Loading...
11-27-07 Revised Item 6aj South Miami *America ft 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 pager 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 $120,000.00. Backup Documentation: 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 , 2007. APPROVED: MAYOR COMMISSION VOTE: Mayor Feliu: Vice Mayor Wiscombe: Commissioner Palmer: Commissioner Birts:, Commissioner Beckman: AIG�U�g 9-- AEG 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 (7103) APP AIG Life insurance Company By: Signature _Stephen J. Brenneman Name Vice President Title AGM 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 S, 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. Secretary 11ODGAN905 (FL) GROUP ANNUITY POLICY NON- PARTICIPATING President 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 Form. 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 !-folder 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) 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 C'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 Owner's 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 to the Certificate Owner beginning on the Annuity Date, in accordance with the Type of Annuity selected on the Enrollment Form. 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 NOM- ALIENATION 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 Annuity 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. 110DGAN905 (FL) 5 Ams IG� F 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 BIRTIT: STATE OF ISSUE: PAYMENT START DATE: SOURCE OF FUNDS: COMMISSION: PAYOUT OPTION Single Life Only Presented by: Agent: Email: Phone: Fax: CITY OF SOUTH MIAMI LISSEA MERRICK Female 47 July 25, 1460 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 Life "). 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 responsibility 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. Att1 American veneral 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 44.E - 017,6 3 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 information, #2) Individual❑ Partnership❑ Corporation❑ Trust❑ Plan Sponsor❑ Other" ^r_� f Gender: ❑ Male ❑ Female Date of Birth* (MauooNyYyY ) :___ Name (FIRST, MI. LAST): Mr/MrsfMs Address (STREET): 61-? C' .S ✓.�%lE^f,2r 1i� Syr•f �i /�rv,.V; G /l+l/.a�a3 (CnY1STATElZIP Telephone Number; 3( p ) (a6 g �t S� SSNITAX ID: s`t — 6 dap V9'1' If Owner/Annuitant/Payee is a person and neither a U.S. citizen nor U.S. resident, explain residency and citizenship under "Special Requests'; #4. + ( Nate: applicable taxable income information will be reported for SSNITAX 10 of primary Owner #t above) ❑ Spouse ❑ Other Gender. ❑ Male ❑ Female Date of Birth* (mwDDm'YY): Name (FIRST, MI, LAST): Mr /Mrs/Ms Address (STREET): (CITYISTATErZIP) Telephone Number (_) SSNf TAX ID: % (Complete if Owner and Annuitant are different) Gender. O Male Cd'Female Name {FIRST, MI, LAST): MrlMt �SGfa i✓%E�J; I G ,i; Date of Birth* (MMiowyyy): Address (STREET): (CITYisTATEmP) Telephone Number. (�j SSNITAXID: r+ 0 Spouse Q Other Gender. ❑ Male ❑ Female Name (FIRST, MI, LAST): MrfMrslMS Date of Birth* (mmoomw): Address (STREET): (CITYISTATEOP) Telephone Number. _{ 1 SSNITAX ID: 1 IIIIAN111114 r ( tfmore than one Beneficiary, proceeds vnA be divided equally unless otherwise indsated) Name Address: SSNrrax ID: Relationship to Annuitant: Name Address: SSN/Tax ID: Relationship to Annuitant: If more than 2 Beneficiaries, list on a separate sheet signed by the Owner and check this box ❑ E I I . yr aytt w requrreu rvr airy r.rrerrme income Yayc Option 16ODGAN905 1 r{3 Premium Payment: $ �D2i 6 (Estimated if 1035 Exchange/Trustee Transfer) Type: ❑ § 1035 ExchangelTrustee Transfer (complete "Compenyr' transfer form) LT Check Attached 11 Me Transfer Source: ❑ Nonqualified ❑ Employer Plans (plan typetname) ❑ Other PAYOUT OPTIONS: 9 SINGLE LIFE G Lfetime 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 °I° (50 0%, 66 213 %q 75% or l00%) 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 Annual Increase of % Payment Mode (frequency): 0406thty ❑ Quarterly ❑ Semi- Annually ❑ Annually ❑ Other Income Start Date: 'VIII be one modal period from the date premium is received unless stated here.