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Ordinance 89-2640 ORDINANCE NO. 89-2640 AN ORDINANCE PROVIDING FOR THE CREATION AND MAINTENANCE OF A SPECIAL FUND TO BE KNOWN AS THE CITY SUPPLEMENTAL PENSION FUND FOR FIREMEN AND POLICEMEN IN THE CITY OF MIAMI BEACH, FLORIDA; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: Section 1. Establishment of Supplemental Pension Fund A special fund shallbe created to be known as the City Supplemental Pension Fund for Firemen and Policemen in the City of Miami Beach; said Fund to be used exclusively for the purpose provided for in this Supplemental System, which Fund shall be collected, administered and disbursed according to the provisions of this Supplemental System. Section 2 . Method of Financing The said Supplemental Pension Fund shall consist of monies derived from the following sources: 2 .01 On and after the Effective Date, the. City shall pay into the funds of the Supplemental System with respect to each fiscal year such amount as is actuarially determined to be required under this Plan, in addition to the personal contributions of members, computed on an interest rate as determined from time to time by the Board of Trustees. 2 . 02 All computations of liability in connection with the Supplemental System created hereby shall be based on such tables and 1..ates approved by the Board of Trustees. The Actuary for the Base System shall be the Actuary for the Supplemental System. The Actuary for the Supplemental System shall recommend such tables and rates for adoption by the Board. On the basis of such tables and rates, the Actuary for the Supplemental System shall determine the amounts required to be paid into the Supplemental System by the City, as provided for in Section 2 . 01. 1 2 .03 There shall be a complete actuarial evaluation prepared by the Actuary at least every three (3) years, and the City shall make such adjustments in its contributions as shall be shown to be required by such actuarial evaluation. The money required to meet all the obligations of this Supplemental System, over and above the personal contributions forthcoming from the members, is a liability and obligation of the City of Miami Beach. Therefore, the City Counsel Commission of the City of Miami Beach may levy annually, in the manner provided by Law, upon all taxable property within said City, such millage on the assessed valuation thereof as is necessary to produce the amounts required hereby to be contributed by said City to this Supplemental System. Nothing in this Supplemental System shall be construed to prevent the City Administration from appropriating monies from the General Fund or from any Special Funds of the City, for the purpose of creating or adding to the Pension Fund created under this Supplemental System, and the City shall have the right to appropriate monies from the General Fund or any Special Fund of the City in addition to a millage. And furthermore, the City shall have the right and power to designate other sources of revenue for the Pension Fund created by this Supplemental System, including the designating of certain fines and forfeitures for violation of the City Ordinances to be paid to this Fund instead of the general revenue of said City. No monies raised by taxation or otherwise provided for in the Pension Fund created under this Supplemental System shall be used other than for the purpose of this Supplemental System. 2 .04 Except as hereinafter provided, commencing with the first payroll period beginning on or after the Effective Date, every member shall contribute an amount equal to ten (10%) percent 2 of his salary or wages reduced by the amount of salary or wages he is contributing under the Base System, and shall be entitled to receive the benefits of this Supplemental System. On and after the Effective Date, the City shall, solely for the purpose of compliance with Section 414 (h) of the Internal Revenue Code, pick up the member contributions required to be made under this Supplemental System by employees on salary or wages paid with respect to payroll periods beginning on or after the Effective Date, and the contributions so picked up shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code. Section 3. Definitions 3.01 The term "employee" shall mean any regular member of the Police Department or Fire Department who has attained regular Civil Service Status in such Departments under the Official Classifications of positions in the Classified Service of the City of Miami Beach, Florida, having a rank in such department other than Civilian rank and other than the classification of School Guard. The Chiefs of the Police and Fire Departments shall be considered employees for the purposes of this Supplemental System. 3.02 The terms "Firemen" and "Policemen" shall be synonymous with the term "employee" as defined above. 3.03 The term "widow" shall mean the lawfully wedded wife of a member of the Fire or Police Departments living with the member at the time of his death. 3.04 For the purpose of determining member contributions under this Supplemental System, the term "salary or wages" shall mean salary or wages before reduction for the picked-up member contributions and before reduction for any amounts contributed in accordance with Sections 125 or 457 of the Internal Revenue 3 Code. Furthermore, "salary or wages" taken into account for any purpose under this Supplemental System, including for purposes of determining a member' s contribution to this Supplemental System under Section 2 . 04, shall not exceed $200, 000 per year. As of January 1 of each calendar year beginning on or after January 1, 1990, the foregoing limitation shall be adjusted in such manner as shall be determined by the Secretary of the Treasury. 