Loading...
Ordinance 1901ORDINANCE NO. 1901 AN ORDINANCE PROVIDING FOR THE CREATION AND MAINTENANCE OF A RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE CITY OF MIAMI BEACH, FLORIDA. Index ARTICLE 1. Creation and Purpose of System ARTICLE 2. Definitions ARTICLE 3. Membership ARTICLE 4. Creditable Service ARTICLE 5. Benefits Page 1 1 3 3 5.01 Normal Service Retirement Allowance 4 5.02 Early Service Retirement Allowance 5 5.03 Vested Retirement Allowance 6 5.04 Disability Retirement Allowance 6 5.05 Active Service Death Benefits 8 5.06 Death Benefits after Retirement 9 5.07 Optional Benefits 10 5.08 Refund of Accumulated Contributions 11 5.09 Post Retirement Adjustments 12 5.10 Special Guarantee 12 5.11 Return to Active Service 12 ARTICLE 6. Financing 6.01 Assets of Predecessor System 13 6.02 Contributions by Members 14 6.03 Contributions by City ARTICLE 7. Board of Trustees ARTICLE 8. Investments ARTICLE 9. Administration 14 17 9.01 Personnel Director 18 9.02 Chief Finance Officer 18 9.03 City Attorney ARTICLE 10. General 19 ORDINANCE NO. 1901 AN ORDINANCE PROVIDING FOR THE CREATION AND MAINTENANCE OF A RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE CITY OF MIAMI BEACH, FLORIDA. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MIAMI BEACH, FLORIDA: ARTICLE 1. Creation and Purpose of System 1.01 A retirement system is hereby created under and by authority of Chapter 18691, Laws of Florida, Acts of 1937. This system shall be known as the "RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE CITY OF MIAMI BEACH", and shall be hereinafter referred to as the "System" or the "Retirement System". 1.02 The purpose of the Retirement System is to provide retirement and other related benefits for eligible employees of the City and their beneficiaries or dependents. ARTICLE 2. Definitions For purposes of the Retirement System, certain words and phrases shall have the meanings ascribed to them in this article except when the context otherwise requires. The masculine pronoun, wherever used, shall include the feminine. 2.01 "City" or "Employer" means the City of Miami Beach, Florida. 2.02 "City Council" or "Council" means the City Council of the City of Miami Beach, Florida. 2.03 "Board of Trustees" or "Board" means the managing board of the System, as provided for in Article 7. 2.04 "Employee" means any person employed by the City on a regular basis, who is receiving compensation from the City for personal services, and who is within a group or classification of employees designated by the Board of Trustees as eligible for membership in the System, but in any event exclusive of members of the City Council and also exclusive of the following groups and classifications: (a) Persons whose services are compensated on a contractual basis. (b) Persons employed on a provisional, original probationary or other temporary basis. (c) Members of boards or commissions, officers, or employees receiving no salary or a nominal salary on a fee basis. (d) Persons whose employment by the City commenced on or after January 28, 1970, and after having attained age 55. (e) Members of the City Pension Fund for Firemen and Policemen in the City of Miami Beach. (f) Persons whose regular employment with the City is for less than thirty (30) hours per week. 2.05 "Member" means any Employee included in the membership of the System, as provided in Article 3. A Member who retires shall be deemed a retired member or a retirant. 2.06 "Creditable Service" means service credited to a Member under the System, as provided in Article 4. 2.07 "Accumulated Employee Contributions" means the required contributions paid by any Member as provided in Section 6.02 or credited to the Member pursuant to Section 6.01(b), together with any interest allowed thereon under this System until such time as the Employee's service with the City is terminated at the rate, compounded annually, as determined by the Board from time to time. 2.08 "Earnings" means the actual amount of salary or wages received by a Member for personal services rendered as an Employee. 2.09 "Final Average Monthly Earnings" means one -twelfth of the average annual earnings of a Member during the two highest paid years of his creditable service. 2.10 "Beneficiary" means the surviving person or persons designated as such by a Member or Retirant in the last written designation on file with the Board in accordance with Section 5.08(g); in the absence of such survivor or such designation, it means the estate of the deceased Member or Retirant, as the case may be. 2.11 "Regular interest" means interest at the rate or rates determined by the Board of Trustees as provided in Section 7.06(d). 2.12 "Actuarial Equivalent" means equivalent when computed at regular interest on the basis of the mortality tables last adopted by the Board of Trustees. 2.13 "Retirant" means a person in receipt of retirement allowance payments under the System on the basis of his service as an Employee. 2.14 "Retirement allowance" means monthly payments under the System to a Retirant during his lifetime; monthly payments shall be due as of the first day of each calendar month and shall cease after the payment as of the first day of the month in which the Retirant's death occurs. 2.15 "Pensioner" means the dependent beneficiary of a Member or Retirant in receipt of a pension under the System as the result of the death of said Member or Retirant. 2.16 "Pension" means the monthly amount payable to a Pensioner under the System; the pension shall be due as of the first day of the calendar month next following the death of the Member or Retirant and shall cease after the payment due on the first day of the month in which the Pensioner ceases to be entitled thereto according to the provisions of this Ordinance. 2.17 "Physical Examiners" mean the physicians provided for in Section 7.06 (j) . -2- 2.18 "Predecessor system" means the Retirement System governed by Ordinance No. 845 as in effect prior to the adoption of this Ordinance. ARTICLE 3. Membership 3.01 Every person who on the effective date of this Ordinance was a Retirant or Pensioner under the predecessor system shall automatically become on such date a Retirant or Pensioner, as the case may be, under this System, and shall continue to receive under this System the benefits paid under the predecessor system. Every person who on the effective date of this Ordinance was a participant under the predecessor system shall automatically become on such date a Member of this Retirement System. Any written designation of beneficiary or dependent beneficiary in effect under the predecessor system on the effective date of this Ordinance shall continue to be in effect under this System unless subsequently changed or revoked by the Member or Retirant in writing in accordance with the provisions of this Ordinance. 3.02 Any person who becomes an Employee, as herein defined, on or after the effective date of this Ordinance shall be a Member of the System as a condition of his employment as of the date he becomes an Employee. 3.03 Any person in the employ of the City on the effective date of this Ordinance who became an Employee as herein defined prior thereto but was not, as of such date, a participant of the predecessor system established by Ordinance No. 845 because of exclusions of certain groups from membership under the provisions of said Ordinance shall become a Member of the System on the effective date of this Ordinance. 