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97-3071 ORD ORDINANCE NO. n-3071 AN ORDINANCE OF THE MA YOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE 88-2603 WHICH CREATED THE UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS RETIREMENT SYSTEM BY ALLOWING MEMBERS OF THE SYSTEM TO PURCHASE CREDITABLE SERVICE TIME FOR PREVIOUS PERIODS OF EMPLOYMENT OF THE CITY, PROVIDING FOR A REPEALER, SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE. Whereas, the Mayor and City Commission established a retirement system for unclassified employees and elected officials of the City with the adoption of Ordinance 88-2603; and Whereas, such retirement system did not have a provision to allow members of the system to buy back creditable service time for periods when they previously had been employed by the City and were a member of this system or its predecessor system; and Whereas, certain members of the system have such creditable service time and have asked for the ability to purchase such previously earned service time. NOW, THEREFORE, BE IT ORDINAND BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: Section 1 That Section 4.01 be amended as follows: W Each Employee or Elected Official who becomes a Member of the Unclassified System on April 1, 1988, shall be credited under the Unclassified System for creditable service for which he-htts they were credited as of such date under the Predecessor System. Each Member of the Unclassified System shall be credited with service rendered after the effective date of this Ordinance with respect of which he hag they have made contributions to the Unclassified System in accordance with Section 6.02. The creditable service of a Member shall not include service rendered prior to the date as of which-he they elected to receiv~ their Accumulated Employee Contributions in accordance with Section 5.07(a). ill} Any Member shall have a ninety (90) day period beginning on the effective date of this Ordinance or ninety (90) days from their becoming a Member during which time they may purchase any prior service time previously earned in a previous period of employment for which they received compensation in the Unclassified System or the predecessor System in accordance with Section 4.01( C) below. i....CJ Each Member who elects to acquire additional creditable service time in accordance with Section 4.01(B) shall pay to the Unclassified System an amount often percent (10%) of the compensation received during the creditable service time to be purchased plus interest on said amount at the rate of return assumed by the System if service was rendered under the Predecessor System. For service time to be purchased for creditable service rendered in this System. the Member shall repay the amount they received under Section 5.07 plus interest at the rate of return assumed by the System. Section 2 Repealer All Ordinances or parts of Ordinances in conflict herewith shall be and the same are hereby repealed. Section 3 Severability 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 articles, sections, paragraphs, sentences, clauses or phrases of this Ordinance, which shall remain in force and effect as fully as if the item adjudged invalid or unconstitutional was not originally a part hereof. 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 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 5 Effective Date This Ordinance shall take effect ten days after its adoption on second reading. Passed and Adopted by the Mayor and City Commissio Florida this 19th day of February, 1997. APPROVED AS TO FORM & lANGUAGf & FOR EXECUTION Attest: k 0 luA.d-' -P lM. ~ City Clerk First Reading 2/5/97 Second Reading 2/19/97 1Ji~' f--l~~~7 Date CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. \ oct -'t] February 19, 1997 To: Mayor Seymour Gelber and Members of the City Commission Subject: Jose GarCia_pedrosl City Manager SECOND READIN UBLIC HEARING - AMENDMENT TO THE UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS RETIREMENT SYSTEM PROVIDING FOR THE PURCHASE OF PRIOR CREDITABLE SERVICE From: Administrative Recommendation The Administration recommends that the Mayor and City Commission approve on second reading after holding a public hearing, the proposed amendment to the Unclassisfied Employees and Elected Officials Retirement System providing for the Purchase of Prior Creditable Service. The first reading was held on February 5, 1997. Background At the time that the Unclassified Employees and Elected Officials Retirement System was created there was no provision included for the purchase of creditable service time when there was a break in service. This amendment will allow those employees to purchase credit for this period of service when they had previously been employed by the City and separated their service. Analysis There are five persons who would be eligible to purchase creditable service time under this amendment. The payment required would be equal to ten percent (10%) of the earnings during the period of service to be purchased plus interest, at the assumed rate of return of the system (currently 9%) from the date of such service. A list of the persons, the time to be purchased, their approximate cost and the approximate value to them monthly on their retirement is presented below: Date ~6A ~-I~ Agenda Item Time in Approximate Retirement Name Years Cost Value Sy Eisenberg 2.7 2,970 40 Lisa Dixon 5.6 48,500 615 Randy Marks .8 9,380 113 John Garvey 1.7 13,900 230 Sugar Firte1 1.0 4,670 155 The actuary for the System has estimated that this amendment would have no effect on the cost of the System. The same impact is estimated on the System from making this benefit available to future Members of the System. Conclusion As the persons who would benefit from the correction of this oversight dating back to the creation of the System would be paying more than half of the cost and there is no annual cost to the City, this amendment should be approved. JGP/RJN/cp (O CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FL 33139 OFFICE OF THE CITY CLERK TELEPHONE # 673-7411 ROBERT E.PARCHER FAX # 673-7254 CITY CLERK RESEARCH REQUESll.QRM RECEIVED BY: FAX # DATE: NAME: DEP ARTMENT NAME OR ADDRESS: I I TIME: PHONE# .. REQUEST SUBJECT: RELEV ANT DA TES/ORDIRESO #'S CERTIFIED NEEDED: Y N PHOTO COPY(S) REQUIRED Y N VIDEO I ARCHIVE REQUEST ASSIGNED TO: MEETING DATE: COMPLETED BY: ITEM # OR SUBJECT: _DATE I TIME COMPLETED: ITEM # TIME: DATE I TIME FAXED: COST CHARGED FOR REQUEST ORVIDEO: $_ WALK IN: Y N COME TO REVIEW: Y N NOTIFY BY PHONE: Y N INTER-OFFICE: Y N COMMENTS: FAX TRANSMITTAL FORM TO: ATIN: MEMO: FROM: IF FAX IS NOT COMPLETE CALL 673-7411 NUMBER OF PAGES INCLUDING THIS FORM f.IClER\SAl L VOHN\FORMSIRES RHFAX,