Ordinance 89-2675 ORDINANCE NO. 89-2675
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AMENDING ORDINANCE NO. 1901, WHICH
CREATED A RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE
CITY OF MIAMI BEACH; AMENDING SECTION 2 .09 OF ARTICLE 2
ENTITLED "DEFINITIONS" BY PROVIDING THAT "FINAL AVERAGE
MONTHLY EARNINGS" FOR A MEMBER RETIRING ON OR AFTER
OCTOBER 1, 1990 SHALL MEAN ONE-TWELFTH OF SAID MEMBER'S
AVERAGE ANNUAL EARNINGS DURING THE TWO HIGHEST PAID YEARS
OF HIS CREDITABLE SERVICE; AMENDING ARTICLE 5 ENTITLED
"BENEFITS" BY AMENDING SECTION 5.01 ENTITLED "NORMAL
SERVICE RETIREMENT ALLOWANCE" PROVIDING THAT ANY PERSON
WHO IS A MEMBER ON OR AFTER OCTOBER 1, 1990, SHALL BE
ELIGIBLE TO RETIRE UPON COMPLETION OF FIVE (5) YEARS OF
CREDITABLE SERVICE AND ATTAINMENT OF FIFTY (50) YEARS OF
AGE, PROVIDING A METHOD OF COMPUTING THE RETIREMENT
ALLOWANCE FOR SAID MEMBERS, PROVIDING THAT MEMBERS WHO
RETIRE BETWEEN OCTOBER 1, 1989 AND SEPTEMBER 30, 1990
SHALL RETIRE AT THE SAME AGE AND WITH THE SAME RETIREMENT
ALLOWANCE AS PERSONS WHO BECAME MEMBERS OF THE SYSTEM ON
OR AFTER NOVEMBER 1, 1976, BUT THAT ON AND AFTER OCTOBER
1, 1990 SAID RETIRANTS SHALL RECEIVE THE SAME ALLOWANCE
AS MEMBERS RETIRING ON OR AFTER OCTOBER 1, 1990, AND BY
AMENDING SECTION 5.06 ENTITLED "DEATH BENEFITS AFTER
RETIREMENT" BY PROVIDING THAT CHILDREN OF RETIRANTS WHO
ARE NOT SURVIVED BY A SPOUSE MAY BE ELIGIBLE TO RECEIVE
A PENSION UNTIL THEY MARRY, DIE OR ATTAIN THE AGE OF
EIGHTEEN (18) YEARS, OR TWENTY-TWO (22) YEARS IF THEY ARE
FULL-TIME STUDENTS; PROVIDED, HOWEVER, THAT SUCH CHILDREN
WHO ARE MENTALLY OR PHYSICALLY HANDICAPPED MAY CONTINUE
TO RECEIVE A PENSION UNTIL THEY RECOVER FROM SAID
HANDICAPS, AND PROVIDING THAT DEPENDENT PA. ENTS OF
RETIRANTS WHO HAVE NO SURVIVING SPOUSE OR ELIGIBLE
CHILDREN MAY RECEIVE A PENSION; AMENDING SECTION 6.02
ENTITLED "CONTRIBUTIONS BY MEMBER" OF ARTICLE 6 ENTITLED
"FINANCING" BY PROVIDING THAT ON OR AFTER OCTOBER 1, 1990
ALL MEMBERS OF THE SYSTEM SHALL CONTRIBUTE EIGHT PER
CENTUM (8%) OF THEIR EARNINGS THROUGHOUT THEIR SERVICE
AS EMPLOYEES; REPEALING ALL ORDINANCES IN CONFLICT
THEREWITH; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR
AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BOWIE,
FLORIDA:
Section 1.
That Section 2 . 09 of Article 2 entitled "Definitions" of City of
Miami Beach Ordinance No. 1901 be amended to read as follows:
Article 2 . Definitions
2 .09 "Final Average Monthly Earnings" means, in the
case of a person who became a Member of the System on or
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after November 1, 1976, one-twelfth of the average annual
earnings of the Member during the three highest paid
years of his creditable service; in the case of a person
who became a Member prior to November 1, 1976 or who
retires on or after October 1, 1990, this term means one-
twelfth of his average annual earnings during the two
highest paid years of his creditable service. (Ord. No.
76-2075, §1. )
Section 2 .
That Sections 5. 01 entitled "Normal Service Retirement Allowance"
and Section 5. 06 entitled "Death Benefits" of Article 5 entitled
"Benefits" of City of Miami Beach Ordinance No. 1901 be amended to
read as follows:
Article 5. Benefits
5.01 Normal Service Retirement Allowance
(a) The normal retirement date of a person who
became a Member on or after November 1, 1976, shall be
the first day of the calendar month coincident with or
next following the 62nd anniversary of his birth or the
date as of which he completes five years of creditable
service, whichever is later.
The normal retirement date of a person who
became a member prior to November 1, 1976, shall be the
first day of the calendar month coincident with or next
following the date as of which he first meets any one of
the following combinations of attained age and years of
creditable service:
ATTAINED • YEARS OF CREDITABLE
AGE • SERVICE
55 • 20
56 • 17
57 • 14
58 • 11
59 8
60 • 5
Any Member may retire on a normal service
retirement allowance upon the termination of his
employment on or after his normal retirement date.
