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HomeMy WebLinkAbout2006-3530 Ordinance ORDINANCE NO. 2006-3530 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE MIAMI BEACH EMPLOYEES' RETIREMENT PLAN CREATED BY ORDINANCE 2006-3504; AMENDING SECTION 2.11 CONCERNING THE DEFINITION OF EARNINGS; AMENDING SECTION 4.05 CONCERNING THE PURCHASE OF CREDITED SERVICE BY CERTAIN MEMBERS WHO PREVIOUSLY HAD CREDITABLE SERVICE UNDER THE CLASSIFIED PLAN; CREATING A NEW SECTION 4.06 CONCERNING THE PURCHASE OF CREDITABLE SERVICE FOR INITIAL PROBATIONARY PERIOD; AMENDING SECTION 5.01 CONCERNING THE NORMAL RETIREMENT BENEFIT; AMENDING SECTION 5.07 CONCERNING DEATH BENEFITS AFTER RETIREMENT; AMENDING SECTION 5.12 CONCERNING THE EARLY RETIREMENT INCENTIVE PROGRAM; AMENDING SECTION 6.02 CONCERNING CONTRIBUTIONS BY MEMBERS; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: Section 1. Section 2.11 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is amended to read: 2.11 "Earnings" means base pay, including longevity pay, for personal services rendered as an Employee, but excluding any payment of overtime, shift differential or extra compensation allowances such as uniform allowances. Notwithstanding the foregoing, in the case of any Member who is in a classification within the CWA bargaining unit who entered service with the City prior to February 21, 1994 as a Classified Employee, and who was continuously a member of the Classified System from that date until the effective date of this Ordinance, "Earnings" shall include overtime pay up to a maximum of ten percent (10%) above the Member's highest pensionable earnings each year. Earnings in excess of the limitations set forth in Section 101 (::1)(17) of the Internal Revenue Code, and regulations promulgated thereunder, shall be disregarded, and no member contributions shall be required on ::1ny such excess. The definition of Earnings in the preceding sentence shall apply to Employees in classifications within the AFSCME bargaining unit who entered the service of the City prior to April 30, 1993 and to employees in classifications within the GSA bargaining unit who entered the service of the City prior to August 1, 1993, and who were Members of the Classified Plan continuously from that date until the effective date of this Ordinance, upon the ratification of a collective bargaining agreement that contains such definition. Earnings in excess of the limitations set forth in Section 401 (a)(17) of the Internal Revenue Code. and regulations promulgated thereunder. shall be disregarded. and no member contributions shall be reauired on any such excess. Section 2. Subsection (c) and (d) of Section 4.04 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is amended to read: 4.04 Purchase of Creditable Service by Members Who Previously Participated in the Defined Contribution Retirement System. * * * ~ fQl Amounts paid or transferred to this Plan for the purchase of creditable service under this section 4.04, excluding any outstanding loan balances, shall be considered accumulated employee contributions as that term is defined herein, and Members shall be 100% vested in such amounts. (€it ~ Notwithstanding any other provision of this section 4.04, the provisions of this section 4.04 shall not apply to Employees within classifications in the AFSCME and GSA bargaining units until a collective bargaining agreement containing such provisions is ratified. If a collective bargaining agreement applying the provisions of this section 4.04 to Employees within classifications in the AFSCME or GSA bargaining units is ratified on or before April 1, 2006, for any Employee who purchases Creditable Service purchased pursuant to subsection (a), above, that relates to employment during the 2005-2006 fiscal year, and makes full payment for such service within sixty (60) days following ratification of the collective bargaining agreement, the payment amount for such service shall be twenty percent (20%) of the Employee's earnings for the period purchased, with no interest on the amount paid for such service. Section 3. Section 4.05 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is amended to read: 4.05 Purchase of Creditable Service by Members Who Previously had Creditable Service Under the Classified Plan. 2 @} Any Employee who was employed on March 18. 2006 and becomes a Member of this Plan on or before September 18. 2006. and Member who previously had creditable service under the Classified Plan but who separated from employment as a Classified Employee prior to becoming fully vested in the Classified Plan, may purchase Creditable Service under this Plan for all or a portion of the period of their creditable service under the Classified Plan, by paying into the Plan an amount equal to the sum of the required employer and employee contributions to the Classified Plan for each fiscal year of service or portion thereof purchased, plus interest at the rate of eight and one-half percent (8.5%) from the end of each applicable fiscal year through the date of payment. Full payment must be made within six (6) months after the effective date of tfl.is Ordinance 2006-3504. (b) Notwithstanding the provisions of subsection (a), above. any Employee who was employed on March 18. 2006 and becomes a Member of this Plan on or before September 18. 