2014-3837 Ordinance ORDINANCE NO. 2014-3837
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, IMPLEMENTING
PROVISIONS OF THE 2012-2015 COLLECTIVE BARGAINING
AGREEMENT BETWEEN THE CITY AND THE GOVERNMENT
SUPERVISORS ASSOCIATION OF FLORIDA, OPEIU, LOCAL
100 (GSAF); AMENDING THE MIAMI BEACH EMPLOYEES'
RETIREMENT PLAN CREATED BY ORDINANCE 2006-3504;
AMENDING SECTION 2.26 OF THE PLAN BY EXTENDING THE
DEFERRED RETIREMENT OPTION PLAN (DROP) PROGRAM
FROM THREE (3) TO FIVE (5) YEARS FOR ELIGIBLE
MEMBERS; AMENDING SECTION 5.13 TO REFLECT
AMENDED ELIGIBILITY AND PARTICIPATION
REQUIREMENTS AND AMENDED DROP PLAN FEATURES;
AMENDING SECTION 4.03 BY ELIMINATING THE PURCHASE
OF ADDITIONAL CREDITABLE SERVICE FOR CERTAIN
MEMBERS; AMENDING SECTION 6.03 REQUIRING THE CITY
TO CONTRIBUTE AT LEAST THE NORMAL COST TO PENSION
EACH YEAR, REQUIRING AN EXPERIENCE STUDY AT LEAST
EVERY THREE (3) YEARS AND REQUIRING FIVE (5), TEN (10)
AND TWENTY (20) YEAR PROJECTIONS OF REQUIRED
PENSION CONTRIBUTIONS AS PART OF THE ANNUAL
ACTUARIAL VALUATION; PROVIDING FOR SEVERABILITY;
REPEALING ALL ORDINANCES IN CONFLICT THEREWITH;
AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA:
Section 1. Section 2.26 of the Miami Beach Employees' Retirement Plan created by
Ordinance 2006-3504, as subsequently amended, is hereby further amended as follows:
2.26 Deferred Retirement Option Plan (DROP) —A program under which a Member who
has reached the normal retirement date may elect to retire for purposes of the Plan but
continue employment with the City for up to thirty-six (36) months, and have his/her
monthly retirement benefit paid into a DROP account during the DROP period, in
accordance with Section 5.13. Notwithstanding the preceding sentence:
(a) effective July 17, 2013, Members within classifications in the CWA bargaining unit
who were hired prior to October 27, 2010, and Members not included in any bargaining
unit, who were hired prior to September 10, 2010, may elect to retire for purposes of the
Plan but continue employment with the City for up to sixty (60) months, and have their
monthly retirement benefit paid into a DROP account during the DROP period, in
accordance with Section 5.13.
(b) Effective October 1, 2013, Members within classifications in the GSAF bargaining
unit who were hired prior to July 14, 2010, may elect to retire for purposes of the Plan
but continue employment with the City for up to sixty (60) months, and have their
monthly retirement benefit paid into a DROP account during the DROP period, in
accordance with Section 5.13.
Section 2. Section 5.13 of the Miami Beach Employees' Retirement Plan created by
Ordinance 2006-3504, as subsequently amended, is hereby further amended as follows:
5.13 A deferred retirement option plan ("DROP") is hereby established for eligible
Members, as follows:
(a) Eligibility and participation:
1. A Member who attains the normal retirement date shall be eligible to
participate in the DROP.
2. A Member's election to participate in the DROP shall be irrevocable.
A Member may participate in the DROP only once.
3. An eligible Member may participate in the DROP for a maximum of
thirty-six (36) months. Notwithstanding the preceding sentence:
(a) Effective July 17, 2013, Members within classifications in the
CWA bargaining unit, who were hired prior to October 27, 2010, and
Members not included in any collective bargaining unit, who were
hired prior to September 10, 2010, may participate in the DROP for a
maximum of sixty (60) months.
Effective October 1, 2013, Members within classifications in the
GSAF bargaining unit, who were hired prior to July 14, 2010, may
participate in the DROP for a maximum of sixty (60) months.
4. An eligible Member who elects to participate in the DROP must
provide at least thirty (30) days' advance written notice to the City of
his or her election to participate in the DROP. A Member who elects to
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participate in the DROP may elect to terminate DROP participation
and City employment sooner than the maximum DROP period, with
thirty (30) days' advance written notice to the City.
5. Effective July 17, 2013, any Member within classifications in the CWA
bargaining unit, and any Member not included in any collective
bargaining unit, who previously executed an election form entitling
him/her to participate in the DROP for a period of less than sixty (60)
months and whose DROP period ceases between July 1, 2013 and
July 16, 2016, shall have a one-time opportunity to submit an
irrevocable amended election from provided by the Board, within thirty
(30) calendar days following the effective date of this ordinance,
extending his or her DROP period to a maximum of sixty (60) months
in total. Effective October 1, 2013, any Member within classifications
in the GSAF bargaining unit, who previously executed an election
form entitling him/her to participate in the DROP for a period of less
than sixty (60) months and whose DROP period ceases between
October 1, 2013 and September 30, 2016, shall have a one-time
opportunity to submit an irrevocable amended election from provided
by the Board within thirty (30) calendar days following the effective
date of this ordinance, extending his or her DROP period to a
maximum of sixty (60) months in total.
(b) DROP plan features:
1. An eligible Member who elects to participate in the DROP will be
considered to have retired for purposes of the Plan upon entry into the
DROP, except that such Member shall be eligible to vote for and
serve as an Employee member of the Board of Trustees during the
DROP participation period. The Member's monthly retirement benefit,
determined in accordance with the Plan based on years of creditable
service and final average monthly earnings at the time the Member
enters the DROP, will be paid into the Member's DROP account every
month during the DROP period.
2. No Member contributions shall be required after a Member enters the
DROP, and the Member will not accrue any additional creditable
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service or any additional benefits under the Plan after entering the
DROP. No City normal cost contributions shall be required after a
Member enters the DROP and DROP participants shall be excluded
from the covered payroll for the Plan.
3. A Member who elects to participate in the DROP shall not be eligible
for disability or preretirement death benefits under the Plan; nor shall
a Member be eligible for any post retirement adjustment provided in
Section 5.10 during the DROP participation period.
4. A Member who elects to participate in the DROP shall retain the
earned balance of annual and sick leave as of the date of entry into
the DROP, and shall continue to earn annual and sick leave during
the DROP period, in accordance with applicable City ordinances.
Alternatively, at the time of entry into the DROP, a
Member may request full or partial payment of the earned balance of
annual and sick leave as of the date of entry into the DROP, up to the
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maximum allowed by a pp licable City ordinances for employees who
terminate City employment, but reduced by the amount of annual and
sick leave used for the purchase of additional credited service under
section 4.03, if any, at the Member's rate of compensation upon
entering the DROP; provided that the Member must retain at least 120
hours of accrued sick leave after any such payment. Upon
termination of City employment, a Member who has participated in the
DROP shall be eligible to receive payment for the earned balance of
annual and sick leave as of the date of termination, up to the
maximum allowed by applicable City ordinances for employees who
terminate City employment, but reduced by the amount of annual and
sick leave for which payment was received upon entry into the DROP,
if any; and further reduced by the amount of annual and sick leave
used for the purchase of additional credited service under section
4.03, if any. In no event shall payments for accrued annual or sick
leave be included in a member's Earnings for purposes of the Plan.
5. As a condition of participating in the DROP, the Member must agree
to terminate City employment at the conclusion of the DROP period,
and to submit an irrevocable letter of resignation stating this prior to
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entering the DROP. A Member who elects to participate in the DROP
must also submit an irrevocable written DROP election prior to
entering the DROP on a form provided by the Board. Notwithstanding
the preceding sentence:
(a) Eligible Members who are participants in the DROP on July 1,
2013, shall be given a one-time opportunity to submit an irrevocable
amended election form, as provided in Section 5.13 (a) 5., extending
the DROP period to a maximum of sixty (60) months in total.
(b) Eligible Members who are participants in the DROP on October 1,
2013, shall be given a one-time opportunity to submit an irrevocable
amended election form, as provided in Section 5.13 (a) 5, extending
the DROP period to a maximum of sixty (60) months in total.
6. At the conclusion of the DROP period and upon termination of City
employment, the Member's monthly retirement benefit shall be paid to
the Member in accordance with the Plan. In the event of the
Member's death during or at the conclusion of the DROP period, a
benefit may be payable in accordance with Section 5.07
8. Participation in the DROP is not a guarantee of City employment, and
DROP participants will be subject to the same terms and conditions of
employment that are applicable to employees who are not DROP
participants.
9. During participation in the DROP, the Member's monthly retirement
benefit will be paid into the DROP account, and shall be
credited/debited with earnings/losses as provided herein. The
Member may direct that their DROP account be invested in any of the
investment options approved by the Board, on forms provided by the
Board. Any gains on the Member's DROP account investments shall
be credited to the Member's DROP account; and any losses incurred
by the Member shall be deducted from the Member's DROP account
balance, and shall not be made up by the City or the Retirement Plan.
A Member's DROP account shall only be credited or debited with
earnings/losses while the Member is a participant in the DROP.
10. A DROP participant may designate a beneficiary or beneficiaries for
his/her DROP account on a form provided by the Board.
