HomeMy WebLinkAboutBIS - Amend Miami Beach Employees' Retirement Plan (4/30/2026)
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO: Mayor Steven Meiner and Members of the City Commission
FROM: David Martinez, Assistant City Manager
MEETING DATE: May 20, 2026
SUBJECT: BUSINESS IMPACT ESTIMATE
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA AMENDING THE MIAMI BEACH EMPLOYEES’ RETIREMENT
PLAN CREATED BY ORDINANCE NO. 2006-3504, AS SUBSEQUENTLY AMENDED,
BY AMENDING SECTIONS 2, 3, 4 AND 5 TO CORRECT ERRORS IN INTERNAL
CROSS-REFERENCING; TO INCREASE THE DROP PARTICIPATION PERIOD FOR
MEMBERS IN THE AFSCME BARGANING UNIT FROM FIVE TO EIGHT YEARS; TO
ALLOW FOR THE REEMPLOYMENT OF RETIREES AFTER A PERIOD OF
SEPARATION OF AT LEAST SIX MONTHS, CONTINUED RECEIPT OF A
RETIREMENT ALLOWANCE DURING EMPLOYMENT, AND FOREGOING
ELIGIBLITY TO REJOIN THE PLAN; AND BY CREATING A NEW SECTION 16 OF
THE PLAN TO ALLOW EMPLOYEES PARTICIPATING IN THE DEFINED
CONTRIBUTION SYSTEM TO JOIN THE PLAN AND VEST IN THE CURRENT
SCHEDULE OF BENEFITS AFTER FIVE YEARS OF CREDITABLE SERVICE;
REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
Is a Business Impact Estimate Required? (yes, in part)
☐ Yes ☒ No (If no, please check one of the boxes below)
If one or more boxes are checked below, this means the City of Miami Beach has
determined that a Business Impact Estimate for the above-referenced Ordinance is not
required by State law.
☒ The proposed Ordinance is required for compliance with Federal or State law or
regulation;
☐ The proposed Ordinance relates to the issuance or refinancing of debt;
☐ The proposed Ordinance relates to the adoption of budgets or budget
amendments, including revenue sources necessary to fund the budget;
☒ The proposed Ordinance is required to implement a contract or an agreement,
including, but not limited to, any Federal, State, local, or private grant or other
financial assistance accepted by the City;
☐ The proposed Ordinance is an emergency ordinance;
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Business Impact Estimate
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☐ The Ordinance relates to procurement; or
☐ The proposed Ordinance is enacted to implement the following:
a. Private applications for comprehensive plan amendments and land
development regulation amendments;
b. Development orders, development permits, and development agreements;
c. Sections 190.005 and 190.046, Florida Statutes, regarding community
development districts;
d. Section 553.73, Florida Statutes, relating to the Florida Building Code; or
e. Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code.
If none of the above exceptions apply, this Business Impact Estimate is hereby provided
in accordance with Section 166.041(4), Florida Statutes.
1. Summary
The Ordinance proposes to amend the Miami Beach Employees Retirement Plan
(MBERP) in three significant respects:
(1) extend the Deferred Retirement Option Plan (DROP) maximum participation
period from five to eight years for employees withing the American Federation of
State, Local, and County Employees (AFSCME). This extension to the DROP was
bargained by the parties and ratified by both the membership and the Commission.
The City is obligated to amend the MBERP to conform to the change agreed to in
the collective bargaining agreement.
(2) to allow for the rehiring of retirees from MBERP without causing them to lose
their retirement allowance when reemployed and without allowing them to accrue
a new benefit under MBERP. These rehired retirees will receive a contribution in a
deferred contribution plan or 401(a) as an alternate retirement allowance.
(3) to allow employees who elected not to join MBERP, but instead elected a defined
contribution plan, one last opportunity to join MBERP as new participants under
the current schedule of benefits without the ability to purchase past service credit.
The proposed Ordinance governs employment matters of the City as a public
employer. As such, the proposed Ordinance has no direct fiscal impact on private
industry.
A summary of the Pension Plan changes proposed by the Ordinance and its
purpose is more fully set forth in the Commission Memorandum , the actuarial
impact statement accompanying the Ordinance, as well as in the Ordinance itself .
2. An estimate of the direct economic impact of the proposed Ordinance on private, for-
profit businesses in the City of Miami Beach, if any:
Not applicable.
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(a) An estimate of direct compliance costs that businesses may reasonably incur ;
(b) Any new charge or fee imposed by the proposed Ordinance or for which businesses
will be financially responsible;
(c) An estimate of the City’s regulatory costs, including estimated revenues from any new
charges or fees to cover such costs.
3. Good faith estimate of the number of businesses likely to be impacted by the proposed
Ordinance:
Not applicable.
4. Additional comments:
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