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Ordinance 95-3002 ORDINANCE NO. 95-3002 AN ORDINANCE OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE 1901 WHICH CREATED THE GENERAL EMPLOYEES PENSION SYSTEM, BY AMENDING SECTION 5.04, DISABILITY RETIREMENT ALLOWANCE, TO PROVIDE THAT MEMBERS RETIRING AFTER THE EFFECTIVE DATE HEREOF SHALL BE ELIGIBLE FOR A DISABILITY RETIREMENT PRIOR TO OR AFTER NORMAL RETIREMENT AGE AND TO PROVIDE THAT SUCH MEMBERS' ANNUAL EARNINGS FROM EM- PLOYMENT SHALL NOT EXCEED AN AMOUNT WHICH, WHEN ADDED TO THE DISABILITY RETIREMENT ALLOW- ANCE PAYMENTS, WOULD RESULT IN A COMBINED EARNED INCOME OF 200% OF THE MAXIMUM CURRENT SALARY FOR THE CLASSIFICATION FROM WHICH SAID MEMBER WAS RETIRED, IF SAID DISABILITY RETIRE- MENT ALLOWANCE IS SERVICE-CONNECTED; PROVIDING FOR A REPEALER, SEVERABILITY AND AN EFFECTIVE DATE. Whereas, the City Commission of the City of Miami Beach, Florida, adopted Ordinance No. 1901 which created the General Employees Pension System ( "System" ) , and, Whereas, the City Commission is desirous of amending the System as set forth in this Ordinance, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1 - That Section 5 . 04 of Ordinance No. 1901 be amended by amending the following subsections and by adding the following paragraphs as follows : 5 . 04 (c) 1 . The disability retirement allowance pay- able to a Member retiring under the provisions of this Section 5 . 04 shall be an amount computed as a normal service retirement allowance in accordance with Section 5 . 01 on the basis of the Member's final average monthly 1 earnings and creditable service at the time of disability retirement; provided that the amount of such allowance shall be modified in accordance with the following thei#E4hi Subsections (d) and (e) if the Member has not reached his normal retirement date at the time of his disability retirement. 2 . The provisions of this Paragraph shall apply to any member who retires on a disability retire- ment on or after the effective date of this Paragraph. The disability retirement allowance payable to a Member retiring under the provisions of this Section 5 . 04 shall be an amount computed as a normal service retirement allowance in accordance with Section 5 . 01 on the basis of the Member's final average monthly earnings and credit- able service at the time of disability retirement; pro- vided that the amount of such allowance shall be modified in accordance with the following Subsections (d) and (e) . (d) 1. The allowance payable to a disability Re- tirant prior to his normal retirement date shall not be less than thirty-five per centum (35%) of his final aver- age monthly earnings as defined in Section 2 . 09 as of the date of his disability if an ordinary disability retire- ment allowance is payable, and not less than seventy-five per centum (75%) of such final average monthly earnings f if a service connected disability retirement allowance is payable. For any Member who is in the classifications 2 within the AFSCME bargaining unit and who entered service with the City on or after April 30, 1993, or any Member who is in the classification of "Other" and who entered service with the City on or after August 1, 1993, or any Member who is in the classifications within the MBEBA bargaining unit and who entered service with the City on or after February 21, 1994, the allowance payable dn if a service connected disability retirement shall not be less than sixty percent (60%) of his final average month- ly earnings . The allowance payable to a disability Re- tirant after his normal retirement date shall be an amount computed as a normal service retirement allowance on the basis of the final average monthly earnings and number of years of creditable service he would have had if he had continued in service without interruption until his normal retirement date at the maximum rate of pay in effect at the time of his retirement for the classifica- tion at which he retired provided that such allowance shall not exceed the amount payable to him as a disabil- ity retirement allowance prior to his normal retirement date or not less than his normal retirement benefit at his normal retirement date. "Normal retirement date" as used in this Section 5 . 04 means the date determined in accordance with Section 5 . 01(a) on the assumption that the period of disability retirement is deemed to be active service as an Employee for this purpose. 3 (d) 2 . The provisions of this Paragraph shall apply to any member who retires on a disability retire- ment on or after the effective date of this Paragraph. The allowance payable to a disability Retirant shall not be less than thirty-five per centum (35%) of his final average monthly earnings as defined in Section 2 . 