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Ordinance 498 ORDINANCE NO. 498 AN ORDINANCE OF THE CITY OF MIAMI BEACH, FLORIDA, ESTABLISHING A PENSION, ANNUITY AND RETIREMENT SYSTEM FOR EMPLOYEES IN THE SERVICE OF THE SAID CITY OF MIAMI BEACH; PROVIDING FOR DISABILITY AND DEATH BENEFITS; PROVIDING FOR CONTRIBUTION TO THE COST THEREOF ON AN ACTUARIAL BASIS; PRO- VIDING FOR THE MANNER IN WHICH EMPLOYEES MAY COME UNDER THE OPERATION OF SAID SYSTEM; PROVIDING FOR RE-PAYMENT TO MEMBERS LEAVING THE SERVICE OF SAID CITY; PROVIDING FOR THE INVESTMENT OF FUNDS CREATED UNDER SAID SYSTEM; PROVIDING FOR THE AD- MINISTRATION AND OPERATION OF SAID SYSTEM AND PRO- VIDING FOR THE SUBMISSION OF THIS ORDINANCE TO A REFERENDUM OF QUALIFIED VOTERS OF SAID CITY; PRO- VIDING WHEN THIS ORDINANCE SHALL TAKE EFFECT, AND OTHER MATTERS RELATING THERETO. BE IT CRDAI :ED BY THE CITY COUNCIL OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. The following words and phrases when used in this Ordinance shall for the purpose of this Ordinance DEFINITIONS have the meanings respectively ascrbiedto them in —'� this Section; except in those instances where the context clearly regi .ices a different meaning: A. Retirement System: Shall mean the system of pensions for employees of the City of Miami Beach, as defined in Section 3 of this Ordinance. B. Employee: Shall mean any regular and permanent officer, agent, servant or employee of the City, but shall not include members of the City Council, members of boards and commissions, officers and employees who receive no salary or a nominal salary. In all cases in which the above definition of employee requires interpretation, the Pension Board shall decide who is an employee within the intent of this Ordinance. C. Member: Shall mean any person included in the membership of the Retirement System, as provided in Section 3. D. Board: Shall mean the Board of Trustees of the Retirement System provided in Section 5 of this Ordinance to administer the Retirement System. E. City: Shall mean the City of. Miami Beach, Florida. F. Council : Shall mean the Council of the City. G. Physical Examiners: Shall mean the physicians provided for in Sub-Section 5. L. of this Ordinance. H. Service: Shall moan service as an employee as described in Sub-Section 1. B. , and for which, as such, compensation is paid by the City. I. Prior Service: Shall mean service rendered prior to the 1st day of March, 1938, for which credit is allowed under the provisions of Section 4 and Section 6 of this Ordinance. -1 J. Membership Service: Shall mean service as an employee, rendered since last becoming a member, except as provided in Sub-Section 6. B. a. bb. K. Creditable Service: Shall mean prior service plus membership service for which credit is allowable as provided in Sub-Section -. F. of this Ordinance. L. Pensioner: Shall mean any person in receipt of a Pension, Annuity, a Retirement Allow- ance, or other benefit as provided by the Retire- ment System. M. Regular Interest: Shall moan interest at three (3) per cent per annum, annually compounded. N. Accumulated Contributions: Shall mean the sum of all the amounts de- ducted from the compensation of a member and cred- ited to his individual account in the Annuity Savings Fund, together with regular interest therein as provided in Sub-Section 8. A. a. of this Ordinance. 0. Average Compensation: Shall mean the average annual compensation paid or salary earnablc by a member during his period of service as an employee of the City, during his membership in the Retirement System. P. Earnablet Shall include all usual compensation in whatever manner paid, such as lodging, subsistence, etc. , except clothing and medical allowances. In cases where compensation is not all paid in money, the Board shall fix the value of that part of the compensation not paid in money. Q. Annuities: Shall mean payments for the normal life expectancy of a member derived from his accumulated contributions. All annuities shall be paid in equal monthly installments. R. Pension: Shall mean payments for life derived from money provided by the City of Miami Beach, Florida. All Pensions shall be paid in equal monthly installments. The Pension payable Ito any beneficiary shall not exceed Two Thousand '$ 2,000.00) Dollars per annum. S. Retirement: Shall mean withdrawal from active service with a Retirement Allowance granted by the Board in pursuance of the provisions of the Retirement System. T. Retirement Allowance : Shall mean the amount of the Annuity plus the amount of the Pension. U. Annuity Reserve: Shall mean the present value of all payments to be made on account of any Annuity or any benefit in lieu of any Annu- ity computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees, plus regular interest as defined in Sub-Section 1. M. V. Pension Reserve: Shall mean the present value of all payments to be made on account of any Pension or any benefit in lieu of any Pension, computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees, plus regular interest as defined in Sub-Section 1. M. -2- W. The masculine pronoun shall include the feminine