(MM/DDNYYY) :—ffl—J —/L—Z!!0—Z-0 I understand that no further income payments will be made and this annuity will terminate at the death of all Annuitants fisted in #2 (and #2A, if applicable) (Owner's Initials) Ell i , EM fl 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 if 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. Fe ,ral Tax Withholding: Do Not withhold Federal Income Tax ❑ Do withhold Federal Income Tax based on this information: Allowances Marital Status State-Tax Withholding frfafl�licable C,)a Not withhold State Income Tax ❑ Do withhold State Income Tax: Amount $ or % Or Calculate for me using Allowances and Marital Status r ❑ Checking (attach voided check) ❑ Savings (attach preprinted depos# slip) Account Number: Name on Account: Name of Institution: ABA Routing/Transit 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 2 Tote bestof your knowledge, is this itisrrance bring purchased to replace or charge any adsfng insures or arnre . 0 Yes a No THE UNDERSIGNED OWNER(S) UNDERSTAND fiat acceptance by the Company of M application results i7 an erudlment as a partiapant under the Croup Policy referred to above. The Undersigned Oearer(s) mil be bound by the proveions and entfed to the benefits of the Certificate. On behalf of the Undersigned Owners) and any person who may dam any interest resulting from the Undersigned Ovmer(s) enrokr>ent under the Group Policy, tine Undersigned Omer(s) represent that al staiarnents set bt above are full, complete and he as written and correctly WXW to to hest of fire Undersigned Owner(s) knowledge. Ail stafenents by or on behalf of the annuhant(s) shall be deemed to be representations and rdwarar&s. Under penalties of pedury, ) certify: (i) that the Social Security Number (SSN) or taxpayer identification number is correct as it appears on the application; and (2) that I 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). FPAUD 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 Virginia Fraud Wamina: 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 Signature Joint Owner's Signature (if applicable) Date 16ODGAN905 Robert A. Sugarman 4- Howard S. Sussklnd David E. Robinson Kermath R. Harrison, Sr. D. Marcus Brvswelt, Jr. George S. Aude Charles A. Gibson a Board Cerfified Labor & Employment Lawyer PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW January 29, 2003 Board of Trustees City of South 1 � Pension Plans c% Jeannette E rizo- Navarro, Human Resources M'aniager City of South M.1ahli - 6130 Sunset Drive South Miami, Florida 33143 Re: LiseaMerrick&ttlementAgreemerd Dear Trustees: 28D1 Ponce De Leon BouleVarc Sine 75C Coral Gables, Hadda 33134 (3D5) 52? -2801 Broward 327-2878 Tot Free 1-800- 329 -2122 Facsimile {305} 447 -8115 As you requested, we have reviewed the Agreement entered into between the City and Lisea Merrick, a farmer police officer, which settled a federal court lawsuit which she brought against the city. We have also reviewed City_Resolution No. 77 -02 -11426 which approved the se iiement agreement and the provisions of Chapter 16, Article II of the South Miarni 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 PlaintiTs PMerricVs] 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 th6 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 city employment and the 10 years, or 120 months, promised to her in the Agreement.) Board of Trustees City of South Miami Pension Funds clo Jeannette Enrizo- Navarro, Human Resources Manager City of South 1VFami January 29, 2003 Page 2 In our opinion, the city cannot provide this benefit to Ms. Merrick from the South Miami Pension Plan. There is no provision in the South Mami Pension Plan for granting credited service to employees for time not actually worked for the City of South Aunt, even 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 to be granted for actual service as a municipal police officer, prior military service, or prior law enforcement service. Therefore, under the provisions of both the South Ndiami Pension Plan and Chapter 185, Florida. Statutes, there is no way that the pension plan can provide the additional 45 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, 2002. 