3.05 The term "Base System" shall mean the Police and Firemen's Pension Act, City of Miami Beach, Florida Chapter 23414 , Laws of Florida, Special Acts of 1945, as amended from time to time. 3.06 The term "Supplemental System" shall mean this Police and Firemen' s Supplemental Pension System, as set forth in this document or as amended from time to time. 3.07 The term "Effective Date" shall mean June 1, 1989 except that if the City is required to initiate funding prior to October 1, 1989, the Effective Date shall be October 1, 1989. 3.08 The term "Base System Benefit" shall mean the amount of benefit payable to or on behalf of a member, if any, under the Base System on account of the member' s retirement, death or disability, as the case may be, under a provision of the Base System. 3.09 The term "physically and/or mentally handicapped child" shall mean a dependent physically and/or mentally handicapped child of a member having reached the age of eighteen (18) who is primarily dependent upon the member for the child' s livelihood or support due to a mental or physical condition or handicap of the adult child which requires, or otherwise would have required, the member to provide primary support for the adult 4 child. 3 .10 The term "dependent parent" shall mean a parent of a member for whom a member is entitled, or would have been entitled, to claim a dependency exemption for Federal income tax reporting purposes. Section 4. Membership 4. 01 Any employee of the City who is an employee as herein defined on the Effective Date or who becomes an employee as defined herein after the Effective Date shall automatically be a member of this System. However, any member may irrevocably elect, in writing and prior to January 1, 1990 or prior to retirement, if earlier, to waive his membership in this Supplemental System and, in such event, he shall not become a member hereunder, shall not make contributions hereunder, and shall not be entitled to any benefits hereunder. 4.02 A member who retired from the Base System on or after January 1, 1989 and prior to the Effective Date shall become a member of this Supplemental System on the Effective Date and have his pension recalculated to reflect the provisions of Section 7 . 01 (B) with respect to payments due and owing on and after the Effective Date; provided, however, that such member may irrevocably elect in writing prior to the Effective Date to waive his membership in this System, in which event he shall not become a member hereunder, and shall not be entitled to any benefits hereunder. 4.03 Whenever a member shall sever his employment voluntarily prior to becoming eligible for a pension but retain his civil service rights with the City, and if such member does not have returned to him the monies provided for in Section 18 hereof, he shall, upon resuming his employment as an employee as defined herein, again become a member; provided, however, that 5 between the date of such severance and the date of such re-employment he shall be entitled to no benefits hereof excepting those which may have accrued to him prior to such severance, and further provided upon such re-employment he shall submit to the medical examination required by Section 4 . 06. 4.04 As of the Effective Date, there shall be transferred to the Pension Fund of this Supplemental System an amount equal to three (3) times the accumulated amount of contributions, together with interest thereon to the date of transfer, that were paid by the employee into the City of Miami Beach Employees Retirement System with respect to employees as defined herein who are members of the City of Miami Beach Employees Retirement System as of the Effective Date and who are not members of the Base System as of such Date. Simultaneously with such transfer, said employees shall become members of this Supplemental System. The funds so transferred, together with interest thereon to the date of transfer, shall be credited against the City' s liability for creditable service already accrued prior to the date of transfer with respect to persons who become members of this Supplemental System in accordance with this Section 4 . 04 . 4 .05 Membership in this Supplemental System shall automatically cancel the membership and participation of any employee in any other pension annuity or retirement System for employees of the City of Miami Beach to which the said City contributes, other than membership and participation in the Base System. 4.06 All employees of the City who become employees as defined herein and who become members of this Supplemental System in accordance with the provisions of this Section 4, shall submit to a physical examination as prescribed by the Board of Trustees; however, the result of such examination shall not 6 affect eligibility for membership in this Supplemental System, but shall be used for the proper administration of the Supplemental System by the Board. This physical examination requirement shall be deemed satisfied with respect to any member who has fulfilled this requirement under the Base System as of the Effective Date or who fulfills said requirement under said System after the Effective Date. 4.07 Whenever any employee is employed by the City and becomes a member of this Supplemental System, the City, within thirty (30) days thereafter, is hereby authorized, empowered and directed to prepare a contract for execution between the parties hereto, to-wit: The City and said employee, which contract shall be in the following form: THIS AGREEMENT, made and entered into this day of , 19 , between the City of Miami Beach, a municipal corporation under the laws of the State of Florida, hereinafter referred to as City, party of the first part, and (individual employee) , hereinafter described as employee, party of the second part. WITNESSETH: THAT WHEREAS, the City has established the Police and Firemen' s Supplemental Pension System City of Miami Beach, Florida, and WHEREAS, it is beneficial to the said City to have its said employees protected by the terms of said Supplemental System and benefits and the said employee is desirous of participating in said Supplemental System and benefits, it is thereupon UNDERSTOOD AND AGREED by and between the parties 7 that the party of the second part does hereby allot, out of his salary or wages paid to him by the City and determined before reduction for picked-up contributions in accordance with Section 2 . 