R5C -Amend Pension System - Disability-Retirement Of Police-Fire -Weithorn-COMMISSION ITEM SUMMARY
Condensed Title:
An ordinance of the Mayor and City Commission of the City if Miami Beach, Florida, amending Part l, Subpart B,
Article lX, Related Special Acts, of the Miami Beach City Code entitled "Pension System for Disability and
Retirement of Members of Police and Fire Departments"; amending the pension system to comply with applicable
provisions of the lnternal Revenue Code and Regulations thereunder; amending Section 62 entitled, "Definitions";
amending Section 63, entitled "Source of Monies for Fund; Computation of Liability; Use and lnvestment of Fund"'
amending Section 66, entitled "service and Disability Benefits Generally"; amending Section 70, entitled "Return oi
Contribution"; amending Section 79, entitled "Deferred Retirement Option Plan"; amending Section 82, entitled
"Military Service"; amending Section 83, entitled "Limitations on Benefits;" amending Section 84, entitled
"Distribution Limitation"; amending Section 85, entitled "Distribution to Retirement Plan"; providing for severability;
all ordinances in conflict : and and effective date.
Ensure expenditure trends are sustainable over the long term
Second Reading, Public Hearing
Item Summarv/Recommendation :
The amendments are technical in nature, and should not result in additional cost to the City. An actuarial impact
statement will be provided for the second reading and public hearing which, contingent on acceptance of the
Administration's recommendation, shou ld be October I 4,201 5.
The proposed amendments include the following nine plan changes:
1. A new definition of "actuarial assumptions" for the purpose of calculating optional forms of benefits. The
definition incorporates the past and present assumptions approved by the pension board and plan actuary.
2. A provision stating that employee contributions that are "picked up" by the City (i.e., treated as employer
contributions for tax purposes) cannot be paid directly to employees.
3. A provision stating that a plan member shall be fully vested in plan benefits upon reaching normal
retirement age.
4. A provision requiring plan members who separate from city employment to make a written request for a
return of member contributions.
5. A provision stating that the DROP plan shall be treated as a defined contribution plan for the purpose of
applying maximum limits on contributions and additions, to the extent required by law.
6. A provision incorporating the mandatory requirements of the Uniformed Services Employment and
Reemployment Rights Act (USERRA).
7. A provision stating that the limitation year is the same as the plan year (October 1 through September 30)
for the purpose of applying the maximum benefit limit in Section 415 of the lnternal Revenue Code.
8. A provision incorporating the mandatory distribution requirements of the lnternal Revenue Code.
9. Provisions incorporating the rollover requirements of the lnternal Revenue Code.
There are legal and practical advantages to obtaining a determination letter. Among them: an IRS determination
letter provides a definitive analysis of whether a plan is qualified and the basis for retroactive relief if the Service
later changes its position. According to the actuary, the proposed ordinance does not result in any costs to the
Advisory Board Recommendation :
Financial lnformation :
Source of
Funds:
Amount Account
1
2
3
T"t"l
Financial lmoact Summarv:
Department Director Assistant City Manager City anager
SCTEd MT JLM t
,J\
AGE!{BA,'.i, R f CE MIAMIBEACH BnTE lo'lq-l{433
MIAMIBEACH
Clfy of ,Ylloml Beoch, I200 Convention Cenler Drive, Miomi Beoch, FL 33139, www.miomibeochfl.gov
COMMISSION MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
CITY OF MIAMI BEAGH,
AND CITY COMMISSION OF THE
AMENDING PART I, SUBPART B,
ARTICLE IX, RELATED SPECIAL ACTS, OF THE MIAMI BEACH GIry
CODE ENTITLED "PENSION SYSTEM FOR DISABILITY AND
RETIREMENT OF MEMBERS OF POLICE AND FIRE
DEPARTMENTS,,; AMENDING THE PENSION SYSTEM TO COMPLY
WITH APPLICABLE PROVISIONS OF THE INTERNAL REVENUE
CODE AND REGULATIONS THEREUNDER; AMENDING SECTION 62,
ENTITLED "DEFINITIONS"; AMENDING SECTION 63, ENTITLED
"SOURCE OF MONIES FOR FUND; COMPUTATION OF LIABILITY;
USE AND INVESTMENT OF FUND"; AMENDING SECTION 66,
ENTITLED "SERVICE AND DISABILITY BENEFITS GENERALLY";
AMENDINGSECTION 70, ENTITLED "RETURN OF CONTRIBUTION";
AMENDING SECTION 79, ENTITLED "DEFERRED RETIREMENT
OPTION PLAN"; AMENDING SECTION 82, ENTITLED "MILITARY
SERVICE"; AMENDING SECTION 83, ENTITLED "LIMITATIONS ON
BENEFITS;" AMENDING SECTION 84, ENTITLED "DISTRIBUTION
LIMITATION"; AMENDING SECTION 85, ENTITLED "DISTRIBUTIONTO RETIREMENT PLAN,,; PROVIDING FOR SEVERABILITY;
REPEALING ALL ORDINANCES lN CONFLICT THEREWITH; AND
PROVIDING AN EFFECTIVE DATE.