pronoun. SECTION 2. A Retirement System for employees of the City of Miami Beach, Florida, is hereby established and placed under PURPOSE the direction of the Board of Trustees of the Retire- ment System for the purpose of providing Retirement Allowances, Disability Allowance and/or Death Benefits under the provisions of this Ordinance, for employees of the municipality. The Retirement System shall begin operation as of the 1st day of March, 1938. SECTION 3. A. The membership shall consist of the following persons: MEMBERSHIP a. Those who become permanent or regular employees of the City on or after the 1st day of March, 1938, shall become members of the Retirement System. b. Those permanent or regular employees in the service of the City on the 1st day of March, 1938, may become members as of the 1st day of March, 1938, if before the let day of May, 1938, any such e 1ployee shall submit to the Board, in accordance with a form prescribed by said Board, a notice of his election to be covered in the membership of the Retirement System. B. An employee whose membership in the Retirement System is contingent upon his choice may apply for and be admitted to membership at such time as he may elect, but no such employee shall receive prior service credit unless he becomes a member of the Retirement System on or before the 1st day of May, 1938. C. Should fl,ny member in any period of six (6) con- secutive years after last becomin - a member, be absent from service more than five (5) years, or should he withdraw his accumulated contributions, or should ho become a beneficiary, or should he die, he shall thereupon cease to be a member of the Retirement System. D. It shall be the duty or the City Manager to submit to the Board a statement showing the name, total compensation, duties, date of birth, length of service and such other information regarding such employees of the City as the Board may require. The Board shall then place eachperson eligible to membership in the Retirement System in a group to be designated by the actuary accordingly as their classification shall make necessary for soundactuarial calculations . The Board shall be empowered to reclassify any member, changes in the duties of whom shall so require. SECTION 4. A. Under such regulations as the Board shall adopt, each member who was not an employee on the 1st SERVICE day of March, 1938, but who, as an employee, served CREDITABLE any portion of the year preceding the 1st day of March, 1938, and who becomes a member before the let day of March, 1939, shall file a detailed statement of all service as a.n employee rendered by him prior to the 1st day of March, 1938, for which he claims credit and of such other facts as the Board may require for the proper operation of tho Retirement System. B. The Board shall fix and determine by appropriate regulations how much service in any one year is to be considered as a year' s service for the purpose of prior service credit, and in no case shall more than one (1) year of service be creditable f_for all service in one (1 ) calendar year. The Board shall not allow credit as service for any period during which the employee was absent without pay longer than one (1) month. -3- C. Subject to the above qualifications and to such restrictions as the Board may adopt, the Board shall investigate and verify as soon as practicable after the filing of such statements of service by the employee, the service therein claimed. D. Upon verification of the statements of service, the Board is empowered to issue prior service certificates allocating to each member the length of prior service rendered which is creditable toward the requirements of the Pension System. So long as the employee continues to be a member of the Pension System, the said prior service certificate shall be final and conclusive as to such service as regards retirement purposes; provided, however, that any mem- ber may, within one (1) year from the date upon which such certificate is issued or within one (1) year from the date at which any modification is made in such certificate, request the Board to modify or correct his prior service certificate. E. When the employee of his own volition, or. through discharge by the City for unsatisfactory service or action, absolves his connection with the Retirement System, the aforesaid prior service certificate shall become null and void, and in the event of re-entry into the Pension System such employee shall not be entitled to any prior service credit whatsoever. F. Creditable service at the time of retirement upon which the retiring allowance for a member is based shall consist of service rendered by the retirant since last becoming a member, except as proviel cd in Sub-Section 6. B. a. bb. ; and also, if he has a prior service certificate which is at the time of his retire- ment in full force and effect, the amount of the ser- vice certified on his prior service certificate. SECTION 5. A. The general administration and the responsibility for the proper operation of the Retirement System ADMINISTRA- and for making effective the provisions of this Ordin- TION ance