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11-06-07 Item 7South Miami AlaAmericaCilY CITY OF SOUTH MIAMI OFFICE OF THE (CITY MANAGER INTER - OFFICE MEMORANDUM 2001 To: The Honorable Mayor & Members of the City Commission Via: Yvonne S. McKinley, City Manager From: Jeanette Enrizo, Human Resource nager Human Resource Date: November 6, 2007 Agenda Item No.: Subject: Authorizing the City Manager to Purchase Annuity Policy — Lisea Merrick Request: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AUTHORIZING THE CITY MANAGER TO PURCHASE ANNUITY POLICY FOR LISEA MERRICK IN THE AMOUNT NOT TO EXCEED $102,000; PROVIDING FOR AN EFFECTIVE DATE. Request: Authorizing to purchase an annuity policy for Lisea Merrick. Reason/Need: On June 14, 2002, an agreement was made between the City of South Miami and former police officer Lisea Merrick. In order to satisfy the terms of the agreement related to retirement, the City has agreed to purchase an annuity policy for Ms. Merrick in the amount of $102,000. Cost: $102,000 Funding Source: 001 - 2100 - 519 -4910 — Other Charges /Obligations (Settlement) with current balance of $120,0010.00. Backup Documentation: 0 Settlement Agreement — Lisea Merrick. Letter from Sugarman & Susskind regarding Lisea Merrick Settlement. Annuity policy — AIG Application. RESOLUTION NO.: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, APPROVING THE CITY MANAGER TO PURCHASE ANNUITY POLICY FOR LISEA MERRICK IN THE AMOUNT NOT TO EXCEED $102,000; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on June 14, 2002, an agreement was made between the City of South Miami and former police officer Lisea Merrick; and WHEREAS, in order to satisfy the terms of the settlement agreement, the City is purchasing an annuity policy for this former police officer, Lisea Merrick. NOW, THEREFORE, BE IT RESOLVED, BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT: Section 1: The City Commission is authorizing the City Manager to purchase an annuity policy for Lisea Merrick in an amount of $102,000.00. Section 2: The annuity policy shall be funded from account number 001 - 2100 -519 -4910 with current balance of $120,000.00. Section 3: The attached exhibit is incorporated by reference into this resolution. PASSED AND ADOPTED this ATTEST: CITY CLERK READ AND APPROVED AS TO FORM CITY ATTORNEY Include File Name and Path day of 12007. APPROVED: MAYOR COMMISSION VOTE: Mayor Feliu: Vice Mayor Wiscombe: Commissioner Palmer: Commissioner Birts:_ Commissioner Beckman: AIG AIG Life Insurance Company 600 king Street Wilmington, Delaware 19801 A capital stock company MASTER APPLICATION FOR GROUP ANNUITY Application is hereby made to AIG Life Insurance Company. By City of South Miami For coverage under Group Annuity Policy Number RGA -01263 The Policyholder hereby approves and accepts the terms of said policy which shall be effective as of the date of issue specified therein. It is agreed that this Application supersedes any prior Application for such policy. Signed on Month Day Year Policyholder By: Signature Name -- -- Title 46648RG (7163) APP AIG Life Insurance Company 0 Signature Stephen J. Brenneman Name Vice President Title AIGUN E AIG Life Insurance Company 600 King_ Street Wilmington, Delaware 19801 A capital stock company In consideration of the Application for it, AIG Life Insurance Company (we, us, our) issues this Group Annuity Policy RGA -01263 to: Policy Holder: City of South Miami Effective Date: October 5, 2007 and agrees to pay the benefits provided in accordance with its conditions and provisions. This Policy is governed by the laws of _Florida _ If as the Policyholder you need to contact us to present an inquiry, obtain information about coverage, or for assistance in resolving a complaint, you may reach us at (800) 842 -3068. AA, �. Secretary President GROUP ANNUITY POLICY NON - PARTICIPATING 11ODGAN905 (FL) DEFINITIONS Annuitant means the person designated in a Certificate and upon whose life the amount of the Annuity Benefit is determined. Annuity Benefit means the periodic payment made to a Payee, in accordance with this Policy. Annuity Date means the date on which the first Annuity Benefit payment will be made to a Payee. Beneficiary means the person named to receive any remaining benefits payable after the death of the Certificate Owner and the Joint Owner, if any. Home Office. AIG Life Insurance Company, 600 King Street, Wilmington, DE 19801. Joint Annuitant means the person named by the Certificate Owner on a Joint Life Annuity Type of Annuity option to serve as the measuring life, if still living after the death of the Annuitant. Non. Participating means this policy does not participate in our divisible surplus. No dividends are payable. Payee means any person receiving an Annuity Benefit under a Certificate. Policy Holder means the entity named as the Policy Holder on the face page of this Policy. Premium means the amount we receive to purchase an Annuity Benefit. Type of Annuity means the type of annuity benefit specified in the Enrollment f=orm. The Policy Holder may request any type of annuity benefit that we make available under this Policy. Written Notice means information given in written form either by the Policy Holder or us. If given by the Policy Holder, such Written Notice must be in a form which is satisfactory to us and signed by the Policy Holder. 11 ODGAN905 (FL) 2 PAYMENT OF-PREMIUMS The Premium required for the purchase of an Annuity Benefit under this Policy is due and payable no later than fourteen (14) days before the Annuity Date for which such Annuity Benefit is being purchased. All such Premiums shall be payable to our Home Office or to one of our agents authorized in writing to receive such payment. We will only be liable for those Annuity Benefits for which the appropriate Premium has been received. PURCHASE OF ANNUITY BENEFITS Not less than twenty -one (21) days prior to a Certificate's Annuity Date, the Policy Holder or Certificate Owner shall provide us with Written Notice, including the appropriate Enrollment Form supplied by or satisfactory to us and any other information and data with respect to the Annuitant and the Certificate Owner which we require to issue the Annuity Certificate. The Premium received with respect to that Annuity Certificate, reduced by the amount necessary to pay any state premium taxes and expenses, if applicable ("Net Premium "), will be used to purchase the Annuity Benefit. The amount of the Annuity Benefit will depend on the purchase rates, the Type of Annuity, the Annuity Date, and the age and sex of the Annuitant and Joint Annuitant, if any. ANNUITY PURCHASE RATES Upon request, we will furnish to the Policy Holder, the purchase rates applicable to an Annuity Certificate to be issued under this Policy. We shall have the right to change the actuarial assumptions underlying the purchase rates at any time upon 14 days prior notification to the Policy Holder. However, the minimum Annuity Benefit will be no less than that which could be purchased based