Ordinance 99-3221 ORDINANCE NO. 99-3221
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 BY
AMENDING SECTION 2.08, ENTITLED "EARNINGS" TO
COMPLY WITH THE AGREEMENTS THAT WERE
EFFECTIVE OCTOBER 1, 1989,BETWEEN THE CITY AND
UNION CLASSIFICATIONS OF THE CITY; PROVIDING
FOR A REPEALER, SEVERABILITY, RETROACTIVITY
AND AN EFFECTIVE DATE.
WHEREAS, certain provisions of Ordinance No. 1901 which created the General
Employees Pension System ("System") are in need of amendment to comply with the agreements
between the City and the Union classifications of the City; and
WHEREAS, the amendments set forth herein were recommended by the Board of Trustees
of the Retirement System for General Employees of the City of Miami Beach.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. AMENDMENT OF SECTION 2.08.
That Section 2.08 of Article 2, entitled "Definitions" of the City of Miami Beach Ordinance
No. 1901 is hereby amended as follows:
2.08 Definitions
"Earnings" means, in the case of a person who became a Member of the
System on or after November 1, 1976,base pay, including longevity pay, for
personal services rendered as an Employee, but excluding any payment of
overtime, shift differential or extra compensation allowances such as uniform
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allowances;in the case of a person who became a Member prior to November
1, 1976,this term means the actual amount of salary or wages received by a
Member for personal services rendered as an Employee. (Ord.No. 76-2075)
Effective October 1, 1990 this term means the actual amount of salary or
wages presently included for Employees who became Members prior to
November 1, 1976.
Notwithstanding the foregoing, for any person who is in a
classification within the AFSCME bargaining unit who entered service with
the City on or after April 30, 1993 or for any other person who is in the
"Other" classification who entered service with the City on or after August
1, 1993 and for any person who is within the CWA (MBEBA) bargaining
unit who entered service with the City on or after February 21, 1994, this
term means base pay including longevity pay,but excluding any payment of
overtime, or extra compensation allowances such as uniform allowances.
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.
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SECTION 4. RETROACTIVITY.
This Ordinance shall be effective as of October 1, 1990.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect on the 25th day of December , 1999.
PASSED and ADOPTED this 15th day of Dec. , 1999.
qYOR
ATTEST:
CITY CLERK
1st reading 12/1/99
2nd reading 12/15/99 APPROVED AS TO
FORM& LANGUAGE
& FOR EXECUTION
ekrney Date
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Av
GABRIEL, ROEDER, SMITH & COMPANY
Consultants&Actuaries
301 East Las Olas Blvd.•Suite 200•Ft.Lauderdale,FL 33301 •954-527-1616•FAX 954-525-0083
November 5, 1999
Mr. Charles Slavin, Actuary
Bureau of Local Retirement Systems
Division of Retirement
Cedars Executive Center, Bldg. C
2639 North Monroe Street
Tallahassee, Florida 32399-1560
Re: Miami Beach Retirement System For General Employees
Dear Mr. Slavin:
Please review the enclosed ordinance which would amend the System by including overtime in
pensionable compensation for participants hired on or after November 1, 1976 but before the
"second tier" benefits became effective in 1993 and 1994. This amendment reflects a provision of
collective bargaining agreements that have been in effect since 1990. While the ordinance has
not been amended, in practice the System has been operating according to the collective
bargaining agreement. Benefits that have commenced since 1990 have included the effect of
overtime. Also, compensation reported to and used by the undersigned actuary for purposes of
the annual Actuarial Valuation has included overtime since 1995.
Since the System has been including overtime in the calculation of benefits and since annual
Actuarial Valuation Reports have included overtime, passage of the ordinance would have no
further actuarial impact on the System.
In our opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida
Statutes and Section 14, Article X of the State Constitution.
Respectfully submitted,
By
For the Board of Trustees
As Plan Administrator
By ,"` Pc9.J. Stephen Palmquist, ASA, M �,4, FCA
Enrolled Actuary No. 99-1560
fl )
Aft \ )!
GABRIEL, ROEDER, SMITH & COMPANY
Consultants&Actuaries
301 East Las Olas Blvd.•Suite 200•Ft.Lauderdale, FL 33301 •954-527-1616•FAX 954-525-0083
July 15, 1999
Ms. Margaret Arculeo
Pension Administrator
Miami Beach General Employees Pencion Board
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: General Employees Retirement System
Dear Margaret:
We have reviewed the proposed ordinance which applies to those who became members after
November 1, 1976 but before the "second tier" dates in 1993 and 1994. Pensionable
compensation of such members would include overtime. This provision had been included in the
respective collective bargaining agreements but was inadvertently omitted from the pension
ordinance. Your office has been administering the Plan pursuant to the collective bargaining
agreement even though the provision is not in the pension ordinance. In addition, since 1996, the
annual compensation reported to us for actuarial valuation purposes has included overtime for the
affected members.
In our opinion, passage of this ordinance will have no actuarial impact on the System because we
have already been valuing the System as though the ordinance was already effective.
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.miam i-beach.fl.us
COMMISSION MEMORANDUM NO. 1 aO CA
TO: Mayor Neisen O.Kasdin and DATE: December 15, 1999
Members of the City . mission
FROM: Sergio Rodriguez
City Manager 11,
SUBJECT: AN ORDI • 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 BY AMENDING SECTION 2.08,ENTITLED "EARNINGS",
TO COMPLY WITH THE AGREEMENTS THAT WERE EFFECTIVE
OCTOBER 1,1989,BETWEEN THE CITY AND UNION CLASSIFICATIONS
OF THE CITY; PROVIDING FOR A REPEALER, SEVERABILITY,
RETROACTIVITY AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Adopt the Ordinance.
ANALYSIS
The Agreements between the City of Miami Beach and the Miami Beach Employees' Benevolent
Association (currently known as "Communications Workers of America" or "CWA,") and the
American Federation of State,County and Municipal Employees(AFSCME) provided that effective
October 1, 1990, "All members will have the same benefits as those hired before November 1,
1976." The Agreements outlined that"Pensionable Compensation: Includes all compensation which
is presently included for employees who become members before November 1, 1976." Such
Pensionable Compensation included overtime. It appears that when the Ordinance was changed to
accommodate the Union contracts through Ordinance#89-2675 on December 6, 1989, the provision
for Pensionable Compensation was inadvertently omitted. Future agreements with the Unions
bifurcated the Pension and changed Pensionable Compensation back to exclude overtime. However,
many employees are still covered under the provision that allows overtime to be counted for Pension.
Although the Pension has been administered in accordance with the provisions of the Union
Agreements, it is necessary to include these provisions in the Ordinance for proper funding. The
Board of Trustees supports this ordinance, and Actuarial Impact Statements are attached.
AGENDA ITEM R 5 8
DATE a-45- /9
Commission Memorandum
December 15, 1999
Amendment to Ordinance No. 1901
Page 2
ANALYSIS, continued
The Ordinance was approved on first reading on December 1, 1999. The Administration
recommends that the Mayor and Commission now adopt the Ordinance in order to properly
administer the Pension in accordance with the provisions of the Union Agreements.
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