2006. and who was promoted from a classified position to an unclassified position with no break in City service prior to March 18. 2006 and received a refund of member contributions from the Classified Plan, may purchase Creditable Service under this Plan for all or a portion of the period of their creditable service under the Classified Plan. by paying into the Plan an amount equal to ten percent (10%) of their annual rate of pensionable Earnings. multiplied by the number of years and fractions of a year purchased. plus interest at the rate of 9.0% calculated from the end of each applicable fiscal year through the date of payment. Full payment for Creditable Service purchased pursuant to the preceding sentence must be made within six (6) months after the effective date of this Ordinance. {Ql Notwithstanding any provision of this section 4.05, this section 4.05 shall have no application to persons employed by the Miami Beach Visitor and Convention Authority, the Classified Plan, the Unclassified Plan or the City Pension Fund for Firemen and Policemen on the effective date of this Ordinance.:. ., Section 4. Effective March 18, 2006, a new Section 4.06 of the Mi::1mi Beach Employees' Retirement PI::1n created by Ordinance 2006 3504 is created to read: 4.06 Purchase of Credit::1ble Service by Members \^lho Participated in ::1 Section 457 Plan Durina their Initial Probationary Period. An" Member who did not receive credit under a City retirement plan. other th::1n ::1 Section 457 plan, durina their initial probationarY' period. m::1V purchase Credit::1ble Service under this Plan for all or a portion of such probationary period. bv p::1'/ing into the Pl::1n an amount eQu::11 to the sum of the required emplover ::1nd employee contributions to the Cl::1ssified 3 Plan or Unclassified Plan ('Nhichever plan in which the Member was eligible to p::1rticipate prior to becoming a member of this Pkm) for e::1ch fiscal year of service, or portion thereof. purch::1sed, as reflected in the actuarial v::1lu::1tion report for that vear; plus interest at the r::1te of 8.5 percent f-or Classified Employees ::1nd 9.0% f-or Unclassified Emplovees. calculated from the end of each applicable fiscal year through the d::1te of p::1yment. Full payment for ::111 service purchased pursuant to this section 4.06 must be made within one "ear after the effective date of this Ordinance or one vear after initial membership in this Plan. whiche'Jer is later. but in no event later than the last day of emplovment. in the same manner as provided in section 4.04(c). Not\A.'ithstanding an'.' other provision of this section 4.06. in no event ma'l the maximum benefit percentage applicable to the member be exceeded as the result of an" purch::1se of Creditable Service. Replacement language: Section 4. Effective March 18, 2006, a new Section 4.06 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is created to read: 4.06 Purchase of Creditable Service for Initial Probationary Period. Any Member who did not receive credit under a City retirement plan. other than a Section 457 plan. during their employment as a provisional or probationary employee, may. at any time prior to retirement. purchase Creditable Service under this Plan for all or a portion of such provisional or probationary employment. by paying into the Plan an amount equal to member contribution rate in effect during the period of such provisional or probationary employment. plus interest compounded annually based on the regular rate of interest in effect at the time of the purchase. If the member elects to purchase Credited Service for less than the entire period of provisional or probationary employment. only the most recent period of provisional or probationary employment shall be claimed. Notwithstanding any other provision of this section 4.06. in no event may the maximum benefit percentage applicable to the member be exceeded as the result of any purchase of Creditable Service. Section 5. Effective March 18, 2006, Paragraphs (2), (3) and (4) of Subsection (b) of Section 5.01 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 are amended to read: (b) Normal Retirement Benefit * * * 4 (2) Notwithstanding the provIsions of paragraph (1), above, the normal retirement benefit payable to Members in classifications within the AFSCME bargaining unit who entered the service of the City prior to April 30, 1993 and who were Members of the Classified Plan continuously from that date until the effective date of this Ordinance, shall be three percent (3%) of final average monthly earnings multiplied by creditable service for the first fifteen years (15) of such service, and four percent (4%) of final average monthly earnings multiplied by creditable service for each year in excess of fifteen (15), to a maximum of ninety percent (90%) of final average monthly earnings. (3) Notwithstanding the provisions of paragraph (1), above, the normal retirement benefit payable to Members in classifications within the CWA (MBEBA) bargaining unit who entered the service of the City prior to February 21, 1994 and who were Members of the Classified Plan continuously from that date until the effective date of this Ordinance, shall be three percent (3%) of final average monthly earnings multiplied by creditable service for the first fifteen (15) years of such service, and four percent (4%) of final average monthly earnings multiplied by creditable