on the following assumptions: Mortality: 1994 GAM with projection scale AA Interest: 1.0% per annum Expenses: 4.0% State Premium Taxes: As applicable in the Certificate Ownees state of residence Any change in the actuarial assumptions underlying the purchase rates will only apply to those Annuity Benefits for which we have not already received a purchase request including all information necessary to issue an Annuity Certificate with respect to such Annuity Benefit. However, any such change will apply to a purchase request already received if payment of the Premium with respect to that purchase request is not received within seven (7) days of receipt of the request. PAYMENT OF ANNUITY BENEFITS The amount of the Annuity Benefit will be paid Ito the Certificate Owner beginning on the Annuity Date, in accordance with the Type of Annuity selected on the (Enrollment Forma The Annuity Benefit may be paid monthly, quarterly, semi - annually or annually, as selected on the Enrollment Form. However, if such periodic Annuity Benefit is less than $50, we shall have the right at any time to pay such Annuity Benefit less frequently, in advance, but in no event less frequently than annually. CERTIFICATES We will issue an Annuity Certificate for delivery to each Certificate Owner, which contains a summary of the benefits to which the Certificate Owner is entitled under this Policy. FACILITY OF PAYMENT If any Payee who is receiving an Annuity Benefit under this Policy is adjudged to be legally, physically or mentally incapable or incompetent, we may pay such .Annuity Benefit to the legal guardian or other legal representative of such person. Any such payment shall constitute a full discharge of our obligation to the extent thereof. 11ODGAN905 (FL) 3 NOWALIENATION OF BENEFITS No sum payable under this Policy may be assigned, alienated or encumbered by a Payee. To the extent permitted by applicable law, no sum payable under a Certificate shall be subject to the claims of creditors or to legal process. INFORMATION WE REQUIRE The Policy Holder or Certificate Owner must furnish any information that we may reasonably require for the administration of each Annuity Certificate. We have the right to rely and act on such information in the administration of the Annuity Certificate. If the age or sex has been misstated with respect to a person for whom an Annuity Benefit is measured, an equitable adjustment will be made. In no event shall we be liable for any greater Annuity Benefit with respect to an Annuitant than that which would be payable based on the correct information and the Premium we received for such Annuity Benefit. EVIDENCE OF SURVIVAL We retain the right to require due proof of any Annuitant's survival when an Annuity Benefit is contingent upon survival of the Annuitant. Further, the Payee, for himself, his heirs, and successors represents by negotiation of our check or bank draft that the Payee is living on the date any Annuity Benefit is made. MODIFICATION OF POLICY We may modify this Policy at any time by giving 30 days advance Written Notice to the Policy Holder. No modification shall affect the amount or terms of any Annuity Benefit already purchased prior to the effective date of the modification. We may make any modification, including retroactive modifications, to this Policy for the purpose of conforming this Policy to any applicable law or any regulation issued by any governmental agency to which we or this Policy is subject. ENTIRE CONTRACT This Policy and the application of the Policy Holder, a copy of which is attached hereto, constitutes the entire contract between the Policy Holder and us. Any Annuity Certificate issued is not a part of this Policy. NON - WAIVER OF POLICY PROVISIONS Our failure to perform or to insist upon the strict performance of any provision of this Policy shall neither constitute a waiver on our part of our right to perform or to require the performance of such provision nor prevent us from exercising any other right we may have under this Policy. DEATH PRIOR TO ANNUITY DATE If an Annuitant and the Joint Annuitant, if any, die prior to a Certificate's Annuity Date, whether or not a refund is paid will depend upon options made available by Us and selected by the Policy Holder. If a Certificate Owner who is a non - natural entity ceases to exist prior to the Certificate's Annuity Date the Beneficiary will become the successor Owner. DEATH AFTER ANNUITY DATE If the Certificate Owner dies after the Annuity Date, any remaining Annuity Benefit will be paid in accordance with the terms of the Annuibj Certificate, first to the Joint Owner, if any, then to the Beneficiary. When a Certificate Owner who is a non - natural entity ceases to exist after the Annuity Date, any remaining Annuity Benefit will be paid to the Beneficiary. In the event an Annuitant dies after the Annuity Date, any remaining Annuity Benefit will be paid in accordance with the terms of the Annuity Certificate. We may require a death certificate or a physician's written statement certifying the death of an Annuitant or a Certificate Owner, or proof in a form acceptable to Us of the dissolution of a non - natural Owner. An 110DGAN905 (FL) 4 Annuity Benefit paid by Us in good faith in accordance with the terms of the Annuity Certificate shall, to the extent of such benefit, fully discharge Us from any further liability. MISCELLANEOUS We shall not be considered a party to, nor shall we have any responsibility for the validity of any trust agreement or plan which is not made a part of this Policy. Our rights and obligations shall be governed solely by the provisions of this Policy. TERMINATION OF THIS POLICY This Policy will terminate with respect to the issuance of any new Annuity Certificate upon 90 days advance Written Notice by AIG Life Insurance Company or upon 30 days advance Written Notice by the Policy Holder. Such termination shall not affect the terms or conditions of any Annuity Certificate which was purchased prior to the date of termination. This Policy will finally terminate when all Annuity Benefits due from us under this Policy have been paid. 1 i ODGAN905 (FL) Cc __sue AlGill. axwa AIG LIFE INSURANCE COMPANY 600 KING STREET WILMINGTON, DELAWARE 19801 GROUP ANNUITY POLICY NON - PARTICIPATING 11ODGAN905 (FL) RETIREMENT ANNUITY PROGRAM .FIXED SINGLE PREMIUM IMMEDIATE ANNUITY QUOTE AIG Life Insurance Company Attn: Annuity Administration (DPEN) P.O. Box 1277, Wilmington DE 19899 -1277 Quote Date: September 27, 2007 Deposit Date: October 4, 2007 Quote Expiration Date: October 4, 2007 PROPOSED OWNER: PROPOSED ANNUITANT: GENDER: AGE NEAREST BIRTHDAY: DATE OF BIRTH: STATE OF ISSUE: PAYMENT START DATE: SOURCE OF FUNDS: CONMSSION: PAYOUT OPTION Single Life Only Presented by: Agent: Email: Phone: Fax: CITY OF SOUTH MIAMI LISSEA MERRICK Female 47 July 25, 1960 FL August 1, 2020 Qualified 4% MONTHLY BENEFIT PREMIUM AMOUNT $1,291.25 $102,669.74 Note: All tax reporting and payments will be made to the Owner, not to the Annuitant. This income annuity quote is not a contract. The quote is based upon the factors listed above and a current interest rate established by AIG Life Insurance Company ( "AIG Line "). A change in any factor described in this quote or in the interest rate will require a new calculation_ Please verify with AIG Life that the current rate scale is quoted. The income annuity cannot be surrendered. Exclusion Ratio refers to that percentage of each payment that is not subject to income tax because it represents a return of principal. Please consult your tax advisor. NOTES: 1. Current interest rates are subject to change. The interest rates are updated in AIG Life's quote program. 