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 unvested employee, her only benefit entitlement from the South Miami Plan is a return of the employee contibutions 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 ac rmulated employee contributions be returned to Lisea. Merrick. If the city wishes to implement the intent 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. Derrick additional credited service, for the reasons explained 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 norms]. 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 195, Florida Statutes, the city would have to make this Iowered vesting schedule and nigher 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 officers who had at least 74 months of service as of June 2002. Because this would be a. very .expensive and lucrative benefit and that a number of officers would lkely take advantage of it to leave the city and vest this substantially increased pension, this method is not at alt practical. Board of Trustees Uty of South 1Vfiami Pension Funds c% l!eannette 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 Maori 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 14s. Merrier. 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 a4 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, s � RAS/Id cc: Captain Bruce H Ross, Chairman Officer Eric Fulton, Chairman Earl Gallup, City Attomey _v.LTED STATES DISTRICT COD--,f SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION CASE NO:42- 2564- CIV- MORENO M7LGISTRATE JUDGE DUBE LISEA MERRICK, Plaintiff, Vs. CITY OF SOUTH MIAMI, FLORIDA a Florida Municipal Corporation, Defendant. AGREEMENT 1�e r 117 0 C-) !ClhY'f ��� �L*��S..x.•c- :w% /!f %C.�lrlC.(C � ��G -� C3�'k.L L.t..t -C� PIai t i ff endant Plaintiff's Counsel Defendant's Counsel DATE Lisea Merrick, v_ City of 7iami D.S.D.C. Case No: 02- 2564- C.LV- mORENO /DUBE Mediation Agreement, cont'd, J, r '[l •_/� } / r C .C. �� s'L � /"C7" F � {e t' �' S / � fir c �'r V / fit._.: i� 'N.�/ ..Q CD T e�i Fj''/ 9 2 2[ t tJ4 i Plaintiff Defendant Plaintiff's Counsel DATE ,e2 Defendant's Counsel _4r_ � Lisea Merrick, V. City o€ .iami U.S.D.C. Case No: 02- 2564- CZV- MORENo /DUEL- Mediation Agreement, Cont'd. f� f re l i b� Gc c, D� i r r .--z^" 5 r r A Plaintiff Defendant Plaintiff's Counsel Defendant's Counsel DATE n1 Lisea M-- rrick, v. City Of ami U.S.D.C.-Case No: D2- 2564- CZV- M0REN0/DUSE q ml 0 r, M Plaint. €f. la ntiff's Counsel MAC /.,11-1 , / Z-ei YITED STATES DISTRICT CG SOUTHERN DISTRICT.OF FLORIDA MIAMI DIVISION CASE NO:02- 2564- CIV- MORENO MERRILY, LISEA. MAGISTRATE JUDGE DUPE Plaintiff, VS. CITY OF SOUTH MIAMI, FLORIDA. a Florida Municipal Corporation, Defendant. V. 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 &R,,o� DATE— Mediator ATTOIEy_CLIENT pRj-VIL.EGE EXEMPT FROM PUBLIC RECQRDS DISCLO SURE To: Mayor and Ci ty, Col-p-, n. Charles S Date: Ma cwT, City Manager y 30, 2002 - Frain: Earl G. Gallop, City Attorney .Re: Settlement ofMerric k V. C.SM I am pleased to advise that we settled they v. CSM f EEO claims on to federal lawsuit and related will recall that Ofcr Merrick fiIded Homer@ we believe are very favorable to the city. you discrimination lawsuit against the ci us EEOC complaints and a federal civil rights judgment in favor of the ci tY, the federal district court entered summary affairs investi atio 'and Oon Merrick appealed the order. final g n, a pre- teation hearing n a related internal action by the city manager is penclin g has been conducted and for came. Ms. Melana has thendi ed it file t on could