Ordinance 95-3013 ORDINANCE NO. 95-3013
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA AMENDING
ORDINANCE NO. 88-2603 WHICH ESTABLISHED A
RETIREMENT SYSTEM FOR UNCLASSIFIED EMPLOYEES
AND ELECTED OFFICIALS, AMENDING ARTICLE 5,
ENTITLED "BENEFITS" , AMENDING SECTION 5 . 03,
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; PROVIDING FOR A REPEALER,
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, in order to comply with the "Older Workers Benefit
Protection Act" it is necessary to provide that members of the
Retirement System for Unclassified Employees and Elected Officials
shall be eligible for a disability retirement prior to or after
normal retirement age; and
WHEREAS, the amendments set forth herein were recommended by
the Board of Trustees of the Retirement System For Unclassified
Employees and Elected Officials .
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1 . AMENDMENT OF SECTION 5 . 03 .
That Section 5 . 03 of Article 5, entitled "Benefits" of City of
Miami Beach Ordinance No. 88-2603 is hereby amended as follows :
5 .03 Disability Retirement Allowance
(a) Upon the written application of a Member or of the City
Manager, a Member who has five (5) or more years of creditable
service may be retired by the Board on an ordinary disability
retirement allowance on the first day of a calendar month next
following the granting of such application; provided that the
Physical Examiners, after a medical examination of such
Member, shall certify that he is totally incapacitated,
mentally or physically, for the future performance of duty,
that such incapacity is not the result of misconduct, service
in the Armed Forces, self-inflicted injury or disability
sustained through othertemployment, that such incapacity is
likely to be permanent and that such Member should be retired.
(b) Upon the written application of a Member or of the City
Manager, any Member who has been totally and permanently
incapacitated for the performance of his duties as the natural
and proximate result of an accident occurring while in the
actual performance of duty at some definite time and place,
without willful negligence on his part, may be retired by the
Board on a service-connected disability retirement allowance,
and not on an ordinary disability retirement allowance, on the
first day of a calendar month next following the execution and
granting of such application; provided that the application is
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filed within three (3) years from the time of said accident,
and that the Physical Examiners, after a medical examination
of the Member, shall certify that he is totally incapacitated,
mentally or physically, for the further performance of duty,
that such incapacity is not the result of misconduct, service
in the Armed Forces, self-inflicted injury or disability
sustained through other employment, that such incapacity is
likely to be permanent and that such Member should be retired.
(c) The disability retirement allowance payable to a Member
retiring under the provisions of this Section 5 . 03 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 creditable service at the
time of disability retirement; provided that the amount of
such allowance shall be modified in accordance with the
following Paragraphs (d) and (e) if the Mcmbcr has not rcachcd
his normal rctircmcnt date at the time of his di3ability
rctircmcnt .
(d) (1) For any Member who became a member on or before October
17, 1992 , the allowance payable to a disability Retirant prior
to his normal rctircmcnt date shall not be less than twenty-
five per centum (25%) of his final average monthly earnings as
defined in Section 2 . 10 as of the date of his disability if an
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ordinary disability retirement allowance is payable, and not
less than fifty per centum (50%) of such final average monthly
earnings is a service-connected disability retirement
allowance is payable . For any Member who became a Member on
or after October 18, 1992, the amount payable to a disability
Retirant prior to his normal retirement date shall not be less
than thirty-five percent (35%) of his final average monthly
earnings as defined in Section 2 . 10 as of the date of his
disability if an ordinary disability retirement allowance is
payable, and not less than sixty percent (60%) of such final
monthly earnings if a service connected disability retirement
allowance is payable . Under this section, the period of
disability retirement is deemed to be active service and when
the normal retirement date occurs, the disability retirant
after his normal retirement date is based on what the Retirant
would have received if disability had not occurred. The
allowance payable to a disability Rctirant after hi3 normal
retirement date Shall be an amount computed a3 a normal
monthly carning3 and number of years of creditable 3crvice he
would have had if he had continued in service without the
disability interruption.
(2) The allowance payable to a disability Retirant after his
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normal retirement date Shall be based on the maximum ratc of
pay in effect on his normal retirement datc of classification
at which he retired provided that such allowance shall not
exceed the amount payable to him as his disability retirement
allowance prior to his normal retirement date nor be less than
his normal retirement allowance at his normal retirement date .