are hereby vested in the Board of Trustees of the Retirement System, except when conclusive authority shall be elsewhere allocated in this Ordinance, which shall be organized immediately after four (4) of the Trustees provided for in this Section have qualified and taken such oath of office as the Council of the City shall require. B. The Board shall consist of seven (7) Trustees as followsi at The City Council shall appoint four (4) True of the Board, one of whom shall be the City Manager, one of whom shall be the Chief Finance Officer of the City, and the other two of whom shall be selected from among the members of the City Council. b. Three (3) Trustees representing the membership of the Retirement System, to be elected by said membership, according to such rules and regulad► tions as may be adopted by the Council. For the purpose of holding said election, members shall be classified by the Council generally as follows: Group 1. All Policemen, Firemen and Life Guards. Group 2. All members holding clerical or executive positions. Group 3. All other members of the Retirement System. -4- One of the Trustees shall be elected from each of the above groups. In determining the classification of any member in the above groups, the decision of the Council shall be final. Members of the City Council serving on the Board of Trustees shall serve during the pleasure of the Council, but only during their incumbency. The City Manager and the Chief Finance Officer of the City shall serve during their incumbency. The first three Trustees elected by the membership of the Retirement System shall serve for one, two and three years, respectively, to be determined by lot. Thereafter they shall be elected for a period of three (31 years. Until an election is held as provided for by this Sub-Section, the City Council shall appoint three (3) members of the Retirement System to serve as such Trustees. C. If a vacancy occurs in the office of Trustee, the vacancy shall be filled for the unexpired term in the same manner in which the office was previously filled. D. Service upon the Board of Trustees shall be gratuit- ous. E. Each Trustee shall within ten (10) days after his appointment or election, take the oath of office as hereinbefore provided. F. Each Trustee shall be entitled to one vote in the Boyrd. Four concurring votes shall be necessary for decision by the Trustees at any meeting of said Board. G. Subject to the limitations of this Ordinance, the Board shall from time to time establish rules and regulations for the administration of the funds created by this Ordinance and for the transaction of its busin- ess. H. The Board shall elect from its membership a Chair- man and a Vice-Chairman; the Chief Finance Officer of the City shall be Secretary of the Board. The Sec- retary and his regular assistants or subordinates shall serve without extra compensation. The Board may employ such special actuarial, medical and other services as shall be required, and shall employ such actuarial service as is hereinafter required by this Ordinance. I. The Board shall keep in convenient form such data as shall be prescribed by the actuary as necessary for actuarial valuation of the various funds of the Retirement System. J. The Board shall keep a record of all its proceedi:i s, which shall be open to public inspection. It sha.l- report directly to the Council annually, showing the fiscal transactions of the Retirement System for the previous fiscal year, which shill be arranged to coin- cide with the City' s fiscal year. This report shall be made within sixty (60) days of the conclusion of each fiscal year. The report shall show the amount of the accumulatedcash and securities of the System and the latest balance sheet showing the financial condi- tion of the Retirement System by moans of an actuarial valuation of the assets and liabilities of the Retire- ment System. K. The City Attorney shall be the legal advisor of the Board; his services in behalf of the Board shall not be compensated additionally. -5- L. The Board shall designate as Physical Examiners, three ( 3 ) physicians who are not eligible to membership in the Retirement System. The Physical Examiners shall arrange for and pass upon all physical and mental examinations required under the provisions of this Ordinance, shall investigate all essential statements and certificates by or on behalf of a mem- ber in connection with an application for Disability Retirement, and shall report in writing to the Board their conclusions and recommendations upon all matters referred to them. M. The Board shall designate an Actuary who shall be the technical advisor of the Board on matters re- garding the operation of the funds created by the pro- visions of this Ordinance and shall perform such other duties as ore required in connection therewith. a. Immediately after the establishment of the Retirement System, the Actuary shall make such investigation of mortality, service and compensa- tion experience of the members as shall be necess- ary for the formation of actuarial tables, rates and valuations for the initiation and continued operation