include to final disciplinary further civil actionae $, employment The city's objectives in .zilediation were to obtain flf dismissal °f clam and a promise not to sue the City We believe that her objective was t cr. Merrick's resignation, ty in the firhire, at the least cost to the coty� the FL,C paid former Ofc t o receive payment of an rhubblIahl. At th&conclusion ofinediatzo eater than the $100,000 to settle upon the terms and conditions contained in the a Poriit provisions are n, C?fcr: Merrick agreed that she will resign, attached agreement. The most set for public hearing gn, effective at the end Of June 4, 2002 (the date and action on the a employment benefits to agreement l tYie city commission} that date to which all employees are entitled (i.e.,syaw wi' "wive comp time and apoi -tion of sick leave ,pears worth ovestin ), the city will pay approximatel _ g under retirement plans with rior government 8,000 fully vested rights udder the ci 's P g rnment ein -�lt3' _ pension I �P Oyer accrued sick •leave rather ' I plan, will receive a at�aijje! than 25/0, which is worth about $1,800, theecit�C ys` $3 0, QQO, `she w`ill� swiss the current lawsuit and EEOC claims r further cairiplailifis� or legal actions against the city', and she will never casts to be a Y We estimated the time value of the attorneys 1 PProximateIy x;61,000. Under the agreement, Ofcr. Merrick �. direct Payments from the city, Memo to: Mayor and City Commission ATTORNEY- CLIE?~iT PRiViLEGE Charles D. Scurr, City Manager EXEMPT FROM PUBLIC RECORDS May 30, 2802 DISCLOSURE Page 2 of 2 The fiscal impact on the city is limited to the approximately t 8,004 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 lean has paid all of the defense attorney's fees and 75% of our fees incurs e. The FLC the lawsuit and the EEOC claims. It will pay all of the $30,000 to. be d 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 will, incur that amount in payment of retirement favorable to the city. benefts' and 1111- rei- mbursed fees and costs. This position by the FLC is very liberal and 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 ersan Additionally, we were concerned about the legacy of the Jhubollahl settlement The P C settled the claim without our participation or approval. The amount of the settlement sent a message to all police of that they could file an EEQC claim and get a great settlement,. one worth more than their annual salary;. Such a message encouraged others claims and lawsuits against the ci to file EEQG not pay a substantial am ©unt merely to settle troublesome Iiti� abrent message: the city, will will not receive any direct payment from the city arsd her attorneys willnbe pat "d far I�ss than the tune value of their hours. Please maintain the confidentiality of this comusucation. _ "TED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA , MIAMI DIVrSIO_V CASE N0:02- 2564- Clv- MOR LISEA. MERRICK, MAGISTRATE JUDGE D17BE EAId Pl Va. alntIrf, CITY OySOUTx MIAMI, PLORIDA a Florida Municipal Cprpora.ion, Defendant. AGREEME T �—J �' I rr' ve C ��- F� L. S lit SG! Plai if - S wt, 7 ,�• �� t` r� i�ezendant e` Plai.ntiTf, g Counsel . _y. Defendant's COun —sej DATE Lisea Merrick., v. City of Sot Miami ti.S_D.C. Case Not D2- 2564- CiV- MDRENO /D1}SE Madiation Agreement, cont'd. v r r 13 f� a CUC_.- k cR+t .Plaintiff Defendant Plaintiff's Counsel DATE Defendant's Counsel fr,!� LiSea Merrick, v. City of Sc ami U. S.+7. C. Case No: 02- 2564 - CXV— MDRVgO /DLP3R Mediation Agreement,_cont'd. � E f ►- maciV?L tom' S_s l��(% jo r -. r �f m7 �7� -�,r ►+'L' .�� OP Ah C- Z2 16, �+ r � Z Plaintiff - -- - Defendant Plaintiff's Counsel Defendant' s Counsel DATE ,f 11 Linea Marrick, v. City of south U. S.D.C. Case : - MOP.ENO /DUNE eL ( a Plaintif = y'Ia*ntiff's Counsel Lll�v OrFIC'FS gf�Vi"3.. �'ri_y � ,- s> 36T�i1[Sf3N, ANEXI;MO, MURDoca, BURICE & Gton.GE, P.A. • Ait�tgP�,IQHR1R35tfC7ATLCW .. AtEMCGR ttta[k 1OHFe3#i� T.BLV;nm• ru0EBROiAFAR6[LW SLIt1G�u0, a1CiOW1+.YGfxw.PA• trlf0[fiZ[1d61N- DLtIC,NABl.PJ4 F[SRYtAi[CERO7�[ FC.IS3AI FtcamT ti musmCCR _ cQLYNA.W.M M7CHAEtR PTO C+J1 wimp. GOO= G 4Dirit�: WMLM F- (3 {G(N A Om p— rim PM DFM E[O1ta7i zm - DAM hE SC NYIMER JO *REV G HL7PlLl W. �A PORT L1JlMWM E. n_ 3=4M GtMMTOPFM L. S WTH • (�Stla�pmu peaf+rsnf �wek es�nRtt - sts JaOD - O pwyawtuwveae t01184 G- 7+R -Pon ma wk • May 28.202 leis. hc.