O-604-98 (2) ORDINANCE NO. 604-98
An ordinance of Miami Shores Village, Florida,adopting and enacting a Deferred Retirement Option
Plan for sworn police personnel employed by Miami Shores Village; providing for the administration and
management of such plan;and providing for an effective date.
Whereas, it is in the best interests of Miami Shores Village to enact a Deferred Retirement Option Plan for
sworn police personnel employed by the Village,
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF MIAMI
SHORES VILLAGE,FLORIDA:
Section 1. That the Code of Ordinances,Miami Shores Village, Florida, is hereby amended by adding
a section to be numbered 18-53 ,which said section reads as follows:
Sec. 18-53. Deferred Retirement Option Plan for Sworn Police Personnel.
(A)As used in this section,employee means sworn police personnel.
(B) Effective May 5 1998—' subject to the approval of the Division of Retirement of the Florida
Department of Management Services and the Pension Board of Trustees,any current employee with at least
twenty-five(25)but not more than thirty(30)years of continuous service as a member of the Pension Plan may
elect to participate in the Deferred Retirement Option Plan for Sworn Police Personnel in accordance with this
section.
(C)An employee's election to participate in the Deferred Retirement Option Plan for Sworn Police
Personnel must be made in writing and shall become effective thirty(30)days following the date it is received
by the Pension Board of Trustees,or on a later date specified by the employee.
(D)An employee who elects to participate in the Deferred Retirement Option Plan for Sworn Police
Personnel may participate in such plan for a maximum of sixty(60)months before the employee attains thirty
(30) years of continuous service,the employee may participate in the Deferred Retirement Option Plan for
Sworn Police Personnel only until thirty(30)years of service is attained.
(E)An employee's continuous service and accrued benefit under the Pension Plan shall be determined
and frozen on the effective date of the employee's election to participate in the Deferred Retirement Option Plan
for Sworn Police Personnel. An employee who elects to participate in the Deferred Retirement Option Plan
for Sworn Police Personnel shall not accrue any additional continuous service or benefits under the Pension
Plan,except for any cost-of-living adjustments provided to retirees under the Pension Plan. No amounts shall
be paid directly to an employee from the Pension Plan while the employee is a participant in the Deferred
Retirement Option Plan for Sworn Police Personnel.
(F)A Deferred Retirement Option Plan for Sworn Police Personnel account shall be established for
each employee who elects to participate in the Deferred Retirement Option Plan for Sworn Police Personnel
in accordance with this section. During the period of the employee's participation in the Deferred Retirement
Option Plan for Sworn Police Personnel,the employee's normal retirement benefit,calculated in accordance
with the Pension Plan based on average monthly earnings and continuous service as of the effective date of the
employee's election to participate in the Deferred Retirement Option Plan for Sworn Police Personnel, shall
be credited to the employee's Deferred Retirement Option Plan for Sworn Police Personnel account. No further
contributions to the Pension Fund will be required of the Village,or the employee, on behalf of any employee
who has elected participation in the Deferred Retirement Option Plan for Sworn Police Personnel. The
employee's Deferred Retirement Option Plan for Sworn Police Personnel account shall be invested as part of
the corpus of the Pension Fund by the Pension Board of Trustees and shall be credited with interest equal to
the overall net rate of return on Pension Fund assets during the period the employee participates in the Deferred
Retirement Option Plan for Sworn Police Personnel.
(G) At the conclusion of the employee's participation in the Deferred Retirement Option Plan for
Sworn Police Personnel,and as a condition of participating in such Plan,the employee will retire and terminate
Village employment. The employee will thereafter receive a normal retirement benefit calculated in accordance
with the Pension Plan based on average monthly earnings and continuous service as of the effective date of the
employee's election to participate in the Deferred Retirement Option Plan for Sworn Police Personnel. The
employee's Deferred Retirement Option Plan for Sworn Police Personnel account will thereafter be distributed
to the employee in a cash lump sum, unless the employee alternatively elects to receive payments in
approximately equal quarterly or annual installments over a period designated by the employee,not to exceed
the life expectancy of the employee or the joint life expectancy of the employee and the employee's designated
beneficiary. In the event the employee dies before all installments have been paid,the remaining balance in the
employee's Deferred Retirement Option Plan for Sworn Police Personnel account shall be paid in an immediate
cash lump sum sent toe the employee's designated beneficiary.
(IT) Notwithstanding the provisions of the foregoing paragraph (G), if an employee dies before
distribution of the employee's Deferred Retirement Option Plan for Sworn Police Personnel account
commences,the account balance shall be paid to the employee's beneficiary in an immediate cash lump sum.
(I) Except as otherwise provided in the Section, distribution of an employee's Deferred Retirement
Option Plan for Sworn Police Personnel account shall begin as soon as administratively practicable following
the employee's termination of employment. An employee may, in accordance with such procedures as the
Pension Board of Trustees may prescribe,elect to defer distribution of the Deferred Retirement Option Plan
for Sworn Police Personnel account until the first day of any month coincident with or following the employee's
tennination of Village employment;provided,however,distribution shall be made before the distribution date
elected by the employee to the extent necessary to comply with the Internal Revenue Code and regulations
thereunder. Any amounts in an employee's Deferred Retirement Option Plan for Sworn Police Personnel
account shall continue to be invested by the Pension Board of Trustees and shall be credited with the next
investment return on the Pension Fund until the balance of the Deferred Retirement Option Plan for Sworn
Police Personnel account is fully distributed to the employee or the employee's beneficiary.
(J) In no event shall the provisions of this Section operate so as to allow the distribution of an
employee's Deferred Retirement Option Plan for Sworn Police Personnel account to begin later than April 1
following the later of the calendar year in which the employee terminates City employment or attains age
seventy and one-half(70-1/2).
(K)Notwithstanding any other provisions of the Section, all distributions from employee Deferred
Retirement Option Plan for Sworn Police Personnel accounts shall conform to applicable provisions of the
Internal Revenue Code and regulations issued thereunder.
(L)The Pension Board of Trustees is authorized to adopt such rules and regulations as are necessary
to interpret, implement,and administer the Deferred Retirement Option Plan for Sworn Police Personnel.
Section 2. This ordinance shall become effective on the date of adoption.
APPROVED on the first reading this 21 day of April , 1998.
PASSED and ADOPTED on second reading this 5 day of May , 1998.
*�t� 44-,�
MAR ROSS AGOSTA, M40R
ATTEST:
BY:
Barbara A. Fugazzi,V' lage C erk
APPROVED AS TO FORM:
BY:
Village Attorney