HomeMy WebLinkAboutCity of Tamarac Ordinance O-2015-009I
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Temp. Ord. #2322
May 19, 2015
Page 1 of 4
CITY OF TAMARAC, FLORIDA
ORDINANCE NO. 0-2015- O
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSION AND
RETIREMENT, ARTICLE III, EMPLOYEES' PENSION PLAN, PROVIDING
FOR COMPLIANCE WITH THE INTERNAL REVENUE CODE;
PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR
SEVERABILITY; PROVIDING FOR CODIFICATION AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, on January 30, 2014 an application was filed with the Internal
Revenue Service for a Favorable Determination Letter regarding the qualified status of
the Plan under Section 401(a) of the Internal Revenue Code; and
WHEREAS, on November 18, 2014, the Internal Revenue Service issued a
Favorable Determination Letter, finding that the Plan complies with all qualification
requirements; and
WHEREAS, the Favorable Determination Letter is subject to the timely adoption of
the amendments provided herein, and
WHEREAS, the trustees of the City of Tamarac General Employees' Pension Trust
Fund have requested and approved such amendments as being in the best interests of
the participants and beneficiaries as well as improving the administration of the plan, and
WHEREAS, the City has received a signed Memorandum of Understanding (MOU)
from the Federation of Public Employees (FPE) stating the Union has no objection to the
foregoing changes to the Pension Plan, attached hereto as Exhibit A; and
CODING: Words in type are deletions from existing law;
Words in underscored type are additions
Temp. Ord. #2322
May 19, 2015
Page 2 of 4
WHEREAS, the City Commission has received, reviewed and considered an
actuarial impact statement describing the actual impact of the amendments provided for
herein and attached hereto as Exhibit B.
NOW THEREFORE, BE IT ORDAINED by the City Commission of the City of
Tamarac, Florida:
Section 1: That the foregoing whereas clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of this
Ordinance upon adoption hereof.
Section 2: That Section 16-234(a) of Chapter 16, Article III, Division 4, of the
City of Tamarac Code of Ordinances, be and is hereby amended as follows:
Sec. 16-234. Internal Revenue Code Compliance.
(a) Maximum amount of retirement income.
(14) For the purpose of applying the limitations set forth in Sections
401(a)(17) and 415 of the Internal Revenue Code,
Compensation shall include any elective deferral (as defined in
Code Section 402(g)(3) of the Internal Revenue Code), and
any amount which is contributed or deferred by the employer
at the election of the Member and which is not includible in the
gross income of the Member by reason of Section 125 or 457
of the Internal Revenue Code. For limitation years beginning
on and after January 1, 2001, for the purposes of applying the
limitations described in this Subsection (a), compensation paid
or made available during such limitation years shall include
elective amounts that are not includible in the gross income of
the Member by reason of Section 132(f)(4) of the Internal
Revenue Code. For limitation years on or after July 1, 2007,
compensation shall include payments that otherwise qualify as
compensation and that are made by the later of: (a) 2 and '/
(two and one-half) months after severance from employment
with the employer, and (b) the end of the limitation year that
CODING: Words in stFUGk thmuo type are deletions from existing law;
Words in underscored type are additions
Temp. Ord. #2322
May 19, 2015
Page 3 of 4
includes the date of severance. With respect to plan years
beginning on or after December 31, 2008, compensation shall
also include differential wage payments within the meaning of
Section 3401(h)(2) of the Internal Revenue Code.
Section 3: It is the intention of the City Commission and it is hereby ordained
that the provisions of this Ordinance shall become and be made part of the Code of
Ordinances of the City of Tamarac, Florida, and that the Sections of this Ordinance may
be renumbered or relettered, and the word "Ordinance" may be changed to "Section",
"Article" or such other word or phrase in order to accomplish such intention.
Section 4: All Ordinances or parts of Ordinances in conflict herewith are hereby
repealed to the extent of such conflict.
Section 5: If any provision of this Ordinance or the application thereof to any
person or circumstances is held invalid, such invalidity shall not affect other provisions or
applications of this Ordinance that can be given affect without the invalid provision or
application, and to this end the provisions of this Ordinance are declared to be severable.
Section 6: This Ordinance shall become effective upon adoption, satisfaction of
each of the following three requirements set forth below having been achieved prior to
second reading:
(a) the City Commission received and has accepted a report
establishing the actuarial soundness of these amendments in a letter of
opinion from the Plan Actuary that the amendment has no actuarial impact,
and
CODING: Words in StFUGk throuo type are deletions from existing law;
Words in underscored type are additions
Temp. Ord. #2322
May 19, 2015
Page 4 of 4
(b) the Ordinance and impact statement have been sent to the State of
Florida Division of Retirement; and
(c) the Federation of Public Employees has accepted the changes
proposed in this ordinance in writing.