�t . FI of Cities . 12:E]. x 535135 dot FL 32853 -8125 . Re: T isca Manick v. City o£Soutlx i&ami, Florida; U.S. District Cottt#, Southern District. Miami Division - _ Case No. 00-25 - moreno r our File. 540/20203 Dear Ms. Calzcn(: ' FAelos6df yourinf armaliorLandreviewis acogyaMeAgx=cntmachedatmediati= held % orL Macy 23, 2002. Siustsld you have any ques ons, pteasa cotstact one at your wmveuienm . lately yours ' Rimatd`K Mr -DuIr For the Firm :e cc: ari G. Civap, Esq- Ms. Rcnetta Taylor. , �srsitisttrc . • . 0 tMITE STATES-r)TS C'E" CbUR' ' 7 SOUT DISTRICT flF FLORIDA ;' MiAMZ DIVISION ` Q3S NO:02- 2564-- CIV- T40RENO �y MAOISTi4hT S[JtyC�E DUES LISE'A MzRRtCK, Plainti.ft, VS. CITY- OF . 90tr H MIAMI, 'FLORIDA a Florida Aurii.cipal Corporation, Defendant. "l5�CO$T OF ��jI�Y7e� yt 17_4Lilii �Q.v . •A mediation confer nce was hold. on May 23'1 2002 for the above referenced mattee. Med±ator, KARIM ice, conducted the proceedings. - All pa%ties were present as indicated by their signatures below: There eras ari impasse.. A partfal agreement was reacixed_ - . A "complete agreement was reached. The mediation was co t::niiad.' Fate Plai.rxtiff- �- * • a' L3�•�,�'s�yyC�cvnsel i �• � d FA�'b+N•.9 d UNITED STATES 1 ISiF.X.- C . .. :(j Di:- )pe:J)^l"• �";,,t�." _ S}]im mu DISTRICT Ov FLORIDA My Ml YiVYViLi CASE i402- 2564—C17-MOR' W- O - r r4AGTSTRATE JODGE DTME LISEA mnPArm, pia3x�tif f . vim. - CITY OF• SOUTfi KL MI, FWRIDA •a norlda Municipal Coxporation, Dafandant _ EWA Pai IPA Mal i tiff. 6 COunse N TF Kerr'. lDb en ant Deice a-at, S counsel �s rkrrick. V. City at wrath WAVIi • ,.S -p.C. Care NO; 02- 256 ;- CYV�MbR8 f3fb'iS3E "ZoLatim igreCteat.- cmm d. ksj r [scams: t� n 6 J, -GP-701 rA r 5 S f PMEEll f Defendant •" P axnt�..f�•• s ; counr�:i Dmfendant r e Courses - 4 . . DATE 4.1 CA "07Cr:E6k. Uty of South Miami _ ... •' .. -_ -.. - _ Cast Not a�- xs6�- fitV- NdF�/Atfss - Tsetifatiaa► pgre�t. •em�t'6. • / C 61i - -i J ...I4 t ! A. 07. . ,{�� -�• !'' '"L �"'''`'�' `lf mfr . Plaints. P De�enc3ant xst"I s Ccurise Defendant's Counsel nATS P - Vuub "Mdwrirk. T. Wy of "go sth V441 "s v.9.b.G. Casa #zero 0Z•2S64- clv- mrjwO/ xeazjtfqm xtt. corn.'d. w v, �, t" .J`f..:5.,'i;,.ive_e'A'� =��:�•` '�•e � �%' - ..... E, -1 s'm ?.'4.'�c #;•:.'>; -. .. . _ t� - r Plairita.ff. a' of 's corn. 5e ..,,. .�_... 1 De, e7? 8Sr, `S CGSLmse i t Plairita.ff. a' of 's corn. 5e ..,,. .�_... 1 De, e7? 8Sr, `S CGSLmse i GABRIEL. FROF -DEk SMITH &. COMPANY Consultants & Actuaries 301 East Las Olas Blvd. • Sutte 200 • Ft Lauderdale, FL 33307-2254 O 954 -527 -1816 o FAX 054-525 -0083 September 16, 2003 Pension Berard South Miami Pension. Plan c/o Ms. Haydee Lopez Benefits USA, Inc. 3810 Inverrary BIvd., Suite 208 Lauderhill, EL 33319 Res Lisea Merrick (264 -31- 1345) Dear Haydee: As requested, please find enclosed three (3) copies of our Calculation of Deferred 'Tested Retirement Income due Ms. Lisea Merrick based upon information provided by the City of South Miami, the tens of the Lisea Merrick Mediation Agreement and the terms of the South Miami Pension. Plan based upon a termination 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 further assistance, please do not hesitate to contact its. Sincerest regards, Lawrence Wilson, A.S.A. Senior Consultant and Actuary Enclosures cc: Ms. Jeanette Enrizo- Navauo Kenneth R. Harrison, Sr., Esq. Mr. Hakeem K. ©shikoya; C.P.A. i ;..,' CITY OF SOUTH MIAMI - LISEA MERRICI£ MEDIATION AGREEMENT Calculation of Deferred Vested Re taorement Income 1. Name Lisea Merrick 2. Social Security number 264-31 -1345 3. Date of birth h9y 25, 1960 4. Date of employment Septerbber 29, 1995 5. Date of termination June 4, 2002 6. ?