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Ordinance 95-2986 ORDINANCE NO. 95-2986 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CITY OF MIAMI BEACH ORDINANCE NO. 88-2603, WHICH ESTABLISHED THE RETIREMENT SYSTEM FOR UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS OF THE CITY OF MIAMI BEACH, SECTION 5 . 09 THEREOF ENTITLED "RETURN TO ACTIVE SERVICE" BY PROVIDING THAT MEMBERS WHO, AFTER HAVING BECOME ENTITLED TO A RETIREMENT ALLOWANCE NOT YET PAYABLE, CHANGE EMPLOYMENT STATUS FROM FULL TIME TO PART TIME AND WHO AFTER A PERIOD OF NO GREATER THAN FIVE (5) YEARS OF PART TIME EMPLOYMENT RETURN TO FULL TIME EMPLOYMENT WITH THE CITY AND MEMBERSHIP IN THE UNCLASSIFIED SYSTEM SHALL BE ENTITLED TO BENEFITS BASED UPON THE PROVISIONS APPLICABLE TO THAT MEMBER IN EFFECT AS OF HIS ORIGINAL MEMBERSHIP DATE IN THE UNCLASSIFIED SYSTEM, WHICH BENEFITS SHALL INCLUDE HIS EARNINGS AND CREDITABLE SERVICE ACCUMULATED DURING BOTH FULL TIME AND PART TIME EMPLOYMENT (WITH CREDITABLE SERVICE ACCUMULATED DURING PART TIME SERVICE TO BE REDUCED TO RATIO BETWEEN ACTUAL HOURS OF WEEKLY EMPLOYMENT AND THIRTY (30) HOURS) ; PROVIDING FOR A REPEALER, SEVERABILITY AND EFFECTIVE DATE. WHEREAS, the Board of Trustees has recommended that Section 5 . 09 of the Ordinance No. 88-2603 which establishes the Retirement System for Unclassified Employees and Elected Officials of the City of Miami Beach be amended to allow employees with a vested interest who have worked part time during a period of their employment but have been continuously employed by the City, to return to the 1 System and buy back creditable service for their period of part time employment . BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. That City of Miami Beach Ordinance No. 88-2603 , which established the Retirement System for Unclassified Employees and Elected Officials of the City of Miami Beach, Section 5 . 09 thereof entitled "Return to Active Service" is hereby amended to read as follows : Section 5 .09 Return to Active Service (a) 1 . If a former Member who has left active service of the City and who is entitled to a vested retirement allowance not yet payable returns to active service with the City, as an Employee before such allowance has become payable, he shall again become a Member, but benefits payable to him or on his account with respect to his earnings and creditable service after his return shall be based on the provisions applicable to a Member whose employment with the City commences on the date of his return to service. He shall contribute to the 2 Unclassified System at the rate required, pursuant to Section 6 . 02, of Employees who become Members for the first time. Creditable service rendered before and after his return to service shall be considered for the purpose of determining his allowance; provided, in the event of his subsequent termination of employment for reasons other than death or retirement, only creditable 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 creditable service had been one period of continuous service. 2 . The foregoing provisions shall not apply to a Member who, after having become entitled to a vested retirement allowance not yet payable, changes employment status from 3 full time (that is, at least 30 hours per week) to part time (that is , less than 30 hours per week) , and who after a period of not greater than five (5) years of part time employment returns to full time employment with the City and Membership in the Unclassified System. In such case, benefits payable to him or on his account shall (1) be based upon the provisions applicable to that Member in effect as of his original Membership date in the Unclassified System and (2) include his earnings and creditable service accumulated during both full time and part time employment (but creditable service accumulated during part time service shall be reduced to the ratio between actual hours of weekly employment and thirty (30) hours) . Such Member shall contribute to the Unclassified System, at the rate required, all amounts attributable to said creditable service in such manner as may be prescribed by the Board. SECTION 2 . REPEALER All ordinances or parts of ordinances in conflict herewith are and the same are hereby repealed. SECTION 3 . SEVERABILITY If any section, sentence, clause or phrase of this ordinance 4 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 portions of this ordinance . SECTION 4 . EFFECTIVE DATE This ordinance shall take effect on the 15th day of April , 1995 . PASSED and ADOPTED this 5th day of April, 1995. /IF / •YOR ATTEST: I. 41 TY CLERK st reading 3/15/95 2nd reading 4/5/95 c:\wpwin60\sws\88-2603.ord FORM APP eVED - 4401 By Date Siticr 5 CITY OF MIAMI BEACH ert:i CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. a q TO: Mayor Seymour Gelber and DATE: April 5, 1995 Members of the City Commission FROM: Laurence Feingold, C)1 -: ' City Attorney 0: *%1% SUBJECT: An Ordinance of the Mayor and City Commission of the City of Miami Beach, Florida, amending Ordinance No. 88-2603, which established the Retirement System for Unclassified Employees and Elected Officials of the City of Miami Beach, Section 5.09 thereof entitled "Return to Active Service" by providing that Members who,after having become entitled to a Retirement Allowance not yet payable,change employment status from full time to part time and who after a period of no greater than five(5)years of part time employment return to full time employment with the City and Membership in the Unclassified System shall be entitled to benefits based upon the provisions applicable to that Member in effect as of his/her original membership date in the Unclassified