Ordinance 92-2813ORDINANCE NO. 92-2813
AN ORDINANCE OF THE CITY OF MIAMI BEACH,
FLORIDA, PROVIDING FOR THE CREATION OFA DEFINED
CONTRIBUTION RETIREMENT PLAN UNDER SECTION
401(A) OF THE INTERNAL REVENUE CODE OF 1986,
ESTABLISHING THE BENEFITS PROVIDED UNDER THE
DEFINED CONTRIBUTION PLAN, PROVIDING FOR
SEVERABILITY, A REPEALER AND AN EFFECTIVE DATE.
Whereas, the City Commission of the City of Miami Beach, Florida, wishes to
establish a defined contribution retirement plan for its unclassified employees as an optional
plan to the Unclassified Employees and Elected Officials Retirement System; and,
Whereas, the benefits to the employee and the obligation of the City must be
established for the proper maintenance of the plan;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
Section 1 Establishment of a Defined Contribution Retirement Plan for the City.
ARTICLE 1. Creation and Purpose of the System
1.01 A retirement system is hereby created under and by the authority of
Chapter 166, Florida Statutes. This system shall be known as the "City of Miami Beach
Defined Contribution Retirement System" and shall be hereinafter referred to as the
"Defined Contribution Plan" or the "System".
1.02 The purpose of the Defined Contribution Plan is to provide retirement
and other related benefits for eligible employees who elect membership in this System as
an option to other retirement systems sponsored by the City.
1.03 The System shall at all times comply with the provisions of section
401(a) of the Internal Revenue Code of 1986, as the same may be amended from time to
time.
ARTICLE 2. Definitions
For purposes of the Defined Contribution Plan, certain words and phrases shall have
the meanings ascribed to them in this article except when the context otherwise requires.
The masculine pronoun, whenever used, shall include the feminine.
2.01 "City" or "Employer" means the City of Miami Beach, Florida.
2.02 "City Commission" or "Commission" means the City Commission of
the City of Miami Beach, Florida.
2.03 "Employee" means any person employed by the City on a regular basis,
who is receiving compensation from the City for personnel services, and who has selected
this System as the retirement plan of his choice, exclusive of the following:
(a) Persons whose services are compensated on a contractual basis.
(b) Persons employed on a provisional, original probationary or other
temporary basis.
(c) Members of boards or commissions, officers, or employees receiving
no salary or a nominal salary or fee.
(d) Persons whose regular employment with the City is for less than thirty
(30) hours per week.
(e) Members of any of the other City sponsored defined benefit retirement
plans.
2.04 "Members" means persons who have selected this System for their
retirement plan rather than one of the other City sponsored retirement plans.
2.05 "Earnings" means all compensation for personal services rendered as
an employee, but excluding any extra compensation allowance such car allowance or
uniform allowance.
2.06 "Board of Trustees" means the City Manager or his designee, the
Personnel Director and the Finance Director of the City.
2.07 "Employee Account" or "Account" means the individual employee self
directed investment account containing all contributions made by and for the employee.
ARTICLE 3. Membership
3.01 Any person employed on or after October 18, 1992, in the unclassified
service of the City, shall have the right to select this System as an optional retirement plan
to the Unclassified Employees and Elected Officials Retirement System.
3.02 Any current employee of the City who is a member of the Unclassified
Employees and Elected Officials Retirement System shall have the irrevocable right to
elect to transfer membership from that plan the Defined Contribution System. Such right
of transfer may be limited by a specific time limitation during which the election on the
transfer may be made.
3.03 Any employee who returns to the unclassified service of the City, who
previously elected membership in this System shall be continued in this System upon his
return to unclassified service.
ARTICLE 4. Contributions
4.01 Upon employment, or in the case of employees transferring
membership under section 3.02 above, upon transfer, the employee shall have the
irrevocable option to select the level of contribution which shall be withheld from his
compensation and deposited into his account. Such contributions may be within a range of
contributions of from a minimum of five percent (5%) of the employee's annual earnings
to a maximum of fifteen percent (15%) of the employee's annual earnings. Once an
employee selects the level of his contribution to the System, that level of contribution may
be amended annually on a date established by the Board of Trustees.