of the System. On the basis of such in- vestigation, he shall recommend said tables and rates to the Board. The Board shall adopt tables and certify rates from among those recommended by the Actuary, and so soon as practicable thereafter, the Actuary shall make a valuation based upon such tables and rates of the assets and liabilities of the funds created by this Ordinance. b. At least once in every three (3) year period, the Board shall cause an actuarial investiga- tion to be made into the mortality, service and compensation experience of the members and pension- ers of the Retirement System and shall take a valuation of the assets and liabilities of the funds of the Retirement System, and taking into account the result of such investigation and valuation, the Board shall: aa. Adopt for the Retirement System such mortality, service and other tables as the Actuary shall doom necessary. bb. Certify the rates of contribution payable by the members under the provisions of this Ordinance; and cc. Certify the rates of contribution payable by the City on account of new entrants. N. On the basis of such tables, the Board shall cause to be made an actuarial valuation of the assets and liabilities of the funds of the Retirement System created by this Ordinance. O. Should the City Council in any year fail to approp- riate the certified amount for the support of the support of the Retirement System, or should the City become six ( b) months delinquent in the payment of such amounts, the Board shall notify in writing each member and pensioner of the System, and shall call a special meeting of the members and pensioners to consider the situation and to decide upon a course of procedure. The membership and pensioners may, by vote, decide to liquidate the System or to continue in operation for a definite period, at the end of which another election shall be held to determine the further course of the System. In an election the vote of each member or pen- sioner shall be weighed in proportion to his accumulated contributions if he is not retired, or in proportion to -6- the residual actuarial value of his Annuity Reserve equity if he is retired. Ballots shall be mailed to each member or pensioner, and adequate provisions shall be made for voting. In the event of decision to liquidate, the Board of Trustees shall be empowered to handle the liquidation in general compliance with applicable statutes, and specifically according to the following provisions: a. Annuity Savings Fund shall be distributed to members on the basis of their accumulated contributions. b. Annuity Reserve Fund shall be distributed to pensioners on the basis of individual residual actuarial value of annuities receivable. c. Pension Accumulation Fund shall be distributed to members and/or pensioners. Current pension- ers shall receive any portion of the actuarial value of pensions payable which is not available from the funds in the Pension Reserve Fund andthe balance shall be distributed to members on the basis of the amounts to their individual aca ants. d. Pension Reserve Fund shallbe distributed to pensioners on the basis of individual residual actuarial value of pensions payable. e. Expense Fund shall be used to pay operation and liquidation expense insofar as it suffices. f. Additional expenses of liquidation shall be assessed against the several funds in propor- tion to their resources. g. The foregoing provisions shall be considered the basis of liquidation, but the actual dis- tribution payments outlined shall be reduced in the same proportion which the final available resources of each fund bears to the total amounts distribut- able as outlined. P. In the event the System is insured and the liabil- ities assumed by an insurance underwriting company, the contract with sucL. insurance company shall stipu- late the payments, procedures and options in event of the failure of the City to meet its obligations to the System. Q. The Board shall provide each year for the auditing of all funds established by this Ordinance by a certified public accountant who is not a regular emp- loyee of the municipality. This provision is not to Le construed as preventing the employment of thesame auditor or auditing firm employed for the periodic audit of the other funds of the City. SECTION 6. A. Service Retirement Allowance: BENEFITS a. Conditions of Service Retirement Allowance: aa. Any member in active service may retire upon his written application to the Board setting forth at what time, not less than thirty (30) days nor more than ninety (90) days subsequent to the execution and filing thereof, he desires to retire, provided that the said member so specifying his retirement shall have to his credit forty (4o) years of creditable service or shall have attained the age of sixty- five (65) years and shall have to his credit at --7-_ least five (5) years of membership service, or shall have attained the age of seventy (70) years and shall have to his credit at least six (6) years of creditable service, of which not less than two (2) years shall be member- ship service, and notwithstanding that during such