Ordinance 93-2837ORDINANCE NO. 93-2837
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
THE DEFINED CONTRIBUTION RETIREMENT PLAN
UNDER SECTION 401(A) OF THE INTERNAL REVENUE
CODE OF 1986, BY PROVIDING FOR A FIXED PERCENTAGE
TO BE CONTRIBUTED BY ALL EMPLOYEES AND THE CITY
IN THE PLAN; PROVIDING FOR SEVERABILITY, A
REPEALER AND AN EFFECTIVE DATE.
Whereas, the City Commission of the City of Miami Beach, Florida, established a
defined contribution retirement plan for its unclassified employees as an optional plan to
the Unclassified Employees and Elected Officials Retirement System; and
Whereas, the benefits to the employee and the obligation of the City must be
established for the proper maintenance of the plan.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
Section 1 That Article 4.01 of the Plan be amended as follows:
ARTICLE 4. Contributions
4.01 Upon employment, or in the case of employees transferring
membership under section 3.02 above, upon transfer, the employee shall have—the
e€-ecnt ibutiors from a minimum of five percent (5%) of the employees annual carning
•
•
(10%) of their earnings into their account.
Section 2
4.02
.contribute ten percent
That Section 4.02 of the Plan be amended as follows:
The City shall contribute into the account of the employee an amount
equal to the employee contribution,
Section 3 Repealer All ordinances or parts of ordinances in conflict herewith be and
the same are hereby repealed.
Section 4 Severability If any article, section, subsection, clause or provision of this
ordinance is held invalid, the remainder shall not be effected by such invalidity.
Section 5 Effective Date This Ordinance shall become effective on the 27th day
of March , 1993.
Passed and Adopted this 17th day of arch ,1993.
Attest:
City Clerk
1st reading 3/3/93
2nd reading 3/17/93
M
F.+ RM APPROVED
LEGAL DEPT.
"re9
Date
CITY OF MIAMI BEACH
C:TY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER
COMMISSION MEMORANDUM /37 " 93
To: Seymour Gelber, Mayor and
Members of the City Commission
From: Roger M. Carbffuna.,&._
City Manager
Subject: Amendments to the 401A Defined Contribution Plan
Administrative Recommendation
TELEPHONE: (306) 673-7010
FAX: (306) 673-7712
March 3, 1993
The Administration Recommends that the City Commission hold a public hearing
and approve the proposed amendments to the Defined Contribution Pension Plan
Ordinance on second reading.
When the Administration brought forth the Ordinance on the creation of a defined
contribution pension plan as an alternate to the defined benefit pension plan as amended
for unclassified employees, an option on the contribution levels that the employee could
elect to contribute was included. In the process of implementing this program for our
employees, it has been determined that by allowing employees the option on the amount
of their contributions a 401K plan has been created.
Analysi
In the tax law changes in 1986 any local government that had a 401K type plan was
allowed to continue such a plan. However, no additional 401K type plans were to be
allowed to be created by local governments. The 401A plan is an alternative to the 401K
which is acceptable under the Tax Code but a set contribution must be mandated to the
employees in the plan. The amendments proposed will modify the existing Ordinance the
mandate a ten percent (10%) contribution by the employee which makes the plan a 401A
ins:ea" of a 4:1;:;-
Conclusion
i::'Z.
Conclusion
The amendments proposed are necessary for the implementation of the Defined
Contribution Pension Plan under the Tax Code and approval of the amendments is
requested.
AGENDA
ITEM
DATE
42
R -3-d
3-17-93
M
CO
M
O U
a) a)
.0 O ..0
a1 a.1 4.
G >,
O 4-1 .D a)
•r1 O 00 G
{ w cd 0
43 v4 CO 0 CD
•r1 Q1 a1 a)
+$-11 0 11
4-4 CU 0
o o P. ri
u
id a) b
v v b v aJ
ab 0 >C
G0•rIrl
ri G 4a
.2)
, -I
4-1cd
CU G G td
Cd G >>
r-1 al >•i .O
a1 a o
.G 4-1 b G
+-1 11 w' a) 0
G b0 a 1 .—I
E
•r1 a) G b •r1 a1
•v 1- >•4 •r1 la .rr
G 4r1 a) > 41 +.1
�4_. 0.uo.