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HomeMy WebLinkAboutO-2004-021 Police Firefighters' Retirement SystemORDINANCE NO. 2004-021 AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING THE CITY CODE OF ORDINANCES RELATING TO THE POLICE AND FIREFIGHTERS' RETIREMENT SYSTEM, TO PROVIDE FOR COMPLIANCE WITH CHAPTER 2004-21, LAWS OF FLORIDA, WHICH SPECIFIES THAT RETIREES MAY AUTHORIZE DIRECT THIRD PARTY PAYMENTS AS A DEDUCTION FROM NET BENEFITS FOR SPECIFIC PURPOSES; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the 2004 Florida Legislature enacted Chapter 2004-21, Laws of Florida, which authorizes the trustees of the City's Police and Firefighters' Retirement System, when authorized by a retiree or retiree's dependent, to make certain deductions from monthly retirement payments; and WHEREAS, an amendment to the City Code is necessary to permit such deductions; and WHEREAS, the trustees of the City of Dania Beach Police & Firefighters' Retirement System have approved such an amendment as being in the best interests of the participants and beneficiaries since they believe it will improve the administration of the plan; and WHEREAS, an actuarial impact statement is not necessary since this amendment is not a change in plan benefits; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AS FOLLOWS: Section 1. That Section 18-49(3), entitled "Nonassignability", of the City Code of Ordinances is amended to read as follows: 0 1 ORDINANCE NO. 2004-021 (3) NONASSIGNABILITY. No benefit provided for herein shall be assignable or subject to garnishment for debt or other legal process except when (i) benefit recipients #�at authorize payment of the premium for health insurance and hospitalization insurance coverage which is made available by the city to said beneficiaries pursuant to Section 112.0801 of the Florida Statutes or other applicable laws; and (ii) when -the recipient o any monthly benefit authorizes the board of trustees to withhold from the monthly benefit those funds necessary to pay for the benefits being received through the city or BSO, to paV the certified bargaining agent of the citV or BSO, to make any payments for child support or alimony or for all of the foregoing. Section 2. That all ordinances or parts of ordinances and all resolutions or parts of resolutions in conflict with this ordinance are repealed to the extent of such conflict. Section 3. 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 4. That this ordinance shall be in force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on first reading on July 27, 2004. PASSED AND ADOPTED on second reading on August 10, 2004. ATTEST: MAYOR — COMMISSIONER -LOUISE STILSON _CI_fY CLERK APPROVED AS TO FORM AND CORREJ%S- BY: A THOMAS J. ANSBRO CITY ATTORNEY 0 ROLL CALL: COMMISSIONER ANTON - YES COMMISSIONER CHUNN - YES COMMISSIONER FLURY - YES VICE -MAYOR MIKES - YES MAYOR MCELYEA - YES 2 ORDINANCE NO. 2004-021 0 0 August 20, 2004 Robert A. Sugarman Esq. Sugarman & Susskind Attorneys at Law 2801 Ponce De Leon Boulevard Suite 750 Coral Gables, FL 33134 MAZ & r M16'. RE: CITY OF DANIA BEACH POLICE & FIREFIGHTERS' RETIREMENT SYSTEM PENSION ORDINANCE Dear Mr. Sugarman: Please refer to your letter dated June 17, 2004 addressed to City Attorney Tom Ansbro. Per your request, find enclosed herewith a copy of Ordinance No. 2004-021 adopted by the Dania Beach City Commission at their meeting of August 10, 2004. A copy of this Ordinance was also sent to the Pension Fund Office, c/o Sonia Brown, Administrator. Encs Sincerely, Miriam Nasser Deputy City Clerk "Broward's First City" 100 West Dania Beach Boulevard Dania Beach, Florida 33004 Phone: (954) 924-3600 www. ci. clan- ia- beach. fl. us 0 0 CITY OF DANIA BEACH TO: Mayor and City Commission CC: Ivan Pato, City Manager Patty Varney, Finance Director Louise Stilson, City Clerk Robert Sugarman (ordinance only) FROM: Tom Ansbro, City Attorney DATE: June 24, 2004 RE: Proposed Amendment to City Police & Firefighters' Retirement System Pension Ordinance Attached please find a proposed ordinance relating to the Police and Firefighters' Retirement System. As a result of recent amendments to state laws, the ordinance will authorize recipients of benefits to allow for payment deductions from net benefits for specific purposes (e.g. to pay for other benefits, pay union dues, child support, alimony). Also attached are June I and June 17 letters from Sugarman & Susskind, the pension board attorneys, explaining the City's new responsibilities effective April 27, 2004 and a copy of the new state law to which the letters refer. 