Ordinance 95-3014 ORDINANCE NO. 95-3014
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 . 04,
ENTITLED "ACTIVE SERVICE DEATH BENEFITS" BY
ELIMINATING THE PROVISION WHICH PROHIBITS A
MEMBER FROM RECEIVING BOTH HIS/HER OWN PENSION
AND BENEFITS DUE TO THE DEATH OF A SURVIVING
SPOUSE OR SPOUSES; AMENDING SECTION 5 . 04 AND
SECTION 5 . 05, ENTITLED "DEATH BENEFITS AFTER
RETIREMENT" TO ELIMINATE THE PROHIBITION
AGAINST A SURVIVING SPOUSE WHO HAS REMARRIED
RECEIVING BENEFITS FOR DEATH OF A FORMER
SPOUSE; AMENDING SECTION 5 . 09, ENTITLED
"RETURN TO ACTIVE SERVICE" TO ELIMINATE THE
PROVISION WHICH PROHIBITS A PENSIONER WHO IS
HIRED BY THE CITY FROM CONTINUING TO RECEIVE
BENEFITS AS A BENEFICIARY OF A DECEASED
MEMBER; PROVIDING FOR A REPEALER, SEVERABILITY
AND AN EFFECTIVE DATE.
WHEREAS, certain provisions of Ordinance No. 88-2603 , which
established the Retirement System for Unclassified Employees and
Elected Officials, are in need of amendment in order to prevent
loss of beneficiary benefits based upon marital status; 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 . 04 .
That Section 5 . 04 of Article 5, entitled "Benefits" of City of
Miami Beach Ordinance No. 88-2603 is hereby amended as follows :
5 . 04 Active Service Death Benefits
(a) Upon receipt of evidence, satisfactory to the Board, of
the death of a Member who has five (5) or more years of
creditable service, a monthly pension shall be paid to the
surviving spouse of the deceased member, provided that said
spouse had been married to the Member for at least One (1)
year immediately prior to the date of his death. If there is
no surviving spouse entitled to such pension, the pension
shall be paid to the dependent child or children of the
deceased Member, divided in such manner as the Board in its
discretion shall determine, to continue until every such child
dies or attains twenty-one (21) years of age .
(b) The monthly pension payable to the person or persons
entitled thereto in accordance with the foregoing Paragraph
(a) shall be equal to one-half of the amount computed as a
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normal service retirement allowance in accordance with
Paragraph (b) of Section 5 . 01 as though the date of the
Member' s death were his normal retirement date, on the basis
of the Member' s final average monthly earnings and creditable
service at the time of his death; provided that, if the
pension is payable to a spouse who is more than fifteen (15)
years younger than the Member, the pension shall be reduced to
an amount which is the actuarial equivalent of the pension
payable to the spouse if said spouse were exactly fifteen (15)
years younger than the deceased Member. In the event of the
death of the spouse after pension payments have commenced, a
pension computed in accordance with the foregoing sentence but
prior to any reduction because of the difference in the ages
of the deceased Member and the surviving spouse shall be paid
to the dependent child or children of the deceased Member
under twenty-one (21) years of age, divided in such manner as
the Board in its discretion shall determine, until every such
child dies or attain twenty-one (21) years of age .
(c) Undcr no circum3tancc3 Shall any surviving spou3c of a
Sy3tcm morc than one pcnoion undcr either the provi3iono of
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thi3 Section 5 . 04 or the following Section 5 . 05 or be ause of
the simultaneou3 effect of both of these section3 .
(d) Under no circum3tances shall any Surviving spouse of a
dec ased Mcmbcr or Retirant receive a pension from the
SECTION 2 . AMENDMENT OF SECTION 5 . 05
That Section 5 . 05 of Article 5, entitled "Benefits" of City of
Miami Beach Ordinance No. 88-2603 is hereby amended as follows :
5 . 05 Death Benefits after Retirement
(a) Upon receipt of evidence, satisfactory to the Board, of
the death of a Retirant, a monthly pension shall be payable to
the surviving spouse of the deceased Retirant, provided that
the spouse has been married to the Retirant on the date of his
retirement or termination of service, whichever was first, and
for at least one (1) year prior to such date; and further
provided, that if the Retirant had elected an option in
accordance with Section 5 . 06 which was in effect at the time
of his death, monthly benefits shall be continued after his
death, in lieu of benefits under this Section 5 . 05, in
accordance with the option.