04 or any amounts contributed on a pre-tax basis in accordance with Sections 125 and 457 of the Internal Revenue Code, an amount equal to ten (10%) per cent of said salary or wages from the Effective Date (or date of membership, if Later) , reduced by the amount of salary or wages he is contributing under the Base System, and does hereby authorize and direct the disbursing officer or officers of said City to retain out of said salary or wages said amount, in compliance with the terms of the Supplemental System, and to continue to make said allotment and authorize said deduction throughout the entire time of his employment or re-employment or until such time as he shall be entitled to receive the pension allowance or benefit provided by the Fund. For the purpose of determining member contributions under this Supplemental System, salary or wages shall be computed in accordance with the provisions of Section 3 . 04 . IT IS FURTHER UNDERSTOOD AND AGREED by and between the parties that the said City, party of the first part, will accept said allotment or deduction from the salary or wages of said employee aforesaid, and when, under the terms of the Supplemental System, said employee or other beneficiary of said employee shall be entitled, under the terms of the Supplemental System, to receive the benefits from said Fund herein created, will pay said sum or sums from said Fund and all other benefits so authorized to said employee or his other beneficiaries, in accordance with the terms of this Supplemental System, without diminution or deduction. 8 IT IS FURTHER UNDERSTOOD AND AGREED that this contract shall remain in force without change, modification or amendment, until all the purposes now intended to be fulfilled shall have been fully performed, except that payment or other benefits to the party of the second part or his beneficiaries may be increased but not diminished. IT IS FURTHER UNDERSTOOD AND AGREED that the percentage of the allotment of or deduction from the salary or wages of the said employee shall not be increased during the term of this contract but may only be decreased or diminished by the party of the first part, nor shall said employee lose any rights under the terms of this contract by reason of the refusal of said City at any time during the terms hereof to make allotment or deduction from said salary or wages. IT IS FURTHER UNDERSTOOD AND AGREED that it is the intention of the parties hereto to create vested rights in the respective parties not to be hereinafter impaired for any cause whatsoever. IT IS FURTHER UNDERSTOOD AND AGREED that the terms of the Supplemental System hereinbefore set forth are declared to be a part of this contract and this contract is to be construed with reference thereto. IN WITNESS WHEREOF, the party of the first part has hereto caused these presents to be executed, signed and sealed, with the seal of said City, by its duly authorized officers, and the said party of the second part has hereunto set his hand and seal the day and year first above written. (Here follow signatures and seals. ) 9 Said contract or agreement is to be executed in duplicate, one copy to be retained by the City, the other copy to be delivered to the said employee joining in said contract, and shall thereafter be and remain a contract binding upon the said City and the employee, and enforceable in any Court in the State of Florida having jurisdiction of actions upon contracts in like amount, and by such relief, ordinary or extraordinary, at law, or in equity as may be suitable or appropriate in similar causes. Section 5. Administration of System The general administration and responsibility for the proper operation of the Supplemental System are vested in a Board of Trustees consisting of nine persons. The Board of Trustees shall be identical to the Board of Trustees of the Base System. Election or appointment to the Board of Trustees of the Base System shall constitute an election or appointment to the board of the Supplemental System. The Chairman and Secretary of the Board of Trustees of the Supplemental System shall be the Chairman and Secretary of the Board of Trustees of the Base System. (A) The Trustees shall serve without compensation, but they may be reimbursed for all necessary expenses which they may actually expend through services on the Board. (B) Each Trustee shall, within ten days after his appointment or election, take an oath of office before the City Clerk of said City, that so far as it develops upon him he will diligently and honestly administer the affairs of the said Board, and that he will not knowingly violate or willingly permit to be violated any of the provisions of the law applicable to the retirement system. Such oath shall be subscribed to by the member making it and certified by the said Clerk and filed in his office. 