SECOND READING, PUBLIC HEARING
BACKGROUND
We have reviewed the proposed amendments to the Miami Beach Firefighters and Police
Pension Plan, attached to the lnternal Revenue Service (lRS) determination letter dated
January 29, 201 4 (attached).
An lnternal Revenue Service "determination lette/' 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 letterfrom the lRS.
The proposed amendments include the following nine plan changes:
Honorable Mayor Philip Levine Members the City Commission
Jimmy L. Morales, City Manager
October 14,2015
AN ORDINANCE OF THE MA
We ore connifid lo providing excelbnl publrc *wice ad *fety n oll who live, *o* ond pby in our vibront, lropical, historic communily434
City Commission Memorandum
October 14,2015
Firefighters and Police Pension Plan
Page 2 of 3
1. A new definition of "actuarial assumptions" for the purpose of calculating optional forms
of benefits. The definition incorporates the past and present assumptions approved by
the pension board and plan actuary.
2. A provision stating that employee contributions that are "picked up" by the City (i.e.,
treated as employer contributions for tax purposes) cannot be paid directly to
employees.
3. A provision stating that a plan member shall be fully vested in plan benefits upon
reaching normal retirement age.
4. A provision requiring plan members who separate from city employment to make a
written request for a return of member contributions.
5. A provision stating that the DROP plan shall be treated as a defined contribution plan for
the purpose of applying maximum limits on contributions and additions, to the extent
required by law.
6. A provision incorporating the mandatory requirements of the Uniformed Services
Employment and Reemployment Rights Act (USERRA).
7. A provision stating that the limitation year is the same as the plan year (October 1
through September 30) for the purpose of applying the maximum benefit limit in Section
415 of the lnternal Revenue Code.
8. A provision incorporating the mandatory distribution requirements of the lnternal
Revenue Code.
9. Provisions incorporating the rollover requirements of the lnternal Revenue Code.
ln summary, the proposed amendments satisfy the IRS requirements for plan qualification.
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 according to the attached actuarial impact statement
dated September 14,2015, "... based upon the actuarial assumptions and methods employed
in the October 1,2014 Actuarial Valuation, the proposed Ordinance is a no cost Ordinance
under the State minimum funding requirements.".
435
City Commission Memorandum
October '14,2015
Firefighters and Police Pension Plan
Page 3 of 3
RECOMMENDATION
Adoption of the ordinance is recommended.