`Formal retirement date August 1, 2020 7. Age as of August 1, 2020 60.000 years 8. Credited Service as of date of termination (per Mediation Agreement) 10.000 years 9. Accumulated employee contributions as of date of termination $ 19,224.34 10. Final average monthly compensaticm as of date ofterrnination $ 5,506.27 Earnable Fiscal, Year ConWernsation 10/01/2001- 06/04/2002 $ 53,162.00 10101/2000 - 09/30/2001 56,310.80 10/01/1999 - 09130/2000 69,370.60 0610511999 - 09130/1999 19,442.26 $ 198,225.66- 11. Monthly accrued benefit as of date of termination a. $5,506.27 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. $5,50627 x 1.90% (0.0190) x 1.000 year 104.62 d. $5,50627 x 2.25% (0.0225) x 1.000 year 123.89 e, $5,506.27 x 2.50%.(0.0250) x 1.000 year 137.66 f $5,506.27 x 2.73% (0.0275) x 4.000 years 605.69 g. $5,506.27 x 2.80% (0.0280) x 0.667 years 102.84 h. Sum of a. through g. $ 1,29125 GABRIE4 ROEOM S8 IrH & COMPANY 'f RESC)LUTION l` O. 77-U2-11426 A It.BSOLuTION OF THE. -MAYOR AND CITY COMMiSsm of THE CITY OF SOUTH MIAMI, FLORM , RELATING TO CONTRACTS; APPROVWG A SETTLEMENT AGREEMENT WITH LISEA MERRICK, PROVIDING AN EFF'ECTI'VE DATE. WHEREAS, the Mayor and City Commission of the City of South Miami r empowered to settle claims and to approve settlement agreements; and, WHEREAS, Lisea Merrick has filed - EEOC clairn_s• and a federal discrunination.lawsuit, styled Merrick v. Ciry rr, &aWh'Miami, Case No.02-25 .64 (S.D. Fla. 2002), against the city; mod, WHEREAS, Merrick has agreed to a settlement agreement and the Mayor and City Commission desire to approve -rhe agreement. NOW T14BREFORE BE IT RESOLVED 1,Y THE M.A.YOR. AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA; Srecdon 1. The settleme, t a;reemient between Lisea. Merrick and the City of South'Miarnt, a copy of 'ch is artaohed to this resolution, is approved. The City Manager, or his desiv, , is directed to take the administrative actions required by the City to satisfy the terms of the agreement. Section 2. This resolution shall .take effect iir►inediately upon approval. PASSED ,4.N1D ADOPTED this 40.1 clay of Jane, 2002.. ATTEST: CITY CLERK. -- READ'AND APPROVED AS TO FORM: CITY ATTORNEY APPROVP -D: MAYOR COMMISSION VOLE: -Mayor Robaisxa: Vice Mayor Russell: Commissioner Wfscombe: Commissioner .Bethel: Cominissloner Felih: Additions shaµn by !Ln_dgft_mz and deletions sho%yi by ° __s_� hii 4 y out• of roam Y x t J. . ' Alease n:piy i0: 3225 AviaS*rk Avetiuc, Third Floor Mimi, Florida 33133 ' city Miami (305) 854 -5353 (305)85x- 53Siffax} 6130 Sunset Drive, South Maml. Florida 33143 t rune 14, 2002 . _ Ms. Susan Diaz, investigator Equal Employmeni Opportunity Commission MY District OffiCC one Biscayne Tower, Suite 2700 2 South- Biscayne Blvd_ Miami, Florida 33131 Re. _Memck v. City of South Miaini EEoc Charge Nurnber: i 50A200160 . .Dear Ms.-Diaz: ° Enclosed please find a copy of a settlement agrecaacnt between Ms_ Merrick and the City of South Miami. According • to the terms of the settlement - agreement, Us. Merrick has.-agreed ro withdraw any an .d all penning EEOC charges -that she may have filed. againjt • the City. As such, the City asks that thus information be takeri under advisefont and pursuant to the exacnted agreeraeM have= thke`, bb*a feferenced charging document dismissed. Thank you. Very truly yours,- - Eve A.,Boutsis, . Ufce of the City Att©me y, Ear•1-G. Gallop Ms. Jeanette Navarro,.14wnan R_esources.Manaiger Cpt. Since Ross; South Miami Police Dept. 