service for each year in excess of fifteen (15), to a maximum of ninety percent (90%) of final average monthly earnings. (4) Notwithstanding the provisions of paragraph (1), above, the normal retirement benefit payable to Members in classifications within the GSA bargaining unit or any Employee classified as "Other" who entered the service of the City prior to August 1, 1993 and who were Members of the Classified Plan continuously from that date until the effective date of this Ordinance, shall be three percent (3%) of final average monthly earnings multiplied by creditable service for the first fifteen (15) years of such service, and four percent (4%) of final average monthly earnings multiplied by creditable service for each year in excess of fifteen (15), to a maximum of ninety percent (90%) of final average monthly earnings. * * * Section 6. Subsection (g) of Section 5.05 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is amended to read: 5.05 Disability Retirement Allowance * * * (g) Any Retirant who is receiving a disability retirement allowance shall be subject, prior to the normal retirement date, to re-examination by the Physical Examiners either upon request of the Retirant, the Board or the City Manager, and the Physical Examiners shall report their conclusions as to the continuance of the incapacity. In the event that such disability 5 shall not continue to incapacitate the Retirant for service acceptable to the City, in accordance with requirements of the Personnel Human Resources Department, the City Manager may require that such Retirant be returned to active duty at work which is the same or of similar nature to the work he performed prior to his incapacity, or returned to other work within the limits of his mental or physical capacities, at a rate of compensation not less than seventy percent (70%) of the pay to which he would have been entitled at the time of the Member's return to active service for the grade of service occupied by the Retirant prior to incapacity. Upon any such return to active duty, the Retirant shall be restored to service as a Member, the disability retirement allowance shall be terminated, the Member shall resume contributing to the Plan based on the earnings received upon reemployment, and the period during which the member was receiving a disability retirement allowance shall be included in creditable service for all purposes of the Plan. * * * Section 7. Effective March 18, 2006, Section 5.07 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is amended to read: 5.07 Death Benefits after Retirement (a) Upon receipt of evidence, satisfactory to the Board, of the death of a Retirant, a monthly pension shall be payable to the surviving spouse or domestic partner of the deceased Retirant, provided that the spouse had been married to the Retirant or the domestic partnership was registered on the date of retirement or termination of service, whichever occurred first, and for a least one (1) year prior to such date; and further provided, that if the Retirant had elected an option in accordance with Section 5.08 which was in effect at the time of his death, monthly benefits shall be continued after his death, in lieu of benefits under this section 5.07, in accordance with the option. (b) The monthly pension payable to the surviving spouse or domestic partner of a deceased Retirant pursuant to the foregoing paragraph of this Section 5.07 shall be equal to fifty percent (50%) of the retirement allowance which would have been payable to the deceased Retirant if the Retirant had been alive at the time of the monthly payment; provided, that, if the surviving spouse or domestic partner is more than fifteen (15) years younger than the deceased Retirant, such monthly pension shall be reduced to an amount which is the actuarial equivalent of such pension for a spouse exactly fifteen (15) years younger than the deceased Retirant. 6 (d) If there are no pension benefits payable to a surviving or domestic partner, child or children pursuant to paragraphs (a), (b) or (c) above, then the aforementioned pension shall be paid to the dependent parent, if any, of the deceased member. If both parents are dependent, such benefit shall be shared equally between them. (e) Notwithstanding any provision of this Section 5.07 to the contrary, in the event that an optional benefit had been elected by a Retirant in accordance with Section 5.07, and such election is in effect at the time of the Retirant's death, monthly benefits, if any, shall be payable after death to the person designated as the contingent annuitant in accordance with the optional election, and no benefits shall be payable as a result of the death of the Retirant under this Section 5.07. (d) For members of the Unclassified System who bec::1me members of this Plan on the effective date of this Ordinance, under no circumst::1nces shall ::1ny surviving spouse or domestic p::1rtner of a deceased Member or Retirant receive a pension if the surviving spouse remarries, or if the domestic partner registers as the domestic p::1rtner of any other person. Section 8. Subsection (c) of Section 5.07 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is amended to read: (c) If any such deceased Retirant is not survived by a spouse or domestic partner entitled to a pension in accordance with the foregoing paragraphs of this Section 