98-3154 ORD
ORDINANCE NO. 98-3154
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 78 OF THE
MIAMI BEACH CITY CODE ENTITLED "PERSONNEL", BY AMENDING
ARTICLE IV ENTITLED "POLICE OFFICERS' AND FIREFIGHTERS'
SUPPLEMENTAL PENSION", BY AMENDING DIVISION 4 ENTITLED
"BENEFITS", BY AMENDING SECTION 78-276 ENTITLED "SERVICE
AND DISABILITY BENEFITS FOR MEMBERS WHO WERE EMPLOYED
BY THE CITY PRIOR TO MAY 19,1993" BY PROVIDING FOR A RULE OF
70 RETIREMENT WHERE THE SUM OF THE MEMBER'S AGE AND
CREDITABLE SERVICE EQUALS TO AT LEAST SEVENTY (70), AND BY
AMENDING DIVISION 1 ENTITLED "GENERALLY", BY AMENDING
SECTION 78-195 ENTITLED "LIMITATIONS AND BENEFITS" TO
PROVIDE FOR THE RULE OF 70 RETIREMENT CONSISTENT WITH ALL
APPLICABLE FEDERAL CODES, REGULATIONS AND ACTS;
PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES IN
CONFLICT THEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1.:
That Section 78-276 entitled "Service and disability benefits for members who were employed by the City
prior to May 19, 1993" of the City Code is hereby amended as follows:
Sec. 78-276. Service and disability benefits for members who were employed by the city prior
to May 19, 1993.
(a) The Board shall, upon application, retire members meeting anyone of the following
requirements:
(1) The attainment of age Fifty (50) years.
(2) Permanent and total disability incurred in the line of duty in the Police or Fire
Department, or in the Unclassified Service as provided in Section 18 hereof,
irrespective of the number of years of service.
(3) Permanent and total disability incurred other than in the line of duty, after five (5)
years of creditable service.
(~ The sum of the member's ace and creditable service equals at least seventy (70)
and the member retires on or after October 1. 1998.
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(b) A member shall be entitled to receive, U~Ofl rctircR'lcFlt after tRC attaiflR'lCflt of agc 60, or upon
retirement under the provisions of subsection (a) (2) or (3), a monthly pension payable for life equal
to subsection (b)( 1) plus subsection (b )(2), reduced by subsection (b) (3) of this section as follows:
(1) Three percent of the average monthly salary or wages of the member for each year
of the first 15 years of creditable service, being computed as to a part of a year on
a pro rata basis to the nearest month; plus
(2) Four percent of the average monthly salary or wages of the member for each year
of creditable service in excess of 15 years, being computed as to a part of a year on
a pro rata basis to the nearest month; reduced by
(3) The base system benefit.
(c) If a service retirement pension becomes payable under this supplemental system prior to the
date the service retirement pension is payable under the base system, the member's pension payable
hereunder shall be recomputed at such time as the base system benefit becomes payable to reflect
payment of such benefit.
(d) For purposes of determining a member's benefit under this supplemental system, the average
monthly salary or wages of the member shall be based on the average of the two highest paid years
of the member prior to the date of retirement or termination. For purposes of such calculation, salary
or wages shall be computed on the salary or wages upon which the member's contribution to the
supplemental system was computed, as defined in Section 78-182. Notwithstanding that definition,
however, with respect to a member retiring before October 1, 1994, the inclusion of overtime in the
two highest-paid years shall be limited in each year to an amount which is equal to the difference
between the member's annualized pay rate at the time of retirement or termination and the highest
annualized pay rate for the next higher salary rank. With respect to a member retiring on or after
October 1, 1994, the inclusion of overtime in the two highest-paid years shall be limited in each year
to an amount which is equal to 70 percent of the difference between the member's annualized pay
rate at retirement and the highest annualized pay rate for the next higher salary rank; provided,
however, that in no event shall such a member's accrued benefit on his date of retirement be less
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than the benefit he had accrued as of September 30, 1994, determined under the terms of the
supplemental system in effect on that date.
(e) The benefits provided hereinabove shall not be more than 90 percent of the member's
average monthly salary or wages as defined in subsection (d) of this section, reduced by the base
system benefit..
* * *
SECTION 2.
That Section 78-195 entitled "Limitations on benefits" of the City Code is hereby amended as follows:
Sec. 78-195. Limitations on benefits.
(a) In addition to the other limitations set forth in this supplemental system and notwithstanding
any other provision of this supplemental system, the pension payable under this supplemental system
shall not increase to an amount in excess of the amount permitted under section 415 of the Internal
Revenue Code, with such limitation specifically subject to subsections (r) ana (C) (F)' (m, and (I) of
section 415(b)(2) of the Internal Revenue Code and Sections 415(b)(11), 415(k)(3) and 425(1'1) of said
Code.
