Ordinance 89-2640 ORDINANCE NO. 89-2640
AN ORDINANCE PROVIDING FOR THE CREATION AND MAINTENANCE
OF A SPECIAL FUND TO BE KNOWN AS THE CITY SUPPLEMENTAL
PENSION FUND FOR FIREMEN AND POLICEMEN IN THE CITY OF
MIAMI BEACH, FLORIDA; PROVIDING FOR SEVERABILITY;
REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND
PROVIDING FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA:
Section 1. Establishment of Supplemental Pension Fund
A special fund shallbe created to be known as the City
Supplemental Pension Fund for Firemen and Policemen in the City
of Miami Beach; said Fund to be used exclusively for the purpose
provided for in this Supplemental System, which Fund shall be
collected, administered and disbursed according to the provisions
of this Supplemental System.
Section 2 . Method of Financing
The said Supplemental Pension Fund shall consist of monies derived
from the following sources:
2 .01 On and after the Effective Date, the. City shall pay into the
funds of the Supplemental System with respect to each fiscal
year such amount as is actuarially determined to be required
under this Plan, in addition to the personal contributions of
members, computed on an interest rate as determined from time
to time by the Board of Trustees.
2 . 02 All computations of liability in connection with the
Supplemental System created hereby shall be based on such
tables and 1..ates approved by the Board of Trustees. The
Actuary for the Base System shall be the Actuary for the
Supplemental System. The Actuary for the Supplemental System
shall recommend such tables and rates for adoption by the
Board. On the basis of such tables and rates, the Actuary for
the Supplemental System shall determine the amounts required
to be paid into the Supplemental System by the City, as
provided for in Section 2 . 01.
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2 .03 There shall be a complete actuarial evaluation prepared by the
Actuary at least every three (3) years, and the City shall
make such adjustments in its contributions as shall be shown
to be required by such actuarial evaluation. The money
required to meet all the obligations of this Supplemental
System, over and above the personal contributions forthcoming
from the members, is a liability and obligation of the City
of Miami Beach. Therefore, the City Counsel Commission of
the City of Miami Beach may levy annually, in the manner
provided by Law, upon all taxable property within said City,
such millage on the assessed valuation thereof as is necessary
to produce the amounts required hereby to be contributed by
said City to this Supplemental System.
Nothing in this Supplemental System shall be construed to
prevent the City Administration from appropriating monies from
the General Fund or from any Special Funds of the City, for
the purpose of creating or adding to the Pension Fund created
under this Supplemental System, and the City shall have the
right to appropriate monies from the General Fund or any
Special Fund of the City in addition to a millage. And
furthermore, the City shall have the right and power to
designate other sources of revenue for the Pension Fund
created by this Supplemental System, including the designating
of certain fines and forfeitures for violation of the City
Ordinances to be paid to this Fund instead of the general
revenue of said City.
No monies raised by taxation or otherwise provided for in the
Pension Fund created under this Supplemental System shall be
used other than for the purpose of this Supplemental System.
2 .04 Except as hereinafter provided, commencing with the first
payroll period beginning on or after the Effective Date, every
member shall contribute an amount equal to ten (10%) percent
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of his salary or wages reduced by the amount of salary or
wages he is contributing under the Base System, and shall be
entitled to receive the benefits of this Supplemental System.
On and after the Effective Date, the City shall, solely for
the purpose of compliance with Section 414 (h) of the Internal
Revenue Code, pick up the member contributions required to be
made under this Supplemental System by employees on salary or
wages paid with respect to payroll periods beginning on or
after the Effective Date, and the contributions so picked up
shall be treated as employer contributions in determining tax
treatment under the Internal Revenue Code.
Section 3. Definitions
3.01 The term "employee" shall mean any regular member of the
Police Department or Fire Department who has attained regular
Civil Service Status in such Departments under the Official
Classifications of positions in the Classified Service of the
City of Miami Beach, Florida, having a rank in such department
other than Civilian rank and other than the classification of
School Guard. The Chiefs of the Police and Fire Departments
shall be considered employees for the purposes of this
Supplemental System.
3.02 The terms "Firemen" and "Policemen" shall be synonymous with
the term "employee" as defined above.
3.03 The term "widow" shall mean the lawfully wedded wife of a
member of the Fire or Police Departments living with the
member at the time of his death.
3.04 For the purpose of determining member contributions under this
Supplemental System, the term "salary or wages" shall mean
salary or wages before reduction for the picked-up member
contributions and before reduction for any amounts contributed
in accordance with Sections 125 or 457 of the Internal Revenue
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Code. Furthermore, "salary or wages" taken into account for
any purpose under this Supplemental System, including for
purposes of determining a member' s contribution to this
Supplemental System under Section 2 . 04, shall not exceed
$200, 000 per year. As of January 1 of each calendar year
beginning on or after January 1, 1990, the foregoing
limitation shall be adjusted in such manner as shall be
determined by the Secretary of the Treasury.
