HomeMy WebLinkAbout2005-3487 Ordinance
ORDINANCE NO. 2005-3487
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
ORDINANCE NO. 92-2813, THE DEFINED CONTRIBUTION
RETIREMENT PLAN 401(A), BY AMENDING THE PROVISIONS
OF SECTION 1, ARTICLE 5, SUBSECTION 5.03 THEREIN, TO
INCREASE THE MAXIMUM MONTHLY RETIREMENT
DISABILITY BENEFIT TO REFLECT ANNUAL COST OF LIVING
INCREASES; PROVIDING FOR A REPEALER, SEVERABILITY,
CODIFICATION, AND AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1: That Section 1, "Establishment of a Defined Contribution Retirement Plan for the
City", Article 5, Subsection 5.03, of the Defined Contribution Retirement Plan 401(a), Ordinance
No. 92-2813, shall be amended to read as follows:
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ARTICLE 5: Retirement
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Subsection 5.03 Any employee who is totally and permanently disabled and unable to
carryout the requirements of their position in City Service shall be entitled to a disability
retirement. Such disability retirement benefit shall be equal to two-thirds of the employee's
annual earnings, adiusted to include cost ofliving increases provided to employees. based on
the percent increase given to Unclassified Employees, provided that such benefit shall not
exceed $5,000 $8.000 a month for Year One (defined herein as the period from June 1. 2005
to May 31. 2006): $9.000 a month for Year Two (defined herein as the period from June 1.
2005 to May 31. 2006): and $10.000 a month for Year Three (defined herein as the period
from June 1. 2005 to May 31. 2006) . This maximum monthly amount will be updated by
Resolution ofthe City Commission to include future cost ofliving percent increases. based
on the amount given to Unclassified Employees. at the time the City's contract for employee
long term disability contract for coverage is renewed or a new contract awarded. This
disability payment will commence upon the completion ofthe sixth month of such disability
and continue throughout the life of the disabled employee. The City shall be obligated to
purchase an insurance policy for employees in this System which shall provide this benefit.
An offset to the fullest extent allowed by law for all payments made to the disability retiree
for worker's compensation payments, shall be taken by the Board of Trustees. The Board of
Trustees shall consider all requests for total and permanent disability, and shall make positive
recommendations to the insurer of all employees whom it determines meet the insurer's
criteria for the total and permanent disability. The final determination of disability shall be
made by the insurer.
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SECTION 2: REPEALER.
That all ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 3: SEVERABILITY.
If any section, sentence, clause, or provision ofthis ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in no
way affect the validity of the remaining portions of this ordinance.
SECTION 4: CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach,
and it is hereby ordained that the provisions of this ordinance shall become and be
made a part of the Code of the City of Miami Beach, Florida. The sections of this
ordinance may be renumbered or rel~ttered to accomplish such intention, and the
word "ordinance" may be changed to "section", "article", or other appropriate word.
SECTION 5: EFFECTIVE DATES.
This Ordinance shall take effect the 18th day of
June
,2005.
PASSED and ADOPTED this 8th day of
June
,2005.
ATTEST:
~~
MAY '.
~ David Dermer
I
~'<c) ~
~ CITY CLERK
~ Robert Parcher
T:\AGENDAUOO5\Jaa08OS\Regalar\amend 401(a) ord 2813 lad mad JuneOSAoc
APPROVED /IS TO
FORM & LANGUAGe
& FOR EXECUTION
Mf~ 6.-3-05
City Attome r- Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
Second Reading and Public Hearing of an Ordinance amending Ordinance No. 92-2813, the Defined
Contribution Retirement Plan 401 (a) to increase the maximum monthly retirement benefit to reflect annual
cost of living increases,
Issue:
Shall the City amend the 401 (a) Defined Contribution Retirement Plan Ordinance to allow for the maximum
monthly retirement disability benefit to changed from a maximum monthly benefit of $5,000 to $8,000 in
Year one, Year two to $9,000 and Year three to $10,000 to allow for annual cost of living increases since
inception of the plan and in the future, to allow the maximum monthly benefit to be changed by Resolution
when the Lona Term Disability contract is renewed or awarded?