566.028 TJA:slw Attachments 0 "1 NOTICE OF HEARING BEFORE CITY COMMISSION CITY OF DANIA BEACH, FLORIDA, REGARDING ADOPTION OF THE FOLLOWING PROPOSED ORDINANCE: NOTICE IS HEREBY GIVEN that the City Commission of the City of Dania Beach, Florida, on August 10, 2004, at 7:00 p.m. or as soon thereafter as the matter may be heard, will conduct a public hearing in the City Commission Chambers of the Dania Beach City Hall, 100 West Dania Beach Boulevard, Dania Beach, Florida to consider the proposed adoption of the following Ordinance entitled: AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING THE CITY CODE OF ORDINANCES RELATING TO THE POLICE AND FIREFIGHTERS' RETIREMENT SYSTEM, TO PROVIDE FOR COMPLIANCE WITH CHAPTER 2004-21, LAWS OF FLORIDA, WHICH SPECIFIES THAT RETIREES MAY AUTHORIZE DIRECT THIRD PARTY PAYMENTS AS A DEDUCTION FROM NET BENEFITS FOR SPECIFIC PURPOSES; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. A copy of the proposed Ordinance is 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 working 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 by the City Commission with respect to any matter considered at this hearing will need a record of the proceedings 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 be based. In accordance with the American with Disabilities Act, persons needing assistance to participate in any of the proceedings should contact Louise Stilson, City Clerk, 100 West Dania Beach Boulevard, Dania Beach, Florida 33004, (954) 924-3622 at least 48 hours prior to the meeting. Run in Sun Sentinel: July 30, 2004 0 /s/ Louise Stilson City Clerk SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW Robert A. Sugarman 0 Howard S. Susskind David E. Robinson Kenneth R. Harrison, Sr. D. Marcus Braswell, Jr. +Board Certified Labor & Employment Lawyer June 17, 2004 Tom Ansbro, City Attorney City of Dania Beach, Florida 100 West Dania Beach Boulevard Dania Beach, Florida 3' )004 Re: City ofDania Beach Police & Firefighters'Retirement System Chapter 2004-12, Laivs of E lorida Dear City Attorney Ansbro: 2801 Ponce DeLeon Boulevard Suite 750 Coral Gables, Florida 33134 (305) 529-2801 Broward 327-2878 Tall Free 1-800-329-2122 Facsimile (305) 447-8115 On June 1, 2004, 1 wrote to you concerning the changes in the pension ordinance which will be necessitated by the adoption of Chapter 2004-2 1, Laws of Florida. We have prepared the ordinance making the required changes. At their regular meeting of June 7, 2004, the trustees of the Retirement System reviewed and approved the ordinance and reconunended it for adoption by the City Commission. We request that you arrange for this to be placed on the City Commission agenda. Once the ordinance is adopted, please ask the clerk to send a copy of the signed ordinance to the 4-1 Pension Fund office, c/o Sonia Brown, Administrator, and to us. 0 Tom Ansbro, City Attorney City of Dania Beach, Florida June 17, 2004 Page 2 Should it be necessary for a representative of the pension board or our firm to attend the meeting at which the City Commission will consider this ordinance, please let us know well in advance. We do not expect that it will be necessary since the ordinance imposes no additional cost on the city, BSO, or the members. Yours truly, OBERT A. SUGARMAN RAS/jd Enclosure cc: Board of Trustees G:�ONPF�PLAN�HB25IAdoption-LtCity.Attoniey 0 0 SUGARMAN & SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW Robert A. Sugarman Howard S. Susskind David E. Robinson Kenneth R. Harrison, Sr. D. Marcus Braswell, Jr. *Board Certified Labor & Employment Lawyer June 1, 2004 Tom Ansbro, City Attorney City of Dania Beach, Florida 100 West Dania Beach Boulevard Dania Beach, Florida 33004 Re: City of Dania Beach Police & Firefighlers'Retirement System Chapter 2004-12, Lcr4,,v of Florida Dear City Attorney Ansbro.