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(b) The monthly pension payable to the surviving spouse of a
deceased retirant pursuant to the foregoing paragraph of this
Section 5 . 05 shall be equal to fifty per centum (50%) of the
retirement allowance which would have been payable to the
deceased Retirant if he has been alive at the time of the
monthly payment; provided that, if the surviving spouse is
more than fifteen (15) years younger than the deceased
Retirant, such monthly pension shall be reduced to an amount
which is the actuarial equivalent of such pension for a spouse
exactly fifteen (15) years younger than the deceased Retirant .
(c) If any such deceased Retirant is not survived by a spouse
entitled to a pension in accordance with the foregoing
paragraphs of this Section 5 . 05 or if the death of such a
spouse occurs after pension payments have commenced in
accordance with the foregoing paragraph, the pension which
would otherwise have been payable to a surviving spouse
eligible therefor and not more than fifteen (15) years younger
than the deceased Retirant shall be payable to the child or
children of the said deceased Retirant, if any, divided in
equal shares, to continue until every such child dies or
attains twenty-one (21) years of age; provided that only
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children who were beneficiaries of the Retirant on the date of
his retirement or termination of service, whichever was first,
shall be eligible for a pension under this paragraph.
(d) Anything in this Section 5 . 05 to the contrary
notwithstanding, in the event that an optional benefit had
been elected by a Retirant in accordance with Section 5 . 06 and
such election is in effect at the time of his death, monthly
benefits, if any, shall be payable after his death to the
person designated as the contingent annuitant in accordance
with the optional election and no benefits shall be payable as
a result of the death of the Retirant under this Section 5 . 05 .
(c) Undcr no circum3tancc3 shall any surviving spou3c of a
dccca3cd Mcmbcr or Rctirant rcccivc a pcn3ion from thc
Uncla33ificd System if thc surviving 3pousc rcmarric3 .
SECTION 3 . AMENDMENT OF SECTION 5 . 09 .
That Section 5 . 09 of Article 5, entitled "Benefits" of City of
Miami Beach Ordinance No. 88-2603 is hereby amended as follows :
5 . 09 Return to Active Service
(a) If a former Member who is entitled to a vested retirement
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allowance not yet payable returns to service with the City as
a Employee before such allowance has become payable, he shall
again become a Member, but benefits payable to him or on his
account with respect to his earnings and creditable service
after his return shall be based on the provisions applicable
to a Member whose employment with the City commences on the
date of his return to service . He shall contribute to the
Unclassified System at the rate required, pursuant to Section
6 . 02 , of Employees who become Members for the first time .
Creditable service rendered before and after his return to
service shall be considered for the purpose of determining his
allowance; provided, in the event of his subsequent
termination of employment for reasons other than death or
retirement, only creditable service rendered after his return
to service shall be considered for the purpose of determining
his entitlement to a vested retirement allowance with respect
to service rendered after his return. Upon subsequent
retirement, his retirement allowance shall be equal to the sum
of the amounts computed on the basis of the final average
monthly earnings and creditable service with respect to each
period of continuous service as an Employee; provided that the
retirement allowance shall not exceed the retirement allowance
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which would have been payable if his creditable service had
been one period of continuous service .
(b) Should a retirant, other than a disability Retirant
restored to service in accordance with Section 5 . 03 (g) , be
employed by the City as an Employee, his retirement allowance
shall cease, he shall again become a Member of the
Unclassified System, but benefits payable to him or his
account with respect to his earnings and creditable service
after his return shall be based on the provisions applicable
to a Member whose employment with the City commences on the
date of his return to service . He shall contribute at the
rate required, pursuant to Section 6 . 02 , of Employees who
become Members for the first time . An amount equal to the
excess, if any, of his Accumulated Employee Contributions at
the time of his retirement over the amount of retirement
allowance payments he received shall be credited to him as
Accumulated Employee Contributions as of the date he became a
Member. Creditable service rendered before and after his
return to service shall be considered for the purpose of
determining his entitlement to a normal service retirement
allowance upon subsequent retirement . Upon subsequent
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retirement, his retirement allowance shall be equal to the sum
of the retirement allowance payable to him during his previous
retirement, adjusted actuarially, if he returned to service
prior to his normal retirement date, for the period from the
date of his return to service to the date of his subsequent
retirement or normal retirement date, whichever occurs first,
plus the amount computed as a retirement allowance on the
basis of his final average monthly earnings and creditable
service for the period after his last return; provided that
the total retirement allowance shall not exceed the retirement
allowance which would have been payable if all years of his
creditable service had been a continuous period. If an option
had been elected and in effect at the time of his return to
service, the option shall continue to be in effect after his
return to service, with respect to the retirement allowance
payable prior to his return.
