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05-10-1988 Regular MeetingM I AM I SHORES VILLAGE PENSICN BOARD MEETING The May 10, 1988 meeting of the Miami Shores Pension Board was called to order by Mayor Spero Canton at 8:05 a.m. The following were in attendance: Board Members: Also Present: Absent: Mayor Spero Canton Elly F. Johnson Sargeant Jack Ulmer Dr. Robert S. Butler Ms. Patricia Varney Ms. Ann Heid and Mr. Scott Givens of NCNB Nat'l Bank Mr. David Newman and Ms. Karen Cole of Kidder Peabody Mr. Steve Palrnqulst of Kruse, O'Connor & Ling Mr. Angelo Santiago of Eickhoff & Pieper Ms. Kathy Esteves, PBA Representative Mr. William Fann, Village Attorney Ms. Gall Macdonald, Pian Administrator Mr. William Heffernan Mr. William Walker 1. Presentation of the Annual Actuarial Evaluation Mr. Steve Palmquist of Kruse, O'Connor & Ling presented to the Board the annual actuarial evaluation for the period ending January 1, 1988. Mr. Palmquist reported that the covered payroll has Increased between 15% and 20% from last year.. Mr. Paimquist stated that the overall trend of the Pension Plan looks good. Ir, comprison to other plans of the same size, Mr. Palmquist advised that the Miami Shores Village Pension Plan compares favorably with most other plans and is possibly above average with its Investment performance. 2. Presentation of the Quarterly Investment Review Ms. the the Karen Cole of Kidder Peabody reported that as of 3/31/88 Plan has approxivately 23% in cash. The overall return on Plan for this quarter is 5.6% 3 Quzrterly Investment Review ly Eickhoff & Pieper Mr. Angelo Santiago of Eickhoff Kidder- Peabody presentation. approximately 40% in cash in the the Plan. & Pieper concurred with the Mr. Santiago reported eauity portfolio portion of 4. Quarterly Review by NCNB Mr. Scott Givens also concurred with the Kidder Peabody report and reminded the Board what an excellent Investment real estate Is. Dr. Butler suggested that Kidder Peabody report back to the Board as to whether or not there Is a limitation of the percentage of investment that the Board can make to its real estate portion of the Fund. Dr. Butler requested this report by the next Pension Board meeting to be held on June 7, 1988. • 5. Discussion - Age Limitations 21/55 Mr. Johnson made a motion to proceed with the changes in the Pension Plan as proposed; i.e., the 21 year age limitation would be deleted and 55 year age limitation would be retained effective from the date of the enabling legislation. Dr. Butler seconded the motion and the motion passed unanimously. 6. Officer Steven Sadowski's request for Vesting Mr. Johnson made a motion to approve the vesting request of Officer Steven Sadowski. Sargeant Ulmer seconded the motion and the motion passed unanimously. 7. Officer Steven Sadowski's request for early retirement benefits Mr. Johnson made a motion to deny Officer Steven Sadowski's re- quest for early retirement benefits based on the May 5, 1988 opinion of Carson & Linn (copy attached). Mrs. Varney seconded the motion and the motion passed unanimously. Ms. Esteves, attorney for the PBA, asked for clarification of Officer Sadowski's request for early retirement benefits. Ms. Macdonald explained In detail the retirement procedures according to the Pension Plan. Ms. Macdonald further explained that a final benefit certification will be provided as soon as possible for Officer Sadowski. 8. Final Approval - Proposed Pension Plan Amendment 111 Sargeant Ulmer made a motion to accept the Proposed Amendments to the Pension Plan as written with the substitution of Draft B to Section 18-49 (copy attached). Mr. Johnson seconded the motion and the motion passed unanimously. • • Mr. Johnson made a motion that the Pension Board recommend ap- proval of the changes to the Village Council as soon as possible. The motion was seconded by Sargeant Ulmer and the motion passed unanimously. 9. Ap royal for payment of the Kruse, O'Connor & Ling invoice of May 2, 1988 Mr. Johnson made a motion to approve the invoice of Kruse,O'Connor and Ling. Sargeant Ulmer seconded the motion and the motion passed unani- mously. 10. Approval of payment of the Miami Review Invoice of 4/11/88 Dr. Butler made a motion to approve the payment of the Miami Review Invoice. Sargeant Ulmer seconded the motion and the motion passed unanimously. 11. Approval of payment of the Eickhoff & Pieper quarterly management fees. Mr. Johnson made a motion to approve the Eickhoff and Pieper management fees. Sargeant Ulmer seconded the motion. The motion passed unani- mously. 12. Approval of the April 19, 1988 Pension Board Minutes. Mr. Johnson made a motion to approve the minutes of the 4/19/88 Pension Board meeting. Dr. Butler seconded the motion. The motion passed unanimously. 13. Adjournment Sargeant Ulmer made a motion to adjourn and the motion was seconded by Mr. Johnson. The motion passed unanimously and the meeting adjourned at 10:50 a.m. Elly hnson, Secretary LEONARD A. CARSON JAMES W. LINN JOHN D.C. NEWTON, II MICHAEL WM. MORELL LUCILLE E. TURNER CARSON & LINN, P. A. LAWYERS MAHAN STATION 1711 - D MAHAN DRIVE TALLAHASSEE, FLORIDA 32308 (904) 878-2037 TELECOPIER (904) 87.7-1000 May 5, 1988 Elly F. Johnson, Village Manager Miami Shores Village 10050 N.E. Second Avenue Miami Shores, FL 33138 JAMES C. ADKINS OF COUNSEL Re: Miami Shores Pension Plan — Early Retirement Request of Steven G. Sadowski Dear Elly: You have requested our opinion concerning Steven G. Sadowski's request for early retirement under the Miami Shores Pension Plan. As we understand the facts, Mr. Sadowski was hired as a Miami Shores Village police officer in November 1976, at the age of nineteen. He has been