HomeMy Public PortalAbout2018-05 Amending the Village Code by amending Chapter 23 RetirementORDINANCE NO. 2018-5
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE
VILLAGE OF KEY BISCAYNE, FLORIDA ("VILLAGE"),
AMENDING THE VILLAGE CODE BY AMENDING
CHAPTER 23 "RETIREMENT," SECTION 23-31
"DEFINITIONS," SECTION 23-35 "CONTRIBUTIONS,"
AND SECTION 23-36 "BENEFIT AMOUNTS AND
ELIGIBILITY", TO INCREASE THE BENEFIT
MULTIPLIER TO 3%, PROVIDE FOR THE PURCHASE OF
PAST SERVICE CREDIT, PROVIDE AN ALTERNATIVE
80% BENEFIT CAP, INCREASE THE MAXIMUM VILLAGE
CONTRIBUTION RATE TO 20% OF COVERED PAYROLL,
AND PROVIDE A MINIMUM FUNDED RATIO OF 80%;
PROVIDING FOR SEVERABILITY; PROVIDING FOR
CONFLICTS; PROVIDING FOR INCLUSION IN THE
CODE; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Village of Key Biscayne (the "Village") has a Police Officers and
Firefighters Retirement Plan (the "Retirement Plan") for sworn law enforcement personnel and
certified firefighters employed in the Village's Police and Fire Departments; and
WHEREAS, the Village has ratified collective bargaining agreements with the Key
Biscayne Professional Firefighters Association, Local 3638, and Key Biscayne Police Officers
Association, Local 6023, for the term of October 1, 2017 through September 30, 2020 ("CBAs");
and
WHEREAS, the CBAs contain changes to the Retirement Plan; and
WHEREAS, to implement the Retirement Plan changes it is necessary to adopt an
ordinance amending the Retirement Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF KEY BISCAYNE, FLORIDA, AS FOLLOWS:'
Words in strikeout type are deletions from existing text and words in underline type are additions.
Section 1. Recitals. The foregoing whereas clauses are true and correct and are
incorporated herein by this reference.
Section 2. Village Code Amended. Article II "Police Officers and Firefighters Retirement
Plan" of Chapter 23 "Retirement" of the Village of Key Biscayne Code of Ordinances is hereby
amended by amending Section 23-31 "Definitions" to read as follows:
Sec. 23-31. - Definitions.
***
Credited Service means the total number of years and fractional parts of years of service
as a Police Officer or Firefighter with Member contributions, when required, omitting
intervening years or fractional parts of years when such Police Officer or Firefighter was not
employed by the Village. No credit shall be permitted for service prior to August 1, 1993. The
period of any absence of 31 days or more will be excluded from a Member's Credited Service
unless he receives regular compensation from the Village during such absence and except as
otherwise provided below. Any absence of 30 days or less will be included.
A Member may voluntarily leave his contribution in the Fund for a period of five years
after leaving the employ of the Village pending the possibility of being reemployed as a Police
Officer or Firefighter without losing credit for the time that he was a Member of the System. If
the Member who left the employ of the Village should not be reemployed as a Police Officer
or Firefighter within five years, then the Accumulated Contributions will be returned upon his
written request.
The years or fractional parts of years that a Member serves in the military service of the
Armed Forces of the United States or the United States Merchant Marine, voluntarily or
involuntarily, for the purpose of going on active duty, shall be added to his years of Credited
Service for all purposes, including vesting, pursuant to conditions that are required or
permitted under state and federal law, as amended from time to time, provided that the Police
Officer or Firefighter must return to his employment as a Police Officer or Firefighter within
one year from the date of his military discharge or release from active service under honorable
conditions and must make a payment to the System in the amount that he or she would have
contributed had he or she not entered the military. This section is intended to meet or exceed
the minimum requirements of the Uniformed Services Employment and Reemployment Rights
Act (USERRA), (P.L. 103-353). To the extent that this section does not meet the minimum
standards of USERRA, as it may be amended from time to time, the minimum standards shall
apply.