3.04 An Employee shall cease to be a Member if he dies, retires, or ceases to be an employee for any other reason. ARTICLE 4. Creditable Service 4.01 Each Employee who becomes a Member of the System on the effective date of this Ordinance shall be credited under this System with creditable service to which he was credited as of such date under the predecessor system. Each Member of the System shall be credited with service rendered after the effective date of this Ordinance with respect to which he has made contributions to the System in accordance with Article 6. The creditable service of a Member shall not include service rendered prior to the date as of which he elected to receive his Accumulated Employee Contri- butions in accordance with Section 5.08(a). 4.02 An Employee who becomes a Member as of the effective date of this Ordinance pursuant to Section 3.03 may, at his own option, elect to acquire additional creditable service in respect of his continuous service in the employ of the City for which he received compensation and which was rendered immediately prior to the effective date of this Ordinance; provided that, in order to acquire such additional creditable service, such a Member must pay into the System, within the first year of his membership, contri- butions at the rate of six per centum (6%) of his compensation for the period immediately prior to the effective date of this Ordinance for which credit is acquired with interest at the rate per annum, compounded annually, being allowed on contributions of Members at the time such election is made; and further provided that, if less than all such years of his service is claimed as creditable service, only the part of such service rendered immediately prior to the effective date of this Ordinance shall be claimed. Any Employee who becomes a Member of the System after the effective date of this Ordinance may, at his own option, elect to acquire additional creditable service in respect of the period of his continuous service in the employ of the City as a provisional or probationary employee for which he received compensation and which was rendered immediately prior to the date he became a Member; provided that, to acquire such additional creditable service, such Member must pay to the System, within his first year of membership, the contributions at the rate of six per centum (6%), without interest, that would have been payable by him had he been a Member during such period. 4.03 Each Member shall be entitled to acquire additional creditable service for his period or periods of service with the Armed Forces of the United States while on leave of absence granted by the City for such military service by making the contributions that he would have been required to pay on the basis of his salary in effect at the beginning of such period if he had not been on a leave of absence with interest at the rate per annum, compounded annually, being allowed on contributions of Members at the time such election is made, subject to such conditions and limitations as are required by law or established by the Board under rules uniformly applicable to all persons similarly situated. ARTICLE 5. Benefits 5.01 Normal Service Retirement Allowance (a) The normal retirement date of a Member shall be the first day of the calendar month coincident with or next following the date as of which he first meets any one of the following combinations of attained age and years of creditable service. YEARS OF ATTAINED CREDITABLE AGE SERVICE 55 20 56 17 57 14 58 11 59 8 60 5 Any Member may retire on a normal service retirement allowance upon the termination of his employment on or after his normal retirement date. Any Member, other than a person elected or appointed by the City Council, shall be retired automatically no later than the first day of the month next following the attainment of age 65; provided that, upon recommendation of the department head, and approval of the City Manager in exceptional cases, and for substantial reasons, such retirement may be deferred by the Board for periods not to exceed one year at any one time, but not beyond the 75th anniversary of the Member's birth; and provided further, that any Member, so deferred, shall each year submit to, and satisfactorily pass, a physical examination by the City Physician. After any such Member is retired by the Board, he shall have no right of appeal from the decision of the Board. -4- (b) Notwithstanding the provisions of Paragraph (a) of this Section 5.01, any lifeguard in the Beach Patrol and any policeman or fireman who is a Member of this System, not being a member of the City Pension Fund for Policemen and Firemen, may also retire on a normal service retirement allowance, on the first day of the calendar month coincident with or next following the date as of which he completed twenty (20) years of creditable service or attained fifty (50) years of age, whichever is later. Any such Member shall be retired automatically no later than the first day of the month following the attainment of: Age 55, in the case of Lifeguards I and Lifeguards II; Age 60, in the case of Lifeguard Lieutenants and Lifeguard Captains; and Age 65, in the case of policemen and firemen. (c) The normal service retirement allowance payable upon the retirement of a Member on or after his normal retirement date shall, if such retirement occurs on or after July 1, 1969, be equal to two and three-quarters per centum (2-3/4%) of his final average monthly earnings multiplied by the number of his years of creditable service not in excess of twenty-five (25) plus two per centum (2%) of such final average monthly earnings multiplied by the number of his years of creditable service in excess of twenty- five (25), provided that such allowance shall not exceed eighty per centum (80%) of his final average monthly earnings. (d) If the Accumulated Employee Contributions credited to a Member are less than the amount of such contributions which would have been credited to him if he had contributed at the rate of six per centum (6%) of his earnings from the time he became a Member under the predecessor system governed by the provisions of Ordinance No. 845, the amount computed as a normal service retirement allowance in accordance with Paragraph (c) of this Section 5.01 shall be reduced by an amount which is the actuarial equivalent of the lump sum amount required to be added to his Accumulated Employee Contributions to bring such contributions to the level which he would have obtained by contributions at the rate of six per centum (6%) of his earnings from the date of his membership under the predecessor system governed by Ordinance No. 845. 