continuously employed as a Village police officer for eleven years and six months. Mr. Sadowski was born on November 8, 1957. On April 21, 1988 we wrote you a letter expressing our opinion that, based on his years of Village service, Mr. Sadowski has a vested interest in accrued benefits under the Miami Shores Pension Plan. We understand that Mr. Sadowski has expressed his intention to terminate his employment with the Village effective May 12, 1988, and to seek early retirement benefits under the Plan upon his termination. He will be thirty years old at that time. We do not know the basis for Mr. Sadowski's request for early retirement. Our analysis of Mr. Sadowski's entitlement to retirement benefits under the Plan follows. Section 18-49, Miami Shores Village Code, states: Any police officer and fireman upon withdrawal from service upon or after the completion of twenty-five (25) years of creditable service. . . shall become entitled to receive a service retirement annuity in an amount provided under subsection (c) of this section. This provision does not appear to apply to Mr. Sadowski, since he will not have completed twenty-five years of creditable service as of his termination date. Section 18-49(b), Miami Shores Village Code, states: Any member who shall have completed at least fifteen (15) years of creditable service may withdraw from service at the age of fifty-five (55) or over and shall thereupon become entitled to receive a service retirement annuity which is actuarily reduces to reflect receipt of his annuity prior to the age the member would have completed twenty-five (25) years of creditable service ... . Elly F. Johnson, Village Manager Miami Shores Village May 5, 1988 Page Two This provision would also appear not to apply to Mr. Sadowski, since he will not have completed fifteen years of creditable service or attained the age of fifty-five prior to his termination date. Section 18-55, Miami Shores Village Code, states in pertinent part: Members shall, by virtue of the payment of the contributions required to be paid to this plan, receive a vested interested [sic] in the accrued benefits earned by such members upon completion of ten (10) years of creditable service. If separated from service after ten (10) years of creditable service the member shall be entitled to a service retirement annuity after attainment of normal retirement age. If upon separation of service the member has completed at least fifteen (15) years of creditable service he shall be eligible to elect a service retirement annuity as provided under Section 18-49(b) after attainment of age fifty-five (55) in lieu of receipt at normal retirement age... . (emphasis supplied). It would appear that Mr. Sadowski's eligibility for retirement benefits is governed by the above -underlined language of Section 18-55. Accordingly, we are of the opinion that Mr. Sadowski, if his Village employment actually terminates on May 12, 1988, will be entitled to a service retirement annuity after he attains normal retirement age. Unfortunately, the Plan does not establish a specific age for normal retirement for police officers. Section 18-49(a) provides that a police officer is entitled to receive a service retirement annuity upon or after the completion of twenty-five (25) years of creditable service. Section 18-49(b) states that a police officer who has completed at least fifteen (15) years of creditable service shall become entitled to a service retirement annuity without actuarial reduction as of the date on which the member would have completed twenty-five (25) years of creditable service assuming continued full-time service with the Village. The Plan does not specify when a pollee officer who has completed less than fifteen (15) years of creditable service becomes entitled to a service retirement annuity. In the absence of a specific provision in the Plan, the establishment of a normal retirement age for police officers like Mr. Sadowski, who terminate their employment with the Village after completing ten (10) years but before completing fifteen (15) years of creditable service should be determined, as a matter of policy, by the Pension Board. It would appear that the Pension Board may select any reasonable age as the normal retirement age for police officers in these circumstances, between the following ages: 1. The age the member would have completed twenty-five (25) years of creditable service, assuming continued full-time service with the Village; and 2. Age 62 (the normal retirement age for general employees). CARSON & LINN, P. A. LAWYERS Y Elly F. Johnson, Village Manager Miami Shores Village May 5, 1988 Page Three CONCLUSION In our opinion, Mr. Sadowski is not entitled to receive early retirement benefits under the Miami Shores Pension Plan. Mr. Sadowski will be entitled to receive a service retirement annuity after reaching normal retirement age. Because the Plan does not provide a specific normal retirement age for police officers who leave the employ of the Village after completing ten (10) years but before completing fifteen (15) years or creditable service, the normal retirement age for such participants should be determined as a matter of policy by the Pension Board. Please let us know if you have further questions concerning this matter. With best personal regards, I am Sincerely, CARSON Sc LINN, P.A. • JWL/ksm W. Linn cc: Gail Macdonald, Finance Director Kathryn Knieriem Estevez, Staff Attorney Dade County Police Benevolent Association, Inc. CARSON &r LINN, P. A. LAWYERS 3/13/ksm • DRAFT B Section 7. Section 18-49, Miami Shores Village Code, "Service Retirement Allowance", is hereby amended to reas as follows: Sec. 18-49. Service retirement allowance. (a) Any police officer and fireman upon withdrawal from service upon or after the completion of twenty-five (25) years of creditable service, and any general employee upon withdrawal from service upon or after the attainment of age sixty-two (62), shall become entitled to receive a service retirement annuity in an amount provided under subsection (c) of this section. If an employee of the village has been classified as a police officer er fireman for part of his employment with the village and a general employee for another part of his employment with the village, his age for entitlement to receive a service retirement annuity will be adjusted upon his date of change in classification in the following manner: (1) If the employee was classified immediately prior to the current date of change as a police officer er fireman and changes classification to a general employee, his adjusted age of entitlement to receive a service retirement annuity will be ((1) + (2) + (3)) : (4), where: (1) is the age of the member as of the date on which such member would have completed twenty-five (25) years of creditable service assuming continued full-time service with the village multiplied by years and fractions of creditable service accrued to date of current change of classification while classified as a police officer er fireman; -1- (2) is sixty-two (62) multiplied by years and fractions of creditable service accrued to date of current change of classification while classified as a general employee; (3) is sixty-two (62) multiplied by the number of years and fractions from the date of change until the date the employee would attain the age of sixty-two (62); and (4) is the number of years and fractions of creditable service the employee has accrued at his current date plus the number of years and fractions from the date of current change until the date the employee will attain the age of sixty-two (62). (2) If the employee was classified immediately prior to the current date of change as a general employee and changes classification to a police officer er fireman, his adjusted age or entitlement to receive a service retirement annuity will be ((1) + (2) + (3)) : (4), where: (1) is sixty-two (62) multiplied by years and fractions of creditable service accrued to date of current change of classification while classified as a general employee; (2) is the age of the member as of the date such member would have completed twenty-five (25) years of creditable service assuming continued full-time service with the village multiplied by years and fractions of creditable service accrued to date of current change of classification while classified as a police officer er fireman; (3) is the age of the member as of the date such member would have completed twenty-five (25) years of creditable service assuming continued fill -time service with the village multiplied by the number of -2- years and fractions from the date of current change until the date the employee would have completed twenty-five (25) years of creditable service assuming continued full-time service with the village; and (4) is the number of years and fractions of creditable service the employee has accrued at his current date of change plus the number of years and fractions from the date of current change until the date the employee would have completed twenty-five (25) years of creditable service assuming continued full-time service with the village. (b) Any member who shall have completed at least fifteen (15) years of creditable service may withdraw from service at the age of fifty-five (55) or over and shall thereupon become entitled to receive a service retirement annuity equal to the actuarial value of his annuity at age sixty-five (65), or at his option, such member shall become entitled to the service retirement annuity, the payment of which, however, is to be deferred until his attainment of age sixty-five (65). (c) (1) The amount of monthly retirement annuity to which a general employee member shall be entitled shall be equal to two (2) percent of the monthly average final compensation multiplied by the number of years of creditable service, not to exceed thirty (30) years of service. (2) The amount of monthly retirement annuity to which a police officer of fireman who retires prior to July 1, 1989 shall be entitled shall be equal to two (2) percent of the monthly average final compensation multiplied by the number of years of creditable service up to twenty-five (25) years, plus two and one-half (2 1/2) percent of the monthly average final compensation multiplied by the number of years of creditable service over twenty-five (25) years, but not to exceed a total of thirty (30) years of creditable service. -3- (3) The amount of monthly retirement annuity to which a police officer who retires on or after July 1, 1989 shall be entitled shall be equal to two and four -tenths percent (2.4%) of the monthly average final compensation multiplied by the number of creditable years service up to twenty-five (25) years, plus two and one-half percent (2.5%) of the monthly average final compensation multiplied by the number of years of creditable service over twenty-five (25) years, but not to exceed a total of thirty (30) years of creditable service. (d) The first monthly installment shall be payable on the first day of the month following the retirement of the member, and payments thereafter shall be due and payable on the first day of each month during the lifetime of the annuitant. (e) (1) Any general employee who has thirty (30) years of membership Ves service and who is permitted to remain in the service of