Supplemental_Nov17-10 red ocrlD MIAMI BEACH
City Commission Meeting
SUPPLEMENTAL MATERIAL
City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive
November 17, 2010
Mayor Matti Herrera Bower
Vice-Mayor Michael G6ngora
Commissioner Jorge Exposito
Commissioner Jerry Libbin
Commissioner Edward L. Tobin
Commissioner Deede Weithorn
Commissioner Jonah Wolfson
City Manager Jorge M. Gonzalez
City Attorney Jose Smith
City Clerk Robert E. Parcher
Visit us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings.
ATTENTION ALL LOBBYISTS
Chapter 2, Article VII, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the
registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City
Commission, any City Board or Committee, or any personnel as defined in the subject Code
sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office.
Questions regarding the provisions of the Ordinance should be directed to the Office of the City
Attorney.
SUPPLEMENTAL AGENDA
R5 -Ordinances
R5B An Ordinance 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"; Implementing Provisions Of The 2009-2012 Collective
Bargaining Agreements Between The City And Fire Fighters Of Miami Beach, IAFF Local
1510, And Miami Beach Fraternal Order Of Police, William Nichols Lodge No.8; Amending
Section 65 Entitled "Computation Of Creditable Service; Service Record", Providing For The
Purchase Of Additional Creditable Service Upon Completion Of Ten Years Of Service With
The City; Amending Section 66 Entitled "Service And Disability Benefits Generally," Providing
For The Inclusion Of Compensation For Certain Off Duty Services In A Member's Salary For
Pension Purposes, And Providing For The Sale Of Unused Sick And/Or Vacation Time For
Inclusion In A Member'S Final Average Monthly Earnings, Subject To Certain Limitations;
Revising The Limitation On Overtime Pay Included In Salary For Pension Purposes;
Amending Section 67, Entitled "Cost-Of-Living Adjustment", Providing For An Annual
Adjustment On The Anniversary Date Of A Member's Retirement Or Separation From
Employment; "Amending Section 79 Entitled "Deferred Retirement Option Plan", Providing For
A Maximum Drop Period Of Sixty Months And A Modified Cost Of Living Adjustment During
The Drop Period; Creating A New Section 87 Entitled "Benefits For Employees Hired On Or
After July 14, 2010"; Providing For Severability; Repealing All Ordinances In Conflict
Therewith; And Providing For An Effective Date.
(Human Resources)
(Ordinance)
Supplemental Agenda, November 17, 2010
R5 -Ordinances (Continued)
R5C An Ordinance Amending The Miami Beach Employees' Retirement Plan; Implementing Provisions Of
The 2009-2012 Collective Bargaining Agreement Between The City And Communications Workers Of
America, Local 3178; Providing For Severability; Repealing All Ordinances In Conflict Therewith; And
Providing An Effective Date.
(Human Resources)
(Ordinance)
ii
ORDINANCE IMPLEMENTING PENSION PROVISIONS OF
2009-2012 IAFF AND FOP COLLECTIVE BARGAINING AGREEMENTS
ORDINANCE NO. ___ _
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, 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"; IMPLEMENTING
PROVISIONS OF THE 2009-2012 COLLECTIVE BARGAINING
AGREEMENTS BETWEEN THE CITY AND FIRE FIGHTERS OF
MIAMI BEACH, IAFF LOCAL 1510, AND MIAMI BEACH
FRATERNAL ORDER OF POLICE, WILLIAM NICHOLS LODGE
NO.8; AMENDING SECTION 65 ENTITLED "COMPUTATION
OF CREDITABLE SERVICE; SERVICE RECORD", PROVIDING
FOR THE PURCHASE OF ADDITIONAL CREDITABLE
SERVICE UPON COMPLETION OF TEN YEARS OF SERVICE
WITH THE CITY; AMENDING SECTION 66 ENTITLED
"SERVICE AND DISABILITY BENEFITS GENERALLY",
PROVIDING FOR THE INCLUSION OF COMPENSATION FOR
CERTAIN OFF DUTY SERVICES IN A MEMBER'S SALARY FOR
PENSION PURPOSES, AND PROVIDING FOR THE SALE OF
UNUSED SICK AND/OR VACATION TIME FOR INCLUSION IN
A MEMBER'S FINAL AVERAGE MONTHLY EARNINGS,
SUBJECT TO CERTAIN LIMIT
"AMENDING
"DEFERRED RETIREMENT OPTION PLAN", PROVIDING FOR
A MAXIMUM DROP PERIOD OF SIXTY MONTHS AND A
MODIFIED COST OF LIVING ADJUSTMENT DURING THE
DROP PERIOD; CREATING A NEW SECTION 87 ENTITLED
"BENEFITS FOR EMPLOYEES HIRED ON OR AFTER JULY 14,
2010"; PROVIDING FOR SEVERABILITY; REPEALING ALL
ORDINANCES IN CONFLICT THEREWITH; AND PROVIDING
FOR AN EFFECTIVE DATE.
I Agenda Item 85.6
Date 11-17-/D
Section 1. Effective September 30, 2010 for members who retire on or after that date,
Section 65 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami Beach City
Code, is amended to read:
Sec. 65. -Computation of creditable service; service record.
(a) A member's Creditable Service shall include all periods of time of actual
work for which wages or salaries were received by the member in the service of the
fire or police department and, notwithstanding anything to the contrary in this
article, all time served in the unclassified service of the City as provided in section
70, whether it be provisional, probationary or regular work or employment, and
whether or not such periods are interrupted, together with all service in the
uniformed services of the United States required to be included under section 82;
provided, however, that only periods of service in the uniformed services of the
United States for which the member makes the member contributions as provided
for in section 82 shall be Creditable Service for purposes of computing the amount
of the member's benefit from the System. Notwithstanding any provision to the
contrary, in no event shall the same period of service be counted more than once as
Creditable Service under this System.
(b) Members who become members of this System in order to receive credit for
service rendered prior to their becoming a member shall make contributions to the
Fund in the amount such member would have contributed had he been a member
during the period of service for which credit is being purchased. In order to receive
such credit, members shall make payment within six months after becoming a
member or within such other period as may be provided in a bargaining agreement
covering the member. Notwithstanding the foregoing, any member who transfers to
this System whereby the accumulated total credit in any other pension system ofthe
City is transferred to this System, then and in that event, all ofthe creditable service
time in such other system shall be considered Creditable Service time under this
System, and such member need make no additional contribution for time credited.
2
(c) The Board shall establish the service record of all members who may be
entitled to participate in the benefits of this System, and shall keep a record thereof.
(d) Members with ten (10)W or more years of creditable service who are
eligible to receive nonnal or early retirement benefits under the System may
purchase additional creditable service under the System for up to two (2) years of
full-time public safety service as a law enforcement officer or firefighter prior to
City employment, provided the member is not entitled to receive a benefit for such
service under another pension plan, and further provided that the member may not
purchase a combined total of more than four (4) years of creditable service for prior
public safety service and prior military service, and further subject to limitations
contained in sec. 66 (j). The cost for each year of creditable service for prior public
safety service purchased shall be the same rate as provided in sec. 82(b) for the
purchase of prior military service, with the cost prorated for fractional years of
service. For purposes of this purchase, a member may use the value of accrued sick
and/or annual leave, valued at the member's hourly rate at the time of purchase. The
purchase of additional creditable service provided in this subsection (d), must be
completed within twenty fOl:l:f (24) thirt~";§lx(3~1 months following September 30,
2010, or within twenty fol:l:f (24) ~J.~~~j;(g6l months following a member's
completion often (10) years of creditable service under the pension plan, whichever
occurs later for the member. If a member does not complete the purchase of
additional creditable service provided in this subsection (d) within the twenty fol:l:f
@41 t!!lriY~~~,;l:36) month period, he/she shall not be eligible for Stl~~~ purchase
in the future.
lel::·),::~NotWit~st~diti,g:jtii~1~ntdYis!Qn~[:,d(&~~!i()n!t.~~{~E;;@'<li~ig~ptlo~v~lf8~fi1)jiittb.e
p~c?l1~~e b~#44~t~Ql1~1\};~i~~it~bl~;,~~~~S~!f~#:lfrid~1l~bif6ii~ij~~~\:~~~~~~~§~&l~{t&
~~ctibri65(4l~ •. ~arlli~:;R~~8h~se:§f>~ddtti~~~I·;gf~cIi~~ljle~'~~~b@)irdi«Y¢Wf~~!tlfl;~bti~~
fulnt~.,·setiliSe: ••• ·ptlt%t,.td0:@iMr:··~iliP1(}Y!i!erlti .. ,.plifstianf~1td0~gBti6h~ ..• ·.·8:!i'~Bl~l~i$.tist;~.b6
GqmplcitW.·:Withirt.thiitY~~1X·J361:rn()tIt~Sdfoil~!tg~:er;fSfuber}3d~.·g~i6i'}~~~it1lifi
3
thirty-six (3611Ilonths· following a member's completion of ten (10) years .of
credita\)leseryiceuncier the pension plm 'Yllichevero<;cursl(lt~rforthe memb~!.
If· a.· 1Ilt:Inbe1;does !l()t complete .... thepllTchase of additiori~lcr~ilitable·. service as
providedfuse<;tion 65(d) or secti6n82(11)within the. thi:rij;six(36}month period,
he7she$h~!l!l()rbe eligjbh~ for sll"chpurchase in the fu:tuf~.
Section 2. Effective September 30,2010 for members who retire after that date, except as
otherwise specifically provided below, Section 66 of Part 1, Subpart B, Article IX, Related
Special Acts of the Miami Beach City Code, is amended to read:
Sec. 66. -Service and disability benefits generally.
(a) The Board shall, upon application retire members meeting anyone of the
following requirements:
(1) The attainment of age 50.
(2) Permanent and total disability incurred in line of duty in the police
or fire department, or in the unclassified service as provided in
section 70, irrespective of the number of years of Creditable Service.
(3) Permanent and total disability incurred other than in the line of duty,
after five years of Creditable Service.
(4) The sum of the member's age and Creditable Service equals at least
70 and the member retires on or after October 1, 1998.
(5) Only for periods prior to October 1, 2000 and only in the case of a
May 1993 Member, the attainment of age 55 with at least 10 years of
Creditable Service.
(b) A member, other than a May 1993 Member who retires prior to October 1,
2000, shall be entitled to receive upon retirement under subsection (a), a monthly
pension payable for life equal to:
4
(1) Three percent ofthe member's average monthly Salary for each year
of the member's first 15 years of Creditable Service, being computed
as to a part of a year on a pro rata basis to the nearest month; plus
(2) Four percent of the member's average monthly Salary for each year
of the member's Creditable Service in excess of 15 years, being
computed as to a part of a year on a pro rata basis to the nearest
month.
(c) A May 1993 Member who retires prior to October 1, 2000, shall be entitled
to receive upon retirement under subsection (a) a monthly pension payable
for life equal to three percent of the member's average monthly Salary for
each year of the member's Creditable Service, being computed as to part of
a year on a pro rata basis to the nearest month.
(d) For purposes of determining a member's benefit, the average monthly Salary
of the member shall be based on the average ofthe two highest-paid years of
the member prior to the date of retirement or termination, or the average of
the last two paid years of the member prior to the date of retirement or
termination, whichever produces the greater benefit for members employed
by the City before May 19, 1993, and shall be based on the average of the
three highest paid years of the member prior to the date or retirement or
termination for May 1993 Members. For purposes of such calculation,
Salary shall be the Salary upon which the member's contribution to the
":'-,':f,<:'.':,:; ~<;?(:r' ':;'.',:\,' " "'" :(~~:,:;\i;>,-, T,','>l:"' ':',,~;;~,'~/~'~?,:~':;-;~:-\'f{~T~r:>~T(T"~'i,·1j J7t"~.Y;·:>~«," /::. > X';~,\ '{~~',\\:':'~" >((, ,: ~"~';:,;,n ~;;;,
System was computed~',(~a$\~~RroV!cl¢cl1'{tfi};I!ar~&t~1Ws,ir'~~i~\~i@a··'fg~;:j:l?e16)!;
ffi,With respect to a !fitefi~t~i member employed before May 19,
1993, and retiring on or after October 1, 1994, the inclusion of overtime in
the member's Salary for the two highest-paid years or last two years, as the
case may be, shall be limited in each year to an amount whichlt,;i;rf~~
gortl.tHlied··wiilii:i.c6fup6riS'~tf6h~;fdI,:··.off···dt:W(,~~Mc@siiiaft(fPth~~\?~ltibi;::;~ii;.~y
~~ditl~d'gi(jk·artdl6rVa~~1:lori.leaV"e'iliat isin8i~~~~'ih'~~ili~tiibcit?,~S~I~;fdr
5
pension contribution and benefit purposes, is equal to J 1 % of the highest
annualized pay rate for the SaII1e salary rank that the mell1peris inat.tinl~2f
reti!~ll1ent· 70%o(th~,d~ffer~e behyeen. the. merrrber't!anri4Eilipedpajd,ate
¥.retirem:ent 8:l1dthelIighe~tl#li1ualiz;ecl pay' ~te'forthei nexthigher~~
~;b~t . in.m?eYf~4tslHilfglcb. met:Il:Qer'~. ~ccru~dp~efiforihis4~:!¢t)f
J:$feiilent be *~S$·thm1t~ •. b~~efit lW hadooqnied~~.9fgep~er$()~ 199ff,
~t~lll1ineq.·.~.~t1l~l~$·of~ •.• ~ys{@ •• m· •• ~ff¢qi.·qp;th~tElat~. Effective
July 14, 2010, all compensation received by a m~:fi@ibI: member ~h&:js
~Iimble<'!Qrpve#i!li~na~'\}iri(lwlidr~eiy~s>na~ifor off duty services
performed after that date for which compensation is received through the
City shall be included in a sU~ll member's Salary for pension contribution
and benefit purposes; provided, in no event shall su~l'iijcb1fiperiSatio~:ffi:filiff
cl~!&i~~mdes~~inc()11l1.i!hati&ri.~ith. any •• ·~§~iti#i~;P8;Y;·.a:Eia;HhciJ'iftt1U¢,o~itij!
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Qf'Th~jill~~kt@ua1iiedrp~y·r~t&.for •. ·thei.Sfuneis~tarM~?~kYthi{titll@:rtibiHs'eE
r~:lti\~itihiei~~£.ietii~MeJiE:~:\'··· ·····3ifrS ... ~t;+ ·'.":i'%S'7:(i·; ··.·;.'?~'·.r . . ..... Jl; .w.. ..... 1.1:. ..... ... ... ...!!ffl};n¥!!~L3:J!'~HJi!mQX!§!!L!!'LJlm!!t!f}Q!l§
@@ii!.~4i~:tru§:~~ct~Q~··§6J For fuefi@it~1.members['~W~6r1·~¥;;~ligi~1<d~
~YVe!1l~·m.~latid~iwho retire on or after September 30,2010, upon reaching
eligibility for .~j] retirement ~~l~:!~J~!igl~~~:~~, ~!,tTI~£riB~~~m~
~1~bitt~~';1l~tmt~:~;Q!J~s~d~~~i§~\'!·Ph9.';~~~d"g~~ff~m'~lk·~~g~;rf&tJ~ni.~~I~!i~'Dl15:iirt!"~tij~
ITt~lTi~~~~~%$1~f~~!Zt$t!:e~6l~!~;~iYcdH~1~oIT~~:(;1W~f:;~~ft~fi!ft~~f~8~W~~ ~f'~~~fg~fe$~
~l~~rc;,.0:§~!;~t~~.'y~JQ:~i;.df •. ffu~~;!g¥·.~!1~t~.:/:~:E~l::·~§f~~:;lj;~Q~QQ·~;.2f~;~~·d~~cl~~~i~~
Y~I~~i;Af~i.t.~~~P~lT!~!!~.~I~Er~E~L~r.rrd~dfi~~~ll.!t~~~·l~~~il1~~am~m:~~:~~tij;f9P~
d~~f:tirri·;;; •• §d~· •• cih~;!t~(}~~~~~ti6fi\ ••• ·f9I,;.§ff'?:·a~t~i:.i~~fi\t£d~§;.!~,~~~~~~a~;i~i~~;;·~
I1l~m~~t:~~· SalWYf()rfRe~{)rl·~~fuputidHii#~.1)~Ilefi~pmPd§~~;~x~~~~:;i11~~
6~the.Mggest.· ati##ill~bdp~y·.ratefdf .the ··sarii~~~ict¥;i~,lli~t.t}jettl~nib~f
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is' in at time of retirement, a member may sell all or a portion of his/her ... .. . .' .' . . ... .
accrued.' sick and/or yac~()n .1eaye,.yalued'. (it thelllember'~"hburly.rate{it
that time,<an<iaI!pfjf the 'I!roeeeds()(slwl1sale u!Q.!poh4ember' s.a~;etage
monthly:Sal€ll)r; pfo:'rj@ed,.th~PrQc~edS bfruwsuClj salesnartbe-§Ubjebt to
tb~ m@W~c()!ili!bY!!Q!!,··§~t"'f9!!b .In§~o:-6~;a@.,filithernfO'4d~(kiirt_no
~Ylerit,§lj@.~'.rIiem!?~J?s.lJe1i~fi:t~ice~4 __ !h~rilax!myni,·~@,~t!t~m:r;iSi®~~d
liillitatlense6ritamedmtllls .'s0OO61t 6-6.
t21i.Wiill~&sne~t".t&:;a,:~~lib6 •. ·:6ffi9el-rti~tfibef.~IDlilQVeaiBefofi·MiiY
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Wit4e;lli6rii~~rf.§:~a1~.t~!.~~~·;fflt~ ••• ·I1igJj~st+Pald.·y~~s~.6f:.:l~~~;.~~.;¥~~§~.f~
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7
accrued as of September 30, 1994,' determined. under the· terms. of the
Syste1J1.ineffect on that date. forpoli(;~:officer memlJer:syvhoareeligible
for •. ov~rtifu~<payand . whoretir~bnor. after$eptelTIller>30i2610~11l!on
re~~hirig:~!i.gi1:>ilityf()r· ti()Illlarreti!:~1!l~~t? ar11~mber.lljoX~I~tHt();dpply
l)nlJs~d(~i.~~:.9!1dL()r • v,acdti91l.·.leaY~f§.FJn~IJ~i9!1·jrltb~.I1'l~M~~.e¥~.S(JI.(lrY. for
p~n~i~h.9()riiH8~tl<:>h:.ci·~db~~efif'E(srR9~~siJ?t~.·.·d~~t()f.1~Q%L9fth~:~~r4e ••. of
tME!&h.~~~~·.~!E15.(lr1·cJl()r.·x~c~I~()~ •• ·.I,~d~~E{9t.m~.·rQ~rl!!:>.~rf~L~~ff~~f'~9Jil~if~t~ ) .
. ~r~Jia~~i~\lri·;·~~i~"en6~991l···Jll~J:··Y~lu~;~t·~~~~iOnO¥~g·";~i.~~;.q~:a~9~:J .. Y~~~f!~n
!ifu~f~WH:~~i~4()rri~ir}~~:.Vl1!~J,gh1··~Y~~lffi~e~~ •• ~~~.·~~!P12~~sa!!~#vfd~gff~~!i:
~@c~~jH~!#~ed·Jifi·~·nie~~~r~¥~S~m:·f()tp~#~i~iid~#f!iljijt~~~~4'~'~iiefit
pmn~~~~i:i·~~~~~·Jit6% •• ofHli~~~ffgi~~~:(:b~tW~&n; • .the~m~l!tlf~~f~:!nilli~~liied
t1a~:f~td£t·~tN6tn:~n~··afid(tliemlghe~t')~ti~lii~d;iifiv,iitf~;f6rxm~;rtei~Hi'gBer
st4~!f'~~ti*tHn.·n(}~yerifs~~IW~tibh:hi~bb¥~~;~(htt~~!b~iielit"b'nfm~date
~~i~g~!i~t;B~!:l~$§ •• th~ij:j~#lel~lJ~~~f::l~lhg:J~~d:)aC~iW~il;M~~~i·$s.1t~iti~6E};~(),
:li~fl4~i4gt;~~4·.1llider··th6t~$§;·8filli~.;SY~fefi};ii~geffe6tr6ritH~~·#~t&~
(e) Notwithstanding anything in this section to the contrary, the benefits
provided in this section shall not exceed 90% of the member's average
monthly Salary as defined in subsection (d) of this section; provided,
however, that the benefits for May 1993 Members shall not exceed 80% of
such Salary.
(f) The minimum pension for a member retiring for permanent and total
disability under subsection (a)(2) of this section shall be 85% of the
member's Salary at the time of disability retirement; provided, however, that
the minimum pension for a May 1993 Member shall be 75% of such Salary.
The minimum pension for a May 1993 Member retiring for permanent and
total disability under subsection (a)(3) of this section shall be 50% of the
member's Salary at the time of the disability retirement.
(g) If any member eligible for benefits under this article shall terminate his
employment after having completed at least 10 years of Creditable Service
8
but prior to attaining age 50 years (or after having completed one year of
Creditable Service but before attaining age 55 and completing 10 years of
Creditable Service for a May 1993 Member), and does not withdraw his
accumulated contributions in the System, such member shall be entitled to
receive upon attaining age 50 (age 55 or his termination of employment, if
later, for a May 1993 Member) a monthly pension payable for life in
accordance with the provisions of subsection (b) (or subsection (c) for a
May 1993 Member) of this section; provided, however, the benefit so
determined shall be reduced for a May 1993 Member by 10% multiplied by
the difference between the member's years of Creditable Service at his date
of termination and 10. If the member dies prior to attaining age 50 (age 55
or his termination of employment, if later, for a May 1993 Member), no
benefit shall be payable under subsection (b) (or subsection (c) for a May
1993 Member); instead, the member's estate shall be entitled to all moneys
contributed by the member to this System together with accumulated
interest on that sum at the rate of three percent per annum computed until
the date of payment to the member's estate.
(h) (1) Notwithstanding anything in this section to the contrary, the
minimum monthly pension payable for the life of any member who was
employed prior to July 1, 1976 and who retires after attaining age 50 and
completing at least 15 years of Creditable Service or after meeting the
requirements of subsection (a)(3) or (a)( 4) of this section 66 shall be equal
to:
(A) Three percent of the member's average monthly Salary for
each of the first 20 years of his Creditable Service, being
computed as to a part of a year on a pro rata basis to the
nearest month; plus
(B) Two and three-quarters percent of the member's average
monthly Salary for each of his years of Creditable Service in
9
excess of 20, being computed as to a part of a year on a pro
rata basis to the nearest month.
(2) For purposes of this subsection (h) the member's average monthly
Salary shall be the Salary upon which the member's contribution to the
System was computed for the two highest paid years of the member prior to
his date of retirement.
(3) Notwithstanding anything to the contrary, benefits provided under
this subsection (h) shall not be more than 85% of the average monthly
Salary used to compute the benefit under this subsection.
(4) The minimum pension for a member retiring under this subsection
(h) for permanent and total disability shall be 75% of the member's Salary at
the time of his disability retirement.
(i) Nothing in this section shall be construed to prevent the City manager or the
Board from initiating action for the compulsory retirement of a member
eligible for retirement, prior to such age, where such member is considered
to be unfit for the proper performance of his duties because of physical or
mental incapacity. Upon certification by the medical board designated by
the Board pursuant to section 76(j) that such member is mentally or
physically incapable of proper performance of duties, the member shall be
automatically retired. Any member who is compulsorily retired by an act of
the Board shall have the right to appeal such retirement to a court of proper
jurisdiction. The member shall defray his own expense in his appeal of such
compulsory retirement.
(j) Members with ten (1 o~ or more years of creditable service ,"rho are
eligible to receive normal or early retirement benefits under the 8ystem may also
purchase up to an additional six percent (6%) benefit multiplier in accordance with
this subsection. A member may purchase up to an additional six percent (6%)
benefit multiplier if the additional creditable service for prior public safety
purchased pursuant to sec. 65( d) or prior military service pursuant to sec. 82(b)
10
does not exceed a combined total of two (2) years; and a member may purchase an
additional three percent (3%) benefit multiplier if the additional creditable service
for prior public safety service purchased pursuant to sec. 65( d) or prior military
service pursuant to sec. 82(b) does not exceed a combined total of three (3) years.
The cost for each additional three percent (3%) benefit multiplier purchased shall
be the same as the cost for each year of prior military service purchased in
accordance with sec. 82 (b). For the purpose of this purchase, a member may use
the value of accrued sick and/or annual leave, valued at the member's hourly rate at
the time of purchase. The purchase of an additional benefit multiplier provided in
this subsection CD, must be completed within th1mf~iX<;.~~6:ltYt~R6t~;:fZf!j
months following September 30, 2010, or within ~~six\;t36M:el;l"t}~'~(2~)
months following a member's completion of ten (10) years of creditable service
under the System, whichever occurs later for the member. If a member does not
complete the purchase of an additional benefit multiplier as provided in this
subsection (d) within the thi!!y~sj§{'{a~eit§;fotir@'4) month period, he/she shall
not be eligible for such purchase in the future.
Section 3. Section 67 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
I9}c"'. ~·.Eff~6ti¥~;~i~Jf~f~~~~'~.30~:?~{()0f6filt~~ffib~~if~~~;YE~tif~';~~~f~!~~~£f~~~!~€i~~4'af~1
th~·.· .·c;~~i·i~~f/IiYi~g;l·~tlrus'tiB~~t:~.e~R~td~~&;st~~@i~::;;~~~!I~~';1~!t;:~~~~JJ~(r~~\~J~e~ri~~
bb.rlu~II~':~~;~ffi,~:.~B~i~~t~a&\)p~(~··.·~Hf!g?R!~i!!§~f~~~!~!if~H1~htB
* * *
Section 4J.. Effective September 30, 2010, Section 79 of Part 1, Subpart B, Article IX,
Related Special Acts of the Miami Beach City Code, is amended ~o read:
11
Sec. 79. -Deferred Retirement Option Plan (DROP).
(a) Eligibility -Any active member member of the System may enter into the DROP
on the first day of any month following the date upon which the member first
becomes eligible for a normal service retirement, subject to the provisions of
this section 79.
(b) Conditions of Eligibility -Upon becoming eligible to participate in the DROP, a
member may elect to enter that program for a period not to exceed 36
months. Notwithstanding, DROP participation may not continue beyond the
date when the member's combined years of creditable service and time in the
DROP equals 352 months (387 months for members who were members prior
to July 1, 1976). Members who enter the DROP on or after September 1,
2012 shall be eligible to participate for a period not to exceed sixty (60)
months. Notwithstanding, for those members who enter the DROP on or after
September 1, 2012, participation may not continue beyond the date when
the member's combined years of creditable service and time in the DROP
equals 376 months (390 months for members hired after July 14, 2010).
Provided also that participation in DROP shall require the member to complete
and submit the following prior to start of DROP payments.
1 . Such forms as may be required by the Board or Plan
Administrator. Election of the DROP is irrevocable once
DROP payments begin.
2. A waiver and an irrevocable resignation from employment
with the actual date of termination being the date designated
by the member as the end of his/her DROP participation.
The administration and timing of execution and delivery of
the waiver and resignation forms shall meet the requirements
of the Age Discrimination in Employment Act and the Older
12
Worker's Benefits Protection Act, as same may be amended
from time to time.
Ic) Conditions of Employment for DROP Participants -Members shall be
subject to termination of employment while in DROP to the same extent
as they were in their pre-DROP status. A member who has elected the
DROP remains an employee during the DROP period and receives all
the benefits of being an employee during the DROP period, except
any form of pension contribution.
Id) Effect of DROP Participation.
1. A member's creditable service and his/her accrued benefit
under the System shall be determined on the date of his/her
election to participate in the DROP first becomes effective.
2. The member shall not accrue any additional creditable
service while he/she is a participant in the DROP, or after
termination of participation in the DROP.
3. A DROP participant is not eligible for disability benefits from
the Plan.
4. A member may participate in the DROP only once.
5. Effective with the start date of a member's DROP
participation, contributions to the Pension Plan by the
member and the normal cost contribution to the Pension Plan
by the City, on behalf of the member, shall cease.
Ie) Payments to DROP Account - A DROP account shall be created for
each member who elects to participate in the DROP. A DROP account
shall consist of amounts transferred to the DROP from the Plan, which
include the monthly retirement benefits, including any future cost of
living increases, that would have been payable had the member
elected to cease employment and receive a normal retirement benefit
upon commencing participation in the DROP, and earnings on those
13
amounts. Provided, members who enter the DROP on or after
September 1, 2012, shall receive a zero percent (0%) cost of living
adjustment for the third (3rd) and fourth (4th) annual adjustment dates,
regardless of whether the member remains in the DROP for the
maximum five (5) year period. Provided further, any member who
exits the DROP within six (6) months following the date of DROP entry,
shall be eligible for the cost of living adjustment as otherwise provided
in sec. 67.
m DROP Account Earnings
1 . Members may direct their DROP account balance to any of
the investment options offered and approved by the Board.
Any losses incurred by the participant shall not be made up
by the City or the Pension Plan. The selection of these
programs shall be made by the participant on forms provided
by the Board. Any and all interest and or earnings shall be
credited to the participant's DROP account.
2. A member's DROP account shall only be credited or debited
with earnings while the member is a participant in the DROP
and, depending on the DROP Account Payment Options
selected, after the member dies, retires, or terminates
employment with the City of Miami Beach.
(g) Payment of DROP Account Funds -Upon termination of a member's
employment (for any reason, whether by retirement, resignation,
discharge, disability, or death), the retirement benefits payable to the
member or to the member's beneficiary shall be paid to the member or
beneficiary and shall no longer be paid to the member's DROP account.
No payments will be made from the DROP account until the member
terminates employment.
14
(hI DROP Account Payment Options -Following the termination of a
member's employment, the member shall select one of the following
options to begin to receive payment from his/her DROP account. Said
selection shall occur no later than 30 days prior to the end of the DROP
participation period or within 30 days following the termination of a
member's employment if said termination of employment occurs prior to
the end of the DROP participation period:
1. Lump Sum -All accrued DROP benefits, plus interest, shall be paid
from the DROP in a single lump sum payment.
2. Partial Lump Sum -A member designated portion of accrued DROP
benefits, plus interest, shall be paid from the DROP in a partial lump
sum payment with the remainder being directly rolled over into an
eligible retirement plan.
3. Direct Rollover -All accrued DROP benefits, plus interest, shall be
paid from the DROP directly to the custodian of an eligible retirement
Ekm.,.
4. Other method(sl of payment that are in compliance with the Internal
Revenue Code and adopted by the Board.
(i) Death of DROP Participant -If a DROP participant dies before his/her
account balances are paid out in full, the participant member's
designated beneficiary shall have the same rights as the member to
elect and receive the pay-out options set forth in Paragraph (hI, above.
DROP payments to a beneficiary shall be in addition to any other
retirement benefits payable to the beneficiary.
(j) Administration of DROP Accounts.
1. The Board shall make such administrative rules as are necessary for
the efficient operation of DROP, but shall neither create any rule that
is inconsistent with the this section 79, nor any rule that would be a
mandatory subject of collective bargaining.
15
2. At all times, the DROP will be administered so that the System
remains qualified under the Internal Revenue Code and is in
compliance with the Internal Revenue Code and applicable laws and
regulations.
A Deferred Retirement Option Plan ("DROP") shall be adopted and administered
by the Board. The DROP shall contain such terms and provisions as may be
necessary to reflect the terms ofthe bargaining agreements between the City and the
International Association of Firefighters (JAFF) ratified by the City Commission on
September 23, 1998 and between the City and the Fraternal Order of Police (FOP)
ratified by the City Commission on July 15, 1998, and any amendments to those
agreements. The DRDP shall also contain such other terms and provisions as the
Board deems necessary and appropriate for the proper administration of the DROP.
The terms and provisions of the DRDP shall be incorporated into this article by
reference and shall be deemed to be a part of the System.
se6'ticiri}4. Effective July 14, 2010, a new section 87 of Part 1, Subpart B, Article IX,
Related Special Acts of the Miami Beach City Code, is created to read:
Sec. 87. Benefits for employees hired on or after July 14, 2010.
The pension benefits for employees hired on or after July 14, 2010 shall be as provided in
the sections 61 through 86, except as follows:
(a) The benefit multiplier shall be three percent (3%) for each year of creditable
service for the first 20 years of service, and four percent (4%) for each year
of creditable service after 20 years of creditable service.
(b) The normal retirement date shall be as provided in sec. 66, except that a
member must attain age 48 to be eligible for "Rule of 70" retirement.
16
Ie} Final average monthly salary shall be based on the three (3) highest paid
years or last three (3) years as the case may be, prior to retirement or
separation from employment.
(d) The cost of living adjustment shall be one and one-half percent (1.5%)
annually.
(e) Members who enter the DROP shall receive a zero percent (0%) cost of
living adjustment for the third (3rd) and fourth (4th) annual adjustment
dates, regardless of whether the employee remains in the DROP for the
maximum five (5) year period. Provided, any member who exits the DROP
within six (6) months follOWing the date of DROP entry, shall be eligible for
the cost of living adjustment as otherwise provided in paragraph (d) above.
Secti6n6.5. Conflicts and Severability.
(a) All Ordinances, and parts of ordinances, in conflict herewith shall be and
the same, are hereby repealed.
(b) 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 other articles, sections, paragraphs, sentences, clauses or phrases of
this Ordinance, which shall be and remain in full force and effect as fully as if the item so
adjudged invalid or unconstitutional was not originally a part hereof
s'ecHd:ri;,76: Effective Date. This Ordinance shall take effect ten days following
adoption, except as otherwise specified herein.
17
PASSED and ADOPTED by the City Commission of the City of Miami Beach
this __ day of _____ , 2010.
Attest:
(Seal)
1st Reading-
2nd Reading -
T:\AGENDA\2010\Novembcr 17\Regular\lAFF FOP Pension Ordinance 2nd Rdg.doc
18
Mayor
APPROVED AS TO
fORM & LANGUAGE
& FOR ExecUTION
~ l'h5fp
CIi'/. ley Date
ORDINANCE NO. ___ _
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE MIAMI
BEACH EMPLOYEES' RETIREMENT PLAN; IMPLEMENTING
PROVISIONS OF THE 2009-2012 COLLECTIVE BARGAINING
AGREEMENT BETWEEN THE CITY AND COMMUNICATIONS
WORKERS OF AMERICA LOCAL 3178; PROVIDING FOR
SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT
THEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
Section 1. Section 2.14 of the Miami Beach Employees' Retirement Plan created by Ordinance
2006-3504, as subsequently amended, is amended to read:
2.14 (a) "Final Average Monthly Earnings" means one-twelfth of the average annual earnings
of the Member during the two highest paid years of creditable service except as otherwise
provided in this Section 2.14. Notwithstanding the foregoing, for any Member who became a
member of the Unclassified System prior to October 18, 1992 and was continuously a member
of the Unclassified System from that date until March 18, 2006, "Final Average Monthly
Earnings" means one-twelfth of the average annual earnings of the Member during the two
highest paid years of creditable service, but shall not in any event be less than one-twelfth of the
earnings of the Member during the twelve months immediately preceding March 18, 2006.
(b) Notwithstanding section 2.14(a) above, for any Member who is in a classification
'/lithin the AFSCME or GSA bargaining units, and for any Unclassified or "Other" Member,
effective September 30, 2010 "Final Average Monthly Earnings" means:
1. For those Members who as of September 30, 2010 have attained normal retirement
age or are within 24 months from normal retirement age, "Final Average Monthly
Earnings" shall have the same meaning as in section 2.14(a) above.
2. For those Members who as of September 30, 2010 are between 24 and 36 months
from normal retirement age, "Final Average Monthly Earnings" means one-twelfth (1/12)
of the average annual earnings of the Member during the three (3) highest paid years of
creditable service.
3. For those Members who as of September 30, 2010 are between 36 and 48 months
from normal retirement age, "Final Average Monthly Earnings" means one-twelfth (1/12)
Agenda Item r:<. s C.
Date /1-17 -/0
of the average annual earnings of the Member during the four (4) highest paid years of
creditable service.
4. For those Members who as of September 30, 2010 are more than 48 months from
normal retirement age, "Final Average Monthly Earnings" means one-twelfth (1/12) of
the average annual earnings of the employee during the five (5) highest paid years of
creditable service.
Section 2. Section 6.02 of the Miami Beach Employees' Retirement Plan created by Ordinance
2006-3504, as subsequently amended, is amended to read:
6.02 Contributions by Members
(a) Each Member shall contribute to the Plan eight percent (8%) of earnings,
except as otherwise provided in this Section 6.02. Notwithstanding the preceding sentence,
effective July 14, 2010, each Member in a classification within the AFSCME and GSA
bargaining units, and each Unclassified and "Other" Member, shall contribute to the Plan ten
percent (10%) of earnings, except as otherwise provided in this Section 6.02. Notwithstanding
the first sentence of this subsection (a), effective November 27, 2010, each Member in a
classification within the CWA (MBEBA) bargaining unit shall contribute to the Plan ten percent
(10%) of earnings, except as otherwise provided in this Section 6.02., and contingent on State
approval of an actuarial impact statement confirming a reduction in the City's annual required
pension contribution for FY 2010-2011 associated with the pension changes contained in the
2009-2012 collective CWA collective bargaining agreement of at least $1,000,050. The
contributions made by each Member to the Plan shall be deducted from the Member's Earnings
and designated as Employer contributions pursuant to section 414(h) of the Internal Revenue
Code. Such designation is contingent upon the contributions being excluded from the Members'
gross income for Federal Income Tax purposes. For all other purposes of the Plan, such
contributions shall be considered to be Member contributions.
(b) Notwithstanding subsection (a) above, all persons entering service with
the City prior to April 1, 1993 who are in the classifications within the AFSCME bargaining unit;
all persons entering service with the City prior to February 21, 1994 who are in classifications
within the CWA (MBEBA) bargaining unit, and all persons entering service with the City prior to
August 1, 1993 who are in classifications within the GSA bargaining unit or classified as "Other",
who were members of the Classified Plan continuously from the date they entered service with
the City until March 18,2006, shall contribute to the Plan ten percent (10%) of their earnings
-2-
throughout their service as a Member of this Plan. Notwithstanding the preceding sentence,
effective July 14, 2010, each Member described in the preceding sentence who is in a
classification within the AFSCME or GSA bargaining units shall contribute to the Plan twelve
percent (12%) of earnings; and effective January 18, 2010, each Member described in the
preceding sentence classified as "Other" shall contribute to the Plan twelve percent (12%) of
earnings. Notwithstanding the first sentence of this subsection (b), effective November 27, 2010,
each Member described in the first sentence of this subsection (b) who is in a classification
within the CWA (MBEBA) bargaining unit shall contribute to the Plan twelve percent (12%) of
earnings, contingent on State approval of an actuarial impact statement confirming a reduction
in the City's annual required pension contribution for FY 2010-2011 associated with the pension
changes contained in the 2009-2012 collective CWA bargaining agreement of at least
$1,000,050.
* * *
Section 3. Article 13 of the Miami Beach Employees' Retirement Plan created by Ordinance
2006-3504, as subsequently amended, is amended to read:
ARTICLE 13. Employees hired on or after September 30, 2010.
Notwithstanding any other provision of the Plan, for employees hired on or after September 30,
2010, other than employees hired in classifications within the CWA (MBEBA) bargaining unit,
the provisions of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-
3504, as subsequently amended, shall be applicable, except as set forth in paragraphs a
through i below.follQ!,vs: Notwithstanding any other provision of the Plan, for employees hired on
or after October 27, 2010 in classifications within the CWA (MBEBA) bargaining unit. the
provisions of the Miami Beach Employees' Retirement Plan created by Ordinance 2006-3504,
as subsequently amended, shall be applicable, except as set forth in paragraphs a through i
below.
a. The normal retirement date shall be age 55 with at least thirty (30) years of creditable
service, or age 62 with at least five (5) years of creditable service.
b. The early retirement date shall be the date on which the member's age plus years of
creditable service equal 75, with a minimum age of 55
c. Final average monthly earnings shall be an average of the highest five (5) years of
employment.
-3-
d. The benefit multiplier shall be 2.5% multiplied by the member's years of creditable
service, subject to a maximum of 80% of the member's FAME.
e. The retiree Cost of Living Adjustment shall be 1.5% per year, with the first adjustment
deferred to one year after the end of the DROP.
f. The employee contribution shall be 10% of salary.
g. The standard form of benefit shall be a lifetime annuity.
h. Members who separate from City employment with 5 or more years of creditable service
but prior to the normal or early retirement date shall be eligible to receive a normal
retirement benefit at age 62.
i. Employees shall be eligible to enter the DROP at the normal retirement age specified in
paragraph a, above, and may participate in the DROP for a maximum of 5 years.
Conflicts and Severability. Section 4.
(a) All Ordinances, and parts of ordinances, in conflict herewith shall be and the
same, are hereby repealed.
(b) 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 other articles, sections, paragraphs, sentences, clauses or phrases of this Ordinance,
which shall be and remain in full force and effect as fully as if the item so adjudged invalid or
unconstitutional was not originally a part hereof.
Section 5. Effective Date. This Ordinance shall take effect ten days following adoption,
except as otherwise specified herein.
PASSED and ADOPTED by the City Commission of the City of Miami Beach this
__ day of , 2010.
Mayor
Attest:
-4-
(Seal)
1st Reading-
2nd Reading -
T:\AGENDA\2010\November 17\Regular\MBERP Ordinance CWA 2nd Rdg.doc
-5-
APPROVED AS TO
FORM & lANGUAGE
& fOR EXECUTION
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