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(Remainder of paragraph 5. 01 (a) pertaining to
mandatory retirement deleted by Ordinance No. 77-2107,
passed and adopted November 16, 1977 . )
(b) Notwithstanding the provisions of
Paragraph (a) of this Section 5. 01, eligibility for
retirement on a normal service retirement allowance of
a lifeguard in the Beach Patrol and a policeman or
fireman who is a Member of this System, not being a
member of the City Pension Fund for Policemen and
Firemen, shall be governed by this Paragraph (b) .
(1) The normal retirement date of a lifeguard
in the Beach Patrol shall be the first day of the
calendar month coincident with or next following the 50th
anniversary of his birth or the date as of which he
completes twenty years of creditable service, whichever
is later.
(2) The normal retirement date of a policeman
or fireman who was a Member of the System on October 31,
1976, not being a member of the City Pension Fund for
Policemen and Firemen, shall be the first day of the
calendar month coincident with or next following the 50th
anniversary of his birth or the date as of which he
completes twenty years of creditable service, whichever
is later.
(3) Any such Member shall be retired
automatically no later than the first day of the calendar
month following the attainment of:
Age 55, in the case of Lifeguards I and
Lifeguards II ;
Age 60, in the case of Lifeguard Lieutenants
and Lifeguard Captains; and
Age 65, in the case of Policemen and Firemen.
(Ord. No. 76-2075, §1. )
(c) The normal service retirement allowance
payable upon the retirement of a member on or after his
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normal retirement date shall be as follows:
(1) In the case of a person who became a
Member of the System on or after November 1, 1976, two
and one-quarter per centum (2-1/4%) of his final average
monthly earnings multiplied by the number of his years
of creditable service not in excess of twenty-five (25)
plus two per centum (2%) of such final average monthly
earnings multiplied by the number of his years of
creditable service in excess of twenty-five (25) ,
provided that such allowance shall not exceed eighty per
centum (80%) of his final average monthly earnings;
(2) In the case of a person who became a
Member of the System prior to November 1, 1976, if such
retirement occurs on or after July 1, 1969 , two and
three-quarters per centum (2-3/4%) of his final average
monthly earnings multiplied by the number of his years
of creditable service not in excess of twenty-five (25)
plus two per centum (2%) of such final average monthly
earnings multiplied by number of his _years of creditable
service in excess of twenty-five (25) , provided that such
allowance shall not exceed eighty per centum (80%) of his
final average monthly earnings. (Ord. No. 76-2075, §1. )
(d) If the Accumulated Employee Contributions
credited to a person who became a Member prior to
November 1, 1976, are less than the amount which would
have been credited to him if he had contributed at the
rate of six per centum (6%) of his earnings from the time
he became a Member under the predecessor system governed
by the provisions of Ordinance No. 845, the amount
computed as a normal service retirement allowance in
accordance with Paragraph (c) of this Section 5. 01 shall
be reduced by an amount which is the actuarial equivalent
of the lump sum amount required to be added to his
Accumulated Employee Contributions to bring such
contributions to the level which he would have obtained
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by contributions at the rate of six per centum (6%) of
his earnings from the date of his membership under the
predecessor system governed by Ordinance No. 845. (Ord.
No. 76-2075, §1. )
(e) Notwithstanding the above paragraphs, any
person who is a member on or after October 1, 1990, shall
be eligible to retire upon completion of five (5) years
of creditable service and upon the attainment of the
fiftieth anniversary of his birth. For persons eligible
to retire under this paragraph, the retirement allowance
shall be computed as follows: final average monthly
earnings multiplied by three per centum (3%) per year of
creditable service for the first fifteen (15) of such
years and four per centum (4%) per year of creditable
service for each such year in excess of fifteen (15) , to
a maximum of 90% of such final average monthly earnings.
For those members who retire between October 1, 1989 and
September 30, 1990, the age of retirement and retirement
allowance shall be as set forth in paragraph (a) and
paragraphs (c) (1) and (2) above until October 1, 1990;
on or after October 1, 1990 the retirement allowance
shall be as set forth above in this paragraph.
5.06 Death Benefits after Retirement
(a) Upon receipt of evidence, satisfactory to
the Board, of the death of a Retirant, a monthly pension
shall be payable to the surviving spouse of the deceased
Retirant, provided that the spouse had been married to
the Retirant on the date of his retirement or termination
of service, whichever was first, and for at least one (1)
year prior to such date; and further provided, that if
the Retirant had elected an option in accordance with
Section 5. 07 which was in effect at the time of his
death, monthly benefits shall be continued after his
death, in lieu of benefits under this Section 5. 06, in
accordance with the option.
(b) The monthly pension payable to the
surviving spouse of a deceased Retirant pursuant to the
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foregoing paragraph of this Section 5. 06 shall be equal
to fifty per centum (50%) of the retirement allowance
which would have been payable to the deceased Retirant
if he had been alive at the time of the monthly payment;
provided that, if the surviving spouse is more than
fifteen (15) years younger than the deceased Retirant,
such monthly pension shall be reduced to an amount which
is the actuarial equivalent of such pension for a spouse
exactly fifteen (15) years younger than the deceased
Retirant.