09 as of the date of his disability if an ordinary disability re- tirement allowance is payable, and not less than seventy- five per centum (75%) of such final average monthly earn- ings if a service connected disability retirement allow- ance is payable. For any Member who is in the classifi- cations within the AFSCME bargaining unit and who entered service with the City on or after April 30, 1993, or any Member who is in the classification of "Other" and who entered service with the City on or after August 1, 1993 , or any Member who is in the classifications within the MBEBA bargaining unit and who entered service with the City on or after February 21, 1994, the allowance payable if a service connected disability retirement shall not be less than sixty percent (60%) of his final average monthly earnings . ( f) 1 . During the period of his retirement on a disability retirement 6MOXWOOtit prior to his normal re- tirement date, the Retirant's annual earnings from em- ployment (including self-employment) prior to his normal 4 retirement date shall not exceed an amount which, when added to the disability retirement allowance payments re- ceived by him, would result in a combined earned income of one hundred twenty-five per centum ( 125%) of the maxi- mum current salary for the classification from which he was retired if he is receiving a service-connected dis- ability retirement allowance, or one hundred per centum ( 100%) of such maximum salary if he is receiving an ordinary disability retirement allowance; otherwise pay- ments of the disability retirement allowance shall be withheld to the extent that the combined earned income exceeds the maximum permissible amount. The Member must agree at the time of his disability retirement, before any benefits are paid to him under the System, to furnish annually to the Board, before May 1 of each year, a copy of his Federal Income Tax return for the prior year, and any other information which the Board may require. When the retirant's combined earned income exceeds the maximum permissible amount determined on the basis of the maximum salary as of January 1 of the prior year for the classi- fication from which he was retired, future payments of his disability retirement allowance shall be withheld until the total sum withheld equals the amount by which his combined earned income for the prior year exceeded the maximum permissible amount. Restrictions on earnings 5 I shall not be applicable after the Retirant's normal retirement date. 2 . The provisions of this Paragraph shall apply to any member who retires on a disability retire- ment on or after the effective date of this Paragraph. During the period of his retirement on a disability re- tirement, the Retirant's annual earnings from employment (including self-employment) shall not exceed an amount which, when added to the disability retirement allowance payments received by him, would result in a combined earned income of two hundred per centum (200%) of the maximum current salary for the classification from which he was retired if he is receiving a service-connected disability retirement allowance, or one hundred per centum (100%) of such maximum salary if he is receiving an ordinary disability retirement allowance; otherwise payments of the disability retirement allowance shall be withheld to the extent that the combined earned income exceeds the maximum permissible amount. The Member must agree at the time of his disability retirement, before any benefits are paid to him under the System, to furnish annually to the Board, before May 1 of each year, a copy of his Federal Income Tax return for the prior year, and any other information which the Board may require. When the retirant's combined earned income exceeds the maximum permissible amount determined on the basis of the maximum 6 salary as of January 1 of the prior year for the classi- fication from which he was retired, future payments of his disability retirement allowance shall be withheld until the total sum withheld equals the amount by which his combined earned income for the prior year exceeded the maximum permissible amount. 2. 3 . The term "earned income" shall be defined by Section 43 (c) (2) of the Internal Revenue Code to mean wages, salaries, tips, and other employee compen- sation, plus the amount of the taxpayer's net earnings from self-employment for the taxable year (within the meaning of Section 1402 (a) of the Internal Revenue Code) . (g) 1. Any Retirant who is receiving a disability retirement allowance shall be subject, prior to his nor- mal retirement date, to re-examination by the Physical Examiners either upon request of the Retirant, the Board or the City Manager, and the Physical Examiners shall report their conclusions as to the continuance of the incapacity. In the event that such disability shall not continue to incapacitate the Retirant for service accept- able to the City, in accordance with requirements of the Personnel Department, the City Manager may require that such Retirant be returned to active duty at work which is the same or of similar nature to the work he performed prior to his incapacity, or returned to other work within the limits of his mental or physical capacities, at a 7 s rate of compensation not less than seventy per centum (70%) of the pay to which he would have been entitled at the time of his return to active service for the grade of service occupied by the Retirant prior to his incapacity. Upon any such return to active duty such Retirant shall be restored to service as a Member, his disability re- tirement allowance shall be terminated, he shall resume contributing to the System according to the compensation thereafter payable to him, and the period during which he was receiving the disability retirement allowance shall be included in his creditable service for all purposes of the System. 