3.05 The term "Base System" shall mean the Police and Firemen's
Pension Act, City of Miami Beach, Florida Chapter 23414 , Laws
of Florida, Special Acts of 1945, as amended from time to
time.
3.06 The term "Supplemental System" shall mean this Police and
Firemen' s Supplemental Pension System, as set forth in this
document or as amended from time to time.
3.07 The term "Effective Date" shall mean June 1, 1989 except that
if the City is required to initiate funding prior to October
1, 1989, the Effective Date shall be October 1, 1989.
3.08 The term "Base System Benefit" shall mean the amount of
benefit payable to or on behalf of a member, if any, under the
Base System on account of the member' s retirement, death or
disability, as the case may be, under a provision of the Base
System.
3.09 The term "physically and/or mentally handicapped child" shall
mean a dependent physically and/or mentally handicapped child
of a member having reached the age of eighteen (18) who is
primarily dependent upon the member for the child' s livelihood
or support due to a mental or physical condition or handicap
of the adult child which requires, or otherwise would have
required, the member to provide primary support for the adult
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child.
3 .10 The term "dependent parent" shall mean a parent of a member
for whom a member is entitled, or would have been entitled,
to claim a dependency exemption for Federal income tax
reporting purposes.
Section 4. Membership
4. 01 Any employee of the City who is an employee as herein defined
on the Effective Date or who becomes an employee as defined
herein after the Effective Date shall automatically be a
member of this System. However, any member may irrevocably
elect, in writing and prior to January 1, 1990 or prior to
retirement, if earlier, to waive his membership in this
Supplemental System and, in such event, he shall not become
a member hereunder, shall not make contributions hereunder,
and shall not be entitled to any benefits hereunder.
4.02 A member who retired from the Base System on or after January
1, 1989 and prior to the Effective Date shall become a member
of this Supplemental System on the Effective Date and have his
pension recalculated to reflect the provisions of Section
7 . 01 (B) with respect to payments due and owing on and after
the Effective Date; provided, however, that such member may
irrevocably elect in writing prior to the Effective Date to
waive his membership in this System, in which event he shall
not become a member hereunder, and shall not be entitled to
any benefits hereunder.
4.03 Whenever a member shall sever his employment voluntarily prior
to becoming eligible for a pension but retain his civil
service rights with the City, and if such member does not have
returned to him the monies provided for in Section 18 hereof,
he shall, upon resuming his employment as an employee as
defined herein, again become a member; provided, however, that
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between the date of such severance and the date of such
re-employment he shall be entitled to no benefits hereof
excepting those which may have accrued to him prior to such
severance, and further provided upon such re-employment he
shall submit to the medical examination required by Section
4 . 06.
4.04 As of the Effective Date, there shall be transferred to the
Pension Fund of this Supplemental System an amount equal to
three (3) times the accumulated amount of contributions,
together with interest thereon to the date of transfer, that
were paid by the employee into the City of Miami Beach
Employees Retirement System with respect to employees as
defined herein who are members of the City of Miami Beach
Employees Retirement System as of the Effective Date and who
are not members of the Base System as of such Date.
Simultaneously with such transfer, said employees shall become
members of this Supplemental System. The funds so
transferred, together with interest thereon to the date of
transfer, shall be credited against the City' s liability for
creditable service already accrued prior to the date of
transfer with respect to persons who become members of this
Supplemental System in accordance with this Section 4 . 04 .
4 .05 Membership in this Supplemental System shall automatically
cancel the membership and participation of any employee in
any other pension annuity or retirement System for employees
of the City of Miami Beach to which the said City contributes,
other than membership and participation in the Base System.
4.06 All employees of the City who become employees as defined
herein and who become members of this Supplemental System in
accordance with the provisions of this Section 4, shall submit
to a physical examination as prescribed by the Board of
Trustees; however, the result of such examination shall not
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affect eligibility for membership in this Supplemental System,
but shall be used for the proper administration of the
Supplemental System by the Board. This physical examination
requirement shall be deemed satisfied with respect to any
member who has fulfilled this requirement under the Base
System as of the Effective Date or who fulfills said
requirement under said System after the Effective Date.
4.07 Whenever any employee is employed by the City and becomes a
member of this Supplemental System, the City, within thirty
(30) days thereafter, is hereby authorized, empowered and
directed to prepare a contract for execution between the
parties hereto, to-wit: The City and said employee, which
contract shall be in the following form:
THIS AGREEMENT, made and entered into this
day of , 19 , between
the City of Miami Beach, a municipal corporation under
the laws of the State of Florida, hereinafter referred
to as City, party of the first part, and (individual
employee) , hereinafter described as employee, party of
the second part.