10 (C) Each Trustee shall be entitled to one vote on the Board. Five votes shall be necessary for a decision by the Trustees at any meeting of the Board. The Chairman shall have the right to one vote only. (D) Subject to the limitations of this Supplemental System, the Board of Trustees shall from time to time establish rules and regulations for the administration of funds of the Supplemental System and for the transaction of its business, including provisions for compulsory attendance of its members. (E) The Board of Trustees shall engage such actuarial and other services as shall be required to transact the business of the Supplemental System. The compensation of all persons engaged by the Board of Trustees and all expenses of the Board necessary for the operation of the Supplemental System shall be paid at such rates and in such amounts as the Board of Trustees shall agree but in no case shall the total expenditures for such services or operations under this Supplemental System exceed three (3) per cent of the maximum of the combined pension funds under the Base System and this Supplemental System for each fiscal year less the amount of actual expenditures for services or operations under the Base System. All funds shall be disbursed by the Board of Trustees. (F) Any trustee who neglects the duties of his office shall be removed by the Board of Trustees. Section 6. Investment of Funds 6.01 Money shall be withdrawn from the pension fund under the Supplemental System only upon warrants executed by a majority of the Board. The Board shall have exclusive charge of the investment of any surplus in said fund not needed for the 11 current obligations thereof by investment of same in the following: Bonds, notes, securities or other evidences of indebtedness which are the direct obligations of the Government of the United States and for which the full faith and credit of the government is pledged. Loans, insured or guaranteed as to principal and interest by the Government of the United States or by any agency or instrumentality thereof, to the extent of such insurance or guaranty. Bonds, notes and other securities of any county or incorporated city in any State of the United States or the District of Columbia, which are the direct obligation of such county or city and for payment of which said governmental body has the lawful authority to levy taxes or make assessments. Bonds, notes or other evidences of indebtedness which are payable from revenues of any structure or improvement owned by any state or incorporated city within the United States. Dividend paying stocks, common or preferred, of any corporation created and existing under the laws of the United States or of any State, provided that the amount so invested shall at no time exceed fifty (50%) per cent of the total funds invested. Group annuity contracts with one or more insurance companies authorized to do business in the State with assets of not less than two billion dollars. Such group annuity contracts may provide for direct payment of 12 benefits by the insurance company to members, retirants, pensioners or beneficiaries, or may provide for the payment of funds to be made to the Board to be applied toward amounts payable to such persons pursuant to the provisions of this Supplemental System. Bonds, notes or other interest-bearing obligations of any solvent corporation organized under the laws of the United States, or any State, territory or possession of the United States. Shares or savings accounts of federal savings and loan associations, to the extent that they are insured by an agency or an instrumentality of the Government of the United States. 6.02 Monies needed for the meeting of the current obligations may be deposited in a depository recognized by law for the deposit of funds of the State of Florida and upon posting of similar security to that required for public deposits. The City of Miami Beach shall have the custody of and responsibility for any funds, stocks, bonds, notes or other evidences of indebtedness and such custody shall be for the purpose of safekeeping only, without any discretion in the City of Miami Beach regarding the propriety of any withdrawal or transfer of any such funds, stocks, notes, other evidences of indebtedness or funds. Section 7 . Benefits Payable 7 .01 Service and Disability Benefits (A) The Board shall, upon application, retire members meeting any one of the following requirements: (1) The attainment of age Fifty (50) years. 13 (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. (B) A member shall be entitled to receive, upon retirement after the attainment of age Fifty (50) , or upon retirement under the provisions of Subsection (A) (2) or (3) , a monthly pension payable for life equal to subparagraph (1) plus subparagraph (2) , reduced by subparagraph (3) as follows: (1) Three (3%) per cent of the average monthly salary or wages of the member for each year of the first fifteen (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 (4%) per cent of the average monthly salary or wages of the member for each year of creditable service in excess of fifteen (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. In the event 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. 14 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 (2) 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 3 . 04 . Notwithstanding that definition, however, the inclusion of overtime in the two (2) 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. The benefits provided hereinabove shall not be more than ninety (90%) per cent of the member' s average monthly salary or wages as defined in the immediately preceeding paragraph, reduced by the Base System Benefit. (C) The minimum pension for a member retiring under Section 7 . 