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93-2880 Ordinance ORDINANCE NO. 93-2880 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 1901 WHICH CREATED THE GENERAL EMPLOYEES' PENSION SYSTEM; MODIFYING THE POWERS AND DUTIES OF THE BOARD, AUTHORIZING THE BOARD TO EMPLOY AN ADMINISTRATOR, MODIFYING THE DUTIES OF THE FINANCE DIRECTOR, PROVIDING FOR A REPEALER, SEVERABILITY AND AN EFFECTIVE DATE. Whereas, the Board of Trustees of the General Employees' Pension System of the city of Miami Beach, Florida have requested the ability to employ an Administrator under the joint supervision of their Board and the Board of Trustees of the Unclassified Employees' and Elected Officials 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 is amended as follows: 7.05 The Board shall annually elect from its membership a Chairman and a Vice Chairman and shall elect a Secretary from among the City Manager's appointees. Each trustee shall be entitled to one (1) vote, and five (5) concurring votes shall be necessary for a decision by the trustees at any meeting of the Board. 7.06 The Board shall have, in addition to all other powers and duties arising out of this Ordinance not otherwise specifically reserved or delegated to others, the following specific powers and duties: (a) Hold regular meetings at least quarterly in each year and special meetings at such time as a majority of the Board or the Chairman may deem necessary. (b) Establish rules and regulations to implement the provisions of this Ordinance, and formulate policy for the proper administration of the System and the transaction of its business. (c) Consider and pass on all applications for retirement and other benefits, authorize the granting of all retirement allowances, pensions and lump sum settlements, and suspend any payment or payments, all in accordance with the provisions of this Ordinance. (d) Adopt from time to time service and mortality tables and the rate of regular interest for use in actuarial calculations in connection with the System. (e) Submit to the City Manager on or before July 1 of each year an estimate of the amount of appropriation required for the purpose of the system for the following fiscal year. -1- (f) Recommend to the City Commission the Employment of such actuarial, legal or investment counselor specialized technical assistance as may be required for the efficient operation of the System; and prepare and oubmit to the city ~~anaqer, prior to the beginninq of each fiscal year, a budget of the operating expenoeo for each year. (g) Maintain accounts and records showing the fiscal transactions of the System and keep in convenient form such data as may be necessary for the actuarial valuations of the System; require from each person covered under the System such information as shall be necessary for the proper operation of the System; require the maintenance of adequate accounting records which shall at all times reflect the financial condition of the System. (h) Provide for the receipt of all payments made to the System and records thereof, and cause them to be deposited immediately with the Finance Director of the city. custodian of the fund. (i) Keep a permanent record of all proceedings of the Board which shall be available for examination by any Member, Retirant or Pensioner, or by any Officer of the city. (j) Designate for specified periods, or as occasion may require, three (3) physicians who are not eligible for membership in the System as Physical Examiners; such Physical Examiners shall arrange for, and conduct, all physical and mental examinations required under this Ordinance, shall investigate all essential statements and certificates in connection with applications for disability retirement, and shall report in writing to the Board their conclusions and recommendations upon all matters referred to them. (k) Be the legal custodian of all cash and securities of the System, invest and reinvest all cash not required to meet current disbursements in securities; and subject to the limitations of this Ordinance, the Board shall have full power to hold, purchase, sell, assign, transfer and dispose of any of the securities and investments as well as the proceeds of such investments. (l) Provide for certification on its behalf of all warrants issued in accordance with actions of the Board authorizing payments for benefits, expenses and investments out of funds belonging to the System, and provide for certification on its behalf of all amounts required by the System to be levied as taxes by the city. em) Cause a general investigation to be made by a Consulting Actuary, at least once every three (3) years, and cause recommendations to be furnished as a result of such investigation as to the actuarial tables and rates of contributions to be used. en) Cause an audit of the affairs of the System to be made annually, with interim quarterly reports by an independent certified Public Accountant, and submit a copy thereof to the City Manager as soon as possible after the end of each fiscal year. -2- (0) Accept any gift, grant or bequest of any money or securities under the terms designated by the grantor, or, if no special purpose or allocation is specified, for credit to the funds of the System. (p) Make available to Members, Retirants and Pensioners a financial statement including a summary of the report of the certified Public Accountant, and issue to each Member, as soon as practicable following the close of each fiscal year, an individual statement showing the Accumulated Employee contributions standing to his credit. (q) Require the preparation of an annual report as of the close of each fiscal year for submission to the city Commission; said report shall embody, among other things, a financial balance sheet and a statement of receipts and disbursements for the fiscal year, schedules of acquisitions and sales or exchanges of investments, a statement of investments owned at the close of the fiscal year and other pertinent financial and operating data. (r) Establish rules governing the election of the trustees as described in section 7.02 (b) and (c). ~ Mav apPoint an Administrator of such Pension Svstem and fix the terms of employment of such Administrator who shall serve at the pleasure of the Board. section 2 Article 9 is amended as follows: 9.01 Fin~Rce Director Pension Administrator The Finance Director Pension Administrator shall have responsibility for the administration of the 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 Fin~nce Director Pension Administrator shall establish and maintain records on all persons covered under the System. (b) The FiRuRcc Director Pension Administrator shall verify the amounts entered by the Payroll Department as deductions for contributions by Employees to the System and shall certify all payrolls on which such deductions are entered. (c) The Finance Director Pension Administrator shall receive applications for retirement and other benefits, compute retirement allowances, pensions and lump sum settlements, compute and credit interest to individual accounts and make such analyses, computations and other determinations and records as the Board may deem necessary for the efficient operation of the System. (d) It shall be the duty of the FiRuRcc Director Pension Administrator to notify the Board of any new Members, withdrawal of Members, applications for retirement and lump sum payments, and such other personnel information as the Board may require. -3- (e) The Finance Director of the City ohall be the cuotodian of the assets of the Cystem and shall furnish bond or ourety therefor acceptable to the Board. He ohall deposit all cash on hand in rcqularly desiqnated depooitories of the City and ohall require surety or collateral therefor as is. required by the Charter or Ordinanceo of the City for other funds of the City, and shall hold all investments under the joint custody of himoelf and the Board. .!.!U. -tf+ The Finance Director Pension Administrator shall maintain necessary records to show receipts by payroll deductions, City contributions, donations and investment returns, and to show disbursements for retirement allowances, pensions and lump sum settlements. He shall also keep such other financial records of the moneys and investments of the System as the Board deems necessary. ifl ~ All payments from the funds of the System shall be made by the Chief Accountant Pension Administrator only upon vouchers signed by the Finance Director Chairman of the Board of Trustees. A duly attested copy of a resolution of the Board bearing on its face the specimen signature of the Chief Accountant 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 Pension Administrator to issue vouchers for refunds of Accumulated Employee contributions in accordance with Section 5.08 and for minor adjustments in contributions by Employees. 19l fftt For the purpose 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. 9.02 FINANCE DIRECTOR .uu 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 reqularlv desiqnated 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 under the ioint custody of himself and the Board. LQl with respect to the duties contained herein. the Finance Director shall be considered a fiduciary of the System. Section 3 All Ordinances, and parts of ordinances, in conflict herewith shall be and the same, are hereby repealed. -4- section 4 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 a part hereof. section 5 This Ordinance shall take effect on December 1, 1993 after its adoption on second reading. PASSED and ADOPTED by the Mayor and City Commission of the City of Miami Beach, Florida this 20th day of October 1993. Attest: ~~, ~ ~l1 City Clerk 1st reading 10/6/93 2nd reading 10/20/93 FORM APPROVED LEGAL DEPT. By 'ICY 1-2J--1'l Date -5- 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. 513 -q ~~ October 20, 1993 To: Mayor Seymour Gelber and Members of the City Commission From:Roger M. Carlton~ City Manager Subject: Changes to the General Employees' Retirement System Ordinance Recommendation: The Administration recommends that the City Commission adopt this Ordinance on second reading after a public hearing. Analysi~ The collective bargaining agreements between AFSCME and the City produced numerous changes in the General Employees' Retirement System. One of the changes negotiated was that the Board of Trustees would be responsible for paying the operating expenses of the System. These expenses are estimated to be $700,000 this fiscal year and are budgeted at $699,000 for fiscal year 1993/94. This change was made to assure that the expenses of the System were incorporated into the decision making process of the Board. As the Board of Trustees has become responsible for the operating expenses, they have requested the ability to hire their own Administrator to conduct the day to day affairs of the System. The Board prefers to have this control over the administration of the System rather than having the Finance Director of the City 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. 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. A final change effected by this Ordinance is to provide for an annual election of the officers of the Board of Trustees. 55 -1- AG~~~~ ~ _ 3 - c.. DATE~O- 20-Cf,=S Although this Ordinance would allow the Board of Trustees of the General Employees' Retirement System to employ their own Administrator, they have agreed to jointly employ a single Administrator reporting to them and the Board of Trustees of the Unclassified Employees' and Elected Officials'Retirement System. Conclusion: The employment of a full time Administrator by the Board of Trustees will have a positive impact on controlling the operating costs incurred by the Pension Plan. RMC/RJN/me -2- 56