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HomeMy WebLinkAboutOrdinance 2026-48082026-4808 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 SECTION 62, "DEFINITIONS", ADDING DEFINITION FOR POLICE MANAGEMENT EMPLOYEES; AMENDING SECTION 79, ENTITLED "DEFERRED RETIREMENT OPTION PLAN (DROP)', RELATED TO THE MAXIMUM DROP PARTICIPATION PERIOD; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT HEREWITH; CODIFICATION; SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Administration seeks to extend participation in the deferred retirement option program (DROP) from 8 years (96 months) to 10 years (120) months for Police Management Employees as this term is defined; and WHEREAS, extending the DROP for encourages continuity of valuable and proven leadership of the department. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. That Article IX, Related Special Acts of the Miami Beach City Code, is amended to read: ARTICLE IX. - PENSION SYSTEM FOR DISABILITY AND RETIREMENT OF MEMBERS OF POLICE AND FIRE DEPARTMENTS Sec. 62. — Definitions Police Management Employee means any police officer Member, whose employment with the City is in the unclassified service with a rank of Chief of Police. Sec. 79. - Deferred Retirement Option Plan (DROP) (a) Eligibility. Any active 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 who enters the DROP before September 1, 2012, may elect to enter that program for a period not to exceed 36 months. Notwithstanding, DROP participation for members who enter the DROP before September 1, 2012, may not continue beyond the date when the members 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 members combined years of creditable service and time in the DROP equals 456 months. Provided, members who enter the DROP on or before September 30, 2015, may extend their DROP participation period by 12 months, for a total maximum DROP participation period not to exceed seventy-two (72) months; provided further, members who enter the DROP on or after October 1, 2015, but priorto June 8, 2016 for International Association of Firefighters, Local 1510 (IAFF) and July 20, 2016 Fraternal Order of Police, William Nichols Lodge No. 8 (FOP), may extend their DROP participation period by up to 36 months, for a total maximum DROP participation period not to exceed ninety-six (96) months; and provided further, members who enter the DROP on or after June 8, 2016 for International Association of Firefighters, Local 1510 (IAFF) and July 20, 2016 Fraternal Order of Police, William Nichols Lodge No. 8 (FOP) may participate in the DROP for a period not to exceed ninety-six (96) months. Notwithstanding any other provision of this subsection (b), members in the bargaining units represented by International Association of Firefighters, Local 1510 (IAFF), who entered the DROP on or after June 8, 2016, but prior to November 30, 2024, may extend their DROP participation period by up to twenty-four (24) months, for a total maximum DROP participation period not to exceed one hundred twenty (120) months; and provided further, such bargaining unit members who enter the DROP on or after November 30, 2024 may participate in the DROP for a period not to exceed one hundred twenty (120) months. Notwithstanding any other provision of this subsection (b). a Police Management Employee who is participating in the DROP on [insert effective date of 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. Members in the bargaining units represented by International Association of Firefighters, Local 1510 (IAFF) who are participating in the DROP on November 30, 2024 and elect to extend their DROP participation period must complete such fortes as are required by the Board no later than February 20, 2025. Police Management 49374736-4238, v. 1 (rev 030626) 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 Worker's Benefits Protection Act, as same may be amended from time to time. SECTION 2. REPEALER. All ordinances or parts of ordinances and all section and parts of sections in conflict herewith are hereby repealed. SECTION 3. CODIFICATION. It is the intention of the City Commission, and it is hereby ordained, that the provisions of this Ordinance shall become and be made part of the Code of the City of Miami Beach, as amended; that the sections of this Ordinance may be re -numbered or re -lettered to accomplish such intention; and that the word "ordinance" may be changed to "section' or other appropriate word. SECTION 4. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 5. EFFECTIVE DATE. ;�� This Ordinance shall take effect ten days following adoption. iINCONF 0 TED,, 4'ts4. F9\hp PASSED and ADOPTED this 1 8 day of MAn crf , 2026. •'•�'CH 2^: ATTEST: / 0/ MAR 2 0 2026 Rafael E. Granado, City Clerk Steven Meiner, Mayor (Sponsored by: Commissioner Alex Fernandez, Mayor Steven Meiner, Commissioner Tanya K. Bhatt, Commissioner Laura Dominguez, Commissioner Joseph Magazine, Commissioner Monica Matteo-Salinas, and Commissioner David Suarez) APPROVED AS TO FORM &LANGUAGE & FOR EXECUTION S�zo 6 CityAtW W Date 4937-4736-4238, v. 1 (rev 030526) Ordinances -R51 MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: March 18, 2026 9:55 a.m. Second Reading Public Hearing TITLE: 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 SECTION 62, "DEFINITIONS", ADDING DEFINITION FOR POLICE MANAGEMENT EMPLOYEES; AMENDING SECTION 79, ENTITLED "DEFERRED RETIREMENT OPTION PLAN (DROP)", RELATED TO THE MAXIMUM DROP PARTICIPATION PERIOD; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT HEREWITH; CODIFICATION; SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. The Administration recommends adoption of the Ordinance. BACKGROUND/HISTORY Since 2016, Police officer members have been able to join the Deferred Retirement Option Plan ("DROP") upon reaching normal retirement for a maximum period of eight (8) years. The proposed ordinance seeks to extend the DROP period for the current Chief of Police from eight (8) years to ten (10) years. The proposed ordinance defines the term "Police Management Employees" to include the Chief of Police only making the current Chief eligible to extend his DROP from eight to ten years upon request within 30 days from the end of his DROP participation period. The Chiefs DROP cutoff date is August 31, 2026. There are no other present Police employees eligible for this extension nor does the proposal contemplate there being any future eligible Police employees. ANALYSIS The DROP program generally encourages police officers to commit to a longer career with the city beyond normal retirement age, which, since July 2019, for new hires can be as early as age 52 with five years of creditable pension service. A more stable workforce benefits the Department and the City because retaining greater law enforcement experience within the force translates to the delivery of high -quality services. By the same token, extending the DROP for the Chief of Police will enable Administration to retain an experienced and proven leader at the helm of the Department. The proposed ordinance has no financial impact on the City's funding obligation of the Police Officers' Pension Plan as determined by Gabriel, Roeder, Smith, the Plan's actuary. A copy of the actuary's opinion is provided. 747 of 1677 Does this Ordinance require a Business Impact Estimate? Yes (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: 3/512026 See SHE at: https:i/www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION Not Applicable. CONCLUSION The Administration recommends the adoption of this ordinance extending the DROP for the Chief of Police from eight to ten years. Applicable Area Citywide Is this a 'Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? No No Was this Agenda Item initially reauested by a lobbyist which. as defined in Code Sec. 2-481. includes a Drincipal enaaaed in lobbvina? No If so, specify the name of lobbyist(s) and principal(s) Department Human Resources Sponsor(s) Commissioner Alex Fernandez Mayor Steven Memer Commissioner Tanya K. Bhatt Commissioner Laura Dominguez Commissioner Joseph Magazine Commissioner Monica Ma0eo-Salinas Commissioner David Suarez Co-sponsor(s) Condensed Title 9:55 a.m. 2nd Rdg, Extend DROP for Police Chief. (AF-SM-TB-LD-JM-MMS-DS) HR Previous Action (For City Clerk Use Only) 748 of 1677 First Reading Public Hearing on 2/25/2026 - R5 U 749 of 1677 P: 954.5271616 F. 954.5250083 ,.....g.,w�s�in��.com February 18, 2026 Ms. Lorena Bravo Assistant Director, Human Resources Department 1700 Convention Center Drive Miami Beach, FL 33139 Re: Actuarial Impact Statement Dear Ms. Bravo: As requested, we have performed an actuarial review of the attached proposed Ordinance under the City Pension Fund for Firefighters and Police Officers in the City of Miami Beach. Based upon our review, we understand the proposed Ordinance: Amends Section 62, to add the definition of a Police Management Employee. Amends Section 79, to increase the maximum DROP participation period to 120 months for Police Management Employees with prior written authorization. Provides for codification. Provides for severability. Repeals all Ordinances or parts of Ordinances in conflict herewith. Provides for an effective date. In our opinion, based upon the actuarial assumptions and methods employed in the October 1, 2024 Actuarial Valuation, the proposed Ordinance is a no cost Ordinance under State funding requirements. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Gabriel, Roeder, Smith & Company Shelly L. Jones, A.S.A., E.A., F.C.A., M.A.A.A. Consultant and Actuary Enclosure cc: Ms. Donna Brito Mr. Frank Estevez