(c) If any such deceased Retirant is not
survived by a spouse entitled to a pension in accordance
with the foregoing paragraphs of this Section 5. 06 or if
the death of such a spouse occurs after pension payments
have commenced in accordance with the foregoing
paragraph, the pension which would otherwise have been
payable to a surviving spouse eligible therefor and not
more than fifteen (15) years younger than the deceased
Retirant shall be payable to the dependent child or
children of the said deceased Retirant, if any, divided
in such manner as the Board in its discretion shall
determine, to continue until every such child 1) marries
or dies, or 2) attains eighteen (18) twenty one (21)
years of age or twenty-two (22) years of age in the case
of a child who is a full-time student in high school or
college; provided that in the case of a physically or
mentally handicapped child, the pension shall continue
until the child recovers from the handicap.
Notwithstanding the above, only children who were
dependent beneficiaries of the Retirant on the date of
his retirement or termination of service, whichever is
first, shall be eligible for a pension under this
paragraph.
(d) If there are no pension benefits payable
to a surviving spouse, child or children pursuant to
paragraphs (a) or (c) above, then the aforementioned
pension shall be paid to the dependent parent, if any,
of the deceased member. If both parents are dependent,
such benefit shall be shared equally between them.
(e) (d) Anything in this Section 5. 06 to the
contrary nothwithstanding in the event that an optional
benefit had been elected by a Retirant in accordance with
Section 5. 07 and such election is in effect at the time
of his death, monthly benefits, if any, shall be payable
after his death to the person designated as the
contingent annuitant in accordance with the optional
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election and no benefits shall be payable as a result of
the death of the Retirant under this Section 5. 06.
Section 3.
That Section 6. 02 entitled "Contributions by Members" of Article
6 entitled "Financing" of City of Miami Beach Ordinance No. 1901
be amended to read as follows:
Article 6. Financing
6.02 Contributions by Members
(a) Each Member whose employment with the City
commences on or after November 1, 1976, shall contribute
to the System five per centum (5%) of his earnings
throughout his service as an Employee.
(b) Each Member whose employment with the City
commenced prior to November 1, 1976, shall contribute to
the system six per centum (6%) of his earnings throughout
his service as an Employee; provided that any such Member
who was contributing five per centum (5%) of his earnings
to the predecessor system as of November 17, 1971 the
effective date of thi3 Ordinance and thereafter to
October 31, 1976, may continue to contribute at such rate
to this System during his continuous service as an
Employee; and further provided that an election to
contribute at the higher rate by such a Member shall be
irrevocable. (Ord. No. 76-2075, §1. )
(c) Notwithstanding paragraphs (a) and (b)
above, any person who is a Member on October 1, 1990,
shall contribute to the System eight per centum (8%) of
his earnings throughout his service as an Employee after
said date.
Section 4. Repealer.
That all Ordinances or parts of Ordinances in conflict therewith
be and the same are hereby repealed.
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Section 5. Severability.
If any section, subsection, clause or provision of this Ordinance
is held invalid, the remainder shall not be affected by such
invalidity.
Section 6. Effective Date.
This Ordinance shall take effect on the 16th day of December ,
1989.
PASSED and ADOPTED this 6th day of December
1989 .
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_a/(-/-U/L-
VICE - MAYOR
ATTEST:
FORM APPROVED
LEGAL DEPT.
CITY CLERK (��cr'"
By
1st reading 11/15/89 /7/Ort
2nd reading 12/6/89 Date
AMW/SWS:vm
11/6/89
8
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OFFICE OF THE CITY MANAGER CITY HALL
ROB W.PARKINS 1700 CONVENTION CENTER DRIVE
CITY MANAGER nn TELEPHONE: 673-7010
COMMISSION MEMORANDUM NO. (.,
DATE: November 15, 1989
ATO: Mayor Alex D-• d and
Members : the City Comms •'n
FROM: Rob W. P. 'ns
City Manager or 1•
SUBJECT: CHANGES TO THE GENERAL EMPLOYEES PENSION SYSTEM FROM NEGOTIATED
LABOR SETTLEMENTS
This Ordinance which is the result of negotiations with the two
unions who represent General Employees, Benevolent and AFSCME.
This pension settlement closely parallels the settlement previous-
ly reached with the Police and Fire Unions. This settlement will
go into effect on October 1, 1990, and consolidate the two separate
segments of the System. This settlement will allow employees to
retire at age 50 with a benefit equivalent to three percent for the
first fifteen years of service and four percent for every additional
year to a maximum of ninety percent of the highest two year average
of compensation. Employees will contribute eight percent of pay to
the System.
This revised pension plan will not be in force until next fiscal
year at which time this change will cost the City approximately
$350,000.
Administration Recommendation:
The Administration recommends that the City Commission adopt this
Ordinance on first reading and schedule the public hearing and
second reading on December 6, 1989.
RWP:RJN:sw
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