period of notification he may have sepa- rated from service. bb. Any member in active service who has at- tained the age of seventy (70) years shall be retired at the end of the fiscal year next succeeding his seventieth birthday. On recom- mendation of the Board, the Chief Executive of the City may permit an employee who has attained the age of seventy (70) years to continue in the employment of the City for a period one (1) year beyond the time at which his retirement would be mandatory as prescribed above. At the expiration of such period and on the re- commendation of the Board, the Chief Executive may again permit his continuing for a similar period. Such continuances shall not aggregate more than three (3) years. b. Upon retirement from service a member shall receive a service retirement allowance which shall consist of: aa. An Annuity which shall be the actuarial equivalent of his accumulated contribu- tions at the time of his retirement, and a Pension in addition to his Annuity which shall be equal to one (1) per cent of his average compensation multiplied by the number of years of his creditable service. bb. Should a pensioner retired for service die before the amounts to his credit in the Annuity Reserve and the Pension Accumula- tion ccumula- tion funds shall have been paid to him, the payments shall be continued at the same rate to a beneficiary of his election until the two funds shall be exhausted. B. Disability Retirement Allowance: a. Upon the application of a member in service or of the Chief Executive, any member may be re- tired by the Board, not less than thirty (30) days nor more than ninety (90) days next following the date of filing such application, on a disability retirement allowance, provided the Physical Exam- iners shall certify that such member is either mentally or physically incapacitated for the per- formance of his duty, and that such disability is likely to be permanent, and that said member shoulc be retired. aa. The Physical Examiners shall examine annually every member retired on a dis- ability allowance and shall report their find- ing as to the permanency of such disability to the Board. In the event that such disability shall not continue to incapacitate mentally or physically the said member for service provit- able to the City, the Board may, at its dis- cretion, require said member to return to active service of the same or similar nature as that at which he was employed prior to said disabil- ity or other work within the limits of his mental or physical capabilities, and at a com- pensation not loss than seventy (70) per cent of the basic pay, at the time of his reinstate- ment, for the grade of service occupied by said —8— retirant prior to his disability retirement, or if the City shall not have established basic rates of pay for the several grades of service, then at a compensation not less than seventy (70) per cent of his compensation at the time of his retirement. bb. Upon return to active service of any mem- ber retired on a disability allowance said. member shall again become an active participant in the System and shall contribute according to his compensation on reinstatement. Any prior service certificate valid at the time of his retirement shall be fully revived, as shall all membership service prior to disability retire- ment. No service shall be credited for the period of disability retirement except as pro- vided in Sub-Section 6. B. a. cc. cc. Any member of the Retirement System who shall be disabled within the meaning of any State workman' s compensation or similar law and who shall have loss than fifteen (15) years of creditable service shall be offered the privilege of def. erring his disability re- tirement allowance until his period of service and his disability shall have reached a total of, but not exceeding fifteen (15) years; pro- vided that he shall contribute to the funds of the Retirement System during such deferred period, at the rate and on the salary basis which determined the amount of his contribu- tions at the time such disability occurred; for which period, in case such agreement is entered into and such contributions are regula-c_. ly made, credit shall be made to his account in the Pension Accumulation Fund. b. Upon retirement for disability such pensioner shall receive a disability retirement allow- ance which shall consist of: aa. The actuarial equivalent of the amounts to his credit in the Annuity Savings ani the Pension Accumulation funds, in monthly pay-- . ments, based on and for his normal life expect- ancy. Lb. Should a 'pensioner, retired for di'sabilit:, die before the amounts to his credit in the Annuity Reserve and the Pension Reserve funds shall have been paid to him, the payments shall be continued at the same rate to a benef- iciary of his election until the amounts in the two funds shall be exhausted. C. Death Benefit: Upon receipt of proper legal proof by the Board of the death of a mem- ter in service there shall be paid to such person hav- in; an insurable interest in his life as he shall have nominated by written disposition, duly executed and filed with