"Normal retircmcnt date" a3 used in Section 5 . 01 means the
date determined in accordance with Section 5 . 01 (a) on the
assumption that the period of disability retirement i3 deemed
to be active service a3 an Employee for this purpose .
(e) Any amounts which may be paid or payable on account of
disability to the Member or his dependents under the Workers
Compensation Act, exclusive of fixed statutory payments for
the loss of any bodily member, shall be offset against and
payable in lieu of that part of his disability retirement
allowance provided under the Unclassified System contributions
of the City on account of the same disability, in such
equitable manner as the Board shall determine .
(f) (1) During the period of his retirement on a disability
retirement allowance prior to his normal retirement date, the
disability Retirant ' s annual earnings from employment
(including self-employment) prior to his normal retirement
date shall not exceed an amount which, when added to the
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disability retirement allowance payments received by him,
would result in a combined earned income of more than one
hundred twenty-five per centum (125%) 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 Unclassified
System, to furnish annually to the Board, before May 1 of each
year, a copy of the Federal Income Tax return for the prior
year, and any other information which the Board may require .
When the disability Retirant ' s 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 Unclassified System, to furnish annually
to the Board, before May 1 of each year, a copy of the Federal
Income Tax return for the prior year, and any other
information which the Board may require. When the disability
Retirant ' s combined earned income exceeds the maximum
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permissible amount determined on the basis of the maximum
salary as of January 1 of the prior year for the
classification 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 . Rc3triction3 on carning3 Shall not be
applicable after the Rctirant ' s normal rctircmcnt date .
(2) The term "earned income" shall be defined by Section 32 (c)
(2) of the Internal Revenue Code, as amended, to mean wages,
salaries, tips, and other employee compensation, plus the
amount of the taxpayer's net earnings for self-employment for
the taxable year, within the meaning of Section 14 . 02 (a) of
the Internal Revenue Code, as amended.
(g)Any Retirant who is receiving a disability retirement
allowance shall be subject, prior to his normal rctircmcnt
date, to reexamination by the Physical Examiners either upon
request of the Retirant, the Board, or the City Manager, and
the Physical Examiners shall report their conclusion as to the
continuance of the disability. 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
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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 disability, or returned to other work
within the limits of his mental or physical capacities, 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 duty such Retirant shall be restored to service as a
Member, his disability retirement allowance shall be
terminated, he shall resume contributing to the Unclassified
System according to the compensation thereafter payable to
him, and the period during which he was receiving his
disability retirement allowance shall be included in his
creditable service for all purposes of the system.
(h) If any Retirant in receipt of a disability retirement
allowance is found by the Physical Examiners, prior to hi3
normal rctircmcnt datc, 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
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the creditable service he had acquired prior to his
disability.
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.
SECTION 4 . EFFECTIVE DATE,
This Ordinance shall take effect on the 7th day of
October , 1995 .
PASSED and ADOPTED this 27th day 40( Septem►-r , 199
jr
ATTEST: el
/
/( MA •R
CITY CLERK
1st reading 7/12/95
2nd reading 9/27/95
SWS:scf:6.Odisk8\omnibus.ord
FORM APPROVED
L-.
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Date 5-04 7.3 -QS'
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO.
TO: Mayor Seymour Gelber and
Members of the City Commission DATE: September 27 , 1995
FROM: Jose Garcia-Pedrosa
City Manager t .
SUBJECT: 1
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 AMENDING SECTION 5.03, 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 PROVIDING FOR A REPEALER,
SEVERABILITY AND AN EF'F'ECTIVE DATE.
Administrative Recommendation
The Ordinance passed on first reading July 12, 1995. The Administration recommends that the
Mayor and City Commission adopt this Ordinance at second reading.
Analysis
Section 5.03, 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
Unclassified Board of Trustees and Board's Counsel indicate that Ordinance No. 88-2603 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.
The Actuary for the Plan has advised that there will be no actuarial impact by the passage of this
amendment. _
Conclusion
The adoption of the amendment will update Ordinance No. 88-2603 so that it will be in compliance
with the Age Discrimination in Employment Act and The Older Workers' Benefits Protection Act.
JGP:ma AGENDA
ITEM - —
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