5.02 Early Service Retirement Allowance (a) Any Member may retire prior to his normal retirement date on an early service retirement allowance on the first day of the calendar month next following receipt of written application therefor by the Board, provided that, at the time of such retirement, he has attained fifty (50) years of age and the sum of his attained age (last birthday) and the number of his full years of creditable service is not less than seventy-five (75). (b) The early service retirement allowance shall be an immediate allowance commencing as of the date of the Member's retirement and shall be the actuarial equivalent of a deferred allowance commencing on the first day of the calendar month coincident with or next following the date as of which he attains age 55 and computed in accordance with Section 5.01 on the basis of the Member's final average monthly earnings and creditable service as of the date of his retirement, including the adjustment, if any, required in accordance with Paragraph (d) of Section 5.01. -5- 5.03 Vested Retirement Allowance (a) Any Member whose service with the City is terminated, voluntarily or involuntarily, prior to the date as of which he would first become eligible for retirement on a normal or early service retirement allowance but after having completed at least ten (10) years of creditable service or, if the Member is within five (5) years of the date as of which he would be eligible for retirement on a normal or early service retirement allowance but for his termination, after having completed at least five (5) years of creditable service shall be entitled, in lieu of a refund of his Accumulated Employee Contributions, to apply for a vested retirement allowance. (b) Any Member with five (5) or more years of creditable service, who is separated from service with the City without cause by the operation of law or by the transfer of a City function to any political subdivision of the State of Florida or of any other State, shall be entitled, in lieu of a refund of his Accumulated Employee Contributions, to apply for a vested retirement allowance. (c) The vested retirement allowance shall be a deferred allowance commencing on the earliest date as of which a Member with his years of creditable service would first be eligible for retirement on a normal or early service retirement allowance and shall be equal to the amount computed in accordance with this Article 5 as a normal or early service retirement allowance on the basis of the Member's final average monthly earnings and creditable service at the time of his termination and his age as of the date on which payment of the allowance commences. 5.04 Disability Retirement Allowance (a) Upon the written application of a Member or the City Manager, a Member who has five (5) or more years of creditable service may be retired by the Board on an ordinary disability retirement allowance on the first day of a calendar month not less than thirty (30) nor more than ninety (90) days next following the filing of such application; provided that the Physical Examiners, after a medical examination of such Member, shall certify that he is totally incapacitated, mentally or physically, for the further performance of duty, that such incapacity is not the result of habitual use of narcotics or alcohol, misconduct, service in the Armed Forces, self-inflicted injury or disability sustained through other employment, that such incapacity is likely to be permanent and that such Member should be retired. (b) Upon the written application of a Member or the City Manager, any Member who has been totally and permanently incapacitated for the performance of his duty as the natural and proximate result of an accident occurring while in the actual performance of duty at some definite time and place, without wilful negligence on his part, may be retired by the Board on a service -connected disability retirement allowance, and not on an ordinary disability retirement allowance, on the first day of a calendar month not less than thirty (30) nor more than ninety (90) days next following the execution and filing of such application; provided that the application is filed within six (6) years from the time of said accident, and that the Physical Examiners, after a medical examination of the Member, shall certify that he is totally incapacitated, mentally or physically for the further performance of duty, that such incapacity is likely to be permanent and that he should be retired. -6- (c) The disability retirement allowance payable to a Member retiring under the provisions of this Section 5.04 shall be an amount computed as a normal service retirement allowance in accordance with Section 5.01 on the basis of the Member's final average monthly earnings and creditable service at the time of disability retirement; provided that the amount of such allowance shall be modified in accordance with the following Paragraphs (d) and (e) if the Member has not reached his normal retirement date at the time of his disability retirement. (d) The allowance payable to a disability Retirant prior to his normal retirement date shall not be less than thirty-five per centum (35%) of his final average monthly earnings as defined in Section 2.09 as of the date of his disability if an ordinary disability retirement allowance is payable, and not less than seventy-five per centum (75%) of such final average monthly earnings of a service -connected disability retirement allowance is payable. The allowance payable to a disability Retirant after his normal retirement date shall be an amount computed as a normal service retirement allowance on the basis of the final average monthly earnings and number of years of creditable service he would have had if he had continued in service without interruption until his normal retirement date at the maximum rate of pay in effect at the time of his retirement for the classification at which he retired, provided that such allowance shall not exceed the amount payable to him as a disability retirement allowance prior to his normal retirement date. "Normal retirement date" as used in this Section 5.04 means the date determined in accordance with Section 5.01(a) on the assumption that the period of disability retirement is deemed to be active service as an Employee for this purpose. (e) Any amounts which may be paid or payable on account ofdisability to the Member or his dependents under the Workmen's Compensation Act, exclusive of fixed statutory payments for the loss of any bodily member, shall be offset against and payable in lieu of that part of his disability retirement allowance provided under the System by contributions of the City on account of the same disability, in such equitable manner as the Board shall determine. (f) During the period of his retirement on a disability retirement allowance prior to his normal retirement date, the Retirant's annual earnings from employment (including self- employment) prior to his normal retirement date shall not exceed an amount which, when added to the disability retirement allowance payments received by him, would result in a combined income of one hundred twenty-five per centum (125%) of the maximum current salary for the classification from which he was retired if he is receiving a service -connected disability retirement allowance, or one hundred per centum (100%) of such maximum salary if he is receiving an ordinary disability retirement allowance; otherwise payments of the disability retirement allowance shall be withheld to the extent that the combined income exceeds the maximum permissible amount. The Member must agree at the time of his disability retirement, before any benefits are paid to him under the System, to furnish annually to the Board, before May 1 of each year, a copy of his Federal Income Tax return for the prior year and any other information which the Board may require. When the Retirant's combined income exceeds the maximum permissible amount determined on the basis of the maximum salary as of January 1 of the prior year for the classification from which he was retired, future payments of his disability retirement allowance shall be withheld until the total sum withheld equals the amount by which his combined income for the prior year exceeded the maximum permissible amount. Restrictions on earnings shall not be applicable after the Retirant's normal retirement date. -7- (g) Any Retirant who is receiving a disability retirement allowance shall be subject, prior to his normal retirement date, to re-examination by the Physical Examiners either upon