Ordinance 95-3018 ORDINANCE NO. 95-3018
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
ORDINANCE NO. 1901 WHICH CREATED THE
RETIREMENT SYSTEM FOR GENERAL EMPLOYEES,
AMENDING ARTICLE 5, ENTITLED "BENEFITS" ,
AMENDING SECTION 5 . 05, ENTITLED "ACTIVE
SERVICE DEATH BENEFITS" BY ELIMINATING THE
PROVISION WHICH PROHIBITS A MEMBER FROM
RECEIVING BOTH THEIR OWN PENSION AND BENEFITS
DUE TO THE DEATH OF A SURVIVING SPOUSE OR
SPOUSES; AMENDING SECTION 5 .11, ENTITLED
"RETURN TO ACTIVE SERVICE" TO ELIMINATE THE
PROVISION WHICH PROHIBITS A PENSIONER WHO IS
HIRED BY THE CITY FROM CONTINUING TO RECEIVE
BENEFITS AS A BENEFICIARY OF A DECEASED
MEMBER; PROVIDING FOR A REPEALER, SEVERABILITY
AND AN EFFECTIVE DATE.
Whereas, certain provisions of Ordinance No. 1901, which
established the Retirement System for General Employees, are in
need of amendment in order to prevent loss of beneficiary benefits
based upon reemployment by the City; and
Whereas, the amendments set forth herein were recommended by
the Board of Trustees of the Retirement System for General
Employees .
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
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SECTION 1. AMENDMENT OF SECTION 5 . 05 .
That Section 5 .05, of Article 5 entitled "Benefits" of City of
Miami Beach Ordinance No. 1901, is hereby amended as follows :
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-half of the amount computed as a normal
service retirement allowance in accordance with Paragraph (c) of
Section 5 . 01 as though the date of the Member' s death were his
normal retirement date, on the basis of the Member' s final average
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monthly earnings and creditable service at the time of his death;
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, in the case of a person
who became a Member of the System prior to November 1, 1976, 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 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 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
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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 .
following Section 5 . 0-G er bceause e-f the simultancou3 effect of
both of thc3c sections .
SECTION 2 . AMENDMENT OF SECTION 5 .11.
That Section 5 . 11, of Article 5 entitled "Benefits" of City of
Miami Beach Ordinance No . 1901, is hereby amended as follows :
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, 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
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service . He shall contribute to the 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 .
(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, but benefits
payable to him or his account with respect to his earnings and
creditable service after his return shall be based on the
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provisions applicable to a Member whose employment with the city
commences on the date of his return to service. He shall
contribute at the rate required, pursuant to Section 6 . 02, of
Employees who become 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 became a Member.
Creditable 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, adjusted actuarially, if he
returned to service prior to his normal retirement date, for the
period from the date of his return to service to the date of his
subsequent retirement or normal retirement date, whichever occurs
first, plus the amount computed as a retirement allowance on the
basis of his final average monthly earnings and creditable 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 creditable
service had been a continuous period. If an option had been
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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.
Pensioner if still -eligible therefee er the benefit, if any, to
the System.
(c) 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.
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SECTION 3 . REPEALER.
All ordinances or parts of ordinances in conflict herewith be
and the same are hereby repealed.
SECTION 4 . SEVERABILITY.
If any section, subsection, clause or provision of this
Ordinance is held invalid, the remainder shall not be affected by
such invalidity.
SECTION 5 . EFFECTIVE DATE.
This Ordinance shall take effect on the 4th day of
November 1995 .
PASSED AND ADOPTED by the Mayor and City Commission of the
City of Miami Beach, Florida this 25th day of Optober ,
1995 .
Mayor
I
Attest:
M
idi
aj '4/
City Clerk
1st reading 10/11/95 FORM APPROVED
2nd reading 10/25/95
Legal hep ,
By • /
Date 9 p.s
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO.—7439 9Z
TO: Mayor Seymour Gelber and
Members of the City Commission DATE:October 25, 1995
FROM: Jose Garcia-Pedrosa I.
City Manager
SUBJECT: SECOND READ P,'G AMENDING ORDINANCE NO. 1901 WHICH
ESTABLISHED THE RETIREMENT SYSTEM FOR GENERAL
EMPLOYEES, AMENDING ARTICLE 5, ENTITLED "BENEFITS",
AMENDING SECTION 5.05, ENTITLED "ACTIVE SERVICE DEATH
BENEFITS" BY ELIMINATING THE PROVISION WHICH PROHIBITS A
MEMBER FROM RECEIVING BOTH HIS/HER OWN PENSION AND
BENEFITS DUE TO THE DEATH OF A SURVIVING SPOUSE OR
SPOUSES;AMENDING SECTION 5.11,ENTITLED "RETURN TO ACTIVE
SERVICE" TO ELIMINATE THE PROVISION WHICH PROHIBITS A
PENSIONER WHO IS HIRED BY THE CITY FROM CONTINUING TO
RECEIVE BENEFITS AS A BENEFICIARY OF A DECEASED MEMBER;
PROVIDING FOR A REPEALER, SEVERABILITY AND AN EFFECTIVE
DATE.
Recommendation
The Administration recommends that the Mayor and City Commission adopt this Ordinance
at second reading.
Analysis
Sections 5.05 and 5.11 of Ordinance No. 1901 prohibit the continuation of benefits to a
surviving spouse if he/she is an employee of the City. They also prohibit the continuation of benefits
to a surviving spouse should the surviving spouse change status and become a city employee or
remarry. The Trustees for the Unclassified Employees and Elected Officials Retirement System are
of the opinion that a benefit earned by a Member should be allowed to continue to a surviving spouse
regardless of his/her status. The Actuary for the Plan, Steve Palmquist,has reported that, since the
Members are valued on an individual basis, such an amendment would not cause a negative impact
to the Plan.
Conclusion
This amendment is recommended by the Board of Trustees and is fair and.equitable action.
JGP:ma AGENDA ITEM R-3' C—
DATE IQ-7 5 9S
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