AS TO FORM: qu;1ig-:11e;reddo, y Attorney, Nagin Gallop & Figueredo, P.A. APPROVED: Q M YOR COMMISSION VO E: 4 =0 Mayor Feliu: Yea Vice Mayor Wiscombe: absent Commissioner Palmer: Yea Commissioner Birts: Yea Commissioner Beckman: Yea South Miami bftd CITY OF SOUTH MIAMI �t ' °Z'��• OFFICE OF THE CITY MANAGER o Rti INTER- OFFICE MEMORANDUM 2001 To: The Honorable Mayor Feliu and Members of the City Commission Via: Yvonne S. McKinley, City Manager From: Jeanette Navarro, Human Resources Manager Date: October 17, 2006 Item No. Subject: 'UPDATING PENSION ORDINANCE SECTION 16 -14 (B) AND SECTION 16 -19 (A)- Request: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA AMENDING THE CITY OF SOUTH MIAMI PENSION PLAN SECTIONS 16 -14(B) "PENSION AND RETIREMENT DATE" AND SECTION 16 -19(A) "CONTRIBUTIONS ", PROVIDING FOR COMPLIANCE WITH CURRENT COLLECTIVE BARGAINING AGREEMENTS BETWEEN THE CITY OF SOUTH MIAMI AND RECOGNIZED EMPLOYEE LABOR ORGANIZATIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION;. AND PROVIDING FOR AN EFFECTIVE DATE. Reason/Need: A letter was received from Pension Attorney wherein it was indicated that there were inconsistencies with the ordinance and collective bargaining agreements related to the pension. Upon review, it was determined that certain areas of the Pension Ordinance mast be updated to reflect current provisions agreed upon by the City and all bargaining units (PBA and AFSCME). Cost: Funding Source: Backup Documentation: Letter from Pension Attorney Letter from Actuary Collective Bargaining Agreements for PBA and AFSCME RGabriel GS Roeder Smith 8c Company 301 East Las Olas Blvd. . 954.527.1616 phone Consultants & Actuaries Suite 200 954.525.0083 fax Ft. Lauderdale, FL 33301 -2254 www.pbriefroedercom October 13, 2006 Ms. Haydee Lopez Benefits USA,. Inc. 3810 Inverrary Blvd., Suite 208 Lauderhill, Florida 33319 Re: City of South Miami Pension Plan Dear Haydee: CEI ® E OCT 18 2006 CITY CLERK'S OFFICE As requested, we have performed an actuarial review of the attached proposed Ordinance. Based upon our review, the proposed Ordinance: 1. Increases the multiplier for General Employees. 2. Increases the multiplier for Police Officers.' 3. Increases the employee contribution rate for General Employees. 4. Increases the employee contribution rate for Police Officers. 5. Provides for cost sharing of 6ontributions between the General Employees and the City. 6. Amends the terms for cost sharing of contributions between the Police Officers and the City. 7. Provides for a transfer of State funds from the South Miami Police Officers Retirement Trust Fund to this Pension Plan to pay for certain minimum benefits. . 8. Provides for severability. 9. Provides for codification. 10. Provides for an effective date. The proposed Ordinance is a codification of Plan provisions that reflect administrative and Plan benefits resulting from bargaining and other Plan documentation that have been recognized in relevant actuarial valuations. Based upon the actuarial assumptions and methods -- and PIan provisions considered in the October 1, 2005 Actuarial Valuation, the proposed Ordinance is a no cost Ordinance under our understanding of State funding requirements. We are available to respond to any questions concerning the above. Sincerest regards, Lawrence F. Wilson, A.S.A. Senior Consultant and Actuary Enclosure cc: Ms. Jeanette Enrizo- Navarro Kenneth R. Harrison, Esq. SUGARMAN & SUSSKIND PROFESSIONAL ASSOCWTION ATTORNEYS AT LAW Robert A- Sugarrnan♦ Howard S. Susskind Kenneth R. Harrison, Sr. Dovld E. Robinson D. Marcus Braswell, Jr. Pedro A. Herrero a Board Certified Labor & Employment Lawyer July 13, 2006 Lawrence F. Wilson, A.S.A.. Senior consultant and Actuary Gabriel Roeder Smith. & Company 301 East Las 01as Blvd. Suite 200 Fart Lauderdale, Florida 33301 -2254 Re: City of South MzamI Pension Plan Response to your letter ofMarch 30, 2006 Dew Mr. Wilson: 2801 Ponce De Leon Boulevar, Suite 75 Coral Gables, Florida 3313 (305) 529 -280 Broward'327 2871 Toll Free 7-800-329-212 Focsrmlle (305) 447 -811: . This firm represents the Board of Trustees of the City of South Miami Pension Plan. We have been requested by the administrator of the PIan to respond to the above referenced letter. In order to respond to your inquiries we reviewed the prior and current collective bargaining agreements for the three employee groups and the current plan document, Our review of these documents concurred with your summary of the conflicting. provisions. We have discussed these items with the Human Resources Department of the city. They advised us that the multiplier numbers have been reconciled by side letter With the PBA and we have requested a copy of that letter. Based on this informattion we opine that the prior collective bargainine aereement contains h . nnrrPrt multiplier nPrrPntaar+e fnr artici ants. Our review Of tbiE plan document found that =Qd(n 16 -14 mesentc some conflicts .with __ the current collective bargaining agreements. Section 16-19 reads as'follows: Sec. 16-19. Contributions (a) Each participant shall contribute in each calendar year towards the cost of his pension an amount equal to three (3) percent of his earnings With the exception of police offlcers, no participant shall make any contributions toward Lawrence F. Wilson, A.S.A. Senior consultant and Actuary Gabriel Roeder Smith & Company July 13, 2006 Page 2 the cost of any past service pension to ;which he is. entitled under this plarz. The employer shall contribute the balance- of the cost, actuarially determined of providing the 'benefits of the plan. The - city's contributions shall be deposited into the pension plant on at least a quarterly basis Sworn police personnel including bargaining unit employees, that are now members of the retirement system and any sworn personnel who join. the retirement system in the future shall, effective October 1, 1993, have their contribution increased from, three (3) percent to five (5) percent Should the city's annual contribution be actuarially determined- to exceed twelve (12), both -the city and the employees will share equally the amount in excess of twelve (12) percent for that fiscal year. Effective October 1, 1995, the pension. contribution for all general employees, including those employees that are now members of the retirement system, shall be increased fron , three- (3) percent to five (5) percent. Effective October 1, 2001, * sworn police of eers shall contribute seven and one-half (7 5) percent of earnings 1f the' total police contribution and city contribution exceeds seventeen* (17) percent of covered police payroll for any fiscal year, the excess over seventeen (17) percent shall be divided in half and -shared equally -by the city and police members. Police contributions shall be deposited in the pension plan immediately after each pay, period Effective October 1, 2001, a minimum of twelve thousand four hundred ninety-eight dollars ($12,498.00) will be paid from the South Miami Police Officers Retirement Mist Fund to the city pension plan each year, regardless 'of the growth or diminution in future Chapter. 185 funds, in partial exchange for the A25 and out benefit improvement This section was last amended by ordinance number 1761 dated 10116101, indicated as follows: (Ord No. 528, 12 -7-65, Ord No. 1544, § 4, 9- 21 -93, Ord No. 1595, ,f 5, 11 -7- 95; Ord No. 1761, § 5, 10- 16 -01) Section 3d, Article 37 o agreement_sW= -=hat &e-- nplayee contribution shall be 7% commencing the 1d year of the agreement, which is 10/1/04. Section 16-19 above states that the em E loyee contdbution is 5 %. This is an obvious conflict, and we have asked_ the city to advise of the -correct percentage and if required to amend the ordinance. - The agreement further states that commencement_ of the second year LI 0 /1/0D should the total actuarially determined contnbution exceed 145/o then the excess amount shall be Abated s Lawrence F. Wilson, A.S.A. Senior consultant and Actuary Gabriel Roeder Smith &.Company. July 13, 2006 Page 3 contribution be actuarially determined to exceed 12% then the sharing takes effect. Again we . have requested 'the city to advise us of the correct percentage and whether it is the city's contribution or the total contribution that must be exceeded. -The PBA agreements contain similar language in Article 30 of the Lis. & Capts. Agreement and Article 33- of the PO and Sgts. Agreement, both of which a4dress pension issues, These agreements cause the following concerns. Both meats slate that effective 10 /l /01 employee contributions will be 7.59/9, which nsisteat with section 1649. . However both meats requue o e otm contribution be actuarially determined to__ exce.L15010 then. the city and employee sball share equally the excess amount, while section 16-19 states that should the total police contribution and cdy contra udon exceed 17% of covered police payroll for any fiscal year, the excess over 17% shall be divided in half and shared equally by the city and police member. Once again we have a conflict and have asked the city to advise us which percentage is correct. It is our opinion that the current collective bargaining agreement language should be raRpnfpA in ti"a'nriNntnnn "arwrrrm lkaeo.ri nn nnr lrnrlwrcfnnA;nrs n 't o o vA are of the opinion that the multiplier percentages should remain as - stated in 7.5% sbould take effect when the total contribution exceeds 14% for general emlovee Darticinants active 1011105 and 15% 1 ats effective 10/1/01. If you have any questions or concerns on our position please do not hesitate to call our office direct. Yours. truly, HARRISON, SR Cc:' Board of Trustees G.- X%SNnVkACrUac pm twAC7U ett=Gi30Mw20o&lA GRSGabriel Roeder Smith & Company 301 East Las Olas Blvd. 954.527.1616 phone Consultants & Actuaries Suite 200 954.525.0083 fax Ft. Lauderdale, FL 33301 -2254 wwwgabrielroedercoj March 30, 2006 Ms. Haydee Lopez Benefits USA, Inc. 3810 Inverrary Blvd., Suite 208 Lauderhill, Florida 33319 Re: City of South Miami Pension Plan Dear Haydee: In order to complete the October 1, 2005 Actuarial Valuation for the above referenced plan, we requested signed copies of the pension sections and the effective dates of the General Employees and Police Officers collective bargaining agreements in effect as of September 30, 2005. Upon review, we have identified some tsiteen thc..collec tive hargaiining agreements and prior Ordinances. Police Otrcers 1. The current bargaining agreement defines the retirement benefit percentages . iri Article 33 Retirement Benefits as follows: For Credited Service: Through September 30,1993 October 1, 1993 through September 30, 1994 October 1, 1994 through September 30, 1995 October 1, 1995 through September 30,1996 October 1, 1996 through September 30,1997 Octol.wr 1, 1997 and therea_ger . This is a reduced schedule from prior documentation. Percenta� g 1.60% 1.80% 1.90% 2.25% 2.50% 2.7� °�u The prior collective bargaining agreement provided to us signed July 23, 2002 provides for pension increases in Article 28 Compensation. Specifically, effective October 1, 2001 the future accrual rate is increased to 2.80 %, effective October 1, 2002 the future accrual rate is increased to 2.90% and effective October 1, 2003, the minimum retro accrual rate is *2.0% and the future accrual rate is increased to 3.0 %. These 'increases are also included iri the Summary Plan Description (SPD) dated June 2002. Ibis. Haydee Lopez March 30, 2006 Page Two Based upon the above, the retirement benefit percentages in Article 33 Retirement Benefits'should be: 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; 200.1 through September 30, 2002 October 1, 2002 through September 30, 2003 October 1, 2003 and thereafter Percentage 2.00% 2.25% 2.50% 2.75% -2.80% 2.90% 3.00.0 Ed C,Vj alp ;u V6- 01 What schedule is correct and should be reflected in the October 1, 2005 Actuarial Valuation? 