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HomeMy WebLinkAboutO-2000-008 ORDINANCE NO. 2000-008 AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING THE CODE OF ORDINANCES RELATING TO THE POLICE AND FIREFIGHTERS RETIREMENT SYSTEM; PROVIDING THAT THE DEFERRED RETIREMENT OPTION PLAN (DROP) SHALL INCLUDE A PARTICIPANT SELF- DIRECTED INDIVIDUAL ACCOUNT; PROVIDING THAT THE BOARD OF TRUSTEES SHALL DESIGNATE AN INVESTMENT ADVISER TO INDIVIDUALLY ADMINISTER THESE ACCOUNTS; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR A REPEALER; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Commission has provided for a deferred retirement option plan (DROP) in the City of Dania Beach Code of Ordinances relating to the Police and Firefighters Retirement System, and WHEREAS, amending the DROP to provide an option of a self-directed participant individual account administered by a designated service provider will provide participants with direct control of the investment of their assets while reducing the administrative costs to the • System and City, and WHEREAS, the City Commission has received and reviewed the actuarial impact statement concerning the cost impact of this ordinance amendment prepared by the Retirement System's actuary, and WHEREAS, the proposed ordinance amendment has been approved and recommended by the Retirement System Board of Trustees; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AS FOLLOWS: Section 1. Sec. 18-43(b), of the Dania Beach Code is hereby amended by deleting the stFiGken through language and adding the underlined language as follows: Sec. 18-43. Optional forms of benefits. (b) Deferred retirement option plan. A member may enter into the deferred retirement option plan (DROP),_ which plan is to be created and administered by the board of trustees of the fund on the first day of any month following the completion of at least twenty-five (25), but less than thirty (30) years of credited service. The maximum duration of participation in the DROP shall be the number of years ORDINANCE NO. 2000 -008 which, when added to the number of years of all creditable service which the member has in the Retirement System, equals a total of thirty (30) years, or for a participant who is the head of a city department equals thirty-two and one- half (32 1/2) years. In any case the total participation in the DROP shall not exceed five (5) years or seven and one- half (7 1/) years for a department head, and participation will end if the employee resigns, dies or is terminated for just cause. A member may participate in the plan only once and after commencement in the DROP he or she shall never have the right to be a contributing member of the retirement system again. Upon the effective date of the commencement of participation in the deferred retirement option plan, membership in the system shall terminate and neither employee nor employer contributions shall be payable. The member contributions to the system, including those picked up by the city, shall cease and instead of being paid to the system, shall be paid to the employee. For purposes of this section, average monthly earnings and creditable service shall remain as they existed on the effective date of commencement of participation in the • DROP-piar}. The monthly retirement benefits that would have been payable, had the member elected to cease employment and receive a service retirement allowance, shall be credited to a deferred retirement option account. The deferred retirement option plan account shall, unless a member elects a self-directed DROP, earn interest at a rate set quarterly by the board of trustees. Such interest shall be equal to the system's net rate of investment return for the year and shall be credited to each individual account balance in the account on a quarterly basis. Effective January 1, 1999, the