WITNESSETH: THAT WHEREAS, the City has established
the Police and Firemen' s Supplemental Pension System City
of Miami Beach, Florida, and
WHEREAS, it is beneficial to the said City to have its
said employees protected by the terms of said Supplemental
System and benefits and the said employee is desirous of
participating in said Supplemental System and benefits, it
is thereupon
UNDERSTOOD AND AGREED by and between the parties
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that the party of the second part does hereby allot, out
of his salary or wages paid to him by the City and
determined before reduction for picked-up contributions
in accordance with Section 2 . 04 or any amounts
contributed on a pre-tax basis in accordance with
Sections 125 and 457 of the Internal Revenue Code, an
amount equal to ten (10%) per cent of said salary or
wages from the Effective Date (or date of membership, if
Later) , reduced by the amount of salary or wages he is
contributing under the Base System, and does hereby
authorize and direct the disbursing officer or officers
of said City to retain out of said salary or wages said
amount, in compliance with the terms of the Supplemental
System, and to continue to make said allotment and
authorize said deduction throughout the entire time of
his employment or re-employment or until such time as he
shall be entitled to receive the pension allowance or
benefit provided by the Fund. For the purpose of
determining member contributions under this Supplemental
System, salary or wages shall be computed in accordance
with the provisions of Section 3 . 04 .
IT IS FURTHER UNDERSTOOD AND AGREED by and between
the parties that the said City, party of the first part,
will accept said allotment or deduction from the salary
or wages of said employee aforesaid, and when, under the
terms of the Supplemental System, said employee or other
beneficiary of said employee shall be entitled, under
the terms of the Supplemental System, to receive the
benefits from said Fund herein created, will pay said sum
or sums from said Fund and all other benefits so
authorized to said employee or his other beneficiaries,
in accordance with the terms of this Supplemental System,
without diminution or deduction.
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IT IS FURTHER UNDERSTOOD AND AGREED that this
contract shall remain in force without change,
modification or amendment, until all the purposes now
intended to be fulfilled shall have been fully
performed, except that payment or other benefits to the
party of the second part or his beneficiaries may be
increased but not diminished.
IT IS FURTHER UNDERSTOOD AND AGREED that the
percentage of the allotment of or deduction from the
salary or wages of the said employee shall not be
increased during the term of this contract but may only
be decreased or diminished by the party of the first
part, nor shall said employee lose any rights under the
terms of this contract by reason of the refusal of said
City at any time during the terms hereof to make
allotment or deduction from said salary or wages.
IT IS FURTHER UNDERSTOOD AND AGREED that it is the
intention of the parties hereto to create vested rights
in the respective parties not to be hereinafter impaired
for any cause whatsoever.
IT IS FURTHER UNDERSTOOD AND AGREED that the terms
of the Supplemental System hereinbefore set forth are
declared to be a part of this contract and this contract
is to be construed with reference thereto.
IN WITNESS WHEREOF, the party of the first part has
hereto caused these presents to be executed, signed and
sealed, with the seal of said City, by its duly
authorized officers, and the said party of the second
part has hereunto set his hand and seal the day and year
first above written. (Here follow signatures and seals. )
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Said contract or agreement is to be executed in
duplicate, one copy to be retained by the City, the
other copy to be delivered to the said employee joining
in said contract, and shall thereafter be and remain a
contract binding upon the said City and the employee, and
enforceable in any Court in the State of Florida having
jurisdiction of actions upon contracts in like amount,
and by such relief, ordinary or extraordinary, at law,
or in equity as may be suitable or appropriate in similar
causes.
Section 5. Administration of System
The general administration and responsibility for the proper
operation of the Supplemental System are vested in a Board of
Trustees consisting of nine persons. The Board of Trustees shall
be identical to the Board of Trustees of the Base System. Election
or appointment to the Board of Trustees of the Base System shall
constitute an election or appointment to the board of the
Supplemental System. The Chairman and Secretary of the Board of
Trustees of the Supplemental System shall be the Chairman and
Secretary of the Board of Trustees of the Base System.
(A) The Trustees shall serve without compensation, but they may
be reimbursed for all necessary expenses which they may
actually expend through services on the Board.
(B) Each Trustee shall, within ten days after his appointment or
election, take an oath of office before the City Clerk of said
City, that so far as it develops upon him he will diligently
and honestly administer the affairs of the said Board, and
that he will not knowingly violate or willingly permit to be
violated any of the provisions of the law applicable to the
retirement system. Such oath shall be subscribed to by the
member making it and certified by the said Clerk and filed in
his office.
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(C) Each Trustee shall be entitled to one vote on the Board. Five
votes shall be necessary for a decision by the Trustees at any
meeting of the Board. The Chairman shall have the right to
one vote only.
(D) Subject to the limitations of this Supplemental System, the
Board of Trustees shall from time to time establish rules and
regulations for the administration of funds of the
Supplemental System and for the transaction of its business,
including provisions for compulsory attendance of its members.
(E) The Board of Trustees shall engage such actuarial and other
services as shall be required to transact the business of the
Supplemental System. The compensation of all persons engaged
by the Board of Trustees and all expenses of the Board
necessary for the operation of the Supplemental System shall
be paid at such rates and in such amounts as the Board of
Trustees shall agree but in no case shall the total
expenditures for such services or operations under this
Supplemental System exceed three (3) per cent of the maximum
of the combined pension funds under the Base System and this
Supplemental System for each fiscal year less the amount of
actual expenditures for services or operations under the Base
System. All funds shall be disbursed by the Board of
Trustees.
