BIE - Pension System for Fire and Police (updated 05/08/2024)MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO: Mayor Steven Meiner and Members of the City Commission
FROM: Rickelle Williams, Interim City Manager
DATE: May 15, 2024
SUBJECT: BUSINESS IMPACT ESTIMATE FOR:
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING PART 1, SUBPART B, ARTICLE
IX, RELATED SPECIAL ACTS, OF THE MIAMI BEACH CITY CODE
ENTITLED "PENSION SYSTEM FOR DISABILITY AND RETIREMENT OF
MEMBERS OF POLICE AND FIRE DEPARTMENTS," BY AMENDING
SECTION 62, "DEFINITIONS," RELATING TO ACTUARIAL ASSUMPTION
RATES; AMENDING SECTION 66, "SERVICE AND DISABILITY BENEFITS
GENERALLY;" RELATED TO IMPLEMENTING THE CONCLUSIVE
FIREFIGHTER CANCER PRESUMPTION ESTABLISHED BY SECTION
112.1816, FLA. STATUTES; AMENDING SECTION 84, "DISTRIBUTION
LIMITATION," PROVIDING FOR INCLUSION OF THE FEDERAL SECURE
ACT 2.0 PROVISIONS; PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION AND FOR AN EFFECTIVE DA TE.
Is a Business Impact Estimate Required?
□Yes ] No (If no, please check one of the boxes below)
If one or more boxes are checked below, this means the City of Miami Beach has
determined that a Business Impact Estimate for the above-referenced Ordinance is not
required by State law.
~ The proposed Ordinance is required for compliance with Federal or State law or
regulation;
□The proposed Ordinance relates to the issuance or refinancing of debt;
□The proposed Ordinance relates to the adoption of budgets or budget
amendments, including revenue sources necessary to fund the budget;
□The proposed Ordinance is required to implement a contract or an agreement,
including, but not limited to, any Federal, State, local, or private grant or other
financial assistance accepted by the City;
□The proposed Ordinance is an emergency ordinance;
□The Ordinance relates to procurement; or
□The proposed Ordinance is enacted to implement the following:
a. Part II of Chapter 163, Florida Statutes, relating to growth policy, county and
municipal planning, and land development regulation, including zoning,
Business Impact Estimate
Page 2
development orders, development agreements and development permits;
b. Sections 190.005 and 190.046, Florida Statutes, regarding community
development districts;
c. Section 553.73, Florida Statutes, relating to the Florida Building Code; or
d. Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code.
Business Im pact Estim ate
Page3
If none of the above exceptions apply, this Business Impact Estimate is hereby provided
in accordance with Section 166.041(4), Florida Statutes.
1. A summary of the proposed Ordinance and its purpose is more fully set forth in the
Commission Memorandum accompanying the Ordinance, as well as in the recitals to the
Ordinance itself, which are attached hereto.
Attached is the memo from the second reading, Ordinance, and Actuarial Impact
Statement.
2. An estimate of the direct economic impact of the proposed Ordinance on private, for-
profit businesses in the City of Miami Beach, if any:
(a) An estimate of direct compliance costs that businesses may reasonably incur;
(b) Any new charge or fee imposed by the proposed Ordinance or for which businesses
will be financially responsible; and
(c) An estimate of the City's regulatory costs, including estimated revenues from any new
charges or fees to cover such costs.
3. Good faith estimate of the number of businesses likely to be impacted by the proposed
Ordinance:
The City of Miami Beach estimates that N/A
by the proposed Ordinance.
businesses are likely to be impacted
, 4. Additional comments:
City Pension Fund for Firefighters and Police Officers
in the City of Miami Beach
April 4, 2024
VIA EMAIL
Douglas E. Beckendorf, A.S.A.
Bureau of Local Retirement Systems
Division of Retirement
Building 8, P. 0. Box 9000
Tallahassee, FL 32315-9000
SUBJECT: Actuarial Impact Statement
City Pension Fund for Firefighters and Police Officers in the City of Miami Beach
Dear Mr. Beckendorf.
The enclosed documents contain the proposed changes to the above referenced Plan and are
being submitted to comply with Florida Administrative Code 60T-1, and Florida Statute Chapters
112.63 (3), 112.64, 175.351 (3) and 185.35 (3)
o Actuarial impact statement dated April 3, 2024, prepared by the Plan's actuary, Shelly L.
Jones, Gabriel Roeder Smith & Co.
• Copy of proposed ordinance adopted by the City Commission on April 3, 2024, at first
reading. The second reading of this ordinance is scheduled for the May 15, 2024, City
Commission Meeting.
Please do not hesitate to contact me if you have any questions.
i.a
Donna Brito
Executive Director
Enclosures
pc: Board of Trustees
Stuart Kaufman, Esq.
Ricke/le Williams, Interim City Manager
Marla Alpizar, Director of Human Resources
Robert Hernandez, President, Fraternal Order of Police
Adonis Garcia, President, Firefighters Local 1510
Steve Bardin, Division of Retirement
Shelly L. Jones, Gabriel Roeder Smith & Co.