System, which benefits shall include his earnings and creditable service accumulated during both full time and part time employment (with creditable service accumulated during part time service to be reduced to a ratio between actual hours of weekly employment and thirty (30) hours); providing for a repealer, severability and an effective date. Recommendation: The Administration recommends that the Mayor and the City Commission adopt this Ordinance on first reading. Analysis: Section 5.09, Return to Active Service, applies to a former Member who has left active service of the City and then returns. It does not mention an Employee who goes from full time to part time employment, after having vested in the System, and then returns to full time employment never having left active service with the City. The Board of Trustees has recommended that an Employee, with a vested interest who never terminated employment with the City, be given the opportunity upon his/her return to full time employment to return to the System he/she was vested in, and to buy back creditable service time for that period of part time employment. AGENDA 01 ITEM — ^ DATE 4 -5- 95 Currently there is one Employee, Jean Olin, who will become eligible under this criteria to return to the Unclassified System and buy back part time service. The attorney for the Fund has advised that the Family and Medical Leave Act and the Americans with Disabilities Act have no direct relevance to this proposed amendment. His comments and legal opinion are attached. The actuary for the Fund has advised that the actuarial impact of this change would be negligible. A copy of his letter is attached. Also attached is a of that portion of the Board Minutes in which the Board resolved to recommend to the City Commission that the Ordinance be changed. By way of information, the City was responsible for matching Social Security payments on behalf of the employee during the part time service when the employee was not eligible for pension inclusion. Conclusion: This amendment is recommended by the Board of Trustees of the Unclassified Employees and Elected Officials Pension as equitable for Employees who remain with the City and have been in continuous status albeit it part time. 2 cm lwlw\ordlncelbnybsd®®omc 02/24/95 11:57 CYPEN & CYPEN MIAMI BEACH, FL 9 305+673+7795 NO.679 P002 . 1 LAW OFFICES CYPEN & CYPEN P.0. BOx 40209D MIAMI BEACH,FLORIDA 33140-0099 AREA CODE 305 MIAMI 532-9200 025 ARTHUR GODFREY ROAD BROWARD 522-3200 •t February 24, 1995 TELECOPIER 535-0050 Ms. Margaret A. Arculeo Pension Administrator Retirement System for Unclassified Employees and Elected Officials 1700 Convention Center Drive Miami Beach, Florida 33139 Re: Retirement System for Unclassified Employees and Elected Officials of the City of Miami Beach - Proposed Ordinance Change to Return to Active Service Our File No. 12114 r.! Dear Margaret: This letter is in response to your letter dated February 23, 1995 and our subsequent telephone conversation on the same date. You have advised me that you are not seeking an answer as to the first question because I have no way of knowing the City's cost, if any, while an employee worked part time. The second and third questions relate to federal legislation gov- erning the employer/employee status. Thus, the Family and Medical Leave Act and the Americans With Disabilities Act have no direct • relevance to the proposed amendment. As to the fourth question, in my opinion the text of the proposed ordinance is proper in form and substance and violates no appli- cable provision of law. If you require any further information, please do not hesitate to ask. r-i Cordially yours, C & CYPEN .hi Stephen H. Cypen ..; For the Firm `1 SHC:jes •Y: Via Fax and Regular Mail KRUSE, O'CONNOR AND LING INC- FORT LAUDERDALE OFFICE WEST SROWARD PROFESSIONAL OUILDING 7320 GRIFFIN ROAD. SUITE 200 FORT LAUDERDALE. FLORIDA 3334 (:�L�lfdi �A TEL.(305}79I-Sa0O e.fXYl�/CARLSLQL FAX (303}79l•QZO• NORTH/CENTRAL FLORIDA OFFICE 101 SOUTHEAST SECOND PLACE.$UITI 201 GAINESVILLE, FLORIDA 2E401 TCL.(904)37R-3e0O • FAx (904)33e 13 January 20, 1995 REPLY TO FORT LAUDERDALE Ms. Margaret Arculeo • Pension Administrator City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Re: Unclassified Retirement System Dear Margaret: You asked us to comment on the actuarial impact of two proposed changes to the System. One case covers an employee who changes from full-time to part-time and back to full-time. The System would allow such a person to retain credit for his original full-time service. In addition, a ratable portion of his part-time service would be added to his full-time service. The employee would, of course, be required to make the appropriate pension contributions. In our opinion, the actuarial impact of this change would be negligible. The second change relates to the case where two members of the System are married to each other and retire, Under present plan provisions, the retiree who survives would not be permitted to receive both a survivor benefit and his or her own pension. The proposal is to allow such a person to receive both benefits. In our valuation of those on retirement, we have not valued those, if any, who are married to each other any differently than other retirees. In other words, our valuation anticipates that the survivor of the retirees married to each other will receive both the regular pension and the survivor benefit. Since we are already valuing the System in accordance with the proposed change, this change would have no actuarial impact. Please contact us if there are any questions. Sincerely yours, J. Stephen Paimqulst JSP/or 7n,J Inn r51.077 >Q ]Innlnln'- n 7c`nN'I on7o