the village after his normal retirement date at age sixty-two (62) or an adjusted retirement age (as defined in subsection (a) of this section) for an employee who has been a police officer er fireman and changed to a general employee, may remain in service for periods of one (1) year each. No contributions are to be made by such general employee and no further annuity credits shall accrue to him and his annuity shall be fixed as of age sixty-two (62) or his adjusted retirement age as defined in subsection (a) of this section. A general employee who has to his credit less than thirty (30) years of membership service at age sixty-two (62) years or at his adjusted retirement age, as defined in subsection (a) of this section, shall be allowed to contribute to the plan until the completion of thirty (30) years of membership service and have his service retirement annuity based upon his totalcreditable service (but not more than thirty (30) -4- years) and average final compensation as determined on the earlier of his date of retirement or upon the completion of thirty (30) years of membership service. (2) Any police officer er fireman may remain in the service of the village until such employee has completed thirty (30) years of membership service, provided the employee makes contributions to the plan during each period. The employee may remain in the service of the village after the completion of thirty (30) years of membership service provided such employee continues to make contributions to the plan; however, such employee will not accrue creditable service after he has completed thirty (30) years. Upon retirement, the benefit payable to the police officer er €}rerun will be based on his creditable service as of his date of retirement, but not more than thirty (30) years and his monthly final average cdInpensation of his actual retirement date. (f) If the retired member shall be a police officer ambler fireman and a participant in the special fund, he shall also be entitled to the payment of the amount standing to his credit in the special fund in the manner provided under section 18-43. (g) Any employee who is retired under the provisions of this section as of February 1, 1974, shall receive a one-time five (5) percent cost of living increase in the amount of his monthly retirement income being received under the provisions of this article. The minimum increase shall be ten dollars ($10.00) per month. (h) Any employee who is retired under the provisions of this section as of October 1, 1975, shall receive a one-time five (5) percent cost of living increase in the -5- t amount of his monthly retirement income being received under the provisions of this article. The minimum increase shall be ten dollars ($10.00) per month. (i) Any employee or beneficiary thereof who is receiving benefits under the provisions of this section as of October 1, 1980, shall receive a one-time permanent increase in his monthly retirement income being received under the provisions of this article in the amount of one-fourth percent for each calendar month from the later of October 1, 1975, or the date his benefits commenced through September 30, 1980, up to a maximum increase of ten (10) percent. The minimum increase shall be ten dollars ($10.00) per month. -6- • PROPOSED AMENDMENTS TO MIAMI SHORES PENSION PLAN 400, (May 10, 1988 Draft) • Section 1. Section 18-38, Miami Shores Village Code, "Definitions", is hereby amended to read as follows: Sec. 18-38. Definitions. The following words and phrases as used in this article and the plan, unless a different meaning is plainly required by the context, have the following meanings: Accumulated contributions means the sum of the amounts contributed by a member of the plan and credited to his individual account, plus interest on such amounts credited to his individual account as of the previous January 1 in the amount of three (3) percent per annum, compounded annually each January 1, for each year starting as of January 1, 1976. Actuarial table means the mortality table adopted by the board from time to time in accordance with recommendations of the actuary. Annuity or pension means annual payments for life as provided in the plan. All annuities shall be paid in twelve (12) equal monthly installments. Average final compensation means the average highest annual compensation of a member for any thirty-six (36) consecutive calendar months while a member is contributing within the last one hundred twenty (120) calendar months while a member is contributing, as determined immediately preceding actual termination of service. • Beneficiary means any person receiving a service retirement allowance or any other benefit as provided in the plan. • Compensation means salary or wages payable by the village on a regular payroll to any member for personal services currently performed. Creditable service means membership service plus prior service for which credit is allowable. Employee means any regular officer or employee, including police officer; fireman and any general employee who is employed by the village on a permanent basis. Employees serving on a part-time basis and persons employed under contract for a definite period or for the performance of a particular special service shall not be eligible for participation in the plan. Fiscal year means the calendar year, January first to December thirty-first. Member means any employee in service Included in the membership of the plan, or any former employee who shall have made contributions to the plan and shall not have received a refund, except that no employee shall be included as a member unless such employee shall have completed at