5.07, or if the death of such a spouse or domestic partner occurs after pension payments have commenced in accordance with the foregoing paragraph, the pension which would otherwise have been payable to a surviving spouse or domestic partner eligible therefor and not more than fifteen (15) years younger than the deceased Retirant shall be payable to the dependent child or children of the said deceased Retirant, if any, divided in such manner as the Board in its discretion shall determine, to continue until every such child 1) marries or dies, or 2) attains eighteen (18) years of age or twenty-two (22) years of age in the case of a child who is a full- time student in high school or college; provided that, for children of Members in classifications within the /\FSCME bargaining unit, the pension shall continue to h':enty five (25) ye::1rs of age in the case of a child who is ::1 full time student in high school or college; provided that in the case of a physically or mentally disabled child, the pension shall continue until the child recovers from the disability. As used in this paragraph, a "physically or mentally disabled child" is one who 1) is unmarried, 2) is entitled to and receives a child's disability benefit based upon determination by the Social Security Administration that the child is unable to do any substantial gainful activity by reason of any medically determinable physical or mental impairment which 7 can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months and 3) was suffering from such impairment prior to attaining eighteen (18) years of age (or twenty-two (22) years of age in the case of a child who was a full time student in high school or college, or t\venty five (25) years of ::1ge in the case of a child who was a full time student in high school or college ::1nd is the child of a Member in a classification within the AFSCME b::1rg::1ining unit). Notwithstanding the foregoing, only children who were dependent beneficiaries of the Retirant on the date of retirement or termination of service, whichever is first, shall be eligible for a pension under this paragraph. Section 9. Subsection (b) of Section 5.11 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is amended to read: 5.11 Return to Active Service * * * (b) Should a Retirant, other than a disability Retirant restored to service in accordance with Section 5.04(g) 5.05(g), be employed by the City as an Employee, such Member's retirement benefit shall cease and the Member shall again become a Member of the Plan, but benefits payable with respect to the Member's earnings and creditable service after reemployment shall be based on the provisions applicable to a Member whose employment with the city commences on the date of reemployment. The Member shall contribute at the rate required, pursuant to Section 6.02, of Employees who become Members for the first time. An amount equal to the excess, if any, of the Member's Accumulated Employee Contributions at the time of his retirement over the amount of retirement benefits received shall be credited as Accumulated Employee Contributions as of the date of reemployment. Creditable service rendered before and after reemployment shall be considered for the purpose of determining entitlement to a normal or early service retirement allowance upon subsequent retirement. Upon subsequent retirement, the Member's retirement allowance shall be equal to the sum of the retirement allowance payable during the previous retirement, adjusted actuarially, if reemployment is prior to the normal retirement date, for the period from the date of reemployment to the date of subsequent retirement or normal retirement date, whichever occurs first, plus the amount computed as a retirement allowance on the basis of final average monthly earnings and creditable service for the period after the last date of reemployment; provided that the total retirement benefit shall not exceed the retirement allowance which would have been payable if all years of creditable service had been a continuous period. If an option had been 8 elected and in effect at the time of reemployment, the option shall continue to be in effect after reemployment, with respect to the retirement benefit payable prior to reemployment. * * * Section 10. Section 5.12 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is amended to read: 5.12 Early Retirement Incentive Program Effective upon the effective date of tfl.is Ordinance 2006-3504, a voluntary early retirement incentive program is established in accordance with this section 5.12. (a) fGf-mMembers of the Classified System who became members of this Plan on March 18. 2006 the effective date of this Ordinance, who are in classifications within the CWA bargaining unit,. aAG who entered the service of the City prior to February 21, 1994. and:- Such Members who are at least 48 years of age or who will attain age 48 within 90 ninety days following March 18, 2006. the effecti'.'e date of this Ordinance may elect to retire on or after March 18. 2006 the effective date of this Ordinance and before the expiration of ninety (90) days following such effective date, by submitting an irrevocable election in writing to the City prior to March 18. 