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Ordinance 99-3220 ORDINANCE NO. 99-3220 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 SECTION 5.06 ENTITLED "DEATH BENEFITS AFTER RETIREMENT" TO CHANGE THE AGE OF A DEPENDENT CHILD OF AFSCME UNION MEMBERS FOR BENEFICIARY BENEFITS FROM AGE 22 TO AGE 25 IN THE CASE OF A CHILD WHO IS A FULL-TIME STUDENT IN HIGH SCHOOL OR COLLEGE; 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 comply with the AFSCME Union contract for May 1, 1998 to April 30, 2001; and WHEREAS,the amendments set forth herein were recommended by the City Administration and the Community Relations Board. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. AMENDMENT OF SECTION 5.06 That Section 5.06 entitled "Death Benefits after Retirement" of the City of Miami Beach Ordinance No. 1901 is hereby amended as follows: 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 1 on the date of his retirement or termination of service, whichever was first, and for a 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, 2 if any, divided in such manner as the Board in its discretion shall determine, to continue until every such child 1) marries or dies, or 2) attains eighteen (18)years of age or twenty-two (22) in the case of a child who is a full-time student in high school or college; provided that, for children of Members of the AFSCME Union,the pension shall continue to twenty-five (25) years of age in the case of a child who is a full-time student in high school or college; provided that in the case of a physically or mentally handicapped child, the pension shall continue until the child recovers from the handicap. As used in this paragraph, a"physically or mentally handicapped child" is one who 1) is unmarried, 2) is entitled to and receives a child's disability benefit based upon determination by the Social Security Administration that the child is unable to do any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months and 3) was suffering from such impairment prior to attaining eighteen(18) years of age (or twenty-two (22) years of age in the case of a child who was a full-time student in high school or college, or twenty-five (25) years of age in the case of a child who was a full-time student in high school or college and is the child of an AFSCME Union Member). Notwithstanding the above, only children who were dependent beneficiaries of the Retirant on the date of his retirement or termination of service,whichever is first,shall be eligible for a pension under this paragraph. (Ord. No. 89-2675, §2, Ord. No. 95-3001, §1.) 3 (d) If there are no pension benefits payable to a surviving spouse, child or children pursuant to paragraphs (a) or(c) above, then the aforementioned pension shall be paid to the dependent parent,if any,of the deceased member. If both parents are dependent, such benefit shall be shared equally between them. (Ord. No. 89-2675, §2.) (e) Anything in this Section 5.06 to the contrary notwithstanding 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 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. (Ord. No. 89-2675, §2.) SECTION 2. REPEALER. All Ordinances or parts of Ordinances in conflict herewith shall be and the same are hereby repealed. SECTION 3. SEVERABILITY. If any section, subsection, clause or phrase of this Ordinance 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. 4 SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect on the 25th day of December , 1999. PASSED and ADOPTED this 15th day of December , 1999. MAYOR ATTEST: 141AAA, 3a,t(Lc., CITY CLERK 1st reading 12/1/9 9 2nd reading 12/15/99 APPROVED AS TO FORM& LANGUAGE & FOR EXECUTION 44 At 2/11.4. 5 GABRIEL, ROEDER, SMITH & COMPANY Consultants&Actuaries 301 East Las Olas Blvd.•Suite 200•Ft.Lauderdale, FL 33301 •954-527-1616•FAX 954-525-0083 June 18, 1999 Ms. Margaret Arculeo Pension Administrator Miami Beach General Employees Pension Board 1700 Convention Center Drive Miami Beach, Florida 33139 Re: General Employees Retirement System Dear Margaret: We have reviewed the proposed ordinance which would extend from age 22 to 25 the period when a survivor benefit would be payable to a dependent child who is a full-time student. In our opinion, enactment of this ordinance would have a negligible actuarial impact on the System. Please contact us if there are any questions. Sincerely yours, J. Stephen Palmquist JSP/or CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH,FLORIDA 33139 http:\\ci.m i am i-beach.fl.us COMMISSION MEMORANDUM NO. "1 t ( -99 TO: Mayor Neisen O. Kasdin and DATE: December 15, 1999 Members of the City C mission FROM: Sergio Rodriguez City Manager SUBJECT: AN ORDINA CE 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 SECTION 5.06 ENTITLED "DEATH BENEFITS AFTER RETIREMENT" TO CHANGE THE AGE OF A DEPENDENT CHILD OF AFSCME UNION MEMBERS FOR BENEFICIARY BENEFITS FROM AGE 22 TO AGE 25 IN THE CASE OF A CHILD WHO IS A FULL - TIME STUDENT IN HIGH SCHOOL OR COLLEGE; PROVIDING FOR A REPEALER, SEVERABILITY AND AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION Adopt the Ordinance. ANALYSIS The Agreement between the City of Miami Beach and the Miami Beach Employees' AFSCME Union (dated May 1, 1998) established that benefits paid to a dependent child should be changed from age 22 to age 25 if the child is a full-time student. The Ordinance currently provides for benefits paid to a dependent child to continue until every such child 1) marries or dies, or 2) attains eighteen(18)years of age, or twenty-two (22) years of age in the case of a child who is a full-time student in high school or college. It is necessary to change the Ordinance to comply with the AFSCME Union contract. This amendment is recommended by the Board of Trustees, and the Actuary for the Fund, Steve Palmquist of Gabriel, Roeder, Smith & Co., has advised that the actuarial impact of this change would be negligible (letter attached). The Ordinance was approved on first reading on December 1, 1999. The Administration recommends that the Mayor and Commission now adopt the Ordinance. 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