2. The current bargaining agreement states that Police Officers contribute 7.5% of pay however effective October 1, 2001, should the total contribution exceed -15.0 %, both the City and Police Officers are to share equally the amount in excess of 15.0 %. Based upon Ordinance No. 30 -01 -1761 signed October 16, 2001, Police Officers contribute 7.5% of pay. Effective October 1, 2001, should the total contribution exceed 17.0 %, both the City and Police Officers are to share equally the amount in excess of 17.0 %. We note that the prior collective bargaining agreement signed July 23, 2002 and the SPD dated June 2002 required the Police Officers and the City to share equally should the total contribution exceed 15.0% effective October 1, 2001. Based upon the above, we have been utilizing the 17.0% threshold. What should the threshold be for the October 1, 2005 Actuarial Valuation? General Emntayees 1.. * Based upon the current collective bargaining agreement, the employee contribution is 7.0% however effective October 1, 2005, should the total contribution exceed 14.0 %, both the City and Employees are to share equally the amount in excess of 14.0 %. Based upon the SPD dated June 2002, the employee contribution was 7.0 %. However, should the City contribution exceed 12.0 %, both the City and Employees were to share equally the amount in excess of 12.0 %. We understand that it was not the intent of the collective bargaining in place at the time for the employees to contribute more than 7.0% regardless of the City contribution amount. Ms. Haydee Lopez March 30, 2006 Page Three Please confirm that the intent is that the City and General Employees should share equally in the amount in excess of 14.0% for purposes of the October 1, 2005 Actuarial Valuation. Thank you for your assistance with our questions. - If you should have any questions 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, A.S.A. Senior Consultant and Actuary cc: Kenneth Harrison, Esq. 3. Any employee m'ured on the Job .shall be paid the full eight Co) hours wage for the day of t%e accitleni if their treating physician advises that he should not return to work that 4. P�plees covored by this agreesment Anther agree that, in the interest of public confidence, there needs to exist a management right to submit employees at random and without D.otion for drug and alcohol testing. Said tests shall be in addition to the annual physical and May occur not more than one time per employee each year 5. It is finer understood and agreed that all issues petnirrg to Drug and Almhol Testing shall be governed by City of South. Asami D)rtlg and Alcohol Policy and Work Rules implemented on March 1, 2004. AItTIG'I1L 333 RETNT BENFFYTS 1. F,a& bargaining Unit eMply who retires on length. of =VC- or medical disability shall receive a one grade promotion and shall be issued a badge and' identification card clearly marked. "ratired". 2. The fC jj.VV ag changes m retirement benefrLs are hereby agreed to: {a) F,ffeetive Oc�obcr 1, 1995. the bwefit accrual race (multiplier) shall be increased. from 19 to 225 %; shall be (b) Eff=&e, October 1, 1996, the be accresal rate (mnitip lier ) increased from 2.25% to 2.501%; (c) Effective. October 1, 1997. the benefit accrual rate (multiplier) shall be incased from 2.50% to 2..75 %. (d) The multiplier factor to be applied at the time of rat of each bwgaining unit wVloyee shall be applied as Mows: L For all years of service prior to' October 1, 1993, the multiplier shall be 1.6%. For services rendered Ong fiscal year 1993-94 (October 1, 1993 through September 30, 1994), the multiplier shall be 1_9%. For services rendered ding October 1, 1994 through September 29, 1995, the multiplier shall be 1.9 %. IL For services rendered from Odnbes 1, 1995 through September 30,1996, the multiplier shall be 2.25 %. III. For services rendered from October 1, 1996 through September 29, 1997, the multiplies shall. be 2.50°/4. IV.. For services rendered firm September 30, 1997 forward, 'the multiplier shall be 2.75 ° /a 3. 3wgaidr unit employees shall be 100% vested in the plan when c ompledan of ten (10) years ooatiauous full-time service in the retirement plan is completed. Accarding7y, eff=ve OctDIW 11 1993, all bargaining unit employees in the retirement plan wba have, as of October 1, 1993, between ten (10) and twenty (20) years of continums service will be 100% vested. ¢, Fff,,d a October 1, 2001, the employee Dmgrlibubn to the retirement plan will be 7.51Y6. Should the total eontn'btt5an be whj3rb2.v deftmmined to exceed 15%, both the City and t1 euaploye�s will share equally the excess amo e.g. should the total c;0nt&jfion be actuarially determined to be I No, the City shall contribute a total of g.5% and the employees shall contribute a total of 850/6). S. Effective tJctober 1., 20o1, in accordance with the new Provisions of State Statute governing Chapter 195 Funds, the sum -of $12,495.00 will be paid from the Chapter 1 SS Police Retirement &Ws to the South Miami Police Pension • Plan each year, regardless of the growth or diminution in future Chapter 185 Rmds in partial exchange for the 25 years of service and out benefit improvement to the pension plan. 6. The retirment plan is mandatory for all employees hired. after October 1, 1995. 7. Final average compensation shall mean the participant's annual compensation, as 1-1 1 od by the employer, among in a uniform.' and, IIondisC IDatDTy manner averaged, over the last three (3) year prod ending oa the participant's retirement date, date of disability, date of termination of employment, or date of termination of the plan, whichever-is applicable. S. The normal retirement date (the earliest daft a bargaining unit employee may retire Vdth full unreduced pas dDn benefits) is the completion of 25 years of credited service or attainment of age 60 and completion of 10 years of 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 mnim-um of four (4) pears in the South- Wsmi Retirement Stem, pursuant to procedures to be gramv]gated by the City in consultation with the PBA. 10. Employees covered by this Agreement shell be allowed to apply for permission to purchase credit for hamediato past City service as a member of the bargaining unit up to a MWiMum of five (5) years in the South Wiami Retirement System pursuant to pmwdures to be pe=Wgalad by the City in commltm:don with the PBA. The: larial and technical language is to be prepared by actuarial company, approved by the City and time PBA, and adopted by the Pension Board. Any condition or impairment of health of any police officer caused by, tabor ulosis, hypertension, heart disease, or hang of the arteries, remldmg in total disability or death, small be presumed to be accidat3l and suffered in tlF-- line of duty unless the contrary be shown by competent evidence. AR'I`ICIS 34 3UCAITOhIAL IN 1. The City agrees to bear the cost of taition for spu islized edncari-on courses to better equip the sf =s for the- pezformance of the particular job and/or position in which they are employed. 2. Every application for tonal a,SSi9tan6D shall be subject to the approval of the Chief of Police and the City Manager. Such approval must be obtained at least thirty (30) daps prior to the beginning of any Wurse. 3. If any application is approved, guidolines for reimbmsemeat are as follows: a) 5030 reimbursement of the course oust for a grads of "C" or bitter for undergraduate courses; b) 50PA mimbursmimt of the course cost for a grade of "B" or better for graduate courses; e) Any such went shall br made only upon submission of proof of the grades as provided in sub - sections a and b above; d) The credit hour cost of any courses approved shall be capped at the rate used by local publicly fimded universities and/or community colleges. 15C :.t the Florida CRA if the PBA disagrees with the. contemplated by the City, the PBA shall immediately request negotiations With City to resolve the issue and to determine the parties' mutual obligations to comply with these laws. 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 administra6e or judicial remedies, and shall not be subject to the grievance procedure berein. ARTTCIX 39 TERM OF AGREX T ent. sW be effective upon 1. Ezcept as provided herein, all provisions of this Agreem in full form. and ratification by the PBA and the City. Ibis Agreement shall remain effect until and including September 30, 2047. City of South Ivfi.ami OF . . 