least one (1) year of continuous service. and passed his twenty first birthday Membership service means service rendered while a member of the plan for which credit is allowable. Military service means service in the United States armed services. Pension board or board means the board provided for under the plan to administer the plan. Plan means the Miami Shores pension plan. Prior service means service rendered prior to the effective date for which credit is allowable. Regular interest means the actuarial valuation rate of interest adopted by the board from time to time in accordance with recommendations of the actuary. plan. Retirement means the acceptance of a service retirement allowance under this Service means employment as an employee for which compensation is paid by the village. Withdrawal from service means complete severance of employment of any member as an employee of the village by resignation, discharge or dismissal. 0 Section 2. Section 18-41, Miami Shores Village Code, "Same --Legal Advisor", is hereby amended to read as follows: Sec. 18-41. Same—Legal advisor. The attorney for the village shall be the legal advisor to the pension board, and the pension board may, at its discretion, elect to employ other legal counsel. Section 3. Section 18-43, Miami Shores Village Code, "Special. Fund for Police Officers and Firefighters", is hereby amended to read as follows: Sec. 18-43. Special fund for police officers and firefighters. (a) There is hereby created in the village a special fund, separate and distinct from the Miami Shores Pension Fund, into which shall be paid all monies hereafter received on or before December 31, 1969, by the village under the provisions of F.S. Chapters 175 and 185, to the credit of the police officers and firemen who are members of the Miami Shores Pension Plan, hereinafter referred to as participants, prorated in proportion to the number of years of credited service. (b) The special fund shall be administered by the board and the same trustee who are administering the pension plan. (c) Each participant shall be entitled to one (1) share in the special fund for each full year of service as a policeman andier fireman of the village rendered before and/or after August 18, 1970. Promptly after August 18, 1970, the number of full years of service rendered by each participant as a policeman andfer fireman of the village prior to August 18, 1970, shall be determined and a record thereof shall be made on the participant's service record and the participant shall thereupon have as many shares as -4- full years of service rendered, and thereafter each full fiscal year of service shall add one (1) more share to the credit of each participant. (d) The total monies received, the interest earned on the assets of the special fund, any gifts, bequests and devises when donated for the fund and the credits forfeited by the participants shall constitute income to the special fund during each fiscal year and shall be allocated and the value of the respective participant's share shall be determined as follows: (1) The pension board shall pay all costs and expenses of management and operation for the fiscal year last ended. (2) The pension board shall set aside as much of the income as it considers advisable as a reserve for expenses for the current fiscal year. (3) After deducting the monies caned for under (1) and (2) above, the remaining monies shall be allocated and credited to the share accounts of the respective participants. (4) The number of shares to which each participant is entitled at the close of each fiscal year, shall be added together and the total number of shares thus determined shall be divided into the net amount of money available to the allocated and credited to the respective share accounts. The amount to be credited to the account of each participant will then be obtained by multiplying the value determined for one (1) share by the total number of shares to which each participant is entitled. (5) As promptly as practicable after the close of each fiscal year, the value of each participant's share shall be calculated and credited to his share account at the end of the fiscal year for which the calculation is made. Such calculation shall be made and credits allocated to share accounts once -5- only in each fiscal year, and prorations shall not be made for a part of a fiscal year. (e) The individual accounts in the special fund for police officers and firemen as of December 31, 1969, shall no longer be augmented, reassigned or charged fdr expenses. All disbursements from such special fund shall be made in accordance with subsection (d) of this section. all further monies received from the state from the receipts of premiums on casualty and fire insurance written in the village will hereafter go into the regular pension trust fund for the exclusive benefit of police officers and firemen who are members of the Miami Shores Pension Plan for the purpose of providing benefits from the plan in addition to those available to general employees. (f) The cash received by the trustee in connection with this special fund 1044 shall be kept in a separate account as far as accounting is concerned, but may be merged and intermingled with the cash of the pension fund for investment purposes. (g) Upon death, retirement or termination of employment from the village, a participant shall be paid the entire amount standing to his credit in the special fund as of December 31, 1969, in such manner as he shall elect to receive it, either in lump sum, in quarterly installments or as an additional retirement annuity. Settlement as provided herein shall be in full acquittal of all