Item Summa IRecommendation:
Adopt the Ordinance to amend the 401 (a) Defined Contribution Retirement Plan Ordinance No. 92-2813 to
increase the maximum monthly retirement benefit to $10,000 over the next three years to reflect annual
cost of living increases and in the future to allow the maximum monthly benefit to be amended by
Resolution at the time the L TD contract is renewed or amended.
The Administration recommends ado tin the Ordinance.
Advisory Board Recommendation:
I N/A
Financial Information:
Source of
Funds:
Approved
D
Finance Dept.
1
2
3
4
Total
011.9611.000375
Ci Clerk's Office Le islative Trackin :
Mayra D. Buttacavoli, Director of Human Resources & Risk Management
City Manager
AGENDA ITEM
DATE
RS-C.
(p-g -oS-
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
WWN,miamibeachfl.gov
COMMISSION MEMORANDUM
To:
Mayor David Dermer and
Members of the City Commission
Date: June 8, 2005
From:
Jorge M. Gonzalez ~ c.../
City Manager 0 r" 0
SECOND READING
PUBLIC HEARING
Subject:
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 92-2813, THE
DEFINED CONTRIBUTION RETIREMENT PLAN 401 (A), BY AMENDING
THE PROVISIONS OF SECTION 1, ARTICLE 5, SUBSECTION 5.03 TO
INCREASE THE MAXIMUM MONTHLY RETIREMENT DISABILITY
BENEFIT TO REFLECT ANNUAL COST OF LIVING INCREASES;
PROVIDING FOR A REPEALER, SEVERABILITY, CODIFICATION, AND
AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Adopt the Ordinance.
ANALYSIS
Ordinance No. 92-2813 that created the Defined Contribution Retirement Plan under
section 401(a) of the Internal Revenue Code, was written in 1992 and included a maximum
monthly retirement benefit that was equal to two-thirds of an employee's annual earnings,
with a maximum monthly benefit of $5,000. This maximum benefit amount covers a salary
up to $90,000. No provision was made in the Ordinance to increase this maximum
covered amount.
Since 1993 the City has provided several cost of living increases, ranging between 2% and
6%, based on amounts given to Unclassified employees. If these cost of living increases,
including 2005, had been applied to the maximum covered salary of $90,000, that covered
amount would now be $140,000, or a monthly benefit not to exceed $7,700. Insurance
companies quote long term disability premiums based on increments of $1,000 for covered
benefit amounts.
The Administration recommends that the Ordinance be changed to allow for past cost of
living increases, a projected 3.5% increase for 2006, estimated increases between 3.0 and
3.5% for the next two years, thereby establishing a new monthly benefit maximum of
$8,000 for Year one, $9,000 for Year two and $10,000 for Year three (covered salary of up
to $180,000). The Administration also recommends that the Ordinance include language
so that the maximum monthly amount may be amended by Resolution to include future
cost of living increases whenever the Long Term Disability contract for coverage is
renewed or awarded.
FISCAL IMPACT
The fiscal impact of this amendment will result in an increase in the maximum monthly
benefit of $5,000 to $8,000 year one of the agreement with Jefferson Pilot, $9,000 year
two, and $10,000 year three to those employees who are in the 401 (a) retirement system,
if they face a long-term disability. The estimated annual cost of the current benefit level
under the existing contract is $79,738. The cost ofthe current benefit level underthe new
proposed rates would result in an estimated annual cost of $61 ,615. Therefore, the total
potential savings on an annual basis is $18,123. An item on the agenda of May 18, 2005
awarded a contract for long term disability to Jefferson Pilot Financial, with an estimated
annual cost of $68,413 for year one, $68,737 for year two, and $68,899 for year three for a
maximum monthly benefit that will increase to $8,000 for year one, $9,000 for year two and
$10,000 for year three. This proposed Ordinance result in an estimated annual savings of
$11,325 year one, $11,001 year two, and $10,839 year three.
CONCLUSION
The Administration recommends the City Commission adopt the Ordinance.
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CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARING
r{'
,
NOTICE IS HEREBY given that public hearings will be held by the Mayor and City Commission of the City
of Miami Beach, Florida, in the Commission Chambers, 3rd floor, City Hall, 1700 Convention Center
Drive, Miami Beach, Florida, on Wednesday, June B, 2005, to consider the following: .
