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89-2675 Ordinance ORDINANCE NO. 89-2675 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 1901, WHICH CREATED A RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE CITY OF MIAMI BEACH; AMENDING SECTION 2.09 OF ARTICLE 2 ENTITLED "DEFINITIONS" BY PROVIDING THAT "FINAL AVERAGE MONTHLY EARNINGS" FOR A MEMBER RETIRING ON OR AFTER OCTOBER 1, 1990 SHALL MEAN ONE-TWELFTH OF SAID MEMBER'S AVERAGE ANNUAL EARNINGS DURING THE TWO HIGHEST PAID YEARS OF HIS CREDITABLE SERVICE; AMENDING ARTICLE 5 ENTITLED "BENEFITS" BY AMENDING SECTION 5.01 ENTITLED "NORMAL SERVICE RETIREMENT ALLOWANCE" PROVIDING THAT ANY PERSON WHO IS A MEMBER ON OR AFTER OCTOBER 1, 1990, SHALL BE ELIGIBLE TO RETIRE UPON COMPLETION OF FIVE (5) YEARS OF CREDITABLE SERVICE AND ATTAINMENT OF FIFTY (50) YEARS OF AGE, PROVIDING A METHOD OF COMPUTING THE RETIREMENT ALLOWANCE FOR SAID MEMBERS, PROVIDING THAT MEMBERS WHO RETIRE BETWEEN OCTOBER 1, 1989 AND SEPTEMBER 30, 1990 SHALL RETIRE AT THE SAME AGE AND WITH THE SAME RETIREMENT ALLOWANCE AS PERSONS WHO BECAME MEMBERS OF THE SYSTEM ON OR AFTER NOVEMBER 1, 1976, BUT THAT ON AND AFTER OCTOBER 1, 1990 SAID RETlRANTS SHALL RECEIVE THE SAME ALLOWANCE AS MEMBERS RETIRING ON OR AFTER OCTOBER 1, 1990, AND BY AMENDING SECTION 5.06 ENTITLED "DEATH BENEFITS AFTER RETIREMENT" BY PROVIDING THAT CHILDREN OF RETlRANTS WHO ARE NOT SURVIVED BY A SPOUSE MAY BE ELIGIBLE TO RECEIVE A PENSION UNTIL THEY MARRY, DIE OR ATTAIN THE AGE OF EIGHTEEN (18) YEARS, OR TWENTY-TWO (22) YEARS IF THEY ARE FULL-TIME STUDENTS; PROVIDED, HOWEVER, THAT SUCH CHILDREN WHO ARE MENTALLY OR PHYSICALLY HANDICAPPED MAY CONTINUE TO REC~IVE A PENSIO~ UNTIL THEY RECOVER FROM SAID HANDICAPS, AND PROVIDING THAT DEPENDENT PA~ENTS OF RETlRANTS WHO HAVE NO SURVIVING SPOUSE OR ELIGIBLE CHILDREN MAY RECEIVE A PENSION; AMENDING SECTION 6.02 ENTITLED "CONTRIBUTIONS BY MEMBER" OF ARTICLE 6 ENTITLED "FINANCING" BY PROVIDING THAT ON OR AFTER OCTOBER 1, 1990 ALL MEMBERS OF THE SYSTEM SHALL CONTRIBUTE EIGHT PER CENTUM (8%) OF THEIR EARNINGS THROUGHOUT THEIR SERVICE AS EMPLOYEES; REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI ~, FLORIDA: Section 1. That Section 2.09 of Article 2 entitled "Definitions" of City of Miami Beach Ordinance No. 1901 be amended to read as follows: Article 2. Definitions * * * * * 2.09 "Final Average Monthly Earnings" means, in the case of a person who became a Member of the System on or 1 after November 1, 1976, one-twelfth of the average annual earnings of the Member during the three highest paid years of his creditable service; in the case of a person who became a Member prior to November 1, 1976 or who retires on or after October 1. 1990. this term means one- twelfth of his average annual earnings during the two highest paid years of his creditable service. (Ord. No. 76-2075, ~1.) section 2. That Sections 5.01 entitled "Normal Service Retirement Allowance" and section 5.06 entitled "Death Benefits" of Article 5 entitled "Benefits" of City of Miami Beach Ordinance No. 1901 be amended to read as follows: Article 5. Benefits 5.01 Normal Service Retirement Allowance (a) The normal retirement date of a person who became a Member on or after November 1, 1976, shall be the first day of the calendar month coincident with or next following the 62nd anniversary of his birth or the date as of which he completes five years of creditable service, whichever is later. The normal retirement date of a person who became a member prior to November 1, 1976, shall be the first day of the calendar month coincident with or next following the date as of which he first meets anyone of the following combinations of attained age and years of creditable service: ATTAINED . YEARS OF CREDITABLE . AGE . SERVICE . 55 . 20 . 56 . 17 . 57 14 58 . 11 . 59 . 8 . 60 . 5 . Any Member may retire on a normal service retirement allowance upon the termination of his employment on or after his normal retirement date. 2 (Remainder of paragraph 5.01 (a) pertaining to mandatory retirement deleted by Ordinance No. 77-2107, passed and adopted November 16, 1977.) (b) Notwithstanding the provisions of Paragraph (a) of this Section 5.01, eligibility for retirement on a normal service retirement allowance of a lifeguard in the Beach Patrol and a policeman or fireman who is a Member of this System, not being a member of the City Pension Fund for Policemen and Firemen, shall be governed by this Paragraph (b). (1) The normal retirement date of a lifeguard in the Beach Patrol shall be the first day of the calendar month coincident with or next following the 50th anniversary of his birth or the date as of which he completes twenty years of creditable service, whichever is later. (2) The normal retirement date of a policeman or fireman who was a Member of the System on October 31, 1976, not being a member of the City Pension Fund for Policemen and Firemen, shall be the first day of the calendar month coincident with or next following the 50th anniversary of his birth or the