Ordinance 93-2880 ORDINANCE NO. 93-2880
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
ORDINANCE NO. 1901 WHICH CREATED THE GENERAL
EMPLOYEES' PENSION SYSTEM; MODIFYING THE
POWERS AND DUTIES OF THE BOARD, AUTHORIZING
THE BOARD TO EMPLOY AN ADMINISTRATOR,
MODIFYING THE DUTIES OF THE FINANCE DIRECTOR,
PROVIDING FOR A REPEALER, SEVERABILITY AND AN
EFFECTIVE DATE.
Whereas, the Board of Trustees of the General Employees'
Pension System of the City of Miami Beach, Florida have requested
the ability to employ an Administrator under the joint supervision
of their Board and the Board of Trustees of the Unclassified
Employees' and Elected Officials Retirement System; and
Whereas, the Mayor and City Commission wish to make this
change and others to the Pension Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
Section 1 Article 7 is amended as follows:
7. 05 The Board shall annually elect from its membership a
Chairman and a Vice Chairman and shall elect a Secretary from among
the City Manager's appointees. Each trustee shall be entitled to
one (1) vote, and five (5) concurring votes shall be necessary for
a decision by the trustees at any meeting of the Board.
7 . 06 The Board shall have, in addition to all other powers and
duties arising out of this Ordinance not otherwise specifically
reserved or delegated to others, the following specific powers and
duties:
(a) Hold regular meetings at least quarterly in each year and
special meetings at such time as a majority of the Board
or the Chairman may deem necessary.
(b) Establish rules and regulations to implement the
provisions of this Ordinance, and formulate policy for
the proper administration of the System and the
transaction of its business.
(c) Consider and pass on all applications for retirement and
other benefits, authorize the granting of all retirement
allowances, pensions and lump sum settlements, and
suspend any payment or payments, all in accordance with
the provisions of this Ordinance.
(d) Adopt from time to time service and mortality tables and
the rate of regular interest for use in actuarial
calculations in connection with the System.
(e) Submit to the City Manager on or before July 1 of each
year an estimate of the amount of appropriation required
for the purpose of the system for the following fiscal
year.
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(f) Recommend to the City Commi33ion the Employment of such
actuarial, legal or investment counsel or specialized
technical assistance as may be required for the efficient
operation of the System; and prepare and submit to the
• _ - _ _ _ - = ginning of each fi3eal year,
o budget of the operating expenses for each year.
(g) Maintain accounts and records showing the fiscal
transactions of the System and keep in convenient form
such data as may be necessary for the actuarial
valuations of the System; require from each person
covered under the System such information as shall be
necessary for the proper operation of the System; require
the maintenance of adequate accounting records which
shall at all times reflect the financial condition of the
System.
(h) Provide for the receipt of all payments made to the
System and records thereof, and cause them to be
deposited immediately with the Finance Director of the
City. custodian of the fund.
(i) Keep a permanent record of all proceedings of the Board
which shall be available for examination by any Member,
Retirant or Pensioner, or by any Officer of the City.
(j ) Designate for specified periods, or as occasion may
require, three (3) physicians who are not eligible for
membership in the System as Physical Examiners; such
Physical Examiners shall arrange for, and conduct, all
physical and mental examinations required under this
Ordinance, shall investigate all essential statements and
certificates in connection with applications for
disability retirement, and shall report in writing to the
Board their conclusions and recommendations upon all
matters referred to them.
(k) Be the legal custodian of all cash and securities of the
System, invest and reinvest all cash not required to meet
current disbursements in securities; and subject to the
limitations of this Ordinance, the Board shall have full
power to hold, purchase, sell, assign, transfer and
dispose of any of the securities and investments as well
as the proceeds of such investments.
(1) Provide for certification on its behalf of all warrants
issued in accordance with actions of the Board
authorizing payments for benefits, expenses and
investments out of funds belonging to the System, and
provide for certification on its behalf of all amounts
required by the System to be levied as taxes by the City.
(m) Cause a general investigation to be made by a Consulting
Actuary, at least once every three (3) years, and cause
recommendations to be furnished as a result of such
investigation as to the actuarial tables and rates of
contributions to be used.
(n) Cause an audit of the affairs of the System to be made
annually, with interim quarterly reports by an
independent Certified Public Accountant, and submit a
copy thereof to the City Manager as soon as possible
after the end of each fiscal year.
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(o) Accept any gift, grant or bequest of any money or
securities under the terms designated by the grantor, or,
if no special purpose or allocation is specified, for
credit to the funds of the System.
(p) Make available to Members, Retirants and Pensioners a
financial statement including a summary of the report of
the Certified Public Accountant, and issue to each
Member, as soon as practicable following the close of
each fiscal year, an individual statement showing the
Accumulated Employee Contributions standing to his
credit.
(q) Require the preparation of an annual report as of the
close of each fiscal year for submission to the City
Commission; said report shall embody, among other things,
a financial balance sheet and a statement of receipts and
disbursements for the fiscal year, schedules of
acquisitions and sales or exchanges of investments, a
statement of investments owned at the close of the fiscal
year and other pertinent financial and operating data.
(r) Establish rules governing the election of the trustees as
described in Section 7 . 02 (b) and (c) .
.(s) May appoint an Administrator of such Pension System and
fix the terms of employment of such Administrator who
shall serve at the pleasure of the Board.
Section 2 Article 9 is amended as follows:
9. 01 moi~ Dir c}or Pension Administrator
The Finance Director Pension Administrator shall have
responsibility for the administration of the System. As such, he
will have responsibilities which shall include, but not necessarily
be limited to, the duties specified in this Section 9. 01.
