Loading...
O-647-04 ORDINANCE NO. 647-04 AN ORDINANCE OF MIAMI SHORES VILLAGE, FLORIDA, AMENDING SECTIONS 18-38, 18-39, 18-48),18-49, 18-53, 18-58, AND 18-65 OF THE CODE OF ORDINANCES OF MIAMI SHORES VILLAGE, FLORIDA, RELATING TO THE DEFINITION OF AVERAGE FINAL COMPENSATION, CONTRIBUTIONS BY MEMBERS, CREDITABLE SERVICE,THE COMPOSITION OF THE GENERAL EMPLOYEES PENSION BOARD AND THE POLICE OFFICER'S RETIREMENT SYSTEM PENSION BOARD, PROVIDING FOR CONFLICTS, PROVIDING FOR SEVERABILITY, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Village employees are provided pension benefits through two Village pension plans, the General Employee Pension Plan and the Police Officer's Retirement System Pension Plan; and WHEREAS, the plans are administered by Pension Boards whose trustees are generally appointed by the Village Council and whose composition is outlined in the Village's Code of Ordinances; and WHEREAS, in accordance with substantial changes to State law and otherwise, the Village's Code of Ordinances was amended in 2000 to harmonize the Village Pension Plan Code provisions with such new legal requirements; and WHEREAS, Special Pension Plan Counsel for the Village has recommended certain additional housekeeping amendments be adopted to clarify and streamline current code provisions and practices regarding these Pension Plans, in the best interest of the Village; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF MIAMI SHORES VILLAGE, FLORIDA: SECTION 1. That that portion of Section 18-38 Definitions of the Miami Shores Village Code of Ordinances which defines '"Average final compensation" shall stand amended to read as follows: Average final compensation means the average highest annual compensation of a member for the last 36 consecutive calendar months worked. SECTION 2. That Section 18-39 (a) of the Miami Shores Village Code of Ordinances shall stand amended to read as follows: (a) Purpose; composition; terms The general administration of the plan and the responsibility for carrying out the provisions of the plan are hereby vested in a pension board. Such board shall be composed of seven members; the village manager ex officio, three citizens who hold no office in and are not employed by the Village; one council member ex officio, other than the council members serving on the police officers' pension board; and two active general employees appointed by the council. With the exception of the council member and village manager, the board members shall each serve for a period of two years, or until their successors are appointed. Appointed members may be removed at any time by a majority vote of the village council. SECTION 3. That Section 18-48 (a) of the Miami Shores Village Code of Ordinances shall stand amended to read as follows: (a) After January, 1, 1967, all service of a member, since he last became a member with respect to which contributions are made, shall count as membership service, except that if any employee shall remain in the service of the village for ten years or more, his creditable service shall be computed from his date of employment. SECTION 4. That Section 18-49 (b), (c) and (e) of the Miami Shores Village Code of Ordinances shall stand amended to read as follows: (b) Any member who shall have completed at least 15 years of creditable service may withdraw from service at the age of 55 or over and shall thereupon become entitled to receive a service retirement annuity at a substantially reduced benefit level and equal to the actuarial value of his annuity at age 62, 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 62. (c) The amount of monthly retirement annuity to which a general employee member shall be entitled shall be equal to two percent of the monthly average final compensation multiplied by the number of years of creditable service. (e) Any general employee who has 30 years of membership service and who is permitted to remain in the service of the village after his normal retirement date at age 62 or an adjusted retirement age (as defined in subsection (a) of this section) for an employee who has been a police officer and changed to a general employee, may remain in service. A general employee who has to his credit less than 30 years of membership service at age 62 years or at his adjusted retirement age, as defined in subsection (a) of this section, shall be allowed to contribute to the plan and have his service retirement annuity based upon his total creditable service and average final compensation as determined on his date of retirement. SECTION 5. That Section 18-53 of the Miami Shores Village Code of Ordinances shall stand amended to read as follows: Each Village employee who is a member of the plan shall contribute six percent of earnable compensation. Such contribution by any general employee shall cease upon the retirement date of the member. 