date as of which he completes twenty years of creditable service, whichever is later. (3) Any such Member shall be retired automatically no later than the first day of the calendar month following the attainment of: Age 55, in the case of Lifeguards I and Lifeguards II; Age 60, in the case of Lifeguard Lieutenants and Lifeguard Captains; and Age 65, in the case of Policemen and Firemen. (Ord. No. 76-2075, ~1.) (c) The normal service retirement allowance payable upon the retirement of a member on or after his 3 normal retirement date shall be as follows: (1) In the case of a person who became a Member of the System on or after November 1, 1976, two and one-quarter per centum (2-1/4%) of his final average monthly earnings multiplied by the number of his years of creditable service not in excess of twenty-five (25) plus two per centum (2%) of such final average monthly earnings multiplied by the number of his years of creditable service in excess of twenty-five (25), provided that such allowance shall not exceed eighty per centum (80%) of his final average monthly earnings; (2) In the case of a person who became a Member of the System prior to November 1, 1976, if such retirement occurs on or after July 1, 1969, two and three-quarters per centum (2-3/4%) of his final average monthly earnings multiplied by the number of his years of creditable service not in excess of twenty-five (25) plus two per centum (2%) of such final average monthly earnings multiplied by number of his years of creditable service in excess of twenty-five (25), provided that such allowance shall not exceed eighty per centum (80%) of his final average monthly earnings. (Ord. No. 76-2075, ~1.) (d) If the Accumulated Employee contributions credited to a person who became a Member prior to November 1, 1976, are less than the amount which would have been credited to him if he had contributed at the rate of six per centum (6%) of his earnings from the time he became a Member under the predecessor system governed by the provisions of Ordinance No. 845, the amount computed as a normal service retirement allowance in accordance with Paragraph (c) of this section 5.01 shall be reduced by an amount which is the actuarial equivalent of the lump sum amount required to be added to his Accumulated Employee Contributions to bring such contributions to the level which he would have obtained 4 by contributions at the rate of six per centum (6%) of his earnings from the date of his membership under the predecessor system governed by Ordinance No. 845. (Ord. No. 76-2075, ~1.) (e) Notwi thstandinq the above oaraqraohs. any person who is a member on or after October 1. 1990. shall be eliqible to retire upon completion of five (5) years of creditable service and upon the attainment of the fiftieth anniversarv of his birth. For persons eliqible to retire under this paraqraph. the retirement allowance shall be computed as follows: final averaqe monthly earninqs multiplied by three per centum (3%) per year of creditable service for the first fifteen (15) of such years and four per centum (4%) per year of creditable service for each such year in excess of fifteen (15). to a maximum of 90% of such final average monthly earninqs. For those members who retire between October 1. 1989 and September 30. 1990. the age of retirement and retirement allowance shall be as set forth in paraqraph (a). and paragraphs (c) (1) and (2) above until October 1. 1990; on or after October 1. 1990 the retirement allowance shall be as set forth above in this paragraph. * * * * * 5.06 Death Benefits after Retirement (a) Upon receipt of evidence, satisfactory to the Board, of the death of a Retirant, a monthly pension shall be payable to the surviving spouse of the deceased Retirant, provided that the spouse had been married to the Retirant on the date of his retirement or termination of service, whichever was first, and for at least one (1) year prior to such date; and further provided, that if the Retirant had elected an option in accordance with Section 5.07 which was in effect at the time of his death, monthly benefits shall be continued after his death, in lieu of benefits under this Section 5.06, in accordance with the option. (b) The monthly pension payable to the surviving spouse of a deceased Retirant pursuant to the 5 foregoing paragraph of this Section 5.06 shall be equal to fifty per centum (50%) of the retirement allowance which would have been payable to the deceased Retirant if he had been alive at the time of the monthly payment; provided that, if the surviving spouse is more than fifteen (15) years younger than the deceased Retirant, such monthly pension shall be reduced to an amount which is the actuarial equivalent of such pension for a spouse exactly fifteen (15) years younger than the deceased Retirant. (c) If any such deceased Retirant is not survived by a spouse entitled to a pension in accordance with the foregoing paragraphs of this section 5.06 or if the death of such a spouse occurs after pension payments have