Members may purchase Credited Service for service in the United States Armed Forces or
service as a Florida certified firefighter or law enforcement officer prior to employment with
the Village. The total amount of such service purchased, when combined with the purchase of
the additional benefit multiplier provided in section 23-36(e), may not exceed five years. For
the purpose of purchasing this past service credit, a member may use either the value of his/her
annual leave (less required withholding taxes) valued in accordance with the Village's leave
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payoff policy or an applicable collective bargaining agreement; a tax -qualified transfer of
funds from the member's 457 Deferred Compensation Plan; cash payment; or any combination
of the foregoing. A member must pay the full actuarial cost of the Credited Service purchased,
plus the full cost of actuarial or other professional services required.
***
Section 3. Village Code Amended. Article II "Police Officers and Firefighters Retirement
Plan" of Chapter 23 "Retirement" of the Village of Key Biscayne Code of Ordinances is hereby
amended by amending Section 23-35 "Contributions" to read as follows:
Sec. 23-35. - Contributions.
(a) Member contributions.
(1) Amount. Effective October 1, 2000, each Member of the System shall be required to make
regular contributions to the Fund in the amount of 10.5 percent of the Member's Salary. Member
contributions withheld by the Village on behalf of the Member shall be deposited with the
Board at least monthly. The contributions made by each Member to the Fund shall be
designated as employer contributions pursuant to § 414(h) of the Code. Such designation is
contingent upon the contributions being excluded from the Members' gross income for Federal
Income Tax purposes. For all other purposes of the System, such contributions shall be
considered to be Member contributions. Netwithsfi Vie- forege f ective—ApFil-14;
2015, the contribution for Police Officer Members shall be increased by 21.73 percent of each
Police Officer Member's Salary (equal to an estimated total increase of $504,093.00 for all
contributing Police Officer Members). Also effective April 14, 2011, and immediately
following the increase in the contribution rate for Police Officer Members provided in the
594,89.3-00 from the Accumulated
Excess Chapter 185 Premium Tax Reserve to fund the reduction in contribution for Police
under the Plan for Police Officer Members. Effective June 26, 2018March 11, 2011 for
Firefighter Members and August 26, 2011 for Police Officer Members, the Village's annual
contribution into both the Firefighter Members' portion of the Fund and the Police Officer
Members' portion of the Fund shall not exceed 201.4 percent of the System's covered payroll for
the respective Members of such Fund using the definition of Salary that is applicable at the time
of said calculation (the "Village's Cap"). As such, in addition to making the regular contribution
to the Fund in the amount of 10.5 percent of their respective Salary, the respective Members
shall be responsible for contributing to the Fund any amount over the Village's Cap of 204
percent of the System's covered payroll for the respective Members of the Fund in order to meet
the Annual Required Contribution for the applicable Fire or Police portion of the Fund.
(2) Method. Such contributions shall be made by payroll deduction.
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(b) State contributions. Any monies received or receivable by reason of laws of the State of Florida,
for the express purpose of funding and paying for retirement benefits for Police Officer or
Firefighters of the Village shall be deposited in the Fund comprising part of this System
immediately and under no circumstances more than five days after receipt by the Village. By
mutual agreement of the Village and the unions representing Village Police Officers and
Firefighters, all premium tax revenues received pursuant to Chapters 175 and 185, Florida Statutes
shall be used to reduce the Village's contributions to the Plan. Any „ o m tax e ed
the Plan after March 11, 2011 pursuant to F.S. ch. 175 shall be used by the Plan to reduce the
August 26, 2014 shall be used by the Plan to reduce the Village's pension contributions to the Plan,
vision.
(c) Village contributions.