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 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. Each contribution made by each member shall be designated as an employer contribution as defined by Section 414(h)(2) of the Internal Revenue Code of 1986, contingent upon such contribution being excluded from such member's gross income for federal income tax purposes. For all other purposes of the plan, contributions shall be considered member contributions. SECTION 6. That Section 18-58 (a) 2) of the Miami Shores Village Code of Ordinances shall stand amended to read as follows: (a) Subject to the adjustments hereinafter set forth, the maximum amount of annual retirement income payable with respect to a member under this plan shall not exceed the lesser of: 1) $90,000; or, 2) 100 percent of such member's average aggregate compensation for the three consecutive calendar years during which such member worked and had his or her highest aggregate compensation. For purposes of this subsection, %%compensation" shall mean the member's total annual remuneration paid or accrued for personal services rendered to Miami Shores Village, Florida, during the plan year as reported on the member's W-2 form. For purposes of applying the limitations set forth in this subsection, benefits payable in any form, other than a straight life annuity with no ancillary benefits, shall be adjusted, as provided by applicable United States Treasury Regulations, so that such benefits are the actuarial equivalent of straight life annuity. For purposes of this subsection, the following benefits shall not be taken into account: (i) any ancillary benefit which is not directly related to retirement income benefits; and (ii) any other benefit not required by Section 415 (b) (2) of the Internal Revenue Code of 1986, or Regulations thereunder, to be taken into account for purposes of the limitation of Section 415(b)(1) of the Internal Revenue Code of 1986. SECTION 7. That Section 18-65 (a) of the Miami Shores Village Code of Ordinances shall stand amended to read as follows: (a) Purpose; composition; terms The sole and exclusive administration of and responsibility for the proper operation of the system and for making effective the provisions of this article is hereby vested in a board of trustees. The board is hereby designated as the plan administrator. The board shall consist of five trustees comprised as follows: two council members ex officio; two members shall be village police officers, elected by a majority vote of the eligible membership of the Miami Shores Police Retirement System. The fifth trustee shall be chosen by a majority of the other four trustees, as provided for herein, and such person's name shall be submitted to the village council. Upon receipt of the fifth person's name, the Miami Shores Village Council, shall, as a ministerial duty, appoint such person to the board of trustees as its fifth trustee. With the exception of the elected officials, the trustees shall each serve for a two-year period or until their successors are appointed or elected. Appointed members may be removed from their trustee position by a majority vote of the village council. For the two trustee positions filled by police officers, service will continue for a two-year period unless they sooner leave their employment with the village as a police officer or otherwise vacate their respective office as trustee, whereupon a successor shall be chosen in the same manner as originally specified herein. Each trustee may succeed himself in office. The board shall establish and administer the nominating and election procedures for each election. The board shall meet as a whole each quarter or on other regular schedules as amended by the board. The board shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature and description. Each trustee shall be entitled to one vote on the board. Three affirmative votes shall be necessary for any decision by the trustees at any meeting of the board. The board shall engage such actuarial, accounting, legal and other services as shall be required to transact the business of the system. The compensation of all persons engaged by the board and all other expenses of the board necessary for the operation of the system shall be paid from the fund at such rates and in such amounts as the board shall determine. In the event the board chooses to use the village's legal counsel, actuary or other professional, technical or other advisors, it shall do so only under terms and conditions acceptable to the board. The board shall elect a chair and secretary from among its members. The secretary shall be charged to maintain all records of meetings and actions. With the chair, the secretary shall execute on behalf of the board any paper, documents or other instruments resulting from board action and so required for legal compliance. SECTION 8. All ordinances or parts of ordinances in conflict herewith or inconsistent herewith, are hereby repealed, but only insofar as such ordinances may be inconsistent or in conflict with this Ordinance. SECTION 9. If any section, sentence, clause or phrase of this Ordinance is held to be invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in no way effect the validity of the remaining portions of this Ordinance, which shall be deemed to be severable therefrom. Passed on first reading this 21't day of September 2004. Passed on second and final reading this St' day of October , 2004. ATTEST: Jim MCC t Mayo Barbara A. Estep, CMC Village Clerk APPROVED AS TO FORM: LL4zs Richard Sarafan Village Attorney August,2004 Ordinance N1