2. An income annuity quote with correct factors and interest rates is valid until the quote expiration date or until interest rates change, if later. A copy of this quote must accompany the immediate annuity enrollment form. No certificate will be issued if an incorrect rate was used or other quote terms are inconsistent with the enrollment form. 3. In situations where commission is being paid, it: is the respousibility of the agent to inform the Plan of that fact. Note: Quotes can be run for premium of $1 million or less, subject to a $1 million maximum aggregate premium limit per annuitant or joint annuitant, not per application, .including all previous certificates involving the quoted annuitant(s) regardless of funding source or certificate Owner. Any combination of applications on any one individual where the sum total of the premium submitted exceeds $1 million requires approval from the home office. (Example: Two $600,000 immediate annuity applications - aggregate of $1,200,000 - submitted on one individual require home office approval.) For a quote over $1 million, please call 1- 877 - 299 -1724. AIG American General Quote System This quote is not valid unless all pages are attached, IF THE PURCHASE AMOUNT, ENROLLMENT FORM AND OTHER REQUIRED DOCUMENTS ARE NOT RECEIVED AT AIG LIFE ON OR BEFORE THE QUOTE EXPIRATION DATE INDICATED ABOVE, THE QUOTE WILL NO LONGER BE VALID. Fixed Group Annuity Enrollment Form (Please type or print in black ink) Group Policy Number AIG Life Insurance Company 600 King Street, Wilmington, DE 19801 1- 877 -299 -1724 Group Name (If Owner and Annuitant are different check here ❑ and also complete annuitant infonnabon, #2) Individual❑ Partnership❑ Corporation❑ Trust[] Plan Sponsor❑ Other Gender: ❑ Male ❑ Female Date of Birth' (MAAflJD1 m): Name (FIRST, MI, LAST): Mr/Mrs/Ms Address (STREET): 6/ ;; C, Sd^/!E>` � � �� - (C"1STATErZIP) Telephone Number: (_ -0-6' ) Gv6 g ��sf� SSNITAXID: 5-1 6000 $191 If Owner /Annuitant/Payee is a person and neither a U.S. citizen nor a U.S. resident, explain residency and citizenship under "Special Requests ", #4. ( Note: applicable taxable income information will be reported for SSN/TAX ID of primary Owner #1 above) ❑ Spouse ❑ Other Gender. 13 Male ❑ Female Data of Birth* (MMr)nmm): Name (FiasT, MI, LAST): Mr /MrslMs Address (STREET): (CITYISTATEOP) Telephone Number () _ SSNITAX ID: (Complete if Owner and Annuitant are different) Gender: ❑ Male 131114male Name (FIRST, MI, LAST): MdMr uls � ia�%E� -)✓ r'a Date of Birth* (MM+DDIYY": Address (STREET): (CITYISTATEOP) Telephone Number. (_} — SSN)TAX ID: 112A. Joint -,,unuitant 771 ❑ Spouse ❑ Other Gender. ❑ Male ❑ Female Name (FIRST, M1, LAST): Mr /MrslMs Date of Birth* (MtuooNm): Address (STREET): (CITY /STmE2iP) Telephone Number: _(- 1 SSNITAX ID: 1. Beneficiary-Informatimi ( ffmore ftn one Senefidary, pmceads vA be divided equaAy unless otherwise kkated) Name kddress: % SSNITax ID: Relationship to Annuitant: Name Address: % SSN/Tax ID: _ Relationship to Annuitant: If more than 2 BeneHciades, list on a separate sheet signed by the Owner and check this box ❑ �477S�ial Requests: *Evidence of age is required for any Lifetime Income Payout Option 16ODGAN905 y(3 Premium Payment: $ AOZi 7/ _ (Estimated if 1035 Exchange/Trustee Transfer) Type: ❑ § 1035 Exchange/Trustee Transfer (complete 'Company' transfer form) C9" Check Attached ❑ Wire Transfer Source: ❑ Nonqualified ❑ Employer Plans (plan lytWname) ❑ Other PAYOUT OPTIONS: Ur SINGLE LIFE [�'I Mime Income Only (also complete #7) 0 JOINT LIFE: (Also complete Joint Annuitant Information, #2A) ❑ Lifetime Income with Guaranteed Period of (5,10,15 or 20) yrs -> Payments will be % (50 °k, 66713% 75% or 100%) at the ❑ Lifetime Income with Cash (lump sum) Refund death of the Annuitant ❑ Guaranteed Period of - — (5,10,15 or 20) years 13 lifetime income with Anual Increase of % Payment Mode (frequency): M40rithly ❑ Quarterly ❑ Semi Annually ❑ Annually ❑ Other Income Start Date: Will be one modal period from the date premium is received unless stated here.(MMIDI)NM) r � I understand that no further income payments will be made and this annuity will terminate at the death of all Annuitants listed in #2 (and #2A, I applicable) (Owner's Initials) Annuity payments may be subject to Federal and State income tax withholding. If you elect not to have withholding apply to your payments, or if you do not have enough Federal and State income tax withheld, you may be responsible for payment of estimated tax. You may incur tax penalties 9 your withholding and estimated tax payments are not sufficient. You may revoke your withholding election at any time by completing a new W4 -P and returning it to the Company. If a W4-P is not Included or withholding is not indicated below, Federal withholding will be for filing as a married person claiming three (3) withholding allowances until revoked by the Owner. FFe real Tax Withholding DCff o Not withhold Federal Income Tax ❑ Do withhold Federal Income Tax based on this information: Allowances _ Marital Status S.taat Tax Withholding (ffaggicable., 1310o Not withhold State Income Tax ❑ Do withhold State Income Tax: Amount $ or % Or Calculate for me using Allowances and Marital Status ❑ Checking (affach voided check) ❑ Savings (attach preprinted deposit slip) Account Number: Name on Account: �� Name of Institution: ABA RoutingiTransit Number Address of Institution: I authorize the Company to initiate credit entries and, if necessary, debit entries and other adjustments for any credit entries in error to the account indicated above. (Owner's Initials) 1600GAN905 Tothe bestof your knoWedge, is this isrraroe bong purchased fo replace a charge: any addrg insurance or anrW. 0 Yes 9 No THE UNDERSIGN@ OWNERS) LNDERSTAND fiat acceptance by the Company cf this zpplicatio1 gulls � an anrdlrnent as a participant under the Group Policy referred to above. The Undesgned Omer(s) will be bound by the provisions and a*ed to fie benefits of the Cerftala. On behalf of fie Undersigned Owno(s) and any person who Trey claim any irtarest resuting from the Undersigned Owmer(s) enrollment under the Group Policy, fie Undembried DAner(s) represent fiat 9 statements set forth above are toil, complete and hg as wrifen and mnedly recorded to the best of lie Uxlersbned Owner(s) krwwledge. Al statements by or on behalf of the arnufanl(s) shall be