- 2801 Ponce De Leon Boulevard Suite 750 Coral Gables, Florida 33134 (305) 529-2801 Broward 327-2878 Toll Free 1-800-329-2122 Facsimile l305) 447-8115 On April 27, 2004, Chapter 2004-21 of the Laws of Florida, enacted by the 2004 Florida Legislature, took effect. As attorneys for the Retirement System, we are writing to you to inform you of the new responsibilities it places upon your client. As you know, the Retirement System receives significant state funding each year based upon an excise tax imposed by the city upon insurers that insure property located within our city. The tax is imposed upon the insurance companies, not the policyholders. The amount received by the Retirement System depends upon each insurance company's determination of the location of each property which it insures. Before Chapter 2004-21, the insurance company depended upon its sales agents to determine and report where each insured property was located. Because exact city boundaries may not be known to the insurance agents or property owners and mailing addresses may not correctly reflect whether a property is within the city's boundaries, errors could have occurred. Chapter 2004-21 establishes a new method for insurance companies to use in determining the location of each insured property- The new law requires the Florida Department of Revenue to create an electronic database that identifies the local taxing junisdiction for each street address and address range in the state. The new law provides an incentive to the insurance companies to utilize this database to determ�ine the location of their insured properties. Chapter 2004-21 places three new responsibilities upon the city- L E 0 0 Tom Ansbro, City Attorney City of Dania Beach, Florida June 1, 2004 Pa--e LI The city must furnish to the information needed to create the feasible." Florida Department of Revenue (DOR) "all electronic database as soon as practical and L) By July I" of each year, the city must inform the DOR of information needed to update the database, particularly annexalion.y and othei- changes ill jurisdictional houndaries. Any added property should result in higher annual payments received from the state. L3 The city should review each year's updated database within 30 days after the DOR posts it on its website, which the DOR must do by September I` of each year, starting in 2005. Any corrections should be submitted to the DOR to be reflected in the final database which must be posted by DOR by November I" of each year, starting in 2005. Your client can expect to receive more details on the database and the city's reporting requirements from the DOR. Should you or your client have any questions concerning the premium tax database, please contact the DOR Local Government Unit at 850-921-918 1. The new law also clarifies the "extra benefits" issue and permits the Retirement System, when authorized by a retiree, to make deductions from the retiree's pension to make payments to the city or its insurer for retiree health insurance, to the collective bargaining agent for retiree dues or benefits, and to an ex -spouse for alimony and child support. An amendment to the pension ordinance will be required to permit these optional deductions which we will be forwarding to you after we draft it and it is approved by the board of trustees. We have enclosed a copy of the Division of Retirement's May 5'h memorandum analyzing the new law. RAS/jd Enclosure cc: Board of Trustees Cy:`�DNPP.PL,VN\I IB25 I -1-101N-Anome,, Yours truly, ROBERT A. SUGARMAN DEPARTMENT OFMANAGEMENT The,4dmigiu'ral,me aNd 0 pemtimy,417V TY C"",n S OfF10,17da Covemmewl SER V I JEB BUSH, GOVERNOR WILLL4,1v[ S. SIMON, SECRETARY DATE: May 5, 2004 TO: All Participating Chapters 175 & 185 Cities and Districts — (Mayors, Fire District Commissioners, and Pension Board Chairmen) FROM: Patricia F. Shoemaker, Benefits Administrator, Municipal Police Officers, and Fireft-liters' Retirement Trust Funds, Division of Retirement 0 SUBJECT: Chapter 2004-21, Laws of Florida (CS/HB 251) —Relating to Chapters 175 and 185 Firefighters'& Police Officers' Pensions On April 27, 2004, Governor Jeb Bush signed into law CS/HB 251, amending, Chapters 175 and 185, Florida Statutes. C, You may