2006 such effeotive date. The amount of the retirement benefit payable to Members so electing shall be equal to the pension benefit accrued by such Member at the time of retirement, with no reduction for early retirement. The early retirement incentive progr::1m provided in this Section 5.12 shall ::1pply to Members in cl::1ssific::1tions 'Nithin the AFSCME and GS/\ bargaining units upon ratification of a collective barg::1ining agreement that provides for such progr::1m. (b) Members of the Classified System who became members of this Plan on the effective date of this Ordinance. who are in classifications within the GSA bargaining unit. who entered the service of the City prior to August 1. 1993. and who are at least 48 years of age or who will attain age 48 within 90 ninety days following the effective date of this Ordinance. may elect to retire on or after the effective date of this Ordinance and before the expiration of ninety (90) days following such effective date. by submitting an irrevocable election in writing to the City prior to such effective date. The amount of the retirement benefit payable to Members so electing shall be equal to the pension benefit accrued by such Member at the time of retirement. with no reduction for early retirement. (c) Members of the Classified System who became members of this Plan on the effective date of this Ordinance. who are in classifications within the AFSCME bargaining unit. who entered the service of the City prior to April 30. 1993. and who are at least 48 years of age or who will attain age 48 within 90 ninety days following the effective date of this Ordinance. 9 may elect to retire on or after the effective date of this Ordinance and before the expiration of ninety (90) days following such effective date. by submitting an irrevocable election in writing to the City prior to such effective date. The amount of the retirement benefit payable to Members so electing shall be equal to the pension benefit accrued by such Member at the time of retirement. with no reduction for early retirement. Section 11. Effective March 18, 2006, Subsection (b) of Section 6.02 of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504 is amended to read: 6.02 Contributions by Members * * * (b) Notwithstanding subsection (a) above, all persons entering service with the City prior to April 1, 1993 who are in the classifications within the AFSCME bargaining unit; all persons entering service with the City prior to February 21, 1994 who are in classifications within the CWA (MBEBA) bargaining unit, and all persons entering service with the City prior to August 1, 1993 who are in classifications within the GSA bargaining unit or classified as "Other". who were members of the Classified Plan continuously from the date they entered service with the City until the effective date of this Ordinance, shall contribute to the Plan ten percent (10%) of their earnings throughout their service as a Member of this Plan. Section 12. Conflicts and Severability. (a) All Ordinances, and parts of ordinances, in conflict herewith shall be and the same, are hereby repealed. (b) In the event any article, section, paragraph, sentence, clause, or phrase of this Ordinance shall be adjudicated invalid or unconstitutional, such adjudication shall in no manner affect the other articles, sections, paragraphs, sentences, clauses or phrases of this Ordinance, which shall be and remain in full force and effect as fully as if the item so adjudged invalid or unconstitutional was not originally a part hereof. Section 13. Effective Date. This Ordinance shall become effective upon adoption, except as otherwise specifically provided herein. 10 PASSED and ADOPTED by the City Commission of the City of Miami Beach this ~ day of ~1?(>T~6~ 2006. Attest:~O ftAAt~ Robert Parcher City Clerk (Seal) APPROVED AS TO FORM & LANGUAGE a~CUOO~ 11 COMMISSION ITEM SUMMARY Condensed Title: An ordinance of the Mayor and City Commission of the City of Miami Beach, Florida, amending the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504; amending section 2.11 concerning the definition of earnings; amending section 4.05 concerning the purchase of credited service by certain members who previously had creditable service under the classified plan; creating a new section 4.06 concerning the purchase of creditable service for initial probationary period; amending section 5.01 concerning the normal retirement benefit; amending section 5.07 concerning death benefits after retirement; amending section 5.12 concerning the early retirement incentive program; amending section 6.02 concerning contributions by members; providing for severability; repealing all ordinances in conflict therewith; and providing an effective date. Ke Intended Outcome Su orted: Attract and maintain a quality workforce. Issue: These adjustments clarify the language to allow the City to apply the plan as originally described and designed and amends the ordinance to comply with the GSA and AFSCME negotiations Item Summa IRecommendation: Adopt the Ordinance on second and final reading Advisory Board Recommendation: I N/A Financial Information: Source of Amount Account Approved Funds: 1 D 2 3 4 OSPI Total Financial Impact Summary: The proposed amendments represent no financial changes to the original pension ordinance, since the original ordinance already accounted for these clarifications. Ci Clerk's Office Le islative Trackin Linda Gonzalez Si n-Offs: Department , or, Linda Gonzale Chief of Staff Ramiro Inguanzo