deemed to be representations aid riot warranties. Under penalties of perjury, 1 certify: (i) that the Social Security Number (SSN) or taxpayer identification number Is correct as it appears on the application; and (2) that f am not subject to backup withholding under § 3406(a)(1)(C) of the Internal Revenue Code; and (3) 1 am a U.S. person (including a U.S. resident alien). The internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding. You must cross out item (2) If you are subject to backup withholding and cross out item (3) if you are not a U.S. person (including a U.S. resident alien). FRAUD NOTICE: (applicants in the following states must read the applicable fraud warning) Arkansas. Kentucky, Louisiana, Maine, New Mexico Ohio Oklahoma, Pennsylvania and Tennessee Fraud Warning: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals, for the purpose of misleading information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. New Jersey Fraud Warning: Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties. District of Columbia and Virainia Fraud Warning: Warning: It is a crime to knowingly provide false or misleading information to an insurer for the purposes of defrauding the insurer or any other person. Penalties include imprisonment and/or fines. In addition, an insurer may deny insurance benefits if false information materially related to a claim was provided by the applicant. Colorado Fraud Warning: It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the; company. Penalties may include imprisonment, fines, denial of insurance, and civil damages. Any insurance company or agent of an Insurance company who knowingly provides false, incomplete, or misleading facts or information to a policy holder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado Division of Insurance within the Department of Regulatory Agencies. Florida _Fraud Warning: Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony of the third degree. X X_ Owner's Sbnalure Joint Owner's Signature (if applicable) Date 16ODGAN905 RDbert A. SugarrnMf- Howard S. Sussl d David E. Robinson Kameth R. Harrison, Sr. D. Marcus Braswell, Jr. George S. Rude Charles A. Gibson bBoard Certified Labor Employment Lawyer S.UGARMAN & SUSSKIND PROFMICNdAL M=IATION ATTORNEYS AT LAW January 29, 2003 Board of Trustees City of South Mami Pension Plans clo Jeannette F.nrizo- Navarro, Humsn. Resources Manager City of South Miami 6130 Sunset Drive South Miami, Florida 33143 Re: Li, seaMer7ick,.4ettlement- 4greemew Dear Trustees: 2801 Pane De Leon Boulevard Sure 75C Coral Gables, Florida 33134 (305) 529 -2801 Broward 327-2B78 Toll Free 1-800- 329 -2122 Facsimile {305) 447 -8115 As you requested, we have reviewed the Agreement entered into between the City and LL-,ea Merrick, a former police officer, which settled a federal court lawsuit which she brought again the city. We have also reviewed. City - .Resolution No. 77 -02 -11426 which approved the settlement agreement and the pro' visions of Chapter 16, Article II of the South M.tami Code which establish and govern the South Miami Pension Plan, of which Ms. Merrick was a participant. We understand that Nis. Merrick had completed 74 months of service in the city pension plan. We, also understand that Section 2 of the Agreement states that the city wffl "provide for the vesting of Plaintiff s [Merrick's] pension and fiuther agrees to make any monetary contributions. for the vesting of the pension up to the 10 year point. Plaintiff recognizes that this is not the usual practice ofthe city." According to our understanding ofthe settlement agreement, the city agreed to provide an addhional 46 months of credited service to Ms. Merrick (the difference between the 74 months of service which she earned as a result of her city employment and the 10 years, or 120 months, promised to her in the Agreement.) Board of Trustees City of South Miami Pension Funds c/o Jeannette Enrizo- Navarro, Human Resources Manager City of South Miami January 29, 2003 Page 2 in our opinion, the city cannot provide this benefit to Nis. Merrick from the South Miami Pension Plan. There is no provision in the., South Miami Pension Plan for granting credited service to employees for time not actually worked for the City of South Miami, even if the value of this credited service is fully paid to the pension plan by the city. Further, the pension plan cannot be amended to provide for the purchase of non - worked . credited service for police officers because the provisions of Chapter 185, Florida Statutes, which govern Florida municipal police pensions, only permit credited service to be. granted for achud service as a municipal police offcerr, prior military service, or prior law enforcement service. Therefore, under the provisions of both the South Arami Pension Plan and Chapter 185, Florida Statutes, there is no way that the pension plan can provide the additional. 46 months of credited service to Ms. Merrick, even if the city fully paid for this added "service." According to the Agreement, Ms. Merrick resigned on June 5, 2402. We understand that at the time of her resignation, she had approximately 74 months of service and therefore had not worked the ten years necessary to vest in the pension plan or be eligible for a normal retirement benefit upon reaching age 60. As a terminated urrvested employee, her only benefit entitlement from the South Mimi. Plan is a return of the employee contributions which she made to the plan while employed by the city. We therefore recommend to the trustees that should the city tender payment for additional credited service for Ms. Merrick, the payment be refused by the Board of Trustees and returned to the city. We also recommend that, upon her application, her accumulated employee contributions be returned to Lisea Ma -tick. if the city wishes to implement the intent of its agreement by providing Lisea Merrick with a 10 year pension upon her reaching; age 150, there are at least two ways that the city can do this. 1. While the city cannot grant .Ms. Merrick additional credited service, for the reasons aggained above, the city can lower the vesting requirement to the 74 months she actually worked and_ increase the benefit multiplier rate to produce a monthly benefit, payable upon her reaching normal retirement age, which will equal the amount that she would have received had she earned 10 years of credited service. However, due to the non discrimination provisions of Chapter 185, Florida Statutes, the city would have to make this Iowered vesting schedule and higher benefit rate available to all of the other police officers. While this could be limited to those police officers who left the city's service on June 5, 2002, an opportunity to vest and receive a pension would have to be offered retroactively to all oflkers who had at least 74 months of service as of Jane 2002. Because this would be a very expensive and lucrative benefit and that a number of officers would Iixeiy take advantage of it to leave the city and vest this