obtain a copy of the new law from this website: littv)./clection. dos. state. fl.iis/laA,-.,/041aws/convframe.htTnL Click on the 2004 laws, and select Chapter 2004-21. A brief analysis of the legislation is provided below. These amendments affect both "Chapter" and "Local Law" plans. We sug est that you have your plan attorney and actuary review your plan and policies/procedures to 09 determine if amendments are necessary. Sections I and 3. Provide a short title to the Chapters 175 and 185 statutes in memory of Marvin B. Clayton (See attached for a brief biographical sketch of Marvin Clayton.) Sections 2 and 4. Provide for the establishment of a premium tax database by the Department of Revenue (DOR). While most of the provisions apply to the insurance companies and DOR, cities and districts are required to submit address information to the DOR including changes in annexations, incorporations, and reorganizations and any other changes in jurisdictional boundaries, as well as changes in eligibility to participate in the premium tax distributions under Chapters 175 and 185. The information must specify an effective date and must be furnished to the DOR by July 1 of each year. The DOR will post this information for the cities and districts to review by September I of each year and any corrections must be submitted by the cities/districts within 30 days. The DOR will post the final database by November I of each year. Any disputed addresses that cannot be resolved before November 1 will remain the same as previously reported. The database will be used for reporting the calendar year 2005 premium taxes as reported by the insurance companies on March 1, 2006, The DOR is provided annual funding from the Police and Firefigliters' Premium Tax Trust Fund in an amount sufficient to pay the expenses but not to exceed $100,000, adjusted annually by the lesser of a 5% increase or the percentage of growth in the total collections. (Note: these moneys will not be deducted from the amount to be distributed to the cities/districts, but will come from. the interest earnings in the Police and Firefighters' Premium Tax Trust Fund.) Section 195.085(6), includes an additional caveat that no city/district shall receive less than the amount they received for the calendaF year 2004 due to the implementation of the database. If the total proceeds from the premium tax collected for the calendar years 2005, 2006 and 2007 are less than the amount distributed to any city/district in 2004, then each city shall receive a distribution that is proportionate to its share of the total 2004 calendar year distribution. If the total proceeds to be distributed for the current year is greater than or equal to the total amount distributed for calendar year 2004, q;4ch p4r�cjpating city shall initially be distributed a minimum amount equal to the arnourit Divisiozi ofRc6fcznent? Nuaicip2l Police OL6cers'& Fifc.6ghtcTS'Rcdrcmcnt TfustFunds OJEce May 5, 2004 Page 2 received for calendar year 2004. The remaining amount to be distributed for the current year will be distributed on a pro- i rata basis to those cities that show an increase over the amount reported for calendar year 2004, This subsection expires on January 1, 2008, so that the pro -rated distributions will occur only for the years 2005, 2006 and 2007. The calendar year 2008 and each subsequent year's distributions will not be pro -rated. This pro -rated provision is applicable only to the Chapter 185 plans and not to the Chapter 175 plans. As the DOR adopts policies and procedures with regard to the cities/districts reporting requirements, we will let you 0 0 know. We anticipate providing an "update" section regarding the implementation of Chapter 2004-21 on our website 0 ZD at and will provide a link to the DOR website. Sections 5 and 6. Amend the provisions of Sections 175.351(l) and 185.35(l), F. S. to make clear that the increase in the state premium tax moneys, over and above the amount collected for calendar year 1997, are to be used first to meet the minimums and then to be used for "extra benefits" over and above those provided to general employees and in addition to those in existence for firefighters and police officers on March 