4.02 The City shall contribute into the account of the employee an amount
equal to the employee contribution to a maximum contribution of ten percent (10%) of the
employee's earnings.
4.03 All contributions made by and for the employee shall become the
property of the employee upon contribution. The employee shall have a right to all of the
funds in his account, including earnings thereon, upon separation of service with the City
for any reason, and a right to withdraw the funds upon retirement.
ARTICLE 5. Retirement
5.01 All employees transferring their membership under section 3.02
hereunder shall be eligible to retire and begin withdrawing funds from their account upon
their separation of service from the City and the first day of the calendar month coincident
with or next following the attainment of the fifty-fifth anniversary of their birth.
5.02 All employees who become employees on or after October 18, 1992,
shall be eligible to retire and begin withdrawing funds from their account upon their
separation of service from the City and the first day of the calendar month coincident with
or next following the attainment of the sixtieth anniversary of their birth.
5.03 Any employee who is totally and permanently disabled and unable to
carryout the requirements of their position in City service shall be entitled to a disability
retirement. Such disability retirement benefit shall be equal to two-thirds of the employee's
annual earnings, provided that such benefit shall not exceed $5,000 a month. This disability
payment will commence upon the completion of the sixth month of such disability and
continue throughout the life of the disabled employee. The City shall be obligated to
purchase an insurance policy for employees in this System which shall provide this benefit.
An offset to the fullest extent allowed by law for all payments made to the disability retiree
for worker's compensation payments, shall be taken by the Board of Trustees. The Board
of Trustees shall consider all requests for total and permanent disability, and shall make
positive recommendations to the insurer of all employees whom it determines meet the
insurer's criteria for total and permanent disability. The final determination of disability
shall be made by the insurer.
ARTICLE 6. Board of Trustees
6.01 The City of Miami Beach Defined Contribution Retirement System
shall be construed as a trust and shall be administrated by a Board of Trustees. The Board
shall have the general responsibility for the proper operation and management of the City
of Miami Beach Defined Contribution Retirement System and for making effective the
provisions of this Ordinance.
6.02 The Board shall consist of three (3) persons, each of whom shall be
designated as a Trustee. The members of the Board shall be as follows:
(a) The City Manager or his designee
(b) The Personnel Director of the City
(c) The Finance Director of the City
(d) A quorum shall consist of two members and the affirmative votes of two
members shall be necessary for the Board to take action.
(e) Each Trustee shall have one vote.
6.03 Each Trustee shall take an oath of office within ten (10) days after his
appointment. A trustee shall serve without compensation but shall be reimbursed for any
expenses incurred as a result of service as a trustee.
6.04 The Board shall have all powers and duties arising from this Ordinance
and from Part 7, Chapter 112, Florida Statutes for the proper operation and maintenance
of the Defined Contribution System.
ARTICLE 7 General
7.01 The City Attorney shall serve as legal advisor to the Board when
requested to do so, and his services to the Board shall not be compensated additionally.
7.02 All Employee Accounts, disability payments and other benefits
provided in accordance with this System shall not be assignable.
7.03 Any person who shall knowingly make any false statement, or shall
falsify, or permit to be falsified, any record or records of the Defined Contribution Plan in
any attempt to defraud the Defined Contribution Plan shall be guilty of a misdemeanor, and
shall be punishable therefor, upon conviction, by a fine of not more than one thousand
dollars ($1,000.00) or imprisonment for not more than ninety (90) days, or both, in the
discretion of the Court.
Section 2 Repealer All ordinances or parts of ordinances in conflict herewith be and
the same are hereby repealed.
Section 3 Severability If any article, section, subsection, clause or provision of this
ordinance is held invalid, the remainder shall not be effected by such invalidity.
Section 4 Effective Date This Ordinance shall become effective on the 18th day
of October, 1992.
Passed and Adopted this 8th day of Octob
Attest:
F
City Clerk i09 tft+i._
1st reading 9/16/92
2nd reading 10/8/92
,1992.
Mayor
FORM APPROVED
LEGAL DEPT.
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