(1) So long as this System is in effect, the Village shall make contributions to the Fund in an
amount equal to the difference in each year between the total aggregate Member contributions
for the year, plus State contributions for such year that are not contributed to the Share Plan, and
the total cost for the year, as shown by the most recent actuarial valuation of the System. The
total cost for any year shall be defined as the total normal cost plus the additional amount
sufficient to amortize the unfunded past service liability in accordance with the requirements of
F.S. ch. 112. Notwithstanding the foregoing, effective March 11, 2014 for the Firefighter
.rtie e the Pla and eff ctive August 26 201 i1 fe the Police O flee_ portio.. eft a Plan' the
Village's annual contribution into each respective portion of the Fund shall not exceed the
Village's Cap as provided in subsection (a) above.
(2) Effective June 26, 2018 the minimum funded ratio (actuarial value of assets divided by the
actuarial accrued liability) for the Police and Fire portions of the Fund shall be 80 percent based
an assumed rate of return of seven and one-half percent. In the event the funded ratio for the
Police or Fire portion of the Fund should fall below 80 percent based on an assumed rate of
return of seven and one-half percent
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Cap, the System's multiplier for the Members of that portion of the Plan shall be automatically
reduced for prospective service of the Members of that portion of the Plan to the extent
necessary to keep such Members' portion of the Fund's funded ratio at 80 percentunfanded
_liability under he respecti v e Fire o,. Police T r A r C p. Alternatively, the Members of the portion
.,ant. cc�z��;a
of the Plan in which the funded ratio has fallen below 80 percent here t e T T A T Cap t,as bee„
4
exceeded shall have the option of increasing their Member contribution paying off any
unfunded liability in excess of the respective UAL Cap or of making other design changes to
that portion of the System in accordance with State law so that the funded ratio is at least 80
percentunfunded-liabilit hat-peftieti-ef-the-Plan-Elees-net-exeeed4he-applieable-14241,-Cap.
Should the Firefighter Members and/or Police Officer Members of the Plan wish to exercise
either such alternative, the applicable unions representing the members of such groups must
provide the Village with written notification prior to August 1 St preceding the fiscal year
following the date onin which the funded ratio for the Police or Fire portion of the Fund falls
below 80 percent based on an assumed rate of return of seven and one-half percentrespectivc
* * *
Section 3. Village Code Amended. Article II "Police Officers and Firefighters Retirement
Plan" of Chapter 23 "Retirement" of the Village of Key Biscayne Code of Ordinances is hereby
amended by amending Section 23-36 "Benefit amounts and eligibility" to read as follows:
Sec. 23-36. - Benefit amounts and eligibility.
* * *
(b) Normal retirement benefit.
(1) Police Officers. A Police Officer Member retiring hereunder on or after his normal
retirement date shall receive a monthly benefit which shall commence on his retirement date
and be continued thereafter during his lifetime, ceasing upon his death, but for ten years
certain in any event. The monthly retirement benefit shall equal three percent of Average
Final Compensation for each year of Credited Service earned before August 26, 2014= and
dal two and three quarters percent of Average Final Compensation for each year of
Credited Service earned on or after August 26, 2014 and before October 1, 2017, and three
percent of Average Final Compensation for each year of Credited Service earned on or after
October 1, 2017.
(2) Firefighters. A Firefighter member retiring hereunder on or after his normal retirement
date shall receive a monthly benefit which shall commence on his retirement date and be
continued thereafter during his lifetime, ceasing upon his death, but for ten years certain in
any event. The monthly retirement benefit for each year of Credited Service earned before
March 11, 2014 shall be computed as follows:
a. Three percent of Average Final Compensation for the first 15 years of Credited
Service; and
b. Four percent of Average Final Compensation for each year of credited service in
excess of 15 years.
For all years of Credited Service earned on or after March 11, 2014 and before October 1,
2017, the monthly retirement benefit for Firefighter Members shall be two and three
5
quarters percent of Average Final Compensation, and for all years of Credited Service
earned on or after October 1, 2017, the monthly retirement benefit for Firefighter Members
shall be three percent of Average Final Compensation, regardless of the Firefighter
Members' Credited Service.