12, 1999 (the effective date of Chapter 99-1, Laws of Florida). This additional language should have no effect on your plan, as it i� consistent with the Division's enforcement of the provisions of Chapter 99-1, Laws of Florida and the Division's proposed Rule Nos. 1.026 and 2.017. Sections 7 and 8. Add a provision to Sections 175.061(7) and 185.05(6). These two new paragraphs allow a retiree (or his.beneficiary) to authorize the Bo-ard to -make certain deductions from his monthly pension check for payment of any benefits being received by the retiree (or beneficiary) from the governmental entity (For example: health insurance), and/or for benefits being received by the retiree (or beneficiary) from the cerdfied bargaining unit (For example: any kinds of insurance offered by or through the union - life, health, dental, legal defense, etc.), and/or to make any payments for child support or alimony pursuant to an income deduction order under Section 61.130 1, F. S. (Note: Pension benefits are not subject to Qualified Domestic Relation Orders (QDRO), and this new paragraph does not extend authorization for such payments.) Section 9. Provides an initial $300,000 from General Revenue Fund to the Department of Revenue to establish the database. Section 10. States that the Legislature has determined that this act fulfills an important state interest. Section 11. Provides that the act shall take effect upon becoming law. Therefore, it is effective on April 27, 2004, Cl the date the Governor signed the bill. Again, please have 3our plan attorney and actuary review your plan to determine if any amendments are necessary to your plan or to your rules with regard to the amendments to ss. 175.061(7) and 185.05(6), as well as the addition of ss. 175.1015 and 185.085. The amendments to ss. 175.351 (1) and 185.35(l), are consistent with the manner in which the Division has administered these sections and should have no effect on the manner in which your plan is currently administering the use of the increases in state premium tax moneys. We will keep you up to date on any information that we receive from the DOR. Your city and fire district officials should be receiving a notice from the DOR soon requesting contact information for purposes of obtaining address information for the premium tax database. If you have questions concerning the establishment of the premium tax database please contact the DOR Local Government Unit at 850-921-918 1. 0 Ma� 5, 2004 Page 3 If you have any questions or if our office can be of assistance please contact the NTF Office at (850) 922-0667 or e- mail us at mp foi�,frs. state. fl. us Sincerely, Patricia F. Shoemaker Benefits Administrator Mwiicipal Police Officers' and Firefighters' Retirement Funds pfs 0 May 5,2004 Page 4 -Manin-Berkeley Clayton Born November 2, 19' ) 2 Died July 20, 2001 Mr. Clayton be -an his employment with the Department of Insurance in the Municipal Police Officers' and 0 Firefighters' Pension (MPF) Office in 1963. Upon graduation from the Florida State University in 1964, he was hired full-time as an auditor in that office. He was appointed as the Administrator of the MPF Office in January 1978 where he remained until his retirement fi7om state government in July 1990. In total, he spent over 26 years serving the police officers and Firefighters of the State of Florida in the MPF Office. After his retirement from the State, he continued to be active on issues relating to police and firefighters by working with the Police Benevolent Association and then with the Florida Professional Firefighters. 0 He had a unique historical knowledge of Chapters 175 and 185 and served as an expert witness before the court and 0 legislative committees on issues relating to pensions. C, He worked diligently to improve disability and retirement benefits for police officers and firefighters and championed is major legislative amendments in 1986 and 1999 to Chapters 175 and 185. He died "in the line of duty" on July 20, 2001 at the Florida Professional Firefighters' Office. We are grateful for all of Mr. Clayton's years of service for the firefighters and police officers in the State of Florida. He was a good friend and we shall aU miss him.