1175o fl,—� 0 By. Date: Ve $y_ ate: iscombe, 'sinner a B Date: -rte j"� EST: Y Crai 'stoner C4-- By, Date: /4 . d aez ria - M. Mena 'e Birts pen stoner .Date ! a Za le ! . City Clark ete : Al By, J Attorney City S Miami v 3 �,i By. Date.' John era, President Dade PB r /3 By_ ale: rney $y, Date: Agustin Castro, PBA Representative ATTEST: Date: k, 77 Section 2, prior to the f rs# negotiation meeting, the Union shall designate up to two (2) unit employees who will be paid their regular rats of POy.for attending negotiations during work hours. Such Pay shall not exceed twenty (20) hours in each fiscal year. A CL 38 EMERGENCIES section 1. The City Manager shall have the right, in his sole and exclusive discretlon, to determine if and to what extent an emergency situation exalts with respect to CRY property andlor to the citizens of the City. immediately after .making such determination, the City Managees office shall notify the Union of the decision, and, to the sxient possib -, this length of time the emergency condition is expected to continue. P rovisions of this Agreement may be all sagMen 2: During the declared emergency, suspended Any provision so suspended will be reinstated upon order of the City Manager air the emergency has ended. Sarno • Disputes conownirig the Agreement arising during the declared emergency shall not be subject to the grievanca and arbitration procedure except casputes conssming salary and wages. ffinCLE 3 LA R44ANAGEI:AENT CD ITTEE There shall be a Labor Management Committee consisting of no more than two management rePresmntatNes designated by the City Manager and no more than two bargW61ng a ante by the President of the Union. Tha Labor- Nlanagemant Committee unit employees ppo r, shalt meet as mutually agreed upon by the participants, but not less than quarierty. The sole function of the Committer shall be to discuss goneral matters pertaining to ernplvyes relations (e.g., safety issues). Thus, the parties agree that the purpose of the CornmitIE.,- shall not be to discuss grievances or matters which have been the subjxt of inin Each bargaining unit Committee member shall be aid his or her regular � collective bargaining. p salary for atfsndanrs at Committee meetings during the bargainhg.unit membecjs regular work hours. . MBCLE 37 r 0- ko'A PENSION BENEFITS n 1. The parUe!s will form a joint pension Committ99 to Wmdy the cunt pens plan for bargaining unit employees and to su2ge.st amendments, if any, to the City Cornmisslon 23 • 6 i for consideration regarding changes to said plan. The parties may appoint up to three members each to the. committee; however, one of the City's members shall be the City Manager and one of the .Union's members shall be the Staff Representative from AFSCltihE Florida Council 79. If the parties are not able to reach agreement on recommendations ththe City Commission, both sides of the Committee may issue separate recommendations. The recommendations are not binding on the City Commission. Each bargac Ling unit Committee i member shall be paid his or her regular salary for attendance at Committee meetings during the t bargaining unit member's regular work hours. Seawn 2: The folioyAng changes in the pension are as foilows: a. Effective October 1, 1995, the benefit accrual rate (multiplier) shall be Increased from 1.6 to 1.8 ° %. b. Effective October 1, 1 596, the bensfat accrual rate (multiplier) shag be increased from 1.8 to 20 %. o, ire October 1, 1997, the benefit aarual rate (muMptim) shall be increased from 2.0 to 2.25%. UEffectivs October 1, 1998, the brn--M a=ual rate (multipprieo shall by increased from 225 to 2.5°%. Effective October 1, 1939, the benefit a=ual rate (muli}prrer) shag be inrreaseed from 2.5 to 2.75° %. ion 3: AD bargaining unit employees who are employed in positions covered by the unit on the date of this agreement shall receive tip following pension plan improvemw ts: a. The pension'multiplier shall b-- increased to 2125 % effective October 1, 2000, for all bargaining unit members, as part of pension plan improvements, from their pension participation date through September 30, 1995. b. The pension multiplier shall be increased to 2.250 % effective October 1, 2001, for all bargaining unit members as part of pension plan Improvements, from their participation date through September 30, 1 897. c. The pension multiplier shag be increased to 2.50 °% effective October 1, 2002, for all bargaining unit members as part of the pension plan impriw ments, from their participation date through September 30, 1 M. For the W year of this collscfwe bargaining agreement. the employees contribution to the retirement plan will be 7° %. Upon cxammenerrerit Of the second yaar of the coiigctige- bargaining agreement and the mafisr, shauid the total 24 contribution be actuarially determined to exceed 149'0, both the City and the employees Will share equally the. excess amount (e.g., should the total contribution be actuarially determined to be I s%, the City shall contribute a total of 8.00% and the employees shall contribute a total of 8.00 %). ARTICLE 38 woRK IN HIGHER CLASSIFICATION An employee who is authorized by the Department Head to temporarily assume the duties of a higher pay status classification for three (3) consecutive work days will receive tha pay rate of the lowest step of the higher classification or a one (1) step increase (whichever is higher) for all consecutive hours worked in the higher classification after the above - referenced three (3) consecutive work days. ARTICLE 39 TERM OF AGREEMENT AND REOPENING Section : This Agreement, having been ratified by the City Commission of the City of South Miami and Local 3294, American Federailon of State, County, and Municipal Employees, AFL. -Cto, shall be operative and efrecfive as of its date of execution, and shall continue until September 30, 200 Section Either party may require, by written notice to the other, between April 1 st and not later than June 1 st discussions concerning . modiffm6ons of this Agreement on nonfinancial Issues, one issue chosen by the Union, and one issue Chosen by the City. If neither party shall submit such written notices during the. indicated period, this Agreement shall automatically be renewed, in its entirety, for the following fiscal years they fter. �, T HIS AGREEMENT signed thi� day of 20Dja� AMERI=32 FED TION , LOCAL � . 1 1 V. Davis, City. Nis J am, Doug , Union Pre AFf�e i ,,-.� City Clerk Staff Representative 25 C OF S MIAMI rte: I ate: J4*'4�� George Greene, Treasurer te: 1 -1'7- -06 9. The parties agree that any employee refusing to submit to toxicology or alcohol testing conducted in accordance with the provisions of this Article may result in disciplinary action being taken against the employee up to and including dismissal. 10. Iii the. of an 4n #the job injury to an_employee .nat :as .a result oif negligence by,` ' `N the em to ee� .such _em to ee will be'carned T full pay aad benefits for a period not to exjceed } SO calendar days. 11.'Any employee injured on the job shall be paid the full eight (8) hours wage for the day of the accident if their treating physician advises that he should not return to work that day. 12. Employees covered by this agreement further agree that, in the merest of public confidence, there needs to exist a management right to submit employees at random and without notification for drug and alcohol testing. Said tests shall be in addition to the annual physical and may occur not more than one time per employee each year. ARTICLE 33 RETIREMENT BENEFITS . 1. Each bargaining unit employee who retires on length of service or medical. disability shall receive a one grade promotion and shall be issued a badge and identification card clearly marked "retired ". 2. The following changes in retirement benefits are hereby agreed to: (a) Effective October 1, 1995; the benefit accrual rate (multiplier) shall be increased from 1.9 to 2.25 %; (b) Effective October 1, 1996, the benefit accrual rate (multiplier) shall be increased from 2.25% to 2.50 %; (c) Effective October 1, 1997, the benefit accrual rate (multiplier) shall be increased from 2.50% to 2.75°/x. (d) The multiplier factor to be applied at the time of retirement of each bargaining unit employee shall be applied as follows: I. For all years of service prior to October 1, 1993, the multiplier shall be 1.6 °!o. For services rendered during fiscal year 1993 -94 (October. 1, 1993 through September 30, 1994), the multiplier shall be. 1.8 %. For services rendered during October 1, 1994 through September 29, 1995, the multiplier shall be 1.9 %. II. For services rendered from October 1, • 1995 through September 30, 1996, the multiplier shall be 2.25 %. III. For services rendered from October 1, 1996 through September 29, 1997, the multiplier shall be 2.50%. IV. For services, rendered from September 30, 1997 forward, the multiplier shall be 2.75 %. 3. Bargaining unit employees shall be 100% vested in the retirement - plan when completion of ten (10) years continuous full-time service in the retirement plan is completed. Accordingly, effective October 1, 1993, all bargaining unit employees in the retirement plan who have, as of October 1, 1993, between ten (10) and twenty (20) years of continuous service will be 100% vested. 25 4. Effective October 1, 2001, the employee contribution to the retirement plan will be 7.5 %. Should the total contribution be actuarially determined to exceed 15 %, both and the employees will share equally the excess amount (e. should the total the City the City shall contribute a total of contribution be actuarially determined to be 17 %, 8.5% and the employees shall contribute a total of 8.5 %o). 5. Effective October 1, 2001, . in accordance with the new provisions of State Statute governing -Chapter 185 Funds, the sum of $12,498.00 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 improvement to the pension plan. 6. The retirement plan is mandatory for all employees 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 last three (3) year period 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. 8. The normal retirement date (the earliest date a bargaining unit employee may retire with -fuU unreduced pension benefits) is the completion of 25 years of credited service or attainment of age 60 and completion of 10 years of credited 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 PBA. 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 City in consultation with the PBA. The actuarial and technical language is to be prepared by actuarial company, approved by the City and the PBA, 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. For Retro and Future Pension Benefits applicable to fiscal years 2001 -2004, see COMPENSATION MATRIX, Article 28. ARTICLE 34 EDUCATIONAL INCENTNE 1. The City agrees to bear the cost of tuition for specialized education courses to better equip the officers for the performance of the particular Job and/or Position in which they are employed. 2. Every application for educational assistance shall be subject to the approval of the Chief of Police and the City Manager. Such approval must be obtained at least thirty (30) days prior to the beginning of any course. 3. If any application is approved, guidelines for reimbursement are as foHows: 26 ARTICLE 27 SEVERABILITY CLAUSE 1. 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 Iegislation, 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 shall. 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. The following Compensation matrix is agreed (Effective October 1 of the fiscal year): Year COLA Special Retro Future Employee Risk Pension Pension Pension Pay Contribution 2001 -02 5.00% $30 1.60% 2.80% 7.50% 2002 -03 3.00% $35 1.800/0 2.90% 7.50% 2003 -04 2.00% $40 2.00% 3.00% 7.50' /0. 2. Bargaining unit employees who serve as Field Training officers pursuant to the criteria below will receive a 7% supplement during the time that the employee performs FTO duties. In order to receive the FTO .supplement, the employee must: (1) secure 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 7% FTO supplement will be added to the employee's base pay for the days during which the employee receives such supplement. 