(F) Any trustee who neglects the duties of his office shall be
removed by the Board of Trustees.
Section 6. Investment of Funds
6.01 Money shall be withdrawn from the pension fund under the
Supplemental System only upon warrants executed by a majority
of the Board. The Board shall have exclusive charge of the
investment of any surplus in said fund not needed for the
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current obligations thereof by investment of same in the
following:
Bonds, notes, securities or other evidences of
indebtedness which are the direct obligations of the
Government of the United States and for which the full
faith and credit of the government is pledged.
Loans, insured or guaranteed as to principal and interest
by the Government of the United States or by any agency
or instrumentality thereof, to the extent of such
insurance or guaranty.
Bonds, notes and other securities of any county or
incorporated city in any State of the United States or
the District of Columbia, which are the direct obligation
of such county or city and for payment of which said
governmental body has the lawful authority to levy taxes
or make assessments.
Bonds, notes or other evidences of indebtedness which are
payable from revenues of any structure or improvement
owned by any state or incorporated city within the United
States.
Dividend paying stocks, common or preferred, of any
corporation created and existing under the laws of the
United States or of any State, provided that the amount
so invested shall at no time exceed fifty (50%) per cent
of the total funds invested.
Group annuity contracts with one or more insurance
companies authorized to do business in the State with
assets of not less than two billion dollars. Such group
annuity contracts may provide for direct payment of
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benefits by the insurance company to members, retirants,
pensioners or beneficiaries, or may provide for the
payment of funds to be made to the Board to be applied
toward amounts payable to such persons pursuant to the
provisions of this Supplemental System.
Bonds, notes or other interest-bearing obligations of any
solvent corporation organized under the laws of the
United States, or any State, territory or possession of
the United States.
Shares or savings accounts of federal savings and loan
associations, to the extent that they are insured by an
agency or an instrumentality of the Government of the
United States.
6.02 Monies needed for the meeting of the current obligations may
be deposited in a depository recognized by law for the deposit
of funds of the State of Florida and upon posting of similar
security to that required for public deposits. The City of
Miami Beach shall have the custody of and responsibility for
any funds, stocks, bonds, notes or other evidences of
indebtedness and such custody shall be for the purpose of
safekeeping only, without any discretion in the City of Miami
Beach regarding the propriety of any withdrawal or transfer
of any such funds, stocks, notes, other evidences of
indebtedness or funds.
Section 7 . Benefits Payable
7 .01 Service and Disability Benefits
(A) The Board shall, upon application, retire members meeting any
one of the following requirements:
(1) The attainment of age Fifty (50) years.
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(2) Permanent and total disability incurred in the line of
duty in the Police or Fire Department, or in the
Unclassified Service as provided in Section 18 hereof,
irrespective of the number of years of service.
(3) Permanent and total disability incurred other than in the
line of duty, after five (5) years of creditable service.
(B) A member shall be entitled to receive, upon retirement after
the attainment of age Fifty (50) , or upon retirement under the
provisions of Subsection (A) (2) or (3) , a monthly pension
payable for life equal to subparagraph (1) plus subparagraph
(2) , reduced by subparagraph (3) as follows:
(1) Three (3%) per cent of the average monthly salary or
wages of the member for each year of the first fifteen
(15) years of creditable service, being computed as to
a part of a year on a pro rata basis to the nearest
month; plus
(2) Four (4%) per cent of the average monthly salary or wages
of the member for each year of creditable service in
excess of fifteen (15) years, being computed as to a part
of a year on a pro rata basis to the nearest month;
reduced by
(3) the Base System Benefit.
In the event a service retirement pension becomes payable
under this Supplemental System prior to the date the service
retirement pension is payable under the Base System, the
member's pension payable hereunder shall be recomputed at such
time as the Base System Benefit becomes payable to reflect
payment of such Benefit.
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For purposes of determining a member' s benefit under this
Supplemental System, the "average monthly salary or wages" of
the member shall be based on the average of the two (2)
highest paid years of the member prior to the date of
retirement or termination. For purposes of such calculation,
salary or wages shall be computed on the salary or wages upon
which the member' s contribution to the Supplemental System was
computed, as defined in Section 3 . 04 . Notwithstanding that
definition, however, the inclusion of overtime in the two (2)
highest paid years shall be limited in each year to an amount
which is equal to the difference between the member's
annualized pay rate at the time of retirement or termination
and the highest annualized pay rate for the next higher salary
rank.
The benefits provided hereinabove shall not be more than
ninety (90%) per cent of the member' s average monthly salary
or wages as defined in the immediately preceeding paragraph,
reduced by the Base System Benefit.
(C) The minimum pension for a member retiring under Section
7 . 01 (A) (2) for permanent and total disability shall be
eighty-five (85%) per cent of the salary or wages of the
member at the time of disability retirement, reduced by the
Base System Benefit.