01 (A) (2) for permanent and total disability shall be eighty-five (85%) per cent of the salary or wages of the member at the time of disability retirement, reduced by the Base System Benefit. (D) In the event that any member eligible for benefits hereunder shall have terminated his employment after having completed at least ten (10) years of creditable service but prior to attaining the age of fifty (50) years and shall elect hereunder to decline to withdraw his accumulated contributions in the Supplemental System, then such member shall be entitled to receive upon attaining the age of fifty (50) years a monthly pension payable for life in accordance with the benefits designated in Subsection (B) hereof; provided, 15 however, that in the event of the death of a member prior to having attained the age of fifty (50) years, then the benefits as contained in this paragraph shall become ineffective and the estate of such member shall be entitled to all monies contributed by him into this System together with accumulated interest on said sum at the rate of three (3%) per cent per annum computed until the date of payment to the estate of the member. (E) Nothing herein contained shall be construed to prevent the City Manager or the Board from initiating action for the compulsory retirement of a member, eligible for retirement, prior to such age, where such member is considered to be unfit for the proper performance of his duties because of physical or mental incapacity, and upon certification by the Medical Board designated by the Board of Trustees pursuant to Section 8, that such person is mentally or physically incapable of proper performance of duties, such person shall be automatically retired. 7 .02 Cost of Living Adjustment (A) In the case of a pensioner or beneficiary who has been receiving a pension for at least one year under the Base System or this Supplemental System as of October 1, 1989 or any subsequent October 1, the amount of pension payable to him as of such October 1, shall be increased by two and one-half (2-1/2) per cent of the amount payable to him under the Base System and this Supplemental System. The amount of the increase payable from this Supplemental System shall be the full amount of the increase (including the portion attributable to any pension payable under the Base System) , reduced by any increase actually payable from the Base System. For purposes of this Section 7 . 02 , the pension commencement date for a beneficiary receiving a pension as the result of the death of a retired member who was receiving a pension at 16 the time of his death shall be the date on which the retired member began to receive his pension. (B) In the case of a pensioner or beneficiary who retires after October 1, 1988 under the Base System or this Supplemental System or after October 1 of any subsequent year under this Supplemental System, and who therefore must wait more than twelve (12) months for his first increase, the amount of pension payable to him as of the October 1 next following the first anniversary of the commencement of his pension shall be increased by two and one-half (2-1/2%) per cent of the amount payable to him under the Base System and this Supplemental System multiplied by a fraction, the numerator of which is the number of months for which his pension under said Systems has been paid and the denominator of which is twelve (12) . The amount of the increase payable from this Supplemental System shall be the full amount of the increase (including the portion attributable to any pension payable under the Base System) , reduced by any increase actually payable from the Base System. (C) The provisions of this Section 7 . 02 shall not apply in the case of a member of the Base System who elects in writing prior to the earlier of his date of retirement or January 1, 1990 to waive his membership in this Supplemental System in accordance with the provisions of Section 4 . 01 or 4 . 02 . 7 . 03 Service Connected Death Benefits If any member shall lose his life or later die within five (5) years from injuries received while in the discharge of his duties and shall leave a widow or a child or children or one or more dependent parent(s) , the Trustees shall authorize and direct payment of a pension to the widow or a child or children or dependent parent(s) under the following terms, conditions and restrictions and at the following rates: 17 (A) To the widow, the greater of subparagraph (1) or subparagraph (2) , reduced by subparagraph (3) as follows: (1) the pension to which the deceased member would have been entitled under Section 7 . 01 (B) , determined without regard to clause (3) thereof, or (2) eighty-five (85%) per cent of the salary or wages of the member at the date of his death, (3) the Base System Benefit. (B) If there be no surviving widow, or if such widow rcmarrie3 or until such time as • - - - - - - - of a child who 13 a full time 3tudcnt in high school or college) , (2) each such child marries or dies, or (3) a physi ally or mentally handicapped child rccover3. (B) If there be no surviving widow, or if such widow remarries or dies, then the benefit set forth in Subsection (A) above shall be paid in equal portions to each child of the deceased member. Payment to any such child shall cease at such time as (1) the child attains age eighteen (18) (or age twenty-two (22) in the case of a child who is a full-time student in high school or college) , (2) the child marries or dies, or (3) the child recovers in the case of a physically or mentally handicapped child. 18 (C) If there are no benefits payable to a child or children, then the benefit set forth in Subsection (A) above shall be paid to the dependent parent of the deceased member. If both parents are dependent, such benefit shall be shared equally. (D) The beneficiary of a member of the Base System who became entitled to the service connected death benefit under the terms of the Base System on or after June 1, 1988 and prior to the Effective Date, shall be entitled to receive the service connected death benefit described in this Section 7 . 03 assuming, solely for this purpose, that the Supplemental System was in effect on and after June 1, 1988 . Payment of the death benefit shall commence as of the Effective Date and, to the extent applicable, the Trustees shall authorize and direct that retroactive payments, calculated in accordance with the foregoing provisions of this Section 7 . 