Notwithstanding anything herein to the contrary, the benefits provided in this section shall
not exceed 100 percent of a Firefighter Member's Final Average Compensation for those
Firefighter Members who retire or enter DROP prior to March 11, 2014.
Effective June 26, 2018 March 1 14 o ner Members --and eetiwAtigtist-26
2014 for Police Officer Members, the annual service retirement benefit based on the normal
annuity form (life with ten-year certain) payable for Members shall not exceed the greater
of: (a) the lesser of $90,000.00 or 90 percent of the Member's Average Final Compensation
or (b) 80 percent of the Member's Average Final Compensation (hereinafter the "Benefit
Cap"), provided, however, that under no circumstances shall a Member receive an amount
of monthly retirement annuity which is less than two percent per year of the Member's
Credited Service. The Benefit Cap will apply to the normal form of benefit. If an optional
form of benefit is selected, the Benefit Cap will be adjusted to that it is actuarially
equivalent to the normal form using the same actuarial factors as used to determine the
amount of the optional form of benefit. The Benefit Cap shall apply to all Members except
those Firefighter Members who entered the DROP before March 11, 2014 and those Police
Officer Members who entered the DROP before August 26, 2014. For those Firefighter
Members that reached the Benefit Cap prior to March 11, 2014 and for those Police Officer
Members who reached the Benefit Cap prior to August 26, 2014, their cap shall be the
amount of annual service retirement as calculated on March 10, 2014 for Firefighter
Members and August 25, 2014 for Police Officer Members and they must continue to
contribute into the Fund in the same manner as other Members.
* * *
(g) Police Share Plan. In accordance with section 185.35(6), F.S., a defined contribution plan
component ("share plan") is hereby established as part of the Plan, to be funded entirely with Ch.
185 premium tax revenues. However, the Village and the union representing Village Police Officers
have mutually agreed that no Ch. 185 premium tax revenues will be allocated to the share plan at
this time. The Village and union have further agreed that the share plan shall not be activated until
the parties mutually agree that Ch. 185 premium tax revenues will be allocated to the share plan.
Section 4. Severability. The provisions of this Ordinance are declared to be severable
and if any section, sentence, clause or phrase of this Ordinance shall for any reason be held to be
invalid or unconstitutional, such decision shall not affect the validity of the remaining sections,
sentences, clauses, and phrases of this Ordinance but they shall remain in effect, it being the
legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part.
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sentences, clauses, and phrases of this Ordinance but they shall remain in effect, it being the
legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part.
Section 5. Conflicts. All ordinances or parts of ordinances, resolutions or parts of
resolutions, in conflict herewith, are repealed to the extent of such conflict.
Section 6. Inclusion In The Code. It is the intention of the Village Council, and it is
hereby ordained that the provisions of this Ordinance shall become and be made a part of the Code
of Key Biscayne, Florida; that the sections of this Ordinance may be renumbered or relettered to
accomplish such intentions; and that the word "Ordinance" shall be changed to "Section" or other
appropriate word.
Section 7. Effective Date. That this Ordinance shall be effective immediately upon
adoption on second reading.
PASSED AND ADOPTED on first reading this 10th day of April, 2018.
PASSED AND ADOPTED on second reading this 25th day of June, 2018.