City Manager py- tD ,.,. MIAMI BEACH AGENDA ITEM DATE ;<SA '1-~/-O~ <9 MIAMI BEACH City of Miomi leach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager J ~ September 21, 2006 (/ U AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE MIAMI BEACH EMPLOYEES' RETIREMENT PLAN CREATED BY ORDINANCE 2006-3504; AMENDING SECTION 2.11 CONCERNING THE DEFINITION OF EARNINGS; AMENDING SECTION 4.05 CONCERNING THE PURCHASE OF CREDITED SERVICE BY CERTAIN MEMBERS WHO PREVIOUSLY HAD CREDITABLE SERVICE UNDER THE CLASSIFIED PLAN; CREATING A NEW SECTION 4.06 CONCERNING THE PURCHASE OF CREDITABLE SERVICE FOR INITIAL PROBATIONARY PERIOD; AMENDING SECTION 5.01 CONCERNING THE NORMAL RETIREMENT BENEFIT; AMENDING SECTION 5.07 CONCERNING DEATH BENEFITS AFTER RETIREMENT; AMENDING SECTION 5.12 CONCERNING THE EARLY RETIREMENT INCENTIVE PROGRAM; AMENDING SECTION 6.02 CONCERNING CONTRIBUTIONS BY MEMBERS; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND PROVIDING AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION: SUBJECT: Adopt the Ordinance on second and final reading. BACKGROUND: On March 8, 2006, the Mayor and City Commission adopted the Miami Beach Employees' Retirement Plan (MBERP) ordinance. This ordinance became effective on March 18, 2006. Due to the extensive nature of the ordinance which merged the Classified and Unclassified Retirement Systems, it came to the City's attention that minor language clarification was needed on some issues outlined in the ordinance. In addition, due to successful negotiations with two (2) of the City's remaining civilian bargaining units, the Government Supervisors Association (GSA) and the American Federation of State, County and Municipal Employees (AFSCME), there is a need to amend the ordinance in order to provide the same early retirement incentive (early out) that was originally provided to the Unclassified employees and Communications Workers of America (CWA) bargaining unit. The first reading of the amended ordinance took place on September 6, 2006. Teshnisal Ctlanges on Second Reading: The ordinanoe on second reading contains teohnical ohanges in Seotion 1, olarifying the buy back of probation::1ry time is avail::1ble to any member 'Nho did not reoeive oredit under a City retirement plan, other than a Section Agenda Item Date R5""A q-:2.J-OCJ 457 plan, during their initial probationary period. In addition, the time for the buyback of probationary time is extended to 1 year from the effective date of the ordinance, or 1 year from the date of initial membership in the plan, whichever occurs later. Replacement language: Technical Chanaes on Second Readina: The ordinance on second reading contains technical changes in Section 4. clarifying that the buy back of provisional or probationary time is available to any member who did not receive credit under a City retirement plan. other than a Section 457 plan. during the provisional or probationary period. A member may purchase the provisional or probationary time at any time prior to retirement. by paying the member contribution in effect during the provisional or probationary period. plus interest. The following are the amendments to the ordinance: . The intent of the original ordinance was to treat all "Tier A" employees the same with respect to the normal retirement benefit. Section 5.01 (b) (4) [normal retirement benefit] is clarified to include a reference to employees classified as "Others" who became members of the classified plan prior to August 1, 1993. The "Others" group, refers to those employees who are not represented by any bargaining unit. This will ensure that these employees are treated in the same manner as other Tier A members of the classified plan. . The ordinance provides a buy-back option for City service for unclassified employees who were previously members of the Classified Plan, and were promoted to an unclassified position without a break in service before becoming vested in the Classified Plan (section 4.05). Such members will now be able to buy service under the MBERP for the period they participated in the Classified Plan, by paying the same rate as that required for the two (2) year buy-back provision under section 4.03 (10% of pensionable earnings for each year purchased, plus interest). . The intent of the original ordinance was to continue to allow employees to buy service credit for their initial probationary period with the City. Members will be allowed to buy this service only if they have not already received credit for it under a City retirement plan. . The ordinance extends the same early retirement incentive (section 5.12) to members of the GSA and AFSCME bargaining units which were provided to members of the CWA unit under the original ordinance. This will allow GSA members who were employed prior to February 21, 1994 and AFSCME members who were employed prior to April 30, 1993, and who are at least 48 years old to retire with unreduced benefits. · The intent of the original ordinance was to treat all "Tier A" employees similarly with respect to the amount of the pension contribution. Section 6.02 [member contributions] - is clarified to state that members of the GSA bargaining unit and "Others" who joined the classified plan prior to August 1, 1993 (Le., Tier A members) contribute 10% to the new plan -- the same as other Tier A members. · Section 5.07 (Death Benefits After Retirement) is amended to delete a subsection that was previously deleted from the Unclassified Plan in Ordinance 95-3014, and should not have been included in the new pension plan. · Section 2.11 is amended to relocate a sentence regarding Internal Revenue Code requirements (this is a non-substantive change). 