(b) For purposes of applying the limitations of section 415 of the Internal Revenue Code, the term
"compensation" shall be determined by reference to the provisions of subsections (1) and (2) of title
26 of the Code of Federal Regulations, section 1.415-2(d), as modified by subparagraph (10) of that
regulation and by section 1434(a) of the Small Business Job Protection Act of 1996.
Section 3.
REPEALER
All ordinances or parts or ordinances in conflict herewith be and the same are hereby repealed.
Section 4.
SEVERABILITY
If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall
not be affected by such invalidity.
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Section 5.
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 relettered to
accomplish such intention, and the word "ordinance" may be changed to "section", "article," or other
appropriate word.
Section 6.
EFFECTIVE DATE
This Ordinance will have an effective date of the 1 st day of October, 1998.
PASSED AND ADOPTED this 18th day of November 1998.
1//117
MAYOR
ATTEST:
~~ PlUcL--
CITY CLERK
1st reading 11/4/98
2nd reading 11/18/98
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
111.. ~LrJ/J-.'f'j)(
itV' ttomev Date
4
~ITY OF MIAMI BEACH
ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
~tp :\\cLm iami-beach. fl. us
COMMISSION MEMORANDUM No.7/3 - 9 ~
TO:
Mayor Neisen O. Kasdin and
Members of the City C mmission
DATE: November 18, 1998
FROM: Sergio Rodriguez.
City Manager
SUBJECT: AN ORDINA CE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 78 OF THE
MIAMI BEACH CITY CODE ENTITLED "PERSONNEL", BY AMENDING
ARTICLE IV ENTITLED "POLICE OFFICERS' AND FIREFIGHTERS'
SUPPLEMENTAL PENSION", BY AMENDING DIVISION 4 ENTITLED
"BENEFITS", BY AMENDING SECTION 78-276 ENTITLED "SERVICE
AND DISABILITY BENEFITS FOR MEMBERS WHO WERE EMPLOYED
BY THE CITY PRIOR TO MAY 19, 1993" BY PROVIDING FOR A RULE
OF 70 RETIREMENT WHERE THE SUM OF THE MEMBER'S AGE AND
CREDITABLE SERVICE EQUALS TO AT LEAST SEVENTY (70), AND BY
AMENDING DIVISION 1 ENTITLED "GENERALLY", BY AMENDING
SECTION 78-195 ENTITLED "LIMITATIONS AND BENEFITS" TO
PROVIDE FOR THE RULE OF 70 RETIREMENT CONSISTENT WITH
ALL APPLICABLE FEDERAL CODES, REGULATIONS AND ACTS;
PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES IN
CONFLICT THEREWITH; AND PROVIDING FOR AN EFFECTIVE DA TK
ADMINISTRATION RECOMMENDATION:
Adopt the Ordinance.
BACKGROUND:
The first reading of the Ordinance took place on November 4, 1998.
Negotiators for the City and the International Association of Firefighters (IAFF) and Fraternal Order
of Police (FOP) bargaining units recently concluded negotiations for a three year collective
bargaining agreement that is effective from October 1, 1997 through September 30, 2000. The City
Commission ratified the FOP Agreement on July 15, 1998, and the IAFF Agreement on
September 23, 1998.
continued.. .
AGENDA ITEM
tZsc
11-1~-9~
DATE
COMMISSION MEMORANDUM
PAGE 2
A benefit negotiated by these two bargaining units for their members is the "Rule of 70" provision,
effective as of October 1. 1998. The "Rule of 70" benefit provides that Plan members may be
eligible to retire when their age and years of service equals 70. This benetit was conditioned upon
the Police and Firetighters Pension Board adopting a "fresh start" method that values plan assets at
100% of their current market value. That change reduced the City's Fiscal Year 1998/1999 plan
contribution by $4.000,000.
Attached is an Ordinance amending Ordinance No. 89-2640, which effectuates the "Rule of 70"
benefit negotiated by the parties.
Also attached is a copy of the October 15, 1998, letter from Zanese B. Duncan. the Consulting
Actuary for Buck Consultants. Ms. Duncan has estimated that the implementation of the "Rule of
70" benefit will increase the City's annual cost to the Supplemental Plan by approximately $854,000.
The increase will become effective in Fiscal Year 1999/2000.
CONCLUSION:
The Administration recommends that the City Commission adopt the attached Ordinance.
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SR:RWB:lsg
Attachments
a:\Comm-mem498\RULE70-2.0RD