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Ordinance 94-2955 ORDINANCE NO. 94-2955 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 88-2603, WHICH ESTABLISHED THE RETIREMENT SYSTEM FOR UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS OF THE CITY OF MIAMI BEACH BY ADDITION OF ARTICLE 11, ENTITLED "DISTRIBUTION TO RETIREMENT PLAN" , PROVIDING THAT CERTAIN DISTRIBUTEES MAY ELECT TO HAVE ELIGIBLE BENEFIT DISTRIBUTIONS PAID DIRECTLY TO AN ELIGIBLE RETIREMENT PLAN; PROVIDING FOR A REPEALER, SEVERABILITY AND A RETROACTIVE EFFECTIVE DATE OF JANUARY 1, 1993 . WHEREAS, in order to comply with the requirements of the Unemployment Compensation Amendments of 1992 , the City must provide certain distributees with the right to elect to have eligible benefit distributions paid directly to an eligible retirement plan; and WHEREAS, the amendment set forth herein was recommended by the Board of Trustees of the Retirement System for Unclassified Employees and Elected Officials of the City of Miami Beach. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. ADDITION OF ARTICLE That City of Miami Beach Ordinance No. 88-2603 , which established the Retirement System For Unclassified Employees and Elected Officials is hereby amended by addition of Article 11 , to read as follows : ARTICLE 11. Distribution to Retirement Plan 11.01 Election by Distributee This Section applies to distributions made on or after January 1, 1993 . Notwithstanding any provision of this Ordinance to the contrary that would otherwise limit a distributee' s election under this Article, a distributee may elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 11 . 02 Definitions For purposes of this Section, the following definitions shall apply: (A) Eligible rollover , distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include : any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee' s designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Section 401 (a) (9) of the Internal Revenue Code; and the portion of any distribution that is not includible in gross income . 2 (B) Eligible retirement plan; An eligible retirement plan is individual retirement account described in Section 408 (a) of the Internal Revenue Code, an individual retirement annuity described in Section (408 (b) of the Internal Revenue Code, an annuity plan described in Section 403 (a) of the Internal Revenue Code, that accepts the distributee' s eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving ' spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. (C) Distributee : A distributee includes an employee or former employee . In addition, the employees' s or former employee' s surviving spouse are distributees with regard to the interest of the spouse . (D) Direct rollover: A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. SECTION 2 . REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 3 . SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. 3 SECTION 4 . EFFECTIVE DATE. This Ordinance shall take effect retroactively on the 1st day . of January, 1993 . PASSED and ADOPTED this 7th day . " December 1994 . ATTEST: All p 0 / MAYOR • icl _a.. A :-&,trw,---- - CITY CLERK 1st reading 11/16/94 2nd reading 12/7/94 SWS:scf:5.ldisk7\retire.ord r FORM APPROVED LEGAL DEPT. By -.3-1- D Date 11-__ __-. 4 , CITY OF M ' AMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. CT Cr) -9 cr TO: Mayor Seymour Gelber and DATE: Members of the City Commission December 7, 1994 FROM: Roger M.Cant City Manager SUBJECT: SECOND READING AMENDING ORDINANCE NO.88-2603,WHICH ESTABLISHED THE RETIREMENT SYSTEM FOR UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS OF THE CITY OF MIAMI BEACH BY ADDITION OF ARTICLE 11, ENTITLED "DISTRIBUTION TO RETIREMENT PLAN",PROVIDING THAT CERTAIN RECIPIENTS OF PENSION BENEFITS MAY ELECT TO HAVE ELIGIBLE BENEFIT DISTRIBUTIONS PAID DIRECTLY TO AN ELIGIBLE RETIREMENT PLAN; PROVIDING FOR A REPEALER,SEVERABILITY AND AN EFFECTIVE DATE. Administrative Recommendation The Administration recommends that the Mayor and City Commission adopt the Ordinance upon second reading. Background The Ordinance was presented to the City Commission and passed on first reading November 16, 1994. Analysis The Unemployment Compensation Amendments of 1992 require the sponsor of a tax-qualified retirement plan to amend its plan to permit a participant to elect to have a single sum distribution that is eligible for a rollover to be transferred directly to an employer-sponsored defined contribution plan or to an individual retirement account with a bank or financial institution as specified by the participant. Review by the Unclassified Board of Trustees and Board's Counsel indicate that although this procedure had been followed since January 1, 1993, as required, Ordinance No. 88-2603 must be amended by December 31, 1994, to contain specific language to comply with the Unemployment Compensation Amendments of 1992. There will be no actuarial impact on the Fund by the passage of the amendment, and an impact statement will not be required of the Actuary. Conclusion The adoption of the amendment will update Ordinance No. 88-2603 so that it will comply with the Unemployment Compensation Amendments of 1992 . AGENDA ITEM R'3 €3 - c:\w1W o dinance\nnempcomp.nnc DATE 12-'7-9 q CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 UNCLASSIFIED EMPLOYEES AND 673-7437 ELECTED OFFICIALS RETIREMENT SYSTEM DA 1'h: November 12, 1994 TO: Roger M. Carlton City Manager FROM: Margaret A. Arculeo Pension Administrator RE: Ordinance Change Section 5.07 Refund of Accumulated Contributions of Ordinance No. 88-2603, which established the Retirement System for Unclassified Employees and Elected Officials of the City of Miami Beach, provides that A Member may elect, upon ceasing to be an Employee for any cause other than retirement or death, to receive in one sum the Accumulated Employee Contributions, etc. Prior to January 1, 1993,the refunded taxable Accumulated Employee Contributions were subject to tax, and not eligible for rollover. (Rollover being an eligible retirement plan.) The Unemployment Compensation Amendments of 1992 gave Employees, or former Employees, the ability to have any portion of the taxable Accumulated Employee Contributions paid directly to an eligible retirement plan specified by the Employee, or former Employee. Although the Pension Board has been procedurally in compliance with the Unemployment Compensation Amendments of 1992, the Ordinance must be amended to contain the specified language. The Actuarial firm of Kruse, O'Connor &Ling, Inc. has advised that such an amendment will have no actuarial impact on the Fund, and an Actuarial Impact Statement will not be required. The above information has been outlined in the Commission Memorandum, and if additional information is required, please advise. Thank you for your assistance in this matter. /ma Enc. c:\Mwlo/dinance\onempcomp.mc O •ri 1J •r1 Q) b }~ b a) fa � J J U1 •a a) J.) R (TN c�1 Crl 0 I O .FJ 1/40 O\ N 0 I O CO• •rl • O CO sJ z • -0 Z W O •r1 I--I U z sa L z 4J -I Q' a) U) • • O 1-1 G A • 2 O •- '- • - 't) • O• a) • r-I • bD C.) • g •r"I • rl i.1 b 1-4 41 Cd • ty4 o 40