substantially increased pension, This method is not at all practical. Board of Trustees City of South Miami Pension Funds c% Jeannette Enriao-Navarro, Human Resources Manager City of South Miami January 29, 2003 Page 3 2: The city can amend its agreement with Ms. Merrick to provide an equivalent benefit outside of the South Miami Pension Plan. The city could determine from the Pension PIan's actuary the exact monthly lifetime benefit which Ms. Merrick would receive at age 60 if she had earned 10 years of credited service. The city could then purchase an annuity from an insurance company which would pay and guarantee this benefit to Ms. Aferrick. The city could also agree that Ms. Merrick would contribute her return: of employee . contributions from the Pension Plan towards the purchase of this annuity. Since Ms. Merrick would be withdrawing her contributions from the plan, the city contributions. which were made on her behalf during her' career would remain with the plan, cause an actuarial gain, and ultimately cause a reduction in the city's future contributions to the plan- We will be glad to assist the city in implementing either one of these other arrangements: However, the arrangement set forth in the settlement agreement which grants Ms. Merrick an additional 46 months of service for time not worked cannot lawfully be implemented. Yours truly, ROBERT A_ SUGARMAN RASAd cc: Captain Bruce H Ross, Chairman Officer Eric Fulton, Chairman Earl Gallup, City Attorney r,�►���opn�- i�;�s�act��ra�a �rf +_a.LTED STATES DISTRICT COUni SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION CASE NO:42- 2564- CIV- MORENO MAGISTRATE JUDGE DUBE LISEA MERRICK, Plaintiff, vs. CITY OF SOUTH MIAMI, FLORIDA a Florida Municipal Corporation, Defendant. v I AGREEMENT 'I, kle oil V •- JZ P'r, w �' ne -es 76L z d Ff t 22 %rte �► Fps x «•_•x,S.P.� ;..s;rl� ©!'c3a�rCt�./�S /if/ Zc3- e v,`" Plai if f� `� fendant P3.aintiff's Counsel Defendant's Counsel. DATE r r Lisea Herrick, V. City of 7iami. U.S.D.C. Case Non D2- 2564- C.LV= PORENOfMME Mediation �Agreeement,cont'd. / I NO l� % f e4 /�° r/1 a"f an I�r_J i Q ti P C C �3zvL+ �cr �`-j �i L -�'"t JZ+ f SS ►3�^ `- 1�--- -+�J -( °�j ' VOL" cAL Plaintiff Plaintiff's Counsel DATE ,69 Defendant Defendant's Counsel . I Li.sma Merrick, V. City of .iami U.S.D.C. Case No: 02- 2564- CIV- MORENOIDUEZ Mediation Agreement, cont'd. WQ 6111)-.. .-P J l� r r Plaintiff Defendant Plaintiff's Counsel Defendant's Counsel DATE n '-N -rr1 Lises Merrick, v. City of Ami U.s.D.C.-Case No: 02- 2564- CIV- MORENOJDUBZ - --�df^ l �� ' 7 Plaintiff- Defendant T�ntiffls Counsel De en ant'.s Counse �� DATE G { z2 . r .11-- IA ZG 1ITED STATE'S DISTRICT CC. SOUTHERN DISTRICT.OF FLORIDA MIAMI DIVISION CASE NO:02- 2554- CIV- MORENO MAGISTRATE JUDGE DUBE LISEA MERRICK, Plaintiff, VS. CITY OF SOUTH MIAMI, FLORIDA a Florida Municipal Corporation, Defendant. F. REPORT OF MEDIATION .A mediation conference was held on May 23, 2002 for the above referenced matter. Mediator, KAREN EVANS, conducted the proceedings. All parties were present as indicated by their signatures below. There was an impasse. A .part:ial agreement was reached. A complete agreement was reached. The mediation was Continued. Date: Plaintiff -' a' tiff's Counsel DATE Mediator �f CITY Oly SOUTH MIAMI IN'CE12- OFFICE HEMOPU"DUM ATTOR y- CLIENT PRIVILEGE EXEM" FROM Pi1Buc RECORDS DISCLOs URE To: Mayor and City Charles Scurr CCoM n' Date: May 30, 2002 . t3' anage;r From.: Earl G. Gallop, City Attorney .Re: settlement of Merrick v . GSM I am pleased to advise that we settled the Merrick v CSM fe EEOC claims on terms and conditions that we believe are very deral lawsuit and related will recall that Ofcr..MerriCk filed numeroi3s EEOC Complaints favorable to the ci discrimination lawsuit against the ci P and a federal civil rights judgment in favor of the city the federal district court entered s affairs investigation, and Ofcr. Merrick appealed the order. u 'fin g n, a pre - termination hearing has been conducted d waded internal action by the city manager is Pending' for cause. P g Final action could include to disciplinary Ms. Merrick has threatened to file a further civil action 11 of e she is fired. The city's objectives in .mediation were to obtain Ofc dismissal of claims and a promise not to sue the ci r• Memck s resi We believe that her objective was to receive payTcity of am gnation, tY in the f►itire, at the lust cost to the city. the FLC paid former Ofcz: amount greater to settle upon the to Jhubollahl. At the? conclusion ofinediatio man the $ID0,000 P runs and conditions contained in the attached � Ofcr: Merrick agreed Important provisions are that she will resign, effective at th set for public hearing �'�ment. The most g and action on the agreemect b the city a end of June 4, 2002 (the date employment benefits to that date to which all emp oyees are she wi' comp time and a portion of sick leave), the city will pay a rox nt�tled i.e. gears worth of vestin $18 ,vat g under retirement plans with Prior Pope imately ulIy vested rights under the cz P g government eniplciyer cerued sick..le ve rather than ' ol?ensiOn plan, she will receive atfo�3��""`R- ___, an 25/Q, which is v ►o Payment fr ys`$30,000, she wtll dismiss the current lawsuit and EEOC claims the cit further cauiplaints or 'legal actions against the city, claims r employment by the city. We ty, and she will never costs to be a roximateI $6I estimated the time value of the attorneys F PP Y ,OOO. Under the agreement, Ofcr. Merrick, direct Payments from the city, Memo to: Mayor and City Commission Charles D. Scurr, City Manager May 30, 2002 Page 2 of 2 ATTORNEY - CLIENT PRIVILEGE EXEMPT FROM PUBLIC RECORDS DISCLOSURE The fiscal impact on the city is limited to the approximately $I g,000 payment to the retirement plan, the payment of the resulting increased retirement benefit she will receive when she reaches retirement age and the small additional amount for sick leave. The FLC has paid all of the defense attorney's :fees and 75% of our fees incurr the lawsuit and the EEOC claims. It will pay all of the $30,000 to be paid to her attorneys. We are advised. that the FLC will not look to the city to pay the $25,000 deductible under the contract for the claim as the city has, or -trill, incur that amount in payment of retirement benefits* and un- reianbursed fees and costs. This position by the FLC is very liberal and favorable to the city. Perhaps the greatest non - monetary values of the settlement relate to morale and precedent. We believe that her resignation will result in an immediate boost to the morale within the police department. She was a very negative, troublesome personali Additionally, we were concerned about the legacy of the Jhubollahl settlement. The FLC settled the claim without our participation or approval. The amount of the settlement sent a message to all police officers that they could file an EEOC claim and get a great se ent ent>_ one worth more than their annual salary. Such a message encouraged others to file EE claims and Iawsuits against -the city. The settlement sends a different message: the city will not pay a substantial amount merely to settle troublesome litigation. Indeed, Ofcr. Merrick will not receive any direct payment from the city and her attorneys will be paid far less than the time value of their hours. Please maintain the confidentiality of this communication. —ITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION CASE NO:02- 2564- CIV- 1'70REN0 LISEA MERRICK, MAGISTRATE JUDGE DUES Plaintiff, vs. - -CITY OF SOUTH MIAMI, FLORIDA a , Plorida Municipal Corporation, Defendant. AGiZl�E3dCENT I- . ..