Attachments
JLM/MT/SC-T
436
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',; AMENDING THE
PENSION SYSTEM TO COMPLY WITH APPLICABLE
PROVISIONS OF THE INTERNAL REVENUE CODE AND
REGULATIONS THERE,UNDER; AMENDING SECTION 62,
ENTITLED "DEFINITIONS',; AMENDING SECTION 63,
ENTITLED "SOURCE OF MONIES FOR FUND; COMPUTATION
OF LIABILITY; USE AND INVESTMENT OF FUND,,;
AMENDING SECTION 66, ENTITLED "SERVICE AND
DISABILITY BENEFITS GENERALLY',; AMENDING SECTION
70, ENTITLED ..RETURN OF CONTRIBUTION,,; AMENDING
SECTION 79, ENTITLED *DEFERRED RETIREMENT OPTION
PLAN,,; AMENDING SECTION 82, ENTITLED "MILITARY
SERVICE,,; AMENDING SECTION 83, ENTITLED
*LIMITATIONS ON BENEFITS;,' AMENDING SECTION 84,
ENTITLED "DISTRIBUTION LIMITATION,,; AMENDING
SECTION 85, ENTITLED "DISTRIBUTION TO RETIREMENT
PLAN''; 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. Effective September 30, 2013, Section 62 of Part 1, Subpart B, Article IX,
Related Special Acts of the Miami Beach City Code, is amended to read:
Section 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 ),ears 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%o
effective for the plan vear beginnine October 1.2011; 8.10% effective for the plan vear
437
2013 and October 1. 2014:
(.b) 7.95% effective for the plan year beginning October 1" 2015; 7.90% effective for the
plan ),ear beeinning October 1. 20161 7.85% effective for the plan year beginning October
1. 2017: 7.80% effective for the plan year beginnine October 1" 2018: and 7.75% effective
for the plan year beginning October l. 2019.
Actuarial Assumptions (.for the calctilation of optional forms of beneffis\ also means the
following mortality tables :
a) for to October 1 Annuit
Table: for plan ),ears besinning on October 1.2010 and October 1.2011: for Pre-
Retirement Mortalit), the RP-2000 Combined Mortality Table with a blue collar
iustment- for the RP-ined Mortalitv Ta
with a blue collar adjustment. and for Post-Retirement Disabled Mortality the RP-2000
Combined Mortality Table;
(b) for plan )zears beeinning on and after October 1. 2012: for Pre-Retirement Mortality the
RP-2000 Combined Mortalitlz Table with a blue collar adjustment projected 15 years from
valuation date. for Post-Retirement Healthy Mortality the RP-2000 Combined Mortality
Table with a blue collar adjustment projected 7 years from valuation date. and for Post-
irement Disab -2000 Combi . For ou
determinins the period that benefits are paid to a widow or widower who was maried to a
deceased member for less than ten )rears. the 1994 Life Expectancy Table shall be used.
Section 2. Section 63 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 63.
fund.
Source of moneys for fund; computation of liability; use and investment of
(b) Each member of this System hired before September 30,2013 shall contribute 10% of
his Salary to the Fund. Each member of this System hired on or after September 30,
2013 shall contribute 10.5% of his Salary to the Fund. The City shall, solely for
purposes of complying with section 414(h) of the Internal Revenue Code, pick up
contributions required to be made by the members under this System. The
contributions so picked up shall be treated as employer contributions for purposes of
determining their tax treatment under the Intemal Revenue Code. No employee shall
438
havine them paid by the city to the System.
have the receive the con instead
Section 3. Section 66.1 of Part 1, Subpart B,
Miami Beach City Code, is amended to read:
Article IX, Related Special Acts of the
Section 66.1 Normal form of benefit; benefit options.
(e) Upon attairunent of normal retirement age. as described herein. the member shall be
fullv vested in the benefits under the Svstem.
Section 4. Section 70 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 70. - Return of contribution.
(a) Except as provided in subsections (b) and (c) of this section, whenever any member
in the service of either the fire or police department shall sever his connection with such
department either voluntarily or by lawful discharge, or by death not attributed to his active
duties prior to the completion of five years of membership in the department, or by death
in active service after the completion of five years of membership in the department
leaving no Surviving Spouse, Domestic Partner, children or Dependent Parents entitled to
pension benefits under this System, such member or his estate shall be entitled to the return
of all the moneys he has contributed into this System, together with accumulated interest
on the sum, at the rate of three percent per annum, computed until date of payment to the
member or his estate, unless in the event of discharge or voluntary severance such member
has at that time qualified under the terms of this System for a pension from the System.
No payment shall be made under this paragraph to a member unless the member has made
a written request for the pa)rment in the form and manner determined by the Board.
Section 5. Section 79 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 79. - Deferred Retirement Option Plan (DROP).
