Ordinance 94-2957 ORDINANCE NO. 94-2957
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH; FLORIDA, AMENDING ORDINANCE NO. 89-2640,
ENTITLED "CITY SUPPLEMENTAL PENSION FUND FOR FIREFIGHTERS
AND POLICE OFFICERS IN THE CITY OF MIAMI BEACH", AMENDING
SECTION 7, ENTITLED "BENEFITS PAYABLE" BY PROVIDING THAT
SURVIVING SPOUSES OF MEMBERS KILLED IN THE LINE OF DUTY
SHALL NOT LOSE SURVIVOR' S BENEFITS UPON REMARRIAGE;
ADDING SECTION 22, ENTITLED "MAXIMUM COMPENSATION BY
PROVIDING THAT THE SAME COMPENSATION LIMITS WHICH WERE
USED FOR DETERMINING EMPLOYEES PENSION BENEFITS AS OF
JULY 1, 1993 SHALL CONTINUE TO BE USED FOR EMPLOYEES
HIRED BEFORE DECEMBER 31, 1995; ADDING SECTION 23,
ENTITLED "DISTRIBUTION TO ELIGIBLE RETIREMENT PLAN"
PROVIDING THAT CERTAIN DISTRIBUTEES OF PENSION BENEFITS
MAY ELECT TO HAVE ELIGIBLE BENEFIT DISTRIBUTIONS PAID
DIRECTLY TO AN ELIGIBLE RETIREMENT PLAN AND PROVIDING
THAT THIS PROVISION SHALL TAKE EFFECT RETROACTIVELY AS OF
JANUARY 1, 1993; PROVIDING FOR A REPEALER, SEVERABILITY
AND AN EFFECTIVE DATE.
WHEREAS, pursuant to the requirements of recent amendments to
Florida Statutes, the surviving spouse of any municipal firefighter
or police officer killed in the line of duty is entitled to
continue to receive survivor retirement benefits after remarrying;
and
WHEREAS, it is necessary to amend this ordinance to comply
with those statutory requirements; and
WHEREAS, the Omnibus Budget Reconciliation Act of 1993 amended
Section 401 (a) (17) of the Internal Revenue Code to reduce the
amount of an employee ' s yearly compensation which may be considered
for pension plan purposes to $150, 000 for 1994 , with limited future
indexing; and
WHEREAS, public sector plans are permitted to "grandfather"
the use of compensation limits specified in their plans as of July
1, 1993 if a "grandfather" provision is added to their pension
plans before the plan year beginning in 1996 ; and
WHEREAS, in order to comply with the requirements of the
Unemployment Compensation Amendments of 1992 the City must provide
certain pension benefit recipients with the right to elect to have
certain eligible benefit distributions paid directly to an eligible
retirement plan; and
WHEREAS, the amendments set forth herein were recommended by
the Board of Trustees of the City Supplemental Pension Fund for
Firefighters and Police Officers in the City of Miami Beach.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1 . AMENDMENT OF SECTION 7, ORDINANCE NO. 89-2640 .
That Section 7, entitled "Benefits Payable" of City of Miami
Beach Ordinance No . 89-2640 , entitled "City Supplemental Pension
Fund for Firefighters and Police Officers in the City of Miami
Beach" is hereby amended as follows :
Section 7 . Benefits Payable
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* * *
7 . 04 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 widower 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 widower or a child or children
or dependent parent (s) under the following terms, conditions and
restrictions and at the following rates :
(A) To the widow or widower, 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 Section 7 . 02 (B) , whichever is
applicable .
(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 widower, or if such widow or
widower 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
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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.
However, when a member is killed in the line of duty, the surviving
spouse shall not lose survivor' s benefits upon remarriage .
SECTION 2 . ADDITION OF SECTION 22 , ORDINANCE NO. 89-2640 .
That City of Miami Beach Ordinance No. 89-2640 , which
established the City Supplemental Pension Fund for Firefighters and
Police Officers in the City of Miami Beach is hereby amended by
addition of Section 22 to read as follows :
Section 22 . Maximum Compensation.
In determining the pension benefit for an eligible employee,
compensation in excess of limitations set forth in Section
401 (a) (17) of the Internal Revenue Code shall be disregarded. The
limitation on compensation for an "eligible employee" shall not be
less than the amount which was allowed to be taken into account
hereunder as in effect on July 1 , 1993 . As used in the Section,
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"Eligible employee" is an individual who was a member before the
first plan year beginning after December 31 , 1995 .
SECTION 3 . ADDITION OF SECTION 23, ORDINANCE NO. 89-2640 .