the Board: a. The actuarial equivalent of the amount to his credit in the Annuity Savings and the Pension Accumulation funds at the time of his death, in monthly payments bases, on the beneficiary' s life expectancy, until the value of the amounts in the two funds shall be exhausted. b. Should a beneficiary die before the value of the amounts to his credit in the said funds shall have been paid to him, the payments shall he continued at the same rate to the next named benef- iciary until the amounts in the two funds shall be exhausted. -9- D. Exceptions: One who has become a pensioner because of disability or death of a member, shall have the privilege of drawing from the amounts to his credit at the time of the death or disability which made him a pensioner, a cash payment, not to ex- ceed the amounts to his credit in the funds of the Retirement System, nor to exceed Five Hundred ($500.00) Dollars, with the provision that the balance shall be paid monthly as otherwise provided. Where the balance would provide a monthly payment less than Ten Dollars (S10.00) , the Board, at its discretion, may order the total amount to the credit of the pensioner to be paid in cash. E. Other discontinuance of Service: Should a member discontinue his service for any reason other than service retirement, disability retirement or death, he shall be paid all or any part of the accumulated contributions standing to the credit of his individual account in the Annuity Savings Fund. SECTION 7. A. The Board shall be the Trustees of the several funds created by this Ordinance as provided in MANAGEMENT Section 8 and shall have full power to invest and re- OF invest such funds in City of Miami Beach or United States Government bonds; and subject to said limita- tions and restrictions the Board shall have full power to hold, purchase, sell, assign, transfer and dispose of any of the securities and investments in which any of the funds created herein have been invested as well as the proceeds of said investments and the monies en- uring to said funds. B. The Board annually shall allow regular interest at the rate of three (3) per cent on the mean amount for the preceding year in each of the funds. The amounts so allowed shall be due and payable to said funds and shall be annually credited thereto by the Board from any other earnings on the monies of the Retirement System. Any additional amount required to meet the regular interest at the rate of three (3) per cent on the funds of the Retirement System shall be paidby the City, and any excess of earnings over such amount required shall be credited to the City for the purpose of reducing the City' s contribution in the next succeeding year. C. The Chief Finance Officer of the City shall be the custodian of the several funds. All payments from the said funds shall be made by him only upon regular City vouchers signed by one agent designated by the Board in addition to the signatures customarily requir- ed for other City vouchers. A duly attested copy of a resolution of the Board designating such person and bearing upon its face a specimen signature of such per- son shall be filed with the Chief Finance Officer of the City as his authority for making payments upon such vouchers. No vouchers shall be drawn unless it shall have been previously authorized by resolution of the Board. D. For the purpose of meeting current disbursements for Pensions, Annuities and other payments which may be logclly made from the funds of the Retirement System, there may be kept on deposit available cash not exceeding ten (10) per cent of the total amount of the several funds in the Retirement System. E. Except as otherwise herein provided, no member or employee of the Board shall have any direct inter- est in the gains or profits from any investments made by the Board, nor as such receive any pay or emolument - .O-- for his services. No member or employee of the Board shall directly or indirectly for himself or as an agent in any manner use the same except to make current and necessary payments as are authorized by the Board. SECTION 8. A. All the assets of the Retirement System shall be credited according to the purpose for which they FINANCING are held to one of four funds, namely: The Annuity Savings Fund, the Annuity Reserve Fund, the Pension Accumulation Fund and the Pension Reserve Fund. a. Annuity Savings Fund: aa. The Annuity Savings Fund shall be the fund in which shall be accumulated con- tributions from the compensation of members to provide for their Annuities. Upon the basis of such tables as the Board shall adopt and regul- ar interest, the Board shall determine for each member the proportion of compensation which, when deducted from each payment of his prospec- tive earnable annual compensation prior to his attainment of retirement age or until he shall have to his credit forty (4o) years of credit- able service, and accumulated at regular in- terest until his attainment of such age shall be computed to provide at that time an Annuity equal to fifty ( 50) per cent of the Pension to which he wouldbe entitled at that age on account of his