3. Bargaining unit employees covered by this Agreement who are temporarily assigned to a higher rank shall receive the wages of their acting rank for each full day worked in the higher rank. 4. Longevity pay shall be calculated based on the hourly rate of each bargaining unit employee. ARTTC IE 29 PROBIRMON AGAINST RE- OPENING OF NEGOTIATIONS 1. Except as specifically provided herein, neither parry 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. 21 to negotiate concerning the impact of such abolishment or merger proposal upon this Agreement. 2. The abolishment or merger negotiations shall include discussion of provisions fort the placement of personnel in other departments or, in the alternative, severance benefits. ARTICLE 38 AMERICANS WITH DISABILITIES ACT 1. Notwithstanding any other provision of this Agreement, the PBA 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 laws. To ac1lcomPlasthis, accommodation to individuals with disabilities as required under those City shall notify the PBA of the action it intends to take to comply with the ADA or the Florida CRA. if the PBA disagrees with the action contemmlated by the City, the PBA shall immediately request negotiations with the City to resolve the issue and to determine the .parties' mutual obligations to comply with these laws. -However, any contention or claim that the City violated any provision e resolved through Disabilities Act or the Florida-Civil Rights Act shall be exclusively available administrative or judicial remedies, and shall not be subject to the grievance procedure herein. ARTICL 39 TERM OF AGREEMENT 1. Except as provided herein, all provisions of thA shalltremain n effective ull force and ratification by.the PBA and the City. Thus Agreement effect until and including September 30, 2004. and 2 Both pies agree that the following items may be opened prior to t the e Second that third years of this Agreement upon notice by either party no later yam= (a) 55/10 Retirement (b) DROP Program Dade County P lice . Benevole s iation City of South Miami -c1. y: By. •ty ger Dade Cou�n PBA ' Date. �? Date• ST- City Clerk 28 MIAMI DAILY BUSINESS REVIEW PdOg.dtMyea:eyl S h ,6mdyud atYnY, �0atb �'. ROndn STATE OF FLORIDA • COUNTY OF 14"MADBe Bafa. the und.mdp.d..Vmntly pemorraty appeared O.V. FERBEYRE, vvho on oath says that he or she Is the SUPERVISOR, Legal Notlo.s of die Miami Dally Business Review tJkfa Miami Review, a daft' (wroopt Sat aft, Sunday and Legal Holidays) navespapor. pubtktned at Miartd In fdiard -Dade Candy. Aarlds slat the attached copy at adverilsemerd, a being a Legal Advartkmnent of Notice M da matter of dTY OF SOUTH MIAMI PUBLIC HEARING - NOVEMBER 7, 2008 In the )ODOC CeuR wan published In said neospapar in to issues of , 1027/2006 . Afford furfl,ssayti thal the said Want Daily Business Revleer is a newspaper published .♦Marti in said Mimi -Dade County, Florida and died d,e said neaapaparhas haeldore bean eorrempusly published in said M urdOsdi County. Florida. each day (eacW Saw". Sunday and Legal HdIdays) are has bear entered assecond class, mall mallar at the pest otlse to island In said Whe"O'Dade M County. Floa, lot a period of one year and preceding the that publication of the sOKW copy of advertisement and efflard further says Met he or she has nelther paid nor prumised any person, fkm or raaporall n any dlsootad, rebate, commission or refund fa ft purpose M scouting tyit<edvQrta for pubBcsilan N the said Smnr to and subscribed bar= me Des 27 dry or OCTOBER , AD. 2006 (SEAL 'sMe O.V. FERSEYRE personally known to me raaro tt Mannar nM commspsn DOURM C v Re. c �� m DHKII a � U E 3� -s Z N m � �� mgmm =P g �m R B g •oA @ wp N Ft iS cj � m�o _as ar m- o � 71 � W gn m S¢ C 8 �a�Q am $ R159 c� m co ,-m _G r handy gaide to this week's Best Bets' In TV and cable de gossip with your grapefu hing gas better with breakfast tban The Miami Herald, delivered. 11-800-"11-04" RS OPEN nber 24 ... excited to sleep anyway. Levj'S DOOCKERS' m . OUTLET ari�sonite` di pany Stores • Nike Factory Store toryi:Biari Shoes • INeicome Home • Perfumania ...over 45 brand -name stores! The stores listed are merely reprpsentotiva and not necessa ft those participating In this seta PRIME OUTLETS FLORIDA CITY Intersection of FI Turnpike & US1 • 8887545 -7198 �. OUR ANNUAL HOLIDAY BAZAAR IS REREII4 . ' INCREDIBLE VENDORS T'HISYEAR: Jewelry, Ceramics; Make -up, Gifts, judaica, Art, ' Housewares, Clothing,Crafts & More 0 1 • Bet Shirra Congregation 7300 SW 120th Street • 30S- 238 -2601 1 COURTESY NOTICE CITY OF SOUTH MIAMI, FLORIDA On Tuesday, November 28, 2006, beginning at 7:30 p.m„ in the City Commission Chambers, 6130 Sunset Drive, the City Commission will hold Public Hearings to considerthe following items: AN ORDINANCE AUTHORIZING THE NEGOTIATION OF A LOAN IN AN AGGREGATE AMOUNT NOT TO EXCEED $6,000,000 FROM THE FLORIDA MUNICIPAL LOAN COUNCIL;. APPROVING THE ACOUISIT CONSTRUCTION AND ERECTION OF CERTAIN CAPITAL PROJECTS; APPROVING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT wrTH THE FLORIDA MUNICIPAL LOAN COUNCIL; APPROVING THE EXECUTION AND DELIVERY OF A BOND PURCHASE CONTRACT; APPROVING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE AGREEMENT; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION WITH THE MAKING OF SUCH LOAN. J: AN ORDINANCE AMENDING THE CITY OF SMITH MIAMI PENSION PLAN ARTICLES 16 -14 BASIC BENEFIT AND ARTICLE 16.19 CONTRIBUTIONS, PROVIDING FOR COMPLIANCE WITH CURRENT COLLECTNE BARGAINING AGREEMENTS BETWEEN THE CITY OF SOUTH MIAMI AND RECOGNIZE EMPLOYEE LABOR ORGANIZATIONS. AN ORDNANCE RELATING TO A REQUEST TO AMEND THE OFFICIAL ZONING MAP OF THE CITY OF SOUTH MIAMI LAND DEVELOPMENT CODE BY DESIGNATING A SINGLE FAMILY RESIDENTIAL BUILDING LOCATED AT 6151 SW 63rd TERRACE AS AN ZONED {HP -OV) OVERTHE EXISTING ZONING USE DISTRICT FOR�THIISSPROPERTYR�Y AN ORDINANCE RELATING TO A REQUEST TO AMEND THE OFFICIAL ZONING MAP OF THECITY OF SOUTH MIAMI LAND DEVELOPMENT CODE BY DESIGNATING A SINGLE FAMILY RESIDENTIAL BUILDING LOCATED AT tM SW 63rd COURT AS AN HISTORIC SITE AND BY PLACEMENT OF AN HISTORIC PRESERVATION OVERLAY ZONE NP4M OVER THE EXISTING ZONING USE DISTRICT FOR THIS PROPERTY. AN ORDINANCE AMENDING SECTION 2 -26.10 RELATING M THE PARKING AND COMMITTEE; PROVIDING FOR THE CONVERSION OF THE PARKING COMMITTEE INTO A PARKING BOARD; PROVIDING FOR APPOINTMENT, OUALIFDCATTONS, DUTIES, AND TERM. AN ORDINANCE RELATING TO A REQUEST TO AMEND THE OFFIC14LZONING MAP OF THE CITY OF SOUTH MIAMI LAND DEVELOPMENT CODE BY DESIGNATING THE D.J. RED BUILDING A COMMERCIAL BUILDING LOCATED AT 5850 SUNSET DRIVE AS AN HISTORIc SITE AND BY PLACEMENT OF AN ZONE (HP4M OVER THE DUSTING ZONING USE DISTRICT FOR THISAPROPERi`L OVERLAY AN ORDINANCE RELATING TO BOARDS AND COMMITTEES; AMENDING SEC2 -2&8 OF THE CODE, OF ORDINANCES' ENITTILED'BUDGET AND FINANCE COMMITTEE;' AMEN13NG MEMBERSHIP TERM; PROVIDING FOR SEVERABILIN PROVIDING FOR ORDINANCES IN CONFLICT; AND PROVIDING AN EFFECTIVE DATE. - AN. ORDINANCE: PROVIDING FOR A TECHNICAL AMENDMENT TO THE CITY OF. SOIM- MIAMI LAND DEVELOPMENT CODE, BY AMENDING FOR SECTION 2D- :.'3.6rTF'ENTIT ED •GENERAL RECOREMENTS AND STANDARDS G ORS IN RESIDENTIAL ZONE DISTRICTS' IN ORDER TO CORRECT -A .. _ TECHNICAL ERROR RELATED TO THE MINIMUM DISTANCE A GENERATOR MUST BE FRO MANYW@NIXXN DOOROROPENI NG INTO A DWELLING. A RESOLUnb►J OF THE MAYOR AND CITY COMMISSION OF THE CRY OF SOUTH MIAMI, FLORIDA RELATING TO A REAUE,ST TO ALLOW FOR THE CREATION OF LOTS '1' AND '2* ON PROPERTY SPECIFICALLY LOCATED AT 6240 SW 65TH AVENUE, SOUTH MIAMI, FLORIDA WITHIN AN RS-3 -LOW DENSITY RESIDENTIAL ZONING DISTRICT' AS PERMrr w'BY PROYISIO NS PERTAINING TO WAIVER OF PLAT AS SET .FORTH IN SECTION 20A2(6) OF THE SOUTH MIAMI LAND DEVELOPMENT CODE AND SECTION 28-4 OF THE MIAMI DACE OQUNTY CODE; THE PURPOSE OF THE WAVER OF PLAT IS TO ALLOW FOR THE CONSTRUCTION OF A SINGLE FAMILY HOME ON LOT '1' AND THE CONSTRUCTION OF A SINGLE FAMILY HOME ON L01'2"PROVIDNG FOR A LEGAL DESCRIPTION; AND PROVIDING FOR AN EFFECTIVE DATE -Above Iems oats be inspected In the City Clerks OAbe, Monday - Friday during regular office bouts. 11 you have any hxplrles on the above Items please oo 201he City CtiWs O*h at 305.- 663.6326. . ALL interested parties are invited to attend and YAI be heard. Mida M. Menendez, CIVIC City Clerk ePursue; t'4 FIww 3tct e s 266.010% Ih. Ck hereby advises the pubtle #0 IT a person decides to d �r�a•m has made by r s Board, t need a ecord of the�pr proceedings, and that brr such pupos- S� g � W � 4 IZ IQ Io z IN 16 ( Q, LS f F+ I� 3 $ .� fE 2005 Ordinance ( Ordinance No. 06 -05 -1828 - Agreement with State on 185 Funds ). ORDINANCE NO. 06 -05 -1828 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA AMENDING THE CITY OF SOUTH MIAMI PENSION PLAN, PROVIDING FOR ELIGIBILITY AT DATE OF EMPLOYMENT FOR POLICE OFFICER EMPLOYEES OF THE CITY OF SOUTH MIAMI; PROVIDING FOR A MINIMUM RATE OF BENEFIT ACCRUAL FOR POLICE OFFICER EMPLOYEES; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of South Miami desires to provide compliance with required minimum benefits provided in Chapter 185 of the Florida Statutes for police officer employees in order to continue to receive state premium tax funding; and WHEREAS, the City recognizes that such minimum benefits will actuarially impact on the Pension Plan and shall be at the option of certain employees; and WHEREAS, there are funds available in excess in the 185 Share Plan Police Retirement account as shown by the actuarial impact statement provided by the actuary to pay for the proposed improvements; and WHEREAS, the City Commission has received and reviewed an actuarial impact statement related to such early retirement incentive. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA: Section 1. Part I, Provisions governing the South Miami Pension Plan, Section 16 -13 of the South Miami Code of Ordinances is hereby amended to read as follows: See. 16-13. 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 Page 1 of 4 Ord. No. 06 -05 -1828 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 s` through October 31". It shall become mandatory for all employees hired on or after October 1, 1995, to join the pension plan after completion of the probationary period. (c) Each employee classified as policemen shall become eligible le to participate in the plan from his/her date of emplo m� provided he /she began participation in the plan when first eli 'bgi le as provided in sub - section (a) & (b) of this section. An employee who has received a cash payment under Option 1 of Ssection 16 -17(b) may elect to participate in the 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 of section 16- 17(b). 