(l) Compliance with Internal Revenue Code Section 414(k) and 414(i). To the extent
uired under the Internal Revenue Code, the DROP shall be treated as a
contribution plan to the extent that the member's benefits under the System are based on
the member's DROP account. The amount of "annual additions" (as such term is defined
439
in Section 415(cX2) of the Internal Revenue Code and Treasury Regulations $1.415(c)-
1(b)) which mav be allocated under the DROP to a member's DROP aclaqlLfol 4
"limitation lrear" may not exceed the maximum permissible amount under Section
415(cX1) of the Internal Revenue Code and Treasury Regulations $1.415(c)-l(aXl) (the
"Annual Maximum Amount"). In addition. for purposes of determining a member's
Amual Maximum Amount. the member's compensation shall be determined in compliance
with Treasury Regulations $ 1.4 1 5(c)-2.
Section 6. Section 82 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 82. - Military service.
(c) Notwithstanding any provision of this plan to the contrary. effective as of
December 12. 1994. contributions. benefits and service credit with respect to qualified
military service will be provided in accordance with Section 414(u) of the Internal
Revenue Code of 1986. as amended. and USERRA. as applicable.
Section 7. Section 83 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 83. - Limitations on benefits.
(a) In addition to the other limitations set forth in this System and notwithstanding any
other provision of the System to the contrary, the maximum annual pension payable under
the System shall not increase to an amount in excess of the amount permitted under section
415 of the Internal Revenue Code, with such limitation specifically subject to subsections
(F), (G) and (I) of section 415(bX2) of the Internal Revenue Code and sections 415(bX11),
415(kX3) and 415(n) of said Code. The limitation year shall be the 12 month period
ending each September 30.
Section 8. Section 84 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 84. - Distribution limitation.
Notwithstanding any other provision of this System, all distributions from this System
shall conformto sectiona0l(aX9) of the Internal Revenue Code in general andto section
a01(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 followine conditions:
(a) If the retirement income is payable before the member's death:
440
(1) It shall either be distributed or commence to the member not later than April 1
age 70 1/2 . or the calendar year in which the member retires;
r of the cal in which the
distribution later t defi
and (a) shall be paid over the life of the member or over the lifetimes of the member and
's desi b) shal r the oeriod
retirement wit
hasmemberentire in tir
be
been
remalnln interest
of dist in effect at the ti
in the
in
stri
ll be within five
's death butdi with the
1) The ber's
designated benefi ciary:
of the
rvivins S sole desi iarv- in whi
distribution need not begin before the date on which the member would have attained age
Y, and if the member'the distributi
ins. this lied as if
Section 9. Section 85 of Part 1, Subpart B, Article IX, Related Special Acts of the Miami
Beach City Code, is amended to read:
Sec. 85. - Distribution to retirement plan.
(a) Election by distributee. This section applies to distributions made on or after January 1,
1993. Notwithstanding any provision of this article to the contrary that would otherwise
limit a distributee's election under this section, a distributee may elect, at the time and in
the manner prescribed by the Board, to have any portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(b) Definitions. The following words, terms and phrases, when used in this subsection,
shall have the meanings ascribed to them in this subsection, except where the context
clearly indicates a different meaning:
the
member' s desi gnated beneficiary: and
J
441
l. Direct rollover means a payment by the System to the eligible retirement plan
specified by the distributee. Effective as of Januar)' 1. 2008. a non-spouse Beneficiary
ma), make a direct rollover onllu to an "inherited" individual retirement account as
described in Section 408(b) of the Internal Revenue Code.
2. Distributee includes an employee or former employee. In addition, the
employee's or former employee's $urviving Sspouse or domestic partner is a distributee
with regard to the interest of the Surviving $spouse or domestic partner. Effective as of
January 1" 2008. an Emplolzee's or former Employee's non-spouse Beneficiary is a
distributee with regard to the interest of the Employee of former Employee.
3. Eligible retirement plan means an individual retirement account described in
section a08(a) of the Intemal Revenue Code, an individual retirement annuity described in
section 408(b) of the Internal Revenue Code, an annuity plan described in section 403(a) of
the Intemal Revenue Code, or a qualified trust described in section a01(a) of the Internal
Revenue Code, that accepts the distributee's eligible rollover distribution. ++or#ever-in+he
annr*i+y, Effective for distributions made after December 31. 2001. an eligible retirement
annuitv co b) of
Revenue Code and an elisible plan under Section 457(b) of the Internal Revenue Code
which is maintained by a state" political subdivision of a state" or any aeency or
instrumentalitv of a state or political subdivision of a state and which aerees to separately
account for amounts transferred into such plan from this Plan.
4. Eligible rollover distribution means any distribution of all or any portion of the
balance to the credit of the distributee; except that an eligible rollover distribution does not
include any distribution that is one of a series of substantially equal periodic payments (not
less frequently than annually) made for the life (or life expectancy) of the distributee or the
joint lives (or joint life expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten years or more; any distribution to the extent
such distribution is required under section a01(a)(9) of the Internal Revenue Code; and the
portion of any distribution that is not includable in gross income.
Section 10. 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 apart hereof.
Section 11. Codification. This Ordinance shall be codified in the Code of Ordinances of
442
the City of Miami Beach.
Section 12. 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 2015.
PHILIP LEVINE
MAYOR
ATTEST:
RAFAEL E. GRANADO
CITY CLERK
(Sponsored by Commissioner-)
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Edrs
Dote
443
dt
*-
IIITERNAIJ RE\IENI,E SERVICE
P. O. BOX 2508
CINCIN!{ATI, OH 452OL
DaEe: JAN29?014
CITY OF MIAI{I BEACHc/o BrRE AlrD porrrcE pBIsroN oFFrcE
1591 Ii4[CEIGAIiI A1IE STE 355
I{IAIYII BEACII, FTJ 33139
rD# 95048
Plan Narne;' CIIY PENSIO}I FOR FIREFIGITTERS &
POIJICE IN ITTE CITY OT'MIAMI BEACS
Plarx lilunber: 001.
Dear Applicant:
I{e have made a favorable determ:inatiou on the pJ-an ideutLtled above baaedon the Lnformatlon. you have supplied. Please keep thia letter, the a;rpllcaeionforms Eubmitted to reguest this letter and all correspoudence wLth Ebe laternal
Revenue Service regardlag your appllcation for a determLnation letter iu your
permaretrt, recorde. You must retal-n tble idormation to preserve your reli.anceou tbie ].etter.
cotrtinued quallfication of the pJ-an under 3-ts preeent form wl1I depeadou its effect, la operatioa. See eectioa 1.40i.-1(b) (3) of tbe lDcome TaxRegulatlonE. we wl1l revLew tbe Btatus of tbe plan i"u operation perlodlcal-Ly.
'Xhe enclosed PublicatLon ?94 explaias tbe Eigtrificance and the scope oftbiE f,avorable determLnatlon letter based on the determllrat,J.on request,e
EeLected on your application for:rre. PublLcaLioo.794 deacrlbes tbe Lnformationthat muet be retalned to bave reliance on tbis favorable deterrrination letter.llbe publ-icattou al-so prov5.des examples of the effect of a pIa'rrs operatlon oalte gualifLed etatus and diesusaes tbe reporting regulremeotss for qual.J-f,iedplane. PIeaEe read Itrblicatiou 794.
Ihl.s letter relates only to tbe atatus of your plan r:nder the Internal
Revelrue Code, It ie not, a determinatiou regiardiag the effeet of other federalor local atatutes.
ThLs determiuation letter givee no reliance for any qualificatiou changethat becomes effectLve, Errry guidance published, or arry atatutea enacted, aftertbe,iseuince of the Cumulative Iriat (unless the Ltem bae beeu ideutified in the
Curmrlat,ive IiEt) for Ehe cycle under which this application wae eubmitted,.
llhls Letter may not be relied on after Ehe end of the plan's first
fLve-year remedlal ameudmenE cycle tbat ends more than 12 monebs after tbeapplicatioo rias received,. ThiE Letter ergrirea otr ifanuarl, 3L, 20L4. This letter
coneLdered the 2007 Cumrlative LLEt ot Changes ln Btan Quallfication
Reguiremeut,e.
Thls determlaatLoa ie eubJect to your ad,option of the proposed aneudmenus
ATTACHMENT
DEPARTMETiIT OF THE TREASI'RY
Errqlloyer ldentif ication Nr:mber :
s9-6000372
DIiN:
209053011
Peraon to Coatact:
RTIIE CEE![
Contact TeJ.ephone Nudber:
1626) 927-1423
IJetter 2oo2 (Do/ccl
444
-2-
CIEY OF MIAMI BEACH
subrnitted in your letter dated. 7-29-L3. The prolrceed amendments
sbould. be adoBted on or before the dat,e preecribed by tbe reguJ.atlone rmder
Code secE,ion 401(b).
Th16 determination is condLtloned. upon your adoptLon of the propoeed.
re8tated, plen aB submitted with your or your repreeentat,lveta letter dated2-23-lL. Tbe propOsed plan should be adopted oa or before thedate preacribed by the regulatlons uoder Code section 401(b).
Tbie determi.sation letter is baEed aolely on your assertion that tbe planls eggitled to be treated as a cioveramenta]- plan r:nder section 414(d) of theIatetraL Reverrue Code.
fllie determlDatLon Ietler ie applLcable to the plarr and related docnmeutesubmitted in conjr:nction wLth your applJ.catlon flled during the remedial
amendment cycl.e ending zoo9.
:flris te uot a determlaat,ion with reapect to a.uy language in the plan orany amendment to the Plan that refLects gectl-on 3 of the Ddfeuse of lrlarrLageAct, Pub. rJ, 104-199. 110 8eat, 2419 (DOI[A) or U.S. v. Irlindeor, 133 S. CL. 2575(2013), whicb lanral.idated tbat sectiolx.
Irye have seat. a copy of thlB letEer to your reBre6eutative ae iadicated irethe Fofi 2848 Power of Attoraey or appointee as ind.l.cated by tshe Form 8821 TaxInf ormat,ion AuthorizaLion.
If you have questions conceroing this natter, pleaee contact the persou
whoee aame a.ad teLephone rnrmber are ehovlrr alrorre.
Slucerel-y,
Enclogures:
Publlcatl-on ?94
G&) €- 3[$-
A:rdrew E. Zuche!:ulanDirector, BP Rullllgs & AgireementB
freEter 2002 (DOICG)
445
/ATTACHMENT
954.-i27.1616 phone
9,i4..52.5.008:l fav
rvn *,.gir briel roede r.comGRSGabriel Roedcr Smith & Company
Constrltants 6< Actu:rries
Orre East llrorvard Blvd.
Suitc .50.5
Ft. I-audcrdale. FL -13301-I 804
September 14,2015
Ms. Donna Brito
Executive Director
City Pension Fund for Firefighters and Police Officers
in the Cify of Miami Beach
1691 Michigan Avenue, Suite 355
Miami Beach, Florida 33139
Re: Proposed Ordinance No.
Dear Donna:
As requested, we have performed an actuarial review of the attached proposed Ordinance
under the City Pension Fund for Firefighters and Police Officers in the City of Miami
Beach.
Based upon our review, the proposed Ordinance:
Adds definition of Actuarial Assumptions for determining actuarial equivalence
Clarifies Member contributions picked-up by the City may not be paid directly to
Members
clarifies Members are fully vested upon attainment of normal retirement age
Provides requirement that Members who separate from emplolrnent make written
request for a refi.urd of Member contributions
Clarifies treatment of Deferred Retirement Option Plan (DROP) under the Internal
Revenue Code (IRC)
6. lncorporates requirements of the uniformed Services Employment and
Reemployment Rights Act (USERRA) under the IRC7. Provides the limitation year is the fiscal year ending September 30e for purposes
of applying the maximum benefit limits underthe IRC8. Provides minimum distribution requirements of the IRC9. Provides rollover requirements under the IRC
10. Repeals all ordinances and parts of ordinances in conflict herewith
I l. Provides for severability
12. Provides for codification
13. Provides for an effective date
In our opinion, based upon the actuarial assumptions and methods employed in the October
1,2014 Actuarial Valuation, the proposed Ordinance is ano cosl Ordinance under State
minimum flmding requirements.
l.
2.
3.
4.
5.
446
Ms. Donna Brito
September 14,2015
Page Two
Please forward a copy of the Ordinance upon passage at second reading to update our
records.
We are available to respond to any questions concerning the above.
Sincerest regards,
\9 d-r , \ t/X 3 Ll .{,,'\r
Lawrence F. Wilson, A.S.A.
Senior Consultant and Actuary
Enclosure
Gabriel Roeder Smirh Sc Company
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