(a) The Finance Director Pension Administrator shall
establish and maintain records on all persons covered
under the System.
(b) The Finance Director Pension Administrator shall verify
the amounts entered by the Payroll Department as
deductions for contributions by Employees to the System
and shall certify all payrolls on which such deductions
are entered.
(c) The Lei nance Director Pension Administrator shall receive
applications for retirement and other benefits, compute
retirement allowances, pensions and lump sum settlements,
compute and credit interest to individual accounts and
make such analyses, computations and other determinations
and records as the Board may deem necessary for the
efficient operation of the System.
(d) It shall be the duty of the Finance Director Pension
Administrator to notify the Board of any new Members,
withdrawal of Members, applications for retirement and
lump sum payments, and such other personnel information
as the Board may require.
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of the assets of the System and shall furnish bond or
deposit all cash on hand in regularly designated
depositories of the City and shall require surety or
collateral therefor as i3 required by the Charter or
Ordinances of the City for other funds of the City, and
shall hold all investments under the joint custody of
himself and the Board.
(e) (f) The Finance Director Pension Administrator shall
maintain necessary records to show receipts by payroll
deductions, City contributions, donations and investment
returns, and to show disbursements for retirement
allowances, pensions and lump sum settlements. He shall
also keep such other financial records of the moneys and
investments of the System as the Board deems necessary.
If) (g) All payments from the funds of the System shall be
made by the Chief Accountant Pension Administrator only
upon vouchers signed by the Finance D rector Chairman of
the Board of Trustees. A duly attested copy of a
resolution of the Board bearing on its face the specimen
signature of the Chief Accountant Pension Administrator
shall be filed as authority for making payments upon such
vouchers. No voucher shall be drawn unless it shall have
been previously authorized by resolution of the Board,
except that the Board may, by resolution authorize the
Finance Director Pension Administrator to issue vouchers
for refunds of Accumulated Employee Contributions in
accordance with Section 5. 08 and for minor adjustments in
contributions by Employees.
Jig) (h) For the purpose of meeting current disbursements,
cash equal in amount, as nearly as practicable, to the
regular demands for the ensuing month shall be kept
available in deposit.
9. 02 FINANCE DIRECTOR
(a) The Finance Director of the City shall be the
custodian of the assets of the System and shall furnish bond
or surety therefor acceptable to the Board. He shall deposit
all cash on hand in regularly designated depositories of the
City and shall require surety or collateral therefor as is
required by the Charter or Ordinances of the City for other
funds of the City, and shall hold all investments under the
joint custody of himself and the Board.
(b) With respect to the duties contained herein, the
Finance Director shall be considered a fiduciary of the
System.
Section 3 All Ordinances, and parts of ordinances, in
conflict herewith shall be and the same, are hereby repealed.
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Section 4 In the event any article, section, paragraph,
sentence, clause, or phrase of this Ordinance shall be adjudicated
invalid or unconstitutional, such adjudication shall in no manner
affect the other articles, sections, paragraphs, sentences, clauses
or phrases of this Ordinance, which shall be and remain in full
force and effect as fully as if the item so adjudged invalid or
unconstitutional was not originally a part hereof.
Section 5 This Ordinance shall take effect on December 1, 1993
after its adoption on second reading.
PASSED and ADOPTED by the Mayor and City Commission of
the City of Miami Beach, Florida this 20th day of October
1993 .
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Attest:
- ..c/t\ gxv,
City Clerk
1st reading 10/6/93
2nd reading 10/20/93
FORM APPROVED
LEGAL DEPT.
By
Date --Z--.
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a
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. 5 1 J-9 3
October 20, 1993
To: Mayor Seymour Gelber and
Members of the City Commission
From:Roger M. Carlton
City Manager
Subject: Changes to the General Employees' Retirement System Ordinance
Recommendation:
The Administration recommends that the City Commission adopt this Ordinance
on second reading after a public hearing.
Analysis_
The collective bargaining agreements between AFSCME and the City produced
numerous changes in the General Employees' Retirement System. One of the changes
negotiated was that the Board of Trustees would be responsible for paying the operating
expenses of the System. These expenses are estimated to be $700,000 this fiscal year
and are budgeted at $699,000 for fiscal year 1993/94. This change was made to assure
that the expenses of the System were incorporated into the decision making process of
the Board. As the Board of Trustees has become responsible for the operating expenses,
they have requested the ability to hire their own Administrator to conduct the day to day
affairs of the System. The Board prefers to have this control over the administration of the
System rather than having the Finance Director of the City named as the Administrator
in the Ordinance. As it is normal procedure to maintain autonomy of the pension
governance process, this request is supported by the Administration.
The attached Ordinance provides the ability to the Board to employ their own
Administrator and sets out the powers and duties of the Administrator. The Finance
Director of the City will continue to serve as custodian of the assets of the System as in
the past. A final change effected by this Ordinance is to provide for an annual election of
the officers of the Board of Trustees.
55
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ITEM
DATE LC'20-9-B
Although this Ordinance would allow the Board of Trustees of the General
Employees' Retirement System to employ their own Administrator, they have agreed to
jointly employ a single Administrator reporting to them and the Board of Trustees of the
Unclassified Employees' and Elected Officials' Retirement System.
Conclusion:
The employment of a full time Administrator by the Board of Trustees will have a
positive impact on controlling the operating costs incurred by the Pension Plan.
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