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11. Within thirty (30) days following a DROP participant's termination of
City employment or death, whichever occurs first, the Member, or in
the event of the Member's death the Member's designated
beneficiary, may submit a written election on a form approved by the
Board, to receive the Member's entire DROP account balance, which
shall be distributed to the Member (or in the event of the Member's
death, to the Member's designated beneficiary or estate in
accordance with paragraph (b)9., below) in a cash lump sum, unless
the Member elects to have all or any portion of an eligible rollover
distribution paid directly to an IRA or eligible retirement plan specified
by the Member in a direct rollover. Any such direct rollover shall be
processed in accordance with Article 12 of the Plan. In the event a
Member or designated beneficiary does not submit a written election
to receive a distribution of the Member's DROP account balance
within thirty (30) days following the Member's termination of City
employment or death, the Member's DROP account shall be
maintained by the Plan but shall not be credited with earnings/losses
after thirty (30) days following the Member's termination of City
employment or death.
12. If a DROP participant dies before his or her DROP account is
distributed, the participant's designated beneficiary shall have the
same rights as the participant with respect to the distribution of the
DROP account. If the participant has not designated a beneficiary, the
DROP account balance shall be paid to the Member's estate.
13.The Board of Trustees shall make such administrative rules as are
necessary for the efficient operation of DROP, but shall not adopt any
rule that is inconsistent with this Ordinance or the Plan.
14.The DROP shall be administered so that the Plan remains qualified
under the Internal Revenue Service Code and in compliance with
applicable laws and regulations.
Section 3. Section 4.03 of the Miami Beach Employees' Retirement Plan created by
Ordinance 2006-3504, as subsequently amended, is hereby further amended as
follows:
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4.03 (a) A Member with five (5) or more years of creditable service may, at any time prior to
retirement, elect to purchase up to a maximum of two (2) years of additional creditable
service as provided in this section 4.03. Notwithstanding any provision of this Section 4.03,
effective September 30, 2013, Members whose classification is included in the CWA
bargaining unit, Members whose classification is included in the GSAF bargaining unit, and
Members who are not included in any collective bargaining unit shall not be eligible to
purchase additional creditable service under this section 4.03. The benefit multiplier that
the Member is earning at the time of the election to purchase additional creditable service
pursuant to this section 4.03 shall be applied to the additional credited service purchased.
To be eligible to purchase additional creditable service under this section 4.03, a Member
who previously elected to participate in the Defined Contribution Retirement System (401
(a) Plan) must first purchase all available creditable service in accordance with section 4.04.
An eligible Member may elect to purchase additional creditable service under this section
4.03 for any of the following types of employment prior to the employee's date of hire by the
City, provided that the Member may not purchase such service if the Member has received
or will receive a pension benefit for the same period of employment under another
retirement plan:
1. Active duty military service in the Armed Forces of the United States or the Coast Guard.
2. Full-time employment with another governmental entity.
3. Full-time employment in the private sector performing the same or very similar duties the
employee is performing for the City at the time of his/her election to purchase additional
service.
(b) In order to receive the additional creditable service, the Member shall pay ten percent
(10%) of his/her annual rate of pensionable Earnings, multiplied by the number of years and
fractions of a year purchased, up to a total of two years. For the purpose of this section, the
annual rate of pensionable earnings shall be the rate in effect on the date of payment and
shall include the annual amount of overtime pay for those Members whose overtime pay is
included in Earnings. Payment shall be made in a single lump sum to the Plan within six (6)
months following the date of the member's election to purchase the additional service.
Notwithstanding the preceding sentence, effective July 17, 2013, Members whose
classification is included in the CWA bargaining unit and Members who are not included in
any collective bargaining unit shall make payment in a single lump sum to the Plan within
twelve (12) months following the date of the member's election to purchase the additional
service.
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(c) For purposes of this section 4.03, Members may use the value of accrued sick and/or
annual leave for the purchase of additional creditable service, as follows. Accrued sick leave
may be used at the rate of 2 hours of accrued sick leave for the value of each hour used
toward the purchase, provided that the Member must retain at least 120 hours of accrued
sick leave after the purchase. Annual leave may be used at the rate of 1 hour of accrued
annual leave for the value of each hour used toward the purchase. The total amount of sick
and annual leave used for the purchase of additional creditable service under this section
4.03 shall be deducted from the maximum amount of leave allowed for payout to the Member
upon termination of employment.
(d) Members may pay for some or all of the cost of additional creditable service purchased
pursuant to this section 4.03 by direct transfer or rollover of funds from a 401 (a) or 457 plan,
provided the 401 (a) plan or 457 plan permits such direct transfers.
(e) Notwithstanding the forgoing, Employees in classifications within the AFSCME bargaining
unit and the GSA bargaining unit shall not be eligible to purchase additional creditable
service under this section 4.03 unless and until a collective bargaining agreement is ratified
that provides for such purchase.
(f) Amounts paid or transferred to this Plan for the purchase of creditable service under this
section 4.03 shall be considered accumulated employee contributions as that term is defined
herein, and Members shall be 100% vested in such amounts.
(g) Notwithstanding any other provision of this section 4.03, in no event may the maximum
benefit percentage applicable to the member be exceeded as the result of any purchase of
creditable service.
Purchase of Creditable Service by Members Who Previously Participated in
the Defined Contribution Retirement System.
(a) Any Employee who previously elected to participate in the Defined
Contribution Retirement System (401(a) Plan) prior to the effective date of this Ordinance,
and who becomes a Member of this Plan on or after the effective date of this Ordinance, may
purchase Creditable Service under this Plan for all or a portion of the period of their
participation in the Defined Contribution Retirement System, by paying into the Plan an
amount equal to the sum of the required employer and employee contributions to the
Classified Plan or Unclassified Plan (whichever plan in which the Member was eligible to
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participate) for each fiscal year of service, or portion thereof, purchased, as reflected in the
actuarial valuation report for that year; plus interest at the rate of 8.5 percent for Classified
Employees and 9.0% for Unclassified Employees, calculated from the end of each applicable
fiscal year through the date of payment. Notwithstanding the preceding sentence, for any
Creditable Service purchased pursuant to this subsection (a) that relates to employment
during the 2005-2006 fiscal year, if full payment for such service is made on or before May 1,
2006, the payment amount for such service shall be twenty percent (20%) of the Employee's
earnings for the period purchased, with no interest on the amount paid for such service. In
any event, full payment all service purchased pursuant to this subsection (a) must be made
within six (6) months after the effective date of this Ordinance and cost estimates have been
provided to the Employee, but in no event later than the last day of employment. In the case
of an employee who elects to transfer or roll over assets from the Defined Contribution
Retirement System to purchase creditable service pursuant to this subsection (a), the
requirements of the preceding sentence as to such assets shall be satisfied by the
employee's irrevocable authorization to transfer or roll over such assets, executed on or
before the last day of employment. Each employee electing this option may purchase
creditable service under this Plan for the period from the date the employee entered the
Defined Contribution Retirement System through the effective date of membership in this
Plan, or any portion thereof. If a Member elects to purchase less than the full period of
participation in the Defined Contribution Retirement System, the first period of purchase shall
be for the same fiscal year in which the Employee was first authorized to purchase service
pursuant to this subsection (a), the second period of purchase shall be for the immediately
preceding fiscal year and so on, until the Member purchases the amount of creditable
service desired. A Member shall not be permitted to select those years that result in the
lowest purchase amount.
Notwithstanding any other provision of this section 4.04, in no event may the maximum
benefit percentage applicable to the member be exceeded as the result of any purchase of
Creditable Service.
(b) Any Employee who previously elected to participate in a defined
contribution retirement plan established for employees of the Miami Beach Visitor and
Convention Authority, the Classified Plan, the Unclassified Plan or the City Pension Fund for
Firemen and Policemen, prior to the effective date of this Ordinance, and who becomes a
Member of this Plan on or after the effective date of this Ordinance, may purchase Creditable
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Service under this Plan for all or a portion of the period of their participation in such defined
contribution retirement plan on or after October 18, 1992, during which such Member was
employed on a regular basis for thirty (30) or more hours per week, by paying into the Plan
an amount equal to the sum of the required employer and employee contributions to the
Classified Plan for each fiscal year of service, or portion thereof, purchased, as reflected in
the actuarial valuation report for that year; plus interest at the rate of 8.5 percent calculated
from the end of each applicable fiscal year through the date of payment. Notwithstanding the
preceding sentence, for any Creditable Service purchased pursuant to this subsection (b)
that relates to employment during the 2005-2006 fiscal year, if full payment for such service
is made on or before May 1, 2006, the payment amount for such service shall be twenty
percent (20%) of the Employee's earnings for the period purchased, with no interest on the
amount paid for such service. In any event, full payment all service purchased pursuant to
this subsection (b) must be made within six (6) months after the effective date of this
Ordinance and cost estimates have been provided to the Employee, but in no event later
than the last day of employment. In the case of a Member who elects to transfer or roll over
assets from a defined. contribution retirement plan established for employees of the Miami
Beach Visitor and Convention Authority, the Classified Plan, the Unclassified Plan or the City
Pension Fund for Firemen and Policemen to purchase creditable service pursuant to this
subsection (b), the requirements of the preceding sentence as to such assets shall be
satisfied by the Member's irrevocable authorization to transfer or roll over such assets,
executed on or before the last day of employment. If a Member elects to purchase less than
the full period of participation in the defined contribution retirement plan, the first period of
purchase shall be for the same fiscal year in which the Employee was first authorized to
purchase service pursuant to this subsection (b),the second period of purchase shall be for
the immediately preceding fiscal year and so on, until the Member purchases the amount of
creditable service desired. A Member shall not be permitted to select those years that result
in the lowest purchase amount. Notwithstanding any other provision of this section 4.04, in
no event may the maximum benefit percentage applicable to the Member be exceeded as
the result of any purchase of creditable service.
(c) A Member who elects to purchase creditable service under this section
4.04 may pay for such service in one or a combination of the following manners:
(1) Direct transfer or rollover from the Defined Contribution Retirement System, 457 plan or
other eligible plan in accordance with Section 11.03, provided the other retirement system or
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plan permits such direct transfers or rollovers for the purchase of creditable service under
this Plan. The full value of assets, including any outstanding loans, transferred from a
Member's account in the Defined Contribution Retirement System, or from a defined
contribution retirement plan established for employees of the Miami Beach Visitor and
Convention Authority, the Classified Plan, the Unclassified Plan or the City Pension Fund for
Firemen and Policemen that permits such direct transfers or rollovers for the purchase of
creditable service under this Plan, will be credited toward the purchase of creditable service
under this section 4.04. A Member must payoff any loan balance existing at the time of
transfer from the Defined Contribution Retirement System, or from a defined contribution
retirement plan established for employees of the Miami Beach Visitor and Convention
Authority, the Classified Plan, the Unclassified Plan or the City Pension Fund for Firemen
and Policemen, by making payments to this Plan in the same manner and at the same rate
of interest as the payments that were made to the Defined Contribution Retirement System
or defined contribution retirement plan prior to the transfer. In the event full payment of all
outstanding loan balances is not made prior to termination of employment, the Member's
creditable service shall be adjusted to reflect the payments actually made.
(2) Cash Payment.
(3) A Member who is employed by the City at the time creditable service is purchased
pursuant to this section 4.04 may use the value of accrued sick and/or annual leave as
follows. Accrued sick leave may be used at the rate of 2 hours of accrued sick leave for the
value of each hour used toward the purchase, provided that the Member must retain at least
120 hours of accrued sick leave after the purchase. Annual leave may be used at the rate of
1 hour of accrued annual leave for the value of each hour used toward the purchase. The
total amount of sick and annual leave used for the purchase of additional creditable service
under this section 4.04 shall be deducted from the maximum amount of leave allowed for
payout to the Member upon termination of employment.
(c) Amounts paid or transferred to this Plan for the purchase of creditable service under this
section 4.04, excluding any outstanding loan balances, shall be considered accumulated
employee contributions as that term is defined herein, and Members shall be 100% vested in
such amounts.
(d) Notwithstanding any other provision of this section 4.04, the provisions of this section
4.04 shall not apply to Employees within classifications in the AFSCME and GSA bargaining
units until a collective bargaining agreement containing such provisions is ratified. If a
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collective bargaining agreement applying the provisions of this section 4.04 to Employees
within classifications in the AFSCME or GSA bargaining units is ratified on or before April 1,
2006, for any Employee who purchases Creditable Service purchased pursuant to
subsection (a), above, that relates to employment during the 2005-2006 fiscal year, and
makes full payment for such service within sixty (60) days following ratification of the
collective bargaining agreement, the payment amount for such service shall be twenty
percent (20%) of the Employee's earnings for the period purchased, with no interest on the
amount paid for such service.
Purchase of Creditable Service by Members Who Previously had Creditable
Service Under the Classified Plan.
Any Member who previously had creditable service under the Classified Plan
but who separated from employment as a Classified Employee prior to becoming fully vested
in the Classified Plan, may purchase Creditable Service under this Plan for all or a portion of
the period of their creditable service under the Classified Plan, by paying into the Plan an
amount equal to the sum of the required employer and employee contributions to the
Classified Plan for each fiscal year of service, or portion thereof, purchased, plus interest at
the rate of eight and one-half percent (8.5%) from the end of each applicable fiscal year
through the date of payment. Full payment must be made within six (6) months after the
effective date of this Ordinance. Notwithstanding any provision of this section 4.05, this
section 4.05 shall have no application to persons employed by the Miami Beach Visitor and
Convention Authority, the Classified Plan, the Unclassified Plan or the City Pension Fund for
Firemen and Policemen on the effective date of this Ordinance,
Section 4. Section 6.03 of the Miami Beach Employees' Retirement Plan created by
Ordinance 2006-3504, as subsequently amended, is hereby further amended as follows:
6.03 Contributions by City
(a(a) It is the intent of this Ordinance that the City contribute to the Plan each year the
amounts actuarially determined to be required, in addition to contributions by Members, to
cover the cost of the benefits provided by the Plan. All administrative expenses shall be paid
by the Plan. Effective September 30 2013, the City shall annually contribute no less than
the net City "normal cost" of the Plan. The net City "normal cost" is the annual cost of the
Plan net of member contributions assigned to the current Plan year. If the net City normal
cost for any Plan year exceeds the City's annual required contribution as determined in
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I
accordance with Part VII Chapter 112 Florida Statutes, the excess shall be held in reserve
as part of Fund assets, designated as the pension stabilization fund, and shall be used to
offset the City's annual required contribution in any Plan year as determined by the City. The
pension stabilization fund shall be accounted for separately and not included as assets of the
Fund for Plan valuation purposes and shall be annually credited or debited with gains and
losses at the same rate of return as the overall net market rate of return on Fund
investments.
(b) An actuarial valuation investigation of the Plan shall be performed annually to determine
the contribution payable by the City. On the basis of regular interest and of such mortality
and service tables as shall be adopted by the Board of Trustees, the actuary shall determine,
immediately after making each valuation, the percentage of the compensation of all
Members required, in addition to contributions payable by such Members, as contributions
payable by the City to provide the benefits of the Plan currently accruing to such Members;
the rate per centum so determined shall be known as the "Normal Contribution Rate" and the
contributions based on this rate shall be known as "Normal Contributions." In addition, the
actuary shall determine the part of the liabilities for benefits under the Plan not covered by
assets in hand, future contributions of Members and future normal contributions of the City
and this amount shall be known as the "Unfunded Accrued Liability"; the percentage of
compensation of Members determined to be payable on account of such liability shall be
known as the "Accrued Liability Contributions Rate". Also, the actuary shall determine the
percentage of compensation necessary to provide for payment of the administrative
expenses of the Plan and this rate shall be known as the "Administrative Cost Rate". The
actuary shall recommend on the basis of each valuation a Normal Contribution Rate and an
Accrued Liability Contribution Rate and an Administrative Cost Contribution Rate.
(c) It is the intention of this Ordinance that contributions be set at such levels, as
recommended by the Actuary designated by the Board, as to provide for a systematic
amortization of any unfunded accrued liability over a period of thirty (30) years from the date
as of which such liability is incurred.
(d) During the Plan year beginning October 1, 2013, and at least once every three Years
thereafter, there shall be an experience study of the Plan's actuarial assumptions performed
by an actuary selected by the City. The actuary shall make recommendations for any
changes in assumptions based on the results of the experience study. In the event the
Board of Trustees or Plan actuary disagrees with the recommended assumption changes,
the Board or Plan actuary shall present the basis of their disagreement and justify any
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deviation from the recommended assumptions to the City Commission.
(e) Effective September 30 2013 the City shall require 5 10 and 20 year projections of
required pension contributions as part of the annual actuarial valuations for the plan. These
projections shall be based on the current actuarial assumptions for the plan. The protections
shall be updated to reflect the cost of any proposed benefit enhancement before the City
Commission agrees to the enhancement. The cost of these studies shall be funded
separately from the annual contribution to the pension plan.
Section 5: Conflicts and Severability.
(a) All Ordinances, and parts of ordinances, in conflict herewith shall be and
the same, are hereby repealed.
(b) In the event any article, section, paragraph, sentence, clause, or phrase
of this Ordinance shall be adjudicated invalid or unconstitutional, such adjudication shall
in no manner affect the other articles, sections, paragraphs, sentences, clauses or
phrases of this Ordinance, which shall be and remain in full force and effect as fully as if
the item so adjudged invalid or unconstitutional was not originally a part hereof.
Section 6. Effective Date.
This Ordinance shall take effect the WnrZ day of Fedrti 12014.
PASSED and ADOPTED by the City Commission of the City of Miami Beach this
/.?-Ah day of Fl brio✓ , 2014.
PHILIP
��. �=-� � '• MAY
* IN 0 p ORATED: �
APPROVED AS TO
ATTEST: � �� L.NGUAGE
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RA AEL E. GlUNADO 1
CITY CLERK C4 y Date
T:\AGENDA\2014\January\GSAF MBERP\GSAF 2012-2015 MBERP DROP and Buyback Ordinance 1st reading.docx
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COMMISSION ITEM SUMMARY
Condensea Title:
An ordinance amending Ordinance 2006-3504, Miami Beach Employees' Retirement Plan (MBERP) for the Government Supervisors
Association of Florida, OPEIU, Local 100 (GSAF) bargaining unit, amending the plan by extending the deferred retirement option plan
DROP program; eliminating the purchase of prior creditable service; and incorporating the adopted pension policies and guidelines.
Key Intended Outcome Supported:
Attract and maintain a workforce of excellence
Supporting Data(Surveys, Environmental Scan,etc.) N/A
Item Summa /Recommendation: SECOND READING
Currently, there is a three year DROP for Tier A and Tier B GSAF/MBERP members and a five year DROP for Tier C (post 2010
employment date) members. In the now ratified collective bargaining agreement (CBA) between the City and GSAF covering the period
October 1, 2012, through September 30, 2015, the parties agreed to extend the DROP period for Tier A and Tier B GSAF/MBERP
members from three to five years, effective October 16, 2013. The same agreement was reached with the Communication Workers of
America(CWA)and applied also applied to non-represented employees in the"other"and"unclassified"salary groups.
The reasons why the DROP yields saving to the City's annual required contribution (ARC) toward pension benefits is that while in DROP,
participants are not eligible for what would otherwise be the annual retiree cost-of-living increase. In FY 2014/15, the DROP extension is
projected to generate$43,041 in savings toward the City's ARC and$337,491 in savings off the unfunded actuarial accrued liability(UAAL).
The GSAF also agreed to eliminate the provision that permitted bargaining unit members to purchase up to two years of prior creditable
service effective September 30, 2013. The true actuarial impact of this change is significantly higher than what members actually pay for
the benefit. The difference between what the member pays and the true cost of the benefit is$26,000 per employee, and is recognized by
the pension plan as an experience loss and is funded by additional City contributions over time.
The agreement with GSAF, as it pertains to its members continuing to pay the additional two percent pension contribution, which began in
2010 pursuant to the 2009-2012 CBA, is contingent upon negotiating or imposing a parallel provision on the American Federation of State
County and Municipal Employees (AFSCME) bargaining unit. As of this writing, the City and AFSCME are at impasse. The estimated
impact of the additional two percent contribution by GSAF bargaining unit members is approximately $78,459 per year and as employee
pensionable earnings rise, so will the amount of the contribution.
At the July 17, 2013, meeting, the Mayor and City Commission adopted pension reforms policies and guidelines proposed by the Budget
Advisory Committee (BAC). These policies were incorporated in the Fire and Police Pension Plan ordinance adopted on September 30,
2013,and have been incorporated in the proposed MBERP ordinance.
The City Commission passed the ordinance on first reading at the January 15, 2014 City Commission meeting. Based on the foregoing,the
Administration recommends amending Ordinance No. 2006-3504, the Miami Beach Employees' Retirement Plan by extending the DROP
for pre-2010 GSAF/MBERP members from three to five years; and eliminating the two year past service purchase option for such
members. Implementing the described changes will provide pension savings in the short and long-term. The Administration recommends
adopting the ordinance.
Advisory Board Recommendation:
Budget Advisory Committee Pension Reform Initiative Recommendation Report,August 2012
Financial Information:
Source of Amount
Funds: 1 FY2012/13
$0
2 FY2013/14
$0
FY2014/15 Reduction to the City's ARC to MBERP represented by$43,041 in pension
3 savings due to DROP extension; and savings of$21,660 due to the elimination
($30,368) of the purchase of prior service. Savings are offset by$34,333 in salary costs.
OBPI Total ($30,368)
Financial Impact Summary: The reduction in the ARC for MBERP as a result of the DROP extension does not have an impact on the
City's FY 2013/14 operating budget, however, the City will see recurring savings off the ARC estimated in the amount of $43,041,
attributable to changes in the GSAF CBA, in FY 2014/15, FY 2015/16, FY 2016/17 and FY 2017/18 for a total five year impact of
$172,164.The cost attributable to the extension of the DROP for GSAF/MBERP members is as follows: $0 in FY 2013/14; $34,333 in FY
2014/15; $104,977 in FY 2015/16; $93,870 in FY 2016/17 and$23,227 in FY 2017/18, assuming all eligible employees DROP rather than
retire.The total five year salary increase impact for the extension of the DROP is$256,407
In FY 2013/14 the will be no savings from the elimination of the ability to purchase prior service; however the following future savings
attributable to the concession made by this bargaining unit are: $21,660 in FY 2014/15; $43,320 in FY 2015/16; $64,980 in FY 2016/17
and $86,640 in FY 2017/18. Therefore, the total five year impact of eliminating the prior service buyback is a savings of$216,600. The
total five year combined impact of these items is a savings of$132,357.
City Clerk's Office Legislative Tracking:
Sylvia Crespo-Tabak, Human Resources Director
Sign-Offs:
Department Director Assistant City Manage City Manager
Sylvia Crespo-Tabak Kathie G. Brooks Jimmy L. Morales
GENDA\2014\February\GSAF MBERP\GSAF 2012-2015 MBERP P t%DROP and Buyback Summary 2nd Rdg.docx
AiEJ ITEM_ . 2`�d v A I A� MEAC u DATE 2
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MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov
CO MISSION MEMORANDUM
TO: Mayor Philip Levine and Members f the City C mission
FROM: Jimmy L. Morales, City Manager
DATE: February 12, 2014 SECOND READING
SUBJECT: AN ORDINANCE OF THE MAYOR ND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, IMPLEMENTIN PROVISIONS OF THE 2012-2015 COLLECTIVE
BARGAINING AGREEMENT BETWEEN THE CITY AND THE GOVERNMENT
SUPERVISORS ASSOCIATION OF FLORIDA, OPEIU, LOCAL 100
(GSAF); AMENDING THE MIAMI BEACH EMPLOYEES' RETIREMENT PLAN
CREATED BY ORDINANCE 2006-3504; AMENDING SECTION 2.26 OF THE PLAN BY
EXTENDING THE DEFERRED RETIREMENT OPTION PLAN (DROP) PROGRAM FROM
THREE (3) TO FIVE (5) YEARS FOR ELIGIBLE MEMBERS; AMENDING SECTION 5.13
TO REFLECT AMENDED ELIGIBILITY AND PARTICIPATION REQUIREMENTS AND
AMENDED DROP PLAN FEATURES; AMENDING SECTION 4.03 BY ELIMINATING
THE PURCHASE OF ADDITIONAL CREDITABLE SERVICE FOR CERTAIN MEMBERS;
AMENDING SECTION 6.03 REQUIRING THE CITY TO CONTRIBUTE AT LEAST THE
NORMAL COST TO PENSION EACH YEAR, REQUIRING AN EXPERIENCE STUDY AT
LEAST EVERY THREE (3) YEARS AND REQUIRING FIVE (5), TEN (10) AND TWENTY
(20) YEAR PROJECTIONS OF REQUIRED PENSION CONTRIBUTIONS AS PART OF
THE ANNUAL ACTUARIAL VALUATION; PROVIDING FOR SEVERABILITY;
REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The Administration recommends adopting the ordinance on second reading.
BACKGROUND
In 2010 the Administration negotiated changes to pension benefits for then current and future
9 g
employees who participate in the Miami Beach Employees' Retirement Plan (MBERP). These
changes were included in the labor agreements entered into by the City with the: American
Federation of State, County and Municipal Employees (AFSCME); Communications Workers of
America (CWA), Local 3178; and Government Supervisors Association of Florida (GSAF), OPEIU,
Local 100. In keeping with the spirit of treating similar groups of employees consistently, these
contractual changes were also applied to all members of the plan not covered by a collective
bargaining unit.
The changes to MBERP implemented in 2010 included an increase to the employee's pension
contribution of two percent. This increase was implemented for the general employee salary groups
as follows: Unclassified and Others in January 2010, employees covered by the AFSCME and
GSAF collective bargaining units in July 2010, and employees covered by the CWA collective
bargaining unit in November 2010. The additional employee contribution remains in effect for
incumbents in all salary groups except employees covered by the AFSCME collective bargaining
agreement, which expired April 30, 2013, as the provision sunset.
Commission Memorandum
February 12,2014
MBERP Pension Ordinance GSAF Second Reading
i
Page 2 of 7
The final average monthly earnings (FAME) increased from two to five years for current (Tier A and
Tier B members) and future employees (Tier C members), phasing in those members who were
between two and four years from the normal retirement age, so as not to adversely impact them.
The change in FAME yielded a reduction of approximately $1.9 million in the City's annual actuarial
required contribution (ARC). Gabriel, Roeder and Smith (GRS), the actuary for MBERP, estimated
that the change in FAME for all members would yield an annual savings ranging from $1.49 million
to $2.275 million per year (approximately 2.12 percent of payroll) each year over the next ten years.
The standard benefit is a lifetime annuity. Additional pension reform was negotiated for all
employees hired after September 30, 2010 (October 2010 for employees whose classifications are
covered b the CWA collective bargaining unit). The changes for new employees Tier C included:
Y 9 9 ) 9 ( )
• Normal retirement - Age 55 with a minimum of thirty years of creditable service, or age 62
with a minimum of five years of creditable service. As compared to Tier A members who can
retire at age 50 and Tier B members who can retire at age 55.
• The early retirement date will be the date on which the member's age plus years of creditable
service equals 75, with a minimum age of 55.
• The benefit multiplier will be two and one half percent multiplied by the member's years of
creditable service, subject to a maximum of 80% of the member's FAME. As compared to
three or four percent for Tier A members and three percent for Tier B members.
• The retiree Cost of Living Adjustment (COLA) will be one and one half percent per year, with
the first adjustment deferred to one year after the end of the Deferred Retirement Option
Plan (DROP) as compared to two and one half percent for Tiers A and B members.
• Employee contribution: 12 percent for Tier A members and ten percent for Tiers B and C
members.
• Members who separate from City employment with five or more years of creditable service
but prior to the normal or early retirement date will be eligible to receive a normal retirement
benefit at age 62.
• Members will be eligible to enter the DROP at the normal retirement age specified above and
may participate in the DROP for a maximum of five years. (The five year DROP is applicable
to those CWA bargaining unit employees who were hired on or after October 27, 2010).
The annual savings attributed to the changes for future employees beginning in FY 2011/12 was
approximately $900,000 (1.92 percent of payroll) in savings toward the City's ARC. GRS estimated
that the City would realize an additional annual reduction of seven-tenths percent per year of payroll
applied as a reduction toward the City's ARC in perpetuity. These savings on the City's ARC were
estimated to vary from a low of$910,000 in FY 2011/12 to as much as $5.995 million in FY 2020/21.
The negotiating teams for the City and GSAF began meeting in October 2012, to negotiate a
successor agreement to the 2009-2012 collective bargaining agreement which expired September
30, 2012. After seven negotiation sessions, on July 18, 2013, the City and GSAF reached a tentative
three year agreement covering the time period of October 1, 2012, through September 30, 2015.
Commission Memorandum
February 12, 2014
MBERP Pension Ordinance GSAF Second Reading
Page 3 of 7
ANALYSIS
The pension changes recently negotiated with GSAF are expected to generate a savings toward the
City's ARC, as well as savings off the unfunded actuarial accrued liability (UAAL). The agreement
with GSAF, as it pertains to its members continuing to pay the additional two percent pension
contribution is contingent upon negotiating or imposing a parallel provision on AFSCME bargaining
unit members. As of this writing, the City and AFSCME are at impasse. The estimated impact of the
two percent contribution attributable to GSAF/MBERP members is approximately $78,459 per year;
this amount will increase as employee pensionable earnings rise.
The City and GSAF have agreed to the following pension related items:
Extension of the Deferred Retirement Option Plan (DROP)
The DROP is an arrangement used by many public organizations under which employees who
would otherwise retire and collect benefits pursuant to the employer's defined benefit (pension)
retirement plan continue working for a fixed number of years.
Instead of having the compensation and additional years of service taken into account for purposes
of the defined benefit plan formula, the employees have a sum of money, equal to their monthly
retirement benefit, credited during their extended employment to an interest bearing account under
the employer's retirement plan.
No further contributions are made to the employees' pension but as long as they remain in the
DROP, they continue earning their full salaries and all other applicable incentive pays, if any. If
these employees are not exempt from the provisions of the Fair Labor Standards Act (FLSA), they
earn overtime if they work more than 40 hours per week and they are also eligible for merit
increases and/or salary COLAs other employees may receive.
When the employees leave at the end of the DROP period, their contributions to the interest bearing
account are disbursed to them by the plan. At that point, they start collecting the monthly benefits
they earned based on earlier years of service. During the DROP period, employees are not eligible
for the retiree COLA.
There are two reasons why the DROP yields saving to the City's ARC. The first, is that participants
are not eligible for the annual retiree COLA. The second is that the employee is not earning
additional pension benefits while in the DROP.
Currently, there is a three year DROP for Tier A and Tier B members and a five year DROP for Tier
C (post-2010 employment) members and those covered by CWA or belonging to the "others" or
"unclassified" salary groups. The City and the GSAF have agreed to extend the DROP period for
Tier A and Tier B (pre-2010 employment) members from three to five years, effective October 16,
2013. The City has extended the DROP period to all MBERP members except for pre-2010
members covered by the AFSCME collective bargaining unit.
Current DROP participants whose period ends between the effective date of the proposed ordinance
and October 15, 2016, shall be given a one-time opportunity to extend their DROP to a maximum of
five years by submitting an irrevocable amended election form provided by the Board, within thirty
calendar days from the effective date of the ordinance.
Commission Memorandum
February 12,2014
MBERP Pension Ordinance GSAF Second Reading
Page 4 of 7
Based on the actuarial impact statement provided by GRS (Attachment 1), the total estimated
impact from extending the DROP period for all GSAF pre-2010 employment members represents a
reduction in the present value of future benefits of approximately $443,000. This means the plan
would be expected to pay out $443,000 less, in today's dollars. The City's ARC payable on October
1, 2014, will be reduced by approximately $43,000. This savings is comprised of a reduction in the
amortization payments on the UAAL of approximately $337,000 and a reduction to the normal cost.
The analysis provided by the pension actuary does not take into account the financial impact of
salary earnings. By extending the DROP to five years, retirement-eligible employees who earn
higher salaries will remain employed, requiring the City to pay their higher salaries for a longer
period. That expenditure is offset somewhat by the fact that hiring new employees is postponed,
eliminating the City's contribution toward their pension. Quantifying the fiscal impact from a salary
perspective is difficult since there is no true way to forecast assumptions regarding which employees
will choose to extend their DROP participation or separate earlier.
As of our latest analysis, there are four GSAF bargaining unit members in the MBERP DROP. The
cost effect on salaries caused by the extension of the DROP from three to five years for GSAF
bargaining unit members is as follows: $0 in FY 2013/14; $34,333 in FY 2014/15; $104,977 in FY
2015/16; $93,870 in FY 2016/17 and $23,227 in FY 2017/18. To reach these conclusions, the salary
of each DROP member was compared to the entry level salary of a new incumbent in the
classification ultimately affected by the DROP participant's retirement. For example, when a Crime
Scene Supervisor retires, his/her position becomes available to an incumbent in a feeder
classification and the domino effect would lead to the City ultimately hiring a new entry level Crime
Scene Technician. In such example, the impact is the difference between the Crime Scene
Supervisor's salary and the entry level salary of a Crime Scene Technician. For this illustrative
purpose, the assumption was that all four DROP participants take advantage of the opportunity and
remain employed with the City.
Elimination of Two Year Past Service Option
The GSAF agreed to eliminate the provision that permits bargaining unit members to purchase up to
two years of prior creditable service effective September 30, 2013.
Currently, any GSAF/MBERP member with five or more years of service can purchase up to two
years of creditable service earned prior to the member's date of hire by the City. Such purchase is
contingent upon the member not receiving a pension benefit for the same period under another
retirement plan (§112.65, Florida Statutes). Eligible prior service includes: (1) military service in the
United States Armed Forces or Coast Guard; (2) full-time employment with another governmental
entity; or (3) full-time employment in the private sector performing the same or similar duties the
member performs for the City at the time of his/her additional service purchase. Members who
exercise this option pay ten percent of their annual rate of pensionable earnings multiplied by the
number of years and fractions of a year purchased.
On average, 157 employees elect to purchase additional creditable service in the MBERP each
year. A member pays 10 percent of his or her pensionable earnings for each year of prior services
purchased. The true actuarial impact is significantly higher. The ultimate cost of the prior creditable
service purchase provision is measured by the difference between the full actuarial cost of the time
purchased and the ten percent of pay for each year purchased. For example, the full actuarial cost
to purchase the maximum of two years of service to a 45 year old member with ten years of service
Commission Memorandum
February 12,2014
MBERP Pension Ordinance GSAF Second Reading
Page 5 of 7
and an annual salary of $60,000 is approximately $38,000; yet pursuant to current provisions, the
member pays $12,000. The difference of$26,000 is recognized as an experience loss and is funded
by additional City contributions over time.
The effect on the ARC due to this member's service purchase is an increase of about $2,300 per
year for thirty years. Based on trends, the average annual impact of $2,300 per member represents
$361,000 to the City each year based on an average of 157 buybacks per year, of which
approximately $292,410 is estimated to be attributed to GSAF, CWA, Unclassified and "Others"
combined; and $21,660 GSAF/MBERP members alone. As shown on the table below, this impact is
compounded each year buybacks are allowed.
FUTURE
FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 YEARS
i
Elimination of
FY 2013/14 $0 $21,660 $21,660 $21,660 $21,660
loss
amortization
Elimination of
FY 2014/15 $21,660 $21,660 $21,660 THE IMPACT
loss OF THE
amortization BUYBACK
Elimination of WILL
FY 2015/16 CONTINUE TO
loss $21,660 $21,660
COMPOUND
amortization EACH YEAR
Elimination of
FY 2016/17 $21,660
loss
amortization
TOTAL $0 $21,660 $43,320 $64,980 $86,640
Additional Two Percent Employee Pension Contribution
The Budget Advisory Committee's (BAC) Recommendation on Pension Reform Report of August
2012 included policies and guidelines for the City to adopt to establish thresholds which, if not met,
would require the City to take prompt and appropriate measures to meet the criteria. At the July 17,
2013 City Commission meeting, the Mayor and City Commission adopted the policies and guidelines
proposed by the BAC. These policies and guidelines included the following related to the
management of risk and risk sharing:
• The City of Miami Beach should strive to provide retirement benefits that ensure that the
City is competitive in the recruitment and retention of employees.
In 2010, the City negotiated a two percent increase in pension contributions from all employees
hired before that year. This represented an increase for Tier A members (GSAF bargaining unit
employees hired prior to August 1, 1993), from 10 to 12 percent of pensionable earnings and an
increase from eight to 10 percent of pensionable earnings for Tier B employees (GSAF bargaining
unit employees hired on or after August 1, 1993). The additional employee pension contribution
implemented in 2010, helped address the increased costs that resulted from the downturn in the
stock market that occurred in 2008 and 2009.
i i
Commission Memorandum
February 12, 2014
MBERP Pension Ordinance GSAF Second Reading
Page 6 of 7
The actuarial valuation report approved by the MBERP Board in March 2013 indicates that the cost
of the plan represents 40.3 percent of payroll. Although the Plan is still recognizing the impact from
the 2008-2009 economic downturns, the recently negotiated pension changes will yield long-term
savings.
When the City's ARC reaches 23.5% of pensionable payroll, which is what it had been when the
additional contributions were negotiated, the City will rescind the additional two percent pension
contribution levied on employees covered by the GSAF collective bargaining agreement who
participate in MBERP and who were hired prior to September 30, 2010.
Additional BAC Policy Recommendations
Also included in the adopted pension policies and guidelines are the following:
• The City shall fund at least the normal cost of pension. If this exceeds the amount of the
actuarially determined annual required contribution, the excess should be placed in a
pension stabilization fund, to be made available for future pension shortfalls.
• The City should require 5, 10 and 20 year projections of required pension contributions
as part of the annual actuarial valuations for each of the City's pension plans. These
projections shall be based on the current actuarial assumptions for each Ian. The
p J P P
projections shall be updated to reflect the cost of any proposed benefit enhancement
before the City Commission agrees to the enhancement. The cost of these studies shall
be funded separately from the annual contribution to the pension plan.
• There shall be an experience study of each of the City's pension plans' actuarial
assumptions performed by an actuary that is independent from the pension board. The
experience study should be conducted at least once every three years to compare actual
experience to the assumptions. The independent actuary shall make recommendations
for any changes in assumptions based on the results of the experience study, and any
deviations from those assumptions by the pension boards shall be justified to the City
Commission.
These policies were incorporated in the Fire and Police Pension Plan ordinance adopted on
September 30 2013 and have bee n incorporated in the proposed MBERP ordinance.
CONCLUSION
The parties agreed to the aforementioned pension changes and the GSAF bargaining unit members
and City Commission ratified the agreement.
Two contract ratification votes were held by the GSAF leadership; the first on August 1, 2013, which
resulted in rejection of the proposed contract; and the second, held on September 18, 2013, which
resulted in the majority of the members who voted doing so in support of the proposed agreement.
Commission Memorandum
February 12,2014
MBERP Pension Ordinance GSAF Second Reading
Page 7 of 7
The estimated five year impact of these proposed pension changes is a savings of $132,357, as
shown below.
FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 TOTAL
Estimated Impact
on ARC From $0 ($43,041) ($43,041) ($43,041) ($43,041) ($172,164)
Extension of DROP
Salary Impact From
$0 $34,333 $104,977 $93,870 $23,227 $256,407
Extension of DROP
Estimated Impact
on ARC From $0 ($21,660 ) ($216,600)
Elimination of Two- ) ($43,320) ($64,980) ($86,640
Year Buyback
TOTAL $0 ($30,368) $18,616 ($14,151) ($106,454) ($132,357)
COST/(SAVINGS)
The Administration recommends amending Ordinance No. 2006-3504, the Miami Beach Employees'
Retirement Plan by extending the DROP for pre-2010 GSAF/MBERP members from three to five
years; and eliminating the two year past service purchase option for members covered by the GSAF
collective bargaining agreement. Implementing the described changes will provide additional
pension savings.
The City Commission passed the ordinance on first reading during the January 15, 2014 City
Commission meeting. Based on the foregoing, the Administration recommends the City Commission
adopt the ordinance on second reading.
JLM/K /SC T/
T:\AGENDA\2014\February\GSAF MBERP\GSAF 2012-2015 MBERP Pension DROP and Buyback Memo 2nd Reading.docx
ATTACHMENT
Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone
GRS Consultants&Actuaries Suite 505 954.525.0083 fax
Ft.Lauderdale,FL 33301-1804 www.gabrielroeder.com
October 7,2013
Ms.Carla Gomez
Assistant Director,Human Resources
City of Miami Beach
1700 Convention Center Drive
Miami Beach,Florida 33139
Re: Actuarial Impact Statement for Proposed Changes to the Miami Beach Employees'Retirement Plan
Dear Carla:
As requested,we have prepared the enclosed Actuarial Impact Statement showing the financial effect of the
following proposed changes to the Miami Beach General Employees' Retirement System for members
participating in the GSAF bargaining unit:
1. The maximum period for participation in the Deferred Retirement Option Program(DROP)would be
extended from three to five years for members hired before October 1,2010(i.e.,Tier A and Tier B
members). This extension would apply to all active members in Tiers A and B who elect to participate
in the DROP in the future as well as current DROP members. The 2.5%COLA is not payable while
members are in the DROP.
2. The option for members to purchase up to 2-years of credited service would be eliminated.
Please note that the above changes were already adopted for all members except for members who are
participating in the AFSCME or GSAF bargaining units,and the effect of these changes are shown in
our September 6,2013 Actuarial Impact Statement(also referred to as the"Baseline"in this report).
The enclosed figures reflect the additional effect of applying the above changes to members participating
in the GSAF bargaining unit.
The Statement must be filed with the Division of Retirement before the final public hearing on the ordinance.
t Statement aloe with a Please have a member of the Board of Trustees sign the Statement. Then send he Stat g copy
of the proposed ordinance to Tallahassee.
With regard to item 2 above,the employer portion of the cost for members to purchase service is not prefunded.
Therefore,eliminating the service purchase provision will not have an immediate financial effect on the Plan.
When we prepare our annual valuation,any increases to the liability due to service purchased during the
previous year are reflected in the net gain/loss for the year,which is amortized over 30 years.
The ultimate cost of the current service purchase provision is measured by the difference between the full
actuarial cost of the service purchased and the amount that members currently pay to purchase service(i.e.,
10%of pay for each year purchased). As an example,the full actuarial cost to purchase the maximum of 2
years of service for a member who is currently age 45 with 10 years of credited service and an annual salary of
$60,000 is approximately$38,000. Under the current provisions,the member pays$12,000. The difference of
$26,000 is funded by additional City contributions over time. In this example,the effect on the annual required
contribution due to the service purchase is an increase of about$2,300 for the first year.This assumes that all of
our actuarial assumptions as described in the October 1,2012 Actuarial Valuation Report are met each year.
The impact on the total gain/loss varies each year depending on the demographics and the specific benefit
Ms.Carla Gomez
October 7,2013
Page 2
P rovisions that apply to members who purchased service.
Eliminating the service purchase provision will mean that any losses due to service purchases will not occur in
future years. Please note,however,that there will likely be losses due to service purchases in fiscal year ending
September 30,2013 that will be reflected in the October 1,2013 Actuarial Valuation,since elimination of the
service purchase provision will not be effective until after September 30,2013.
Summary of Findings
The following summarizes the additional effect of reflecting the above Plan changes for GSAF members(as
compared to the September 6.2013 Actuarial Impact Statement):
• The present value of future benefits decreases by approximately$433,000.
- The Plan would be expected to pay out$433,000 less, in today's dollars,to current members of
the Plan. This can be viewed as the total cost impact due to the extension of the DROP for
GSAF members if the actuarial assumptions are met each year.
• There is a decrease in the first year Annual Required Contribution for the City that is comprised of a
reduction in the amortization payments on the Unfunded Accrued Liability and a reduction in the normal
cost.
The Unfunded Accrued Liability decreased by approximately$337,000. This reduction will
decrease the annual required contribution by approximately$30,000 each of the next 30 years.
- The first year normal cost will decrease by approximately$13,000 which is 0.019%of total
0 0
covered payroll 1 0.02/o of Tier A and B member covered payroll). The reduction of 0.02/o of
PY ( PY
Tier A and Tier B member covered payroll will exist until all Tier A and Tier B members have
retired.
The first year required employer contribution would decrease by approximately$43,000 or
0.07%of Non-DROP payroll.
- The funded ratio will increase from 66.6%to 66.7%.
Other Cost Considerations
• As of October 1,2012 the Market Value of Assets exceeds the Actuarial Value by$2.07 million. This
difference will be recognized over the next several years. Once all the gains and losses through September
30,2012 are fully recognized in the Actuarial Value of Assets,the contribution rate will decrease by
roughly 0.3%of non-DROP payroll unless there are further gains or losses.
Additional Disclosures
This report was prepared at the request of the City with the Board's permission and is intended for use by the
City and the Retirement Plan,and those designated or approved by them. This report may be provided to
parties other than the City and Retirement Plan only in its entirety and only with their permission.
This report is intended to describe the financial effect of the proposed plan changes.No statement in this
report is intended to be interpreted as a recommendation in favor of the changes,or in opposition to them.
This report should not be relied on for any purpose other than the purpose described above.
The calculations in this report are based upon information furnished by the Plan Administrator for the
October 1,2012 Actuarial Valuation concerning Plan benefits,financial transactions,plan provisions and
active members,terminated members,retirees and beneficiaries. The calculations are also based on
Gabriel Roeder Smith & Company
Ms.Carla Gomez
October 7,2013
Page 3
bargaining unit information provided by the City related to this study. We reviewed this information for
internal and year-to-year consistency,but did not otherwise audit the data. We are not responsible for the
accuracy or completeness of the information provided by the Plan Administrator or the City.
The calculations are based upon assumptions regarding future events,which may or may not materialize.
They are also based on the assumptions, methods,and plan provisions outlined in this report. Future
actuarial measurements may differ significantly from the current measurements presented in this report due
to such factors as the following: plan experience differing from that anticipated by the economic or
demographic assumptions;changes in economic or demographic assumptions; increases or decreases
expected as part of the natural operation of the methodology used for these measurements(such as the end of
an amortization period or additional cost or contribution requirements based on the plan's funded status);and
changes in plan provisions or applicable law. If you have reason to believe that the assumptions that were
used are unreasonable,that the plan provisions are incorrectly described,that important plan provisions
relevant to this proposal are not described,or that conditions have changed since the calculations were made,
you should contact the author of the report prior to relying on information in the report.
The undersigned actuaries are members of the American Academy of Actuaries and meet the Qualification
Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. The
undersigned actuaries are independent of the plan sponsor.
This report has been prepared by actuaries who have substantial experience valuing public employee
retirement systems.To the best of our knowledge the information contained in this report is accurate and
fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in
conformity with generally accepted actuarial principles and practices,and with the Actuarial Standards of
Practice issued by the Actuarial Standards Board and with applicable statutes.
Respectfully submitted,
Allt R
AMA
Melissa R.Algayer,MAAA, C J rose,MAAA
Enrol led Actuary No. 11-06467 9nrol led Actuary No. 11-06599
Copy: Rick Rivera
Enclosures
Gabriel Roeder Smith &Company
l
SUPPLEMENTAL ACTUARIAL VALUATION REPORT
Plan
City of Miami Beach Employees' Retirement Plan
Valuation Date
October 1,2012
Date of Report
October 7,2013
Report Requested by
City of Miami Beach
Prepared by
Melissa R. Algayer
Group Valued
All active and inactive members.
Plan Provisions Being Considered for Change
Present Plan Provisions before Change
All Members except AFSCME and GSAF Members:
• Members hired before October 1,2010(i.e.,Tier A and Tier B members)who become eligible
for normal retirement may participate in the Deferred Retirement Option Program(DROP)for up
to five years. Members currently participating in the three-year DROP may also continue
participation for an additional two years(five years total). The annual COLA of 2.5% is not
payable while members are in the DROP.
• There is no optional service purchase provision.
AFSCME and GSAF Members:
• Members hired before October 1,2010(i.e.,Tier A and Tier B members)who become eligible
for normal retirement may participate in the Deferred Retirement Option Program(DROP)for up
to three years.The annual cost-of-living adjustment(COLA)of 2.5%is not payable while
members are in the DROP.
• Members who have five or more years of service may elect to purchase up to two years of
additional credited service at any time prior to retirement. Members who elect to purchase such
service pay 10%of the annual rate of compensation multiplied by the number of years purchased.
2
Proposed Plan Changes
The following changes would apply to all members except AFSCME Members:
• Members hired before October 1,2010(i.e.,Tier A and Tier B members)who become eligible
for normal retirement may participate in the Deferred Retirement Option Program(DROP)for up
to five years. Members currently participating in the three-year DROP may also continue
participation for an additional two years(five years total). The annual COLA of 2.5%is not
payable while members are in the DROP.
• The optional service purchase provision would be eliminated.
Participants Affected
The extension of the DROP participation period would apply to all active GSAF members hired prior to
October 1,2010(i.e.,Tier A and Tier B members)who become eligible for normal retirement. The
extension of the DROP would also apply to current GSAF members participating in the DROP as the
effective date of the amending ordinance.
Elimination of the optional service purchase provision would apply to all active GSAF members after the
effective date of the amending ordinance.
Actuarial Assumptions and Methods
To measure the impact of extending the DROP,the assumed COLA delay was increased from 2.75
years to 4 years for active Tier A and Tier B members who are not participating in the AFSCME
bargaining unit. Additionally,the COLA delay was increased from 3 years to 5 years for members
currently participating in the DROP and not members of the AFSCME bargaining unit.
All other assumptions and methods are the same as shown in the October 1,2012 Actuarial Valuation
Report.
Some of the key assumptions/methods are:
Investment return— 8.0%per year
Salary increase — 4.5%to 7.0%depending on service
Cost Method — Entry Age Normal Cost Method
Amortization Period for Any Change in Actuarial Accrued Liability
30 years.
Summary of Data Used in Report
Same as data used in October 1,2012 Actuarial Valuation Report.
Actuarial Impact of Proposal(s)
See attached page(s). Extending the DROP from three to five years for GSAF members will decrease
the first year annual required contribution by$43,041 or 0.07%of Non-DROP payroll.
Since the employer portion of the cost for members to purchase service is not prefunded,eliminating
the optional service purchase provision would not have an immediate financial effect on the Plan.
3
Special Risks Involved With the Proposal That the Plan Has Not Been Exposed to Previously
None
Other Cost Considerations
As of October I,2012 the Market Value of Assets exceeds the Actuarial Value by$2.07 million. This
difference will be recognized over the next several years. Once all the gains and losses through
September 30,2012 are fully recognized in the Actuarial Value of Assets,the contribution rate will
decrease by roughly 0.3%of non-DROP payroll unless there are further gains or losses.
4
CITY OF MIAMI BEACH EMPLOYEES'RETIREMENT PLAN
Impact Statement—October 7,2013
Description of Amendment
The proposed ordinance incorporates the following plan changes and would apply to all active members
participating in the GSAF bargaining unit and GSAF members participating in the Deferred Retirement
Option Program(DROP):
1. The maximum period for participation in the Deferred Retirement Option Program(DROP)
would be extended from three to five years for members hired before October 1,2010(i.e.,Tier A
and Tier B members). This extension would apply to all active members in Tiers A and B who
elect to participate in the DROP in the future as well as current DROP members. The 2.5%
COLA is not payable while members are in the DROP.
2. The option for members to purchase up to 2-years of credited service would be eliminated.
The above changes were already adopted for members except members participating in the GSAF or
AFSCME bargaining units,and reflected in the September 6,2013 Actuarial Impact Statement(referred
to as the"Baseline"of the enclosed report). The figures in the enclosed report reflect the additional effect
of applying the above changes to members participating in the GSAF bargaining unit.
Funding Implications of Amendment
See attachments.
Certification of Administrator
I believe the amendment to be in compliance with Part V11,Chapter 112, Florida Statutes and Section
14,Article X of the Constitution of the State of Florida.
For the Board of Trustees
as Plan Administrator
5
ANNUAL REQUIRED CONTRIBUTION(ARC)
A. Valuation Date October 1, 2012 October 1, 2012 Increase/
Baseline* Extend DROP from (Decrease)
Three to Five Years
B. ARC to Be Paid During
Fiscal Year Ending 9/30/2014 9/30/2014
C. Assumed Date of Employer Contrib. 10/1/2013 10/1/2013
D. Annual Payment to Amortize
Unfunded Actuarial Liability $ 16,788,153 $ 16,760,395 $ (27,758)
E. Employer Normal Cost 6,917,430 6,905,335 (12,095)
F. ARC if Paid on the Valuation Date:
D+E 23,705,583 23,665,730 (39,853)
G. ARC Adjusted for Frequency of
Payments 25,602,030 25,558,989 (43,041)
H. ARC as%of Covered Payroll
-Non-DROP Payroll 39.36 % 39.29 % (0.07) %
-Total Payroll 36.69 % 36.63 % (0.06) %
1. Covered Payroll for Contribution Year
-Non-DROP Payroll 65,053,945 65,053,945
-Total Payroll 69,782,689 69,782,689 -
From September 6,2013 Actuarial Impact Statement.
6
ACTUARIAL VALUE OF BENEFITS AND ASSETS
A. Valuation Date October 1,2012 October 1, 2012 Increase/
Baseline* Extend DROP,froni (Decrease)
Three to Five Years
B. Actuarial Present Value of All Projected
Benefits for
1. Active Members
a. Service Retirement Benefits $ 260,184,135 $ 259,785,430 $ (398,705)
b. Vesting Benefits 31,967,178 31,967,178 -
c. Disability Benefits 7,271,899 7,271,899 -
d. Preretirement Death Benefits 3,953,764 3,953,764 -
e. Return of Member Contributions 631,843 631,843 -
f. Total 304,008,819 303,610,114 (398,705)
2. Inactive Members
a. Service Retirees& Beneficiaries 407,869,328 407,835,275 (34,053)
b. Disability Retirees 12,377,127 12,377,127 -
c. Terminated Vested Members 119480,115 11,480,115 -
d. Total 431,726,570 431,692,517 (34,053)
3. Total for All Members 735,735,389 735,302,631 (432,758)
C. Actuarial Accrued (Past Service)
Liability per GASB No. 25 632,541,230 632,203,739 (337,491)
D. Plan Assets
1. Market Value 423,447,642 423,447,642 -
2. Actuarial Value 421,376,041 421,376,041
E. Unfunded Actuarial Accrued Liability(C-D2) 211,165,189 210,827,698 (337,491)
F. Funded Ratio(D2 -C) 66.6 % 66.7 % 0.1 %
G. Actuarial Present Value of Projected
Covered Payroll 543,825,043 543,825,043 -
H. Actuarial Present Value of Projected
Member Contributions 51,791,078 51,791,078 -
* From September 6,2013 Actuarial Impact Statement.
7
CALCULATION OF EMPLOYER NORMAL COST
A. Valuation Date October 1, 2012 October 1, 2012 Increase/
Baseline* Extend DROP from (Decrease)
Three to Five Years
B. Normal Cost for
1. Service Retirement Benefits $ 9,656,873 $ 9,644,778 $ (12,095)
2. Vesting Benefits 2,047,065 2,047,065 -
3. Disability Benefits 529,872 529,872 -
4. Preretirement Death Benefits 268,222 268,222 -
5. Return of Member Contributions 225,573 225,573 -
6. Total for Future Benefits 12,727,605 12,715,510 (12,095)
7. Assumed Amount for Administrative
Expenses 694,180 694,180 -
8. Total Normal Cost 13,421,785 13,409,690 (12,095)
%of Covered Payroll
- Non-DROP Payroll 20.63 % 20.61 % (0.02) %
-Total Payroll 19.23 % 19.22 % (0.01) %
C. Expected Member Contribution 6,504,355 6,504,355 -
%of Covered Payroll
-Non-DROP Payroll 10.00 % 10-00 % 0.00 %
-Total Payroll 9.32 % 9.32 % 0.00 %
D. Employer Normal Cost:138-C 6,917,430 6,905,335 (12,095)
%of Covered Payroll
- Excluding DROP Payroll 10.63 % 10.61 % (0.02) %
- Including DROP Payroll 9.91 % 9.90 % (0.01) %
* From September 6,2013 Actuarial Impact Statement.
8
PARTICIPANT DATA
October 1, 2012 October 1, 2012
Baseline* Extend DROPfrom
Three to Five Years
ACTIVE MEMBERS
Number(Non-DROP) 17049 1,049
Covered Annual Non-DROP Payroll $ 65,053,945 $ 65,053,945
Average Annual Non-DROP Pay $ 62,015 $ 62,015
Total Covered Annual Payroll $ 69,782,689 69,782,689
Average Annual Pay $ 63,209 63,209
Average Age 45.1 45.1
Average Past Service 9.8 9.8
Average Age at Hire 35.3 35.3
DROP PARTICIPANTS
Number 55 55
Annual Benefits $ 2,994,703 2,994,703
Average Annual Benefit $ 54,449 54,449
Average Age 59.3 59.3
RETIREES & BENEFICIARIES
Number 1,002 1,002
Annual Benefits $ 33,085,394 $ 33,085,394
Average Annual Benefit $ 33,019 $ 33,019
Average Age 71.1 71.1
DISABILITY RETIREES
Number 43 43
Annual Benefits $ 1,117,160 $ 1,117,160
Average Annual Benefit $ 25,980 $ 25,980
Average Age 65.6 65.6
TERMINATED VESTED MEMBERS
Number 63 63
Annual Benefits $ 1,343,444 $ 1,343,444
Average Annual Benefit $ 21,325 $ 21,325
Average Age 45.9 45.9
* From September 6,2013 Actuarial Impact Statement.
I
16HE I THURSDAY,JANUARY 30,2014 NE MiamiHerald com I MIAMI HERALD
MIAM] BEACH
CITY OF MIAMI BEACH:
NOTICE OF PUBLIC HEARINGS
NOTICE IS HEREBY given that the following public hearings will be heard by the Mayor and City Commission of the City of Miami Beach,Florida,in the Commission Chambers,3rd Floor,City Hall,1700 Convention Center
Drive,Miami Beach,Florida,on Wednesday,February 12,2014:
10:10 a.m.—Single Family Development Regulations/An Ordinance Amending The Land Development Regulations Of The Code Of The City Of Miami Beach,Florida,By Amending Chapter 142,"Zoning Districts And
Regulations,"Division 2,"RS 71,RS-2,RS-3,RS-4 Single-Family Residential Districts,"By Amending The Criteria And Procedures For The Review And Approval Of Single-Family Residential Construction,By Replacing The
`"Single-Family Residential Review Panel,By Clarifying And Amending The Standards And Procures For Reviewing New Construction And Additions In Single Family Districts,Including Modifications To Lot Coverage,Unit Size
-And Overall Height,By Clarifying The Below Flood Level Construction Requirements For Affected.Properties In High Flood Zones,And By Clarifying Setback And Lot Coverage Requirements.Inquiries may be directed to the
Planning Department at 305-673-7550.
10:25 a.m.—Architecturally Significant Single Family Home Retention Incentives/An Ordinance Amending The Land Development Regulations Of The Code Of The City Of Miami Beach,By Amending Chapter 142,."Zoning
Districts And Regulations,"Article 11,"District Regulations,"Divil(on 2,"Single-Family Residential Districts,"By Revising The Standards And Review Requirements For New Construction,Additions And Modifications To
Properties That Contain An Architecturally Significant Single Family Home Nat Located Within A Designated Historic District.Inquiries may be directed to the Planning.Department at 305-673-7550.
10:40 a.m.—Afton Road Historic District Buffer Overlay/Ordinance Amending The Code Of The City Of Miami Beach,Florida,By Amending Chapter 142,"Zoning Districts And Regulations,"Article III,"Overlay Districts,"Creating
Division 8"Alton Road-Historic District Buffer Overlay,"By Including Section 142-858"Location And Purpose,"And Section 142-859"Development Regulations,"Including Among Other Provisions Regulations On Maximum
Floor Area Ratio;Maximum Building Height;Minimum Setbacks;Building Separation;Demolition OrAdditions To Contributing Buildings In An Historic District,And Land Use Regulations For Location Of Retail Uses,Restaurants,
Bars,Entertainment Establishments,Alcoholic Beverage Establishments And Similar Uses;Requiring Conditional Use Approval,Of Such Uses In Excess Of 10,000 Sq.Ft;And Prohibiting Alcoholic Beverage And Entertainment
Establishments In Open Areas With Exceptions As Prescribed In The Ordinance.Inquiries may be directed to the Planning Department at 305-673-7550.
10:55 a.m.—Mechanical Parking Systems/Ordinance Amending The Land Development Regulations Of The City Code By Amending Chapter 130"Off-Street Parking,"Article II"Districts,Requirements,"Section 130-38,
"Mechanical And Robotic Parking Systems,"By Modifying The Requirements For Mechanical Parking Devices And Robotic Parking Systems.Inquiries maybe directed to the Planning Department at 305-673-7550.
11:05 a.m. Talmudic University-RM-2 Heights/Ordinance Amending The Land Development Regulations Of The Code Of The City Of Miami Beach,By Amending Chapter 142,"Zoning Districts And Regulations,"Article 11,
"District Regulations,"Subdivision IV,"RM-2-Residential Multifamily,Medium Intensity,"Section 142-217,"Area Requirements,"To Modify The Requirements For Maximum Building Height And Maximum Number Of Stories
Within The RM-2 District Along Alton Road Between Arthur Godfrey Road And West 34th Street.Inquiries may be directed to the Planning Department at 305-673-7550.
11:15 a.m.—Ordinance Amending The Code Of The City Of Miami Beach,By Amending Chapter 54,Entitled"Floods,"By Amending Article II,Entitled"Floodplain Management,"By Amending Division 1,Entitled"Generally,"By
Amending Section 54-35,Entitled"Definitions By Amending The Definition Of"Substantial Improvement"To Apply To Improvements Taking Place During A One Year Period Instead Of During A Five Year Period.Inquiries may
be directed to the Building Department at 305-673-7610.
11:25 a.m.—Ordinance Amending Chapter 2 Of The City Code,Entitled"Administration,"By Amending Article Ill,Entitled"Agencies,Boards And Committees"To Streamline The City's Boards By Expanding The Powers,Duties
And/Or Membership Of Certain Agencies,Boards And Committees And Abolishing Those That Are Superseded By The Enhanced Agencies,Boards,And Committees.Inquiries maybe directed to the CifyAttomey's Office at
305 473-7470.
11:35 a.m.—No Wake Zone Ordinance/Ordinance Amending The Code Of The City Of Miami Beach,By Amending Chapter 66,Entitled"Marine Structures,Facilities And Vehicles,"By Amending Article 11,Entitled"Restricted
Wake Zones,"By Amending Section 66-43,Entitled"Restricted Areas,"By Amending Subsection C Thereof Regarding The Slow Speed,Minimum Wake Zone By Amending The Boundaries Thereof And Amending Area C On
The Appendix Thereto.Inquiries may be directed to the City Attorney's Office at 305-673-7470.
11:45 a.m.—Ordinance Amending Chapter 2 Of The Miami Beach City Code Entitled"Administration,"By Amending Article N Entitled"Officers And Employees,"By Amending Section 2-191 Entitled"Enumeration of
Organizational Units,"By Creating The Office Of Communications,Office Of Budget And Performance Improvement,Information Technology Department,Procurement Department,Tourism,Culture And Economic Development
Department,Planning Department,Office Of Housing And Community Development,And Office Of Capital Improvement Projects;Eliminating The Divisions Under Offices And Departments;And Further Providing Amendments
T he Names Of Certain Departments And Offices.Inquiries maybe directed to the Human Resources Department at 305-673-7524.
11:55 a.m.—MBERP For GSAF/Ordinance Implementing Provisions Of The 2012-2015 Collective Bargaining Agreement Between The City And The Government Supervisors Association Of Florida,OPEIU,Local 100(GSAF);
Amending The Miami Beach Employees'Retirement Plan Created By Ordinance 2006-3504;Amending Section 2.26 Of The Plan By Extending The Deferred Retirement Option Plan(DROP)Program From Three(3)To Five
(5)Years For Eligible Members;Amending Section 5.13 To Reflect Amended Eligibility And Participation Requirements And Amended DROP Plan Features;Amending Section 4.03 By Eliminating The Purchase Of Additional
Creditable Service For Certain Members;Amending Section 6.03 Requiring The City To Contribute At Least The Normal Cost To Pension Each Year,Requiring An Experience Study At Least Every Three(3)Years And Requiring
Five(5),Ten(10)And Twenty(20)Year Projections Of Required Pension Contributions As Part Of The Annual Actuarial Valuation.Inquiries may be directed to the Human Resources Department at 305-673-7524.
Dr.Stanley Sutnick.Citizen's Forum—Pursuant to Resolution No.2013-28440,the times for the Dr.Stanley Sutnick Citizen's Forum have been changed to 8:30 a.m.and 1:00 p.m.,or as soon as possible thereafter.
Approximately thirty minutes will be allocated to each session,with individuals being limited to no more than three minutes or for a period established by the Mayor.No appointment or advance notification is needed in order
to speak to the Commission during this Forum.
INTERESTED PARTIES are invited to appear at this meeting,or be represented by an agent,or to express their views in writing addressed to the City Commission,c/o the City Clerk,1700 Convention Center Drive,151 Floor,
City Hall,Miami Beach,Florida 33139.Copies of these items are available for public inspection during normal business hours in the City Clerk's Office,1700 Convention Center Drive,1s,Floor,City Hall,Miami Beach,
Florida 33139.This meeting,or any item herein,may be continued,and under such circumstances,additional legal notice need not be provided.
Rafael E.Granado,City Clerk
City of Miami Beach
Pursuant to Section 286.0105,Fla.Stat.,the City hereby advises the public that:if a person decides to appeal any decision made by the City Commission with respect to any matter considered at its.meeting or its hearing,
such person must ensure that a verbatim record of the proceedings is made,which record includes the testimony and evidence upon which the appeal is to be based.This notice does not constitute consent by the City for
the introduction or admission of otherwise inadmissible or irrelevant evidence,nor does it authorize challenges or appeals not otherwise allowed by law.
To request this material in accessible format,sign language interpreters,information on access for persons with disabilities and/or any accommodation to review any document or participate in any City-sponsored proceeding,
please contact us five days in advance at 305-673-7411(voice)or TTY users may also call the Florida Relay Service at 711.
4d#855