3. Such employee pays to the employer an amount equal to the amount of cash payment he received under Option 1 of section 16- 17(b), plus credited interest compounded annually at the rate of three (3) percent per annum from the date on which such cash payment was made to the date of such repayment. Participation under this section will be effective as of September 1, 1977. In determining an 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. Section 2. Section 16- 14(b)(1) of the South Miami Code of Ordinances is hereby amended to read as follows: See. 16-14. Pension (benefits and retirement date. (b) Amount of pension. Basic benefit. A basic benefit commencing at the employee's normal retirement date determined by multiplying one and six - tenths (1.6) percent of the employee's final average compensation by the number of his/her completed years of credited service at his or her retirement date, excluding the first two (2) years of such service and any additional service completed by the employee prior to his/her twenty -fifth birthday. However, as to those participants who became an employee subsequent to October 1, 1973, there shall only be excluded the first six Page 2 of 4 Ord. No. 06 -05 -1828 (6) months of such service and any additional service completed by him/her prior to his/her twentieth birthday and/or additional service completed by the employee prior to the time the employee became a participant. For sworn police personnel, effective October 1, 1994, the pension benefit accrual rate (multiplier) shall be increased from 1.6 to 1.8, for services performed in the 1993 -94 fiscal year; effective October 1, 1994, the pension benefit accrual rate (multiplier) shall be increased from 1.8 to 1.9, for services performed in the 1994 -95 fiscal year; effective October 1, 1995, the pension benefit accrual rate (multiplier) shall be increased from 1.9 to 2.25 for services performed in the 1995 -96 fiscal year; the pension benefit accrual rate (multiplier) shall be increased from 2.25 to 2.50, effective October 1, 1996, for services performed in the 1996 -97 fiscal year; the pension benefit accrual rate (multiplier) shall be increased from 2.50 to 2.75, effective October 1, 1997, for services performed in the 1997 -98 fiscal year and thereafter. The multiplier factor to be applied at the time of retirement of each bargaining unit employee shall be applied as prescribed in the 1992 -93 and 1995- 96 collective bargaining agreements. Provided however, the pension benefit accrual rate (multiplier) for sworn police personnel shall not be less than two percent (2.0 %) for all years of service. Effective October 1, 1995, the pension benefit accrual rate (multiplier) for participants, excluding police personnel, shall be increased from 1.6 to 1.8 for services performed in the 1995 -96 fiscal year; effective October 1, 1996, the pension benefit accrual rate (multiplier) for participants, excluding police personnel shall be increased from 1.8 to 2.0 for services performed in the 1996 -97 fiscal year and thereafter. Section 3: 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 4: All ordinances or parts of ordinances in conflict with the provisions of this ordinance are repealed. Section 5: This'Ordinance shall take effect immediately upon approved. PASSED AND ADOPTED this 457Aday of '2005 ATTEST: APPROVED - 1 2 Y CLERI M , YO 1St Reading - 11/16/04 2"a Reading- 3/15/05 Page 3 of 4 Ord. No. 06 -05 -1828 READ AND APPROVED AS TO FORM: 4 c7 6AKE-y COMMISSION VOTE: 4 -0 Mayor Russell: Yea Vice Mayor Palmer: absent Commissioner Birts- Cooper: Yea Commissioner Sherar: Yea Commissioner Wiscombe: Yea G:\\SMPF\PLAN\ProvideEligibility-Employment-Police-ORDN LAN\ProvideEligibility- Employment - Police -ORDN Page 4 of 4 South Miami sour.ti All a icac v 7- CITY OF SOUTH MIAMI • i„C,p %927 OFFICE OF 27aED • THE CITY MANAGER O li1•p INTER- OFFICE MEMORANDUM 2001 To: Honorable Mayor, Vice Mayor Date: March 15, 2005 and City Commission Subject: Agenda.Item # From: Marra V. Davis SubJ City Manager ilam 11/16/04 Commission Meeting Amending the Police Pension U°° Plan REQUEST AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA AMENDING THE CITY OF SOUTH MIAMI PENSION PLAN, PROVIDING FOR ELIGIBILITY AT DATE OF EMPLOYMENT FOR POLICE OFFICER EMPLOYEES OF THE CITY OF SOUTH MIAMI; PROVIDING FOR A MINIMUM RATE OF BENEFIT ACCRUAL FOR POLICE OFFICER EMPLOYEES; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. Backtiound The 'attached ordinance. was prepared by the City .Pension Attorney to improve the pension plan benefits for our Police Officers at nok cost to the City, using the Chapter 185 funds received annually from the State of Florida. The source of the funds is .85 percent of gross receipts from policyholders on all premiums collected on casualty insurance policies covering properties within the City's jurisdiction. State laws restrict the use of these funds to payment of supplemental benefits to retiring Police Officers. This benefit is fu accrued annually by all Police Officers participating in the City pension plan using a State approved allocation method. Any available excess funds after the allocation are used to provide improvements to the plan. As of last fiscal year, there is an available excess amount of $77,000 that can be used to purchase improvements to the plan for officers. RECOMMENDATON Approval of the ordinance is recommended. SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW 2601 Ponce De Leon Boulevard Robert A. Sugarman* Suite 754 Howard S. Sussl ind Cord Kenneth R. Harrison, Sr. Gables, Florida ida 33134 (305) 529 -2801 David I? Robinson Broward 327 -2876 D. Marcus Braswell, Jr. 7011 Free 1- 800 - 329 -2122 Facsimile (305) 447-8115 *Board Certified Labor & Employment Lawyer June 21, 2004 City Commission City of South Miami c/o Maria Davis, City Manager 6130 Sunset Drive South Miami, Florida 33143' Re: Summary of Proposed Ordinance Amendment — City of South Mimni Police Officers' Retirement Plan Dear Commission Members: This firm represents the City of South Maori Police Officers' Retirement Plan. Our client has directed that we provide' an -overview of the enclosed proposed ordinance amendment to be considered by the City Commission. The Board of Trustees of the Police Officers' Retirement Plan recommends adoption of this proposed ordinance amendment to the existing code in order to domply with specific minimum requirements of Chapter 185 of the Florida Statutes. Florida Law 99 -1 specifically required municipalities that receive state contributions under Chapter 185 of the Florida Statutes to provide certain minimum benefits and operational requirements. The City of South Miami receives such state contribution for its Police Officers' Retirement Plan. The following summarizes the necessary amendments to the existing code in order to comply with specific minimums established by the state legislative action and Florida Law 99 -1. Section 16 -13. Eligibility. This section of the code provides for different participation dates depending on employment date of employees. Section (a) required a two year period of probation before participation in the Retirement Plan was allowed. Subsection (b) states that employees hired on a different date, a six month probation and the necessity of obtaining a participant's 2& birthday must occur before participating in the Retirement Plan. Further, this section provided a third provision that completion of a probationary period was necessary for employees hired on any other date in order to enter the Retirement Plan. Chapter *185 of the Florida Statutes requires mandatory participation in pension plans commencing on date of employment. Therefore, Subsection (c) has been added that allows participation from date of employment to comply with this requirement of the state statutes. Section 16 -14. Pension Benefits and Retirement Date was amended to add a specific sentence at the end of Subparagraph (b)(1) which addressed the basic benefit and contained certain limitations therein. The addition of this paragraph stated that the benefit accrual rate for police officer'partieipants may not be less than 2% for all years of service. This specific language is required in Chapter 185 of the Florida Statutes. By copy of this letter we are requesting that the Retirement Plan actuary provide an impact statement for your consideration prior to final reading and enactment of this ordinance amendment. We remain available to respond to any questions you may have on this matter. Yours truly, 9TH R. HARRISON, SR RU Enclosure cc: Board of Trustees Larry Wilson, Actuary, Gabriel, Roeder, Smith & Co. o X\SMMMANWummoyoMopmedordt, mmW- rAChyMvr GGVa- lo GA 3RIEL, ROE ®ER, SMITH & coMpANy Consultants & Actuaries August 16, 2004 301 East Las Olas Blvd. • Sufte 200 • Ft Lauderdale. FL 33301 - 2254.954- 527 -1616 • FAX 854525 -0083 Ms. Haydee Lopez Benefits USA, Inc. 3810 Inverrary Blvd., Suite 208 Lauderhill, FL 33319 Re: South Miami Pension Plan Dear Haydee: As requested, we are pleased to enclose three (3) copies of the Actuarial Impact Statement for filing the proposed Ordinance for the South Miami pension Plan with the State of Florida. The proposed Ordinance (copy attached) will allow Police Officers to participate in the Plan from date of employment and credited service shall be continuous employment provided that participation began at first eligibility. The proposed change in eligibility is a minimum benefit required under F.S 99 -1 for Police Officers. Our records show, the Chapter Fund held a reserve,for unused excess State funds of $65,275 as of September 30, 2003. The proposed Ordinance includes release of the reserve to the South Miami Pension PIan. in addition, the increase in the annual cost ($25,282) is assumed to be paid by current and future State funds. Please note that this Statement must be signed and dated on behalf of the Pension Board. Copies of the proposed Ordinance following passage at first reading along with the signed and dated Actuarial Impact Statement should be filed with the State prior to passage at second reading at the following addresses: Mr. Charles Slavin, A.S.A. Division of Retirement Cedars Executive Center. Building C 2639 North Monroe Street Tallahassee, Florida 32399 -1560 Ms. Patricia Shoemaker Division of Retirement Cedars Executive Center. 