03, be made to the appropriate beneficiary as herein before described. (E) The trusteeship and disbursement of the pension to any child or children or dependent parent is to be determined by the Board of Trustees. (F) A legally adopted child shall have the same rights as a natural born child, but no pension shall be allowed to any stepchild or stepchildren of a deceased member. (G) Pension payments to widows, children and dependent parents shall not be decreased or reduced due to benefits received by them under any Workers ' Compensation Law. 7 .04 Non-Service Connected Death Benefits If any member shall die from causes not attributed to his duties, and such death shall occur after his having completed five (5) years of creditable service, or if any such member shall die subsequent to his having met the requirements for 19 retirement under Section 7 . 01 (A) (1) regardless of whether or not pension payments have commenced, the Trustees shall authorize and direct payment to the widow and/or child or children and/or a dependent parent in equal monthly installments as follows: (A) To the widow, if she shall have been married to the deceased member for ten (10) years or more, the amount of the pension to which the deceased member was entitled or receiving at the time of death or would have been entitled at the time of death under Section 7 . 01 of this Supplemental System, for the first twelve (12) months, and thereafter the greater of subparagraph (1) or subparagraph (2) , reduced by subparagraph (3) as follows: (1) seventy-five (75%) per cent of the pensions payable under the Base System and this Supplemental System, or (2) twenty-five (25%) per cent of the average monthly pay for the two (2) highest paid years, reduced by (3) the Base System Benefit. The monthly installments shall continue until the remarriage or death of the widow. If the widow shall have been married to the deceased member less than ten (10) years, the benefits as above provided shall be payable until remarriage or death, but in no case longer than for the period of the normal life expectancy of the deceased member at the time of his death, determined in accordance with the 1979 George B. Buck Mortality Table for males or such other table as shall be formally adopted by the Board of Trustees. (B) If the beneficiary of a member of the Base System who was not eligible to become a member of this Supplemental System is or becomes entitled to the non-service connected death benefit 20 under the terms of the Base System on or after October 1, 1988, the beneficiary shall be entitled to receive the non-service connected death benefit described in this Section 7 . 04 . Payment of the death benefit shall commence as of the Effective Date or following the member's date of death, if later. (C) To the child or children or dependent parent(s) , the provisions of Section 7 . 03 governing the conditions and restrictions applicable to the administration of children's or parents' pensions shall apply. Section 8. Medical Board The Board of Trustees shall designate a medical board to be composed of three physicians who shall arrange for and pass upon all medical examinations required under the provisions of this Supplemental System, shall investigate all essential statements or certificates made by or on behalf of a member in connection with an application for disability or retirement and shall report in writing to the Board of Trustees its conclusions and recommendations upon all matters referred to it. The payment for such services shall be determined by the Board of Trustees. Section 9 . Compulsory Retirement On compulsory retirement of a member on act of the Board of Trustees any such retired member shall have the right to appeal against such retirement by the Board of Trustees by appealing to a Court of proper jurisdiction, and said member shall defray his own expense in his appeal of such compulsory retirement. Section 10 . Cessation of Pension The pension provided for herein shall cease upon conviction of a felony of a member receiving the benefits herein provided and actual incarceration in a Penitentiary. A pension as provided herein shall be paid to the wife or children or dependent parent(s) 21 as herein prescribed for a deceased member under this Supplemental System, until his official release from incarceration, then the pension will be paid to the pensioner again. Section 11. Dismissal Members entitled to a pension shall not forfeit the same upon dismissal from the department, but shall be retired as herein prescribed. Section 12 . Recovering from Disability In the event a member who has been retired on a pension on account of permanent and total incapacity regains his health and is found by the Board of Trustees of this Supplemental System to be in such physical and mental condition as to meet the requirements of the Personnel Department for service acceptable to the City, the Board shall order his pension discontinued, and he shall be ordered to resume active service in the department from which he was retired at the same or similar work as that at which he was employed prior to his disability retirement, or at other work within the limits of his physical or mental capabilities at a rate of compensation not less than seventy (70%) per cent of the pay at the time of his return to active service for the classification occupied by him prior to his disability retirement. Upon request of the City Manager, the Board shall review the condition of any member receiving a pension for disability and shall submit to the City Manager a report thereon; and if there shall be substantial evidence that the retired member is capable of performing service acceptable to the City in the Department from which such member was retired, he shall be ordered to resume active duties and his pension shall be discontinued. Section 13. Computation of Pension Service 13.01 In computing service allowance, creditable service shall mean all service which is counted as creditable service under the Base System or under the City of Miami Beach Employees Retirement 22 System as of the member' s date of retirement or termination, all periods of time of actual work for which wages or salaries were received by the member in the service of the Fire and Police Departments, all military service for which employee contributions are made as provided in Section 19 , and all Accumulated Total Credit transferred to this Supplemental System in accordance with Section 4 . 