request of the Retirant, the Board or the City Manager, and the Physical Examiners shall report their conclusions as to the continuance of the incapacity. In the event that such disability shall not continue to incapacitate the Retirant for service acceptable to the City, in accordance with requirements of the Personnel Department, the City Manager may require that such Retirant be returned to active duty at work which is the same or of similar nature to the work he performed prior to his incapacity, or returned to other work within the limits of his mental or physical capacities, at a rate of compensation not less than seventy per centum (70%) of the pay to which he would have been entitled at the time of his return to active service for the grade of service occupied by the Retirant prior to his incapacity. Upon any such return to active duty such Retirant shall be restored to service as a Member, his disability retirement allowance shall be terminated, he shall resume contributing to the System according to the compensation thereafter payable to him, and the period during which he was receiving his disability retirement allowance shall be included in his creditable service for all purposes of the System. (h) If any Retirant in receipt of a disability retirement allowance is found by the Physical Examiners, prior to his normal retirement date, to be no longer incapacitated but is not restored to service as a Member because of his own refusal to accept employment offered to him in accordance with the foregoing paragraph, his disability retirement allowance shall be terminated, and the period during which he was receiving a disability retirement allowance shall in no event be added to the creditable service he had acquired prior to his incapacity. 5.05 Active Service Death Benefits (a) Upon receipt of evidence, satisfactory to the Board, of the death of a Member who has three (3) or more years of creditable service, a monthly pension shall be paid to the surviving spouse of the deceased Member, provided that said spouse had been married to the Member for at least one (1) year immediately prior to the date of his death; if there is no surviving spouse entitled to such pension, the pension shall be paid to the dependent child or children of the deceased Member, divided in such manner as the Board in its discretion shall determine, to continue until every such child dies or attains twenty-one (21) years of age. (b) The monthly pension payable to the person or persons entitled thereto in accordance with the foregoing Paragraph (a) shall be equal to one and three -eights per centum (1-3/8%) of the deceased Member's final average monthly earnings multiplied by the number of his years of Creditable service not exceeding 25, plus one per centum (1%) of such earnings multiplied by the number of his years of creditable service in excess of 25; provided that such pension shall not be less than thirty per centum (30%)nor more than forty per centum (40%) of his final average monthly earnings; further provided, that if the Accumulated Employee Contributions credited to the Member at the time of his death are less than would have been credited to him if he had contributed at the rate of six per centum (6%) of his earnings from the time he became a participant under the predecessor system governed by the provisions of Ordinance No. 845, the pension computed in accordance with the foregoing provisions of this paragraph shall be reduced by half of the amount by which the retirement allowance of the deceased Member would have been reduced if he were retiring on a normal or early service retirement allowance as of the date of his death; and -8- further provided, that, if the pension is payable to a spouse who is more than fifteen (15) years younger than the Member, the pension shall be reduced to an amount which is the actuarial equivalent of the pension payable to the spouse if said spouse were exactly fifteen (15) years younger than the deceased Member. In the event of the death of the spouse after pension payments have commenced, a pension computed in accordance with the foregoing sentence but prior to any reduction because of the difference in the ages of the deceased Member and the surviving spouse shall be paid to the dependent child or children of the deceased Member under twenty-one (21) years of age, divided in such manner as the Board in its discretion shall determine, until every such child dies or attains twenty-one (21) years of age. (c) Under no circumstances shall any surviving spouse of a deceased Member or Retirant receive from the System more than one pension under either the provisions of this Section 5.05 or the following Section 5.06 or because of the simultaneous effect of both of these sections. 5.06 Death Benefits after Retirement (a) Upon receipt of evidence, satisfactory to the Board, of the death of a Retirant, a monthly pension shall be payable to the surviving spouse of the deceased Retirant, provided that the spouse had been married to the Retirant on the date of his retirement or termination of service, whichever was first, and for at least one (1) year prior to such date; and further provided, that if the Retirant had elected an option in accordance with Section 5.07 which was in effect at the time of his death, monthly benefits shall be continued after his death, in lieu of benefits under this Section 5.06, in accordance with the option. (b) The monthly pension payable to the surviving spouse of a deceased Retirant pursuant to the foregoing paragraph of this Section 5.06 shall be equal to fifty per centum (50%)of the retirement allowance which would have been payable to the deceased Retirant if he had been alive at the time of the monthly payment; provided, that, if the surviving spouse is more than fifteen (15) years younger than the deceased Retirant, such monthly pension shall be reduced to an amount which is the actuarial equivalent of such pension for a spouse exactly fifteen (15) years younger than the deceased Retirant. (c) If any such deceased Retirant is not survived by a spouse entitled to a pension in accordance with the foregoing paragraphs of this Section 5.06 or if the death of such a spouse occurs after pension payments have commenced in accordance with the foregoing paragraph, the pension which would otherwise have been payable to a- surviving spouse eligible therefor and not more than fifteen (15) years younger than the deceased Retirant shall be payable to the dependent child or children of the said deceased Retirant, if any, divided in such manner as the Board in its discretion shall determine, to continue until every such child dies or attains twenty-one (21) years of age; provided that only children who were dependent beneficiaries of the Retirant on the date of his retirement or termination of service, whichever was first, shall be eligible for a pension under this paragraph. (d) Anything in this Section 5.06 to the contrary notwith- standing, in the event that an optional benefit had been elected by a Retirant in accordance with Section 5.07 and such election is in effect at the time of his death, monthly benefits, if any, shall be payable after his death to the person designated as the contingent -9- annuitant in accordance with the optional election and no benefits shall be payable as a result of the death of the Retirant under this Section 5.06. 