2639 North Monroe Street Florida 32399 -1560 C Please forward a copy of the ordinance upon passage at second reading to update our files. The employee census and financial data utilized in the preparation of this Actuarial impact statement are the same as utilized for the October 1, 2003 Actuarial Valuation. Ms. Haydee Lopez August 16, 2004 Page Two The undersigned is a Member of the American Academy of Actuaries and meets 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. Wilson, A.S.A. Senior Consultant and Actuary Enclosures cc: Mr. Ken Harrison, Esq GABPJEI_ ROEDER, SMITH & coMPANY South Miami Pension Plan Actuarial Impact Statement as of October 1, 2003 Police Officers -2- GABRIEL, ROEDER, SMITH & CompANy Actuarial Proposed A. Participant Data Valuation Ordinance 1. Active participants 50 50 2. Terminated vested participants 1 1 3. Participants receiving benefits including DROPs 8 g 4. Annual payroll of active employees $ 3,350,992 $ 3,350,992 B. Assets 1. Actuarial value $ 6,732,468 $ 6,797,743 2. Market value $ 6,081,957 $ 6,147,232 C. Liabilities 1. Actuarial present value of future expected benefit payments or active members a. Retirement benefits $ 11,328,815 $ 11;580;543 b. Vesting benefits 782,661 943;728 c. Death benefits 53,304 51,943 d. Disability benefits 285,446 '2862980 e. Refunds 206,750 190,383 f. Total $ 12,656,976 $ 12,953,577 2. Actuarial present value of future expected benefit payments for terminated vested members $ 258,298 $ 258,298 3. Actuarial present value of future expected benefit payments for those currently receiving benefits a. Service retired $ 875,520 $ 875,520 b. Disability retired 0 0 c. Beneficiaries 166,487 166,487 d. Miscellaneous 15,959 15,959 e. Total $ 1,057,966 $ 1,057,966 4. Total actuarial present value of future expected benefit payments $ 13,973,240 $ 14,269,841 5. Actuarial. accrued liabilities $ 9,227,670 $ 9,502,196 6. Unfunded actuarial liabilities $ 2,4952202 $ 2,7042453 -2- GABRIEL, ROEDER, SMITH & CompANy South Miami Pension Plan Actuarial Impact Statement as of October 1, 2003 Police Officers Actuarial D. Statement of Accumulated Plan Benefits Valuation 1. Actuarial present value of accumulated vested benefits a. Participants currently receiving benefits b. Other participants c. Total 2. Actuarial present value of accumulated non - vested plan benefits 3. Total actuarial present value of accumulated plan benefits E. Pension Cost $ 1,042,007 3,520,127 $ 4,562,134 622,216 Proposed Ordinance $ 1,042,007 3,735,452 $ 4,777,459 560,180 $ 5,184,350 $ 5,337,639 1. Total normal cost $ 569,894 $ 576,093 2. Payment .required to amortize unfunded liability 202,473 219,683 3. Interest 30,187 32,060 4. Total required contributioiig $ 8025554 $ 827,836 5. Item 4 as a percentage of payroll 23.9% 24.7% 6. Estimated employee contributions $ 361,518 $ 361,518 7. Item 6 as a percentage of payroll 10.8% 10.8% 8. Estimated State contributions $ 12,498 $ 37,780 9. Item 8 as a percentage of payroll 0.4 % 1.1% 10. Net amount payable by City $ 428,538 $ 428,538 11. Item 10 as a percentage of payroll 12.8% 12.8% F. Disclosure of Followin Items- 1. Actuarial present value of future salaries - attained age $ 31,720,433 $ 31,453,407 2. Actuarial present value of future employee contributions - attained age $ 2,379,032 $ 2,359,005 3. Actuarial present value of future contributions from other sources N/A N/A 4. Amount of active members' accumulated contributions $ 1,118,955 $ 1,118,955 5. Actuarial present value of future salaries and future benefits at entry age Not provided by software 6. Actuarial present value of future employee contributions at entry age. Not provided by software -3- GABRIEL, ROE ®ER, sMffH & COMPANY South Miami Pension Plan Actuarial impact Statement as of October 1, 2003 Police Officers G. Amortization of Unfunded Actuarial Accrued Liability Date Established 10/01/1990 Assumption Method Change 10/01/1991 Actuarial Loss (Gain) 10/01/1992 Plan Amendment 10/01/1992 Actuarial Loss (Gain) 10/01/1993 Actuarial Loss (Gain) 10/01/1993 Plan Amendment 10/01/1994 Actuarial Loss (Gain) 10/01/1994 Assumption Change 10/01/1995 Actuarial Loss (Gain) '10/01/1995 Plan Amendment 10/01/1996 Actuarial Loss (Gain) 10/01/1997 Actuarial Loss (Gain) 10/01/1998 Actuarial Loss (Gain) 10/01/1999 Actuarial Loss (Gain) 10/01/1999 Plan Amendment 10/01/2001 Actuarial Loss (Gain). 10/01/2001 Method Change 10/01/2001 Plan Amendment 10/01/2002 Actuarial Loss (Gain) 10/01/2002 Plan Amendment . I0/01/2003 Actuarial Loss (Gain) 10/01/2003 Plan Amendment 10/01/2003 Proposed Ordinance 25 years TOTAL $ 2,704,453 $ 219,683 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. 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 otherwise taken into account for in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation. Enrollment Number: 02 -2802 Lawrence F. Wilson, A.S.A. Dated: August 16, 2004 -4- GABRIEI- ROEDER, SMITH & COMPAP9Y Remaining Unfunded Amortization Funding Liability Payment Period $ (111,250) $ (11,293) 17 years (82,013) (8,103) 18 years (6,611) (637) 19 years (176,651) (17,032) 19 years (39,396) (3,715) 20 years 211,614 19,957 20 years 62,749 5,800 21 years 26,117 2,414 21 years (176,836) (16,051) 22 years 253,853 23,042 22 years (100,436) (8,967) 23 years (190,172) (16,724) 24 years (302,323) (26,223) 25 years (96,311) (8,249) 26 years 126,894 10,869 26 years 1,032,446 86,505 28 years (519,257) (43,506) 28 years 812,417 68,069 28 years 775,068 64,315 29 years 193,557 16,061 29 years 563,535 46,349 30 years 238,208 19,592 30 years 209,251 17,210 30 years $ 2,704,453 $ 219,683 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. 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 otherwise taken into account for in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation. Enrollment Number: 02 -2802 Lawrence F. Wilson, A.S.A. Dated: August 16, 2004 -4- GABRIEI- ROEDER, SMITH & COMPAP9Y South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan A. Effective-Date: October 1, 1965. Most recent resolution / bargaining agreement was adopted July 23, 2002. B. Eligibility Requirements: 1. General Employees Any regular full -time employee 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. 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;125. (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. 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 (FMCI• Final Monthly 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, overtime pay, vacation, sick leave and other additional compensation. -5- GA BRIEl., ROE ®ER, SPArM a CC>MpAINy South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan E. Normal Retirement: 1. Eli 'bility: a. General Employees: Attainment of age 55 and completion of ten (10) years of credited service. b. Police officers: 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. 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 For Credited Service Percentage Through September 30, 1999 2.50% October. 1, 1999 and thereafter 2.75% 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% 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 %. -6- GABRDEi., ROEDER, SMrrH & CoMpANy South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan G. Early -Retirement: 1. Eligibility: Attainment of age 60 (age 50 for Police Officers) and completion of 15 years of credited service. 2. Benefit: Accrued benefit based upon FMC and -credited service as of early retirement date, reduced 6% (3% for Police Officers) for each year that the benefit commencement date precedes Normal Retirement. H. Delayed Retirement: I . Elij bility: 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 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 until they commence receiving benefits. -7- GABRIIEL, ROEDEk SMITH & coNIPANY South Miami Pension Plan Outline of Principal Provisions of the Retirement Plan a 2. Vesting Schedule: Years of Vesting Credited Service Percentage. Less than 10 0% 10 or more years 100% 3. Refund Option: A terminated member may elect to receive a refund of accumulated contributions (with 3% interest for General Employees) in lieu of receiving any other plan benefits. L. Member Contributions: Members contribute 7% (7.5% for Police Officers) of member's basic annual compensation. Should the City contribution for General Employees be actuarially determined to exceed 12% (9.S% for Police Officers), both the City and the General Emplo- yees will share equally in the amount in excess of I2% (9.5% for Police Officers). M. Normal Form of Retiremeat. Income: The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated employee contributions. N. Changes _..Since Prous Valuation: Prior to proposed Ordinance, for Police Officers: L i Ndi Service: Any regular full -time employee vas eligible to enter the plan following the completion of six months of Credited Service and atia*ent .,cif age 20. 2. Credited Service: Continuous employment. Credited service shall 4,f. dude continuous employment prior to . plan participation as follows: (1) If employed prior iu`(1 >tober 1, 1973, credited service shall exclude the first two years of continuous employment'a& ' additional year of continuous employment prior to attainment of age 25. (2) If employ =;;,' xt. or after October 1, 1973, credited service shall exclude the first six (6) months of • °::x`=nuous employment and continuous employment prior to age 20. -8- GABRIEL, ROEDER, SMITH & COMPANY South Miami Pension Plan Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation A. Mortality For healthy active lives, the 1 983 Group Annuity Mortality Table was used with separate rates for males and females. For disabled lives, the 1985 Pension Disability was used with separate rates for males and females. B. Interest to be Earned by Fund 8.0 %, compounded annually. 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, A 20 •:3U :`� �,�'�•vir.., q -: ?y; .f. {dr..:..grriF :. ::n:aL• <. u T$"^.iL E. Disability Rates I J5 1985 Disability study, Class 1 with separate rates for females was used. 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. -9- GABRIEL, ROEDER, SMITH & COMPANY South Miami Pension Plan Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation G. Salary Increase Factors Current salary is assumed to increase at an annual rate equal to 6.0% per year. H. Retirement Rates Members are assumed -to retire on their normal retirement date, minimum one year of future service. Rates of early retirement for Police Officers were used in accordance with the following illustrative example: Fears Preceding Early Retirement Rates $' rnlal Retire ment Per 100 Police Officers. '_: Y­ 5 6 5 ,7. -1.0 2 I. 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. I Cost Methods Normal Retirement Termination Disabilitv 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. K. Changes Since Previous Valuation None -zo- GABRlEd„ ROEDER,- 5MffH & COM PANY South Miami Pension Plan Actuarial Impact Statement as of October 1, 2003 A. Description of Proposed Amendment (see attached Proposed Amendment) Police Officers shall participate in the Plan from date of employment. For Police Officers, credited service shall be continuous employment provided that participation began at first eligibility. 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, Article X of the State Constitution. Chairman, Retirement Committee Date 'rN N.v 22 04 03:46p p.I Sri,: .l �'J ?' :s �. �. Ae �%�•• •;.� mac:• 'o.