(c) Should a Penaioncr bc employed by the City in any
capacity for which regular compensation is paid, the Pension
shall cease to be paid to said Pensioner for the period of
such employment, and such person shall bc subject to the
provisions of this Ordinance as any other person employed by
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the City. Upon termination of such employment, such person
shall elect to receive either thc bcncfit to which he was
previously cntiticd as a Pensioner if still eligible therefor
or thc bcncfit, if any, to which he is otherwise entitled on
thc basis of his membership in the Unclassified System.
(d) The return of a disability Retirant to employment with
the City prior to his normal retirement date in accordance
with Section 5 . 03 (g) shall be governed by said Section 5 . 03
(g) . Return of such a person to employment with the City
after his normal retirement date, as defined in Section 5 . 03 ,
or after the date as of which he ceased to be entitled to a
disability retirement allowance pursuant to Section 5 . 03 (h)
shall be governed by the provisions of Paragraph (a) or (b) of
this Section 5 . 09, whichever is applicable at the time of such
return.
SECTION 4 . REPEALER.
All ordinances or parts of ordinances in conflict herewith be
and the same are hereby repealed.
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SECTION 5. SEVERABILITY.
If any section, subsection, clause or provision of this
Ordinance is held invalid, the remainder shall not be affected by
such invalidity.
SECTION 6 . EFFECTIVE DATE.
This Ordinance shall take effect on the 7th day of
October , 1995 .
PASSED and ADOPTED this 27th day of September , 1995 .
ATTEST: -�
AOR
CITY CLERK
st reading 7/12/95
2nd reading 9/27/95
SWS:scf:6.0disk9\retirsys.ord
FORM APPROVED
Levi Dept. /
By iL
Date,Etas - s -
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. can-7-0LS
TO: Mayor Seymour Gelber and
Members of the City Commission DATE: September 27 , 1995
<.
FROM: Jose Garcia-Pedrosa
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 AMENDING ARTICLE 5,ENTITLED "BENEFITS",AMENDING
SECTION 5.04, ENTITLED "ACTIVE SERVICE DEATH BENEFITS" BY
ELIMINATING THE PROVISION WHICH PROHIBITS A MEMBER FROM
RECEIVING BOTH HIS/HER OWN PENSION AND BENEFITS DUE TO
THE DEATH OF A SURVIVING SPOUSE OR SPOUSES; AMENDING
SECTIONS 5.04 AND 5.05, ENTITLED "DEATH BENEFITS AFTER
RETIREMENT" TO ELIMINATE THE PROHIBITION AGAINST A
SURVIVING SPOUSE WHO HAS REMARRIED RECEIVING BENEFITS
FOR DEATH OF A FORMER SPOUSE; AMENDING SECTION 5.09,
ENTITLED "RETURN TO ACTIVE SERVICE" TO ELIMINATE THE
PROVISION WHICH PROHIBITS A PENSIONER WHO IS HIRED BY THE
CITY FROM CONTINUING TO RECEIVE BENEFITS AS A BENEFICIARY
OF A DECEASED MEMBER; PROVIDING FOR A REPEALER,
SEVERABILITY AND AN EFFECTIVE 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
The above listed Sections would prohibit the continuation of benefits to a surviving spouse
if he/she is an Employee of the City. They would also prohibit the continuation of benefits to a
surviving spouse should the surviving spouse change status and become a City Employee, or remarry.
The Trustees for the Unclassified Employees and Elected Officials Retirement System are of the
opinion that a benefit earned by a Member should be allowed to continue to a surviving spouse
regardless of his/her status.
The Actuary for the Plan, Steve Palmquist, has reported that, since the Members are valued
on an individual basis, such an amendment would not cause a negative impact to the Plan. _
AGENDA `
- ITEM
4-.\
DATE --2:1 -9
a
Conclusion
This amendment is recommended by the Board of Trustees as fair and equitable action toward
the surviving spouse of an Active or Retired Member.
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