04 . Notwithstanding any provision to the contrary, in no event shall the same period of service be counted more than once as creditable service under this Supplemental System. 13.02 Employees who become members of this Supplemental System, in order to receive credit for service rendered on and after the Effective Date and prior to their becoming a member, shall make contributions in the amount such member would have contributed had he been a member during the period of service for which credit is being purchased. In order to receive such credit, employees shall make payment within six (6) months of becoming a member. Notwithstanding the foregoing, any employee who transfers to the Base System or this Supplemental System whereby the Accumulated Total Credit in any other Pension System of the City is transferred to either the Base System or this System, then and in that event all of the creditable service time in such other System shall be considered creditable pension service time as hereinabove provided, and such employee need make no additional contribution for time credited. 13.03 The Board of Trustees shall establish a service record of all employees who may be entitled to participate in the benefits of this Supplemental System, and shall keep a record thereof. Section 14. Nonassignability of Pension No pension provided for herein shall be assignable or subject to garnishment for debt or to other legal process, and no pension provided for herein shall be subject to any deductions or assessments by the City of Miami Beach, Florida, nor shall any 23 benefits hereunder be altered or modified in any respect due to the fact that any member may be the recipient of any benefits from any other pension or pension plan; provided, however, Workers' Compensation benefits paid by the City to a retired member shall be credited against any pension payments payable on account of 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 . Section 15. Duration of Member' s Pension Pensions granted to retired members shall be paid to them for life and shall not be revoked nor in any way diminished except as provided in this Supplemental System, and the payment of the member to this Fund shall cease upon his retirement and acceptance of a pension. Section 16. Assets for Benefits of Members and Beneficiaries All assets of the Fund shall be held by the Board of Trustees in trust for use in providing the benefits of the Supplemental System and paying its expenses not paid directly by the City; provided that no part of the corpus or income of the Fund shall be used for, or diverted to, purposes other than for the exclusive benefit of members or their beneficiaries under the system, prior to the satisfaction of all liabilities for benefits with respect to them or for the administrative expenses of the system; and provided further, that no person shall have any interest in or right to any part of the earnings of the Fund, or any rights in, or to, any part of the assets thereof, except as and to the extent expressly provided in this Supplemental System. In case of termination of the Supplemental System, or in the event of the discontinuance of contributions thereunder having the effect of such termination, the rights of all members of the Supplemental System to bene- fits accrued to the date of such termination or discontinuance, to the extent then funded, shall be nonforfeitable. 24 Section 17. Re-examination of Pensions The Board of Trustees shall have the power to examine into the facts upon which any pensions are granted under this Supplemental System, and to ascertain if any pension has been granted or obtained erroneously, fraudulently, or illegally for any reason. Said Board shall also be empowered to purge the pension rolls of any pensions granted under this Supplemental System, if the same are found to be erroneous, fraudulent or illegal for any reason; and to reclassify any pensioner who, under this Supplemental System, is erroneously, improperly or illegally classified. Section 18. Return of Contribution Whenever any member in the service of either the Fire or Police Departments shall sever his connection with such Department either voluntarily or by lawful discharge, or by death not attributed to his active duties prior to the completion of five (5) years of membership in the Department, or by death in active service leaving no widow, or children or dependent parent(s) surviving him entitled to pension benefits under this Supplemental System, such member, or his estate, shall be entitled to the return of all of the monies he has contributed into this Supplemental System, together with accumulated interest on said sum, at the rate of three (3%) per cent per annum, computed until date of payment to said member, or his estate unless in the event of discharge or voluntary severance such member has at that time qualified under the terms of this Supplemental System for a pension as herein provided for: except that any member of this Supplemental System who separates from active service with the Fire or Police Departments to accept an appointment to any office in the Unclassified Service of the City shall continue to have all the rights, privileges and responsibilities of this Supplemental System provided, however, that any member of this Supplemental System who separates from active service with the Fire or Police Departments to accept an appointment to any office in the Classified Service 25 of the City shall immediately become a member of the City of Miami Beach Employees Retirement System and shall receive creditable service under that System for service which