The URL can be used to link to this page

Home My WebLink AboutO-2006-007 Amending Chapter 18 - Pension ORDINANCE NO. 2006-007 AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA AMENDING CHAPTER 18 OF THE CITY CODE OF ORDINANCES, WHICH CHAPTER IS ENTITLED "PENSIONS AND RETIREMENT," TO PROVIDE FOR CHANGES IN REQUIREMENTS FOR PARTICIPATION OF GENERAL EMPLOYEES IN THE DEFERRED RETIREMENT OPTION PLAN ("DROP"); AND FOR ELIGIBILITY FOR PARTICIPATION IN THE RETIREE HEALTH INSURANCE SUBSIDY; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. i i WHEREAS, it is desirable to amend certain aspects of the requirements for participation by general employees in the DROP; and WHEREAS, it is also desirable to amend certain aspects of the requirements for participation in the retiree health insurance subsidy applicable to general employees; and WHEREAS, these changes will not affect members of the bargaining unit for police and fire employees; and WHEREAS, these amendments have been negotiated with the union for the affected employees; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH: Section 1. That Section 18-29.7 of the "Code of the City of Dania Beach" pertaining to "Pensions and Retirement" is amended to read as follows: Sec. 18-29.7. Optional forms of benefit payments. Each member entitled to a normal, early or delayed retirement benefit shall have the right teat any time prior to the date on which benefit payments begin, to elect to have the benefit payable under any one of the options as hereinafter set forth in lieu of the benefits otherwise provided herein, and to revoke any such elections and make a new election at any time prior to the actual beginning of payments. The value of optional benefits shall be actuarially equivalent to the value of benefits otherwise payable, and the present value of payments to the retiring member must be at least equal to fifty (50) percent of the total present value of payments to the retiring member and his or her beneficiary. The member shall make such an election by written request to the board, such request being retained in the board's files. I Option I Joint and last survivor option: The member may elect to receive a reduced benefit during his or her lifetime and having such benefit (or a designated fraction thereof) continued after his or her death to and during the lifetime of his or her designated beneficiary. The election I i of Option 1 shall be null and void if the designated beneficiary dies before the member's benefit payments commence. i Option 2 Straight life annuity basis: The,member may elect to receive his or her benefit on a straight life annuity basis, with benefit payments ceasing upon the member's death. Option 3 Other: In lieu of the other optional forms enumerated in this section, benefits may be paid in any form approved by the board so long as actuarial equivalence with the benefits otherwise payable is maintained. An interest only option or an option i,providing guaranteed payments over a period in excess of twenty (20) years or beyond age eighty-five (85) may not be elected. The board, in its sole discretion, may make a lump sum distribution of any monthly payment with a present value not exceeding three thousand dollars ($3,000.�00) Option 4 Deferred retirement option plan: A member may enter into the deferred retirement option plan (DROP) on the first day of any month following the date upon which the member reaches normal retirement date or early retirement date. A member will no!longer be required to make contributions to the plan or, at the member's option may be permitted to make reduced contributions to the plan, and the member's retirement benefits will accrue to the member's benefit through a separate fund administered by the board of trustees. Members electing to participate in the DROP plan whose contributions to the retirement system are either discontinued or reduced shall receive a return of any contributions made into the retirement system on their behalf after the commencement of their participation in the DROP plan or, at the member's option, said contributions shall be deposited into a separate fund administered by the • board of trustees. The DROP plan shall be administered by the board of trustees in such a way as to not increase the city's contributions to the retirement system. Members electing to enter the DROP plan after March 1, 2006, shall submit with their application to enter the plan an irrevocable letter of resignation of employment to be effective no later than five years from the date of entry into the DROP. Termination of employment may occur sooner but in no event later than the effective date of the letter of resignation. Eligible rollover distributions: If the recipient of any eligible rollover distribution, as that term is defined in Section 402(f)(2)(A) of the Internal Revenue Code, including any lump sum payments of retirement benefits or deferred compensation accounts (Internal Revenue Service Code. Sec. 457), lump sum refunds of member contributions, and lump sum returns of member contributions which were picked up by the city, elects to have such distribution paid directly to an eligible retirement plan or individual retirement account (IRA), and specifies the eligible retirement plan or IRA to which such distribution is to be paid (in such form and at such time as the board of trustees may prescribe), then the distribution will be made in the form of a direct trustee-to-trustee transfer to the specified eligible retirement plan or IRA. Section 2. That Section 18-1 of the "Code of the City of DanialBeach" pertaining to "Pensions and Retirement" is amended to read as follows: i 2 ORDINANCE#2006-007 i Sec. 18-1. Participation in group insurance—Retirees. All retired city officials and employees are authorized to enter intio such