claims of a participant against the special fund, and he shall thereupon cease to be a participant. (h) The village shall have no responsibility for the operation of the special fund except as specified herein, and shall bear no expense in the operation of the special fund. Section 4. Section 18-45, Miami Shores Village Code, "False Statements; Falsifying Records", is hereby amended to read: Sec. 18-45. False statements; falsifying records. The wilful falsification of pension -related documents and the making of willful false statements in an effort to obtain benefits hereunder is strictly prohibited. Any person who knowingly makes any false statement or falsifies or permits to be falsified any reeerd of the plan shall be punishable as provided in seetien 18-46: Section 5. Section 18-46, Miami Shores Village Code, "Penalties For Violation", is hereby amended to read: Sec. 18-46. Penalties for violation. Any Plan member who is determined by the pension board to have willfully falsified pension -related documents, or willfully made a false statement in an effort to obtain benefits hereunder, shall forfeit any right to receive benefits under this Plan, but shall receive only a refund of his/her accumulated contributions to the pension fund. Violation of any prevision e€ this artlele shalt be punished as previded in seetien 1-18T and in addition therete, sueh eenvietien shalt disentitle the persen se eenvieted to further rights to participate in the plait -if the eeuneil by resolution shalt se direet: Upon the filing of a espy of sueh resolution with the beam the rights of sueh • participant shall eease and the beard shall return to him sueh monies as he shall have paid irate the pian,- subjeet to the rights of the village to a lien en sueh funds ler the payment of the fine; if se erdered by the eeuneiI Section 6. Section 18-47, Miami Shores Village Code, "Membership", is hereby amended to read as follows: Sec. 18-47. Membership. (a) All employees in service on the effective date of the plan who are twenty-one (21) years of age or over and have one (1) year of service are deemed to be members as of that date. All others in service on such date shall become members after meeting the age and service requirements, and their contributions shall begin with the first payroll period after the effective date, after they become eligible. (b) Any person who becomes an employee after the effeete date this ordinance takes effect shall, upon completion of one (1) year of continuous service, become a member of the plan as a condition of employment, provided such person is at least twenty-ene 4213 years of age and under fifty-five (55) years of age at the time of completion of one (1) year of service. Contributions of such employee under this plan shall begin with the first payroll period after the age and service requirements shall have been fulfilled, and creditable service shall then begin to accrue. (c) Upon withdrawal from service, the member's accumulated contributions shall be refunded to him and he shall thereupon cease to be a member of the plan. Section 7. Section 18-49, Miami. Shores Village Code, "Service Retirement Allowance", is hereby amended to read as follows: Sec. 18-49. Service retirement allowance. (a) Any police officer and fireman upon withdrawal from service upon or after the completion of twenty-five (25) years of creditable service, and any general -8- employee upon withdrawal from service upon or after the attainment of age sixty-two (62), shall become entitled to recieve a service retirement annuity in an amount provided under subsection (c) of this section. If an employee of the village has been classified as a police officer or fireman for part of his employment with the village and a general employee for another part of his employment with the village, his age for entitlement to receive a service retirement annuity will be adjusted upon his date of change in classification in the following manner: (1) If the employee was classified immediately prior to the current date of change as a police officer er fireman and changes classification to a general employee, his adjusted age of entitlement to receive a service retirement annuity will be ((1) + (2) + (3)) - (4), where: (1) is the age of the member as of the date on which such member would have completed twenty-five (25) years of creditable service assuming continued full-time service with the village multiplied by years and fractions of creditable service accrued to date of current change of classification while classified as a police officer er fireman; (2) is sixty-two (62) multiplied by years and fractions of creditable service accrued to date of current change of classification while classified as a general employee; (3) is sixty-two (62) multiplied by the number of years and fractions from the date of change until the date the employee would attain the age of sixty-two (62); and (4) is the number of years and fractions of creditable service the employee has accrued at his current date plus the number of years and fractions from the date of current change until the date the employee will attain the age of sixty-two (62). -9- (2) If the employee was classified immediately prior to the current date of change as a general employee and changes classification to a police officer er fireman, his adjusted age of entitlement to receive a service retirement annuity will be ((1) + (2) + (3)) t (4), where: (1) is sixty-two (62) multiplied by years and fractions of creditable service accrued to date of current change of classification while classified as a general employee; (2) is the age of the member as of the date such member would have