(D) In the event that any member eligible for benefits hereunder
shall have terminated his employment after having completed
at least ten (10) years of creditable service but prior to
attaining the age of fifty (50) years and shall elect
hereunder to decline to withdraw his accumulated contributions
in the Supplemental System, then such member shall be entitled
to receive upon attaining the age of fifty (50) years a
monthly pension payable for life in accordance with the
benefits designated in Subsection (B) hereof; provided,
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however, that in the event of the death of a member prior to
having attained the age of fifty (50) years, then the benefits
as contained in this paragraph shall become ineffective and
the estate of such member shall be entitled to all monies
contributed by him into this System together with accumulated
interest on said sum at the rate of three (3%) per cent per
annum computed until the date of payment to the estate of the
member.
(E) Nothing herein contained shall be construed to prevent the
City Manager or the Board from initiating action for the
compulsory retirement of a member, eligible for retirement,
prior to such age, where such member is considered to be unfit
for the proper performance of his duties because of physical
or mental incapacity, and upon certification by the Medical
Board designated by the Board of Trustees pursuant to Section
8, that such person is mentally or physically incapable of
proper performance of duties, such person shall be
automatically retired.
7 .02 Cost of Living Adjustment
(A) In the case of a pensioner or beneficiary who has been
receiving a pension for at least one year under the Base
System or this Supplemental System as of October 1, 1989 or
any subsequent October 1, the amount of pension payable to him
as of such October 1, shall be increased by two and one-half
(2-1/2) per cent of the amount payable to him under the Base
System and this Supplemental System. The amount of the
increase payable from this Supplemental System shall be the
full amount of the increase (including the portion
attributable to any pension payable under the Base System) ,
reduced by any increase actually payable from the Base System.
For purposes of this Section 7 . 02 , the pension commencement
date for a beneficiary receiving a pension as the result of
the death of a retired member who was receiving a pension at
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the time of his death shall be the date on which the retired
member began to receive his pension.
(B) In the case of a pensioner or beneficiary who retires after
October 1, 1988 under the Base System or this Supplemental
System or after October 1 of any subsequent year under this
Supplemental System, and who therefore must wait more than
twelve (12) months for his first increase, the amount of
pension payable to him as of the October 1 next following the
first anniversary of the commencement of his pension shall be
increased by two and one-half (2-1/2%) per cent of the amount
payable to him under the Base System and this Supplemental
System multiplied by a fraction, the numerator of which is the
number of months for which his pension under said Systems has
been paid and the denominator of which is twelve (12) . The
amount of the increase payable from this Supplemental System
shall be the full amount of the increase (including the
portion attributable to any pension payable under the Base
System) , reduced by any increase actually payable from the
Base System.
(C) The provisions of this Section 7 . 02 shall not apply in the
case of a member of the Base System who elects in writing
prior to the earlier of his date of retirement or January 1,
1990 to waive his membership in this Supplemental System in
accordance with the provisions of Section 4 . 01 or 4 . 02 .
7 . 03 Service Connected Death Benefits
If any member shall lose his life or later die within five (5)
years from injuries received while in the discharge of his
duties and shall leave a widow or a child or children or one
or more dependent parent(s) , the Trustees shall authorize and
direct payment of a pension to the widow or a child or
children or dependent parent(s) under the following terms,
conditions and restrictions and at the following rates:
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(A) To the widow, the greater of subparagraph (1) or subparagraph
(2) , reduced by subparagraph (3) as follows:
(1) the pension to which the deceased member would have
been entitled under Section 7 . 01 (B) , determined without regard
to clause (3) thereof, or
(2) eighty-five (85%) per cent of the salary or wages of the
member at the date of his death,
(3) the Base System Benefit.
(B) If there be no surviving widow, or if such widow rcmarrie3 or
until such time as
•
- - - - - - - of a child who 13 a full time
3tudcnt in high school or college) ,
(2) each such child marries or dies, or
(3) a physi ally or mentally handicapped child rccover3.
(B) If there be no surviving widow, or if such widow remarries or
dies, then the benefit set forth in Subsection (A) above shall
be paid in equal portions to each child of the deceased
member. Payment to any such child shall cease at such time
as
(1) the child attains age eighteen (18) (or age twenty-two
(22) in the case of a child who is a full-time student in high
school or college) ,
(2) the child marries or dies, or
(3) the child recovers in the case of a physically or
mentally handicapped child.
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(C) If there are no benefits payable to a child or children, then
the benefit set forth in Subsection (A) above shall be paid
to the dependent parent of the deceased member. If both
parents are dependent, such benefit shall be shared equally.
(D) The beneficiary of a member of the Base System who became
entitled to the service connected death benefit under the
terms of the Base System on or after June 1, 1988 and prior
to the Effective Date, shall be entitled to receive the
service connected death benefit described in this Section 7 . 03
assuming, solely for this purpose, that the Supplemental
System was in effect on and after June 1, 1988 . Payment of
the death benefit shall commence as of the Effective Date and,
to the extent applicable, the Trustees shall authorize and
direct that retroactive payments, calculated in accordance
with the foregoing provisions of this Section 7 . 03, be made
to the appropriate beneficiary as herein before described.