2 . The ordinance amends the death benefit for the AFSCME bargaining unit to make it the same as the CWA and GSA bargaining units, by changing the eligibility age for dependent children from twenty-five (25) to twenty-two (22). . Section 4.04 corrects the numbering of the section only and makes no substantive changes. . Section 5.11 (b) corrects the reference from Section 5.04 (g) to Section 5.05 (g). . Section 5.05 (g) changes the department name from Personnel Department to Human Resources Department. These adjustments clarify the language to allow the City to apply the plan as originally described and designed and amends the ordinance to conform to the GSA and AFSCME agreements. CONCLUSION The Administration recommends adopting the ordinance on second and final reading, amending the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504; amending Section 2.11 concerning the definition of earnings; amending Section 4.05 concerning the purchase of credited service by certain members who previously had creditable service under the classified plan; creating a new Section 4.06 concerning the purchase of creditable service for their initial probationary period; amending Section 5.01 concerning the normal retirement benefit; amending Section 5.07 concerning death benefits after retirement; amending Section 5.12 concerning the early retirement incentive program; amending Section 6.02 concerning contributions by members; providing for severability; repealing all ordinances in conflict therewith; and providing an effective date. JMG\RI\~pn F:llabolLABORRELILabor RelationslCommission MemoslCommission Memo - second reading - 9-21-06 MBERP Amendment Revision.doc 3 CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARING 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 Thursday, September 21,2006, to consider the following: )(5:03 p.m. An Ordinance Amending The Miami Beach Employees' Retirement Plan Created By Ordinance 2006-3504; Amending Section 2.11 Concerning The Definition Of Earnings; Amending Section 4.05 Concerning The Purchase Of Credited Service By Certain Members Who Previously Had Creditable Service Under The Classified Plan; Creating A New Section 4.06 Concerning The Purchase Of Creditable- Service By Members Who Participated In A Section 457 Plan During Their Initial Probationary Period; Amending Section 5.01 Concerning The Normal Retirement Benefit; Amending Section 5.07 Concerning Death Benefits After Retirement; Amending Section 5.12 Concerning The Early Retirement Incentive Program; Amending Section 6.02 Concllrning Contributions By Members; Providing For Severability; Repealing All. Ordinances In Conflict Therewith. . Inquiries may be directed to the labor Relations Department at (305) 673-7009. 5:03 p.m. An Ordinance Amending Ordinance No. 789, The Classified Employees Salary Ordinance Of The City Of Miami Beach, Florida, Providing For The Classifications In Group II, Represented By The Fraternal Order Of Police (FOP) In Accordance With The Negotiated Agreement; Effective In The First Pay Period Ending In October Of 2006, There Shall Be An Across The Board Wage Increase Of Six Percent (6%), And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Six Percent (6%); Effective With The First Pay Period Ending In October Of 2007, There Shall Be An Across The Board Wage Increase Of Five Percent (5%), And The Minimum And The Maximum Of Each Pay Range Will Also Be Increased By Five Percent (5%); Effective In The First Pay Period Ending In October 2008, There Shall Be An Across The Board Wage Increase Of Four Percent (4%), And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Four Percent (4%); Repealing All Ordinances In Conflict. Inquiries may be directed to the Human Resources Department at (305) 673-7520. 5:03 p.m. An Ordinance Amending Ordinance No. 789, The Classified Employees Salary Ordinance Of The City Of Miami Beach, Florida. Providing For The Classifications In Group I, Being Those Classifications Covered By The American Federation Of State. County And Municipal Employees (AFSCME) Local No. 1554, In Accordance With The Negotiated Agreement; Effectille In The First Pay Period Ending In May Of 2007, There Shall Be An Across The Board Wage Increase Of Six Percent (6%), And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Six Percent (6%); Effective With The First Pay Period Ending In May Of 2008, There Shall Be An Across The Board Wage Increase Of Five Percent (5%), And The Minimum And The Maximum Of Each Pay Range Will Also Be IncreasedBy Five Percent (5%); Effective In The First Pay Period Ending In May 2009, There Shall Be An Across The Board Wage Increase Of Four Percent (4%), And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Four Percent (4%); Repealing All Ordinances In Conflict. Inquiries may be directed to the Human Resources Department at (305) 673-7520. 