2003-25258 ResoRESOLUTION NO. 2003-25258
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, RATIFYING THE
ATTACHED AGREEMENT AS OF JUNE 30, 2003, BETWEEN THE
CITY OF MIAMI BEACH, THE INTERNATIONAL ASSOCIATION OF
FIRE FIGHTERS (IAFF) LOCAL 1510, THE MIAMI BEACH
FRATERNAL ORDER OF POLICE (FOP) WILLIAM NICHOLS
LODGE NO. 8, THE BOARD OF TRUSTEES OF THE MIAMI BEACH
FIREFIGHTERS' RELIEF AND PENSION FUND, THE BOARD OF
TRUSTEES OF THE MIAMI BEACH POLICE OFFICERS' RELIEF
AND PENSION FUND AND THE BOARD OF TRUSTEES OF THE
CITY PENSION FUND FOR FIREFIGHTERS AND POLICE
OFFICERS IN THE CITY OF MIAMI BEACH FOR THE BENEFIT
ENHANCEMENT OF THE FIREFIGHTERS' AND POLICE
OFFICERS' PENSION FUNDS, AND RATIFYING THE EXECUTION
OF THE AGREEMENT BY THE MAYOR, CITY CLERK, AND CITY
MANAGER AS OF JUNE 30, 2003.
WHEREAS, the Florida Legislature enacted Chapter 99-1, Laws of Florida,
amending Chapters 175 and 185, Florida Statutes: the state laws governing most
municipal pension plans for police officers and firefighters, including the police and
firefighter pension plans established by the City of Miami Beach in Articles VII, VIII and IX,
Miami Beach City Charter; and
WHEREAS, Chapters 175 and 185, Florida Statutes, as amended by Chapter 99-1,
Laws of Florida, require participating municipalities to implement certain pension benefits
for police officers and firefighters as additional premium tax revenues become available to
fund such benefits; and
WHEREAS, sufficient additional premium tax revenues have not yet become
available to fund all such benefits for Miami Beach police officers and firefighters; and
WHEREAS, the City of Miami Beach, its police and firefighter pension boards,
Fraternal Order of Police and International Association of Fire Fighters, all desire that
certain enhanced pension benefits be implemented immediately, even though sufficient
additional premium tax revenues have not yet become available to fund such benefits; and
WHEREAS, the City of Miami Beach has agreed to advance fund the difference
between the amount of additional premium tax revenues available and the cost of the
enhanced benefits, and the police and firefighter pension boards and FOP and IAFF have
agreed that future increases in premium tax revenues, above the amount needed to fund
the enhanced benefits, shall be paid to the City until the full amount advanced bythe City,
plus interest, is repaid; and
WHEREAS, the attached City of Miami Beach Police Officers and Firefighters
Pension Funds Enhanced Benefits Funding Agreement (the "Agreement"), which is
attached hereto and incorporated herein by reference, should be ratified as of June 30,
2003, in order to provide for the above referenced enhanced pension benefits for Miami
Beach police officers and firefighters, and the execution of the Agreement by the Mayor,
City Clerk, and City Manager should be ratified as of June 30, 2003.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the attached Agreement
is hereby ratified as of June 30, 2003, between the City of Miami Beach, the International
Association of Fire Fighters (IAFF) Local 1510, the Miami Beach Fraternal Order Of Police
(FOP), William Nichols Lodge No. 8, the Board Of Trustees Of The Miami Beach
Firefighters' Relief and Pension Fund, the Board Of Trustees of the Miami Beach Police
Officers' Relief and Pension Fund and the Board Of Trustees of the City Pension Fund for
Firefighters and Police Officers in the City of Miami Beach for the benefit enhancement of
the Firefighters' and Police Officers' Pension Funds, and the execution of the Agreement
by the Mayor, City Clerk, and City Manager is ratified as of June 30, 2003.
PASSED AND ADOPTED this 2nd day of July ., 2003
ATTEST:
CITY CLERK
~VED AS TO
FORM & LANGUAGE
& FOR EXECUTION
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution ratifying an agreement, effective to June 30, 2003, between the City, the IAFF, FOP, the
Board of Trustees of the Firefighters Relief and Pension Fund, the Board of Trustees of the Police Officers'
Relief and Pension Fund and the Board of Trustees of the City Pension Fund for Firefighters and Police
Officers in the City of Miami Beach for benefit enhancements to the fund.
Issue:
Should the City ratify the agreement, entered into by the above parties on June 30, 2003, to advance the
necessary funds on an annual basis, for benefit enhancements to the fund.
Item Summary/Recommendation:
The Administration recommends that the City Commission authorize the City to enter into the agreement.