(E) The trusteeship and disbursement of the pension to any child
or children or dependent parent is to be determined by the
Board of Trustees.
(F) A legally adopted child shall have the same rights as a
natural born child, but no pension shall be allowed to any
stepchild or stepchildren of a deceased member.
(G) Pension payments to widows, children and dependent parents
shall not be decreased or reduced due to benefits received by
them under any Workers ' Compensation Law.
7 .04 Non-Service Connected Death Benefits
If any member shall die from causes not attributed to his
duties, and such death shall occur after his having completed
five (5) years of creditable service, or if any such member
shall die subsequent to his having met the requirements for
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retirement under Section 7 . 01 (A) (1) regardless of whether or
not pension payments have commenced, the Trustees shall
authorize and direct payment to the widow and/or child or
children and/or a dependent parent in equal monthly
installments as follows:
(A) To the widow, if she shall have been married to the deceased
member for ten (10) years or more, the amount of the pension
to which the deceased member was entitled or receiving at the
time of death or would have been entitled at the time of death
under Section 7 . 01 of this Supplemental System, for the first
twelve (12) months, and thereafter the greater of subparagraph
(1) or subparagraph (2) , reduced by subparagraph (3) as
follows:
(1) seventy-five (75%) per cent of the pensions payable under
the Base System and this Supplemental System, or
(2) twenty-five (25%) per cent of the average monthly pay
for the two (2) highest paid years, reduced by
(3) the Base System Benefit.
The monthly installments shall continue until the remarriage
or death of the widow. If the widow shall have been married to the
deceased member less than ten (10) years, the benefits as above
provided shall be payable until remarriage or death, but in no case
longer than for the period of the normal life expectancy of the
deceased member at the time of his death, determined in accordance
with the 1979 George B. Buck Mortality Table for males or such
other table as shall be formally adopted by the Board of Trustees.
(B) If the beneficiary of a member of the Base System who was not
eligible to become a member of this Supplemental System is or
becomes entitled to the non-service connected death benefit
20
under the terms of the Base System on or after October 1,
1988, the beneficiary shall be entitled to receive the
non-service connected death benefit described in this Section
7 . 04 . Payment of the death benefit shall commence as of the
Effective Date or following the member's date of death, if
later.
(C) To the child or children or dependent parent(s) , the
provisions of Section 7 . 03 governing the conditions and
restrictions applicable to the administration of children's
or parents' pensions shall apply.
Section 8. Medical Board
The Board of Trustees shall designate a medical board to be
composed of three physicians who shall arrange for and pass upon
all medical examinations required under the provisions of this
Supplemental System, shall investigate all essential statements or
certificates made by or on behalf of a member in connection with
an application for disability or retirement and shall report in
writing to the Board of Trustees its conclusions and
recommendations upon all matters referred to it. The payment for
such services shall be determined by the Board of Trustees.
Section 9 . Compulsory Retirement
On compulsory retirement of a member on act of the Board of
Trustees any such retired member shall have the right to appeal
against such retirement by the Board of Trustees by appealing to
a Court of proper jurisdiction, and said member shall defray his
own expense in his appeal of such compulsory retirement.
Section 10 . Cessation of Pension
The pension provided for herein shall cease upon conviction of a
felony of a member receiving the benefits herein provided and
actual incarceration in a Penitentiary. A pension as provided
herein shall be paid to the wife or children or dependent parent(s)
21
as herein prescribed for a deceased member under this Supplemental
System, until his official release from incarceration, then the
pension will be paid to the pensioner again.
Section 11. Dismissal
Members entitled to a pension shall not forfeit the same upon
dismissal from the department, but shall be retired as herein
prescribed.
Section 12 . Recovering from Disability
In the event a member who has been retired on a pension on account
of permanent and total incapacity regains his health and is found
by the Board of Trustees of this Supplemental System to be in such
physical and mental condition as to meet the requirements of the
Personnel Department for service acceptable to the City, the Board
shall order his pension discontinued, and he shall be ordered to
resume active service in the department from which he was retired
at the same or similar work as that at which he was employed prior
to his disability retirement, or at other work within the limits
of his physical or mental capabilities at a rate of compensation
not less than seventy (70%) per cent of the pay at the time of his
return to active service for the classification occupied by him
prior to his disability retirement. Upon request of the City
Manager, the Board shall review the condition of any member
receiving a pension for disability and shall submit to the City
Manager a report thereon; and if there shall be substantial
evidence that the retired member is capable of performing service
acceptable to the City in the Department from which such member was
retired, he shall be ordered to resume active duties and his
pension shall be discontinued.