service as a member. Such pro- portion of compensation shall be computed to remain constant. bb. The Board shall certify to the proper authority or officer responsible for mak- ing up the payroll, and the proper authority or officer responsible for making up the pay- roll shall cause to be deducted from the salary of each member on each and every payroll for each and every payroll period, the proportion of earnable compensation of each member so com- puted, But the proper authority or officer responsible for making up the payroll shall not make any deduction for annuity purposes from the compensation of a member who elects not to contribute after he has attained retirement age. cc. The deductions provided for herein shall be made notwithstanding that the minimum compensation provided for by law for any mem- ber shall be reduced thereby. Every member shall be deemed to consent and agree to the d: ductions made and provided for herein and sha. receipt for his full salary or compensation, and payment of salary or compensation less Bain deduction shall be full and complete discharge and acquittance of all claims and demands what, soever for the services rendered by such perso',.� during the period covered by such payment, ex- cept as to the benefits under this Ordinance. The proper authority or officer responsible fo:, making up the payroll shall certify to the Board on each and every payroll the amounts t_ be deducted; and eachof the said amounts sha:' ►. be deducted by the Chief Finance Officer of the City, and when deducted shall be paid into said. Annuity Savings Fund and credited, together with regular interest at the rate of three (3) per cent thereon, to the individual account of the member from whose compensation said deduc- tion educ- ti=on was made. -11- dd. The accumulated contributions of a member withdrawn by him or paid to his legal re- presentative or any lump sum payments to his designated beneficiary shall be paid from the Annuity Savings Fund. Upon retirement of a member, his accumulated contributions shall be transferred from the Annuity Savings Fund to the Annuity Reserve Fund. b. Annuity Reserve Fund: The Annuity Reserve Fund shall be the fund from which shall be paid all Annuities and all benefits in lieu of Annuities, payable as provided in this Ordinance. Should a member retired on account of disability be restored to active service with a compensation as provided for in Sub-Section 6. B. a. aa. , his Annuity Reserve shall be transferred from the Annuity Reserve Fund to the Annuity Sav- ings Fund and credited to his individual account therein. c. Pension Accumulation Fund: The Pension Accumu- lation Fund shall be the fund in which shall be accumulated all re- serves for the payment of all Pensions and other benefits payable from contributions made by the City. Contributions to and payments from the Pen sign Accumulation Fund shall be made as follows: an. On account of each member who is an em- ployee of the City, there shall be paid into the Pension AccumulationFund by- the Cit, for the Preceding fiscal year, a certain per- centage of the compensation of each such mem- ber. Such percentage shall be corni uted for each member on the basis of regular interest at three (3) per cent and of such mortality and other tables as the Board shall adopt, to pro- vide a sufficient fund for the payment of his Pension s provided for in Sub-Section 6. A. b. aa. All liability accrued at the time cf passage of this Ordinance because of prior service of members shall be absorbed by the City and shall be calculated into the rate cf contribution by the City for each member having such prior service. Such rate of contribution shall�ay 1 e rtctermineA after each valuation. bb. The total amount payable in each year to the Pension Accumulation Fund shall be no : less than the contribution rates of the compea sation earnable by all members during the pre- ceding year, less any credits which may have accrued to the fund because of separation fro service by members or which may accrue from other sources. cc. Any lump sum payments due from funds pro- vided by the City shall be paid from the Pension Accumulation Fund. dd. Upon retirement of a member, an amount equal to his Pension Reserve shall be transferred from the Pension Accumulation Fun to the Pension Reserve Fund. d. Pension Reserve Fund: The Pension Reserve Fund shall be the fund from which shall be paid all Pensions and all benefits in lieu of Pensions, on account of members. Should a Pensioner, retired on acca:aun'; of disability be restored to active service as Prescribed in Sub- Section 6. B. a . aa. , the Pension Reserve for said Pensioner shall be transferred from the Pension Reserve Fund to the Pension Accumulation Fund. -12- B. Expense Fund: The Expense Fund shall be the fund to which shall be credited T money provided by the City to pay the administraion expenses of the Retirement System and from which shall be paid all the expenses necessary in connection with the administration and operation of the System. Annu- ally the Board of Trustees shall estimate the amount of money necessary to be paid into