Ordinance 2024-4620ORDINANCE NO., 2024-4620
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 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
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:
Actuarial Assumptions (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.%
effective for the plan year beginning October 1, 2011; 8.1.% effective for the plan year
beginning October 1,, 2012; and 8.0.% effective for the plan years beginning October
1, 2013, 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.
Sec. 66. — Service and disability benefits generally.
0) Nonrebuttable conclusive cancer presumption: The provisions of Section 112.1816,
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.
Sec. 84. — Distribution Limitation.
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 ander on or after January 1, 2029 2023, provided
the member had not attained age 72 by December 31, 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 741A, 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
(2) The distribution shall commence not later than the calendar year defined above; and
(a) shall be paid over the life of the member or over the lifetimes of the member and
the member's desiqnated beneficiary or (b) shall be paid over the period extending not
beyond the life expectancy of the member and the member's designated beneficiary.
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 73 Inv Ow 77 fnr members uihn attain eF would have attained age
7011 ,, en Ar Rft r Ian aFy 1, 70M 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.
3
SECTION 2. REPEALER.
All ordinances or parts of ordinances and all section and parts of sections in conflict
herewith are hereby repealed.
SECTION 3. CODIFICATION.
It is the intention of the City Commission, and it is hereby ordained, that the provisions of
this Ordinance shall become and be made part of the Code of the City of Miami Beach, as
amended; that the sections of this Ordinance may be re -numbered or re -lettered to accomplish
such intention; and that the word "ordinance" may be changed to "section" or other appropriate
word.
SECTION 4. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect ten days following adoption.
PASSED and ADOPTED this /5 -
day of /� , 2024.
ATTEST:
MAY 2 1 2024
Rafael Ef Granado, City Clerk
Sponsored by Mayor Steven Miner
11
Steven Meiner, Mayor
APPROVED AS TO
FORM AND LANGUAGE
& FOR EXECUTION
City Attorney
3Iz;l-v+
Date
H
MIAMIBEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Rickelle Williams, Interim City Manager
DATE: May 15, 2024
10:30 a.m. Second Reading Public Hearing
SUBJECT 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 DATE.
The Administration recommends approval of the proposed ordinance on Second Reading. On April 3, 2024, the Mayor and City
Commission adopted the proposed Ordinance on First Reading. No changes have been made between First and Second Reading.
A summary of the proposed ordinance is set forth below.
BACKGROUND/HISTORY
The City of Miami Beach has the following five (5) classified employee groups that are represented by bargaining units:
• Group I - Represented by the American Federation of State, County and Municipal Employees (AFSCME) Local 1554;
• Group II - Represented by the Fraternal Order of Police (FOP) William Nichols Lodge No. 8;
• Group III - Represented by the International Association of Firefighters (IAFF) Local 1510;
• Group IV - Represented by the Communications Workers of America (CWA) Local 3178; and
• Group V - Represented by the Government Supervisors Association of Florida (GSAF), OPEIU, Local 100
In addition, the City has one (1) classified employee group, Group VI, comprising all other classifications in the classified service
not covered by a bargaining unit. This group is commonly referred to in the City of Miami Beach as "Others". There is a seventh
salary group comprised of at -will employees commonly referred to as Unclassified.
Employees represented by the FOP and IAFF are eligible for a defined benefit pension plan governed by Part I, 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."
All other full-time employees are eligible for a defined benefit pension plan governed by Part I, Subpart B, Article VI, Related
Special Acts, of The Miami Beach City Code entitled "Pension and Retirement System for Officers and Employees Generally."
Under current law, participants are generally required to begin taking distributions from their retirement plans at age 72.
Under section 112.1816, Florida Statutes, if a firefighter participates in an employer-sponsored retirement plan, the retirement plan
must consider the firefighter totally and permanently disabled in the line of duty if he or she meets the retirement plan's definition of
totally and permanently disabled due to the diagnosis of cancer or circumstances that arise out of the treatment of cancer. The Fire
and Police Pension plan document currently lacks language regarding the cancer presumption for firefighters.