Section 13. Computation of Pension Service
13.01 In computing service allowance, creditable service shall
mean all service which is counted as creditable service under the
Base System or under the City of Miami Beach Employees Retirement
22
System as of the member' s date of retirement or termination, all
periods of time of actual work for which wages or salaries were
received by the member in the service of the Fire and Police
Departments, all military service for which employee contributions
are made as provided in Section 19 , and all Accumulated Total
Credit transferred to this Supplemental System in accordance with
Section 4 . 04 . Notwithstanding any provision to the contrary, in
no event shall the same period of service be counted more than once
as creditable service under this Supplemental System.
13.02 Employees who become members of this Supplemental System,
in order to receive credit for service rendered on and after the
Effective Date and prior to their becoming a member, shall make
contributions in the amount such member would have contributed had
he been a member during the period of service for which credit is
being purchased. In order to receive such credit, employees shall
make payment within six (6) months of becoming a member.
Notwithstanding the foregoing, any employee who transfers to the
Base System or this Supplemental System whereby the Accumulated
Total Credit in any other Pension System of the City is transferred
to either the Base System or this System, then and in that event
all of the creditable service time in such other System shall be
considered creditable pension service time as hereinabove provided,
and such employee need make no additional contribution for time
credited.
13.03 The Board of Trustees shall establish a service record of
all employees who may be entitled to participate in the benefits
of this Supplemental System, and shall keep a record thereof.
Section 14. Nonassignability of Pension
No pension provided for herein shall be assignable or subject to
garnishment for debt or to other legal process, and no pension
provided for herein shall be subject to any deductions or
assessments by the City of Miami Beach, Florida, nor shall any
23
benefits hereunder be altered or modified in any respect due to
the fact that any member may be the recipient of any benefits from
any other pension or pension plan; provided, however, Workers'
Compensation benefits paid by the City to a retired member shall
be credited against any pension payments payable on account of
permanent and total disability incurred in the line of duty in the
Police or Fire Department, or in the Unclassified Service as
provided in Section 18 .
Section 15. Duration of Member' s Pension
Pensions granted to retired members shall be paid to them for life
and shall not be revoked nor in any way diminished except as
provided in this Supplemental System, and the payment of the member
to this Fund shall cease upon his retirement and acceptance of a
pension.
Section 16. Assets for Benefits of Members and Beneficiaries
All assets of the Fund shall be held by the Board of Trustees in
trust for use in providing the benefits of the Supplemental System
and paying its expenses not paid directly by the City; provided
that no part of the corpus or income of the Fund shall be used for,
or diverted to, purposes other than for the exclusive benefit of
members or their beneficiaries under the system, prior to the
satisfaction of all liabilities for benefits with respect to them
or for the administrative expenses of the system; and provided
further, that no person shall have any interest in or right to any
part of the earnings of the Fund, or any rights in, or to, any part
of the assets thereof, except as and to the extent expressly
provided in this Supplemental System. In case of termination of
the Supplemental System, or in the event of the discontinuance of
contributions thereunder having the effect of such termination,
the rights of all members of the Supplemental System to bene-
fits accrued to the date of such termination or discontinuance, to
the extent then funded, shall be nonforfeitable.
24
Section 17. Re-examination of Pensions
The Board of Trustees shall have the power to examine into the
facts upon which any pensions are granted under this Supplemental
System, and to ascertain if any pension has been granted or
obtained erroneously, fraudulently, or illegally for any reason.
Said Board shall also be empowered to purge the pension rolls of
any pensions granted under this Supplemental System, if the same
are found to be erroneous, fraudulent or illegal for any reason;
and to reclassify any pensioner who, under this Supplemental
System, is erroneously, improperly or illegally classified.
Section 18. Return of Contribution
Whenever any member in the service of either the Fire or Police
Departments 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 (5) years of
membership in the Department, or by death in active service leaving
no widow, or children or dependent parent(s) surviving him entitled
to pension benefits under this Supplemental System,
such member, or his estate, shall be entitled to the return of all
of the monies he has contributed into this Supplemental System,
together with accumulated interest on said sum, at the rate of
three (3%) per cent per annum, computed until date of payment to
said 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 Supplemental System for a pension as herein
provided for: except that any member of this Supplemental System
who separates from active service with the Fire or Police
Departments to accept an appointment to any office in the
Unclassified Service of the City shall continue to have all the
rights, privileges and responsibilities of this Supplemental System
provided, however, that any member of this Supplemental System who
separates from active service with the Fire or Police Departments
to accept an appointment to any office in the Classified Service
25
of the City shall immediately become a member of the City of Miami
Beach Employees Retirement System and shall receive creditable
service under that System for service which is creditable
hereunder.
Upon becoming a member of said System the Trustees shall transfer
from the Funds of this Supplemental System to the City of Miami
Beach Employees Retirement System an amount equal to three (3)
times the accumulated amount of the member' s contributions,
together with interest thereon to the date of transfer, that were
paid by the employee to this Supplemental System. For purposes of
this Section, monies a member has contributed shall include
picked-up member contributions together with interest thereon.