is creditable hereunder. Upon becoming a member of said System the Trustees shall transfer from the Funds of this Supplemental System to the City of Miami Beach Employees Retirement System an amount equal to three (3) times the accumulated amount of the member' s contributions, together with interest thereon to the date of transfer, that were paid by the employee to this Supplemental System. For purposes of this Section, monies a member has contributed shall include picked-up member contributions together with interest thereon. Section 19 . Military Service 19.01 Any member of the Supplemental System or any probationary employee in the Fire or Police Department who is absent from the service of the City because of service in the Armed Forces of the United States and if he shall have returned to the service of the City having applied to return while his reemployment rights were protected by law shall be entitled to preserve all retirement rights and privileges under this Supplemental System provided that such member, or such probationary employee after he becomes a member, shall contribute into the Supplemental System a sum equal to the amount such member would have contributed had he been a member during the period of service for which credit is being purchased, and creditable toward service retirement as in this Section hereinafter provided. Payment of such contributions shall be made within six (6) months after discharge from such active military service. 19 .02 A member who has at least twenty (20) years of creditable service and who is entitled to receive benefits under the Supplemental System may contribute an additional amount to the Supplemental System in order to receive service credit for his 26 years of active military service in the U.S. Army, Navy, Air Force, Marines or Coast Guard occurring prior to his date of employment with the City. A member may purchase up to four (4) years of such service. The price for each such year shall be ten (10%) per cent of the aggregate of his salary or wages during the twelve (12) calendar months immediately preceding the date of such purchase, and such price shall be prorated accordingly if a member' s election includes a fractional year of service. Any additional benefit attributable to service purchased under this Section 19 . 02 shall be determined in accordance with the three (3%) per cent benefit rate as described in Section 7 . 01 (B) (1) . Section 20. Severability Clause If any cluase, section or provision of this Supplemental System and the remaining portion of said System shall be in force and cffcct, and Shall be as valid as if such invalid portion thereof had not been incorporated thercin— Section 210. Distribution Limitation Notwithstanding any other provision of this Plan, all distributions from this Plan shall conform to Section 401 (a) (9) of the Internal Revenue Code in general and to Section 401 (a) (9) (C) of said Code in particular, as such Section was amended by the Technical and Miscellaneous Revenue Act of 1988 . Section 22-1. 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 subparagraphs (F) and (G) of Section 415 (b) (2) of said Code. 27 (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 subparagraphs (1) and (2) of Title 26 of the Code of Federal Regulations, Section 1.415-2 (d) , as modified by subparagraph (10) of said Regulation. Section 23,2 . REPEALER. All ordinances or parts in conflict herewith be and the same are hereby repealed. Section 243. SEVERABILITY. If any section, sentence, clause or phrase of this Ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portion of this Ordinance. Section 254. EFFECTIVE DATE. This Ordinance shall take effect on the Effective Date, as indicated in Section 3 . 07 , which shall mean June 1, 1989 except that if the City is required to initiate funding prior to October 1, 1989 the effective date shall be October 1, 1989 . PASSED and ADOPTED this 19th day of April , 1989. -4( 4 _/ L. OR ATTEST: FSM APPROVED )2z/ v DEPT I CITY CLERK �' �� • 1st reading 4/5/89V 2nd reading 4/19/89 41~ 1' HD/mml 4/13/89 28 4- &try Nieuege gear% .. FLORIDA 3 3 1 3 9 it *iINCOR ORATED)*% "VA CA TIONL,AND U. S. A. " OFFICE OF THE CITY MANAGER CITY HALL ROB W.PARKINS 1700 CONVENTION CENTER DRIVE CITY MANAGER TELEPHONE: 673-7010 COMMISSION MEMORANDUM NO. DATE: April 5, 1989 TO: Mayor Alex D•.e d and Members o e City Commi • 1"-_ Apr FROM: Rob W. Par 'ns • City Manager Vdi/'r SUBJECT: AN ORDINANCE C'EATING A SPECIAL FUND TO BE KNOWN AS THE CITY SUPPLEMENTAL PENSION FUND FOR FIREMEN AND POLICEMEN IN THE CITY OF MIAMI BEACH The City of Miami Beach has recently completed contract negotiations with both the International Association of Fire Fighters, Local 1510, (IAFF) and the Fraternal Order of Police, William Nichols Lodge, (FOP) . Both contracts have been ratified by the respective employee unions and will be presented to the City Commission for adoption. One of the negotiated provisions of those contracts is a Supplemental Pension Fund for the firemen and policemen employed by the City of Miami Beach. This Supplement would provide retirement benefits which would be in addition to those provided under the Police and Firemen's Pension Act, City of Miami Beach, Florida Chapter 23414, Laws of Florida, Special Acts of 1945 . ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the attached Ordinance creating a special fund to be known as the City Supplemental Pension Fund for Firemen and Policemen in the City of Miami Beach. PFL:me 15 AGENDA I TEM R- DATE 24- -t " U 9 — a) U • ›b O d-I 0 • ro O1 vv �; 4 ' v a) .O N •r1 4 E U 1 i 0 +i a) cd 011 0 $-1 a) CO u) -H PCI rzA • 'b •rl O 0 pp 1-1 cd 00 0 LH H Z ea 0 H C.) O rL0 14-1 H a.i 01 0 0 F' z ct3 ,0 w O �+ (12 p, L./ .° o 7 -H C) a) 'C7 U) ..0 0 0 a) 4 a 1-1 O .-1 r-•1 o (4-4 cd cd •r-I -H 1J bO U O O a) a) a) ••1 a 5 c v Cn a) CU •rl ,-I U •r-1 0 0 -H O P .--1 0 4-I d 0 r—I as 0 C/] P f+