On May 21, 2020, The Fire and Police Pension Board voted to change the plan's definition of actuarial equivalence by adopting the
recommended long-term interest rate of 7.5%, effective October 1, 2020.
ANALYSIS
The Administration and the Fire and Police Pension Board wish to amend the Fire & Police Pension Plan to increase the required
minimum distribution age to 73 starting on January 1, 2023. This amendment will bring the plan in compliance with the
1107
Consolidated Appropriations Act of 2023, which contains tax -related retirement legislation, commonly known as the SECURE 2.0
Act of 2022.
The Administration and the Fire and Police Pension Board also wish to amend the Fire & Police Pension Plan to include the
conclusive firefighter cancer presumption established by section 112.1816, Florida Statutes. This amendment will bring the plan in
compliance with the Florida Statutes and all other applicable laws.
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 of 7.2% effective October 1, 2023. This amendment will change the actuarial assumption
for the long-term interest rate from 7.5% to 7.2%.
BUSINESS IMPACT ESTIMATE
In accordance with Section 166.041(4), Florida Statutes, the City of Miami Beach is required to assess whether a Business Impact
Estimate is required for the subject ordinance. As noted in the attached and published on the City's website
(bnps://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/) on April 26, 2024, a Business Impact Estimate is not required
for the subject ordinance as it is required for compliance with Federal or State law or regulation.
LOBBYIST DISCLOSURE
In accordance with Resolution No. 2023-32857, adopted by the City Commission on December 13, 2023, the following information
has been provided by the primary item sponsor as it relates to the subject ordinance:
1. Was the Agenda item initially requested by a lobbyist which, as defined in Code Sec. 20481, includes a principal engaged in
lobbying? No
2. If so, specify name of lobbyists) and principal(s): N/A
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
Gabriel Roeder Smith and Company, a national actuarial and benefits consulting firm, has issued a no -cost actuarial impact
statement (attached) based on the proposed ordinance.
CONCLUSION
The Administration recommends amending Part I, 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."
Based on the foregoing, the Administration recommends that the City Commission approve the proposed ordinance on Second
Reading.
Applicable Area
Not Applicable
Is this a "Residents RiabSto Does this item utilize G.O.
Know" Item,pursuant to Bond Funds?
Ci y Code Section 2-14?
No No
Strategic Connection
Non -Applicable
Legislative Tracking
Human Resources
-4ponsor
Mayor Steven Meiner
ATTACHMENTS:
Description
D Proposed Ordinance Change
D Request for Amendment to the Fire/Police Pension Ordinance
D Ordinance
D ORS Letter
D BIE - Pension System for Fire and Police 1108
9501h Meeting of the Board of Trustees
Mardi 16, 2023
Update the interest rate for the definition of actuarial equivalence
Ms. Jones explained that actuarial equivalence in this plan is used in two different circumstances:
1. To determine life expectancies if the surviving spouse was married to the deceased member for
less than 10 years, or the domestic partnership was registered for less than 10 years, then the
benefits are payable for a period no longer than the normal life expectancy of the deceased
member at time of death.
2. To convert one form of benefit payment to another form of benefit payment. For example, to
convert the standard benefit to a 10 -year certain and life benefit, or life of member only benefit, or
joint and survivor benefit.
For all purposes of actuarial equivalence, Ms. Jones recommended reducing the current long-term interest
rate from 7.5% to 7.2% beginning October 1, 2023. At this time, she does not recommend a change to the
mortality tables as the current mortality tables used for funding and actuarial equivalence are the same.
Ms. Jones explained that keeping the definition of actuarial equivalence up to date assures that the optional
forms of payment are priced fairly for both the members and the Plan and life expectancies are properly
determined. An actuarial impact statement would be issued showing no cost on funding for these changes.