'cc: Jahn Parsons. Esq. r "City of Pleasant iatrhW' Robert A. Sugarman Howard S. Susskind David E. Robinson. Kenneth R. Harrison. Sr. D. MMarol-a Braswell. Jr_ George S. Aude Charles A. Gibson Board Certified Labor Employment Lawyer S.UGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW January 29, 2003 Board of Trustees - City of 'South :Miami Pension Plans c% Jeannette Fnrizo- Navarro, Human. Resources Manager City of South MiWmi 6130 Sunset Drive South Miami, Florida 33143 Re: LiseaMerrick S'ettlementAgreement Dear Trustees: 2801 Ponce De Leon Boulevard Suite 751) Coral Gables, Florida 33134 =) 529 - 2801 Broward 327 -2878 Toll Free 1-B0D- 329 -2122 Facsimile (305) 447 -8115 As you requested, we have reviewed the Agreement enterred into between the City and Uses Merrick a former police officer, which settled a federal court lawsuit which she brought against the city. We have also reviewed City-Resolution No. 77-02 -11426 which approved the settlement agreement and the provisions of Chapter 16, Article II of the South Miami 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 iffis [Merrick's] pension and further agrees to mare 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 city employment and the 10 years, or 120 months, promised to her in the Agreement.) Board of Trustees City of South Mani Pension Fends c o Jeannette Enrizo Navarro, Human Resources Ntanager City of South Nfiiami January 29, 2003 Page 2 In our opinion, the city cannot provide this benefit to Ms. Merrick from the South Miami Pension Plan There is no provision in the South ltfiami Pension Plan for granting credited service to employees for time not actually worked for the City of South M am4 even if the value of this credited service is filly paid to the pension plan by the city. Further, the pension plan cannot be amended to provide for the purchase ofnon- 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 actual service as a municipal police officer, prior military service, 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 M. Merrick even if the city fifIly 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 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 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 M. 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'returmed to Lisea Merrick. If the city wishes to implement the intent of its agreement by providing Lisea Merrick with a 14 year pension upon her reaching age 60, there are at least two ways that the city can do this. While the city cannot grant Ms. Merrick additional credited service, for the reasons explained above, the city can lower the vesting requirement to. the 1 74 months she actually worked -ajn 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 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 officers who had at least 74 months of service as of June 2002. Because this would be a very expensive and lucrative benefit and that a number of officers would likely 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 do Jeannette Enrizo Navarra, 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 life 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 a reduction in the city's future contributions to the plaza. 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, W. PEW, 1 ROBERT A- SUGARMAN rV VII F. CG: Captain Bruce H. Ross, Chairman OfAcer Eric Fulton, Chairman Earl Gallup, City Attorney C3:5lSMFFOPII�}1C?P3N LisraM'arickSetii�- LtTrt�ie�s -_vxTED STATES DISTRICT CODmf SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION CASE NO:02- 2564- CIV- MORENO MAGISTRATE JUDGE DUBE LISEA MERRICK, Plaintiff, vs. CITY OF SOUTH MIAMI, FLORIDA a Florida Municipal Corporation, Defendant. AGREEMENT ,"Tr fC - s J Cr) _�-�.. r +� �.--t r: P� ? e .f v1 f r lCc ri1 err 2"-4 A" �F �+... -t,S EX c.�7r�f y'r�t'iG fp.�s� G.c�—� F4' et j -Plaiaiff D Pendant, Plaintiff's Counsel Defendant's Counsel DATE( f ^ Lisea Herrick, v. City of Siami U.S.D.C. Case No: 02- 2564- CL%1= r,x7RE O /DUBE Mediation Agreement, cont'd. %lL r xo5;pe, + t J 4, - /! > C J H v/r % T Y `, iy ry e / 14 A-. -rT a t` Ile, .6 Cri- Or 4 �{ !x �•� � C7 .-t'� s� � ���'"'�t,� r-S ,��re a bf�'.2..�C t- �..��! l s W r � rs�� mm t" r� Plaintiff Plaintiff's Counsel. DATE''" Defendant Defendant's Counsel LON 0 r •.•+ X r 04 " '/'� a- r c., *,A> Plaintiff Defendant Plaintiff's Counsel Defendant's Counsel DATE ,� r, Lisea Marrick, v. City o €' iami U.S.D.C. Case No: 02- 2564- CIV- MDRENO /DUNE Mediation Agreement, cont'd. t GI Q Ls r LON 0 r •.