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93-2877 Ordinance ORDINANCE NO. 93-2877 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 89-2603, WHICH CREATED THE UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS RETIREMENT SYSTEM; AMENDING THE POWERS OF THE BOARD OF TRUSTEES, MODIFYING THE DUTIES OF THE FINANCE DIRECTOR, PROVIDING FOR A BOARD APPOINTED ADMINISTRATOR, PROVIDING FOR A REPEALER, SEVERABILITY AND AN EFFECTIVE DATE. Whereas, the Board of Trustees of the Unclassified Employees and Elected Officials Retirement System of the city of Miami Beach, Florida has requested the ability to employ an Administrator under the joint supervision of its Board and the Board of Trustees of the General Employees Retirement System; and Whereas, the Mayor and city Commission wish to make this change and others to the Pension Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: section 1 Article 7, section 7.05, is amended as follows: 7.05 a Chairman. entitled to The Board shall a Vice Chairman and one (1) vote. annually elect from its membership a Secretary. Each trustee shall be section 2 Article 7, section 7.06, is amended by adding subsection "q", stating as follows: 19l The Board of Trustees may appoint an Administrator of the pension system and fix the terms of employment of such Administrator who shall serve at the pleasure of the Board. Section 3 Article 9, section 9.01, is amended as follows: 9.01 Finance Director Pension Administrator The Finance Director Pension Administrator shall have the responsibility for the administration of the Unclassified System. As such, he will have responsibilities which shall include, but not necessarily be limited to, the duties specified in this section 9.01. (a) The Finance Director Pension Administrator shall establish and maintain records on all persons covered under the Unclassified System. (b) The Finance Director Pension Administrator shall verify the amounts entered by the Payroll Department as 1 deductions for contributions by Employees to the Unclassified System and shall certify all payrolls on which such deductions are entered. (c) The Finance Direotor Pension Administrator shall receive applications for retirement and other benefits, compute the retirement allowances, pension and lump sum settlements, compute and credit interest to individual accounts and make such analysis, computations and other determinations and records as the Board may deem necessary for the efficient operation of the Unclassified System. (d) It shall be the duty of the Fin~noe Direotor Pension Administrator to notify the Board of any new Members, withdrawal of Members, applications for retirement and lump sum payments, and other such personnel information as the Board may require. (e) The Fin~noe Direotor ohall be the oUDtodian of the aDDetD of the Unclassified Cystem and shall furnish bond or Durety therefor aooeptable to the Bo~rd. He Dhall depoDit all cash on hand in regularly designated depositories of the city and Dhall require ourety or collateral therefor as is required by the Charter or Ordinances of the City for other fundD of the City, and Dhall hold ~ll investments under j oint custody of himoelf and the Board. -U:U +f7- The Finance Direotor Pension Administrator shall maintain the necessary to show receipts by payroll deductions, City contributions, donations and investment returns, to show disbursements for retirement allowances, pensions and lump sum settlements. He shall also keep other financial records of the monies and investments of the Unclassified System as the Board deems necessary. iil ~ All payments from the funds of the Unclassified System shall be made by the Chief Aooountant Pension Administrator only upon vouchers signed by the Finance Direotor Chairman of the Board. A duly attested copy of the resolution of the Board bearing on its face a specimen signature of the Chief Aooountant Pension Administrator shall be filed as authority for making payments upon such vouchers. No voucher shall be drawn unless it shall have been previously authorized by resolution of the Board, except that the Board may, by resolution authorize the Finance Director to issue vouchers for refunds of Accumulated Employee contributions in accordance with section 5.07 and for minor adjustments in contributions by Employees. i9l fftt For the purposes of meeting current disbursements, cash equal in amount, as nearly as practicable, to the regular demands for the ensuing month, shall be kept available in deposit. 2 Section 4 Article 9 is amended by adding section 9.03, Finance Director, as follows: 9.03 Finance Director igl The Finance Director of the city shall be the custodian of the assets of the System and shall furnish bond or surety therefor acceptable to the Board. He shall deposit all cash on hand in reqularlY desiqned depositories of the city and shall require surety or collateral therefor as is required by the Charter or Ordinances of the city for other funds of the city. and shall hold all investments in i oint custody between himself and the Board. lQl with reSDect to the duties contained herein. the Finance Director shall be considered a fiduciary of the System. section 5 All Ordinances or parts of Ordinances in conflict herewith shall be and the same are hereby repealed. section 6 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 articles, sections, paragraphs, sentences, clauses or phrases of this Ordinance, which shall remain in full force and effect as fully as if the item so adjudged invalid or unconstitutional, was not originally a part hereof. section 7 This Ordinance sha.ll take effect on December 1, 1993 after its adoption on second reading. L-~ commission of of October PASSED AND ADOPTED by the Mayor and the City of Miami Beach, Florida th's 6th 1993. -- Attest: City Clerk 1st reading 9/22/93 2nd reading 10/6/93 FORM APPROVED LEGAL DEPT. --=:lc- '9 By ..l2.~~~~ Date 3 CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 CITY OF MIAMI BEACH OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. 5ifl- 9 "3 October 6, 1993 To: Mayor Seymour Gelber and Members of the City Commission From:Roger M. Carlto~ .~ City Manager -Vu Subject: Changes to the Unclassified Employees and Elected Officials Retirement System Ordinance Recommendation: The Administration recommends that the City Commission adopt this Ordinance after a public hearing and second reading. Analysis: On October 7, 1993 Ordinance 88-2603 which governs the Unclassified Employees and Elected Officials Retirement System was amended to cause the expenses of the Board for the operations of the System to be paid from the System. The expenses are estimated to total $250,000 for the 1992/93 fiscal year and are budgeted to be $245,000 for fiscal year 1993/94. This change was made to assure that the expenses of the System were incorporated in the decision making process of the Board. The Board of Trustees of the System have requested that the Ordinance be changed to allow them to hire an Administrator to conduct the day to day affairs of the System. The Board prefers to have this control over the operations rather than having the Finance Director of the City be named as the Administrator in the Ordinance. As it is normal procedure to maintain autonomy of the pension governance process, this request is supported by the Administration. 5 DATE R-3-B IO-l,- Cf3 1 AGENDA ITEM The attached Ordinance provides the ability to the Board to employ their own Administrator and sets out the powers and duties of the Administrator. The Finance Director of the City will continue to serve as custodian of the assets of the System as in the past. Additional changes affected by this Ordinance are to include a provision for the position of Vice-Chairmen of the Board and for annual elections of the officers of the Board. Although this Ordinance would allow the Board of Trustees to employ its own Administrator, the Boards of Trustees of the Unclassified Employees and Elected Officials Retirement System and the General Employees' Retirement System of the City of Miami Beach have agreed to jointly employ a single Administrator who will serve both Systems. Conclusion: The employment of a full time Administrator jointly reporting to the Board of Trustees of both pension systems will have a positive impact on controlling the operating costs incurred by the two Plans. RMC/RJN/me 6 2