5.07 Optional Benefits (a) Subject to the applicable provisions of this Section 5.07, a Member or former Member may, by written notice received by the Board prior to the date of commencement of his retirement allowance, elect to convert his retirement allowance, provided that said allowance is not a disability retirement allowance, into an optional benefit which is the actuarial equivalent of his retirement allowance in accordance with one of the options named below. If such notice is received by the Board not less than thirty (30) days prior to the date of commencement of his retirement allowance, the election of the optional benefit shall become effective on the date his retirement allowance commences. If such election is received by the Board at any later date it shall become effective thirty (30) days after the date his retirement allowance commences. Option 1. A reduced retirement allowance payable during the Member's life, with the provision that after his death it shall be paid during the life of, and to, the contingent annuitant nominated by him by written designation duly acknowledged and filed with the Board when he elected the option; or Option 2. A reduced retirement allowance payable during the Member's life, with the provision that after his death an allowance at two thirds (2/3) the rate of his reduced allowance shall be paid during the life of, and to, the contingent annuitant nominated by him by written designation duly acknowledged and filed with the Board when he elected the option. A Member may designate as the contingent annuitant under an option his spouse or a minor child or any other person who is shown, on the basis of evidence satisfactory to the Board, to be dependent upon or receiving substantial support from the Member; provided, however, if the contingent annuitant is a minor child, the retirement allowance shall not be payable under the option after the death of the member after the minor child attains twenty-one (21) years of age. (b) If the person designated by the Member as the contingent annuitant under an option is his spouse to whom he was married on the date of his retirement or termination of service, whichever was first, and for at least one (1) year prior to such date, the monthly benefits payable under the option to the Member and the surviving contingent annuitant shall be the actuarial equivalent of the benefits which would have been payable without the optional election as a retirement allowance to the Member after his retirement and as a pension after his death to his surviving spouse in accordance with Section 5.06; otherwise, the monthly benefits payable under the option shall be the actuarial equivalent of the retirement allowance payable only to the Member after his retirement prior to any optional election. (c) The election of an optional benefit may not be revoked or changed by the Member but, if the Member or the contingent annuitant designated under the option dies prior to the date the election of the option becomes effective, the election shall thereby be revoked. -10- 5.08 Refund of Accumulated Contributions (a) A Member may elect, upon ceasing to be an Employee for any cause other than retirement or death, to receive in one sum the Accumulated Employee Contributions credited to him. Upon acceptance of such payment, all creditable service shall be cancelled and such creditable service shall not be reinstated upon his becoming a Member again at a subsequent date. (b) Upon receipt of evidence, satisfactory to the Board, of the death of a Member prior to the commencement of his retirement allowance, with no surviving spouse or dependent children entitled to receive a pension as provided in Section 5.05, the amount of his Accumulated Employee Contributions at the time of his death shall be payable in one sum to his designated beneficiary if living, otherwise to such Member's estate. (c) Upon receipt of evidence, satisfactory to the Board, of the death of a Retirant who is not survived by a spouse or dependent children entitled to a pension in accordance with Section 5.06, provided he has not elected an optional benefit that has become effective, any excess of his Accumulated Employee Contributions at retirement over the sum of the retirement allowance payments received shall be paid in one sum to his designated beneficiary if living, otherwise to such Member's estate. (d) Upon receipt of proof, satisfactory to the Board, of the death of the survivor of a Retirant and the contingent annuitant under an option, if an option has been elected and has become effective, any excess of the Retirant's Accumulated Employee Contributions at the time of his retirement over the sum of the benefit payments received shall be paid to the Retirant's beneficiary if living, otherwise to the estate of the survivor of such Retirant and contingent annuitant. (e) Upon receipt of proof, satisfactory to the Board, that no further benefits are payable as the result of the death of a Member prior to the commencement of any retirement allowance, the excess, if any, of the Accumulated Employee Contributions at the time of his death over the pension payments received by the Member's spouse and his dependent children shall be paid in a single sum to the Member's designated beneficiary if living, otherwise to his estate. (f) Upon receipt of proof, satisfactory to the Board, that no further benefits are payable as the result of the death of a Fetirant, the excess of his Accumulated Employee Contributions at retirement over benefit payments received by the Retirant, his spouse and dependent children shall be paid in one sum to the Retirant's designated beneficiary if living, otherwise to his estate. (g) A Member's beneficiary for receipt of the single sum payments in accordance with this Section 5.08 must have been designated by him in writing and duly acknowledged. A Member may designate more than one person as his beneficiary for this purpose, provided that he specifies the manner in which the payment is to be allocated, and he may designate alternate beneficiaries with a specified order of priorities for entitlement to single sum payments in the event of death. A Member may change his beneficiary or beneficiaries by similar written designation. A designation, revocation or change of the contingent annuitant under an optional benefit may be made only as provided in Section 5.07. -11- 5.09 Post Retirement Adjustments (a) The benefits payable to Retirants and Pensioners on the effective date of this Ordinance and the benefits commencing in accordance with this Ordinance on or after such date shall be continued without change except as increased in accordance with this Section 5.09. (b) "Improvement Factor" for the purpose of this Section 5.09 means an increase of one and one-half per centum (1-1/2%) per annum in retirement allowances or pensions for each year commencing on October 1 following the completion of one full year after the commencement date of the retirement allowance or, if applicable to pensions payable as the result of the death of a Member prior to his retirement, one full year after the commencement date of the pension. The Improvement Factor shall not be compounded, and shall be applied to the retirement allowance or pension payable as of the effective date of this Ordinance with respect to benefits which commenced prior to that date, and to the retirement allowance or pension initially payable as the result of the retirement, termination or death of a Member, whichever is applicable, with respect to benefits which commenced on or after the effective date of this Ordinance. (c) The Improvement Factor shall be applied automatically as of each October 1, with respect to retirement allowances payable for more than one year as of such time. (d) Upon the death of a Retirant, the pension payable thereafter to his dependent beneficiary shall be based on the retirement allowance payable as of the date of such death, including the benefit improvements granted in accordance with this Section 5.09; however, on each October 1 subsequent to such death the Improvement Factor shall be applied to the amount which would have been payable as a pension prior to any post retirement adjustments made in accordance with this Section 5.09. 