10:15A.M '
An Ordinance Amending Chapter 70 Of The Code Of The City Of Miami Beach, Entitled "Miscellaneous
Offenses," To Create Article VI, To Be Entitled "Sexual Offenders And Sexual Predators" And Creating
Sections 70-400, Entitled "Findings And Intent," 70-401, Entitled "Definitions," 70-402, Entitled
"Sexual Offender And Sexual Predator Residence Prohibition; Penalties: Exceptions," Providing For A
Prohibition For Sexual Offenders And Sexual Predators Convicted Of Crimes Under Certain Florida
Statutes From Living Within 2500 Feet Of Specified Locations Within The City Of Miami Beach And
Creating Section 70-403, Entitled "Properly Owners Prohibited From Renting Real Property To Certain
Sexual Offenders And Sexual Predators; Penalties," Prohibiting Owners Of Real Property From Renting
Or Leasing Any Place, Structure, Or Part Thereof, Trailer Or Other Conveyance Located Within 2500
Feet Of Specified Locations. _ .
Inquiries may be directed to the City Attorney's Office at (305) 673-7470.
10:30AM.
An Ordinance Amending Miami Beach City Code Chapter 2, Article VII, Division 5 Thereof Entitled
"Campaign Finance Reform" By Amending Code Sections 2-487 "Prohibited Campaign Contributions
By Vendors", 2-488 "Prohibited Campaign Contributions By Lobbyists On Procurement Issues", 2-489
. "Prohibited Campaign Contributions By Real Esta\e Developers", And 2-490 "Prohibited Campaign -
Contributions By Lobbyists On Real tstate Development Issues", By Adding Language Providing That
The 12 Month Period In Which A Prohibited Donor Of A Campaign Contribution Is Disqualified From
Certain Specified Associations With. The City Shall Commence Upon A Final Finding Of Violation, Or If
Applicable, Upon Miami Beach City Commission Action On A Waiver Request, And Establishing Effects
Of Waiver; Further Amending Code Section 2-487(B).
Inquiries may be directed to the City Attorney's Office at (305) 673-7470.
:35A.M.
n Ordinance Amending Ordinance No. 92-2813, The Defined Contribution Retirement Plan 401 (A), By
Amending The Provisions Of Section 1, Article 5, Subsection 5.03 To Increase The Maximum Monthly
Retirement Disability Benefit To Reflect Annual Cost Of Living Increases.
Inquiries may be directed to the Human Resources Department at (305) 673-7520
10:40 A.M. I
An Ordinance Amending Chapter 82, Article V, Division 1, Section 82-438 Of The City Code, Entitled
"Prohibiting Wheeled Conveyances On Beachfront Promenade Boardwalk Except Those Required By
The Handicapped," To Provide For Certain Exceptions To The Prohibition Of Whe-eled Conveyances On
The Boardwalk.
Inquiries may be directed to the Police Department at (305) 673-1925
INTERESTED PARTIES are invited to appear at this meeting, or be represented by an ewent, or to
express their views in writing addressed to the City Commission, c/o the City Clerk, 170 'Convention
Center Drive, 1 st Floor, City Hall, Miami Beach, Florida 33139. Copies of ,these ordinance are available
for public inspection during normal business hours in the City Clerk's Office, 1700 Co ention Center
Drive, 1st Floor, City Hall, Miami Beach, Florida 33139. This meeting may be continu and under such
circumstances additional legal notice would not be provided,
Robert E. Parcher, City Clerk
City of Miami Beach .I
Pursuant to Section 286.Q1 05, Fla. Stat., the City hereby advises the public thaI: if aptirson decides to appeal any
decision made by the City Commission with respect to any matter considered at its meeting or its hearing, such
person must ensure that a verbatim record of the proceedings is made, which record includes the testimony and
evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the
introduction or admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or
appeals not otherwise allowed by law.
To request this material in accessible format, sign language interpreters, information on access for persons with
disabilities, and/or any accommodation to review any document or participate in any city-sponsored proceeding,
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