92-2811 Ordinance
ORDINANCE NO.
92-2811
AN ORDINANCE OF THE CITY OF MIAMI BEACH, FLORIDA,
AMENDING ORDINANCE NO. 88-2603 WHICH CREATED THE
RETIREMENT SYSTEM FOR UNCLASSIFIED EMPLOYEES AND ELECTED
OFFICIALS, BY PROSPECTIVELY REDUCING THE BENEFIT ACCRUAL
RATE FROM FOUR PERCENT (4%) TO THREE PERCENT (3%) AND THE
MAXIMUM ALLOWANCE FROM NINETY PERCENT (90%) TO EIGHTY
PERCENT (80%) FOR CURRENT EMPLOYEES, PROVIDING FOR
SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City Commission adopted Ordinance No. 88-2603
creating the Retirement System for Unclassified Employees and
Elected Officials and therein specificized a benefit accrual rate
for Members of the System to accrue their retirement benefit, and
WHEREAS, The City Commission is desirous of reducing the
prospective benefit accrual rate for current members from four
percent (4%) to three percent (3%) and the maximum allowance from
ninety percent (90%) to eighty percent (80%), and
WHEREAS, no vested benefit would be altered by virtue of this
amendment,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
Section 1.
That Article 5 of Ordinance 88-2603 be amended
by adding Subsection 5.01 (d) as follows:
i9.l Notwithstanding subsections (a). (b) and (c) of this
Section 5.01. the normal service retirement allowance for
all creditable service earned on and after October 18.
1992 shall be computed at the rate of three percent (3%l
per year of creditable service for all Members who were
Members on or before October 18. 1992. provided that such
allowance shall not exceed eighty percent (80%) of his
final averaqe monthly earninqs for all Members with
twenty or less creditable years of service on or before
October 18, 1992: and provided further. that the normal
service retirement allowance durinq the Election Period
for any Employee-Member who elects earlY retirement
pursuant to Ordinance No.
92-2810
shall continue at
four percent (4%). For Members with more than twenty
years of creditable service on or before October 18.
1992. the allowance shall not exceed ninety percent (90%l
of his final averaqe monthlY earninqs.
section 2.
REPEALER
All Ordinances or parts of Ordinances in conflict herewith be
and the same are repealed as of the effective date, as defined in
section 4 below.
section 3.
SEVERABILITY
If any section, subsection, clause or provision of this
Ordinance is held invalid, the remainder shall not be effected by
such invalidity.
Section 4.
EFFECTIVE DATE
This Ordinance shall become effective on the
18th
day of
October
, 1992.
f"~Lt...~ C~
ci ty Clerk IWU.J~~
ORM APPROVED
LEGAL DEPT.
Passed and Adopted this 8th
Attest:
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By
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1st reading 9/16/92
2nd reading 10/8/92
Date
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
CITY OF MIAMI BEACH
COMMISSION MEMORANDUM
TEL.EPHONE: (305) 673-7010
FAX: (305) 673-7782
NoSlg- C{z ~~
OFFICE OF THE CITY MANAGER
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE: September 16, 1992
FROM:
Roger M,
City Manager
SUBJECT:
Ordinance prospectively changing the accrual rate in the Unclassified Employees
and Elected Officials Pension System (non-bargainable unit)
Administrative Recommendation:
The Administration recommends that the City Commission adopt this Ordinance for
the Unclassified Employees and Elected Officials Pension System (non-bargainable unit)
to be effective upon the completion of the collective bargaining process for the rest of the
bargaining units.
Back~round:
This Ordinance was prepared in accordance with the direction of the City Commission
after reviewing the report of the Pension Systems Review Committee. This Ordinance which
will prospectively reduce the benefit accrual rate from 4% to 3% for unclassified employees
will become effective if negotiations with our four bargaining units result in like Ordinances
being approved for the General Employees and the Fire and Police Pension Systems. The
effect of this change will not affect any benefit of the current unclassified employees have
accumulated. However, future service time accumulations will be reduced.
Analysis:
The effect of this Ordinance will be a reduction in the City's cost of the funding of
the Unclassified Employees and Elected Officials Retirement System by approximately ten
percent (10%) of covered payroll for current employees in the System. This cost reduction
will produce a savings of approximately $650,000 annually as it both reduces the benefit accrual
rate and reduces the maximum benefit from ninety percent (90%) to eighty percent (80%)
for future seIVice. like reductions in the City's cost of funding will be achieved with the passage
of similar ordinances in the other two pension systems sponsored by the City.
'7'7
AG~~~~--R - 3--3
DATE
106 ,92
Conclusion:
The primary purpose of this is to fulfill a major commitment to the to the process
of returning the City of Miami Beach to fiscal health as well as to codify a major cost savings
in its Proposed F 92/93 Budget. This ordinance will become effective if similar ordinances
amending the City's two other pension systems are adopted. Should this ordinance become
effective prior to that date, members will have a lesser benefit than other employees which
would be unfair.
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