T c ) cnc C f • n T n7_T n_ccC • PENSION BOARD MINUTES JANUARY 24, 1995 PAGE 3 A motion was made by Commissioner Pearlson, duly seconded by Mr. Gomez , and unanimously RESOLVED That the Financial Reports be approved as presented. II . New Items - These items were moved to a later position in the Agenda to accommodate Ms . Olin' s request to address the Board. III. Deferred Items (A) Request from Jean Olin drafted by Legal Counsel - Mr. Cypen explained that in addition to the language presented to the Board a buy back provision was necessary. He recommended adding, Such Member shall contribute to the Unclassified System, at the rate required, all amounts attributable to said creditable service in such manner as may be prescribed by the Board. Mr. Cypen outlined the criteria for an individual to qualify under the new provision: 1 . The individual would have to be entitled to a vested benefit not yet payable . 2 . They would have had to change their employment status from full to part time . 3 . They would have to return to full time employment in no greater than five years . The part time service would be converted by ratio into full time creditable service. A motion was made by Mr. Rosen, duly seconded by Commissioner Pearlson, and unanimously RESOLVED That the Board recommend to the City Commission that an amendment to the Ordinance, Section 5 . 09 Return to Active Service be added to as follows : 2 . The foregoing provision shall not apply to a Member who, after having become entitled to a vested retirement allowance not yet payable, changes employment status from full time (that y PENSION BOARD MINUTES JANUARY 24, 1995 PAGE 4 is , at least 30 hours per week) to part time (that is, less than 30 hours per week) , and who after a period of no greater than five (5) years of part time employment returns to full time employment with the City and Membership in the Unclassified System. In such case, benefits payable to him or on his account shall (1) be based upon the provisions applicable to that Member in effect as of his original Membership date in the Unclassified System and (2) include his earnings and creditable service accumulated during both full time and part time employment (but creditable service accumulated during part time service shall be reduced to the ratio between actual hours of weekly employment and thirty (30) hours) . Such Member shall contribute to the Unclassified System, at the rate required, all amounts attributable to said creditable service in such manner as may be prescribed by the Board. Mr. Cypen explained that the new provision would be recommended to the City Commission as an Ordinance change, due to a situation not previously addressed in the Ordinance, that the Board felt should have been addressed. Information from the Actuary advised that, in their opinion, the actuarial impact of such a change would be negligible . Mr. Cox asked if the same criteria could be applied to a retiree who returned to full time employment . Mr. Cypen explained that the new provision would only apply to an employee who never left employment with the City. He said that upon retirement an employee terminates employment and would return under the Second Tier of the Plan. To allow a retiree to return to the original Plan would raise the question, should a vested termination also be allowed to return to the original Plan. In this event, there would have been no need for Ms . Olin' s request . She would have been able to return to the original Plan without the new provision. MAYOR SEYMOUR GELBER, MEMBERS OF THE CITY COMMISSION AND CITY MANAGER ROGER M. CARLTON RE:ART IN PUBLIC PLACES MARCH 15, 1995 PAGE 2 for some or all of the required 1 1/2% appropriation to be placed in the Fund. Monies placed in the Fund may be used to acquire works of art for other public properties in the City which are appropriate sites for such art. Fund monies may also be utilized for insurance and maintenance of already acquired works of art and for expenses related to selection and acquisition of artists and/or works of art. The role of the Art in Public Places Committee (APPC) is expanded in the new Ordinance. The APPC still advises the Commission as to whether the 1 1/2% appropriation or a portion of it should be waived for a particular construction project. However, selection of particular works of art and artists and decisions as to the amount of funds to be utilized for acquisitions for particular sites are made by the APPC. Their decisions can only be implemented if approved by the City Commission. As in the Dade County Ordinance the proposed Ordinance provides for the appointment of a Professional Advisory Committee (PAC) of artists and professionals to advise the APCC and City Commission regarding a particular acquisition. Members of a PAC will be selected by the APPC and confirmed by the City Commission. The definition of works of art has also been expanded to include functional elements incorporated in a structure of public spaces by cooperation of the artist(s) with the project architect(s) . The proposed new Ordinance should provide the City with greater flexibility in the use of appropriated funds so as to enhance more locations with art for public enrichment. It will also provide for use of the expertise of professionals in selecting works of art for City property. SWS:lm • Cll M 1J U 0 O U) 4-) N U ;.4 N Cl) ', N CO• 00 +� ch 0o o rl CI • 00 I•+ Lfl 0 4) cd • G) cn Cr, O cii O P0 4-1 • W N ' I • C.) H U ori .0 p • Q r� z "a ++ E • x z o - W U ° O H N "0 4) V) •rrl 4 5• " -1 4-1 44 • .n m o v O Rt W p'., • d-1 Cd U) 00 U) r I r-i '0 • G N U cd N • •rlf". •rl r--I • TJ ,C U a..) • • CJ •ri •rl • W rl 7-+ 41 4-j • 3 w p a •