agreements as are necessary to provide that retired officials_, armor employees or both of the city may participate in the group medical, hospitalization and life insurance plan of the city, provided that one-third (1/3) the cost of any such continued participation in any such group insurance plan shall be entirely paid by the retired employee. However, retired employees and employee beneficiaries who were hired before March 1, 2006, and who are receiving benefits from any city retirement plan and trust shall be eligible for an annual health insurance subsidy as provided in sections 18-29(k) 18-29.2(k) and 18-42(10) herein. Retired city officials and employees not receiving benefits from any city retirement plan and trust shall be eligible to participate in the city's group insurance plan at their own expense. Section 3. That Section 18-29.2, Sub-Section (k), of the "Code of the City of Dania Beach" pertaining to "Pensions and Retirement" is amended to read as follows: i i (k) Effective June 1, 2001, all member retirees and member beneficiaries receiving benefits from the Employees' Retirement Plan and Trust shall be eligible, as provided for and limited by Section 18-1 herein, for an annual health insurance subsidy computed as follows. Seventy-five (75) percent of the prior year's actuarial gain allocable to members, member retirees and member beneficiaries remaining after the application of subsection 0) shall be defined as the "available actuarial gain." The available actuarial gain for each fiscal year shall be calculated prior to the • following June 1 and shall be paid during the following month of October to the City of Dania Beach. Such payment is to be utilized per capita to subsidize up to one (10 year's payments for retiree health insurance due from each member retiree and member beneficiary who receives benefits from the plan, which payments shall be one-third ( 1/3) of the premium cost for such insurance as provided in section 18-1 herein. Should the available actuarial gain not be fully expended by this health insurance subsidy, then the balance of the actuarial gain shall be paid to the City of Dania Beach to subsidize the City of Dania Beach's cost of providing one (1) year of retiree health insurance to such member retirees and beneficiaries, which cost shall be two-thirds ( 2/3) of the premium cost for such insurance as provided in section 18-1 Herein. Premium costs shall be determined in accordance with Section 112.0801, Florida Statutes. Should the available actuarial gain not be fully expended by this subsidy to the city, then the balance, together with any unexpended available actuarial gain from prior years, shall be accrued by the plan in a "future benefit reserve account" which shall be used only to pay the full cost of additional future benefits to the plan's member retirees and beneficiaries, the determination and payment of which are hereby delegated by the city commission to the board of trustees in its sole discretion. Deferred Retirement Option Program (DROP) participants shall receive credit for any such future benefits paid while participating in the DROP but not for the health insurance subsidy. i Section 4. That if any section, clause, sentence or phrase of this Ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction]the holding shall not affect the validity of the remaining portions of this Ordinance. 3 ORDINANCE 42006-007 I I Section 5. That all ordinances or parts of ordinances in conflict'with the provisions of this Ordinance are repealed. Section 6. That this Ordinance shall be effective immediately at adoption on second reading. PASSED on first reading on March 14, 2006. PASSED and ADOPTED on second reading on March 28, 2006. PATRICIA FLURY MAYOR—COMMISSIONER i ATTEST: ROLL CALL: COMMISSIONER BERTINO -YES COMMISSIONER CA STRO - YES • LOUISE STILSON, CMC COMMISSIONER MCELYEA -YES CITY CLERK VICE-MAYOR ANTON— YES MAYOR FLURY - YES APPROVED AS TO FORT l AND CORRECTNESS: I BY: ( ' TH MA J. ANSB O CITY ATTORNEY 4 ORDINANCE#2006-007 • NOTICE OF HEARING BEFORE CITY COMMISSION CITY OF DANIA BEACH, FLORIDA, REGARDING 1 ADOPTION OF THE FOLLOWING PROPOSED ORDINANCE: i NOTICE IS GIVEN that on March 28, 2006, at 7:00 p.m. or as soon thereafter as the matter may be heard, the City Commission of the City of Dania Beach, Florida, will conduct a public hearing in the Commission Chamber at Dania Beach City Hall, 100 West Dania Beach Boulevard, Dania Beach, Florida, to consider the proposed adoption of the following Ordinance: i ORDINANCE NO. 2006-007 i AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA AMENDING CHAPTER 18 OF THE CITY CODE OF ORDINANCES, WHICK CHAPTER IS ENTITLED "PENSIONS AND RETIREMENT," TO PROVIDE FOR CHANGES IN REQUIREMENTS FOR PARTICIPATION OF GENERAL EMPLOYEES IN THE DEFERRED RETIREMENT OPTION PLAN ("DROP"); AND FOR ELIGIBILITY FOR PARTICIPATION IN THE RETIREE HEALTH INSURANCE SUBSIDY; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. i • Copies of the proposed Ordinance are on file in the Office of the City Clerk, City Hall, 100 West Dania Beach Boulevard, Dania Beach, Florida, and may be inspected by the public during normal business hours. Interested parties may appear at the aforesaid meeting and be heard with respect to the proposed. Any person who decides to appeal any decision made with'respect to any matter considered at this hearing will need a record of the proceeding's and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to bAased. In accordance with the American with Disabilities Act, persons needing assistance to participate in any of the proceedings should contact the City Clerk's Office, 100 West Dania Beach Boulevard, Dania Beach, Florida 33004, (954) 924-3622 ate least 48 hours prior to the meeting. /s/Louise Stilson City Clerk Run in "The Miami Herald": March 18, 2006