� le ..e , 5 GEC e rit ai z f ,,,comic. c h i i)ezendant Piaint'i ms's COunsel 14 4 Def COunael DATE _ i I 0 Lisea Merrick, v. City of Sm Miami U.S.D.C. Case No- D2- 2569- CIV- MDREiJO /DUSE Mediation Agreement, coat'd. t r i c t e, %-f f- jT_ f n V_. (y `� J �7 C--7— f/- 674 ' r d .-� .� .�. = �, r� �•.e V im.. C, �� r✓ Plaintiff r Plaintiff's Counsel DATE 3 Defendant Defendant's Counself �,� e'O. Y-r =-p— it LiSea ?18SZSCX, V. City Of SC ami U.S.D.[. Case No: 02- 2564- CIV- MORENO /MME; Mediation Agreement, eont'd. OIL p4 /y /� /- ► ILr ^ l� , .� �• � f' � /-- E' --2;�„ �`'�` rte% l' � �r� r..x �. r �t -�..� i r • i d� � J - C � "1' l � W'!^1.�^-.�.r`Y f^'7�r' _ �'_'"'^KI`.a..�c�_ � %_•J � i . x_- ✓ 7�"- T r „ 4.711n) vfc.10�7 Plaintiff -- - Defendant Plaintiff's Counsel Defendant's Counsel DATE � ,� Linea Merrick, V. City of south N --mi U.S•D.C. Case ND. 02-2569- CIV- 14pP.E140/DUNE Plai.z�ti f Fx a 20 OP �la'ntiff's Counsel 17ATE I;"- �G LRIY dTfIGf ! U' ., JOUNS611, A mmILMO, MURDOCR, BUAK& & Gxo8GE, Y.A. ' RI'R��tQNRLRlSIK:AYtDet - ■. ,T.611w1�• roof aR+aavwbeWD. suttGiat . PONOWWWROOck aA.Ot .,PJi XWt AUDMWat PLMf fm0IAm- ILPMMPA, . CAROLYN A. WMN WMLMM t; PtAATQW MRW F— ILL P!Om'OFMSOx&V= DAKG} KSCHAVGlR ,►0*MV L HMM9* W.:'.R• PORT LIU0 MALE, F1.3J7CJ 4MM Gtt UMIDPWR L- SWM ' (�St)aiipmlE Wawsr6 pe'sj d�6 X400 � Datlr pwt.,ruturreai ts9tfe40- 7stR -I�ln Rc� , 7'ELEOdF'lE�p�y •d•xi.. May 2s, 202 in Ms. lip . o!' Cites . . PD. x 538!35' a, � 32853 -Sj Re: Uses Ma Tick V. City of Sobth M=4 Fhbridi U.S. bicttici t ottut SoLtttt m District. Miami Dtvisiost - . . Case No. 4D- 2S64 —a V- Morvaa Our Foe, 64WM98 Dcar, lei's. Cohen: elos6dftyouridannat ortaizdt�evieswis acopyoMeAgm=cntrsched atmediationbeld Fr on May 23, 2002. 's Shou!d you have uty questions, pteas+a contact sne At your conveuimtx: r- yt.mayyaur •1R.iahard "K MGDufr For the Firm vG: Mops Esq- Nis. Ranetta Taylor • . • - Eaa�osfuc 0 SouT.K8W DISTRICT' CF ' FLORIDA MIAMI DXVI;SICN -CASZ NO.02- 2564-- CIV- MORENO 0�_ MAGISTOAT� JUDGE DUNE LISEA► 1 RRZCK' Plaintiff, VS. C.TTy. OF SOUTH MIAMI, FLrjnDA a . Florida Municipal Corporat iOrl, Defendant. �.pr wpm or M MIATTON A mediation 'CCnfWrM%Ce was bald. on May 23,0 2002 far the above referenced mattee Med9.ator, KApjN zvzW, conducted the proceedings. - All paE1 :ie5 taf:re present; as indicated by -their signatures below: Tbe:re was ari impasse. A partial .agreement was reached. A. Compl&te agreement wets reached. The medfat -ion was continiied.' Date, plainti f' - a Ll'�Ef's Cotirssel . Mali, J•eF� T 4 A7 LISEA MERRICK, UNITED S-MTES sotrnmTN -I)ISTR:ICT Or PLORMA MIAMI p,r►ISIOM CASK X0 02- 2564- CI'V ^MORBNO MAGISTRATE JVDGE DUKE Plaintiff , CITY OF SOLYM MIAMI, 9WRIM a nor3da Muai.cipal Corporation, Defend=t . ,....L i Mode-me 13M 4 w .� c, �'ia� � "i:�.. • �� ode. /eta 1E� ptF•s- �r� -s.5:� ,:.�•f� �r -'csv, 2�: /�d�a �"� lP� Plai of / f a'tit L a P] ainti.f ' s Eam—i4m—1 _ De f an.. nt s Counsel r pisRSick, v. City o£ South Mi"i �.p.C. cage VQ; 01- 2694- CIV-HO Eii6 bWX -• :ire FRI., �._�1^.,`f -• Ming Defenda►n alnt fv 8 ..countsel BATS •.� 0 f. D�fendaa�' � C4LtTiB@ - , - f ': }; s...ei :y.: r.:w�„ +,�.�r' w!K sir+•' +5`t_ - "gL"1' ck. V. aty of soutit Miami - .s.ss.C. Gaol Not 0-2- 2S64- CIV- NdRM/Lr M g;df tlOn Agrcanent. 'cmt'Q. f} , p4 edlp Pl.aanti f , Defeztc3ant P s i tzt�.E ;a Cc=se D erir3arit' 6 Counsel its' �x' :: ei:i�? {Y'i' °. =.tom•. - - .. - a s� -13608,mr2riek. V. City oS,South Y4a-i V.9.D.C. Come Vag 02- 2364- CIV- WR$l76/1M MWINIA-1 B.-I PlaiYit�.ff. a t f ` S COunsq �•••• DATE.Q D e darn 9 GC►mse .ci[3 I • GABRIEL. ROIEDEM SMITH &. COMPANY Consultants & Actuaries _ . 301 East Las Ochs Shod.* 5utte 204 * Ft. Lauderdale, FE. 33301 -2254 * 954.527.161 B * FAX 95 - 525.0083 September 16, 2003 Pension Board South Miami. Pension Plan c/o Ms. Haydee Lopez Benefits USA, Inc. 3810 Invercary BIvc1., Suite 208 Lauderhill, FL 33319 Re: Usea Merrick (264 -31-1:345) Dear Haydee: As requested, please find enclosed three (3) copies of our Calcmlation of Deferred. Vested Retirement income due Ms. Lisea Merrick based upon . information provided by the City of South Miami, the terms of the Usea Mernek Mediation Agreement and the terms of the South Miami Pension Plan based upon E€ termination date of June 4, 2002. we understand the Plan Attorney is- world ag with the- City to resolve matters related to paying this- benefit. If you should have questions concerning this matter or if we may be of fwther assistance, please do not hesitate to contact us. Sincerest regards, ... U Lawrence Wilson, A.S.A. Senior Consultant and Actuary Enclosures cc: Ms. Jeanette Enrizo- Navarno Kenneth R. Harrison, Sr., Esq. Mr. Hareem K. Oshikoya; C.P.A. -° 200 ;4 . CITY OF SOUK MIAMI - LISEA MERRICK MEDIATION AGREEMENT Calculation of Deferred Vested Retirement Income 1. Name 2. Social Security number, 3. Date of birth 4. Date of employment 5. Date of termination 6. Normal retirement date 7. Age as of August 1, 2020 8, Credited Service as of date of termination (per Mediation Agreement) 9. Accumulated employee eodn''butions as of date of termination 10. Final average monthly compensation as of date oftm7ninatian Earnable F*aleaear Compensation 10/0112001- 06/04/2002 S 53,162.00 10 /01/2000 - 09/30/2001 56,310.80 10/01/1999 - 09/30/2000 69,370.60 06/05/1999 - 09/30/1999 19,442.26 - $ 198,225.66. 11. Monthly accrued benefit as of date of termination a. $5,566.27 x 1.60% (0.0160) x 1.333 years $ 117.44 b. $5,506.27 x 1.80% (0.0180) x 1.000 year 99.11 c. $5,506.27 x 1.900/a (0.0190) x 1.000 year 104.62 d. $5,50627 x 2.25% (0.0225) x 1.000 year 12189 e, $5,506.27 x ISO% (0.0250) x 1.000 year 137.66 f $5,50627 x 2.75% (0.0275) x 4.000 years 605..69 9. $5,506.27 x 2.80 ° /o (0.02$0) x 0.667 years _ 102„84 I Stun of a. through g. GASR1EI. ROEDWL Sl I"m & COMPANY Lisea Merrick 264-31 -1345 July 25, 1960 Septetjaber29,1995 June 4, 2002 August 1, 2020 60.000 years 10.000 years $ 19,2,24.34 $ 5,506.27 $ 1,2$1.25 • +^ •fin . RESOLUTION NO. 77-U2-11426 A RIESOLUTION OF THE MAYOR AND CrrY COMMISSION OF THE CITY OF SOUTH MIAML FLORIDA, RELATING TO CONTRACTS; APPROMNG A SETTLEMENT AGREEMENT WITH LISEA MIERRICK; PROVIDING AN EFFECTIVE DATE.. WHEREAS, the Mayor and City Commission of the City of South Miami empowered to settle claims and to approve settlement agreements; and, WHEREAS, Lisea Merrick has filed EEOC claims- and a. federal discrhui nation. lawsuit, styled Merrick v. Ciry of Sourfi Miami, Case No. 02 -2564 (S.D. Fla. 2002), against the city; auhd, V44E.REAS, Merrick has agreed to a settlement agreement and the Mayor and City Commission desire to approve -rhe agreement. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA; Secdon I_ The settleme, t agreement between Lisea Merrick and the City of South'Miami, a copy of ch is attached to this resolution, is approved. The City Manager, or his desiVil., is directed to take the administrative actions required by the City to satisfy the terms of the agreement. Section 2. This resolution,shall rake effect immediately upon approval. PASSED ,1A.N'D ADOPTED this 4th day of June, 2002.. ATTEST: CITY CLERK- READ' AND APPROVED AS TO FORM: ` CITY ATTORNEY APPROVED: MAYOR COMMISSION VOTE: Mayor Robaina: Vice Mayor Russell: Commissioner Wiscombe: Commissioner Bethel: Comiissioner Felfi: Additions shown 'by Ei r ininz and deletions sho%m by o%ersuik{fw, 4 Y ' out of room Y �.X Cite mith Miami. 6130 Sunset Dom, South 1++i9ami, Flo,ida 33143 Please reply To. 3225 Avi9t w Avenw, Third floor Mimi. Florida 33133 ' (305)854 -5353 -- (305) 854- 5351(fox) z June 14, 2002. Ms. Susan Diaz, Investigator j Equal Employment Opportunity Co=ission . Nfiarni District O#ii"ao One Biscayne Tower, Suite 2 700 2 SouthMiscayne Blvd- Miami, Florida 33131 Re: Merrick v. City of South Nfiaini EEOC Charge Number: I SOA200160 . .Dear Ms. DID= Enclosed .please find a coT►y of a settlement agreement between Ms. Merrick and the City of South Miami. A,ceording'to the terms of the settlemont -agreement, Ms. Merrick has•-asmed to withdraw any and'all pending EEOC charges that she may have ` filed against'the City As such, the City asks that this information be taken under adviseriient and pursuant to the execntad agreenzem have tlic above referenced charging documEent dismissed. Thank you. Very truly yours,.. 1 Eve A. Boutsis, . Of ee of the City Attorney, Earl -G. Gallop fxc_ Ms. Jeanne Navarro,.14wnan Resources.Mmgger Cpt. fierce Ross; South Miami Polim Dept. 'cc: John Parsons. Esq. "City of 1Pleasw t i.iirirxl" Robert A. Sugarman t Howard S. Sussklnd Dc Md E. Robinson Kenneth R. Harrison, Sr. D. Marcus Braswell. Jr_ George S. Aude Charles A. Gibson ♦ Hoard CerI led tabor ,& Employment Lawyer SUGARMAN & SUSSKIND PROPESSION'AL ASSOCIATION ATTORNEYS AT LAW January 29, 2003 Board. of Trustees - City of South Miami. Pension Plans clo Jeannette En izo- 14avairo, Human Resources Manager City of South Miami. 6134 Sunset Drive South Miami, Florida 33143 Re: LiseaMerrickSetdlement Agreement Dear Trustees: 2801 Ponce De Leon Boulevard Suite 750 Coral Gables, Florida 33134 {305) 529 -2801 Broward 327 -2878 Toll Free 14W- 329 -2172 Facsimle (305) 447 -8115 As you requested, we have reviewed the Agreement entered into between the City and Lisea Merrick a former police officer, which settled a federal court lawsuit which she brought against the city. We have also revaewad City�Kmlution No. 77 -02 -11426 which approved the settlement agreement and the provisions of Chapter 16, Article R of the South Marni Code which establish and govern the South Miami, Pension Plan, of which Ms. Merrick was a participant. We understand that Ms. Merrick had completed 74 months of service in the city pension plan. We also understand that Section 2 of the Agreement states that the city will "provide for the vesting of Plain fis [Merrick's] pension and further agrees to make any monetary contributions for the vesting of the pension up to the 10 year point. Plaintiff recognizes that this is not the usual practice of the city." According to our understanding of the settlement agreement, the city agreed to provide an additional 46 months of credited service., to Ms. Merrick (the difference between the 74 months of service which she earned as a result of her cite employment and the 10 years, or 120 months, promised to her in the Agreement) Board of Trustees City of South Mami Pension Funds c!o Jeannette Enrizo Navarro, Human Resources Manager City of South Miami January 29, 2003 Page 2 In our opinion, the city cannot provide this benefit to Ms. Merrick from the South Mani Pension Plan. There is no provision in the South Mami Pension Plan for granting credited service to employees for time not actually won:ked for the City of South Mani, evert if the value of this credited service is fiflly paid to the pension plan by the city. Further, the pension plan cannot be amended to provide for the purchase of non - worked credited service for police officers because the provisions of Chapter 185, Florida Statutes, which govern Florida municipal police pensions, only permit credited service it be granted for actual service as a municipal police officer, prior military services or prior law enforcement service. Therefore, under the provisions of both the South Miami Pension Plan and Chapter 185, Florida Statutes, there is no way that the pension plan can provide the additional 46 months of credited service to Ms. Merrick, even if the city folly paid for this added "service." ,According to the Agreement, Ms. Merrick resigned on June 5, 2002. We understand that at the time of her resignation, she had approxuaately 74 months of service and therefore had not worked the ten years necessary to vest in the pension plan or be eligible for a normal retirement benefit upon reaching age 60. As a terminated unvested employee, her only benefit entitlement from the South Miami Plan is a return of the employee contributions which she made to the plan while employed by the city. We therefore recommend to the trustees that should the city tender payment for additional credited service for Ms. Merrick, the payment be refused by the Board of Trustees and returned to the city. We also recommend, that, upon her application, her ammmulated employee contributions be returned to Lima. Merrick. If the city wishes to implement the int mt of its agreement by providing Lisea Merrick with a 10 year pension upon her reaching age 60, there are at least two ways that the city can do this. 1. While the city cannot grant Ms. Merrick additional credited service, for the reasons explained above, the city can lower the vesting requirement to. the 74 months she actually worked W increase the benefit multiplier rate to produce a monthly benefrt, payable upon her reaching normal retirement ages which will equal the amount that she would have received had she earned 10 years of credited service. However„ due to the non - discrimination provisions of Chapter 185, Florida Statutes, the city would have to make this lowered vesting schedule and higher benefit rate available to all of the other police officers. While this could be limited to those police officers who left the city's service on June 5, 2402, an opportunity to vest and - receive a pension would have to be offered retroactively to all offiicers who had at least 74 months of service as of June 2402. Because this would be a very expensive and lucrative benefit and that a