O-2019-02ORDINANCE NO. 0
AN ORDINANCE OF MIAMI SHORES VILLAGE, FLORIDA
AMENDING THE VILLAGE'S GENERAL EMPLOYEES
PENSION PLAN; PROVIDING FOR IN- SERVICE
DISTRIBUTION OF BENEFITS; PROVIDING FOR
RETROACTIVE APPLICATION; PROVIDING FOR
CODIFICATION; PROVIDING FOR CONFLICT; PROVIDING
FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, Miami Shores Village ( "Village ") sponsors the Village's General
Employees Pension Plan ( "Plan "); and
WHEREAS, the Village has a duty to maintain the Plan in accordance with the
terms of applicable rules, federal /state laws and regulations for qualified governmental
plans; and
WHEREAS, the Village has been informed that certain federal tax law
qualification defects have occurred in the Plan as a result of the commencement of
retirement benefit payments to certain members who were re- employed by the Village
(or whose employment with the Village did not terminate); and
WHEREAS, the Village decided to correct these qualification defects retroactively
via the adoption of this Ordinance and filing an application with the IRS under its
Voluntary Correction Program, subject to the IRS approval of such correction, in order to
preserve the tax qualified status of the Plan; and
WHEREAS, under certain conditions a public employer may re- employ retired
employees while permitting in- service distributions; and
WHEREAS, the program of rehiring and continued distribution of retirement
benefits is in the best interests of the Village and the taxpayers of the Village; and
WHEREAS, the Village submitted its Voluntary Correction Program application to
the IRS on February 1, 2016; and
WHEREAS, in order to approve the retroactive correction of the above - referenced
qualification defects, the IRS requested certain revisions to the corrective Ordinance
originally proposed by the Village;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF MIAMI SHORES
VILLAGE, FLORIDA THAT:
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Words in underlined type are additions.
SECTION 1. The foregoing "WHEREAS" clause is hereby ratified as being true
and correct and incorporated herein by this reference.
SECTION 2. The Council of Miami Shores Village hereby amends the Village's
Code of Ordinances by adding a new Section 18 -64, entitled "In- service distribution" as
follows:
Sec. 18 -64 In- service distribution
(a) Notwithstanding any other provision of this Code of _Ordinances to the
contrary, a retired member who has terminated employment with thevillage
on or after normal retirement date may be rehired by the village. In such an
event, the rehired member shall continue to receive retirement benefits from
this plan, payments from the member's DROP account, and, if applicable,
continued earnings on the member's DROP account _ {in accordance with
section 18 -63). However, such member shall accrue no additional benefits
under the plan.
(b) A member shall become 100% vested in benefits provided by the _plan
upon attaining normal retirement age.
SECTION 3. It is the intention of the Council of Miami Shores Village that the
provisions of this Ordinance shall become and be made a part of the Code of Ordinances
of Miami Shores Village, Florida. The Sections of this ordinance may be re- numbered,
re- lettered and the word "Ordinance" may be changed to "Section ", "Article" or such other
word or phrase in order to accomplish such intention.
SECTION 4. If any clause, section, or other part or application of this Ordinance
shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such
unconstitutional or invalid part or application shall be considered as eliminated and so not
affecting the validity of the remaining portions or applications remaining in full force and
effect.
SECTION 6. All Ordinances or parts of Ordinances, Resolutions or parts of
Resolutions in conflict herewith be and the same are hereby repealed to the extent of
such conflict.
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Words in underlined type are additions.
SECTION 6. Upon satisfaction of each of the three following requirements set
forth below, the terms and provisions of this Ordinance shall become effective upon
second reading:
(a) the Village Council has received and has accepted a report establishing
the actuarial soundness of these amendments or a letter of opinion from
the Plan Actuary that the amendment has no actuarial impact; and
(b) the Ordinance and impact statement have been sent to the State of
Florida Division of Retirement.
SECTION 7. The provisions of this ordinance shall be retroactive to April 1,
2012. All payments or actions taken subsequent to the retroactive date are hereby
ratified as if this Ordinance had been in full force in effect.
Passed on first reading this , day of ARM ber 2018.
Passed and adopted on second reading this �� day of ( , 201®.
ATTEST:
Ysabeiy RodrigcWz, MPA CMC
APPROVED AS TO FORM:
Richard Sarafan
Village Attorney
�J
Mac Aiam Glinn, Mayor
FINAL VOTES AT ADOPTION
Council Member Steven Zelkowitz
Yes
Council Member Jonathan Meltz
Yes
Council Member Alice Burch
Yes
Vice -Mayor Sean Brady
Yes
Mayor M acAdam Glinn
Yes
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Words in underlined type are additions.