completed twenty-five (25) years of creditable service assuming continued full-time service with the village multiplied by years and fractions of creditable service accrued to date of current change of classification while classified as a police officer er fireman; (3) is the age of the member is of the date such member would have completed twenty-five (25) years of creditable service assuming continued fill -time service with the village multiplied by the number of years and fractions from the date of current change until the date the employee would have completed twenty-five (25) years of creditable service assuming continued full-time service with the village; and (4) is the number of years and fractions of creditable service the employee has accrued at his current date of change plus the number of years and fractions from the date of current change until the date the employee would have completed twenty-five (25) years of creditable service assuming continued full-time service with the village. (b) Any member who shall have completed at least fifteen (15) years of creditable service may withdraw from service at the age of fifty-five (55) or over and shall thereupon become entitled to receive a service retirement annuity equal to the -10- actuarial value of his annuity at age sixty-five (65), or at his option, such member shall become entitled to the service retirement annuity, the payment of which, however, is to be deferred until his attainment of age sixty-five (65). (c) (1) The amount of monthly retirement annuity to which a general employee member shall be entitled shall be equal to two (2) percent of the monthly average final compensation multiplied by the number of years of creditable service, not to exceed thirty (30) years of service. (2) The amount of monthly retirement annuity to which a police officer er fireman shall be entitled shall be equal to two (2) percent of the monthly average final compensation multiplied by the number of years of creditable service up to twenty-five (25) years, plus two and one-half (2 1/2) percent of the monthly average final compensation multiplied by the number Ves of years of creditable service over twenty-five (25) years, but not to exceed a total of thirty (30) years of creditable service. The provisions of this paragraph shall not apply to the creditable service of police officers on and after July 1, 1989. (3) The amount of monthly retirement annuity to which a police officer shall be entitled for creditable service on and after July 1, 1989 shall be equal to two and four -tenths percent (2.4%) of the monthly average final compensation multiplied by the number of gears of creditable service up to twenty-five (25) years, plus two and one-half percent (2.5%) of the monthly average final compensation multiplied by the number of years of creditable service over twenty-five (25) years, but not to exceed a total of thirty (30) years of creditable service. (d) The first monthly installment shall be payable on the first day of the month following the retirement of the member, and payments thereafter shall be due and payable on the first day of each month during the lifetime of the annuitant. (e) (1) Any general employee who has thirty (30) years of membership service and who is permitted to remain in the service of the village after his normal retirement date at age sixty-two (62) or an adjusted retirement age (as defined in subsection (a) of this section) for an employee who has been a police officer er €1reman and changed to a general employee, may remain in service for periods of one (1) year each. No contributions are to be made by such general employee and no further annuity credits shall accrue to him and his annuity shall be fixed as of age sixty-two (62) or his adjusted retirement age as defined in subsection (a) of this section. A general employee who has to his credit less than thirty (30) years of membership service at age sixty-two (62) years or at his adjusted retirement age, as defined in subsection (a) of this section, shall be allowed to contribute to the plan until the completion of thirty (30) years of membership service and have his service retirement annuity based upon his total creditable service (but not more than thirty (30) years) and average final compensation as determined on the earlier of his date of retirement or upon the completion of thirty (30) years of membership service. (2) Any police officer er fireman may remain in the service of the village until such employee has completed thirty (30) years of membership service, provided the employee makes contributions to the plan during each period. The employee may remain in the service of the village after the completion of thirty (30) years of membership service provided such employee continues to make contributions to the plan; however, such employee will not -12- accrue creditable service after he has completed thirty (30) years. Upon retirement, the benefit payable to the police officer or fire man will be based on his creditable service as of his date of retirement, but not more than thirty (30) years and his monthly final average compensation of his actual retirement date. (f) If the retired member shall be a police officer andfer fireman and a participant in the special fund, he shall also be entitled to the payment of the amount standing to his credit in the special fund in the manner provided under section 18-43. (g) Any employee who is retired under the provisions of this section as of February 1, 1974, shall receive a one-time five (5) percent cost of living increase in the amount of his monthly retirement income being received under the provisions of this article. The