5.10 Special Guarantee Anything herein to the contrary notwithstanding, the retirement allowance of any person who was participating in the predecessor system on the effective date of this Ordinance and became a Member of this System on such date shall not be less, if he continues as a Member of the System without interruption until his retirement, than would have been obtained under the predecessor system if the predecessor system had been continued without change; provided, however, post retirement adjustments provided in the predecessor Ordinance No. 845 shall not be granted after the effective date of this Ordinance. 5.11 Return to Active Service (a) If a former Member who is entitled to a vested retirement allowance not yet payable returns to service with the City as an Employee before such allowance has become payable, he shall again become a Member of the System and he shall contribute to the System at the rate required, pursuant to Section 6.02, of Employees who become Members for the first time. Credited service rendered before and after his return to service shall be considered for the purpose of determining his entitlement to a normal or early service retirement allowance; provided, in the event of his subsequent termination of employment for reasons other than death or retirement, only credited service rendered after his return to service shall be considered for the purpose of determining his entitlement to a vested retirement allowance with respect to service rendered after his return. Upon subsequent retirement, his retirement allowance shall be equal to the sum of the amounts computed on the basis of the final average monthly earnings and creditable service with respect to each period of continuous service as an Employee; provided that the retirement allowance shall not exceed the retirement allowance which would have been payable if his credited service had been one period of continuous service. (b) Should a Retirant, other than a disability Retirant restored to service in accordance with Section 5.04(g), be employed by the City as an Employee, his retirement allowance shall cease, he shall again become a Member of the System, and he shall contribute thereafter at the rate then required of Employees becoming Members for the first time. An amount equal to the excess, if any, of his Accumulated Employee Contributions at the time of his retirement over the amount of retirement allowance payments he received shall be credited to him as Accumulated Employee Contributions as of the date he again became a Member. Credited service rendered before and after his return to service shall be considered for the purpose of determining his entitlement to a normal or early service retirement allowance upon subsequent retirement. Upon subsequent retirement, his retirement allowance shall be equal to the sum of the retirement allowance payable to him during his previous retirement plus the amount computed as a retirement allowance on the basis of his final average monthly earnings and credited service for the period after his last return; provided that the total retirement allowance shall not exceed the retirement allowance which would have been payable if all years of his credited service had been a continuous period. If an option had been elected and in effect at the time of his return to service, the option shall continue to be in effect after his return to service with respect to the retirement allowance payable prior to his return. (c) Should a Pensioner be employed by the City in any capacity for which regular compensation is paid, the Pension shall cease to be paid to said Pensioner for the period of such employment, and such person shall be subject to the provisions of this Ordinance as any other person employed by the City. Upon termination of such employment, such person shall elect to receive either the benefit to which he was previously entitled as a Pensioner if still eligible therefor or the benefit, if any, to which he is otherwise entitled on the basis of his membership in the System. (d) The return of a disability Retirant to employment with the City prior to his normal retirement date in accordance with Section 5.04(g) shall be governed by said Section 5.04(g). Return of such a person to employment with the City after his normal retirement date, as defined in Section 5.04, or after the date as of which he ceased to be entitled to a disability retirement allowance pursuant to Section 5.04(h) shall be governed by the provisions of Paragraph (a) or (b) of this Section 5.11, whichever is applicable at the time of such return. ARTICLE 6. Financing 6.01 Assets of Predecessor System (a) All moneys, investments and assets of the predecessor system as of the effective date of this Ordinance shall become assets of this System as of such date. (b) The amount credited to each participant of the predecessor system as "Accumulated Employee Normal Contributions" as of the effective date of this Ordinance shall be credited to him under this System on such date as Accumulated Employee Contributions. 6.02 Contributions by Members Each Member shall contribute to the System six per centum (6%) of his earnings throughout his service as an Employee; provided, that, any Member who was contributing five per centum (5%) of his earnings to the predecessor system as of the effective date of this Ordinance may continue to contribute at such rate to this System during his continuous service as an Employee subsequent to such date. 6.03 Contributions by City (a) It is the intent of this Ordinance that the City contribute to the System 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 System. In addition, administrative expenses shall be paid by the City. (b) An actuarial investigation of the System shall be made at least once every three (3) years 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 System 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 System 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 contribution rate". The actuary shall recommend on the basis of each valuation a normal contribution rate and an accrued liability 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. ARTICLE 7. Board of Trustees 7.01 The System created by this Ordinance shall be construed as a trust and shall be administered by a Board of Trustees. The Board shall have the general responsibility for the proper operation and management of the System and for making effective the provisions of this Ordinance. 7.02 The Board shall consist of seven (7) persons, each of whom shall be designated as a trustee, as follows: -14- (a) City Manager; (b) Chief Finance Officer; (c) Two (2) members of the City Council elected by the City Council; and (d) Three (3) Members or Retirants of the System elected from time to time by Members and Retirants, with one such trustee elected from each of the following groups: Group 1. Members of the System regularly employed in the Police and Fire Departments or in the Lifeguards, and Retirants. Group 2. Members of the System who are regularly employed in clerical and executive positions. Group 3. All other Members of the System. In determining the classification of any Member in the above groups, the decision of the Council shall be final. The basis of classification shall be that a Member belongs in the group through which he derives his eligibility for membership in the System. 