'Trustee Johnson made a motion to change the plan's definition of actuarial equivalence by adopting the
recommended long-term interest rate of 7.2% effective October 1, 2023. The change shall be applied when
a beneficiary benefit is limited to a period no longer than the normal life expectancy of a deceased member
at the time of death and when calculating optional:forms_ of benefit payments. The motion_ was seconded
by Trustee Nicholas and unanimously carried:.
TOCQUEVILLE ASSET MANAGEMENT L.P.
JOHN T. ROCHFORD — PORTFOLIO MANAGER
JOE ZOCK — PORTFOLIO MANAGER
Portfolio Review
Joe Zock and John T. Rochford reviewed in detail the investment commentary of the Fire and Police fixed
income portfolio as'of December 31, 2022.
ORDINANCE NO. 2023-4533 PASSED AND ADOPTED BY THE CITY COMMISSION ON FEBRUARY
1, 2023
A copy of Ordinance No. 2023-4533 was provided in the Agenda packet. In summary, the pension changes
are: (Attachment #5)
Sec. 62. Definitions:
• To amend the definition of Actuarial Assumptions (for the calculation of optional forms of benefits).
Sec. 76. Board of Trustees:
To amend the Board of Trustees' -term from 2 years to 3 years and to stagger elections annually.
Sec. 65. Computation of creditable service; service record; and
Sec. 90. Benefits for members hired on or after May 8, 2019, for International Association of Firefighters,
Local 1510 (IAFF) and on or after July 31, 2019, for Fraternal. Order of Police, William Nichols Lodge No. 8
(FOP) -
• To allow Firefighters, regardless of date of hire, to receive service credit under the Fire and Police
Plan for prior service under the Miami Beach Employees' Retirement Plan.
1109
Bureau of Local Retirement Systems
Municipal Police Officers' & Firefighters' Trust Funds' Office
P.O. Box 3010
Department of
MANAGEMENT Tallahassee, FL 32315-3010
Tel: 850-922-0667 1 Toll -Free: 877-738-6737
SERVICES
Division of Retirement Ron DeSantis, Governor
Pedro Allende, Secretary
May 15, 2023
Ms. Donna Brito
City of Miami Beach
1691 Michigan Avenue Suite 335
Miami Beach, Florida 33139
Dear Ms. Brito:
We have completed our preliminary review of the 2022 Annual Report for the Miami Beach Firefighters'
& Police Officers' Pension Fund.
Based on that review, listed below are items that need corrections, clarification and/or additional
information.
o- Page 5 -Cancer Presumption - We are in receipt of your explanation for not having a
modification in ordinance, however, due to the potential cost to the plan, an impact statement
and ordinance should. be submitted.
Please be advised that ss. 175.121(2) and 185.10(2), require that in order for a municipality or special
fire control district and its pension fund to participate in the distribution of premium tax moneys under
Chapters 175 and 185, F. S., all the provisions of these chapters shall be complied with annually,
including state acceptance pursuant to Part VII of Chapter 112, F. S. If you receive a notice from the
Local Retirement Section (LRS) that the plan is "not state accepted," or there is some outstanding issue
that the LRS office is waiting on, please provide a prompt response so as not to jeopardize release of
your state premium tax moneys.
If you have any questions or need further information, please call our office at 850-922-0667.
Sincerely,
Julie Browning, Accountant IV
Municipal Police Officers' and
Firefighters' Retirement Trust Funds
JB: kf
1110
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Ll'VINSON
MEMORANDUM
To: Board of Trustees
From: Klausner, Kaufman, Jensen & Levinson
Re: SECURE 2.0 Act
Date: January 5, 2023
On December 29, 2022, as part of the federal government's year-end spending deal, 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. The goal of the
legislation is improved retirement savings opportunities for workers. This memo will highlight
important amendments relevant to public safety officers and governmental plans.
Public Safety Officers
Under current law, there is an exclusion for gross income ($3,000) for a distribution from
a governmental retirement plan to a public safety officer to pay for his or her health
insurance premiums. The exclusion requires that the premiums must be deducted from
pension checks and paid by retirement systems directly to insurers for retirees to qualify
for a tax exclusion. The SECURE 2.0 Act repeals these direct payment requirements.