2 . The provisions of this Paragraph shall apply to any member who retires on a disability retire- ment on or after the effective date of this Paragraph. Any Retirant who is receiving a disability retirement allowance shall be subject to re-examination by the Physical Examiners either upon request of the Retirant, the Board or the City Manager, and the Physical Examiners shall report their conclusions as to the continuance of the incapacity. In the event that such disability shall not continue to incapacitate the Retirant for service acceptable to the City, in accordance with requirements of the Personnel Department, the City Manager may require that such Retirant be returned to active duty at work which is the same or of similar nature to the work he 8 performed prior to his incapacity, or returned to other work within the limits of his mental or physical capa- cities, at a rate of compensation not less than seventy per centum (70%) of the pay to which he would have been entitled at the time of his return to active service for the grade of service occupied by the Retirant prior to his incapacity. Upon any such return to active duty such Retirant shall be restored to service as a Member, his disability retirement allowance shall be terminated, he shall resume contributing to the System according to the compensation thereafter payable to him, and the period during which he was receiving the disability retirement allowance shall be included in his creditable service for all purposes of the System. (h) I. If any Retirant in receipt of a disability retirement allowance is found by the Physical Examiners, prior to his normal retirement date, to be no longer incapacitated but is not restored to service as a Member because of his own refusal to accept employment offered to him in accordance with the foregoing paragraph, his disability retirement allowance shall be terminated, and the period during which he was receiving a disability retirement allowance shall in no event be added to the creditable service he had acquired prior to his incapacity. 9 2 . The provisions of this Paragraph shall apply to any member who retires on a disability retire- ment on or after the effective date of this Paragraph. If any Retirant in receipt of a disability retirement allowance is found by the Physical Examiners to be no longer incapacitated but is not restored to service as a Member because of his own refusal to accept employment offered to him in accordance with the foregoing para- graph, his disability retirement allowance shall be ter- minated, and the period during which he was receiving a disability retirement allowance shall in no event be added to the creditable service he had acquired prior to his incapacity. 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 phrase of this Ordinance is held to be invalid or unconstitu- tional by any court of competent jurisdiction, then said holding shall in no way affect the validity of the remaining portions of this Ordinance. SECTION 4 - EFFECTIVE DATE This Ordinance shall be effective ten days after its adoption. Passed and adopted this 21st .ay of Jusj , 1995 . IF „am Mayor 10 Attest: City Clerk Approved as to Form: FU ?P� City Attorney 1st reading 6/7/95 2nd reading 6/21/95 By / Date —§;64/5/r r (Ordinance No. 95-3002) indicates material that has been deleted. indicates material that has been added. 11 s CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. 24 q2-9 c TO: Mayor Seymour Gelber and Members of the City Commission DATE: June 21, 1995 FROM: Jose Garcia-Pedrosa City Manager SUBJECT: SECOND READIN ENDING ORDINANCE NO. 1901,WHICH ESTABLISHED THE RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE CITY OF MIAMI BEACH BY AMENDING SECTION 5.04,ENTITLED"DISABILITY RETIREMENT ALLOWANCE", TO PROVIDE THAT MEMBERS RETIRING AFTER THE EFFECTIVE DATE HEREOF SHALL BE ELIGIBLE FOR A DISABILITY RETIREMENT PRIOR TO OR AFTER NORMAL RETIREMENT AGE AND TO PROVIDE THAT SUCH MEMBERS' ANNUAL EARNINGS FROM EMPLOYMENT SHALL NOT EXCEED AN AMOUNT WHICH,WHEN ADDED TO THE DISABILITY RETIREMENT ALLOWANCE PAYMENTS, WOULD RESULT IN A COMBINED EARNED INCOME OF 200%OF THE MAXI1VIUM CURRENT SALARY FOR THE CLASSIFICATION FROM WHICH SAID MEMBER WAS RETIRED, IF SAID DISABILITY RETIREMENT ALLOWANCE IS SERVICE-CONNECTED; PROVIDING FOR A REPEALER,SEVERABILITY AND AN EFFECTIVE DATE. Administrative Recommendation The Administration recommends that the Mayor and City Commission pass and adopt this Ordinance upon second reading. Background The City Commission reviewed the Ordinance and passed it on first reading, June 7, 1995. Analysis Section 5.04, Disability Retirement Allowance, requires a recalculation of benefits for a Disability Retiree upon reaching normal retirement age. It also prohibits a disability applicant beyond normal retirement age from receiving a disability. These requirements are in violation of the Age Discrimination in Employment Act and The Older Workers'Benefits Protection Act. Review by the General Board of Trustees and the Board's Legal Counsel indicate that Ordinance No. 1901 must be amended to eliminate the recalculation of a disability benefit upon reaching normal retirement age, and to allow a disability benefit for an individual beyond normal retirement age. In addition, the Union Presidents have expressed the desire to raise the earnings limitation for such Disability Retirees from 125%to 200%with the effective date of this ordinance. 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 to bring it in compliance with the Age Discrimination in Employment Act and The Older Workers' BenefAt ac1j Oct. 9.3_ wA ora cea� Ty.g� DATE 4,-2 1'G-) a) ✓ +� f•Iv >, O 4i rn cd E cn co •• v I Lc) U N •H rn 4J +J m • C..• ) P,rz O •rl Cr) 3 0 w o •r-1 H U a •rl r 1 U' z O CA •rl H Q', CSN X) • P' r-+ a) cd • O H a co • Q a) H • R'i C.) cn q • o 0 v • cd a1 • G • H 0 O • H • • 1-1-1 i ocop w ai on top H• cd •H cd a)• 0 a) •-1 • 0 c