•+ X r 04 " '/'� a- r c., *,A> Plaintiff Defendant Plaintiff's Counsel Defendant's Counsel DATE ,� r, Lisea Merrick, v. City of .ami U.S.D.C. Case No. 02- 2554- CiV- MORWO /DUSE Plaintiff ia'ntiff's Counsel r� DATE L44 -a C �'.crCS GABRIEL; ROEDER� SMITH & COMPANY Consultants & Actuaries 301 East Las olas Sind. • Su to 240 • Ft. Lauderdale, FL 33301.2254.954-527.1 616 • FAX 954- 525.0483 September 16, 2043 Pension Board South Miami Pension Plan c/o Ms. Haydee Lopez Benefits USA, Inc. 3814 Inverrary Blvd., Suite 248 Lauderhill, FL 33319 Re: Usea MerAck (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 based upon information provided by the City of South Miami, the terms of the Lisea Merrick Mediation Agreement and the terms of the South Miami Pension Plan based upon a termination date of June 4, 2402. 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 further assistance, please do not hesitate to contaC t us. Sincerest regards, Lawrence Wilson, A.S.A. Senior Consuttaut and Actuary Enclosures cc: Ms. Jeanette Enrizo- Navarm Kenneth R Harrison, Sr., Esq. Mr. Hakeem K. Oshikoya; C.P.A. CITY OF SOUTH MIAMI - LISSEA MEMCK MEDiATTON AGit ► + NEWT Calculation of Deferred Vested Retirement income 1. Name Lisea. Merrick 2. Soefid Security number 264-31 -1345 3. Date of birth July 25, 1960 4. Date of employment Septeitber29, 1995 5. Date of termination 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 Mediation Agreement) 10.000 years 9. Accumulated employee contributions as of date of termination $ 19,224.34 10. Final average monthly compensation as of "e of termination $ 5,506.27 Earnabie Fiscal' Corwensation 10/01/2001 - 06104/2002 $ 53,162.00 10/01/2000 - 09/30/2001 56,310.80 10/01/1999 - 09130/2000 69,370.60 06105/1999 - 09/3011999 19.442.26 $ 198,225.66. 11. Monthly accrued benefit as of date of termination a. $5,566.27 x 1,6Gk (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 x2.25%'0 (0.0225) x 1.000 year 123.89 e. $5,50627 x 2.501/a (0.0250) x 1.000 year 137.66 £ $5,506.27 x 2.75-0/.(0.0275) x 4.000 years 605.69 g. $5,506.27 x 2.80'1/o (0.0280) x 0.667 years 102.84 h. Sum of a. through g. $ 1,291.25 GABRIEL, ROIE:DER, SWIM & COMPANY RESOLUTION NO. 77- 02_11426 A MSOLUTION OF THE -MAYOR AND CITY COMMISSION . OF THE CITY OF SOUTH M OdW, FLORIDA, RELATING TO CONTRACTS; APPROVING A SETTLEMENT AGREEMENT WITH LISEA MERRICK; PROVIDING AN EFFEC°TM DATE. :WHEREAS, the Mayor and City Cou unission 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 discrimination. lawsuit, styled hferrick v. Ciry of Souihi'Miami, Case No. 0? -2564 (S -D, Fla. 2002), against the city; and, .WHEREAS, Merrick has agreed to a'settlement agreement and the Mayor and City Commission desire to approve the agreement. . NOW THMFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA; e ' n 1 The settlerne t agreement between Lisea Merrick and the i City of South*Miam a copy of v 'ch is attached to this resolution,'is approved. The City Manager, or his design , is directed to take the administrative actions required by the City to satisfy the terms of the agreement. Sectio This resolution -shall lake offe.cz immediately upon appravAl. PASSED AND ADOPTED this 4t1t day of 3uhe, 2002. ATTEST: 4TeW�— CITY CLERK • - READ AND APPROVED AS TO FORM: CITY ATTORNEY APPROVED: MAYOR — — COMMISSION VOTE :. Mayor Robaina: ' Vice Mayor Russell: Commissioner Wiscombe: Commissioner Bethel: - Commissioner Felhi: Additions shown by on et irr and dcic6ans -sho %n by e++erar a,. 4 y out, of room y •Y YITED STATES DISTRICT CG SOU`T`HERN DISTRICT - OF FLORIDA MIAMI DIVISION CASE NO :02- 2564- CIV- MORENO LISEA MERRICK, MAGISTRATE 016GE DUPE Plaintiff, va. CITY OF SOUTH MIAMI, FLORIDA. a Florida Municipal. Corporation, Defendant. NA 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. )(77A complete agreement was reached. The mediation was continued. Date: Plaintiff a_�atiff's Counsel DATE Mediator