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93-2883 OrdinanceORDINANCE NO. 93-2883 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLGRIDA, AMENDING ORDINANCE NO. 88-2603 WHICH CREATED THE UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS RETIREMENT SYSTEM BY ALLOWING THOSE MEMBERS OF THE SYSTEM ON OCTOBER 17, 1993 WHO.ELECTED TO JOIN THE DEFINED CONTRIBUTION RETIREMENT SYSTEM A PERIOD OF TIME TO RECONSIDER THEIR PREVIOUS ELECTION, PROVIDING FOR A REPEALER, BEVERABILITY AND AN EFFECTIVE DATE. Whereas, the City of Miami Be~.ch zdopted Ordinance 88- 2603 to provide for a retirement system for its Unclassified Employees and Elected Officials on April 1, 1988; and, Whereas, Ordinance 88-2603 was amended with the adoption of Ordinance 92-2812 which allowed Members of the Unclassified Employees and Elected Officials Retirement System to transfer the value of their currently accrued benefit to a defined contribution retirement system; and, previous decision. Whereas, the City desires to allow certain of the Members to have an opportunity to reconsider their NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Commission of the City of Miami Beach, Florida: Section I That Section 5.11 be amended as follows: 5.11 Transfer of Benefit 1. Commencing on the effective date of this Ordinance and for sixty (60) days thereafter (the "Transfer Election Period"), an Employee Member shall have an irrevocable right to transfer the present value of his accumulated benefit or the amount of the Employee's contributions plus the regular interest provided for in Section 7.06(d), whichever is greater, from this plan to the Defined Contribution Retirement Plan. Upon such transfer, the Employee Member shall have no further ~'ight~ or benefits under this system. 2. Commencing on December 1, 1993 and for thirty (30) days thereafter (the "Transfer Reconsideration Period"), any previous Member who was a Member on October 17, 1992, shall have an right to rescind the previous election by electing to transfer the balance of any Defined Contribution account int,-, this plan. After such transfer, the previous Member shall bc reinstated into membership in this system and shall have ali rights and benefits of persons ~s of October 17, 1992. Section 2 Repealer Ail Ordinances or parts of Ordinances in conflict herewith shall be and the same are hereby repealed. Section 3 Severability 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 force and effect as fully as if the item adjudged invalid or unconstitutional was not originally a part hereof. Section 4 Effective Date This Ordinance shall take effect on December 1, 1993 after its adoption on second reading. PASSED AND ADOPTED by the Mayor a~J.,~ity Commission of the / city of Miami Beach, Florida this 17/h ,/ day of ~November , 1993. Attest: Mayor City Clerk 1st reading 10/20/93 2nd reading 11/17/93 FORM APPROVED LEGAL DEPT. CITY OF MIAMI BI=ACH C',TYHALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. To: Mayor Seymour Gelber and Members of the City Commission From:Roger M. Car~.~ City Manager November17, 1993 Sub j ect: Ordinance allowing those persons who elected to transfer their retirement funds from the defined benefit plan to the defined contribution plan a reconsideration period Administrative Recommendation The Administration recommends that the City Commission adopt this Ordinance after a public hearing and second reading. Backqround On October 8, 1992, the City Commission adopted Ordinance 92- 2812 which allowed members of the Unclassified Employees and Elected Officials Retirement System to transfer their retirement assets from that plan to the newly created defined contribution plan. The amount to be transferred was the present value of the persons accrued retirement benefit. The estimates of the amount' that was to be transfered was based on a set of assumptions that were different than the assumptions used by the actuary in the calculation of the amount to be transfered. For certain persons the actuary calculated amount was different than the internally estimated amount. Certain of those who made the election have requested the ability to reconsider their election to transfer. 'Analysis The adoption of this Ordinance has no immediate impact on the cost of the Unclassified Employees and Elected Officials Retirement System. The only effect of this Ordinance is to allow a eight employees a thirty day period of time to reconsider their previous election. Conclusion As there is no cost implication of this Ordinance and the effect is beneficial to those interested employees, the Administration recommends that the City Commission adopt this Ordinance after a public hearing and second reading. RMC/RJN/me AGENDA ITEM DATE