Effective for amounts received in taxable years beginning after December 31, 2026, the
SECURE 2.0 Act permits first responders to exclude service -connected disability pension
payments from gross income after reaching retirement age.
Currently, the 10 percent additional tax on early distributions from tax preferred retirement
savings plans does not apply to a distribution from a governmental plan to public safety
officers who are at least 50 years old. The SECURE 2.0 Act extends this exemption to
public safety officers with at least 25 years of service with the employer sponsoring the
plan. Therefore, a distribution from a governmental plan that is made to a qualified public
safety officer after separation from service after attainment of age 50 or 25 years of service
under the plan is exempt from the early withdrawal tax.
Additionally, SECURE 2.0 expands the definition of a qualified public safety employee to
also include any employee of a State or political subdivision who provides services as a
corrections officer.
(00227133.DOCx;1}
Required Minimum Distributions
Under current -law, participants are generally required. to begin taking distributions from
their retirement plans at age 72. The SECURE 2.0 Act further increases the required
minimum distribution age to 73 starting on January -1, 2023, and increase the age -to 75
starting on January 1- 2033.
Additionally, the SECURE 2.0 Act reduces the penalty for failure to take required minimum
distributions from 50 to 25 percent. If the failure is corrected in a timely manner, the penalty
is further reduced from 25 to 10 percent.
Defined Benefit Retirement Plans
• SECURE 2.0 Act extends the ability of an employer to use assets from an overfunded
pension plan to pay retiree health and life insurance benefits from December 31, 2025 to
December 31, 2032.
Please also find attached a section -by -section breakdown of all provisions of the SECURE 2.0
Act.
{00227133.DOCX;1}
1112
SECURE 2.0 Act of 2022
As included in Division T of the "Consolidated Appropriations Act, 2023"
Title I — Expanding Coverage and Increasing Retirement Savings
Section 101, Expanding automatic enrollment in retirement plans. One of the main reasons
many Americans reach retirement age with little or no savings is that too few workers are offered
an opportunity to save for retirement through their employers. However, even for those employees
who are offered a retirement plan at work, many do not participate. But automatic enrollment in
401(k) plans — providing for people to participate in the plan unless they take the initiative to opt
out — significantly increases participation. Since first defined and approved by the Treasury
Department in 1998, automatic enrollment has boosted participation by eligible employees
generally, and particularly for Black, Latinx, and lower -wage employees. An early study found
that adoption of automatic enrollment increased participation in a 401(k) plan by short -tenure
Latinx employees from 19 percent to 75 percent. An Ariel/Aon-Hewitt study found that, in plans
using automatic enrollment, "[t]he most dramatic increases in enrollment rates are among younger,
lower -paid employees, and the racial gap in participation rates is nearly eliminated among
employees subject to auto -enrollment."
Section 101 requires 401(k) and 403(b) plans to automatically enroll participants in the respective
plans upon becoming eligible (and the employees may opt out of coverage). The initial automatic
enrollment amount is at least 3 percent but not more than 10 percent. Each year thereafter that
amount is increased by 1 percent until it reaches at least 10 percent, but not more than 15 percent.
All current 401(k) and 403(b) plans are grandfathered. There is an exception for small businesses
with 10 or fewer employees, new businesses (i.e., those that have been in business for less than 3
years), church plans, and governmental plans. Section 101 is effective for plan years beginning
after December 31, 2024.
Section 102, Modification of credit for small employer pension plan startup costs. The 3 -year
small business startup credit is currently 50 percent of administrative costs, up to an annual cap of
$5,000. Section 102 makes changes to the credit by increasing the startup credit from 50 percent
to 100 percent for employers with up to 50 employees. Except in the case of defined benefit plans,
an additional credit is provided. The amount of the additional credit generally will be a percentage
of the amount contributed by the employer on behalf of employees, up to a per -employee cap of
$1,000. This full additional credit is limited to employers with 50 or fewer employees and phased
out for employers with between 51 and 100 employees. The applicable percentage is 100 percent
in the first and second years, 75 percent in the third year, 50 percent in the fourth year, 25 percent
in the fifth year — and no credit for tax years thereafter. Section 102 is effective for taxable years
beginning after December 31, 2022.
