93-2837 Ordinance
ORDINANCE NO. 93-2837
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
THE DEFINED CONTRIBUTION RETIREMENT PLAN
UNDER SECTION 401(A) OF THE INTERNAL REVENUE
CODE OF 1986, BY PROVIDING FORA FIXED PERCENTAGE
TO BE CONTRIBUTED BY ALL EMPLOYEES AND THE CITY
IN THE PLAN; PROVIDING FOR SEVERABILITY, A
REPEALER AND AN EFFECTIVE DATE.
Whereas, the City Commission of the City of Miami Beach,. Florida, established a
defined contribution retirement plan for its unclassified employees as an optional plan to
the Unclassified Employees and Elected Officials Retirement System; and
Whereas, the benefits to the employee and the obligation of the City must be
established for the proper maintenance of the plan.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
Section 1 That Article 4.01 of the Plan be amended as follows:
ARTICLE 4. Contributions
4.01 Upon employment, or III the case of employees transferring
membership under section 3.02 above, upon transfer, the employee shall have the
irrevocable option to select the level of contribution which shall be withheld from his
compensation and deposited into his account. Such contributions may be within the range
ef-eBi'Hii!:mtio;Is--ffeffi a lTlinirr..u:n of ~i'/e percent (5%) of the employees annual earnings
to a maximum of fifteen percent (15%) of the employees annual earnings. Once an
employee selects the le';el of his contribution to the System, that le',el of contribution may
be amended annually on a date established by the Board of Trustees.contribute ten percent
(10%) of their earnings into their account.
Section 2 That Section 4.02 of the Plan be amended as follows:
4.02 The City shall contribute into the account of the employee an amount
equal to the employee contribution... to a maximum contribution of ten percent (10%) of the
employee's earnings.
Section 3 Repealer All ordinances or parts of ordinances in conflict herewith be and
the same are hereby repealed.
Section 4 Severability If any article, section, subsection, clause or provision of this
ordinance is held invalid, the remainder shall not be effected by such invalidity.
This Ordinance shall become effective on the 27th day
Section 5
Effective Date
of March , 1993.
Passed and Adopted this 1 7 t h day of
F RM APPROVED
LEGAL DEPT.
Attest:
~_AJ, ~.~~
City Clerk
1st reading 3/3/93
2nd reading 3/17/93
T<'9
Date
;J - 2. G -'1 ~~
CiTY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
CITY OF MIAMI BEACH
OFFICE OF THE CITY MANAGER
TELEPHONE: (_) .73-7010
FAX: (_) .73-7712
COMMISSION MEMORANDUM
137-93
March 3, 1993
To: Seymour Gelber, Mayor and
Memben of the City Commission
From: Roger M. Carl~ . n J .
City Manager ~
Subject:
Amendments to the 401A Defined Contribution Plan
Administrative Recommendation
The Admini~tration Recommends that the City Commission hold a public hearing
and approve the proposed amendments to the Defined Contribution Pension Plan
Ordinance on second re-tling
e..t"~vnund
When the Administration brouaht forth the Ordinance on the creation of a defined
contribution pension plan as an alternate to the defined benefit pension plan as amended
for unclassified employees, an option on the contribution levels that the employee could
elect to contribute wu included. In the process of implementing this program for our
employees, it has been determined that by allowina employees the option on the amount
of their contributions a 401K plan has been created.
Analysis
In the tax law chan&es in 1986 any local government that had a 401K type plan was
allowed to continue such a plan. However, DO additional 401K type plans were to be
allowed to be created by local governments. The 40lA plan is an alternative to the 401K
which is acceptable under the Tax Code but a set contribution must be mandated to the
employees in the plan. The amendments proposed will modify the existing Ordinance the
mandate a ten percent (10%) contribution by the employee which makes the plan a 401A
instea1 of a 4GIK.
Conclusion
The amendments proposed are necessary for the implementation of the Defined
Contribution Pension Plan under the Tax Code and approval of the amendments is
requested.
.12
AGEN~ :, &
I rEM --
DATE
3-/7-'1.3