5:03 p.m. An Ordinance Amending Ordinance No. 789, The Classified Employees Salary Ordinance Of The City Of Miami Beach, Florida, Providing For The Classifications In Group V, Being Those Classifications Covered By The Government Supervisors Association Of Florida, OPIEU Local 100, (GSAF), In Accordance With The Negotiated Agreement; Effective In The First Pay Period Ending In October Of 2006, There Shall Be An Across The Board Wage Increase Of Six Percent (6%), And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Six Percent (6%); Effective With The' First Pay Period Ending In October Of 2007, There Shall Be An Across The Board Wage Increase Of Five Percent (5%), And The Minimum And The Maximum Of Each Pay Range Will Also Be Increased By Five Percent (5%); Effective In The First Pay Period Ending In October 2008, There Shall Be An Across The Board.Wage Increase Of Four Percent (4%). And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Four Percent (4%); Repealing All Ordinances In Conflict. Inquiries may be directed to.the Human Resources Department at (305) 673-7520. 5:03 p.m. . An Ordinance Amending Ordinance No. 789, The Classified Employees Salary Ordinance, For Classifications In Group VI, Being All Other Classifications In The Classified Service Not Covered By A Bargaining Unit; Providing For All Employees In Group VI, "Others", Effective In The First Pay Period Ending In May Of 2007, There Shall Be An Across The Board Wage Increase Of Six Percent (6%), And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Six Percent (6%); Effective With The First Pay Period Ending In May Of 2008, There Shall Be An Across The Board Wage Increase Of Five Percent (5%). And The Minimum And The Maximum Of Each Pay Range Will Also Be Increased By Five Percent (5%); Effective In The First Pay Period Ending In May 2009, There Shall Be An Across The Board Wage Increase Of Four Percent (4%), And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Four Percent (4%). Inquiries may be directed to the Human Resources Department at (305) 673-7520. 5:03 p.m. An Ordinance Amending Ordinance No. 1605, The Unclassified Employees Salary Ordinance; Providing For Cost-Of-Living Adjustments (COlA) For All Unclassified Employees, Effective In The First Pay Period Ending In May Of 2007, There Shall Be An Across The Board Wage Increase Of Six Percent (6%). And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Six Percent (6%); Effective With The First Pay Period Ending In May Of 2008, There Shall Be An Across The Board Wage Increase Of Five Percent (5%), And The Minimum And The Maximum Of Each Pay Range WiIIAlso Be Increased By Five Percent (5%); Effective In The First Pay Period Ending In May 2009, There Shall Be An Across The Board Wage Increase Of Four Percent (4%), And The Minimum And Maximum Of Each Pay Range Will Also Be Increased By Four Percent (4%)Further, By Establishing The Classifications Of Administrative Manager, Assistant Ice Rink Manager, Building Permitting Information Analyst I, Building Permitting Information Analyst II, Building Records Manager, Contracts Compliance Specialist, Development Review Services Coordinator, Geographic Information System Manager And Storage Area Network Architect; Amending The Title And Grade Of The Classification Of Streets & Lighting Superintendent And Grades Of The Classifications Of Assistant Building Director, Tourism & Convention Director And Property Management Contracts Coordinator. Inquiries may be directed to the Human Resources Department at (305) 673-7520. 5:03 p.m. An Ordinance Amending Chapter 14 Of The City Code, Entitled "Building Regulations" Amending Division II Therein, Entitled "Permit Fees"Amending Sections 14-426 Therein, Entitled "Annual Facility Permit"Amending Subsection 14-426(3)(G) Therein, Providing For Certificate Of Use Fees; Said Amendment Changing That Certain Established Period For The City To Determine The Corresponding Increase In Fees For Certificates Of Use, From The "Effective Date"Of October 1, 2006 (Fiscal Year 2006- 07) To The New Effective Date Of October 1, 2007 (Fiscal Year 2007-08); And Providing Further ThatThe Period To Determine Said Certificate Of Use Fee Increase (To Commence On The Effective Date Of October 1, 2007) Shall Also Be Amended To Provide That The Fee Shall Be Increased By A Percentage Equal To The Cumulative Change In The Consumer Price Index (CPI) Measured Between March 2003 To April 2007. Inquiries may ~e directed to. Finance Department at (305) 673-7466. INTERESTED PARTIES are invited to appear at this meeting, or be represented by an agent, or to express their views in writing addressed to the City Commission, c/o the City Clerk, 1700 Convention Center Drive, 1 st Floor, City Hall, Miami Beach, Florida 33139. Copies of these ordinances are available for public inspection during normal business hours in the City Clerk's Office, 1700 Convention Center Drive, 1 st Floor, City Hall, and Miami Beach, Florida 33139. This meeting may be continued and under such circumstances additional legal notice would not be provided. Robert E. Parcher, City Clerk City of Miami Beacli Pursuant to Section 286.0105, Fla. Stat., the' City hereby advises the public that: if a person 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 no,i(:e does not constitute consent by the City for the introduction or admissi(jn of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or appeals not otherwise allowed by law. ~I 1.0 o o N g a: w co :E: w I- a. w Vl :.: <( o Z :::l Vl Cl ... :i w % i: <C i: w % ~ E o u -c::i ~ <II :J: 'E Itl :i CD I: