2015-3970 Ordinance 2015-3970
ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING PART I,
SUBPART B, ARTICLE IX, RELATED SPECIAL ACTS, OF THE
MIAMI BEACH CITY CODE ENTITLED "PENSION SYSTEM
FOR DISABILITY AND RETIREMENT OF MEMBERS OF
POLICE AND FIRE DEPARTMENTS"; AMENDING THE
PENSION SYSTEM TO COMPLY WITH APPLICABLE
PROVISIONS OF THE INTERNAL REVENUE CODE AND
REGULATIONS THEREUNDER; AMENDING SECTION 62,
ENTITLED "DEFINITIONS"; AMENDING SECTION 63,
ENTITLED "SOURCE OF MONIES FOR FUND; COMPUTATION
OF LIABILITY; USE AND INVESTMENT OF FUND";
AMENDING SECTION 66, ENTITLED "SERVICE AND
DISABILITY BENEFITS GENERALLY"; AMENDING SECTION
70, ENTITLED "RETURN OF CONTRIBUTION"; AMENDING
SECTION 79, ENTITLED "DEFERRED RETIREMENT OPTION
PLAN"; AMENDING SECTION 82, ENTITLED "MILITARY
SERVICE"; AMENDING SECTION 83, ENTITLED
"LIMITATIONS ON BENEFITS;" AMENDING SECTION 84,
ENTITLED "DISTRIBUTION LIMITATION"; AMENDING
SECTION 85, ENTITLED "DISTRIBUTION TO RETIREMENT
PLAN"; 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. Effective September 30, 2013, Section 62 of Part 1, Subpart B, Article IX,
Related Special Acts of the Miami Beach City Code, is amended to read:
Section 62. Definitions
The following words, terms and phrases, when used in this article, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a
different meaning:
Actuarial Assumptions (for the calculation of optional forms of benefits) means the
following interest rates compounded annually:
(a) 8.5% for plan years prior to October 1, 2009; 8.4% effective for the plan year beginning
October 1, 2009; 8.3% effective for the plan year beginning October 1, 2010; 8.2%
effective for the plan year beginning October 1, 2011; 8.1% effective for the plan year
•
beginning October 1, 2012; and 8.0% effective for the plan years beginning October 1.,
2013 and October 1, 2014;
(b) 7.95% effective for the plan year beginning October 1, 2015; 7.90% effective for the
plan year beginning October 1, 2016; 7.85% effective for the plan year beginning October
1, 2017; 7.80% effective for the plan year beginning October 1, 2018; and 7.75% effective
for the plan year beginning October 1, 2019.
Actuarial Assumptions (for the calculation of optional forms of benefits) also means the
following mortality tables:
(a) for plan years beginning prior to October 1, 2010, the 1983 Group Annuity Mortality
Table; for plan years beginning on October 1, 2010 and October 1, 2011: for Pre-
Retirement Mortality the RP-2000 Combined Mortality Table with a blue collar
adjustment, for Post-Retirement Healthy Mortality the RP-2000 Combined Mortality Table
with a blue collar adjustment, and for Post-Retirement Disabled Mortality the RP-2000
Combined Mortality Table;
(b) for plan years beginning on and after October 1, 2012: for Pre-Retirement Mortality the
RP-2000 Combined Mortality Table with a blue collar adjustment projected 15 years from
valuation date, for Post-Retirement Healthy Mortality the RP-2000 Combined Mortality
Table with a blue collar adjustment projected 7 years from valuation date, and for Post-
Retirement Disabled Mortality the RP-2000 Combined Mortality Table. For purposes of
determining the period that benefits are paid to a widow or widower who was married to a
deceased member for less than ten years, the 1994 Life Expectancy Table shall be used.
* *
Section 2. Section 63 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 63. Source of moneys for fund; computation of liability; use and investment of
fund.
* * *
(b) Each member of this System hired before September 30, 2013 shall contribute 10% of
his Salary to the Fund. Each member of this System hired on or after September 30,
2013 shall contribute 10.5% of his Salary to the Fund. The City shall, solely for
purposes of complying with section 414(h) of the Internal Revenue Code, pick up
contributions required to be made by the members under this System. The
contributions so picked up shall be treated as employer contributions for purposes of
determining their tax treatment under the Internal Revenue Code. No employee shall
have the option of choosing to receive the contributed amounts directly instead of
having them paid by the city to the System.
x
Section 3. Section 66.1 of Part 1, Subpart B, Article IX, Related Special Acts of the
Miami Beach City Code, is amended to read:
Section 66.1 Normal form of benefit; benefit options.
(e) Upon attainment of normal retirement age, as described herein, the member shall be
fully vested in the benefits under the System.
Section 4. Section 70 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 70. - Return of contribution.
(a) Except as provided in subsections (b) and (c) of this section, whenever any member
in the service of either the fire or police department shall sever his connection with such
department either voluntarily or by lawful discharge, or by death not attributed to his active
duties prior to the completion of five years of membership in the department, or by death
in active service after the completion of five years of membership in the department
leaving no Surviving Spouse, Domestic Partner, children or Dependent Parents entitled to
pension benefits under this System, such member or his estate shall be entitled to the return
of all the moneys he has contributed into this System, together with accumulated interest
on the sum, at the rate of three percent per annum, computed until date of payment to the
member or his estate, unless in the event of discharge or voluntary severance such member
has at that time qualified under the terms of this System for a pension from the System.
No payment shall be made under this paragraph to a member unless the member has made
a written request for the payment in the form and manner determined by the Board.
* * x
Section 5. Section 79 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 79. - Deferred Retirement Option Plan (DROP).
(1) Compliance with Internal Revenue Code Section 414(k) and 414(i). To the extent
required under the Internal Revenue Code, the DROP shall be treated as a defined
contribution plan to the extent that the member's benefits under the System are based on
the member's DROP account. The amount of"annual additions" (as such term is defined
in Section 415(c)(2) of the Internal Revenue Code and Treasury Regulations §1.415(c)-
1(b)) which may be allocated under the DROP to a member's DROP account for a
"limitation year" may not exceed the maximum permissible amount under Section
415(c)(1) of the Internal Revenue Code and Treasury Regulations §1.415(c)-1(a)(1) (the
"Annual Maximum Amount"). In addition, for purposes of determining a member's
Annual Maximum Amount, the member's compensation shall be determined in compliance
with Treasury Regulations §1.415(c)-2.
Section 6. Section 82 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 82. - Military service.
* *
(c) Notwithstanding any provision of this plan to the contrary, effective as of
December 12, 1994, contributions, benefits and service credit with respect to qualified
military service will be provided in accordance with Section 414(u) of the Internal
Revenue Code of 1986, as amended, and USERRA, as applicable.
Section 7. Section 83 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 83. - Limitations on benefits.
(a) In addition to the other limitations set forth in this System and notwithstanding any
other provision of the System to the contrary, the maximum annual pension payable under
the System shall not increase to an amount in excess of the amount permitted under section
415 of the Internal Revenue Code, with such limitation specifically subject to subsections
(F), (G) and (I) of section 415(b)(2) of the Internal Revenue Code and sections 415(b)(11),
415(k)(3) and 415(n) of said Code. The limitation year shall be the 12 month period
ending each September 30.
* * *
Section 8. Section 84 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 84. - Distribution limitation.
Notwithstanding any other provision of this System, all distributions from this System
shall conform to section 401(a)(9) of the Internal Revenue Code in general and to section
401(a)(9)(C) of the Internal Revenue Code in particular. Notwithstanding any other
provision of this plan to the contrary, a form of retirement income payable from this plan
shall satisfy the following conditions:
(a) If the retirement income is payable before the member's death:
(1) It shall either be distributed or commence to the member not later than April 1
of the calendar year following the later of the calendar year in which the member attains
age 70 1/2 , or the calendar year•in which the member retires;
(2) The distribution shall commence not later than the calendar year defined above;
and (a) shall be paid over the life of the member or over the lifetimes of the member and
the member's designated beneficiary or (b) shall be paid over the period extending not
beyond the life expectancy of the member and the member's designated beneficiary.
Where a form of retirement income payment has commenced in accordance with the
preceding paragraphs and the member dies before his entire interest in the plan has been
disrupted, the remaining portion of such interest in the plan shall be distributed no less
rapidly than under the form of distribution in effect at the time of the member's death.
(b) If the member's death occurs before the distribution of his interest in the plan has
commenced, the member's entire interest in the plan shall be distributed within five years
of the member's death, unless it is to be distributed in accordance with the following rules:
(1) The member's remaining interest in the plan is payable to his member's
designated beneficiary;
(2) The remaining interest is to be distributed over the life of the member's
designated beneficiary or over a period not extending beyond the life expectancy of the
member's designated beneficiary; and
(3) Such distribution begins within one year of the member's death unless the
member's Surviving Spouse is the sole designated beneficiary, in which case the
distribution need not begin before the date on which the member would have attained age
70 1/2 and if the member's Surviving Spouse dies before the distribution to the Surviving
Spouse begins, this section shall be applied as if the Surviving Spouse were the member.
Section 9. Section 85 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 85. - Distribution to retirement plan.
(a) Election by distributee. This section applies to distributions made on or after January 1,
1993. Notwithstanding any provision of this article to the contrary that would otherwise
limit a distributee's election under this section, a distributee may elect, at the time and in
the manner prescribed by the Board, to have any portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(b) Definitions. The following words, terms and phrases, when used in this subsection,
shall have the meanings ascribed to them in this subsection, except where the context
clearly indicates a different meaning:
1. Direct rollover means a payment by the System to the eligible retirement plan
specified by the distributee. Effective as of January 1, 2008, a non-spouse Beneficiary
may make a direct rollover only to an "inherited" individual retirement account as
described in Section 408(b) of the Internal Revenue Code.
2. Distributee includes an employee or former employee. In addition, the
employee's or former employee's Surviving Sspouse or domestic partner is a distributee
with regard to the interest of the Surviving Sspouse or domestic partner. Effective as of
January 1, 2008, an Employee's or former Employee's non-spouse Beneficiary is a
distributee with regard to the interest of the Employee of former Employee.
3. Eligible retirement plan means an individual retirement account described in
section 408(a) of the Internal Revenue Code, an individual retirement annuity described in
section 408(b) of the Internal Revenue Code, an annuity plan described in section 403(a) of
the Internal Revenue Code, or a qualified trust described in section 401(a) of the Internal
Revenue Code, that accepts the distributee's eligible rollover distribution. However, in the
�. Effective for distributions made after December 31, 2001, an eligible retirement
plan shall also mean an annuity contract described in Section 403(b) of the Internal
Revenue Code and an eligible plan under Section 457(b) of the Internal Revenue Code
which is maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state and which agrees to separately
account for amounts transferred into such plan from this Plan.
4. Eligible rollover distribution means any distribution of all or any portion of the
balance to the credit of the distributee; except that an eligible rollover distribution does not
include any distribution that is one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life expectancy) of the distributee or the
joint lives (or joint life expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more; any distribution to the extent
such distribution is required under section 401(a)(9) of the Internal Revenue Code; and the
portion of any distribution that is not includable in gross income.
Section 10. 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 11. Codification. This Ordinance shall be codified in the Code of Ordinances of
the City of Miami Beach.
Section 12. Effective date. This Ordinance shall take effect ten days following adoption,
except as otherwise specified herein.
PASSED and AD P E by the City Commission of the City of Miami Beach this
/ day of Ober. 2015.
11,/,-
y y �
PHILIP LEVINE 4'' ''�
_ \P
MAYOR •....... ,,
I*:INCORPORATED *
ATTEST: 2 A <0 r
/ 4,,,I.CH 26' ,
RAFAEL E. RANA O
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
a"`A City Atto a Date il" Ja&LC
COMMISSION ITEM SUMMARY
Condensed Title:
An ordinance of the Mayor and City Commission of the City if Miami Beach, Florida, amending Part I, Subpart B,
Article IX, Related Special Acts, of the Miami Beach City Code entitled "Pension System for Disability and
Retirement of Members of Police and Fire Departments"; amending the pension system to comply with applicable
provisions of the Internal Revenue Code and Regulations thereunder; amending Section 62 entitled, "Definitions";
amending Section 63, entitled "Source of Monies for Fund; Computation of Liability; Use and Investment of Fund";
amending Section 66,entitled "Service and Disability Benefits Generally"; amending Section 70, entitled "Return of
Contribution"; amending Section 79, entitled "Deferred Retirement Option Plan"; amending Section 82, entitled
"Military Service"; amending Section 83, entitled "Limitations on Benefits;" amending Section 84, entitled
"Distribution Limitation"; amending Section 85, entitled "Distribution to Retirement Plan"; providing for severability;
repealing all ordinances in conflict therewith; and providing and effective date.
Key Intended Outcome Supported:
IEnsure expenditure trends are sustainable over the long term
Second Reading, Public Hearing
Item Summary/Recommendation:
The amendments are technical in nature, and should not result in additional cost to the City. An actuarial impact
statement will be provided for the second reading and public hearing which, contingent on acceptance of the
Administration's,recommendation, should be October 14,2015.
The proposed amendments include the following nine plan changes:
1. A new definition of"actuarial assumptions" for the purpose of calculating optional forms of benefits. The
definition incorporates the past and present assumptions approved by the pension board and plan actuary.
2. A provision stating that employee contributions that are "picked up" by the City (i.e., treated as employer
contributions for tax purposes)cannot be paid directly to employees.
3. A provision stating that a plan member shall be fully vested in plan benefits upon reaching normal
retirement age.
4. A provision requiring plan members who separate from city employment to make a written request for a
return of member contributions.
5. A provision stating that the DROP plan shall be treated as a defined contribution plan for the purpose of
applying maximum limits on contributions and additions, to the extent required by law.
6. A provision incorporating the mandatory requirements of the Uniformed Services Employment and
Reemployment Rights Act(USERRA).
7. A provision stating that the limitation year is the same as the plan year(October 1 through September 30)
for the purpose of applying the maximum benefit limit in Section 415 of the Internal Revenue Code.
8. A provision incorporating the mandatory distribution requirements of the Internal Revenue Code.
9. Provisions incorporating the rollover requirements of the Internal Revenue Code.
There are legal and practical advantages to obtaining a determination letter. Among them: an IRS determination
letter provides a definitive analysis of whether a plan is qualified and the basis for retroactive relief if the Service
later changes its position. According to the actuary, the proposed ordinance does not result in any costs to the
City.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1
2
3
Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Sylvia Crespo-Tabak, Human Resources Director
Sign-Offs:
Department Director Assistant City Manager City anager
SCT6a-( MT JLM
MIAMIBEACH AGENDA.ITEM R S �
M I AM I BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, FL 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Philip Levine an. Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 14, 2015
SUBJECT: AN ORDINANCE OF THE MAYO ' AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORID A , AMENDING PART I, SUBPART B,
ARTICLE IX, RELATED SPECIAL ACTS, OF THE MIAMI BEACH CITY
CODE ENTITLED "PENSION SYSTEM FOR DISABILITY AND
RETIREMENT OF MEMBERS OF POLICE AND FIRE
DEPARTMENTS"; AMENDING THE PENSION SYSTEM TO COMPLY
WITH APPLICABLE PROVISIONS OF THE INTERNAL REVENUE
CODE AND REGULATIONS THEREUNDER; AMENDING SECTION 62,
ENTITLED "DEFINITIONS"; AMENDING SECTION 63, ENTITLED
"SOURCE OF MONIES FOR FUND; COMPUTATION OF LIABILITY;
USE AND INVESTMENT OF FUND"; AMENDING SECTION 66,
ENTITLED "SERVICE AND DISABILITY BENEFITS GENERALLY";
AMENDINGSECTION 70, ENTITLED "RETURN OF CONTRIBUTION";
AMENDING SECTION 79, ENTITLED "DEFERRED RETIREMENT
OPTION PLAN"; AMENDING SECTION 82, ENTITLED "MILITARY
SERVICE"; AMENDING SECTION 83, ENTITLED "LIMITATIONS ON
BENEFITS;" AMENDING SECTION 84, ENTITLED "DISTRIBUTION
LIMITATION"; AMENDING SECTION 85, ENTITLED "DISTRIBUTION
TO RETIREMENT PLAN"; PROVIDING FOR SEVERABILITY;
REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND
PROVIDING AN EFFECTIVE DATE.
SECOND READING, PUBLIC HEARING
BACKGROUND
We have reviewed the ro osed amendments to the Miami Beach Firefighters and Police
P P 9
Pension Plan, attached to the Internal Revenue Service (IRS) determination letter dated
January 29, 2014 (attached).
An Internal Revenue Service "determination letter" is issued in response to a request as to the
qualified status of a retirement plan under IRC section 401(a). The determination letter
expresses the Service's opinion regarding the form of the plan, and applies only to the employer
and the plan participants on whose behalf it was issued.
The proposed amendments are required by the Internal Revenue Code (IRC) and IRS
regulations, in order for the Plan to retain its qualified status and comply with the favorable
determination letter from the IRS.
The proposed amendments include the following nine plan changes:
We are committed to providing excellent public service and safety to all who live,work and pby in our vibrant,tropical,historic community.
City Commission Memorandum
October 14,2015
Firefighters and Police Pension Plan
Page 2 of 3
1. A new definition of "actuarial assumptions" for the purpose of calculating optional forms
of benefits. The definition incorporates the past and present assumptions approved by
the pension board and plan actuary.
2. A provision stating that employee contributions that are "picked up" by the City (i.e.,
treated as employer contributions for tax purposes) cannot be paid directly to
employees.
3. A provision stating that a plan member shall be fully vested in plan benefits upon
reaching normal retirement age.
4. A provision requiring plan members who separate from city employment to make a
written request for a return of member contributions.
5. A provision stating that the DROP plan shall be treated as a defined contribution plan for
the purpose of applying maximum limits on contributions and additions, to the extent
required by law.
6. A provision incorporating the mandatory requirements of the Uniformed Services
Employment and Reemployment Rights Act (USERRA).
7. A provision stating that the limitation year is the same as the plan year (October 1
through September 30) for the purpose of applying the maximum benefit limit in Section
415 of the Internal Revenue Code.
8. A provision incorporating the mandatory distribution requirements of the Internal
Revenue Code.
9. Provisions incorporating the rollover requirements of the Internal Revenue Code.
In summary, the proposed amendments satisfy the IRS requirements for plan qualification.
While public employers that sponsor retirement plans are not required to apply for a
determination letter, receiving a favorable determination letter provides documentation that the
plan satisfies the applicable qualification standards.
There are several legal and practical advantages to obtaining a determination letter. One legal
advantage is that an IRS determination letter provides a definitive analysis of whether a plan is
qualified. It also provides the basis for retroactive relief if the Service later changes its position.
One practical advantage of obtaining a determination letter is that the City's auditors will be less
likely to question the qualified status of the Plan.
We have prepared an ordinance incorporating the IRC compliance amendments. The
amendments are technical in nature, and according to the attached actuarial impact statement
dated September 14, 2015, "... based upon the actuarial assumptions and methods employed
in the October 1, 2014 Actuarial Valuation, the proposed Ordinance is a no cost Ordinance
under the State minimum funding requirements.".
City„Commission'Memorandum
-October 14;•2015. -
Firefighters.and Police Pension•Plan ,-
Page 3 of
` L r' zn
.
s . RECOMMENDATION
Adoption Of the ordinance--is recommended.
Attachments.
JLM/MT/SC-T = -
- _ - '
' f
r
ATTACHMENT
INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY
P. O. BOX 2508
CINCINNATI, OH 45201
Date:
JAN 2 9 2014 5�916000372entification Number:
DLN:
209063011
CITY OF MIAMI BEACH Person to Contact:
C/O FIRE AND POLICE PENSION OFFICE RUTH CHEN ID# 95048
1691 MICHIGAN AVE STE 355 Contact Telephone Number:
MIAMI BEACH, FL 33139 (626) 927-1423
Plan Name:
CITY PENSION FOR FIREFIGHTERS &
POLICE IN THE CITY OF MIAMI BEACH
Plan Number: 001
Dear Applicant:
We have made a favorable determination on the plan identified above based
on the information you have supplied. Please keep this letter, the application
forms submitted to request this letter and all correspondence with the Internal
Revenue Service regarding your application for a determination letter in your
permanent records. You must retain this information to preserve your reliance
on this letter.
Continued qualification of the plan under its present form will depend
on its effect in operation. See section 1.401-1(b) (3) of the Income Tax
Regulations. We will review the status of the plan in operation periodically.
The enclosed Publication 794 explains the significance and the scope of
this favorable determination letter based on the determination requests
selected on your application forms. Publication 794 describes the information
that must be retained to have reliance on this favorable determination letter.
The publication also provides examples of the effect of a plan's operation on
its qualified status and discusses the reporting requirements for qualified
plane. Please read Publication 794.
This letter relates only to the status of your plan under the Internal
Revenue Code. It is not a determination regarding the effect of other federal
or local statutes.
This determination letter gives no reliance for any qualification change
that becomes effective, any guidance published, or any statutes enacted, after
the issuance of the Cumulative List (unless the item has been identified in the
Cumulative List) for the cycle under which this application was submitted.
This letter may not be relied on after the end of the plan's first
five-year remedial amendment cycle that ends more than 12 months after the
application was received. This letter expires on January 31, 2014. This letter
considered the 2007 Cumulative List of Changes in Plan Qualification
Requirements.
This determination is subject to your adoption of the proposed amendments.
Letter 2002 (DO/CG)
a
-2-
CITY OF MIAMI BEACH
submitted in your letter dated 7-29-13. The proposed amendments
should be adopted on or before the date prescribed by the regulations under
Code section 401(b) .
This determination is conditioned upon your adoption of the proposed
restated plan as submitted with your or your representative's letter dated
2-23-11. The proposed plan should be adopted on or before the
date prescribed by the regulations under Code section 401(b) .
This determination letter is based solely on your assertion that the plan
is entitled to be treated as a Governmental plan under section 414(d) of the
• Internal Revenue Code.
This determination letter is applicable to the plan and related documents
submitted in conjunction with your application filed during the remedial
amendment cycle ending 2009.
This is not a determination with respect to any language in the plan or
any amendment to the plan that reflects Section 3 of the Defense of Marriage
Act, Pub. L. 104-199, 110 Stat. 2419 (DOMA) or U.S. v. Windsor, 133 S. Ct. 2675
(2013) , which invalidated that section.
We have sent a copy of this letter to your representative as indicated in
the Form 2848 Power of Attorney or appointee as indicated by the Form 8821 Tax
Information Authorization.
If you have questions concerning this matter, please contact the person
whose name and telephone number are shown above.
Sincerely,
Andrew E. Zuckerman
Director, EP Rulings & Agreements
Enclosures: • .
Publication 794
Letter 2002 (DO/CG)
ATTACHMENT
GRS Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone
Consultants&Actuaries Suite 505 954.525.0083 fax
Ft.Lauderdale,FL 33301-1804 www.gabrielroeder.com
September 14, 2015
Ms. Donna Brito ` � r
Executive Director Cn‘
0-1 City Pension Fund for Firefighters and Police Officers - co rn
in the City of Miami Beach o
1691 Michigan Avenue, Suite 355 -o
Miami Beach,Florida 33139
s '
Re: Proposed Ordinance No.
Dear Donna:
As requested,we have performed an actuarial review of the attached ro osed Ordinance
p P
under the City Pension Fund for Firefighters and Police Officers in the City of Miami
Beach.
Based upon our review,the proposed Ordinance:
1. Adds definition of Actuarial Assumptions for determining actuarial equivalence
2. Clarifies Member contributions picked-up by the City may not be paid directly to
Members
3. Clarifies Members are fully vested upon attainment of normal retirement age
4. Provides requirement that Members who separate from employment make written
request for a refund of Member contributions
5. Clarifies treatment of Deferred Retirement Option Plan(DROP)under the Internal
Revenue Code(IRC)
6. Incorporates requirements of the Uniformed Services Employment and
Reemployment Rights Act(USERRA)under the IRC
7. Provides the limitation year is the fiscal year ending September 30th for purposes
of applying the maximum benefit limits under the IRC
8. Provides minimum distribution requirements of the IRC
9. Provides rollover requirements under the IRC
10. Repeals all Ordinances and parts of Ordinances in conflict herewith
11. Provides for severability
12. Provides for codification
13. Provides for an effective date
In our opinion,based upon the actuarial assumptions and methods employed in the October
1,2014 Actuarial Valuation,the proposed Ordinance is a no cost Ordinance under State
minimum funding requirements.
w � .
Ms. Donna Brito
September 14, 2015
Page Two
Please forward a copy of the Ordinance upon passage at second reading to update our
records.
We are available to respond to any questions concerning the above.
Sincerest regards,
Lawrence F. Wilson,A.S.A.
Senior Consultant and Actuary
Enclosure
Gabriel Roeder Smith&Company
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