Ordinance 95-3002A ORDINANCE NO. 95-3002A
AN ORDINANCE OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,
CREATING A DEFINED CONTRIBUTION RETIREMENT
PLAN UNDER SECTION 457 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED BY THE OMNIBUS TAX
RECONCILIATION ACT OF 1990, BY PROVIDING FOR A
FIXED PERCENTAGE TO BE CONTRIBUTED BY PART-
TIME, SEASONAL AND TEMPORARY EMPLOYEES AND
THE CITY INTO THE PLAN; PROVIDING FOR
SEVERABILITY,A REPEALER AND AN EFFECTIVE DATE.
Whereas,the City Commission of the City of Miami Beach, Florida, desires to establish a defined
individual retirement plan for its part-time, seasonal, and temporary employees as an alternative to the
Federal Social Security 6.2% employer/employee matching contributions; and
Whereas, the benefits to part-time, seasonal, and temporary employees and the obligation of the
City to said employees must be established for the proper maintenance of the new 457 pension plan.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH,FLORIDA:
Section 1 That a 457 Pension Plan be established for all employees of the City of Miami Beach who work
less than thirty (30) hours per week, as follows:
Contributions Upon commencement of employment,the employer shall set up an individual
retirement account on behalf of the employee with the City's designated plan administrator. The
employee shall contribute 7.5% of his annual earnings for which the employer shall assure said
contributions are placed into his account.
•
•
The City shall contribute 2.5% into the individual account of the employee, thus bringing the
total contribution by both parties to 10%. In accordance with the now prevailing IRS Code, the total
contribution rate may not fall below 7.5%.
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repealed.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 22nd day of July , 1995.
Passed and Adopted this 12th day of July , 1995.
101
r +
Mayor
Attest:
AS
�.=
City C erk FORM AP
1st reading 6/21/95 P IVED
2nd reading 7/12/95 LE
PT.
By ,%e
Date
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. 6&) '!�
TO: Mayor Seymour Gelber and
Members of the City Commission DATE: July 12, 1995
FROM: Jose Garcia-Pedrosa
City Manager
SUBJECT: AN ORDINANCE OF •/ MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, LORIDA, CREATING A DEFINED CONTRIBUTION
RETIREMENT PLAN UNDER SECTION 457 OF THE INTERNAL REVENUE CODE
OF 1986, AS AMENDED BY THE OMNIBUS TAX RECONCILIATION ACT OF
1990, BY PROVIDING FOR A FIXED PERCENTAGE TO BE CONTRIBUTED BY
PART-TIME, SEASONAL AND TEMPORARY EMPLOYEES AND THE CITY INTO
THE PLAN; PROVIDING FOR SEVERABILITY, A REPEALER, AND AN
EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION:
The Administration recommends that the Commission adopt the ordinance on
second reading to create a 457 Pension Plan for all part-time, seasonal
and temporary employees .
A public hearing and first reading of the ordinance was held on June 21,
1995 .
BACKGROUND:
At the Administration' s request, on May 17, 1995, the Commission
referred the matter of creating a 457 Pension Plan, also known as the
"Social Security Alternative" to the Capital Improvements/Finance
Committee for consideration and discussion. A committee meeting was
held regarding the subject on May 30 at which time the Committee
recommended approval of the concept . This recommendation was reported
back to the full Commission on June 7, 1995 and approved as presented.
To implement a new individual retirement plan for all part-time,
seasonal and temporary employees who work less than thirty (30) hours
per week, it is necessary to adopt an ordinance . Adoption of an
ordinance will allow the Administration to implement the plan, establish
a floor and ceiling on the total contribution rate such that
contribution levels by both parties may neither fall below 7 . 5%, nor
exceed 10%, and designate a pension plan administrator.
AGENDA ITEM ► \-3— L�
DATE r7-1 -95
Second Reading - 457 Pension Plan Ordinance
July 12, 1995
Page Two
ANALYSIS:
Annually, it is estimated that a cost savings of approximately $234, 000
would accrue to the General Fund from implementation of this Social
Security Alternative. Contrasting the traditional Social Security
program to this alternative reveals that the employee will gain an
individual portable retirement plan, retain access to the federal
Medicare program, and make pension contributions with "pre-tax dollars. "
CONCLUSION:
The attached ordinance will permit the Administration to implement a new
individual retirement plan as an alternative to the federal Social
Security program for all part-time, seasonal, and temporary employees .
JGP:DJJ:me
a H
v Ctl •
g
1.J N
N
N H •
O 0 •
O •r1 N •
Cr) 4-4 q •
I 0 a-+ •
01 •H L1 •
} O •
O 0 r-
az oar
u
W CO
H v v CSN
c7 v o
N L1 •rl
Z rl 4-i 4-1
H 4-I U 0
W v
LY R7 CO N
O b
P co
4)
CIO b
g G 4)
•r1 0 0
u
• t~ al
CU cCI
HI .--1 Q)
U GLS