number of offims would likely take advzotage of it to leave the city and vest this substantially increased pension, this method. is not at all practical Board of Trustees City of South Miami Pension Funds c/o Jeannette Enrizo Navarro, Human Resources Manager City of South Miami January 29, 2003 Page 3 2. The city can amend its agreement with Ms. Merrick to provide an equivalent benefit outside of the South Miami Pension Plan. The city could determine from the Pension Plan's actuary the exact monthly lifetime benefit which Ms. Merrick would receive at age 60 if she had earned 10 years of credited service. The city could then purchase an annuity from an insurance company which would pay and guarantee this benefit to Ms. Merrick. . The city could also agree that Ms. Merrick would contribute her return of employee contributions from the Pension Plan towards the purchase of this annuity. Since Ms. Merrick would be withdrawing her contributions from. the plan, the city contributions. which were made on her behalf during her - career would remain with the plan; cause an actuarial gain, and ultimately cause ac reduction in the city's firture contributions to the plan. We will be glad to assist the city in implementing either one of these other arrangements: However, the arrangement set forth in the settlement agreement which grants Ms. Merrick an additional. 46 months of service for time not worked cannot lawfully be implemented. Yours truly, ,j I� 4- I� ROBERT A SUGARA AN RAS/ld cc: Captain Bruce H. Ross, Chairman. ONicer Eric Fulton, Chairman Earl Gallup, City Attorney Q:14S�F1t? PDT} 1dPiN- ListaMafickSelt3�rne ,�tAgmd- LtTrnztxs .._viTED STATES DISTRICT COUnt• SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION CASE NO:02- 2564- CIV- MOR.ENO MAGISTRATE JUDGE DUBE LISEA MERRICK, Plaintiff, VS. CITY OF SOUTH MIAMI, FLORIDA a Florida Municipal Corporation, Defendant. AGREEMENT _/ - -Ic t/ti I Y Plai if f & fendant Plaintiff's Counsel Defendant's Counsel DATE w h3 r� C-13 n [) Linea Merrick, v. City of Uami U.S.D.C. Case No: 02- 2564- CL%r= r+vRMO /DUBS Mediation Agreement, cotta. Ac CA, r? A-1, Plaintiff Plaintiff's Counsel DATE res,�r S 5 / V3- + De f enchant Defendant's Counsel. Linea Merrick, v. City of iami U.S.D.C. Case No: 02- 2564- CIV- MdRENO /=MB Mediation Agreement, cont'd. 7 c.P t�L QC r "-per 5 "' ate` e is i'j f C �Y1c a. I: FL 0 Ar- VL e:3r r Zr, 4 tp-, Y V/Le ti V / Plaintiff Defendant Plaintiff's Counsel Defendant's Counsel DATE Liz&& Merrick, V. City of Ami U.S.D.d. -Case NO; 02-2564-CIV-MORENO/DME Plaintiff la ntiffIs Counsel A3. DATE try �14__ GA 3RIEt., ROEDEFt, SMrrH & COMPANY Consuitawts & Actuaries _ - 301 East Las 01w PM. • Suite 200 • Ft. Lauderdale. FL 33301.2254.954-527.1618 • FAX 054 -525 -0083 September 16, 2003 Pension Board South Miami Pension Plan C/6 Ms.1wee Lopez Benefits USA, Inc. 3810 Inverrary Blvd., Suite 208 Lauderrbill, FL 33319 Res . Uses, MetrAck (264 -31 -1345) Dear Haydee: As requested, please find enclosed three (3) copies of our Calculation of Deferred Vested Retirement Income due Ms. Usea Merrick bused upon information provided by the City of South Miami, the terms of the Lisca Merrick Mediation Agreement and the terms of the South Miami Pension Plan based upon a txvninati.on date of June 4, 2002. - We understand the Plan. Attorney is working with the City to resolve matters related to Paying this - benefit. if you should have questions concerning this matter or if we may be of fin Cher assistance, please do not hesitate to contact -us. Sincerest regards, Lawrence Wilson, A.S.A. Senior Consultant and Actuary Enclosures cc: Ms. Jeanette Fnxizo- Navarro Kenneth R. Harrison, Sr., Esq. Mr. Hakeem. K. Oshikoya; C.P.A. �. o. 2M I CITY OF SOUTH M14AH - LMA MERRICK MEDIATION AGREEMENT Calcu�latton of Deferred Vested Retinwywt income 1. Name Usea 1trlerrick 2. Social Security number 264-31 -1345 3_ Date of birth July 25, 1960 4. Date o €employment September 29, 1995 5. Date of texaninaiion June 4, 2002 6. Normal retirement date August 1, 2020 7. Age as of August 1, 2020 60.000 years 8. Credited Service as of date of termination (per Mediafim Agreement) 10.000 years 9. Accumulated employee contributions as of date of termination $ 19,224.34 10. Find average monthly compensation as of state of termination $ 5,506.27 Eamable b'iscaL ear CgMensation 10/01/2001 - 06/04/2002 $ 53,102.00 10101/2000 - 0913=001 56,310.80 10/0111999 - 09130/2000 69,370.60 06/05/1999 - 09/30/1999 19,442.26 $ 198,225.66. 11. Monthly aged benefit as of date of termination a. $5,566.27 x 1.60% (0.0160) x 1.333 years $ 117.44 b. $5,506.27 x 1.80% (0.0180) x 1.000 year 99.11 c. $5,506.27 x 1.90% (0.0190) x 1.000 year 104.62 d. $5,506.27 x 125% (0.0225) x 1.000 year 123.89 e, $5,50627 x 2.500/a (0.0250) x 1.000 year 137.66 £ $5,50627 x 2.754/o(0-0275) x 4.000 years 605.69 g. $5,506.27 x 2.80' /o (0.02$0) x 0.667 years _ 102.84 h. Sum of a. through g. $ 1,241.25 GABRIEI. ROEDER, SIM11H & COMPANY RESOLUTION NO. 77 -02 -11426 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUT14 MIAMI. FLORIDA, RELA'T1NCr TO CONTRACTS; APPROVDIG A SETTLEMENT AGREEMENT WITH LiSEA MERR.ICK; PROVIDING All EFFECTIVE BATE. WHEREAS, the Mayor acrd City Commission of the City of South Miami -e empowered to settle claims and to approve settlement the and, WHEREAS, Lisea Merrick has filed EEOC claims, and a federal discrimination. lawsuit, styled Merrick v, C ' ry of Souib Miami, Case No. 02 -2564 (S.D. Fla. 2002), against the city; arid, ' .WHEREAS, Merrick has agreed to a settlement agreement and the Mayor and City Commission desire to appLova the agreement. . NOW THEREFORE BE IT RESOLVED B'y THE MAYOR AND CITY COMMISSION Of THE CUY OF S011T14 MIAMI, FLORIDA; Section 1. The settieme, t agreemnrnt between Lisea Merrick and the City of South'Miami, 4 copy of -ch is attached to this resolution, is approved. The City Manager, or his desi� is directed to take the administrative actions required by the City to satisfy the texnns of the agreement. Secdon.1 This resolution . shall take offcct immediately upon approv,t. PASSED AND ADOPTED this 4th day of June, 2002. ATTEST: CITY CLERK READ AND APPROVED A.S TO F'OR.M' l ,G �40A- CITY ATTORNEY APPROVED: MAYOR COMMISSION VOTE:. Mayor Robaina: ' Vice Mayor Russell: Commissioner Wiscotmhe: Commissioner Bethel: Commissioner Feliu: Additions shown by yndie� ditiin g and dekdons -slwsn by ever . 4 y . out, of room Y .Y YITED STATE'S DISTRICT CG SOUTHERN DlSTRICT.OF FLORIDA MIAMI DIVISION CASE NO:02- 2564- CIV- MORENO LISEA MERRICIC MAGISTRATE JUDGE DUBE , Plaintiff, Vs. CITY OF SOUTH MIAMI, FLORIDA a Florida Municipal. Corporation, Defendant. Lff REPORT OF MEDIATION A mediation conference was held on May 23, 2002 for the above referenced matter". Mediator, KAREN EVANS, conducted the proceedings. All parties were present as indicated by their signatures below. There was an impasse. —A -partial agreement was reached. A complete agreement was reached. The mediation was continued. Date: Plaintiff a ' tiff's Counsel DATE --