7.03 Members of the City Council serving on the Board of Trustees shall serve at the pleasure of the Council and only during their incumbency in office. The City Manager and Chief Finance Officer of the City shall serve on the Board of Trustees only during their incumbency as such. The first Board of Trustees under this Ordinance shall consist of the same trustees as constitute the Board of the superseded System governed by Ordinance No. 845. The terms of the three (3) trustees elected by the membership of the System shall expire at the same time that their terms expire under Ordinance No. 845; as each such trustee's term expires, an election shall be held within the group represented by such trustee to select a trustee for a three (3) year term. If a vacancy occurs prior to the expiration of the term, the vacancy shall be filled for the unexpired part of term in the same manner as it was previously filled. 7.04 Each trustee shall take an oath of office within ten (10) days after his election or appointment. A trustee shall serve without compensation but shall be reimbursed for any expenses incurred as the result of service as a trustee. 7.05 The Board shall elect from its membership a Chairman and a Vice Chairman; the Chief Finance Officer of the City shall be Secretary of the Board. Each trustee shall be entitled to one (1) vote, and four (4) concurring votes shall be necessary for a decision by the trustees at any meeting of the Board. 7.06 The Board shall have, in addition to all other powers and duties arising out of this Ordinance not otherwise specifically reserved or delegated to others, the following specific powers and duties: (a) Hold regular meetings at least quarterly in each year and special meetings at such times as a majority of the Board or the Chairman may deem necessary. -15- (b) Establish rules and regulations to implement the provisions of this Ordinance, and formulate policy for the proper administration of the System and the transaction of its business. (c) Consider and pass on all applications for retirement and other benefits, authorize the granting of all retirement allowances, pensions and lump sum settlements, and suspend any payment or payments, all in accordance with the provisions of this Ordinance. (d) Adopt from time to time service and mortality tables and the rate of regular interest for use in actuarial calculations in connection with the System. (e) Submit to the City Manager on or before July 1 of each year an estimate of the amount of appropriation required for the purposes of the System for the following fiscal year. (f) Recommend to the City Council the employment of such actuarial, legal or investment counsel or specialized technical assistance as may be required for the efficient operation of the System; and prepare and submit to the City Manager, prior to the beginning of each fiscal year, a budget of the operating expenses for such year. (g) Maintain accounts and records showing the fiscal transactions of the System and keep in convenient form such data as may be necessary for the actuarial valuations of the System; require from each person covered under the System such information as shall be necessary for the proper operation of the System; require the maintenance of adequate accounting records which shall at all times reflect the financial condition of the System. (h) Provide for the receipt of all payments made to the System and records thereof, and cause them to be deposited immediately with the Chief Finance Officer of the City. (i) Keep a permanent record of all proceedings of the Board which shall be available for examination by any Member, Retirant or Pensioner, or by any Officer of the City. (j) Designate for specified periods, or as occasion may require, three (3) physicians who are not eligible for membership in the System as Physical Examiners; such Physical Examiners shall arrange for, and conduct, all physical and mental examinations required under this ordinance, shall investigate all essential statements and certificates in connection with applications for disability retirement, and shall report in writing to the Board their conclusions and recommendations upon all matters referred to them. (k) Be the legal custodian of all cash and securities of the System, invest and reinvest all cash not required to meet current disbursements in securities; and subject to the limitations of this Ordinance, the Board shall have full power to hold, purchase, sell, assign, transfer and dispose of any of the securities and investments as well as the proceeds of such investments. (1) Provide for certification on its behalf of all warrants issued in accordance with actions of the Board authorizing payments for benefits, expenses and investments out of funds belonging to the System, and provide for certification on its behalf of all amounts required by the System to be levied as taxes by the City. -16- (m) Cause a general investigation to be made by a Consulting Actuary, at least once every three (3) years, and cause recommendations to be furnished as a result of such investigation as to the actuarial tables and rates of contributions to be used. (n) Cause an audit of the affairs of the System to be made annually, with interim quarterly reports by an independent Certified Public Accountant, and submit a copy thereof to the City Manager as soon as possible after the end of each fiscal year. (o) Accept any gift, grant or bequest of any money or securities under the terms designated by the grantor, or, if no special purpose or allocation is specified, for credit to the funds of the System. (p) Make available to Members, Retirants and Pensioners a financial statement including a summary of the report of the Certified Public Accountant, and issue to each Member, as soon as practicable following the close of each fiscal year, an individual statement showing the Accumulated Employee Contributions standing to his credit. (q) Require the preparation of an annual report as of the close of each fiscal year for submission to the City Council; said report shall embody, among other things, a financial balance sheet and a statement of receipts and disbursements for the fiscal year, schedules of acquisitions and sales or exchanges of investments, a statement of investments owned at the close of the fiscal year and other pertinent financial and operating data. ARTICLE 8. Investments 8.01 The assets of the System, in excess of the amount required to meet current operations or pension and retirement payments, shall be invested in the following securities: (a) Bonds, notes, securities or other evidences of indebtedness which are the direct obligation of the Government of the United States and for which the full faith and credit of the government is pledged. (b) 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. (c) Bonds, notes or other securities of any state, county or incorporated city in any State of the United States or of the District of Columbia, which are the direct obligation of such state, county or city and for payment of which said governmental body has the lawful authority to levy taxes or make assessments. (d) Bonds, notes or other evidences of indebtedness which are payable from revenues of any structure or improvement owned by any state, county or incorporated city within the United States. (e) 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 thirty-five per centum (35%) of the total funds invested. (f) 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. -17- • (g) 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. 