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Ordinance 99-3221 ORDINANCE NO. 99-3221 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA, AMENDING ORDINANCE NO. 1901 WHICH CREATED THE RETIREMENT SYSTEM FOR GENERAL EMPLOYEES BY AMENDING SECTION 2.08, ENTITLED "EARNINGS" TO COMPLY WITH THE AGREEMENTS THAT WERE EFFECTIVE OCTOBER 1, 1989,BETWEEN THE CITY AND UNION CLASSIFICATIONS OF THE CITY; PROVIDING FOR A REPEALER, SEVERABILITY, RETROACTIVITY AND AN EFFECTIVE DATE. WHEREAS, certain provisions of Ordinance No. 1901 which created the General Employees Pension System ("System") are in need of amendment to comply with the agreements between the City and the Union classifications of the City; and WHEREAS, the amendments set forth herein were 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 THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. AMENDMENT OF SECTION 2.08. That Section 2.08 of Article 2, entitled "Definitions" of the City of Miami Beach Ordinance No. 1901 is hereby amended as follows: 2.08 Definitions "Earnings" means, in the case of a person who became a Member of the System on or after November 1, 1976,base pay, including longevity pay, for personal services rendered as an Employee, but excluding any payment of overtime, shift differential or extra compensation allowances such as uniform 1 allowances;in the case of a person who became a Member prior to November 1, 1976,this term means the actual amount of salary or wages received by a Member for personal services rendered as an Employee. (Ord.No. 76-2075) Effective October 1, 1990 this term means the actual amount of salary or wages presently included for Employees who became Members prior to November 1, 1976. Notwithstanding the foregoing, for any person who is in a classification within the AFSCME bargaining unit who entered service with the City on or after April 30, 1993 or for any other person who is in the "Other" classification who entered service with the City on or after August 1, 1993 and for any person who is within the CWA (MBEBA) bargaining unit who entered service with the City on or after February 21, 1994, this term means base pay including longevity pay,but excluding any payment of overtime, or extra compensation allowances such as uniform allowances. SECTION 2. REPEALER. All Ordinances or parts of Ordinances in conflict herewith shall 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 unconstitutional by any court of competent jurisdiction,then said holding shall in no way affect the validity of the remaining portions of this Ordinance. 2 SECTION 4. RETROACTIVITY. This Ordinance shall be effective as of October 1, 1990. SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect on the 25th day of December , 1999. PASSED and ADOPTED this 15th day of Dec. , 1999. qYOR ATTEST: CITY CLERK 1st reading 12/1/99 2nd reading 12/15/99 APPROVED AS TO FORM& LANGUAGE & FOR EXECUTION ekrney Date 3 Av GABRIEL, ROEDER, SMITH & COMPANY Consultants&Actuaries 301 East Las Olas Blvd.•Suite 200•Ft.Lauderdale,FL 33301 •954-527-1616•FAX 954-525-0083 November 5, 1999 Mr. Charles Slavin, Actuary Bureau of Local Retirement Systems Division of Retirement Cedars Executive Center, Bldg. C 2639 North Monroe Street Tallahassee, Florida 32399-1560 Re: Miami Beach Retirement System For General Employees Dear Mr. Slavin: Please review the enclosed ordinance which would amend the System by including overtime in pensionable compensation for participants hired on or after November 1, 1976 but before the "second tier" benefits became effective in 1993 and 1994. This amendment reflects a provision of collective bargaining agreements that have been in effect since 1990. While the ordinance has not been amended, in practice the System has been operating according to the collective bargaining agreement. Benefits that have commenced since 1990 have included the effect of overtime. Also, compensation reported to and used by the undersigned actuary for purposes of the annual Actuarial Valuation has included overtime since 1995. Since the System has been including overtime in the calculation of benefits and since annual Actuarial Valuation Reports have included overtime, passage of the ordinance would have no further actuarial impact on the System. In our opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Article X of the State Constitution. Respectfully submitted, By For the Board of Trustees As Plan Administrator By ,"` Pc9.J. Stephen Palmquist, ASA, M �,4, FCA Enrolled Actuary No. 99-1560 fl ) Aft \ )! GABRIEL, ROEDER, SMITH & COMPANY Consultants&Actuaries 301 East Las Olas Blvd.