R-1091-05 RESOLUTION No: 1091-05
A RESOLUTION OF THE MIAMI SHORES VILLAGE COUNCIL
ESTABLISHING THE EXCESS BENEFIT PLAN TO ALLOW ELIGIBLE
MEMBERS OF THE MIAMI SHORES VILLAGE GENERAL
EMPLOYEES' RETIREMENT SYSTEM (GERP) TO CONTINUE TO
RECEIVE THOSE RETIREMENT BENEFITS TO WHICH THEY ARE
ENTITLED PURSUANT TO THE CODE OF MIAMI SHORES
VILLAGE, FLORIDA AS AMENDED WHICH BENEFITS WOULD
OTHERWISE BE LIMITED BY THE PROVISIONS CONTAINED IN
SECTION 415 OF THE INTERNAL REVENUE CODE; PROVIDING
FOR PAYMENT OF SAID BENEFITS; FURTHER DIRECTING THE
VILLAGE MANAGER OR DESIGNEE TO ADMINISTER SAID PLAN;
AND,PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, a defined level of benefits are available to eligible members of the Miami
Shores General Employees Retirement Plan pursuant to Chapter 18 of the Miami Shores Village
Code of Ordinances as amended(the"Code"); and,
WHEREAS, Section 415 of the Internal Revenue Code (IRC) limits the pension benefits
an organization may pay an eligible employee; and,
WHEREAS, the Village Council, pursuant to applicable IRC provisions, wishes to
establish a qualified governmental excess benefit plan to continue to cover the difference between
the allowable pension to be paid and the amount of the defined benefit in order to ensure that the
eligible members of said plan are not diminished by the changes in the IRC.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE VILLAGE COUNCIL
OF MIAMI SHORES VILLAGE,FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are
hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section.
Section 2. An Excess Benefit Plan is hereby established to allow eligible members
of the General Employees Retirement Plan to continue to receive those retirement benefits to
which they are entitled pursuant to the Code of Ordinances of Miami Shores Village, Florida as
amended, which benefits would otherwise be limited by the provisions contained in Section 415
of the Internal Revenue Code and shall be implemented as follows:
A) Payment of the Miami Shores Village contribution of excess retirement benefits
for eligible members of the General Employees plan above the limits permitted
by the Internal Revenue Code shall be:
a. Funded from the Village General Fund;
b. Paid annually concurrent with the Village's annual contribution to normal
pension costs which shall cause the Village to realize a reduction in normal
pension costs in the same amount; and,
c. Be deposited into an account established for the General Employees
Retirement plan to receive the Village's excess retirement benefit
contributions, which accounts shall be separate and apart from the accounts
established to receive the Village's normal pension contribution for the Plan.
B) The actuaries for the General Employees Retirement Plan's Board of Trustees
shall calculate the amounts necessary to fund the defined benefit plans giving the
effect to the reductions caused by the implementation of Section 415 of the
Internal Revenue Code.
C) The excess benefits shall be paid to each eligible member of the General
Employees Retirement plan on a monthly basis in an amount equal to the
differences between the allowable pension benefit to be paid under the Internal
Revenue Code and the amount of the defined benefit granted to eligible members
of the General Employees Retirement Plan pursuant to the provides set forth in
the Code.
Section 3. The Board of Trustees for the General Employee Retirement Plan are
hereby appointed as the respective committee members to administer the Excess Benefit Plan for
the sole purposes of receiving the Village's excess benefit contribution and disbursing said
contributions to eligible Plan members.
Section 4. This Resolution shall become effective immediately upon it adoption.
PASSED and ADOPTED this 1st day of March, 2005.
Jim McCoy
Mayor
ATTEST:
Owe_
Barbara A. Estep, CMC
Village Clerk
Approved as to form:
Richard Sarafan
Village Attorney