minimum increase shall be ten dollars ($10.00) per month. (h) Any employee who is retired under the provisions of this section as of October 1, 1975, shall receive a one-time five (5) percent cost of living increase in the amount of his monthly retirement income being received under the provisions of this article. The minimum increase shall be ten dollars ($10.00) per month. (i) Any employee or beneficiary thereof who is receiving benefits under the provisions of this section as of October 1, 1980, shall receive a one-time permanent increase in his monthly retirement income being received under the provisions of this article in the amount of one-fourth percent for each calendar month from the later of October 1, 1975, or the date his benefits commenced through September 30, 1980, up to a maximum increase of ten (10) percent. The minimum increase shall be ten dollars ($10.00) per month. -13- • Section 8. Section 18-50, Miami Shores Village Code, "Reversionary Annuity", is hereby amended to read as follows: Sec. 18-50. Reversionary annuity. (a) Any member entitled to a service retirement annuity may elect at the time of retirement to receive a lesser amount of service retirement annuity and with the remainder of his equity as actuarially determined, provide an annuity for any person whe is dependent upon suet member at the time of retirement a designated beneficiary (or beneficiaries), as named in a written direction filed with the boardi as a part of his applieatien for a serviee retirement annuity; provided; that the eenditien of dependeney exists and has been proved to the satisfaetien of the beard,- and provided, further that the reversionary annuity resulting from such election is found to be not less than ten dollars ($10.00) per month, nor more than the amount of reduced service retirement annuity to which the member is entitled. If more than one beneficiary is designated by a member, the amount of the annuity as actuarially determined shall be equally apportioned among the beneficiaries. (b) Any such reversionary annuity shall begin as of the first day of the month following the date of the death of the member receiving service retirement annuity; provided, that the person or persons designated to receive the reversionary annuity shall have been alive on the date of the death of such member, but if any such designated beneficiary person does not survive the member who shall be receiving service retirement annuity, no reversionary annuity shall be payable to such deceased beneficiary, nor shall any change be permitted by the beard in the written direet en filed with the beard after the serviee retirement annuity has been granted and has beeeme effeetive member be permitted to change his/her designated beneficiary (or -14- beneficiaries) more than two times after the service retirement annuity has been granted and become effective. Section 9. Section 18-53, Miami Shores Village Code, "Contributions by Members", is hereby amended to read as follows: Sec. 18-53. Contributions by members. (a) Each village employee who is a member of the plan shall contribute six (6) percent of earnable compensation. Such contribution by any general employee shall cease upon the normal retirement date of the member, or upon the completion of thirty (30) years of membership service, if later. Such contribution for a police officer er fireman shall continue until his actual retirement date. This contribution shall be made in the form of a deduction from compensation and shall be made notwithstanding that the compensation paid in cash to such employee shall be reduced thereby below the minimum prescribed by law. Every employee who is a member of the plan shall be deemed to consent and agree to deductions made from his compensation and provided for in this plan, and shall receipt in full for salary or compensation, and payment to the employee of compensation less such deduction shall constitute a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by such employee during the period covered by such payment except as to the benefits provided for under the plan. (b) Effective. July 1, 1989, the contribution made by members who areop lice officers shall be increased by the percentage of compensation determined by the plan actuary to be equal to one-half (1/2) the cost of the benefit increase provided in Section 18-49(c)(3); provided that such contribution increase shall not exceed four percent (4%) -15- of earnable compensation in addition to the six percent (6%) contribution set forth in this section. Section 10. Section 10-54, Miami Shores Village Code, "Contributions By State and Village", is hereby amended to read as follows: Sec. 18-54. Contributions by state and village. (a) On and after January 1, 1970, any and all monies hereafter received by the village under the provisions of F.S. Chapters 1T5 and 185, shall be deposited into the Miami Shores Pension Fund for the exclusive benefit of police officers and firemen who are members of the Miami Shores Pension Plan. (b) Contributions by the village to meet the requirements of the plan shall consist of contribution to the plan by means of annual appropriations of the amounts which together with contributions made by members, interest income from investments and other income received by the plan, will be sufficient to meet the cost of maintaining and administering the plan and meeting its various requirements; provided, that the total annual contribution by the village does not exceed the amount of one (1) mill on all taxable property in the village according to the next preceding assessment, unless a greater contribution is required by operation of state law.