commenced in accordance with the foregoing paragraph, the pension which would otherwise have been payable to a surviving spouse eligible therefor and not more than fifteen (15) years younger than the deceased Retirant shall be payable to the dependent child or children of the said deceased Retirant, if any, divided in such manner as the Board in its discretion shall determine, to continue until every such child 1) marries or dies, or 2.1 attains eiqhteen (18) twenty one (21) years of age or twenty-two (22) years of aqe in the case of a child who is a full-time student in hiqh school or colleqe; provided that in the case of a physically or mentally handicapped child. the pension shall continue until the child recovers from the handicap. Notwithstandinq the above. only children who were dependent beneficiaries of the Retirant on the date of his retirement or termination of service, whichever is first, shall be eligible for a pension under this paragraph. (d) If there are no pension benefits payable to a survivinq spouse. child or children pursuant to paraqraphs (a) or (c) above. then the aforementioned pension shall be paid to the dependent parent. if any. of the deceased member. If both parents are dependent. such benefit shall be shared eauallv between them. 19l +at Anything in this section 5.06 to the contrary nothwithstanding in the event that an optional benefit had been elected by a Retirant in accordance with section 5.07 and such election is in effect at the time of his death, monthly benefits, if any, shall be payable after his death to the person designated as the contingent annuitant in accordance with the optional 6 election and no benefits shall be payable as a result of the death of the Retirant under this section 5.06. section 3. That section 6.02 entitled "contributions by Members" of Article 6 entitled "Financing" of City of Miami Beach Ordinance No. 1901 be amended to read as follows: Article 6. Financinq * * * * * 6.02 contributions by Members (a) Each Member whose employment with the City commences on or after November 1, 1976, shall contribute to the System five per centum (5%) of his earnings throughout his service as an Employee. (b) Each Member whose employment with the City commenced prior to November 1, 1976, shall contribute to the system six per centum (6%) of his earnings throughout his service as an Employee; provided that any such Member who was contributing five per centum (5%) of his earnings to the predecessor system as of November 17, 1971 ~ effective date of this Ordinance and thereafter to October 31, 1976, may continue to contribute at such rate to this System during his continuous service as an Employee; and further provided that an election to contribute at the higher rate by such a Member shall be irrevocable. (Ord. No. 76-2075, ~1.) (c) Notwithstanding paraqraphs (a) and (b) above. any person who is a Member on October 1. 1990. shall contribute to the System eiqht per centum (8%) of his earninqs throuqhout his service as an Employee after said date. section 4. ReDealer. That all Ordinances or parts of Ordinances in conflict therewith be and the same are hereby repealed. 7 Section s. Severability. If any section, subsection, clause or provlslon of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. section 6. Effective Date. This Ordinance shall take effect on the 16th day of 1989. December PASSED and ADOPTED this 6th 1989. day of December .0/ LAJ/L-- ~ VICE - MAYOR ATTEST: 1st reading 11/15/89 2nd reading 12/6/89 FORM APPROVED LEGAL DEPT. Byt?,&~~ I{/ J/'t'f' Date ~/J . ;-~ /~ ,~ -'C,t,iUJ ~ CITY CLERK AMW/SWS:vm 11/6/89 8 -. ~ ~..'iltUiHd- ~ead FLORIDA 33139 "V AC A TlONLAND U. S. A. .. OFFICE OF THE CITY MANAGER ROB W. PARKINS CITY MANAGER CITY HALL 1700 CONVENTION CENTER DRIVE TELEPHONE: 673-7010 FROM: COMMISSION MEMORANDUM NO. &/7 ~~0 DATE: November 15, 1989 TO: SUBJECT: CHANGES TO THE GENERAL EMPLOYEES PENSION SYSTEM FROM NEGOTIATED LABOR SETTLEMENTS This Oruinance which is the result of negotiations with the two unions who represent General Employees, Benevolent and AFSCME. This pension settlement clos..ely parallels the settlement previous- ly reached with the Police and Fire Unions. This settlement will go into effect on October 1, 1990, and consolidate the two separate segments of the System. This settlement will allow employees to retire at age 50 with a benefit equivalent to three percent for the first fifteen years of service and four percent for every additional year to a maximum of ninety percent of the highest two year average of compensation. Employees will contribute eight percent of pay to the System. This revised pension plan will not be in force until next fiscal year at which time this change will cost the City approximately $350,000. Administration Recommendation: The Administration recommends that the City Commission adopt this Ordinance on first reading and schedule the public hearing and second reading on December 6, 1989. RWP:RJN:sw Attachment ~ c _.)U AGENDA ITEM R-3- C; 10-0-gCl DATE