That City of Miami Beach Ordinance No. 89-2640, which
established the City Supplemental Pension Fund for Firefighters and
Police Officers in the City of Miami Beach is hereby amended by
addition of Section 23 to read as follows :
Section 23 . Distribution to Retirement Plan
23 . 01 Election by Distributee
This Section applies to distributions made on or after January
1 , 1993 . Notwithstanding any provision of this Ordinance to the
contrary that would otherwise limit a distributee ' s election under
this Section, a distributee may elect , at the time and in the
manner prescribed by the plan administrator, to have any portion of
an eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
23 . 02 Definitions
For purposes of this Section, the following definitions shall
apply:
(A) Eligible rollover distribution: An eligible rollover
distribution is any distribution of all or any portion of the
balance to the credit of the distributee, except that an eligible
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rollover distribution does not include : any distribution that is
one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of
the distributee or the joint lives (or joint life expectancies) of
the distributee and the distributee ' s designated beneficiary, or
for a specified period of ten years or more; any distribution to
the extent such distribution is required under Section 401 (a) (9) of
the Internal Revenue Code; and the portion of any distribution that
is not includible in gross income .
(B) Eligible retirement plan: An eligible retirement plan is
an individual retirement account described in Section (408 (a) of
the Internal Revenue Code, an individual retirement annuity
described in Section 408 (b) of the Internal Revenue Code, an
annuity plan described in Section (403 (a) of the Internal Revenue
Code, or a qualified trust described in Section (401 (a) of the
Internal Revenue Code, that accepts the distributee ' s eligible
rollover distribution. However, in the case of an eligible
rollover distribution to the surviving spouse, an eligible
retirement plan is an individual retirement account or individual
retirement annuity.
(C) Distributee : A distributee includes an employee or
former employee . In addition, the employee ' s or former employee ' s
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surviving spouse are distributees with regard to the interest of
the spouse .
(D) Direct rollover: A direct rollover is a payment by the
plan to the eligible retirement plan specified by the distributee .
SECTION 4 . REPEALER.
All ordinances or parts of ordinances in conflict herewith be
and the same are hereby repealed.
SECTION 5. SEVERABILITY.
If any section, subsection, clause or provision of this
Ordinance is held invalid, the remainder shall not be affected by
such invalidity.
SECTION 6 . EFFECTIVE DATE.
This Ordinance shall take effect on the 17th day of
December , 1994 . However, Section 3 shall take effect
retroactively as of January 1, 1993 .
PASSED and ADOPTED this 7th da; of December , 1994 .
ATTEST: Adallphik/ $
MAYOR
q 'rj&a,)L ET)11N--„--
CITY CLERK
1st reading 11/16/94
2nd readin 12/7/94
SWS:scf:6.Odgsk7\pension.ord
FORM APPROVED
LEGAL DEPT. 7
By
Date t l t- 2, lit
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. 9M-61
TO: Mayor Seymour Gelber and DATE: December 7, 1994
Members of the City Commission
FROM: Roger M. Ca " Olk
City Manager
SUBJECT: SECOND READING AMENDING ORDINANCE NO. 89-2640, ENTITLED "CITY
SUPPLEMENTAL PENSION FUND FOR FIREFIGHTERS AND POLICE OFFICERS IN
THE CITY OF MIAMI BEACH," AMENDING SECTION 7, ENTITLED "BENEFITS
PAYABLE"BY PROVIDING THAT SURVIVING SPOUSES OF MEMBERS KILLED IN THE
UNE OF DUTY SHALL NOT LOSE SURVIVOR'S BENEFITS UPON REMARRIAGE;
ADDING SECTION 22, ENTITLED "MAXIMUM COMPENSATION BY PROVIDING THAT
THE SAME COMPENSATION UMITS WHICH WERE USED FOR DETERMINING
EMPLOYEES PENSION BENEFITS AS OF JULY 1, 1993 SHALL CONTINUE TO BE
USED FOR EMPLOYEES HIRED BEFORE DECEMBER 31, 1995;ADDING SECTION 23,
ENTITLED "DISTRIBUTION TO EUGIBLE RETIREMENT PLAN" PROVIDING THAT
CERTAIN DISTRIBUTEES MAY ELECT TO HAVE EUGIBLE BENEFIT DISTRIBUTIONS
PAID DIRECTLY TO AN EUGIBLE RETIREMENT PLAN;PROVIDING FOR A REPEALER,
SEVERABIUTY AND AN EFFECTIVE DATE.
ADMINISTRATIVE RECOMMENDATION
The Administration recommends that the Mayor and City Commission adopt the ordinance at second reading.
BACKGROUND
Review by the Board of Trustees and Board's Counsel indicate that the Ordinance should be amended to comply
with(1) State Law CS/HB 665 which provides that the surviving spouse of any member killed in the line of duty shall
not forfeit benefits upon remarriage; (2) the Unemployment Compensation Amendments of 1992 which provide for
rollover into IRA for otherwise taxable distributions; since the first reading,the language has been changed to clarify
that the date is retroactive to January 1, 1993 as already specified within the text of the Ordinance; (3) Amendment
permitted by OBRA (Omnibus Budget Reconciliation Act of 1993) which allows grandfathering of compensation for
employees hired before the Plan Year beginning 1996.
The Ordinance was presented to the City Commission and passed on first reading November 16, 1994.
CONCLUSION
The adoption of the amendments will update Ordinance No. 89-2640 so that it will comply with CS/HB 665; the
Unemployment Compensation Amendments of 1992, and the Omnibus Budget Reconciliation Act of 1993.
There will be no cost to the City of Miami Beach as a result of these amendments.
AGENDA ITEM R
DATE / 9 7
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