Ordinance 94-2956 ORDINANCE NO. 94-2956
AN ORDINANCE OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AMENDING ORDINANCE
NO. 1901, WHICH ESTABLISHED THE
RETIREMENT SYSTEM FOR GENERAL
EMPLOYEES 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 ' .he 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 General Employees 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. 1901, which established
the Retirement System For General Employees 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.
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(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.
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SECTION 4 . EFFECTIVE DATE.
This Ordinance shall take effect retroactively on the 1st day
of January, 1993 .
PASSED and ADOPTED this 7th da o December , 1994 .
P 1 /
ATTEST:
MAYOR
/17kCikoaj
CITY CLERK
1st reading 11/16/94
2nd reading 12/7/94
SWS:scf:5.ldisk7\retirpin.ord
FORM APPROVED
LEGAL DEPT.
By
Date Stun2.z
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. (7 1
TO: Mayor Seymour Gelber and DATE:
Members of the City Commission December 7, 1994
FROM: Roger M.Canto or i
City Manager
SUBJECT:
SECOND READING AMENDING ORDINANCE NO. 1901,WHICH ESTABLISHED THE
RETIREMENT SYSTEM GENERAL EMPLOYEES 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 this Ordinance be passed and adopted by the City Commission
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 General Board of Trustees and Board's Counsel indicate that although this
procedure had been followed since January 1, 1993, as required, Ordinance No. 1901 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. 1901 so that it will comply with the
Unemployment Compensation Amendments of 1992 .
AGENDA ITEM _ R-3 -C
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
RETIREMENT SYSTEM FOR (305)673-7437
GENERAL EMPLOYEES
DA l'E: November 12, 1994
TO: Roger M. Carlton •
City Manager
FROM: Margaret A. Arculeo ,
Pension Administrator
RE: Ordinance Change - "Distribution to Retirement Plan"
Section 5.08 Refund of Accumulated _Contributions of Ordinance No. 1901, which established the
Retirement System for General Employees 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 credited to him 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 General Pension Board has been procedurally in compliance with the Unemployment
Compensation Amendments of 1992, Ordinance No. 1901 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
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