Section 103, Saver's Match. Current law provides for a nonrefundable credit for certain
individuals who make contributions to individual retirement accounts ("IRAs"), employer
retirement plans (such as 401(k) plans), and ABLE accounts. Section 103 repeals and replaces the
credit with respect to IRA and retirement plan contributions, changing it from a credit paid in cash
as part of a tax refund into a federal matching contribution that must be deposited into a taxpayer's
IRA or retirement plan. The match is 50 percent of IRA or retirement plan contributions up to
$2,000 per individual. The match phases out between $41,000 and $71,000 in the case of taxpayers
filing a joint return ($20,500 to $35,500 for single taxpayers and married filing separate; $30,750
1113
to $53,250 for head of household filers). Section 103 is effective for taxable years beginning after
December 31, 2026,
Section 104, Promotion of Saver's Match. Section 104 directs the Treasury Department to
increase public awareness of the Saver's Match to increase use of the match by low and moderate
income taxpayers. The promotion will make clear that the Saver's Match cannot be withdrawn
without incurring penalties, including repayment to the Treasury Department in some cases where
the Saver's Match is withdrawn from an individual retirement account before retirement.
Taxpayers will have an election to designate a retirement account to receive the repaid Saver's
Match. The Treasury Secretary must report to Congress on the Treasury Department's anticipated
promotion efforts no later than July 1, 2026.
Section 105, Pooled employer plan modification. Section 105 clarifies that a pooled employer
0 plan ("PEP") may designate a named fiduciary (other than an employer in the plan) to collect
1 contributions to the plan. Such fiduciary would be required to implement written contribution
collection procedures that are reasonable, diligent, and systematic. Section 105 is effective for
plan years beginning after December 31, 2022.
Section 106, Multiple employer 403(b) plans. Multiple employer plans ("MEPs") provide an
opportunity for small employers to band together to obtain more favorable retirement plan
investment results and more efficient and less expensive management services. The Setting Every
Community Up for Retirement Enhancement Act of 2019 ("SECURE Act") made MEPs more
attractive by eliminating outdated barriers to the use of MEPs and improving the quality of MEP
service providers. Section 106 allows 403(b) plans, which are generally sponsored by charities,
educational institutions, and non -profits, to participate in MEPs and PEPs, including relief from the
one bad apple rule so that the violations of one employer do not affect the tax treatment of
employees of compliant employers. Section 106 is effective for plan years beginning after
December 31, 2022.
Section 107, Increase in age for required beginning date for mandatory distributions. Under
current law, participants are generally required to begin taking distributions from their retirement
,plans at age 72. The policy behind this rule is to ensure that individuals spend their retirement
savings during their -1ifetime and not use their retirement plans for estate planning purposes to
transfer wealth to beneficiaries. The SECURE Act of 2019 increased the required minimum
distribution age to 72. Section 107 further increases the required minimum distribution age further
lo 73 starting on January 1, 2023 — and increases the age further to 75 starting on January 1, 2033.
Section 108, Indexing IRA catch-up limit. Under current law, the limit on IRA contributions is
increased by $1,000 (not indexed) for individuals who have attained age 50. Section 108 indexes
such limit and is effective for taxable years beginning after December 31, 2023.
Section 109, Higher catch-up limit to apply at age 60, 61, 62, and 63. Under current law,
employees who have attained age 50 are permitted to make catch-up contributions under a
retirement plan in excess of the otherwise applicable limits. The limit on catch-up contributions
for 2021 is $6,500, except in the case of SIMPLE plans for which the limit is $3,000. Section 109
increases these limits to the greater of $10,000 or 50 percent more than the regular catch-up amount
in 2025 for individuals who have attained ages 60, 61, 62 and 63. The increased amounts are
indexed for inflation after 2025. Section 109 is effective for taxable years beginning after
December 31, 2024.
2
1114
Adams, Marvin
From: Alpizar, Marla
Sent: Monday, January 22, 2024 8:39 AM
To: Adams, Marvin
Cc: Walthour, Sonia
Subject: Fwd: REQUEST FOR AMENDMENT TO THE FIRE & POLICE PENSION ORDINANCE
Attachments: Proposed Ordinance Change (10 pages).pdf
Please do item as requested
Sent from my Whone
Begin forwarded message:
From: "Brito, Donna" <DonnaBrito@miamibeachfl.gov>
Date: January 22, 2024 at 8:33:40 AM EST
To: "Alpizar, Marla" <MarlaAlpizar@miamibeachfl.gov>
Cc: "Johnson, Paul" <PaulJohnson@miamibeachfl.gov>, "Feldman, Steven"
<StevenFeldman@miamibeachfl.gov>, Stuart Kaufman <stu@robertdklausner.com>, "Garcia, Adonis"
<AdonisGarcia@miamibeachfl.gov>, "Hernandez, Robert"<RobertHernandez@miamibeachfl.gov>,
"Estevez, Frank"<FrankEstevez@miamibeachfl.gov>, "Walthour, Sonia"
<SoniaWalthour@miamibeachfl.gov>
Subject: REQUEST FOR AMENDMENT TO THE FIRE & POLICE PENSION ORDINANCE
Good Morning,
The Fire and Police Pension Office is respectfully requesting that a proposed ordinance change for the
City Pension Fund for Firefighters and Police Officers in the City of Miami Beach be presented to the City
Commission (Plan Sponsor) at the February 2024 City Commission meeting. The Plan's legal counsel,
Stuart Kaufman from Klausner, Kaufman, Jensen and Levinson (KKJL), has prepared the attached
proposed ordinance that reflects the following changes:
1. Section 62: Definitions. Actuarial Assumptions (for the calculation of optional forms of benefits)
means the following interest rates compounded annually. Please see attached motion approved
at the March 16, 2023, board meeting (page 5).
2. Section 66: Service and disability benefits generally. Please see attached letter dated May 15,
2023, from the Florida Division of Retirement requiring a modified ordinance to include the
conclusive firefighter cancer presumption established by section 112.1816, Florida Statutes
(page 6).
3. Section 84: Distribution limitation. Please see memorandum dated January 5, 2023, from KKJL,
regarding the federal SECURE 2.0 Act of 2022 which increases the required minimum
distribution age (page 7).
The Board's actuary, Gabriel Roeder Smith and Company, has confirmed that they will issue a no cost
actuarial impact statement based on the attached proposed ordinance.
Thank you in advance for your cooperation.
1115
Regards,
Donna Brito
Executive Director
City of Miami Beach Fire and Police Pension
Phone: 305-673-7039
Email: donnabrito@miamibeachtl.gov
1116
ORDINANCE NO. 2024 -
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 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
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:
Actuarial Assumptions (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.%
1117
effective for the plan year beginning October 1, 2011; 8.1.% effective for the plan year
beginning October 1, 2012; and 8.0.% effective for the plan years beginning October
1, 2013, 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.
Sec. 66. - Service and disability benefits generally.
Q) Nonrebuttable conclusive cancer presumption: The provisions of Section 112.1816,
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.
Sec. 84. -Distribution Limitation.
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 members death:
(1) For members who attain age 7370 -and 11= on or after January 1, 2429 2023, provided
the member had not attained ape 72 by December 31, 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 741h, 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;
%-I F_ membem who attaIR age 70 and 14 OR eF afteF jasuaFy 1, 2020, it shall eitheF be
1)
1118
(2) The distribution shall commence not later than the calendar year defined above; and
(a) shall be paid over the life of the member or over the lifetimes of the member and
the member's designated beneficiary or (b) shall be paid over the period extending not
beyond the life expectancy of the member and the member's designated beneficiary.
Where a form of retirement income payment bas 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.
(ii) 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 731nv �'.ne 77 fnr.,,c,mhorc u,L+n o++�in r+r.an„Iri Ftmt��ffainn�
70' ' OR oranerjanuar-y 1, 2820) 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.
3
1119
SECTION 2. REPEALER.
All ordinances or parts of ordinances and all section and parts of sections in conflict
herewith are hereby repealed.
SECTION 3. CODIFICATION.
It is the intention of the City Commission, and it is hereby ordained, that the provisions of
this Ordinance shall become and be made part of the Code of the City of Miami Beach, as
amended; that the sections of this Ordinance may be re -numbered or re -lettered to accomplish
such intention; and that the word "ordinance" may be changed to "section" or other appropriate
word.
SECTION 4. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect ten days following adoption.
PASSED and ADOPTED this day of , 2024.
ATTEST:
Rafael E. Granado, City Clerk
Underline denotes additions
SbikeMFeu o denotes deletions
(Sponsored by Mayor Steven Meiner)
Steven Meiner, Mayor
APPROVED AS TO
FORM AND LANGUAGE
& FOR EXECUTION
City Attorney Date
4
1120
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 35S
Miami Beach, Florida 33139
Re: Actuarial Impact Statement
Dear Donna:
P- 91Sd 52'1.1616 F-954.525.0083 rnv-vcomu1trn8.CQ—
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.
S. 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.
1121
Ms. Donna Brito
April 3, 2024
Page Two
If you should have any question concerning the above or if we may be of further assistance with this matter,
please do not hesitate to contact us.
Sincerest regards,
Gabriel, Roeder, Smith & Company
T1't-1h j'�
Shelly L. Jones, A.S.A., E.A., F.C.A., M.A.A.A.
Consultant and Actuary
Enclosure
cc: Mr. Frank Fstevez
1122
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO: Honorable Mayor Steven Meiner and Members of the City Commission
FROM: Rickelle Williams, Interim City Manager D
METTING 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 !X, 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.
VY,es
Business Impact Estimate Required?
❑ 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.
0/ 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_ proposedOrdinance 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,
development orders, development agreements and development permits;
b. Sections 190.005 and 190.046, Florida Statutes, regarding community
1123
Business Impact Estimate
Page 2
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:
If none of the above exceptions apply, this Business Impact Estimate is hereby provided
in accordance with Section 166.041(4), Florida Statutes.
1. The Commission Memorandum accompanying the Ordinance and the recitals to the
Ordinance itself, which are attached hereto, provide a more complete summary of the
proposed Ordinance and its purpose.
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 businesses are likely to be impacted
by the proposed Ordinance.
4. Additional comments:
1124
Pal
Ordinances - R5 E
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Rickelle Williams, Interim City Manager
DATE: May 15, 2024
10:30 a.m. Second Reading Public Hearing
SUBJECT: 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 DATE.
RECOMMENDATION
The proposed Ordinance is sponsored by Mayor Meiner and is submitted for
consideration on Second Reading at the May 15, 2024 Commission Meeting. On
April 3, 2024, the Mayor and Commissioners adopted the proposed Ordinance on
First Reading. No changes have been made between First and Second Reading.
A summary of the proposed Ordinance is set forth below.
BACKGROUNDIHISTORY
The City of Miami Beach has the following five (5) classified employee groups that
are represented by bargaining. units,
• Group I - Represented by the American Federation of State, County and
Municipal Employees (AFSCME) Local 1554;
1125
• Group II - Represented
Nichols Lodge No. 8;
• Group III - Represented
(IAFF) Local 1510;
CGroup IV - Representec
A) Local 3178; and
by the Fraternal Order of Police (FOP) William
by the International Association of Firefighters
by the Communications Workers of America
Group V - Represented by the Government Supervisors Association of
Florida (GSAF), OPEIU, Local 100
In addition, the City has one classified employee group, Group VI, comprising all
other classifications in the classified service not covered by a bargaining unit. This
group is commonly referred to in the City of Miami Beach as "Others". There is a
seventh salary group comprised of at -will employees commonly referred to as
Unclassified.
Employees represented by the FOP and IAFF are eligible for a defined benefit
pension plan governed by Part I, 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."
All other full-time employees are eligible for a defined benefit pension plan
governed by Part I, Subpart B, Article VI, Related Special Acts, of The Miami
Beach City Code entitled "Pension and Retirement System for Officers and
Employees Generally."
Under current law, participants are generally required to begin taking distributions
from their retirement plans at age 72.
Under section 112.1816, Florida Statutes, if a firefighter participates in an
employer-sponsored retirement plan, the retirement plan must consider the
firefighter totally and permanently disabled in the line of duty if he or she meets the
retirement plan's definition of totally and permanently disabled due to the diagnosis
of cancer or circumstances that arise out of the treatment of cancer. The Fire and
Police Pension plan document currently lacks language regarding the cancer
presumption for firefighters.
On May 21, 2020, The Fire and Police Pension Board voted to change the plan's
definition of actuarial equivalence by adopting the recommended long-term interest
rate of 7.5%, effective October 1, 2020.
ANALYSIS
The Administration and the Fire and Police Pension Board wish to amend the Fire
& Police Pension Plan to increase the required minimum distribution age to 73
starting on January 1, 2023. This amendment will bring the plan in compliance with
the Consolidated Appropriations Act of 2023, which contains tax -related retirement
1126
legislation, commonly known as the SECURE 2.0 Act of 2022.
The Administration and the Fire and Police Pension Board wish to amend the Fire
& Police Pension Plan to include the conclusive firefighter cancer presumption
established by section 112.1816, Florida Statutes. This amendment will bring the
plan in compliance with the Florida Statutes and all other applicable laws.
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 of 7.2% effective October 1, 2023. This amendment will change' the actuarial
assumption for the long-term interest rate from 7.5% to 7.2%.
In accordance with Resolution No. 2023-32857, adopted by the City Commission
on December 13, 2023, the following information has been provided by the primary
item sponsor as it relates to the subject ordinance:
1. Was the Agenda item initially requested by a lobbyist which, as defined in Code
Sec. 20481, includes a principal engaged' in lobbying? No
2. If so, specify name of lobbyist(s) and principal(s): N/A
SUPPORTING SURVEY DATA
NIA
FINANCIAL INFORMATION
Gabriel Roeder Smith and Company has issued a no -cost actuarial impact
statement based on the attached proposed ordinance (attached).
The Business Impact Estimate (BIE) was provided and published in accordance
with Section 166.041(4), Florida Statutes.
CONCLUSION
The Administration recommends amending Part I, 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."
Based on the foregoing, the Administration recommends that the City Commission
approve the proposed ordinance on first reading and set the ordinance for second
reading May 15, 2024.
Applicable Area
Not Applicable
1127
Is this a 'Residents Right
to Know" item, pursuant to
City Code Section 2-14?
No
Strategic Connection
Non -Applicable
Legislative Tracking
Human Resources
Sponsor
Mayor Steven Meiner
Does this item utilize G.O.
Bond Funds?
No
ATTACHMENTS:.
Description
❑ Proposed Ordinance Change
❑ Request for Amendment to the Fire/Police Pension Ordinance
❑ Ordinance
❑ QRS Letter
1128
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:
P 954 5171616 F 954 525.0083 — grsconsulang.com
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.
S. 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.
1129
Ms. Donna Brito
April 3, 2024
Page Two
If you should have any question concerning the above or if we may be of further assistance with this matter,
please do not hesitate to contact us.
Sincerest regards,
Gabriel, Roeder, Smith & Company
j4�
Shelly L. Jones, A.S.A., E.A., F.C.A., M.A.A.A.
Consultant and Actuary
Enclosure
cc: Mr. Frank Estevez
AGRS
1130