R5F-Amend Firefighters' Relief And Pension Fund -Weithorn-Clty ol Mloml Boqch, 'l 200 Convention Cenler Drive, Miomi Beoch, FL 331 39, www.miomibeochfl.gov
COMMI ION MEMORANDUM
MIAMIBEACH
TO:
FROM:
DATE:
SUBJECT:
Honorable Mayor Philip Levine and
Jimmy L. Morales, City Manager
June 10,2015
mbers of City Commission
AN ORDINANCE OF THE MA AND CITY COMMISSION OF THE
AMENDING THE FIREFIGHTERS'CITY OF MIAMI BEAGH,
RELIEF AND PENSION FUND TO COMPLY WITH APPLICABLE
PROVISIONS OF THE INTERNAL REVENUE CODE AND
REGULATIONS THEREUNDER; AMENDING THE RELATED SPECIAL
ACTS OF THE CITY BY AMENDING ARTICLE VII, ENTITLED
..FIREFIGHTERS' RELIEF AND PENSION FUND," BY AMENDING
SECTIONS 36 THROUGH 48; PROVIDING FOR SEVERABILITY;
REPEAL!NG ALL ORD!NANCES !N CONFLICT THEREWITH;
PROVIDING FOR CODIFICATION; AND PROVIDING AN EFFECTIVE
DATE.
SECOND READING, PUBLIC HEARING
BACKGROUND
We have reviewed the proposed amendments to
Pension Fund, attached to the lnternal Revenue
December 5, 201 4 (attached).
the Miami Beach Firefighters' Relief and
Service (lRS) determination letter dated
An lnternal Revenue Service "determination letted' is issued in response to a request as to the
qualified status of a retirement plan under IRC section 401(a). The determination letter
expresses the Service's opinion regarding the form of the plan, and applies only to the employer
and the plan participants on whose behalf it was issued.
The proposed amendments are required by the lnternal Revenue Code (lRC) and IRS
regulations, in order for the Plan to retain its qualified status and comply with the favorable
determination letter from the lRS. Among the changes are amendments making references
throughout the document gender neutral, i.e., firefighters rather than firemen. More substantial
elements include the addition of 16 newly defined terms and amendments to the eight originally
included in the ordinance.
Additionally, the proposed ordinance specifies how a retired/separated member's account is to
be treated until such time as the funds are withdrawn and how survivor benefits are disbursed.
Language further indicates that amounts allocated to a participant's account may not exceed the
limitations set forth in Section 415 of the Code.. The current maximum limit on annual additions
to a participant's defined contribution account under section 415 is $53,000.
We ore cpmnittd b providing excellent public elice ord *{ety ro oll vvho live, work ond phy in our vibront, tropic< Agenda ltem ,RS Loate 6-(o-lF291
City Commission Memorandum
June'10,2015
Firefighters' Relief and Pension Fund
Page 2 of 2
ln summary, the proposed amendments satisfy the IRS requirements for plan qualification.
Further, the amendments memorialize the City's current intent regarding the benefits derived
from the premium taxes as set forth in Ch. 175, Florida Statutes.
While public employers that sponsor retirement plans are not required to apply for a
determination letter, receiving a favorable determination letter provides documentation that the
plan satisfies the applicable qualification standards.
There are several legal and practical advantages to obtaining a determination letter. One legal
advantage is that an IRS determination letter provides a definitive analysis of whether a plan is
qualified. lt also provides the basis for retroactive relief if the Service later changes its position.
One practical advantage of obtaining a determination letter is that the City's auditors will be less
likely to question the qualified status of the Plan.
We have prepared an ordinance incorporating the IRC compliance amendments. The
amendments are technical in nature, and should not result in additional cost to the City since all
funding comes from state premium taxes in Ch. 175, Florida Statutes.
RECOMMENDATION
Adoption of the ordinance is recommended. lt is further recommended that the second reading
and public hearing be scheduled for the June 10,2015, meeting.
The City has been informed that changes to the ordinance do not have an actuarial impact. A
statement to that effect is attached.
Attacllrilent
TdVJLM/KGr/sc-r
T:MGENDA\2015\une\Humon Resources\Memo - IRS Determinotion ond Plon Chonges - June 20l5.docx
292
GRS Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.7616 phooe
Consultants E{ Actuaries Suite 505 954'525.0083 fax
Ft.Laudcrdale,FL33S0l-1872 www.gabrielroeder,com
June 2,2015
Ms. Sylvia Crespo-Tabak
Human Resources Department
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: City of Miami Beach Firefighters' Relief and Pension Fund
Dear Sylvia:
As requested, we have performed an actuarial review of the proposed Ordinance (copy
attached) for the City of Miami Beach Firefighters' Relief and Pension Fund.
Based upon our review, the proposed Ordinance:
1. Changes references from gender specific to gender neutral.
2. Adds definitions for Account, Account Balance, Code, Designated Beneficiary,
Direct Rollover, Distributee, Eligible Retired Public Saf"ty Officer, Eligible
Retirement Plan, Eligible Rollover Distribution, Fund Year, Normal Retirement
Age, Qualified Health Insurance Premiums, Qualified Health Insurance Premium
Distribution, Retired or Separated Participant, State and Valuation Date.
3. Updates definitions of City, Fund, Participant, Regular Status, and Service.
4. Stipulates corpus or income of the Fund may only be used for exclusive benefit of
Participants and payment of Fund expenses.
5. Limits reversion of assets as defined under IRS Revenue Ruling 91-4.
6. Deletes Custodian offund; vouchers Sec. 41.
7. Limits allocation to Participant's Account as required under IRC Section 415 limits.
8. Provides loans will be uniformly available and loan terms will comply with IRC
Section 72(p).
9. Provides for payment to a Designated Beneficiary upon death while on Active Duty.
10. Clarifies full vesting upon Active Duty death, retirement or disability under any
other pension plan of the City and upon termination of the Fund.
11. Provides Qualified Health Insurance Premium Distributions to Eligible Retired
Public Safety Officers.
12. Clarifies benefit payment as a single cash lump sum.
293
Ms. Sylvia Crespo-Tabak
June 2,2015
Page Two
13. Requires minimum distributions upon attainment of age 70Yzin compliance with
IRC Section a01(a)(9).
14. Provides for direct rollover of an Eligible Rollover Distribution from the Fund to an
Eligible Retirement Plan.
15. Allows for surviving spouse of retired or separated participant to have same
distribution options available to retired or separated participant.
16. Adds provision for military service to comply with IRC Section 414(u) and
USERRA.
17. Requires Participants to file all information required by the Board in order to
establish rights and benefits under the Fund prior to any payment.
18. Deletes City responsibility for custody of the cash and investments.
19. Provides the authority of the Board to employ independent legal counsel.
20. Provides for severability.
21. Provides for repeal of all Ordinances in conflict and
22. Provides for an effective date.
In our opinion, the proposed Ordinance is a no cosl Ordinance for the City of Miami Beach
Firefighters' Relief and Pension Fund under State funding requirements.
We are available to respond to any questions conceming the above.
Sincerest regards,
X 3 l-\I.'^r
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosure
cc: Ms. Donna Brito
294
ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CIry OF
M!AM! BEACH, FLORIDA, AMENDING THE FIREFIGHTERS' RELTEF AND
PENSION FUND TO COMPLY WITH APPLICABLE PROVISTONS OF THE
INTERNAL REVENUE CODE AND REGULATIONS THEREUNDER;
AMENDING THE RELATED SPECIAL ACTS OF THE CITY BY AMENDING
ARTIGLE V!!, ENTITLED "FIREFIGHTERS' RELIEF AND PENSION FUND,"BY AMENDING SECTIONS 36 THROUGH 48; PROV|DING FOR
SEVERABILITY; REPEALING ALL ORDINANGES tN cONFL|CT
THEREWITH; PROVIDING FOR CODIFICATION; AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA:
Section 1. Section 36 of Article Vll of the Related Special Acts of the City of Miami
Beach, is amended to read:
Sec. 36. Purpose of Act; supplementary to other Acts.
The purpose of this Act is to implement the provisions of chapter 19112, Acts of Florida,1939,andtoprovidemeanSwherebyfirefiqhters@oftheCityofMiami
Beach, Florida, may receive benefits from the funds provided for that purpose by Chapter
19112, Acts of Florida, 1939. This Act shall be deemed to supplement any other pension plan of
the City of Miami Beach insofar as benefits 1o fir"fiohters firermerr+#ire$ightetl are concerned, and
nothing herein shall be construed to in any way affect the operation or benefits of any other
pension plan of the City of Miami Beach, Florida. Sections 5, 6, 7, 8, 9 and 10 of Chapter 19112,
Acts of Florida, 1939, shall continue to apply to the City of Miami Beach except as othenrvise
specifically provided for in this Act.
Section 2. Section 37 ot Article Vll of the Related Special Acts of the City of Miami
Beach, is amended to read:
Sec.37. Definitions.
The following words and phrases shall, for the purposes of this Act, have the meanings
hereafter respectively ascribed to them. Other words and phrases shall have meanings as
commonly understood with respect to the context; the singular shall include the plural, and the
masculine the feminine:
(a) Account: shall mean the individual account credited on behalf of each Participant
with contributions pursuant to this Act, eliqible forfeiture contributions and earninqs
on such contributions.
(b) Account Balance: shall mean the value of a Participant's Account as of the last
Valuation Date.
295
(ga) Active duty: shall mean actual service as a firefiqhter firemen [firefighter] with
regular status in the fire division of the City of Miami Beach, or absent from duty on an
approved leave of absence, all as of the time under consideration.
rcF) Board: shall be-snCersteed-+e mean the Board of Trustees of the Miami Beach
Firefiqhters,@ReliefandPensionFund,asprovidedforherein.
Ge) City: shallbe-snCersteed{e mean the City of Miami Beach, Florida.
(fl Code: shall mean the lnternal Revenue Code of 1986. as amended from time to
time.
(g) Desionated Beneficiary: shall mean anv person. persons or entitv desionated bv a
Participant to receive anv benefits pavable under the Fund in the event of the
Participant's death under Code Section 401(a)(9) and Treasurv Reoulation Section
1.401(a)(9)-4. lf no Desiqnated Beneficiarv has been so desionated bv a Participant
prior to the Participant's death, or if no person. persons or entitv so designated
survives the Participant. the Participant's survivinq spouse. if anv. shall be deemed
to be the Desionated Beneficiarv: otherwise the Desionated Beneficiarv shall be the
Participant's estate.
(h) Direct Rollover: shall mean a pavment bv the Fund directlv to the elioible retirement
plan specified bv the Distributee.
(!) Distributee: shall mean a Firefiqhter or former Firefiqhter. ln addition. effective for
distributions made after December 31. 2001, the Firefiohter's or former Firefiqhte/s
survivino spouse or former spouse who has an interest in the Firefiohter's benefits
under the Fund pursuant to a domestic relations order honored bv the State or the
Citv (if anv) are Distributees with reoard to such interest.
f) Eliqible Retired Public Safetv Officer: shall mean a Participant who has retired from
the fire division of the Citv (i) bv reason of disabilitv or (ii) on or after his or her
Normal Retirement Age and who is also a "public safetv officer" as defined in Section
402(|X4XC) of the Code and anv applicable ouidance thereunder.
ft) Elioible Retirement Plan: shall mean. effective for distributions made after December
31. 2001, anv of the followinq tvpes of plans that accept the Distributee's Elisible
Rollover Distribution: (i) a qualified plan described in Section 401(a) of the Code: (ii)
an annuitv plan described in Section 403(a) of the Code: (iii) an individual retirement
account or individual retirement annuitv described in Section 408(a) or 408(b) of the
Code, respectivelv: (iv) effective for plan vears after December 31, 2001, an annuitv
contract described in Section 403(b) of the Code: and (v) effective for plan vears
after December 31. 2001. an eliqible plan under Section 457(b) of the Code which is
maintained bv a state. political subdivision of a state. or anv aqencv or
instrumentalitv of a state or political subdivision of a state and which aqrees to
separatelv account for amounts transferred into such plan from this Fund.
O Eliqible Rollover Distribution: shall mean. effective for distributions made after
December 31. 2001. anv distribution of all or anv portion of the balance to the credit
of the Distributee. except that an Eliqible Rollover Distribution does not include: (i)
anv distribution that is one of a series of substantiallv equal periodic pavments (not
296
less frequentlv than annuallv) made for the life (or life expectancv) of the Distributee
or the ioint lives (or ioint life expectancies) of the Distributee and the Distributee's
Desiqnated Beneficiarv. or for a specified period of ten vears or more: (ii) anv
distribution to the extent such distribution is required under Section 401(aX9) of the
Code: and (iii) effective for plan vears after December 31.2001, after-tax amounts
unless such amount is transferred to an individual retirement account or individual
retirement annuitv described in Section 408(a) or 408(b) of the Code. respectivelv. or
transferred to a defined contribution plan qualified under Section 401(a) of the Code
that aqrees to separatelv account for such amount.
0d)Firefiqhters@:thefirechief,otficers,inspectors,enginemenand
+iremenl+ireggh+ersl, and such other employees of the fire division of the City efffii
Beach as the bBoard shall determine to be engaged directly in fire fighting or firepreventionwork,shallbedeemed@Firefiqhtersforthepurposesof
this Act.
(en) Fund: shall be+ndersteed{e mean the Miami Beach Siremen+{Firefighters'} Relief
and Pension Fund, as provided for herein.
@) Fund Year: shall mean the calendar vear.
(p) Normal Retirement Aqe: shall mean attainment of aoe 50: provided, however. that
"normal retirement aoe" shall be adiusted to be the same as such term used in the
Citv Pension Fund for Firefiqhters and Police Officers in the City of Miami Beach. as
amended from time to time.
(q) Participant: shall mean everv Firefiohter of the Citv eligible to have moneys credited
to his irdividual aeeeunt Account and to receive benefits therefrom under the Fund
and this Act .
(9t) Qualified Health lnsurance Premiums: shall mean premiums for coveraqe for the
Eliqible Retired Public Safetv Officer (and his or her spouse and dependents, if
applicable) under accident and health insurance (includino an accident or health plan
within the meanino of Section 105(e) of the Code) or qualified lonq{erm care
insurance contract as defined in Section 7702B(b) of the Code.
(q) Qualified Health lnsurance Premium Distribution: shall mean an amount deducted
from an Eliqible Retired Public Safetv Office/s benefit pavment under the Plan and
paid directlv to the insurer providing coveraqe for which Qualified Health lnsurance
Premiums are paid. Such amount mav not exceed the amount of the Qualified
Health lnsurance Premiums.
(gt[Q Regular status Status: shall have the meaning ascribed to it by Chapter 18696,
Acts of Florida, 1937, commonly known as the Civil Service Act, and the Personnel
Rules of the City ef{4iami€eash.
(g) Retired or Separated Participant: shall mean anv Participant who has separated from
service as a Firefiohter and has an Account Balance with the Fund.
(v)Service:shallmeanalltimeservedasaoftheCityef
Miami Beaeh for which regular compensation is made by the City ei-[4iami-Beaeh,
297
and all time during which a padieipant Participant is absent on a-military leave-ef
absen€e Leave. lt shall include all leaves ef absenee Leaves with pay, but shall not
include leave€-€f-€bsen€e Leaves during which no regular compensation is made
paid by the City ef Miami Beaeh.
(w) State. shall mean the state of Florida.
$)fxt Vatuation Oate
Board mav deem necessary.
Section 3. Section 38 of Article Vll of the Related Special Acts of the City of Miami
Beach, is amended to read:
Sec. 38. Creation of fund; origin of moneys.
There is hereby created in the City of Miami Beach, Florida, a special fund to be known
as the Miami Beach gireme+s{Firefighters'} Relief and Pension Fund, into which shall be paid
all moneys previously received by the City of Miami Beach under the provisions of Chapter
19112, Acts of Florida, 1939, and Ordinance Number 558 of the City of Miami Beach, which
moneys are now held in trust under Pension Ordinance Number 498 of the City of Miami Beach,
and all moneys which subsequently inure to the City of Miami Beach under the provisions of
Chapter 19112, Acts of Florida, 1939. lmmediately upon taking office, the bead Board shall
request, and the beed Board of tnrstees Trustees of the Miami Beach Employees Retirement
System shall make payment to the Miami Beach gnemen+{Firefighters'J Relief and Pension
Fund of the accumulated moneys referred to above and held in trust under Ordinance Number
498.
No part of the corpus or income of the Fund shall be used for. or diverted to, purposes
other than for the exclusive benefit of Participants and other persons entitled to benefits under
the Fund and pavinq the expenses of the Fund not paid directlv bv anv other partv. No person
shall have anv interest in. or rioht to. anv part of the earninos of the assets of the Fund, or anv
rioht in. or to. anv part of the assets held under the Fund. except as and to the extent expresslv
provided in this ordinance.
There will be no reversion of the assets of the Fund or Citv or State contributions, except
as permitted bv lnternal Revenue Service Revenue Rulino 91-4.
Section 4. Section 39 of Article Vll of the Related Specia! Acts of the Gity of Miami
Beach, is amended to read:
Sec. 39. Board of trustees G+eatien creation; composition; terms of office; officers;
proceedings; com pensation.
There is hereby created a board of trustees of the Miami Beach Sirernen-+tFirefighters'J
Relief and Pension Fund, which beerd Board shall consist of the fire chief, the director of
per€ennel human resources, the assistant eity Citv manager or other responsible officer or
employee of the etty Citv appointed by him, and two employees of the fire division to be elected
from among the pafrietpants Participants of the funC Fund by such pa+i€ipen+s Participants. The
fire chief, director of persennel human resources and the assistant €rty gty manager shall serve
so long as they continue to hold their respective offices, and upon replacement their successors
298
shall succeed to their positions as trustees. The first election of trustees from among the
pa*ieipants Participants shall be for one office as trustee for a one-year term, and one office as
trustee for a two-year term; thereafter elections shall be for overlapping terms of two-years. The
bead Board shall annually elect from its membership a chairman and secretary who shall keep
complete minutes of all proceedings of the beard Board, and all actions of the beerd Board shall
be by majority vote, a quorum being present. Trustees shall receive no compensation as such.
Section 5. Section 40 of Article V!! of the Related Special Acts of the Gity of Miami
Beach, is amended to read:
Sec.40. and authority.
The beard Board shall have power and authority as follows:
(a) To have exclusive charge of the investment of any assets in the fund Fund not
needed for the fund's Fund's current obligations, and to invest and reinvest such assets
in accordance with the written investment policy adopted by the beaC Board pursuant to
paragraph (b) below. Board members must discharge their duties with respect to the
plan Fund solely in the interest of the pe#r€ipen+s Participants and beneficiaries for the
exclusive purpose of: (i) providing benefits to pa*ieipants Participants and their
beneficiaries; and (ii) defraying reasonable expenses of administering the plan Fund;
with the care, skill, prudence, and diligence under the circumstances then prevailing that
a prudent person acting in a like capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like aims; by diversifying the
investments of the plan-Fund so as to minimize the risk of large losses, unless under the
circumstances it is clearly not prudent to do so. Within the limitations of the foregoing
standards and investment policy, the beard Board is authorized to acquire and retain in
the fund Fund every kind of investment specifically including, but not limited to stocks,
bonds, securities, debentures, real estate, mutual funds, trusts and other obligations
which persons of prudence, discretion and intelligence acquire or retain for their own
account. The intent of this paragraph is to remove any and all investment restrictions
which are otherwise imposed by Ch. 175, Florida Statutes, and which may be removed.
(b) To adopt and periodically update a written investment policy in accordance with
Section 112.661, Florida Statutes, as such statute may be amended in the future.
(c) To approve loans and claims, and to authorize payments from the fund Fund by
warrants signed by the chairman and secretary of the beaC Board.
(d) To interpret the provisions of this Act where the meaning is not clear or ambiguity
exists; and to promulgate necessary rules respecting the operation of the fund Fund, not
in conflict with the wording or clear intent of this Act.
(e) To authorize expenditures in connection with preliminary research and technical
services, accounting, auditing and general administration of the fund Fund.
(0 To do such other things as may be necessary to implement and provide for the
proper functioning of the fund Fund.
299
Section 5. Section 41 of Article Vll of the Related Special Acts of the City of Miami
Beach, is amended to read:
Sec.41. .
6ity funds, The ehief finanee effieer shall issue veuehers against sueh eash ef the fund enly
in seetien 5 [t0l hereef,
Section 7. Section 42 of Article Vll of the Related Specia! Acts of the Gity of Miami
Beach, is amended to read:
Sec. 42. lndividua! @ of @.
lndividual a€€eunts Accounts shall be established for every @
g+a+us(a) Firefiohter of R at the effective date of this Act,
Firefiqhter who has been retired under any eity Citv pension plan since the adoption of Cnapter
19112, Acts of Florida, 1939, or who attains regutar
statusRequrlar $a!us subsequent to the adoption of this Act. To each individual aeeeunt
Account there shall be credited, as of the date of each payment to the fund Fund by the state
State, an amount of such payment which bears the same ratio thereto that the years of
sen+ieeServlce of each pa*ieipa* Participant bears to the years of senlee Service of all
@.Afteradjustmentsbytheprorationofthecostsofpreviouscourtaction,
and preliminary expense, this method of crediting a€ceun+s Accounts of individuals Participants
shall be applied to the present accumulated moneys as of the date of each paymeni tnereot
and to all subsequent payments to the fund Fund by the sdate State after proper provisions have
been made for the payment of administrative expenses for the ensuing year. There shall be an
annual determination of interest earned by the investments of the fund Fund, and such interest
earnings shall be prorated to each of the Accounts of the pa+ieipan+s
Participants in the same proportion as the invested funds of the Account of
each padieipant Participant bears to the total funds invested on behalf of the fund Fund. As of
each June€0 Valuation Date there shall be allocated and credited to the aeeeunts Accounts of
pa+i€rpan+s Participants who are of regu{a+-status Reoular
Status as of such date, their share of nonvested forfeitures of terminateO pa*rerpang
Participants arising during the prior twelve months, to be made in the same proportion as is the
case above with regard to payments by the
under any ether pensien plan ef the Gity ef Miami
artieipant State.
The Board shall value the Fund's assets as of each Valuation Date and shall allocate to
the Account of each Participant his or her share of the increase or decrease in the fair nrarket
value of the Fund's assets.
300
Status if such contributions and forfeitures are attributable to a period when he was on Reqular
Status. Each Participant shall remain a Participant in the Fund until his or her Account has
been fullv distributed.
Notwithstandino anv provision of this Act to the contrarv, the maximum amount allocated
to the Participant's Account for anv calendar vear under this Act shall not exceed the limitations
setforth in Section 415 of the Code. as applicable, and anv reoulations issued thereunder. For
purposes of Section 415 of the Code. the Limitation Yearshall be the same as the Fund Year
and. effective for Limitation Years beoinninq on or after Julv 1. 2007, Compensation shall have
the same meaninq as provided in Treasurv Reoulations section 1.415-(c)-2, includino that,
effectiveforplan vears beqinninq on orafterJulv 1.2001. Compensation shall include amounts
which would have been included in a Participant's qross income but for an election under
Section 132(fl(4) of the Code.
Section 8. Section 43 of Article Vll of the Related Special Acts of the Gity of Miami
Beach, is amended to read:
Sec. 43. Rights and benefits generally of pa+tieipants Participants.
The fund Fund shall provide benefits to pa*ierpants Participants therein as follows:
(a) The beaC Board may approve loans to a pa.Hieipant Participant not to exceed the
lesser of (i) his or her total vested @ Account Balance or (ii) five
hundred dollarsin-. Loans shall be mad such eases-as-it-i+established
te-the+atisfaetion Participants on a reasonablv equivalent basis and no loan shall be
made available under this Fund unless it satisfies all of the ffi
al expenses ef a partieipant er his immediate family, er
+e++uri+cxpenses requirements of an-imm€diate-rqembe+ Section 72(p) of his family,
the Code for treatment as a tax-free loan. Reasonable periods of time shall be allowed
for the repayment of such loans
within 5 vears unless such loan is used to acquire a principal residence of the Participant
in which case a 10 vear repavment schedule is allowed. lnterest shall be charged with
respect to the loan amount at the rate of six percent per annum on the unpaid balance.
Such loans shall be made contingent upon the right of the beard Board to effect
repayment by withholding subsequent credits, or by deducting from existing credits the
amount of any loan which is in default in its repayment; and the beard Board may refuse
to make subsequent loans to pa*ieipants Participants who so default.
(b) lf a pa*ietpan+ Participant shall separate from service with the fire division of the City
ef Miami Beaeh for any reason whatsoever prior to retirement Normal Retirement Aqe.exceptasprovidedin(c)and(d)below,heshallbeentitledtoa@
distribution from the Fund equal to the his vested ffi Account Balance
at that time.
(e) lf a partieipant shall die while en aetive duty and shall leave a surviving wife er efrild
er ehildren; the entire ameunt te his eredit shall be paid te a designated persen fer the
@ be ne surviving wife and there be surviving ehild er ehildren te a
ss and burial expenses, the
301
ehild er ehildren is under the age ef eighteen years ef age er shall be paid te sueh ehild
epehildren ever the age ef eighteen years ef age fer their benefit, lf there be ne surviving
defraying final illness and burial expenses, an amet*nt net te exeeed the entire amecnt te
in-any ease te exeeed five hundred
ef sueh expenses; any exeess ef sueh ameunt shall be paid te the estate ef the
ignated te aet fer a partieipant
is
s+*bseetien=
(c) lf a Participant shall die while on Active Dutv, he shall be 100% vested in his entire
Account Balance and his Desionated Beneficiarv shall be paid the entire amount of his
Account Balance. lf no Beneficiarv is desiqnated bv the Participant. the Account
Balance shall be paid to the Participant's estate.
(d) lf a panietpa* Participant, who has been, or who shall hereafter be lretired fierfromservice]ordisabilityunderanyotherpensionplanoftheCity@
ef sueh retirement in sueh manner
es,he shall eleet-*e-reeeive-it be 100% vested in his entire Account and he shall be paid
the entire amount of his Account Balance, and he shall further be entitled to receive a
pro-rata share of the payment to the fund Fund by the State next following the date of
such retirement, such sum to be the amount as provided fe1 in seetien-7 lsection 421ot
this Act and the pa*ieipa* Participant shall be entitled to receive such amount at the
time of the payment to the fund by the state in sueh manner as he shall eleet te reeeive
rt-Funcl_bylhe S!A!9.
(e) ln the event of the termination of the Fund, all Participants shall be 100% vested in
their entire Account Balances as of such termination date.
(fl lf permitted bv the Board. a Participant who is an Elioible Retired Public Safetv Officer
and is receivinq benefits under the Fund mav elect to have Qualified Health lnsurance
Premium Distributions made in accordance with this Section 43(fl. Qualified Health
lnsurance Premium Distributions mav be excluded from the qross income of the Elioible
Retired Public Safetv Officer under Section 402(l) of the Code, subiect to the annual
dollar limitation therein.
(eXglSettlement as provided in subsection (b-.,![c) and (d-) of this seetion Section 43
shall be full acquittal of all claims of a pa4ieipan't Participant against the fund Fund, and
he shall thereupon cease to be a pa*ieipa* Participant in the Fund.
(ehLEach pa*ieipa* Participant shall be fully (@) vested in
the entire amount in his aeeeunt Account as it exists on June 30, 1983. Any subsequentincreasesin,whetherfromallocationofpremiumtax
refunds, investment earnings, or any other source, shall be vested in accordance with
the following schedule:
TABTE INSET;
302
Years of
Service
Vested
Percent
Less than 10 None
10 or over 100
Any nonvested amounts which are not distributable under (b-,Llc-) or (d-) above shall be
forfeited by the pa*ieipan+ Participant and reallocated to remaining pe+ierpane
Participants as provided herein in Section 42 of this Act.
(i) A Participant shall receive his benefit in a sinole cash lump sum.
(i) Notwithstandinq anvthinq herein to the contrarv. a Participant's benefits under the
Fund shall commence no later than April 1 of the calendar vear followinq the later of (i)
the calendar vear in which he or she attains aoe 70 1/2: or (ii) the calendar vear in which
eh or she retires. All distributions shall conform to the reoulations issued under Section
401(a)(9) of the Code. includinq the incidental death benefit provisions of Section
401(aX9XG) of the Code. Further. such requlations shall override anv provision that is
inconsistent with Section 401(aX9) of the Code. Notwithstandino anv provision of this
Act to the contrarv, a form of retirement income pavable form this Fund, shall satisfv the
followino conditions:
(i) lf the retirement income is pavable before the Participant's death:
(A) lt shall either be distributed or commence to the Participant not
later than April 1 of the calendar vear followino the later of the
calendar vear in which the Participant attains aqe 70 1/2, or the
calendar vear in which the Participant retires:
(B) The distribution shall commence no later than the calendar vear
defined above: and (x) shall be paid over the life of the Participant
or over the lifetimes of the Participant and his or her spouse, issue
or dependent. or (v) shall be paid over the period extendino not
bevond the life expectancv of the Participant and spouse. issue or
dependent.
Where a form of retirement income oavment has commenced in accordance with
the precedino paraqraphs and the Participant dies before his entire interest in the
Fund has been distributed, the remaininq portion of such interest in the Fund
shall be distributed no less rapidlv than under the form of distribution in effect at
the time of the Participant's death.
(ii) lf the Participant's death occurs before the distribution of his interest in the
Fund has commenced, Participant's entire interest in the Fund shall be distributed within
five vears of Participant's death, unless it is to be distributed in accordance with the
followino rules:
(A) The Participant's remainino interest in the Fund is pavable to his spouse.
issue or dependent:
303
(B) The remainino interest is to be distributed over the life of the spouse, issue
or dependent or over a period not extendinq bevond the life expectancv of the
spouse. issue or dependent: and
(C) Such distribution beqins within one vear of the Participant's death unless the
Participant's spouse. is the sole desiqnated beneficiarv, in which case the
distribution need not beoin before the date on which the Participant would have
attained aqe 70 1/2 and if the Participant's spouse dies before the distribution to
the spouse beoins, this section shall be applied as if the spouse were the
Participant.
(k) Direct rollovers:
(i) Notwithstandino anv provision of this Fund to the contrarv that would
otherwise limit a Distributee's election under this paraoraph. a Distributee
mav elect, at the time and in the manner prescribed bv the Board. to have
anv portion of an Eliqible Rollover Distribution paid directlv bv the Fund to
an Eliqible Retirement Plan specified bv the Distributee in a Direct
Rollover.
(ii) With respect to distributions after December 31, 2006. a non-spouse
beneficiarv who is a Desiqnated Beneficiarv mav, bv a Direct Rollover. roll
over all or anv portion of his or her distribution to an individual retirement
account the non-spouse beneficiary establishes for purposes of receivino
the distribution. ln order to be able to roll over the distribution. the
distribution otherwise must satisfv the definition of an Elioible Rollover
Distribution. Although such non-spouse beneficiarv mav roll over such
distribution, anv distribution made prior to Januarv 1. 2010. is not subiect
to the direct rollover requirements of Code Section 401(aX31) (includino
Code Section 401(aX31)(B), the notice requirements of Code Section
402(fl or the mandatorv withholdino requirements of Code Section
3405(c)). lf a non-spouse beneficiarv receives a distribution from the
Fund. the distribution is not elioible for a "60-dav" rollover. A non-spouse
beneficiary mav not roll over an amount which is a required minimum
distribution. as determined under applicable Treasurv Reoulations and
other Revenue Service ouidance. lf the Participant dies before his or her
Required Beqinnino Date and the non-spouse beneficiarv rolls over to an
individual retirement account the maximum amount elioible for rollover.
the non-spouse beneficiarv mav elect to use either the S-vear rule or the
life expectancv rule, pursuant to Treasury Reoulation Section 1.401(a)(9)-
3. A-4(c). in determininq the required minimum distributions from the
individual retirement account that receives the non-spouse beneficiarv's
distribution.
(iii) lf the Participant's named beneficiarv is a trust. the Fund mav make a
Direct Rollover to an individual retirement account on behalf of the trust.
provided the trust satisfies the requirements to be a Desionated
Beneficiarv.
(iv) With respect to distributions made after December 31. 2007. a Distributee
mav elect to roll over via Direct Rollover an Eliqible Rollover Distribution
10
304
to a Roth individual retirement account described in Code Section
4084(b).
(l) Upon the death of a Retired or Separated Participant, such Participant's survivino
spouse shall have all the distribution options that were available to the Retired or
Separated Participant pursuant to this Section 43.
(m) Notwithstandinq anv provision of this Act to the contrarv:
(i) Effective for plan vears beqinnino after December 12, 1994, contributions.
benefits and service credit with respect to qualified militarv service will be
provided in accordance with Code Section 414(u):
(ii) ln the case of a death occurrino on or after Januarv 1.2007, if a
Participant dies while performino qualified militarv service (as defined in
Code Section 414(u)). the survivors of the Participant are entitled to anv
additional benefits (other than benefit accruals relatino to the period of
qualified militarv service) provided under the Fund as if the Participant
had resumed and then terminated emplovment on account of death;
(iii) For benefit accrual purposes, the Fund will treat an Participant who dies
or becomes Disabled on or after Januarv 1. 2007. while performing
qualified militarv service (as defined in Code Section 414(u)) as if the
Participant had resumed emplovment in accordance with his
reemplovment riohts under USERRA, on the dav precedino death or
disabilitv (as the case mav be) and separated from service on the actual
date of such death or disabilitv.
(iv) For vears beqinninq after December 31, 2008. (1) an individual receivinq
a differential waoe oavment, as defined bv Code Section 3401(hX2), is
treated as an Participant of the emplover making the pavment. (2) the
differentialwaoe pavment is treated as compensation. and (3) the Fund is
not treated as failinq to meet the requirements of anv provision described
in Code Section 414(uX1)(C) bv reason of anv contribution or benefit
which is based on the differentialwaoe pavment: and
(v) Effective as of Januarv 1. 2009. for purposes of beino eliqible to receive a
distribution under the Fund, an individual will be treated as havino been
terminated from emplovment durinq anv period the individual is
performinq service in the uniformed services described in Code Section
3401(hX2XA).
(n) Each Participant. beneficiarv or other person entitled to a benefit, before anv
benefit shall be pavable to him or on his Account under the Fund, shall file with the
Board the information that it shall require to establish his riqhts and benefits under the
Fund.
l1
305
Section 9. Section 44 of Article VI! of the Related Special Acts of the City of Miami
Beach, is reenacted to read:
Sec. 44. Rights and benefits not subject to encumbrance.
The rights and benefits provided for herein shall not be subject to attachment,
garnishment, execution or any other legal process.
Section 10. Section 45 of Article V!! of the Related Special Acts of the City of Miami
Beach, is amended to read:
Sec. 45. Responsibility of €rry g!U.
The City of Miami Beach shall have no responsibility for the operation of the ft+ndFunc!
except those specified herein, and shall bear no expense in connection therewith-exeep+-es
Section 11. Section 46 of Article Vll of the Related Special Acts of the Gity of Miami
Beach, is amended to read:
Sec. 46. Duties of ei$glq attorney.
The eity Citv attorney shall advise the beard Board in all matters pertaining to their duties
in the administration of the fund Fund, whenever requested; and shall represent and defend the
be€+d Board in all suits and actions at law, or in equity, that may be brought against it; and shall
bring all suits and actions in its behalf that may be determined upon by the bead Board.
Anvthinq herein to the contrarv notwithstandins. the Board mav elect to emplov independent
leqal counsel as it deems necessarv.
Section 12. Section 47 of Article Vl! of the Related Special Acts of the Gity of Miami
Beach, is amended to read:
Sec. 47. Separability: amendment.
lf any pe*ien-er+e*iens provision of this Act is for anv reason held unconstitutional.
inoperative or void, such holdinq shall ffi, not affect the remaining
pe+iens+,na++ave provi sions set forth herei n.
As described in Section 36. the samet{€"r€e provisions of this ordinance and effeet-es
@ien the Fund are intended to meet the requirements of a qualified plan
under Section 401(a) of the Code and to be tax-exempt under Section 501(a) of the Code.
Should anv chanqes be required to complv or to continue to
complv with the provisions of Sections 401(a) and 501(a) of the Code. the Board and the Citv
shalltake all appropriate steps to make anv such required chanqes to the Fund.
t2
306
Section 13. Section 48 of Article Vll of the Related Special Acts of the City of Miami
Beach, is amended to read:
Sec. 48. Repeal of conflicting laws.
That all All Citv laws. acts and ordinancq or parts of Citv laws, acts or ordinances. inconflict hereby are, repealed.
Section 14. Godification. This Ordinance shall be codified in Article Vll of the Related Special
Acts of the City of Miami Beach.
Section 15. 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 Gity of Miami Beach this _ day
2015.
PHILIP LEVINE
MAYOR
ATTEST:
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
RAFAEL E. GRANADO
CITY CLERK
(Sponsored by Gommissioner Deede Weithorn)
Underscore denotes new lanquaqe
sllls
Dote
13
307
DEPARTMENT OF THE TREASURYINTERNAL REVEIIUE SERVICE
P. O. BOX 2508
CINCINNATI, OH 452OI
DateDEC 0 5 2014
CITY OF MIAMI BEACH
C/O ROBERT .J FRIEDMAN
HOIJIJAND & KNIGHI I,IIP
TOL BRICKEITIJ AVE SUITE 3000
MIAI\,II , FIJ 33131
Employer ldentif ication Number :
59-L604527
DLN:
20LO24047
Person to Contact:
RUTH CHEN
Contact Telephone Number:
(626) 927-L423
rD# 95048
Plan Name:
CITT OF MTAIVII BEACH FIREF]GHTERS I
REI,IEF AND PENSION E"T,]}ID
PIan Number: 001
Dear Applj-canL:
We have made a favorable determination on the plan identified above based
on the information you have supplied. Please keep this letter, the application
forms submitted to request this letter and all correspondence with ttre hternal
Revenue Service regarding your application for a determination Ietter in your
permanent records. You must retain this information to preserve your reliance
on this Ietster.
Continued qualification of the plan under its present form will depend
on its effect in operation. See section 1.401-1(b)(3) of t,he Income Tax
Regulations. We wltt review the status of the plan in operation periodically.
The enclosed publication 794 explains the significance and the scope of
this favorable determination letter based on the determination requests
selected on your application forms. Publication 794 describes the information
that must be retained to have reliance on this favoralrle determination letter-
The publication also provides examples of the effect of a plan's oPeration on
its gualified status ind. discusses the reporting reguirements for qualified
p1ans. Please read PublicaLion 794-
This letter relates onty to the status of your plan under the Internal
Revenue Code. IE is not a determination regarding the effecL of other federal
or local- statutes.
This determination letter gives no reliarlce for any qualifieation change
that becomes effective, any guidance published, or any statutes enacted, after
Ehe issuance of the Cumulalive r,ist (unless the item has been identified in the
Cumulative List) for the cycle under which this application was submitted.
This letter may not be relied on after the end of the planrs first five-
year remedial amendment cycle that ends more than twelve months after the
ipplication was receiwed. This leLter expires on,JanuarY 31, 201-4. This
fetter considered the 2009 Cumulative List of Plan Qualification Requirements.
This determination letster is applicable for the amendment(s) executed
on 4-29-L4.
Lettser 2002
308
-2-
CITY OF MIAD,II BEACI{
This determination letter is based solely on your assertion that the plan
is entitled to be treaEed as a Governmental plan under sectj.on 414 (d) of the
Internal Reverrue Code.
Thi-s determination letter is applicable to the plan and relatsed documents
submitted in conjunction wiEh your application fil-ed during the remedial-
amendmenL cycle ending 1-31-11.
this is not a determination with respecL to any language in the plan or
any amendment to the plan that reflects SecLion 3 of tshe Defense of Marriage
Act, Pub. L. LO4, l-l-O stat - 24L9 (DOMA) or U.S. v. Windsor, 570 U.S. L2 (201,3),
which inwalidated that section-
We hawe sent a copy of this J.etter to your representatiwe as indicated in
the Form 2848 Power of Attorney or appointee as indicated by the Form 8821 Tax
Inf ormation Authorization.
If you have quesEions concerning this matter, pl-ease conEact the person
whose name and Eelephone nuliber are showrr above.
't Sincerely, t' -'
G&r * e$**Andrew E. Zuckerman
Director, EP RuJ-ings & Agreemepts
Enclosures:
Pnblicatior: 794
Leuter 2002
309
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