8.02 All investments shall be clearly marked to indicate that they are a part of the assets of the System, and to the extent possible they shall be so registered. 8.03 Transactions involving the sale of bonds and simultaneous purchase of other bonds for substantially the same consideration may be treated as exchanges rather than two separate transactions. No adjustments shall be made in investment valuations for ordinary current market price fluctuations, but reserves may be provided for anticipated losses upon redemption as determined by the Board. 8.04 Except as otherwise herein provided, no trustee or employee of the Board shall have any direct interest in the income, gains or profits of any investments made by the Board, nor shall any such person receive any pay or emolument for services in connection with any investment. Proof that any such person violated any of these restrictions shall make such person guilty of a misdemeanor or felony, as the case may be, and such person shall be punishable therefor as provided by law. ARTICLE 9. Administration 9.01 Personnel Director The Personnel Director shall have responsibility for the administration of the System. As such, he will have responsibilities which shall include, but not necessarily be limited to, the duties specified in this Section 9.01. (a) The Personnel Director shall establish and maintain records on all persons covered under the System. (b) The Personnel Director shall verify the amounts entered by the Payroll Department as deductions for contributions by Employees to the System and shall certify all payrolls on which such deductions are entered. (c) The Personnel Director shall receive applications for retirement and other benefits, compute retirement allowances, pensions and lump sum settlements, compute and credit interest to individual accounts and make such analyses, computations and other determinations and records as the Board may deem necessary for the efficient_operation of the System. (d) It shall be the duty of the Personnel Director to notify the Board of any new Members, withdrawal of Members, applications for retirement and lump sum payments, and such other personnel information as the Board may require. 9.02 Chief Finance Officer (a) The Chief Finance Officer of the City shall be the custodian of the assets of the System and shall furnish bond or surety therefor acceptable to the Board. He shall deposit all cash on hand in regularly designated depositories of the City and shall require surety or collateral therefor as is required by the Charter or Ordinances of the City for other funds of the City, and shall hold all investments under the joint custody of himself and the Board. -18- , (b) The Chief Finance Officer shall maintain necessary records to show receipts by payroll deductions, City contributions, donations and investments returns, and to show disbursements for retirement allowances, pensions and lump sum settlements. Iie shall also keep such other financial records of the moneys and investments of the System as the Board deems necessary. (c) All payments from the funds of the System shall be made by the City Clerk -Finance Director only upon vouchers signed by the Chief Finance Officer. A duly attested copy of a resolution of the Board bearing on its face the specimen signature of the City Clerk and Finance Director shall be filed as authority for making payments upon such vouchers. No voucher shall be drawn unless it shall have been previously authorized by resolution of the Board, except that the Board may, by resolution, authorize the Chief Finance Officer to issue vouchers for refunds of Accumulated Employee Contributions in accordance with Section 5.08 and for minor adjustments in contributions by Employees. (d) For the purpose of meeting current disbursements, cash equal in amount, as nearly as practicable, to the regular demands for the ensuing month shall be kept available on deposit. 9.03 City Attorney The City Attorney shall be legal advisor of the Board; his services on behalf of the Board shall not be compensated additionally. ARTICLE 10. General 10.01 The assets of the predecessor system as of the effective date of this Ordinance shall become the assets of this System on such date. The assets of the System shall be invested as one fund, and no particular person, or group of persons, shall have any right in, or to, any specific security or property, or in or to any item of cash, other than an undivided interest in the whole, as specified in the provisions of this Ordinance. 10.02 All retirement allowances, pensions, and other benefits payable under the provisions of this Ordinance, and all accumulated credits of Employees in the System shall not be assignable. 10.03 Any person who shall knowingly make any false statement, or shall falsify, or permit to be falsified, any record or records of the System in any attempt to defraud the System shall be guilty of a misdemeanor, and shall be punishable therefor, upon conviction, by a fine of not more than One Thousand Dollars ($1,000.00) or imprisonment for not more than ninety (90) days, or both, in the discretion of the Court. 10.04 No provision of any ordinance, which provides wholly or partly, at the expense of the City, for retirement allowances, pensions, or other benefits for employees of the City, their widows, or other dependents, shall apply to persons covered by the System established by this Ordinance. 10.05 All ordinances, and parts of ordinances, in conflict herewith shall be, and the same, are, hereby repealed. -19- A 10.06 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. PASSED AND ADOPTED by the City Council of the City of Miami Beach pursuant to the vote of the constituent electors of the City of Miami Beach at a special election held on November 2, 1971 in accordance with the provisions of Section 26 of the Charter and Code of the City of Miami Beach, Florida, this 17th day of November, 1971. Attest: 6F;d111C ity Clerk -Finance Director 1st reading 2nd reading 3rd reading POSTED - November 17, 1971 - November 17, 1971 - November 17, 1971 - November 19, 1971 STATE OF FLORIDA COUNTY OF DADE: I, RUTH B. ROULEAU, City Clerk and Finance Director in and for the City of Miami Beach, Florida, do hereby certify that Ordinance No. 1901 entitled: AN ORDINANCE PROVIDING FOR THE CREATION AND MAINTENANCE OF A RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE CITY OF MIAMI BEACH, FLORIDA. having been passed and adopted by the City Council of the City of Miami Beach, Florida, has been posted by me in three conspicuous places in the City of Miami Beach, one of which was at the door of the City Hall in said City on the 19th day of November, 1971, and that said Ordinance remained posted for a period of at least thirty days in accordance with the requirements of the City Charter of the said City of Miami Beach. IN WITNESS WHEREOF I have hereunto set my hand and affixed the official seal of the City of Miami Beach, Florida, on this the 19th day of January, 1972. City Clerk and Finance Director z > - I— 1— N— 0 1- U Z N < W I— 2 Z Z E— O W 1— W O Q CC 0 W — N dl CC I— W U W W Z 0 2 < OJ — Z I— a. C7 W i 2 — W CC O W L) CC () 0 Q `) LL W J W Q U Q CO Z C7 Z CC — Z Q W — 0 — Z Z r 1' 0 W W 0 — f— C7 — Z Z O — CC CC < O Li C. Li 0 r 1 1