PASSED, FIRST READING this % day of '2015.
PASSED, SECOND READING this / day of ,c , 2015.
ATTEST:
-�� PATRICIA. TEUFEL, CMC
CITY CLERK
5
I HEREBY CERTIFY that
have approved this
ORDINANCE as to form
y ,/ Id, - A,,,),,
S" UEL . GbN
CITY ATTORNEY
Y DRESSLER
MAYOR
RECORD OF COMMISSION VOTE: 1st Reading
MAYOR DRESSLER cf
DIST 1: VICE MAYOR BUSHNELL �s
DIST 2: COMM. GOMEZ as
DIST 3: COMM. GLASSER LA
DIST 4: COMM. PLACKO U S
RECORD OF COMMISSION VOTE: 2nd Reading
MAYOR DRESSLER'�J
DIST 1:
VICE MAYOR BUSHNELL
DIST 2:
COMM. GOMEZ
DIST 3:
COMM. GLASSER
DIST 4:
COMM. PLACKO
CODING: Words in stFUGk t# type are deletions from existing law;
Words in underscored type are additions
1
1
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MtMPKANU2M VV UNQhK:TANU1Mg. Exlil 11 A
BEINEEN ThE CITY OE TAMARAC AND THE FEDERATION OF PU13LIC EMPLOYEES
'This Mamorandum of Understanding is- entered into between the. CITY OF TAMARAC
(the "CITY") and the FEDERATION OF PUBLIC EMPLOYEES (the'"FPE") for the purpose of
modifying an existing Collective Bargaining` Agreement between the CITY and the FPE:
WHEREAS, We CITY and the FPE have entered'. into a Collective Bargaining
Agreement, the term of which expires September 30, 2017 ("Agreement"); and
WHEREAS, the CITY and the. FPE agree that it is necessary to modify the City of
Tamarac General Employee Pension Plan ("the Plan") to incorporate language riegotWetl ;with
and agreed to by the IRS to comply with a.. Determination Latter i®sued by the IRS dated
November 18, 2014, attached hereto as Exhibit 1; and
WHEREAS, the CITY plans to adopt Ordinance 0-1.5- in June, 2015 amend.ing.the
Pension Ordinance to -comply with the IRS, - approved language, attached hereto as Exhibit 2;
and
WHEREAS, the CITY has an Actuarial Impact Statement from Southern Actuarial
Services indicating that the proposed language changes have no actuarial impact on the Plan,
attached hereto as Exhibit 3.
NOW THEREFORE, the parties: agree as follows::
The foregoing whereas clauses'are true and -correct.
2. The CITY and the FPE agree that the IRS requir6d language will be incorpotated
in the City's Pensi®n Ordinance, and
3. 'The Memorandum of Understanding shall be effective May 27, 2016.
4. All other terms of the Collective Bargaining Agreement expiring September 30,
20.17, are binding except where expressly modified herein or hereinafter by the CITY and the
FPE. �7
PUBLIC EMPLOYEES
tVfiol l C.Ce—m ch, City Manager Pi_Silvernale, FPE Business Rdpresentative
DatePtA A R,4 c'�pats
ATTEST: ; �. �p
%i
Patricia .Teufel, CMC, City Clex�c �5 °;��, Alan' Eichenbaum; FPE Attorney
APPROVED AS TO LEGAL F(A''••
Offl a of the btyA orney ;
f-
E RIT B
_= SOUTHERN
_= ACTUARIAL
SERVICES
May 21, 2015
Trustees of the City of Tamarac Employees Pension Fund
c/o Ms. Maria Swanson
Director of Personnel
City of Tamarac
7.525 N.W. 88`' Avenue
Tamarac, FL 33321-2401
Re: City of Tamarac Employees' Pension Plan
Ladies and Gentlemen:
Post OFFICE Box HOW
ATLANTA, GEORGIA 30356-0343
TELEpai HO-392-0980
IA(SIMILE RO-392.2193
In response to your request, I have reviewed Ordinance No. 0-15-TO2322. This ordinance adds
differential wage payments to the definition of compensation for purposes of Internal Revenue
Code (IRC) sections 401(a)(17) and 415 in order to preserve compliance with the requirements
of the 1RC and does not make any substantive changes. Therefore, we have determined that the
proposed ordinance will have no actuarial impact on the plan.
1f you have any questions, please do not hesitate to call me.
Sincerely,
Charles T. Carr
Consulting Actuary
OUR OffK( IS LOCATED AT 5?A 1OPENA BOULEVARD, NOS(NiON, GEORGIA 3050