F:\FPPF\$ALL\EVERYONE\IMPACT STA TEMENTS\2024 FF Cancer Secure 2.0\D Beckendorf Impact Stmt 4-3-2024 d0cx
1691 Michigan Avenue • Suite 355 • Miami Beach, Florida 33139-2573 • (305) 673-7039
p- 954.5271616 E: 954.525.0083 / www.grsconsultog.com
April 3, 2024
Ms. Donna Brito
Executive Director
City Pension Fund for Firefighters and Police Officers
in the City of Miami Beach
1691 Michigan Avenue, Suite 355
Miami Beach, Florida 33139
Re: Actuarial Impact Statement
Dear Donna:
As requested, we have performed an actuarial review of the attached proposed Ordinance under the City
Pension Fund for Firefighters and Police Officers in the City of Miami Beach.
Based upon our review, we understand the proposed Ordinance:
1. Amends Section 62, the definition of Actuarial Assumptions (for the calculation of optional
forms of benefits) to include an updated interest rate for benefit commencements on or
after October 1, 2023.
2. Amends Section 66, to comply with the cancer presumption requirements of Chapter
112.1816, Florida Statutes, effective July 1, 2019.
3. Amends Section 84, for distribution limitations by providing for inclusion of the Federal
Secure Act 2.0 provisions.
4. Repeals all Ordinances or parts of Ordinances in conflict herewith.
5. Provides for codification.
6. Provides for severability.
7. Provides for an effective date.
In our opinion, based upon the actuarial assumptions and methods to be employed in the October 1, 2023
Actuarial Valuation, the proposed Ordinance is a no cost Ordinance under State funding requirements.
One East Broward Boulevard ] Suite 505 ] Ft. Lauderdale, Florida 33301-1804
M s. Donna Brito
A pril 3, 2024
Page Tw o
If you should have any question concern ing the above or if w e m ay be of furt her assistance w ith this m atter,
please do not hesitate to contact us.
Sincerest regards,
Gabriel, Roeder, Sm ith & Com pany
7tlo /nos
Shelly L. Jones, A.S.A., E.A., F.C.A., M.A.A.A.
Consultant and Actuary
Enclosure
cc: Mr. Frank Estevez
O R DI N AN CE N O . 2 0 2 4 - o
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING PART 1, SUBPART B, AR TI CL E
IX, RELATED SPECIAL ACTS, OF THE MIAMI BEACH CITY CODE
ENTITLED "PENSION SYSTEM FOR DISABILITY AND RETIREMENT OF
MEMBERS OF POLICE AND FIRE DEPARTMENTS," BY AMENDING
SECTION 62, "DEFINITIONS," RELATING TO ACTUARIAL ASSUMPTION
RATES; AMENDING SECTION 66, "SERVICE AND DISABILITY BENEFITS
GENERALLY;" RELATED TO IMPLEMENTING THE CONCLUSIVE
FIREFIGHTER CANCER PRESUMPTION ESTABLISHED BY SECTION
112.1816, FLA. STATUTES; AMENDING SECTION 84, "DISTRIBUTION
LIMITATION," PROVIDING FOR INCLUSION OF THE FEDERAL SECURE
ACT 2.0 PROVISIONS; PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION AND FOR AN EFFECTIVE DATE.
WHEREAS, on March 16, 2023, the Fire and Police Pension Board voted to change the
plan's definition of actuarial equivalence by adopting the recommended long-term interest rate;
and
WHEREAS, on March 15, 2023, the Fire and Police Pension Board of Trustees received
a letter from the Florida Division of Retirement requiring a modified ordinance to include the
conclusive firefighter cancer presumption established by Section 112.1816, Florida Statutes; and
WHEREAS, on December 29, 2022, President Biden signed into law the Consolidated
Appropriations Act of 2023, which contains tax-related retirement legislation, commonly known
as the SECURE 2.0 Act of 2022. This Act further increased the required minimum distribution age
to 73.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS:
SECTION 1.
That Article IX, Related Special Acts of the Miami Beach City Code, is amended to read:
ARTICLE IX. - PENSION SYSTEM FOR DISABILITY AND RETIREMENT
OF MEMBERS OF POLICE AND FIRE DEPARTMENTS
k k- *
Sec. 62. - Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
A c tuarial Assum p tions (for the calculation of optional forms of benefits) means the
following interest rates compounded annually:
(a) 8.5% for plan years prior to October 1, 2009; 8.4% effective for the plan year beginning
October 1, 2009; 8.3. % effective for the plan year beginning October 1, 2010; 8.2.%
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effective for the plan year beginning October 1, 2011; 8.1.% effective for the plan year
b e g in n in g O ct ob er 1, 2012; and 8.0.% effective for the plan years beginning October
1 , 2 0 1 3, and October 1, 2014;
(b) 7.75% effective for plan years beginning on and after October 1, 2015;
(c) 7.50% effective for plan years beginning on or after October 1, 2020;
(d) 7.20% effective for plan years beginning on or after October 1, 2023.
k $-
Sec. 66. - Service and disability benefits generally.
