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Ordinance 94-2948 ORDINANCE NO. 94-2948 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 88-2603 WHICH CREATED THE RETIREMENT SYSTEM FOR UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS TO REQUIRE THE REPAYMENT OF REFUNDED EXCESS CONTRIBUTIONS RECEIVED BY THOSE MEMBERS OF THE SYSTEM WHO HAD PREVIOUSLY TRANSFERRED TO THE RETIREMENT SYSTEM FOR GENERAL EMPLOYEES AND LATER RETURNED TO THE UNCLASSIFIED SYSTEM; PROVIDING FOR A REPEALER, SEVERABILITY AND AN EFFECTIVE DATE. Whereas, Ordinance No. 88-2603 which created a retirement system for unclassified employees and elected officials of the City currently provides that members of the System who become classified employees and transfer to the Retirement System for General Employees may receive a refund of contributions they had paid into the Unclassified System which are in excess of those contributions that would have been required of general system members; and Whereas, after becoming classified employees and receiving the refund of excess contributions, those transferred employees may, at a later date, become unclassified employees again, and thus transfer back into the Unclassified Retirement System; and Whereas, Ordinance No. 88-2603 currently does not provide for employees who are transferring back into the Unclassified System to repay the refund they had previously received when leaving the System, thus resulting in the inequitable situation wherein some employees may receive a refund of monies that should remain in the System; and Whereas, it is necessary to amend Ordinance No. 88-2603 to eliminate this inequity. NOW, THEREFORE, BE IT ORDAINED by the Mayor and city Commission of the City of Miami Beach, Florida: Section 1 That Article 3 , Section 3 . 02 be amended as follows : 3 . 02 Any person, except as provided in Section 3 . 05 herein, who becomes an Employee or Elected Official , as defined herein, on or after April 1, 1988 , shall be a Member of the Unclassified System as a condition of his employment or office as of the date he becomes an Employee or Elected Official ; provided, however, that after January 1, 1990, the effective date of this Ordinance (Ordinance No. 90-2688, s2) , any Member of the Retirement System for General Employees of the City of Miami Beach who becomes an Employee as defined in Section 2 . 05 herein, and holds the unclassified position for a period of one (1) year, shall become a Member of the Unclassified System as of one (1) year from the date on which he became an Employee . (Ordinance No. 90-2688, s2) Any Employee who transfers his Membership to this System, on or after October 18, 1992, by virtue of a change in his employment status to an unclassified employee, shall have his rights and benefits 1 governed by the date the Employee became a Member of the Predecessor System rather than the date upon which the Employee became and Unclassified Employee . (Ordinance No. 92-2817, sl) When an Unclassified Employee becomes a General Employee and transfers his Membership to the Retirement System for General Employees and later again becomes an Unclassified Employee eligible to re-enter this System, such Employee shall repay to this System any refunded excess contributions he received by virtue of his previous transfer into the Retirement System for General Employees . Section 2 Repealer All Ordinances or parts of Ordinances in conflict herewith shall be and the same are hereby repealed. Section 3 Severability In the event any article, section, paragraph, sentence, clause or phrase of this Ordinance shall be adjudicated invalid or unconstitutional, such adjudication shall in no manner affect the articles, sections, paragraphs, sentences, clauses or phrases of this Ordinance, which shall remain in force and effect as fully as if the item adjudged invalid or unconstitutional was not originally a part hereof . Section 4 Effective Date This Ordinance shall take effect on October 15, 1994, after its adoption on second reading. PASSED AND ADOPTED by the Mayor and City Commission of the City of Miami Beach, Florida this 5th day of October 1994 . Mayor Attest: L� City Clerk 1st reading 9/26/94 2nd reading 10/5/94 FORM IPPR ED LEG i ' . By Date Q.$ 7-g-91/ 2 CITY OF MIAMI BEACH er_D CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. 143-9V TO: Mayor Seymour Gelber and DATE: October 5, 1994 Members of the City Commission FROM: Roger M. Carlton City Manager SUBJECT: Amendment to Ordinance No. 88-2603, the Retirement System for Unclassified Employees and Elected Officials of the City of Miami Beach Recommendation: The Administration recommends that this Ordinance be passed and adopted by the City Commission upon second reading. Background: The Ordinance was reviewed by the Finance Committee August 31, 1994. The Finance Committee recommended that the City Commission adopt the Ordinance on first reading. It was passed on first reading September 26th. Analysis: When employees transfer from the Retirement System for Unclassified Employees and Elected Officials to the Retirement System for General Employees, since they paid a higher contribution into the Unclassified System than was required by the General System, they received a refund of those contributions in excess of those contributions that would have been required by the General System. After the employees become Members of the General Retirement System, and after they have received a refund of the excess contributions, they may upon becomming an unclassified employee, reenter the Unclassified Retirement System. Since the current Ordinance does not provide for the repayment of the excess contributions received by the employees when they first left the Unclassified System,this has created an inequitable situation of monies that should have remained in the System had the employee not transferred to the General System initially. The attached Ordinance provides for the repayment of the refunded excess contributions back to the Unclassified Retirement System. Conclusion: 138 This amendment is recommended by the Board of Trustees as necessary to properly manage the contributions of the Fund. 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