O-659-06 ORDINANCE NO. 659-06
AN ORDINANCE OF THE MIAMI SHORES VILLAGE
COUNCIL AMENDING CHAPTER 18 "PERSONNEL" OF THE
VILLAGE CODE BY CREATING A NEW ARTICLE V,
"EXCESS BENEFIT PLAN," TO ESTABLISH AN EXCESS
BENEFIT PLAN TO ALLOW ELIGIBLE MEMBERS OF THE
MIAMI SHORES GENERAL EMPLOYEES PENSION PLAN
AND THE POLICE OFFICERS' RETIREMENT SYSTEM 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;
PROVIDING FOR INCLUSION IN THE CODE; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, a defined level of benefits are available to eligible members of the
Miami Shores General Employees Pension Plan pursuant to Chapter 18, Article III, of the
Miami Shores Village Code(the"Code"); and
WHEREAS, a defined level of benefits are available to eligible members of the
Police Officers' Retirement System pursuant to Chapter 18,Article IV, of the Code; and
WHEREAS, Section 415 of the Internal Revenue Code (IRC) limits the 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 plans are not diminished by
the changes in the IRC;
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL
OF MIAMI SHORES VILLAGE, FLORIDA, THAT:
Section 1. The recitals and findings contained in the Preamble to this
Ordinance are hereby adopted and incorporated herein by reference.
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Section 2. Chapter 18, "Personnel" of the Village Code is hereby amended
by adding a new Article V, entitled "Excess Benefit Plan," which said section reads as
follows:
Chapter 18. Personnel
Article V. Excess Benefit Plan.
An Excessive Benefit Plan is hereby established to allow eligible members
of the General Employees Retirement Plan and the Police Officers' Retirement
System 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:
(1.) Payment of the Miami Shores Village contribution of excess
retirement benefits for eligible members of either the General Employees
Retirement Plan or the Police Officers' Retirement System 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 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 that plan.
(2.) The actuaries for the Police Officers' Retirement System's and the
General Employees Pension 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 implementations of Section 415 of the
Internal Revenue Code.
(3.) The excess benefits shall be paid to each eligible member of either
the General Employees Pension Plan or the Police Officers' Retirement
System 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
either the General Employees Pension Plan or the Police Officers'
Retirement System pursuant to the provides set forth in the Code.
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Section 3. It is the intention of the Village Council of Miami Shores Village
that the provisions of this Ordinance shall be made a part of the Village's Code of
Ordinances and the sections may be renumbered to accomplish such intention.
Section 4. If any portion, clause, phrase, sentence or classification of this
ordinance is held or declared to be either unconstitutional, invalid, inapplicable,
inoperative, or void, then such declaration shall not be construed to affect other portions
of the ordinance; it is hereby declared to be the express opinion of the Village Council of
Miami Shores Village that any such unconstitutional, invalid, inapplicable, inoperative or
void portion or portions of this ordinance did not induce its passage, and that without the
inclusion of any such portion or portions of this ordinance, the Village Council would
have enacted the valid constitutional portions thereof.
Section 5. This Ordinance shall take effect immediately upon approval and
adoption on second reading.
APPROVED on the first reading hereof this 7th day of November , 2006.
PASSED AND APPROVED on second a 'ng this 5th day of
December ,2006.
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AL DAVIS,MAYOR
ATTEST:
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Barbara Estep, MMC,
Village Clerk
APPROVED AS TO FORM:
Richard Sarafan,
Village Attorney
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