• .af yZ .. •�L MAY. H:�� ;s•;.:i +�•; %4:.. ?Yi Nov 22 04 03:46p CITY OF SOUTI1 MUM) PENSION FUND ME. -TUTES JANUARY 27, 20.34 Chairman Fulton called the meeting of the Board of Trustees of the City of South Miami Pension Fund to order at 9:10 a.m., at the City Cc mmission Chambers of the City of South Miami. TRUSTEES PRESENT: Eric Fulton, Maria Stout Tate, Rick Freeburg, Frank Gilbert and Bruce Ross OTHERS PRESENT: Fund Attorney David Rob nson; Tim Nash of Trusco Capital Management and Administrator Haydee Lopez of Be: tefits USA, Inc. APPROVAL OF MINUTES: A motion made by Ms. Stout -Tate to approve tt a minutes of the regular meeting December 8, 2003 was seconded by Mr. Freeburg. T he motion carried. CONSENT AGENDA: Sugarman & Susskind, PA(Inv#2771 I Legal Fee) $2,500.00 Benefits USA, Inc. (January, 2004: Adm Fee) $990.00 Salem Trust Company (10/1 /03= 12/31/03 Custodian 1 ee) $1,802.10 Gabriel, Roeder, Smith & Company (Inv#R9185) $4,585.00 A motion by :Ms: Stout -Tate to approve the consent agenda was seconded by Mr. Freeburg. The motion passed UNFINISHED ]BUSINESS: Status of Pending Annuity Policv Attorney Robins, �n reviewed a letter prepared by his office dated* January 22, 2004 as directed by the Tr lstees. Attorney Robinson reported that there has been no response foron the City as of yet. Chairman Fulton directed the Fund Attorney to follow up within 30 days. Attome i Robinson reported they would do SO. Trustee Vacancies and Expired T-- Attorney Rot inson reviewed a letter prepared by his office dated January 22, 2004. Ms. Stout -Tate ; Ldvised the Trustees that she has a possible applicant for the Board who lives in Soutlt Miami. Attorney Robinson also reviewed a letter prepared by this office regarding th.: make up of the board Following review, it was noted that the Fund Attorney did not lu ve the amended Ordinance because the ordinance had changed from five to seven members. The Administrator was directed to contact the City Clerk and provide the Fund Attorn �-y with the amended Ordinance. It was noted they would do so. The Trustees directed th-, Fund Attorney to revise the letter. 0 Nov 22 04 03:47p p.3 BALLOT RESULTS RE: CHAPTER 99 -1 MINT 4UM BENEFITS Ms. Lopez reported on the ballot results regarding the Chapter 99 -1- Minimum Benefits. It was noted that I7 pension fund members chose Option #2 which was Provisions 7 and 8; 2 pension fund members chose Option 1 which was Provisions 3,4,5 and 7; and 2 pension fund members chose Option 3 which was held the monies in reserve. Following discussion, the Trustees. directed the Fund Attorne: i to draft an Ordinance to fund the Minimum Accrual Rate at an annual cost of $103.00 and the Credited Service Definition at an annual cost of $26,473.00. It was noted that tie Fund has $28,333 in excess state funds to apply towards the annual cost of these two minimum benefits. Attorney Robinson noted they would do so. REPORTS Attorney- No further report. Chairman- No fiuther report Secretary — No further report Administrator- Ms. Lopez reported that the Inver tment Agreements between Trusco Capital Management and the. Fund were irr order an( had been signed by all appropriate parties. A copy of the Investment Agrauents we..e. -in the Trustees packets for their records. The next meeting date was scheduled forApril 27, 20 )4 at 9:00 a.m. A motion by Mr. Ross to adjourn the meeting at 9 :3 i a.m. was seconded by Ms. Stout - Tate. The motion passed. Mr. Tim Nash of Trusco Capital arrived at 9:35 a.: n. to present his firms Investment Report for the quarter ended December 31, 2003. A n lotion by Mr. Ross to reconvene the meeting at 9:35 a.m-was seconded by Ms. Stout -Tate. The motion passed. INVESTMENT REPORT FOR QUARTER ENDE D DECEMBER 31, 2003 Mr: Tim Nash was present to provide his report for th, 'quarter ended December 31, 2003. Mr. Nash reported that now that the investment Agm ments have been signed the 2 fixed income portfolio were purchased on December 31, 20 )3. I& Nash stated that the market value of the Fund as of December 31, 2003 was $12,( 33,695. Mr. Nash reported that the investment returns for the total Fund was 6.55% as of December 31, 2003. The investment returns for the equity portfolio was 10.6 % vs. 12.18% and the investment returns for the fixed income portfolio was 1.06% vs. 0.14% for the quarter ended December 31, 2003. Mr. Nash reported that the ass a allocation is as follows: 63.2% Equity; 33.9% Fixed Income and 2.9% Cash. P Nov 22 04 03:47p Mr. Nash reported that the S & P 500 rose 12.2% on a total return bases in the 4th quarter. The index was up 28.7% for all of 2003 and this was the largest increase since 1997. Mr. Nash stated that all ten sectors in the S & P 500 incre ised in the 4h quarter and small caps generally outperformed large cap stocks dining the 4" quarter. Mr. Nash reported that the expansion in the economy, supported by continue d fiscal and monetary policy will support further earnings growth and higher stock prices and the Fund will remain overweighted in equities. Mr: Nash reported the Lehman Aggregate Bond inde K rose 0.32% on a total return basis during the fourth quarter. It was noted that this was the fourth consecutive positive year for the index. Mr. Nash believes that the 20 year secular decline in interest rates is ending, a sharp rise from this point is unlikely over the near terns given current Federal policy and the vulnerability of interest sensitive secto• s. As a result, Trusco is positioning Portfolio durations neutral relative to benchmarks in order to allow the portfolio to "out - yield" the market, during this low bond yield period Mt Nash inquired regarding the best execution letti x Attorney Robinson reported he would draft a letter. A motion by Mr. Freeburg to d aft a letter. and have the Chairman sign as soon as possible was seconded by Nfs. Stout -T cte. The motion passed. A motion by Mr. Freeburg to adjourn the meeting. a. 10:I0 a.m.... was seconded by Ms. Stout-Tate. The motion passed. 'Secretary Q p.4 Nov 22 04 03:47p CSI A.f �Q a R CU W ,y n t� c U +a a� a .0 CL .n ` L a� u P4 P.5 N W O .r N bD R� M 0 0 t`V M N F 9 N CQ� F U. Cc C7 O a V 6 nov cc u4 ua :488 M O r- b N 69 tj O D3 A) It O "u°'v 1`JR` O CCd CO y� O '� p.'1! ~ `f tj 0 col ►moo �,���, a �4 f 1 G3 n.r N 4i 0 d� O 0 Fi v a•• to IL, 0 Q 1 O O M O 0 � t� � tp V 4r � .a C 01 O_ON M .. OQ N cc,0 ,+ N ry dl •w L0, N Uy �ONE d '0 e t3 CV M 00 0 N N W .a o O a+•o O 0 0 84 01 -+.O Qw C1 U In y .r c� _O cn N H I •- i•UVJt`1 ...,^E3' U cq Ct 0 a U tr O� '.4 Is � c O y •� QOM,°.: o -4 04 F 4-1 4. .ri T N iD O M �7Q 4�in E0 4p � oen40, a o ` 4'01 o 0 pp �+ O �01 N C, ~ 0� 1 N �JIN"`O E] a0 O U�U o Cd ON C� `0 1 r P.6 C, 00 rn c CD O A N U A C'1 W hp Fr M l� 'ti y c y O N ca U a 6S N U A N U A o N W hp Fr y c G.,. O ca U GO • U O bo ' m.:_ .,. U •U p v N o to ba N U "u CFi N U A o N hp Fr MIAMI DAILY BUSINESS REVIEW Published Dairy except Saturday, Sunday and Legal Holidays Miami, Miami -Dade County, Florida STATE OF FLORIDA COUNTY OF MIAMI -DADE: Before the undersigned authority personally:appeared O.V. FERBEYRE, who on oath says that he or she is the SUPERVISOR, Legal Notices of the Miami.Daily Business Review f/k/a'Miami Review, a dally (except Saturday, Sunday and Legal Holidays) newspaper, published at Miami In Miami -Dade County, Florida; that the attached copy (if advertisement, being a Legal Advertisement of Notice in the matter of CITY OF SOUTH MIAMI = PUBLIC HEARING- 12/7/2004 ORDINANCE AMENDING SECTION 20 -3.6 (H) (2) (C), ETC. in the XXXX Court; ivas published in said newspaper in the Issues of 11/26/2004 Affiant further says that the said Miami DailyBusiness Review is a newspaper published at Miami l said Miami -Dade County, Florida and that the said newspaper has : ; heretofore been continuously. published in said Miami -Dade County, Florida, each day (except Saturday, Sunday'and Legal Holidays) and has been entered as second class mail matter at the post office in Miami In said Miami -Dade County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he or she has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing thi6.advertise for publication in the said newspaper. Sworn to and subscribed before me this 26 d o BE A.D. 2004 (SEAL) O.V. FERBEYRE personally known to me ".n+ Maria I. Mesa my Commission DD293855 4 EYoires March 04. 2008 'COURTESY NOTICE CITY OF SOUTI-I'MIAMIi FLORIDA. On Tudsclay, Deceimber 7, 2004; beginning at - 7:30 p.m., "in the City C . orrimission Chambers, 6130 Sunset: Drive, the . City.- Commission will -hold Public - Hearings to consider the following items: AN ORDINANCE AMENOINOTHE.- LAND DEVELOPMENT CODE OF THE CITY OF SOUTH MIAMI TO .ELIMINATE THE REQUIRED MINIMUM. 60% OPEN AREA ON THE 1 O TWO (2) FEET OF FENCES ADJACENT TO -A RIGHT OF-'WAX N ORDINANCE AMENDING THE CITY. OF' SOUTH MIAMI PENSION PLAN, PROVIDING. FOR ELIGIBILITY AT bxm OF EMPLOYMENT FOR POLICE. 0 A) OFFICER EMPLOYEES OF THE - CITY OF- SOUTH MIAMI;- PROVIDING, FOR A MINIMUM RATE OF BENEFIT ACCRUAL FOR POLICE OFFICER EMPLOYEES. MPLOYEES A RESOLUTION -PURSUANT TO THE . LAND DEVELOPMENT- CODE FOR RELEASE 0. F A UNITY 0' 01ITLE: FOR PROPERTY. LOCATED AT 8900 SW 60th COURT AND. LEGALLY DESCRIBED As LOTS 1 AND 2, BLOCK 1, - HARRIS ESTATES SUBDIVISION' THE PURPOSE - OF* THE-REQUEST IS TO PERMIT- A RESIDENTIAL -BUILDING TO BE CONSTRUCTED ON . OT L 2. A RESOLUTION FOR" APPROVAL'. - . OF THE FOLLOWING TWO PARKING VARIANCES 'IN-ORDER ' TO PERMIT - PROPERTY LOCATED AT 6230 SW 70TH STREET IN AN.11R6'.'RtSbEkTIAL OFFICE ZONING USE DISTRICT TO 'BE USED ASIA COMMERCIAL -OFFICE 6611L-13114 d:-('I) VARIANCE FROM THE LAND DEVELOPMENT CODE. TO ALLOW-FOU ;�':PFF-STREET PARKING SPACES. WHERE 'THE ' REQUIRED ..-OFF-$TREET.