04-04-05 Item 19To: Mayor and City Commission Date: April 4, 2005
A
From Maria V. Davis AGENDA ITEM 4
City Manager Re: Ordinance to provide Rule of 70
to Eligible Police Officers.
ORDINANCE
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA AMENDING THE CITY OF
SOUTH MIAMI PENSION PLAN, PROVIDING FOR AN INCENTIVE
FOR RETIREMENT FOR CERTAIN POLICE OFFICER EMPLOYEES
OF THE CITY OF SOUTH MIAMI TO INCLUDE A RULE OF SEVENTY
(70), WITHIN A SPECIFIED PERIOD OF TIME; PROVIDING FOR
SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING
FOR AN EFFECTIVE DATE.
BACKGROUND
The attached ordinance is an amendment to the existing City pension ordinance to provide a
retirement incentive titled "Rule of 70" for eligible Police Officers who elect to retire within a
specified period of time. To be eligible for this incentive, the Police Officer has to be presently
vested in the City pension plan (the City vesting period is ten years) and have a combination of
years of service and age that is equal to or greater than 70 to retire with full retirement benefits, if
they so choose.
This incentive is being made available for a limited period of time through June 1St, 2005, and the
full cost of offering the incentive to the Officers shall be borne by each Officer that chooses to
take advantage of it. There will be no cost to the City for offering the incentive. However, it will
provide the opportunity for the City to hire new Police Officers at a pay rate lower than that
presently being paid to any Police Officer that chooses to retire under the new incentive plan.
This type of incentive being offered to employees is a win -win situation. It enables and
encourages older employees to retire with better pension benefits, while presenting the City the
opportunity to hire new employees at a lower pay rate, resulting in net savings to the City.
RECOMMENDATION
I recommend approval of this ordinance by the City Commission.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA AMENDING THE CITY OF SOUTH
MIAMI PENSION PLAN, PROVIDING FOR AN INCENTIVE FOR
RETIREMENT FOR CERTAIN POLICE OFFICER EMPLOYEES OF THE
CITY OF SOUTH MIAMI TO INCLUDE A RULE OF SEVENTY (70),
WITHIN A SPECIFIED PERIOD OF TIME; PROVIDING FOR
SEVERABILITY; PROVIDING FOR CODIFICATION; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the City of South Miami desires to provide a retirement incentive for certain
employees; and
WHEREAS, the City recognizes that such retirement incentive will actuarially impact
on the Pension Plan and shall beat the option of certain employees; and
WHEREAS, the City Commission has received and reviewed an actuarial impact
statement related to such early retirement incentive.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, THAT:
Section 1: Part I. Provisions governing the South Miami Pension Plan.
See. 16-13. Eligibility.
(e) Notwithstanding the above sub - sections any participant classified
as a police officer who elects to retire after January 31 2005 and
before June 1 2005 shall be eligible for a retirement incentive
which shall be equal to normal retirement provided:
(1) The police officer participant has attained an age that when
added to credited service equals or is greater than seventy (70)• and
(2) The full actuarial cost of such retirement incentive shall be
paid by the police officer participant no later than June 31 2005
Section 2: Should any section or provision of this Ordinance or portion hereof,
any paragraph, any sentence, or word, be declared by a court of competent jurisdiction to be
invalid, such decision shall not affect the validity of the remainder of this ordinance.
Section 3: Authority is hereby granted to codify this Ordinance.
Section 4: This Ordinance shall become effective upon adoption.
PASSED and ADOPTED this day of , 2005
Ord.xblazekon "McGruff (ft Police Retirement Incentive
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
ATTEST
CITY CLERK
1St Reading -
2"d Reading -
READ AND APPROVED AS TO FORM
CITY ATTORNEY
Ord.:cblazekon "McGruff (J):Police Retirement Incentive
MAYOR
COMMISSION VOTE:
Mayor Russell:
Vice Mayor Palmer:
Comm. Wiscombe:
Comm. Birts- Cooper:
Comm. Sherar: