HomeMy WebLinkAboutCity of Tamarac Ordinance O-2017-010Temp. Ord. #2360
August 29, 2017
Page 1 of 6
CITY OF TAMARAC, FLORIDA
ORDINANCE NO. 0-17-
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA; AMENDING CHAPTER 16, PENSION AND
RETIREMENT, ARTICLE III, EMPLOYEES' PENSION PLAN AND ARTICLE
IV, BENEFITS, PROVIDING FOR THE PURCHASE OF CREDITED
SERVICE FOR QUALIFYING SERVICE IN THE UNITED STATES
MILITARY; PROVIDING FOR THE PURCHASE OF PRIOR SERVICE
FOLLOWING SUBSEQUENT RE-EMPLOYMENT WITH THE CITY;
PROVIDING FOR LANGUAGE WHICH LIMITS THE SELECTION OF A
LUMP SUM BENEFIT OPTION; PROVIDING FOR A NON -SERVICE
CONNECTED DISABILITY AFTER TWO OR MORE YEARS OF SERVICE;
PROVIDING FOR A COST OF LIVING ADJUSTMENT FOR DEFERRED
RETIREMENT OPTION PLAN PARTICIPANTS; PROVIDING FOR A
SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR
CODIFICATION AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Tamarac seeks to clarify its obligation under the Uniformed
Services Employment and Reemployment Rights Act (USERRA) to recognize credited
service for employees returning from active military service and reentering the City of
Tamarac General Employees' Pension Trust Fund; and
WHEREAS, the City of Tamarac wishes to allow returning service members the
opportunity to purchase credited service for qualifying military service by pretax rollover
from other qualified retirement plans and accounts;
WHEREAS, the City of Tamarac wishes to allow former employees the option to
purchase prior service with the City upon subsequent re-employment with the City;
WHEREAS, the City of Tamarac wishes to provide the option of selecting any other
actuarially equivalent benefit, which does not have a negative financial impact to the plan;
WHEREAS, the City of Tamarac wishes to incorporate language, previously
inadvertently omitted from the ordinance, clarifying eligibility for a non -service connected
disability pension after two (2) or more years of service with the City;
CODING: Words in StF Gk threugh type are deletions from existing law;
Words in underscored type are additions
Temp. Ord. #2360
August 29, 2017
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WHEREAS, the City of Tamarac wishes to provide a Cost of Living Adjustment
(COLA) to employees in the Deferred Retired Option Program;
WHEREAS, the City of Tamarac and the Federation of Public Employees have
executed a Memorandum of Understanding (see attached, Exhibit "A") in support of the
aforementioned changes to the Pension Plan;
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 Commission has received, reviewed and considered an
actuarial impact statement describing the actual impact of the amendments provided for
herein (see attached, 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 16-199 of Chapter 16, Article III, Division 3, of the City of
Tamarac Code of Ordinances, be and is hereby amended to read as follows:
Section 16-199. — Reentry into plan.
(a) A person who has been paid a refund of accumulated contributions after
tayeff by the-G4 and subsequently is reemployed by the city and earns any
vesting credits under the pension plan may repay to the pension plan the
accumulated contributions previously received, plus interest on that
amount at the pension plan's actuarially assumed interest rate,
compounded annually, or such other amount as prescribed in section
411(c)(2)(d) of the Internal Revenue Code.
CODING: Words in type are deletions from existing law;
Words in underscored type are additions
Temp. Ord. #2360
August 29, 2017
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Section 3: That Section 16-200 of Chapter 16, Article III, Division 3, of the City of
Tamarac Code of Ordinances, be and is hereby drafted to read as follows:
Section 16-200 — Purchase of Service Credit for Military Service.
(1) An employee who enters military leave pay status directly from
employment with the City, in order to perform military service, shall be entitled
to purchase credited service for periods of military training or military active
service subiect to the following conditions:
(a) An employee may purchase less but no more than the
maximum amount of credited service in the pension plan to which he or she is
entitled to purchase under USERRA.
(b) If applicable, the employee must pay the pension plan the total
amount of participant contributions for the entire time period in which the
employee served in the military, in accordance with the provisions of
USERRA.
(c) The cost of purchasing credited service under this subsection
shall be eoual to the amount of emDlovee contributions the participant would
have paid had the employee remained continuously employed with the City.
The City shall bear all other costs connected with recognizing such
purchased credited service. The pension plan shall not assess interest for
anv such Durchase of credited service.
(d) A participant entitled to purchase credited service under this
subsection may do so in the form of a single lump sum, installment payments
as agreed to by the Board of Trustees, or by a pretax trustee -to -trustee
rollover from another qualified retirement plan or account as permitted by the
Internal Revenue Code. The full cost associated with the purchase of credited
service must be completed within an amount of time equal to three times the
length of military service, provided such amount of time shall not exceed five
years.
(f) Credited service purchased under this subsection shall be
recognized for purposes of vesting and benefit accrual as provided by the
terms of the pension plan.
Section 4: That Section 16-223(2) of Chapter 16, Article III, Division 4, of the City
of Tamarac Code of Ordinances, be and is hereby amended to read as follows:
Section 16-223. — Optional benefits.
CODING: Words in StFUGk through -type are deletions from existing law;
Words in underscored type are additions
Temp. Ord. #2360
August 29, 2017
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Optional benefits are:
(2) Any other actuarially equivalent benefit approved by the board of trustees;
provided, in the board of trustee's sole discretion, such benefit does not have a
negative financial impact or consequence to the pension plan.
Section 5: That Section 16-227(c)(1) of Chapter 16, Article III, Division 4, of the
City of Tamarac Code of Ordinances, be and is hereby amended to read as follows:
Section 16-227 — Right to disability benefits.
(c) Nonservice-connected. A nonservice-connected disability benefit shall be
payable if a participant:
With two (2) but loss khan ten (10) vesting credits has suffered a
nonservice-connected injury, illness, disease, or disability which
permanently incapacitates the participant, either mentally or
physically, from his regular and continuous duty for the city or SS9
or any other gainful full-time employment;
Section 6: That Section 16-232(c) of Chapter 16, Article III, Division 4, of the City
of Tamarac Code of Ordinances, be and is hereby amended to read as follows:
Section 16-232 — Calculation of benefit amount.
(c) Cost of living adjustment benefit. In any given year in which the pension
plan shall recognize an actuarial gain from favorable actuarial experience, the
pension plan may pay a cost of living adjustment benefit to all participants
receiving a normal retirement benefit, in an amount to be established by the
CODING: Words in struslt#roug#type are deletions from existing law;
Words in underscored type are additions
Temp. Ord. #2360
August 29, 2017
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board of trustees,
which
shall not exceed two (2) percent of the
current
retirement benefits
paid
or payable to participants receiving a
normal
retirement benefit during that specific year, and the cost of which shall not
exceed the amount of the aforesaid actuarial gain. Any such cost of living
adjustment shall also be payable to participants who are currently enrolled in
the Deferred Retirement Option Program. Any benefit paid to participants as
a cost of living adjustment benefit shall be paid to participants only during that
specific year, and may not be paid to participants as an accumulation to, or in
conjunction with any other benefits due to participants during any prior or
subsequent annual period.
Section 7 : 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 8 : All Ordinances or parts of Ordinances in conflict herewith are hereby
repealed to the extent of such conflict.
Section 9 : 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 10: This Ordinance shall become effective upon adoption and
satisfaction of each of the following three requirements set forth below having been
CODING: Words in struck -through -type are deletions from existing law;
Words in underscored type are additions
Temp. Ord. #2360
August 29, 2017
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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
(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 13 day of � ��-��- 2017.
PASSED, SECOND READING this
ATTEST:
1
PATRICIA TF_UFEL, CMC
CITY CLERK J
I HEREBY CERTIFY that
I have approved this
ORDINANCE as to form
SAMUEL S. GOREN
CITY ATTORNEY
RECORD OF COMMISSION VOTE: 1st Reading
MAYOR DRESSLER C 4
DIST 1:
COMM. BOLTON
DIST 2:
COMM. GOMEZ
.s
DIST 3:
COMM. FISHMAN
DIST 4:
VICE MAYOR PLACKO
RECORD OF COMMISSION VOTE: 2nd Reading
MAYOR DRESSLER
DIST 1: COMM. BOLTON
DIST 2: COMM. GOMEZ
DIST 3: COMM. FISHMAN
DIST 4: VICE MAYOR PLACKO
CODING: Words in type are deletions from existing law;
Words in underscored type are additions
E
EXHIBIT A
MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF TAMARAC AND THE FEDERATION OF PUBLIC EMPLOYEES
This Memorandum 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, the 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's General Employee Pension Plan ("the Plan") to incorporate language which clarifies
the City's obligation under the Uniformed Services Employment and Reemployment Rights Act
(USERRA) to recognize credited service for eligible employees returning from active military
service and reentering the Plan;
WHEREAS, the CITY and the FPE agree that it is necessary to modify the Plan to afford
participants, who left the employ of the CITY and are subsequently re -hired, with the option to
purchase prior service;
WHEREAS, the CITY and the FPE agree that it is necessary to modify the Plan to
preclude the selection of any actuarially equivalent benefit, which poses a negative financial
impact to the soundness of the Plan;
WHEREAS, the CITY and the FPE agree that it is necessary to modify the Plan to
incorporate language to clarify eligibility for a non -service connected disability pension after two
(2) or more years of service within the City;
WHEREAS, the CITY and the FPE agree that it is necessary to modify the Plan to
incorporate language to provide a Cost of Living Adjustment to employees in the Deferred
Retired Option Program; and,
WHEREAS, the CITY plans to adopt Temporary Ordinance 2360 on AUGUST 3, 2017
amending the Pension Ordinance; 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 1.
NOW THEREFORE, the parties agree as follows:
1. The foregoing whereas clauses are true and correct.
2. The CITY and the FPE agree that the language in the foregoing whereas clauses
will be incorporated in the City's Pension Ordinance, and
3. The Memorandum of Understanding shall be effective June � 2017.
4. All other terms of the Collective Bargaining Agreement expiring September 30,
2017, are binding except where expressly modified herein or hereinafter by the CITY and the
FPE.
ATTE
M 7f
WA W1
- 1 -5 1 eulel, CMC,ft� Clerk
APPROVED C3AS4�
, tAL FORM. 0 —
(fffNRA-koN.OF PUBLIC EMPLOYEES
jiq7 fiver ale, FIDE Business Representative
Date
(",-
Alan Eichenbaum, FPE Attorney
Office of the City Attorney 00\11 I hill
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EXHIBIT B
POST OFFI(I Box 888W
SOUTURN VE, t')
HUMAN IRFSOURCES ATLANTA, GEOR61A 30356-03y3
A(TUARIAL TILIPRONI RO,39ZA80
17 JUL —5 PM 1: 42 FACSIMILE P039ZA93
°—- SLRVI(IS
June 28, 2017
Trustees of the City of Tamarac Employees' Pension Fund
c/o Ms. Maria Swanson
Director of Personnel
City of Tamarac
7525 N.W. 88hAvenue
Tamarac, FL 33321-2401
Re: City of Tamarac EMployees' Pension Plan
Ladies and Gentlemen:
In response to your request, I have reviewed Temporary Ordinance No. 2360. This ordinance
makes several technical corrections and clarifications to the current plan language. Therefore.,
we have determined that the ordinance will have no actuarial impact on the plan.
If you have any questions, please do not hesitate to call me.
Sincerely,
Charles T. Carr
Consulting Actuary
OUR 0111(t IS LOCATED AT 52A JOPENA BOULEVARD, 65011 ON, G[ORGIA 30548