r1eferrer1 retirement Optinn plan—DROP account shall not be subject to any fees, charges, etc., of any kind for any purpose. If a member or DROP participant elects a self-directed DROP then the investments any returns thereon, and the fees for administering the self-directed DROP shall be in accordance with the self-directed DROP options selected by the member or DROP participant. Neither the City, the retirement system nor the system's Board of Trustees shall have any responsibility or liability for any of the options selected by the member or DROP participant. Members electing a self-directed DROP must do so by the 40 following deadlines: 2 ORDINANCE NO. 2000 -008 a. for DROP participants as of December 31, 1999, who do not owe balances for military • service credit, early normal retirement date, or DROP loans: March 1, 2000. b. for DROP participants who owe balances for military service credit, early normal retirement date or DROP loans: 30 days after payment of the balances due. C. for new DROP participants: 30 days after DROP effective date as established above. Upon termination of employment, a participant in the program shall receive, at his or her option, a lump sum payment from the account equal to the payments to the account, plus earned interest, or an annuity based upon his or her account, or the participant may elect any other method of payment if approved by the board of trustees. The monthly benefits that were being paid into the fund during the period of participation shall begin being paid to the retiree. If a participant dies during the period of participation in the DROP, a lump sum payment equal to his or her account balance shall be paid to the participant's named • beneficiary, or, if none, to his or her estate; in addition, any survivor benefits selected by the participant shall be payable. If employment is not terminated at the end of the period specified for participation in the DROP, payments into the account shall cease and no further interest shall be earned or credited to the individual account in the fund for the duration of employment. The amount in the DROP account shall not be payable to the individual until he or she terminates employment. If an employee dies after the period of participation in the plan but is still an employee, a lump sum payment equal to his or her account balance shall be paid to the employee's named beneficiary or, if none, to his or her estate, in addition, any survivor benefits selected by the participant shall be payable. A member will no longer be required to make contributions to the plan, or, at his option, may be permitted to make reduced contributions to the plan, and his retirement benefits will accrue to his 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 to the 3 ORDINANCE NO. 2000 -008 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 the separate fund administered by the board of trustees. The DROP plan to be created and administered by the board of trustees must be created and administered in such a way as to not increase the city's contributions to the retirement system. Section 2. That all sections or parts of sections of the Code of Ordinances, all ordinances or parts of ordinances, all charter sections or parts of sections, and all resolutions or parts of resolutions in conflict herewith, be and the same are hereby repealed to the extent of such conflict. Section 3. If any word, phrase, clause, subsection, or section of this ordinance is for any reason held unconstitutional or invalid, the invalidity thereof shall not effect the validity of any remaining portions of this ordinance. Section 4. This ordinance shall take effect on adoption. PASSED AND ADOPTED on first reading this 8th day of February, 2000. PASSED AND ADOPTED on second and final reading this 22"d day of February, 2000. M - COMMISSIONER ATTEST: ROLL CALL: MAYOR BERTINO - YES VICE-MAYOR MCELYEA- YES SHERYCCHAPMAA COMMISSIONER ETLING - YES ACTING CITY CLERK COMMISSIONER CALI - YES COMMISSIONER MIKES- YES APPROVED AS TO FOF4M AND CORRECTNESS: BY: THO S J. ANS O CITY ATTORNEY 4 ORDINANCE NO. 2000 -008 03/02/2000 1'2: 2 954-921-1403 DANIA P&FF PENSION PAGE 02 a GABRIEL, ROEDEM SMITH COMPANY Consultantt & Actuaries 301 East Las Olas Blvd. Su1te 200 Ft.Lauderdale,FL 33301 ®954.527.1616 o FAX 954-525�OO October 6, 1999 Mr. Eugene H. Jewell, Chairman Dania Police and Firefighters Retirement System 113 S. W. 1 st Street Dania, Florida 33004 Dear Gene: ® We have reviewed the proposed ordinance drafted by the Board's Attorney that would allow self- directed DROP accounts. In our opinion, enactment of this ordinance would have no actuarial impact on the System. Please contact us if there are any questions. Sincerely yours, J. Stephen Palmquist JSP/or cc: Kenneth R. Harrison. Sr. CITY OF DANIA BEACH MEMORANDUM TO: CHARLENE JOHNSON, Deputy City Clerk MICHAEL W. SMITH, City Manager(w/o attachments) FROM: THOMAS J. ANSBRO, City Attorney DATE: February 1, 2000 RE: PROPOSED "DROP" ORDINANCE AMENDMENTS FOR POLICE AND FIRE FIGHTER'S SYSTEM Attached is a copy of an Ordinance, correspondence from Mr. Harrison, the pension board attorney and a review Memorandum from Mr. Brinkley of my former law firm, with respect to the proposed Ordinance referenced above. This is now ready for City Commission adoption. Please therefore process for advertising and an upcoming Commission agenda. TJA:jal Attachments cc: Mike Brown, Deputy Fire Chief(w/o attachments) • REVISED MEMORANDUM FROM: WMB TO: TJA DATE: January 11, 2000 RE: City of Dania Beach Police & Firefighters' Retirement System Proposed Ordinance Amendment (DROP) We reviewed the proposed draft of an Ordinance forwarded to the City Attorney with correspondence from Ken Harrison dated October 4, 1999, and provided written comments to Mr. Harrison in a fax transmittal dated November 10, 1999. Subsequent to that date, I discussed those proposed changes with Mr. Harrison on December 14, 1999,and confirmed those changes in correspondence to the City manager,Mike Smith,on that date. I subsequently received a copy of correspondence to Mr.Ansbro dated December 14, 1999,with the • pages containing the proposed changes from Mr. Harrison. Mr. Harrison forwarded a copy of the complete revised Ordinance with correspondence dated December 30, 1999. No action has been taken with regard to that correspondence to date. WMB:vf Attachment SUGARMAN & SUSSKIND ' PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW Robeft A.Sugarman 2801 Ponce De Leon Boulevard Howard S.Susskind Suite 750 Noah S.Warman Coral Gables,Florida 33134 Kenneth R.Harrison,Sr. (305) 529-2801 D.Marcus Braswell,Jr. Broward 763-2566 Toll Free 1-800-329-2122 Fax(305) 447-81 15 December 30, 1999 Thomas J. Ansbro, Esq. Brinkley, McNerney, Morgan, Solomon & Tatum, LLP New River Center 200 East Las Olas Boulevard Suite 1800 Ft. Lauderdale, Florida 33301 Re: Ordinance Amendment-DROP Dear Mr. Ansbro: Enclosed please find the latest revision of the ordinance amendment concerning the deferred retirement option program in the Dania Beach Police & Fire Fighters Pension Plan. This latest update is due to the delay in bringing this ordinance amendment before the Commission and the commencement date contained therein. You will note that we have changed the start date for persons having DROP loans or military service credit from February V' to March l" of the year 2000. Additionally, we have changed the dates on passage of first and second readings to the year 2000. We appreciate your prompt execution of bringing this ordinance amendment before the Commission for adoption. Should you have any questions concerning this matter, please don't hesitate to contact me. Yours truly, NNE R. HARRISON, SR. KRH/ld