Advisory Board Recommendation:
Financial Information:
Finance Dept. TOal
City Clerk's Office Legislative Tracking:
Sign-Offs:
AGENDA ITEM
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www,ci.miarni-beach,§,us
COMMISSION MEMORANDUM
To:
From:
Subject:
Mayor David Dermer and Date: July 2, 2003
Members of the City Commission
Jorge M. Gonzalez /t
City Manager ~ ~,.,
U
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, RATIFYING THE ATTACHED AGREEMENT
AS OF JUNE 30, 2003, BETWEEN THE CITY OF MIAMI BEACH, THE
INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS (IAFF) LOCAL
1510, THE MIAMI BEACH FRATERNAL ORDER OF POLICE {FOP)
WILLIAM NICHOLS LODGE NO. 8, THE BOARD OF TRUSTEES OF THE
MIAMI BEACH FIREFIGHTERS' RELIEF AND PENSION FUND, THE
BOARD OF TRUSTEES OF THE MIAMI BEACH POLICE OFFICERS'
RELIEF AND PENSION FUND AND THE BOARD OF TRUSTEES OF THE
CITY PENSION FUND FOR FIREFIGHTERS AND POLICE OFFICERS IN
THE CITY OF MIAMI BEACH FOR THE BENEFIT ENHANCEMENT OF
THE FIREFIGHTERS' AND POLICE OFFICERS' PENSION FUNDS, AND
RATIFYING THE EXECUTION OF THE AGREEMENT BY THE MAYOR,
CITY CLERK, AND CITY MANAGER AS OF JUNE 30, 2003.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
As a result of state legislative action passed in Mamh of 1999, in order for the Fireflghters
Relief and Pension Fund and the Police Officers' Relief and Pension Fund to receive
annual tax dollars in excess of base amounts set in 1999, the City Pension Fund for
Firefighters and Police Officers must change its minimum benefit language.
The City Pension Fund for Firefighters and Police Officers must change the language to
provide for "ten years certain and life" benefit and must change the beneficiary language
to allow police officers and firefighters to designate one or more persons as their
beneficiary.
This change in benefit could have a significant cost effect to the City if the tax revenues
received each year are not sufficient to cover the annual actuarial estimate of the
enhanced benefits. The City would then incur these additional costs.
In order to ensure that the City does not have the continued financial burden of providing
these new minimum benefits, an agreement (Attachment A) will be established among the
following participants:
The City of Miami Beach,
The Firefighters' Relief and Pension Fund,
The Police Officers' Relief and Pension Fund,
The International Association of Firefighters,
The Fraternal Order of Police, and
The City Pension Fund for Firefighters and Police Officers.
This agreement will provide for the City to advance monies to fund such benefits, during
the plan year beginning October 1,2003 and each succeeding plan year, based on annual
actuarial calculations. These advanced monies will be re-paid to the City from tax revenues
received in excess of amount needed, until the full amount advanced by the City, plus
interest at the same interest rate earned on City investments at the time of the annual
advance, is repaid.
It is understood by all parties that this agreement will be effective on June 30, 2003,
contingent upon execution by all parties and ratification by the City Commission.
Amendments to Article IX of the City Charter (Pension System for Disability and Retirement
of Members of the Police and Fire Departments) shall be submitted to referendum on
November 4, 2003 and shall take effect upon approval of the electorate and Ordinance of
the City Commission.
CONCLUSION:
The Administration recommends that the City Commission ratify the agreement between
the named parties for the benefit enhancements to the Firefighters' and Police Officers'
Pension Funds at the soonest practicable date determined by the City,
JMG:MDB:TCA:pah
CITY OF MIAMI BEACH
POLICE OFFICERS AND FIREFIGHTERS PENSION FUNDS
ENHANCED BENEFITS FUNDING AGREEMENT
WHEREAS, the Florida Legislature enacted Chapter 99-1, Laws of Florida, amending
Chapters 175 and 185, Florida Statutes: the state laws governing most municipal pension plans
for police officers and fire fighters, including the police and firefighter pension plans established
by the City of Miami Beach in Articles VII, VIII and IX, Miami Beach City Charter; and
WHEREAS, Chapters 175 and 185, Florida Statutes, as amended by Chapter 99-1, Laws
of Florida, require participating municipalities to implement certain pension benefits for police
officers and firefighters as additional premium tax revenues become available to fund such
benefits; and
WHEREAS, sufficient additional premium tax revenues have not been available during
the past several years to fund all such benefits for Miami Beach police officers and firefighters;
and
WHEREAS, the City of Miami Beach, its police and firefighter pension boards, Fraternal
Order of Police and International Association of Fire Fighters, all desire that certain enhanced
pension benefits be implemented immediately, even though sufficient additional premium tax
revenues may not be available every year to fund such benefits; and
WHEREAS, the City of Miami Beach has agreed to advance fund the difference between
the amount of additional premium tax revenues available and the cost of the enhanced benefits,
and the police and firefighter pension boards and FOP and IAFF have agreed that future
increases in premium tax revenues, above the amount needed to fund the enhanced benefits, shall
be paid to the City until the full amount advanced by the City, plus interest, is repaid.