$ k k
(j) Nonrebuttable conclusive cancer presumption; The provisions of Section 112.181,
Fla. Statutes, are hereby codified within the Plan and are intended to be incorporated by
reference. The Board of Trustees shall adopt uniform administrative rules for the conduct
of disability hearings relating to this presumption and for the determination of any
disqualifying events as reflected in the statute.
* k k%
S ec. 84. - D istr ibu tio n Limitation .
$ %e k
Notwithstanding any other provision of this System, all distributions from this System shall
conform to section 401(a)(9) of the Internal Revenue Code in general and to section 401(a)(9)(C)
of the Internal Revenue Code in particular. Notwithstanding any other provision of this plan to the
contrary, a form of retirement income payable from this plan shall satisfy the following conditions:
(a) If the retirement income is payable before the member's death:
(1) For members who attain age 73 70 and on or after January 1, 2020 2023,_provided
the member had not attained age 72 by December31,2022,_ it shall either be distributed
or commence to the member not later than April 1 of the calendar year following the
later of the calendar year in which the member attains age 73 70%, or the calendar year
in which the member retires; The Plan will make all future required minimum
distributions in compliance with the prevailing age restrictions and additional
parameters set out in the Internal Revenue Code as amended from time to time;
(2) For members who attain age 7O and ' on or after January 1, 2020, it shall either be
distrib ut ed or-comm en ce to th e m emb er not later th an April 1-o f the-calendar year
fo llowi ng the-later of th e ca len dar y ea r in w hich the member attains age 72,or the
calendar year in which the member retires;
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(2) Ih e distribution shall com m ence not later than the calendar year defined above: and
(a) shall be paid over the life of the m em ber or over the lifetim es of the m em ber and
the m em ber's designated benefici ary or (b) shall be paid over the period extending not
beyond the life expectancy of the member and the member's designated beneficiary.
k k k
Where a form of retirement income payment has commenced in accordance with the preceding
paragraphs and the member dies before his entire interest in the plan has been distributed, the
remaining portion of such interest in the plan shall be distributed no less rapidly than under the
form of distribution in effect at the time of the member's death.
(b) If the member's death occurs before the distribution of his interest in the plan has
commenced, the member's entire interest in the plan shall be distributed within five
years of the member's death, unless it is to be distributed in accordance with the
following rules:
(1) The member's remaining interest in the plan is payable to his member's
designated beneficiary.
(2) The remaining interest is to be distributed over the life of the member's
designated beneficiary or over a period not extending beyond the life expectancy
of the member's designated beneficiary; and
(3) Such distribution begins within one year of the member's death unless the
member's Surviving Spouse is the sole designated beneficiary, in which case the
distribution need not begin before the date on which the member would have
attained age 7370 (age 72 for members who attain or-would have attained age
70 0n or after January 1, 2020) and if the member's Surviving Spouse dies
before the distribution to the Surviving Spouse begins, this section shall be
applied as if the Surviving Spouse were the member. The Plan will make all future
required minimum distributions in compliance with the prevailing age restrictions
and additional parameters set out in the Internal Revenue Code as amended
from time to time.
(4) Qualification of system. It is intended that the system will constitute a qualified
public pension plan under the applicable provisions of the code for a qualified plan
under code section 401(a) and a governmental plan under code section 414(d),
as now in effect or hereafter amended. Any modification or amendment of the
system may be made retroactively, if necessary or appropriate, to qualify or
maintain the system as a plan meeting the requirements of the applicable
provisions of the code as now in effect or hereafter amended, or any other
applicable provisions of the U.S. Federal Tax Laws, as now in effect or hereafter
amended or adopted, and the regulations issued thereunder. In recognition of the
changing requirements of system qualification, the Board shall adopt an
administrative policy setting forth the required provisions for tax qualification.
Such a policy shall be amended by the Board as required to maintain continuing
compliance with the Internal Revenue Code and that policy and any amendments
shall have the force of law as if adopted by the City Commission.
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SECTION 2. REPEALER.
A ll ordinances or parts of ordinances and all section and parts of sections in conflict
herew ith are hereby repealed.
SECTION 3. CODI FICATION.
It is the intention of the C ity C om m ission, and it is hereby ordained, that the provisions of
this O rdinance shall becom e and be m ade part of the C ode of the C ity of M iam i B each, as
am ended; that the sections of this O rdinance may be re-numbered or re-lettered to accomplish
such intention: and that the word "ordinance" m ay be changed to "section" or other appro priate
w ord.
SECTION 4. SEVERA BILI TY.
If any section, subsection, clause or pro vision of this O rdinance is held invalid, the
rem ainder shall not be affected by such invalidity.
SECTIO N 5. EFFECTIVE DATE.
This O rdinance shall take effect ten days fo llow ing adoption.
PASSED and AD OPTED this d ay of ,2 024.
Steven M ei ner , M ayor
ATTEST:
R afael E . G ranado, C ity C lerk
Underline denotes additions
Striketh rough denot es del etions
(S ponsored by M ayor S teven M einer)
APPROVED AS TO
FORM AND LANGUAGE
& FOR EXECUTION
City Attorney
3/el2 l
Date
4
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