the Expense Fund during the ensuing year to provide for the expense of opera- tion of the Retirement System, and the City shall ap- propriate the amount required to operate the System in accordance with this Ordinance. C. Guaranty: The creation and maintenance of reserves in the Pension Accumulation Fund, the maintenance of Annuity Reserves and Pension Reserves as provided for, and regular interest creditable to the various funds as provided in Sub-Section 8. A. of this Ordinance and the payment of all Pensions, Annui- ties, Retirement Allowance, refunds and other benefits granted under the provisions of this Ordinance and all expenses in connection with the administration and operation of this Retirement System are hereby made obligations of the Cityi All income, interest, and dividends derived from deposits and investments author- ized by this Ordinance shall be used for the payment of the said obligations of the said City. Any amounts derived therefrom which, when combined with the regular amounts, otherwise contributable by the City as pro- vided under the provisions of this Ordinance, exceed the amount required to provide such obligations, shall be used to reduce the regular appropriations otherwise required. D. Exemption from Taxation and Execution: The right of a person to a Pension, an Annuity, or a Retirement Allowance; to the return of contributions, the Pension, the Annuity, or the Retirement Allowance itself, to any optional benefit or death benefit; to any other right accrued to any person under the provisions of this Ordinance; and the monies in the various funds created by this Ordinance are hereby made exempt from any tax of the City and shall not be subject to execution, garnishment, attachment, or any other process whatsoever and shall be unassignable except as in this Ordinance specifical- ly provided. SECTION 9. A. Any person who shall knowingly make any false state- ment or shall falsify or permit to be falsified PROTECTION any record or records of this Retirement System in any AGAINST attempt to defraud such System as a result of such act FRAUD shall be guilty of misdemeanor, and shall be punishable therefor under the laws of the State of Florida. B. Should any change or error in the records result in any member or beneficiary receiving from the Retirement System more or lessthan he would have been entitled to receive had the records been correct, the Board shall correct such error, and so far as practic- able, shall adjust the payments in such a menner that the actuarial equivalent of the benefit to which such member or beneficiary was correctly entitled shall be paid. SECTION 10. If any Section or part of any Section of this Ordin- LIMITATIONT ince is declared to be unconstitutional, the remainder OF OTHER of the Ordinance shall not thereby be invalidated. STATUTES -13- SECT"ION 11 . And be it further ordained, that except as otherwise herein provided, this Ordinance shall take effect on ENACTMENT the 1st day of March, 1938. SECT-ION 12. This Ordinance shall not become effective until a majority of the qualified voters of said City of Miami RATIFICA- Beach, Florida, voting on the same at a special or TON general election called for such purpose, shall vote in favor thereof. SECTION 13. All Ordinances and parts of Ordinances in conflict herewith are hereby repealed. REPEAL OF CONFLICTING ORDINANCES PASSED AND ADOPTED this 3rd day of Decemb , A. D. , 1937. rAct i t, Mayor ATTEST: .411 City Clerk 1st Reading - November 2L4h, 1937. 2nd Reading - November 24th, 1937. 3rd Reading - December 3rd, 1937. Posted - December 28th, 1937. M t STATE OF FLORIDA) COUNTY OF DADE ) I, C. W. TOMLINSON,City Clerk in and for the City of Miami Beach, Florida, do hereby certify that Ordinance No. 498 entitled "AN ORDINANCE OF THE CITY OF MIAMI BEACH, FLORIDA, ESTAB- LISHING A PENSION, ANNUITY AND RETIREMENT SYSTEM FOF EMPLOYEES IN THE SERVICE OF THE SAID CITY OF MIAMI BEACH; PROVIDING FOR DISABILITY AND DEATH BENEFITS; PROVIDING FOR CONTRIBUTION TO THE COST THEREOF ON AN ACTUARIAL BASIS; PROVIDING FOR THE MANNER IN WHICH EMPLOYEES MAY COME UNDER. THE OPERATION OF SAID SYSTEM; PROVIDING FOR RE- PAYMENT TO MEMBERS LEAVING THE SERVICE OF SAID CITY; PROVIDING FOR THE INVESTMENT OF FUNDS CREATED UNDER SAID SYSTEM; PROVIDING FOR THE ADMINISTRATION AND OPERATION OF SAID SYSTEM AND PROVIDING FOR THE SUBMISSION OF THIS ORDINANCE TO A REFERENDUM OF QUALIFIED VOTERS OF SAID CITY; PROVIDING ViHEN THIS ORDINANCE SHALL TAKE EFFECT, AND OTHER MATTERS RELATING THERETO" , having been passed and adopted by the City of Miami Beach, Florida, has been posted by me in three conspicuous places in the City of Miami Beach, one of which was at the door of the City Hall in said City on the 28th day of December, A. D. , 1937, and that said ordinance remained posted for a period of at least thirty days in accordance with the requirements of the City Charter of the said City of Miami Beach. IN WITNESS WHEREOF I have hereunto set my hand and affixed the official seal of the City of Miami Beach, Florida, on this the 29th day of January, A. D. , 1938. F City Clerk F r . i IP. e t ,F