•Suite 200•Ft.Lauderdale, FL 33301 •954-527-1616•FAX 954-525-0083 July 15, 1999 Ms. Margaret Arculeo Pension Administrator Miami Beach General Employees Pencion Board 1700 Convention Center Drive Miami Beach, Florida 33139 Re: General Employees Retirement System Dear Margaret: We have reviewed the proposed ordinance which applies to those who became members after November 1, 1976 but before the "second tier" dates in 1993 and 1994. Pensionable compensation of such members would include overtime. This provision had been included in the respective collective bargaining agreements but was inadvertently omitted from the pension ordinance. Your office has been administering the Plan pursuant to the collective bargaining agreement even though the provision is not in the pension ordinance. In addition, since 1996, the annual compensation reported to us for actuarial valuation purposes has included overtime for the affected members. In our opinion, passage of this ordinance will have no actuarial impact on the System because we have already been valuing the System as though the ordinance was already effective. Please contact us if there are any questions. Sincerely yours, J. Stephen Palmquist JSP/or CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH,FLORIDA 33139 http:\\ci.miam i-beach.fl.us COMMISSION MEMORANDUM NO. 1 aO CA TO: Mayor Neisen O.Kasdin and DATE: December 15, 1999 Members of the City . mission FROM: Sergio Rodriguez City Manager 11, SUBJECT: AN ORDI • CE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,AMENDING ORDINANCE NO. 1901 WHICH CREATED THE RETIREMENT SYSTEM FOR GENERAL EMPLOYEES BY AMENDING SECTION 2.08,ENTITLED "EARNINGS", TO COMPLY WITH THE AGREEMENTS THAT WERE EFFECTIVE OCTOBER 1,1989,BETWEEN THE CITY AND UNION CLASSIFICATIONS OF THE CITY; PROVIDING FOR A REPEALER, SEVERABILITY, RETROACTIVITY AND AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION Adopt the Ordinance. ANALYSIS The Agreements between the City of Miami Beach and the Miami Beach Employees' Benevolent Association (currently known as "Communications Workers of America" or "CWA,") and the American Federation of State,County and Municipal Employees(AFSCME) provided that effective October 1, 1990, "All members will have the same benefits as those hired before November 1, 1976." The Agreements outlined that"Pensionable Compensation: Includes all compensation which is presently included for employees who become members before November 1, 1976." Such Pensionable Compensation included overtime. It appears that when the Ordinance was changed to accommodate the Union contracts through Ordinance#89-2675 on December 6, 1989, the provision for Pensionable Compensation was inadvertently omitted. Future agreements with the Unions bifurcated the Pension and changed Pensionable Compensation back to exclude overtime. However, many employees are still covered under the provision that allows overtime to be counted for Pension. Although the Pension has been administered in accordance with the provisions of the Union Agreements, it is necessary to include these provisions in the Ordinance for proper funding. The Board of Trustees supports this ordinance, and Actuarial Impact Statements are attached. AGENDA ITEM R 5 8 DATE a-45- /9 Commission Memorandum December 15, 1999 Amendment to Ordinance No. 1901 Page 2 ANALYSIS, continued The Ordinance was approved on first reading on December 1, 1999. The Administration recommends that the Mayor and Commission now adopt the Ordinance in order to properly administer the Pension in accordance with the provisions of the Union Agreements. SR:M :M- :amh F:\HUMA\LABORRELWEI\COMMEM0\2EARNIN-WPD Enclosures 6 cd 0, N N N N `+-+ N _ o W M O U w o o E a o 0 . cu u .) .� E N C d U w w d 0