ATTEST:
J TNIFERGIGIEDINA,dCMC
VILLAGE CLERK
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
VILLAGE ATTORNEY
7
MIAMI DAILY BUSINESS REVIEW
Published Daily except Saturday. Sunday and
Legal Holidays
Miami, Miami -Dade County, Florida
STATE OF FLORIDA
COUNTY OF MIAMI-DADE:
Before the undersigned authority personally appeared
KESHA BASSUE, who on oath says that he or she is the
LEGAL CLERK, Legal Notices of the Miami Daily Business
Review f/k/a Miami Review. a daily (except Saturday,
Sunday and Legal Holidays) newspaper, published at Miami
in Miami -Dade County. Florida; that the attached copy of
advertisement, being a Legal Advertisement of Notice in the
matter of
VILLAGE OF KEY BISCAYNE - ORDINANCE - JUNE 25, 2018
in the XXXX Court.
was published in said newspaper in the issues of
06/14/2018
Affiant further says that the said Miami Daily Business
Review is a newspaper published at Miami. in said Miami -Dad
e County, Florida and that the said newspaper has
heretofore been continuously published in said Miami -Dade
County, Florida each day (except Saturday, Sunday and
Legal Holidays) and has been entered as second class mail
matter at the post office in Miami in said Miami -Dade County,
Florida, for a period of one year next preceding the first
publication of the attached copy of advertisement; and affiant
further says that he or she has neither paid nor promised any
person, firm or corporation any discount, rebate, commission
or refund for the purpose of securing this advertisement for
publication in the said newspaper.
EAL)
Sworn to and subscribed before me this
14 da90t JUNE .D 2018
KESHA BASSUE personally known to me
BARBARA THOMAS
, • P Commission # GG 121171
:y. Expires November 2, 2021
y .2;;;; ... Banded itvuTroy Fain Insurance 80J 3tS-7410
VILLAGE OF KEY BISCAYNE
OFFICE OF THE VILLAGE CLERK
PUBLIC NOTICE
Notice is hereby given that the following ordinance will be considered on
Second Reading by the Village Council of the Village of Key Biscayne at a
meeting to be held on Monday, June 25. 2018 at 6:00 p.m., in the Council
Chamber, located at 560 Crandon Boulevard, Key Biscayne, Florida:
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
KEY BISCAYNE, FLORIDA ("VILLAGE"), AMENDING THE VILLAGE
CODE BY AMENDING CHAPTER 23 "RETIREMENT," SECTION 23-31
"DEFINITIONS," SECTION 23-35 "CONTRIBUTIONS," AND SECTION
23-36 "BENEFIT AMOUNTS AND ELIGIBILITY". TO INCREASE THE
BENEFIT MULTIPLIER TO 3%, PROVIDE FOR THE PURCHASE OF
PAST SERVICE CREDIT, PROVIDE AN ALTERNATIVE 80% BENEFIT
CAP, INCREASE THE MAXIMUM VILLAGE CONTRIBUTION RATE TO
20% OF COVERED PAYROLL, AND PROVIDE A MINIMUM FUNDED
RATIO OF 80%; PROVIDING FOR SEVERABILITY; PROVIDING FOR
CONFUCTS; PROVIDING FOR INCLUSION IN THE CODE; AND PROVIDING
FOR AN EFFECTIVE DATE.
The proposed Ordinance may be inspected by the public at the Office of
the Village Clerk. Interested parties may appear at the Public Hearing and
be heard with respect to the proposed Ordinances. Any person wishing to
address the Village Council on any item at this Public Hearing is asked to
register with the Village Clerk prior to that item being heard.
In accordance with the Americans With Disabilities Act of 1990, all persons
who are disabled and who need special accommodations to participate in
this proceeding because of that disability should contact the Office of the
Village Clerk, 88 West McIntyre Street, Suite 220, Key Biscayne. Florida
33149, telephone number (305) 365-5506, not later than two business days
prior to such proceeding.
Should any person desire to appeal any decision of the Village Council
with respect to any matter to be considered at this meeting, that person
shall insure that a verbatim record of the proceedings is made including all
testimony and evidence upon which any appeal may be based (F.S. 286.0105).
Comments of any interested party relative to this matter may be submitted
in writing and or presented in person at the public hearing.
6/14
Jennifer Medina, CMC
Village Clerk
18-84/0000325265M