FOR GOOD AND SUFFICIENT CONSIDERATION, INCLUDING THE EXCHANGE OF
MUTUAL PROMISES SET FORTH HEREIN, THE CITY OF MIAMI BEACH, ITS POLICE
AND FIREFIGHTER PENSION BOARDS, AND FOP AND IAFF AGREE AS FOLLOWS:
The City of Miami Beach (the City), the Board of Trustees of the Miami Beach Firefighters'
Relief and Pension Fund (Firefighters' Pension Board), the Board of Trustees of the Miami
Beach Police Officers' Relief and Pension Fund (Police Officers' Pension Board), the Board
of Trustees of the City Pension Fund for Firefighters and Police Officers in the City of
Miami Beach (Firefighter/Police Pension Board), the Miami Beach Fraternal Order of
Police, William Nichols Lodge No. 8 (FOP), and the International Association of Fire
Fighters, Local 1510, AFL-CIO-CLC (IAFF), [collectively referred to herein as "All
Parties"] agree, contingent upon execution and ratification of this agreement by All Parties
and approval of the Florida Division of Retirement, that the following amendments to
Article IX (Pension System for Disability and Retirement of Members of Police and Fire
Departments) of the City Charter, shall be submitted to referendum on November 4, 2003
and shall take effect upon approval of the electorate, as implemented by ordinance adopted
by the City Commission:
Allowing police officers and firefighters to designate one or more persons,
named sequentially or jointly, as the member's beneficiary (ies) for the
purpose of electing a joint and last survivor benefit as an optional form of
benefit in accordance with Sections 175.171, 175.181, 185.161 and
185.162, Florida Statutes.
Providing "10 years certain and life" as the nomial form of benefit for
firefighters and police officers, in accordance with Sections 175.162 and
185.16, Florida Statutes.
The benefits outlined in paragraph 1, subparagraphs (a) and (b) above, shall be
referred to herein as the "benefit enhancements."
All Parties agree that, upon the amendments described in paragraph 1, above,
becoming effective, the City will advance to the Pension System for Disability and
Retirement of Members of Police and Fire Departments (the "Firefighter/Police
Pension Fund"), during that plan year and each succeeding plan year, the amount, if
any, by which the annual cost of the benefit enhancements exceeds the additional
premium tax revenues available. All Parties further agree that the
Firefighter/Police Pension Board shall provide to the City an annual actuarial
calculation, prepared by the plan actuary at no direct cost to the City, of the cost of
the benefit enhancements for the next succeeding plan year, no later than the date
the annual actuarial valuation is completed.
All Parties agree that in any future year in which the increase in available additional
premium tax revenues is sufficient to fund the annual cost of the benefit
enhancements, all additional premium tax revenues in excess of the cost of the
benefit improvements shall be credited against the City's required contributions
until the funds credited to the City equal the funds advanced by the City including
attorneys fees incurred by the City in the preparation of this agreement and
implementing ordinances, plus interest at the same interest rate earned on City
investments at the time of the annual advance.
Upon execution of this agreement by All Parties, ratification by the City
Commission and approval of the Florida Division of Retirement, this agreement
shall take effect on June 30, 2003. If the amendments described in paragraph 1, above,
become effective, this agreement shall remain in effect until the full actuarial cost of the
benefit enhancements is paid.
THE PARTIES REPRESENT AND ACKNOWLEDGE THAT THEIR UNDERSIGNED
REPRESENTATIVES ARE AUTHORIZED TO BIND THEM IN THIS AGREEMENT.
International Association of Fire Fighters,
Local 1510, AFL-CIO-CLC
Date
Miami Beach Fraternal Order of Police,
William Nichols Lodge No. 8
Date
/4 of ,Trustees of the Miami Beach Date
refighters Relief and Pension Fund
~~ ~"-T~gl.~e Miami Beach Date
Police Officers' Relief and Pension Fund
~ ~~'~~BoardofTmste qff tl~ Ci y P~nsio ' n Fund
for FirefighterseSand PblicetOfficers in the
Date
City of Miami Beach
ger, Cit~y Mi~~i Ch
)r, City of Miami Beach
Ob, 30.03
Date
Date
Attest:
City Clerk
APPROVED AS TO
FORM& LANC. d. JAGE
& FOR EXECLmON
shall take effect on June 30, 2003. If the amendments described in paragraph 1, above,
become effective, this agreement shall remain in effect until the full actuarial cost of the
benefit enhancements is paid.
THE PARTIES REPRESENT AND ACKNOWLEDGE THAT THEIR UNDERSIGNED
REPRESENTATIVES ARE AUTHORIZED TO BIND THEM IN THIS AGREEMENT.
Intemational Association of Fire Fighters,
Local 1510, AFL-CIO-CLC
Miatlni Beach p~ra~mal Order of Police,
William Nichol~ddge No. 8
Date
Date
Board of Trustees of the Miami Beach Date
Firefighters' Relief and Pension Fund
/
Board of llrust~es of the Miami Beach Date
Police Office~s2~Relief and Pension Fund
Board of Trustees of the City Pension Fund
for Firefighters and Police Officers in the
City of Miami Beach
y Manager, Ci y ' '
Date
Date
Approved by Vote of the
City Commission
Attest:
City Clerk
Mayor
APPROVED AS
FORM & LANG~E
& FOR EXECUTION