Section 19 . Military Service
19.01 Any member of the Supplemental System or any probationary
employee in the Fire or Police Department who is absent from the
service of the City because of service in the Armed Forces of the
United States and if he shall have returned to the service of the
City having applied to return while his reemployment rights were
protected by law shall be entitled to preserve all retirement
rights and privileges under this Supplemental System provided that
such member, or such probationary employee after he becomes a
member, shall contribute into the Supplemental System a sum equal
to the amount such member would have contributed had he been a
member during the period of service for which credit is being
purchased, and creditable toward service retirement as in this
Section hereinafter provided. Payment of such contributions shall
be made within six (6) months after discharge from such active
military service.
19 .02 A member who has at least twenty (20) years of creditable
service and who is entitled to receive benefits under the
Supplemental System may contribute an additional amount to the
Supplemental System in order to receive service credit for his
26
years of active military service in the U.S. Army, Navy, Air Force,
Marines or Coast Guard occurring prior to his date of employment
with the City. A member may purchase up to four (4) years of such
service. The price for each such year shall be ten (10%) per cent
of the aggregate of his salary or wages during the twelve (12)
calendar months immediately preceding the date of such purchase,
and such price shall be prorated accordingly if a member' s election
includes a fractional year of service. Any additional benefit
attributable to service purchased under this Section 19 . 02 shall
be determined in accordance with the three (3%) per cent benefit
rate as described in Section 7 . 01 (B) (1) .
Section 20. Severability Clause
If any cluase, section or provision of this Supplemental System
and the remaining portion of said System shall be in force and
cffcct, and Shall be as valid as if such invalid portion thereof
had not been incorporated thercin—
Section 210. Distribution Limitation
Notwithstanding any other provision of this Plan, all distributions
from this Plan shall conform to Section 401 (a) (9) of the Internal
Revenue Code in general and to Section 401 (a) (9) (C) of said Code
in particular, as such Section was amended by the Technical and
Miscellaneous Revenue Act of 1988 .
Section 22-1. Limitations on Benefits
(A) In addition to the other limitations set forth in this
Supplemental System and notwithstanding any other provision
of this Supplemental System, the pension payable under this
Supplemental 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
subparagraphs (F) and (G) of Section 415 (b) (2) of said Code.
27
(B) For purposes of applying the limitations of Section 415 of the
Internal Revenue Code, the term "compensation" shall be
determined by reference to the provisions of subparagraphs (1)
and (2) of Title 26 of the Code of Federal Regulations,
Section 1.415-2 (d) , as modified by subparagraph (10) of said
Regulation.
Section 23,2 . REPEALER.
All ordinances or parts in conflict herewith be and the same are
hereby repealed.
Section 243. SEVERABILITY.
If any section, sentence, clause or phrase of this Ordinance is
held to be invalid or unconstitutional by any court of competent
jurisdiction, then said holding shall in no way affect the validity
of the remaining portion of this Ordinance.
Section 254. EFFECTIVE DATE.
This Ordinance shall take effect on the Effective Date, as
indicated in Section 3 . 07 , which shall mean June 1, 1989 except
that if the City is required to initiate funding prior to October
1, 1989 the effective date shall be October 1, 1989 .
PASSED and ADOPTED this 19th day of April , 1989.
-4( 4 _/ L.
OR
ATTEST:
FSM APPROVED
)2z/ v DEPT I
CITY CLERK �' �� •
1st reading 4/5/89V
2nd reading 4/19/89 41~ 1'
HD/mml
4/13/89
28
4-
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.. FLORIDA 3 3 1 3 9
it
*iINCOR ORATED)*% "VA CA TIONL,AND U. S. A. "
OFFICE OF THE CITY MANAGER CITY HALL
ROB W.PARKINS 1700 CONVENTION CENTER DRIVE
CITY MANAGER TELEPHONE: 673-7010
COMMISSION MEMORANDUM NO.
DATE: April 5, 1989
TO: Mayor Alex D•.e d and
Members o e City Commi •
1"-_
Apr
FROM: Rob W. Par 'ns •
City Manager Vdi/'r
SUBJECT: AN ORDINANCE C'EATING A SPECIAL FUND TO BE KNOWN AS THE
CITY SUPPLEMENTAL PENSION FUND FOR FIREMEN AND POLICEMEN
IN THE CITY OF MIAMI BEACH
The City of Miami Beach has recently completed contract
negotiations with both the International Association of Fire
Fighters, Local 1510, (IAFF) and the Fraternal Order of Police,
William Nichols Lodge, (FOP) . Both contracts have been ratified
by the respective employee unions and will be presented to the City
Commission for adoption.
One of the negotiated provisions of those contracts is a
Supplemental Pension Fund for the firemen and policemen employed
by the City of Miami Beach. This Supplement would provide
retirement benefits which would be in addition to those provided
under the Police and Firemen's Pension Act, City of Miami Beach,
Florida Chapter 23414, Laws of Florida, Special Acts of 1945 .
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the
attached Ordinance creating a special fund to be known as the City
Supplemental Pension Fund for Firemen and Policemen in the City of
Miami Beach.
PFL:me
15
AGENDA
I TEM R-
DATE
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