*.,PARKING 18 FIVE SPACES• ' (2) VARIANCE FROM THE LAND I )EVELopm-ENT CODE'TO ALLOW -REQUIRED PARKING. TO BE - LOCATED IN 1 THE - FRONT SETBACK- AREA WHICH IS PROHIBJTED IN THE Rd ZONING USE DISTRICT.: Inquiries concerning : this item should be directed to the Planning Department'at 305 -663- 6326. ALL interested parties are invited to attend and will be heard Maria M. Menendez City Clerk Pursuant to Florida -8tatutes- 286.0105, the -City hereby advises the public that if 6 person decides t 0 appeal any. decision made by this Board, Agency or - Commissjon''with ..respect to any matter' considered at Its meeting or -hearing, he or she will nedd'a record of the proceedings, -and that for such purpose, affected person may, need to ensure that a need 'a of the proceedings is made which record includes the testimony. and evidence upon which'thij appeal is to be based. - Uj Uj 0 Z lu W MIAMI DAILY BUSINESS REVIEW Puhtshed Dagy ®wept Saturday, Sunday and Leo Holidays MMaed: MlemiDada County. Flodda STATE OF FLORIDA COUNTY OF MIAMI -DAVE: Before the undersigned authority pareonatly appeared O.V. FERBEYRE, who an oalh says that he or she Is the SUPERVISOR, Legal Notices of the Miami Daily Business Review We Miami Review, a dally,(except Saturday, Sunday and Legal Holidays) newspaper, published at Miami M Misml -Dade County, Florida; that the attached copy of advertisement, being a legal Advertisement of Notice In the matter of CITY OF SOUTH MIAMI PUBLIC HEARING FOR 3/15/2005 in the XXXX Court. was published in said newspaper In the Issues of 03/04/2005 AfOaM further says that the said Miami Deily Business Review is a newspaper published at Miami In said Miami -Dade County, Florida and that the said newspaper has heretofore been continuously published In said Miami -Dade County, Florida, each day (except Saturday. Sunday and Legal Holidays) and has been entered as second class mail matter at the post office In Miami In sold Miami -Dade County, Florida, for a period of one year next preceding the first publication of the attached copy of advertlsemen% and affiant further says that he or she has neither paid nor promised any person, Ann or corporation any discount, rebate. commission or refund for the purpose of securinos adv�ril a,nt for publication In the said Swom to and subscribed before me this 04 day of MARCH A.D. 2005 (SEAL) Cheryl H Wr O.V. FERBEYRE personallf y ll tpt misebnDC i 4 i -- � RELIGION NOTES irs through seniors ece of fabric or an indkerchief -along ms such as pillow- s and more to ceie- htness of Shabbat. nrlll be provided. ; or dress accord - h Shabbat' Service Shabbat in an Intl- •• service in in Room eth Am is proud to ,ational network of affiliated with . ynagogue Transfor- tenewal dedicated g Shabbat :with a ovative options In wayer, study, social programming. The groundbreaking of Sanctuary/Ball- -I/Administrative I beat 11:30 a.m. more inf&rnatton, ,Epstein. Develop- or, ext. .148, Iep- org. Family Purim gating Beth Am's y will be frofn noon frch 13. Call Susan 305- 667 -7185 or ineldiarmari at Q. The Empty Nest - a screening. of The -'s Wife :at 7 p.m. ritact A Hole Baran-, 151 or•; :;aberen- rg. P.urirri:Celebra- .Shushan Idol will be �� ,�cF•24 Ati`evening for-, :.chll'dreni •and pe'clal'activities for- kets $15'i1 advbnce, or:'Cfiiliiren "'under 5 ire .free. `.:kets <'can be:;pur- :Marsh °22:.Ca11 Lori "ext:: 114; Isolo- org:. -1 1igh.: school agues are Tuesdays. s:' and' '. Thursdays ril 28 for'girls and nine-to12. A fee is ntact Linda Feffer- tb.all Coordinator, or Ifeffer- 3,rg. BAFTY's annual .fiction will be March avdalah, dinner and :tlon to'raise money nny, a camp run by rderprivileged chil- Atlanta. Cell Amy wth director, at ext. el, 137 NE 19th St., 00: Hamentaschen 101 Course will be 10 a.m. March 13. to make Purim's kle'dough. RSVP to at 305 -573 -5900, 30th Annual Cantor is Spring Music Fes - ghts of 20th Century at 1 p.m. March 13 long other cantors. torlal Soloist, Karina Cost: $18. Call 10 to RSVP. Sister - ts "Do -Re-Mi ".donor 11:30 a.m. March 17. the opportunity to great people, enjoy nd contribute to the grams..For reserva- Series will be rioon March 24 and discuss The Things They Carried by Tim O'Brien. Lisa Jefferies will lead the session. Bring a bag lunch and coffee will be pro- vided. Adult Purim .Megillah Reading "Year of the Hat" will be 7:30 p.m. March 26. Bring your fanciest, funniest hats and cos- tumes. We will read from the Megillah and Chinese food will be served. Tickets are $10 per per- son. Call 305 -573 -5900. Feed the homeless in a Joint program with Touching Miami with Love will meet 7:45 to 10:45 a.m. March 27 at Central Baptist Church on Northeast Fifth StreAt and Northeast First Avenue by the Court Building, We'll prepare and serve food and do clean up as well as have an opportunity to have some fascinating conversa- tions with our friends who partic- ipate. Contact us to reserve your slots.. Contact Bruce Jay at 305- 576 -5001, ext. 28. Temple SamU -EI Or' 01011111. 10680 SW 113th P1., 505 -271 -5756: Adult B'nal Mitz- vah class, conducted by Cantor Ronit Rubin, at 8 p.m. March 15.. Contact the Synagogue office for registration. TSOO Youth Singers will rehearse with Cantor . Rubin from 5:30 p.m, to 7 p.m. and TSOO Adult Singers wilt rehearse with Cantor Rubin from 7:30 p.m. to 9:15 p.m. March 10 and 17: Shabbat evening services will be conducted by Rabbi David D. Schonblum whose ser- mon topic will be "What Is a Shekel?" at 8 p.m. March 11. Can- dle lighting Is at 6:10 p.m. Shab- bat morning services will be con- ducted by Rabbi David D. Schonblum who will discuss the Torah portion, Pekudel, at 9:30 a.m. March 12. Shabbat ends at 7:04 p.m. United Synagogue Youth (USY) Havdalah and Des- serts at 7:30 p.m. followed at 8 ' p.m. by the USY Talent Show March 12. Enjoy the 'songs. acts, dances and comedy. Admission Is* $5 and will benefit our own chapter, USY, Inc. Shabbat eve- ning services will be,conducta by Rabbi' David D: Schonblum . whose sermon topic will be 'Minding Your Business', at 8 p.m. March 1B. Candle lighting Is at 6:13 p.m. Shabbat morning services will be conducted by Rabbi David D. Schonblum who will discuss the Torah portion; Vayikrbh at 9:30 a.m. March 19. Shabbat ends at 7:07 p.m. Purim' Carnival and Klezmer Concert from 10 a.m, to 2:30 p.m. March 20. Enjoy .the games, rides and tasty foods. Listen to, sing, and dance the joyful Klezmer songs and melodies. Kids Club sched- ule, open to children In kinder -. garten through fifth grade: Meet- ings will be held on Wednesday eveninfls, April 13 and May 11. All events will be held at the Temple. Dues for the year are.$60, which will Include regularly scheduled activities and snacks. Visit www.tsoomlami.org. Y7 Ms waves *PS you up .On whas hot, what's not and GL� that's PA . on land Or sea. 'Wheels Waves Every Thursday In The Herald +71-70 '°' •m .. gg..�� , .... ..eep. p� g� �, .p. ... ,...... CI `OFID TH MIAMI9 F�;C�I ®� On TUesday,,Msrph 15, 2005, beginning at 7 :30 p.m.,•in the'CItY Commission chambers, 6130 Sunset Drlve,dpe CIy Commission vrll hold PdbRc HH.eaNhgs•in consider the lollmvtng Items AN ORDINANCE AMENDING THE CiTY OF SOUTH MIAMI PENSION PROIiIDWG FOR ELIGIBILITY. AT DATE OF EMPLOYMENT FOR POU OFFICER EMPLOYEES OF.THE CRT OF SOUTH MiAMI FBOVIDi14G FOR A 'MINIMUM RATE OF BENEFIT' ACCRUAL FOR' POLICE OFFICER EMPLOYEES. AN ORDINANCE ADOPTING A DEVELOPMENT AGREEMENT PURSUANT TO FLORIDA • STATE STATUE 163.5221 FOR A UNIFIED DEVELOPMENT PROJECT KNOWN AS "PROJECT SiINSET"WHtCH WILL INCLUDE THREE BUILDINGS UP TO FOUR (4) STORIES IN HEIGHT AND THE FOLLOWING USES: 1Go MULTI - FAMILY RESIDENTIAL UNITS, RETAIL USES, OFFICE USES, RESTAURANTS, BANK .AND A PARKING GARAGES; ALL FOR PROPERTY LOCATED GENERALLY AT 5750 SUNSET DROVE AND LEGALLY DESCRIBED AS TATS 6 THRU 9,40 THRU 45, 63 THRU 66 =WSIVE AND. THE EAST SO FEET OF LOTS 61 AND 52 OF W. A. LARiiNS SUBDIVISION ACCORDING TO THE PLAT THEREOF RECORDED IN PLAT BOOK 3 AT PAGE 196 OF THE PUBLIC RECORDS OF MIAMI -DARE COUNTY. A RESOLUTION FOR A SPECIAL EXCEPTION APPROVAL TO LOCATE A LARGE SCALE DE)VELOPMENT USE 719i"7160 *STORY MIXED USE MEDICAL OFFICE / MUD (MU- S)", ORiENTED DEVELOPMENT DISTRICT 9WEA USE 5). A RESOLUTION FOR A SPECIAL USE APPROVAL TO'L.00ATE FOUR GENERAL RESTAURANTS AS PART OF "PROJECT SUNSET" A UNIFIED DEVELOPMENT WITHIN THE "SR NNLATL PECIALTY RETAIL (HOMETOWN DISTRICT OVERLAY) ZONINO DIS LL FOR PROPERTY LOCATED GENERALLY AT 5750 SUNSET DRIVE GALLY DESCRIBED AS LOTS a THRU 9, 40 THRU 45, 63 THRU 66 VE AND THE EAST 50 FEET "OF' LOTS 51 AND 62 OF W. A INS SUBDIVISION PG E P BOOK 3 AT PUBLIC RECORDS OF MIAMI -DARE COUNTX ftldes the above two items should be, directed to the City Clerk's oflice at 305-663-6340; ALL Interested parties are Invited to•atterid and w10 be heard. Marla M. Menendez City Clark 7 n D Qom.. 0 0 X W•i ., x• E u 'd 1. S. 1997 Resolution ( Resolution No. 264 -97 -10264 — Lowering age of retirement for General Employees ) RESOLUTION NO. 264 -97 -10264 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO APPROVAL OF COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF SOUTH MIAMI AND AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL -CIO; CITY EMPLOYEES LOCAL 3294; WHICH AGREEMENT PROVIDES FOR AMENDMENTS TO ARTICLE II; ARTICLE XIII; ARTICLE XVI; ARTICLE XV; ARTICLE XVII; ARTICLE XIX; ARTICLE XXVII; ARTICLE 3=; ARTICLE XXXVII; ARTICLE XXXVIII; AND ARTICLE XXXIX OF 1994 -97 AFSCME AGREEMENT. WHEREAS, the City Manager and the American Federation of State, County and Municipal Employees ( AFSCME), Local 3294 have reached a Collective Bargaining Agreement for the 1997 -98 fiscal year; and WHEREAS, the agreement has been ratified by the union rank and file on December 12, 1997, and WHEREAS, the agreement provides, among other things, that: (a) All bargaining unit employees who are employed in positions covered by the unit on the date this agreement is ratified by the City Commission shall receive a four percent (4 %) wage increase effective October 1, 1997. (b) Effective 1998, the Friday following thanksgiving day will be recognized as a paid holiday by the City, with the work schedule for those employees required to work on the day to be arranged by their supervisors. (c) Effective October 1, 1997, the City shall issue a jacket of quality comparable to that used by the Police Department to each employee covered by the agreement. Furthermore, safety shoes will be replaced as necessary to maintain safety standards of the Department. (d) Effective October 1, 1997, annual award in the form of a $25.00 check, along with a Safe Driver Certificate shall be presented to each employee in the following categories with a safe driving record: Heavy Equipment Operator H Heavy Equipment Operator I Waste Collection Driver Field Foreman Landscape Supervisor Building Maintenance Supervisor (e) Effective October 1, 1997, the retirement age shall be reduced from 60 years to 55 years for all general employees, and the pension benefit multiplier factor shall be two and one quarter percent (2.25 %) in 1997; two and one half percent (2.5 %) effective October 1, 1998: and two and three quarters percent (2.75 %) effective October 1, 1999. (f) Effective October 1, 1997, any employee that works in a higher pay status classification for three (3) consecutive work days will receive pay of the lowest step of the higher classification or a one (1) step pay increase (whichever is higher) for all consecutive hours worked in the higher classification. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI: Section 1. That the City Commission hereby ratifies the aforesaid amendments to the agreement between AFSCME Local 3294 and the City of South Miami. Section 2. That this resolution shall take effect immediately upon approval. PASSED AND ADOPTED this 16th day of December, 1997. ATTE T: 7 CITY CLERK READ AND APPROVED AS TO FORM: C1`TY ATTORNEY r1m COMMISSION VOTE: 5-0 Mayor Price: Yea Vice Mayor Robaina: Yea Commissioner Oliveros: Yea Commissioner Bethel: Yea Commissioner Young: Yea