HomeMy WebLinkAboutO-2007-024 Pension Amendment ORDINANCE NO. 2007-024
AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA
PERTAINING TO THE CITY RETIREMENT SYSTEMS; AMENDING
CHAPTER 18 OF THE CITY CODE OF ORDINANCES, WHICH CHAPTER
IS ENTITLED "PENSIONS AND RETIREMENT," TO AMEND SECTION 18-
1, "PARTICIPATION IN GROUP INSURANCE — RETIREES" TO CLARIFY
THAT EMPLOYEES WHO TERMINATE CITY EMPLOYMENT BUT WHO
ARE VESTED AT THE TIME OF TERMINATION ARE TO BE AFFORDED
THE OPTION TO RE-JOIN THE CITY HEALTH PLAN WHEN THEY
BECOME RETIREES; FURTHER, TO CREATE DEFINITIONS FOR THE
TERMS "VESTED TERMINATED", "TERMINATED VESTED"
(EMPLOYEES), "RETIREE" AND "TO RETIRE" AND TO PROVIDE FOR
THEIR INCLUSION IN SECTION 18-3 ("DEFINITIONS"); PROVIDING FOR
CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER, PROVIDING
FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA
BEACH:
Section 1. That Section 18-1 of the City Code of Ordinances, which section is
entitled"Participation in group insurance—Retirees", is amended to read as follows:
Sec. 18-1. Participation in group insurance--Retirees.
All retired city officials and employees are authorized to enter into such agreements as
are necessary to provide that retired officials, 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)
of the cost of any such continued participation in any such group insurance plan shall be paid by
the retired employee. However, retired employees and employee beneficiaries receiving benefits
from any city retirement plan and trust shall be eligible for an annual health insurance subsidy as
provided in subsections 18-29.2(k) and 18-42(10) herein; and provided further, however, that the
city will pay health insurance premiums of federally required "COBRA" (Consolidated Omnibus
Budget Reconciliation Act of 1986) coverage on behalf of surviving member beneficiaries of a
deceased general employee for a maximum of six (6) months after the date of death of the
retiree. Such survivors are eligible for continued group health coverage in accordance with
COBRA legislation. Premiums for such coverage will be made by the city for the first six (6)
months following the death of the covered retiree; thereafter, the cost of COBRA coverage will
be the responsibility of the survivor. 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.
"Vested terminated" or "terminated vested" employees are eligible for continued health
care insurance coverage under COBRA, under the same rules as all employees whose City
employment is terminated under any circumstance other than retirement. "Vested terminated" or
"terminated vested" employees become retirees when they begin collecting retirement benefits.
At that time, they are offered the option to rejoin the City health plan as a retiree on the same
basis and subject to the same terms and conditions provided to anyone retiring at that time.
Section 2. That Section 18-3 of the City Code of Ordinances, which section is
entitled "Definitions," is amended to read as follows:
Sec. 18-3. Definitions.
As used in this Chapter and for the administration and construction of its provisions,
unless otherwise defined or plainly required by context, the following terms shall have the
meaning indicated:
Retiree means a person who was formerly a City employee and who is eligible to be paid
a retirement benefit from the General Employees' Retirement Plan and Trust or the City of Dania
Police and Firefighters Retirement System; provided, however, that the refund of accumulated
contributions with or without interest, as provided in this Chapter, is not a "retirement benefit."
• • •
To Retire, in all its forms, means the act of becoming a Retiree.
• • •
Vested Terminated or Terminated Vested means and refers to a person who was formerly
a member of the General Employees' Retirement Plan and Trust or the City of Dania Police and
Firefighters Retirement System but who separated from employment by (or, in the case of an
elected public official, separated from office with) the City after obtaining a vested right to a
retirement benefit, but prior to becoming eligible to be paid such retirement benefit and who is
not yet eligible to be paid such retirement benefit from the General Employees' Retirement Plan
and Trust or City of Dania Police and Firefighters Retirement System; provided, however, that
the refund of accumulated contributions with or without interest, as provided in this Chapter, is
not a "retirement benefit."
2 ORDINANCE 42007-024
Section 3. That it is the intent and understanding of the City Commission that this
Ordinance merely ratifies, confirms, validates, clarifies and codifies longstanding practice.
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.
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 October 9, 2007.
PASSED and ADOPTED on second reading on October 23, 2007.
OB Af4TON
MAYOR—CO MISSIONER
AT EST:
"o)
LOUISE S ILSON, CMC
CITY CLERK
APPROVED AS TO FORM AND CORRECTNESS:
BY:
TH MAS PAIVSBRO
CITY ATTORNEY
3 ORDINANCE#2007-024