Enclosure - CC' Board of Trustees RECEIVED ND JAN 0 3 2000 BRINKLEY, McNERNEY MORGAN & SOLOI,(ION NOTICE OF HEARING BEFORE CITY S U NS E N T I E L COMMISSION CITY OF DANIA BEACH, FLORIDA, P U B L I S H E D DAILY REGARDING ADOPTION • FORT LAUDERDALE, BROWARD COUNTY, FLORIDA OF THE FOLLOWING + PROPOSED ORDINANCE: 30CA RATON, PALM BEACH COUNTY, FLORIDA that the City HEREBY GIVEN Commission of by I A M I, D A D E COUNTY, FLORIDA the City of Dania Beach, Florida, on February 22, 2000,at 7:30 PM or as soon thereafter as the matter STATE OF FLORIDA may be heard, will conduct COUNTY Of BROWAi2D ALi++ BEACH/DADE Commlissonic rlroom in tof he the 3EFO HE — IGNED AUTHORITY PERSONALLY APPEARED Dania Beach City Hall, le- West Dania Beach Boule- vard, Dania Beach, Florida to consider the proposed . . . . . . . . . . . . .. WHO ON OATH SAYS THAT adoption of the following Ordinance entitled: H SHE IS A DULY AUTHOR ZED REPRESENTATIVE OF THE AN ORDINANCE OF THE LASSIFiED DEPART�,E�iT OF THE SUAi�SENTINEL, DAILY CITY OF DANIA BEACH, FLORIDA, AMENDING THE NEWSPAPER PU3LIaHED IN 3ROWARD/PALS BEACH/DADc COLNvTY, CODE OF ORDINANCES c RELATING REFIGHTERS RE- TIREMENT•SYSTEM; PRO- VIDING THAT THE DE- FERRED RETIREMENT N O TI C_E OPTION PLAN (DROP) SHALL INCLUDE A PAR- TICIPANT SELF-DIRECTED INDIVIDAL TIN THEMATTER OF PROVIDING THATOUNT;THE BOARD OF TRUSTEES SHALL DESIGNATEAN IN- VESTMENTTO FIREFIGHTERS NDIVDUAL YDSER AIDMINS-- TER THESE ACCOUNTS; _ PROVIDING FOR A SAV- IN THE CIRCUIT COURT, WAS PUBLISHED IN SAID NEWSPAPER IN INGS CLAUSE; PROVIDING FOR A REPEALER; AND THE ISSUES Of PROVIDING FOR AN EF- C 1 1021111 1 X 27020280 FECTIVE DATE. A copy of this proposed Or- dinance is on file in the of- fice of Administrative Ser- AFFIANT FURTHER SAYS THAT THE SAID SUN—SENTINEL IS A vices, City Hall, 100 West Dania Beach Boulevard, NEWSPAPER PU9LISHED :,N SAID BROWARD/PALMM EEACH/DADE Dania Beach, Florida, and ®COU:t°NTY, FLORIDA/ AND THAT THE SAID NEWSPAPER HAS HERETOFORE may be inspected by the public during normal work- DEENr CONTiN+iUOUISLY PUELISHED IN SAID ?ROWARD/PALM EEACH/.FADE Ing hours. COUNTY, FLORIOA, EACH DAY, AND HAS BEEN ENTERED AS SECOND Interested parties may a pear at the aforesaid meet- CLASS NATTER AT THE POST OFFICE IN FORT LAUDERDALE, IN SAID ng and be heard with re- spect to the proposed. Any ROWARD COUNTY, FLORIDA., FOR A PERIOD OF ONE YEAR NEXT person who decides to ap- peal any decision made by PRECEDING THE FIRST PUBLICATION OF THE ATTACHED CCPY OF the City Commission with res^ side ed at thiect to s hearing matter cwill con- ADVERTISEMENT; AND AFFIANT FURTHER SAYS THAT HE/SHE HAS need a record of the pro- IN 3.THER PAID NOR PROMISED ANY PERSONo FIRM OR CORPORATICN ceedingsandforsuchpur - ANY DISCOUNT, REBATE, COMMISSION CR REFUND FOR THE PURPCSE tth tea verbatim recordure of the proceedings is made, CF :;ECURI NG THIS ADVERTISEMENT FOR PUBLICATION IN SAID which record includes the testimony and evidence NEWSPAPER. upon which the appeal is to be based. In accordance with the American with Disabilities Act, persons needing assis- m . . . . . . . . . . . . . . . . . . . . . • • • • • • • tance to participate in any I C N AT U R E OF A F F I A NT) of the proceedings should contact Sheryl Chapman, Acting City Clerk, 100 West Dania Beach Boulevard, SWORN TO A€d D U 3 S C R I P.E D B E F O R E r I E Dania Beach,Florida (954) 924-3630 at leastast 72 72 THIS 11 DAY OF F L 3 R U A R Y hours prior to the meeting. /s/ Charlene Johnson Q m D. 2000 / Deputy City Clerk February 11, 2000 Vyd CSZG�3t+T .c""Ldr NdOTARMaLpm IC) •r '. i%'IY COAMISS01 N CC638935 EXPIRES July 20,2001 90111)FD THRLI 1RnY FAIN INSURANCE,INC. a m . . a . . . a a . . • . . a ( NJAMEmOFaNOTARY.TYPED, � PRI NIT GD OR STAMPED) F—ERJOPNALLY KNOWN . . . . . . . . . . . . . . . . . . . . OR PRODUCED IDENdTTFIC4T10,N . . . . . . . . . . . . . . . . .