Ordinance No. 2018-12 Amending Code Section 36-37 to Allow Officers to Purchase Credited Service (Retirement Plan) - June 12, 2018 ORDINANCE NO. 2018-12
AN ORDINANCE OF THE CITY OF AVENTURA, FLORIDA, AMENDING
CHAPTER 36 "RETIREMENT," ARTICLE II "POLICE PENSION PLAN
AND TRUST FUND," BY AMENDING SECTION 36-37 "TIME OF HIRE"
TO PROVIDE RULES ALLOWING OFFICERS HIRED BETWEEN
OCTOBER 1, 2000 AND SEPTEMBER 30, 2003 TO PURCHASE
CREDITED SERVICE UNDER THE CITY OF AVENTURA POLICE
OFFICERS' RETIREMENT PLAN FOR THE YEARS OF SERVICE THAT
THEY RENDERED TO THE CITY AS POLICE OFFICERS PRIOR TO THE
EFFECTIVE DATE OF THE RETIREMENT PLAN; PROVIDING FOR
REPEAL; PROVIDING FOR SEVERABILITY; PROVIDING FOR
INCLUSION IN THE CODE; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City of Aventura (the "City") maintains a defined benefit pension
plan for its certified police officers, which is known as the City of Aventura Police Officers'
Retirement Plan (the "Plan"), and which is codified in Chapter 36 of the City Code; and
WHEREAS, the City and the Police Benevolent Association have entered into an
agreement to permit police officers hired between October 1, 2000 and September 30,
2003, to purchase credited service under the Plan for the years of service that they
rendered to the City as police officers prior to October 1, 2003, the effective date of the
Plan; and
WHEREAS, the City intends hereby to implement said agreement by amending
the Plan accordingly;
WHEREAS, the City Commission finds that it is in the best interest of the City and
its employees to amend the Plan; and
WHEREAS, prior to Second Reading of this Ordinance, the City Commission has
received, reviewed and considered an actuarial impact statement describing the actual
impact of the amendments provided for herein.
City of Aventura Ordinance No. 2018-12
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF AVENTURA, FLORIDA':
Section 1. That each of the above-stated recitals are hereby adopted and
confirmed.
Section 2. That Chapter 36 "Retirement," Article II "Police Pension Plan and
Trust Fund," Section 36-37, "Time of hire," of the City Code of Ordinances be amended
as follows:
Sec. 36-37. - [Time of hire.]
Employees hired as a City of Aventura Police Officer prior to October
1, 2000 shall be eligible to receive credited service from the initial date of
employment as a police officer at the plan's three percent benefit accrual
rate, provided the employee transfers all funds from the City 401(a) plan
to the defined benefit plan effective October 1 , 2003. Employees hired as
a City of Aventura Police Officer prior to October 1, 2000 who elect not to
transfer all funds from the City 401(a) plan shall only receive prior credited
service at a two percent benefit accrual rate. The City shall make no further
contributions to the 401(a) plan.
Employees hired as a City of Aventura Police Officer on or after
October 1 , 2000 shall receive credited service effective October 1, 2003
and shall retain all balances to their credit in the 401(a) plan; provided,
however, that the City shall make no further contributions to the 401(a)
plan. Employees hired as a City of Aventura Police Officer on or after
October 1, 2000 shall continue to accrue vesting rights in the 401(a), but
the City shall make no additional contributions.
Any employee hired on or after October 1 , 2000 and prior to October
1, 2003, and named in the Memorandum of Understanding between the
City of Aventura and the Police Benevolent Association, dated February
26, 2018 may purchase credited service for service rendered to the City
as a police officer between October 1, 2000 and September 30, 2003 as
set forth below:
a) Said election shall be made in writing no later than August 31, 2018
on a form approved by the Board of Trustees;
' Words in strikeout type are deletions from exist text and word in underline type are additions to existing
text.
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City of Aventura Ordinance No. 2018-12
b) Subject to Paragraph (4) of Subsection (f) below, prior to the
employee's separation from service with the City for any reason,
the employee shall pay the full actuarial cost of the purchase, as
determined by the plan's actuary;
c) The employee shall pay in advance any expenses related to the
actuarial calculation, as determined by the Board of Trustees;
d) The payment shall be made by either, or a combination, of the
following means:
1) trustee to trustee transfer from an eligible retirement plan or
a 457 plan, and
2) installment payments including interest at the plan's
actuarially assumed rate of investment return pursuant to an
irrevocable payroll deduction authorization as set forth in
Subsection (f) below.
e) Any years and months of service purchased hereunder shall be treated
as credited service within the meaning of Section 36-22 of the
retirement plan.
f) Installment payments shall be subject to the following conditions:
1) The employee must execute an irrevocable payroll deduction
authorization form, specifying the amount of the bi-weekly
deductions and the duration of the authorization. The specified
amount shall be that determined by the plan's actuary to be
sufficient to pay the entire actuarial cost of the purchase within
the specified duration of the payroll deduction authorization,
which duration shall not extend beyond the earlier of:
A. Three years from the date of the employee's first
paycheck after September 30, 2018; and
B. The earliest date upon which the employee would
become eligible for normal retirement under Section 36-
26.
2) The deducted amounts shall be contributed to the retirement
plan and shall be considered employee contributions that are
"picked-up" (within the meaning of Section 414(h)(2) of the
Internal Revenue Code) by the City. The employee shall not be
entitled to any option of directly receiving cash in lieu of the
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City of Aventura Ordinance No. 2018-12
amounts subject to deduction. Picked-up contributions shall be
made from the same source as the payment of salary and
wages to the employee:
3) The amount provided in the payroll deduction authorization
shall include interest, as calculated by the plan's actuary, at the
retirement plan's actuarially assumed rate of return on
investments.
4) If, upon the date of the employee's separation from service with
the City for any reason, there remains an unpaid balance of the
actuarial cost of the purchase, then the employee shall receive
years (and fractions thereof) of service credit in accordance with
the amount of the cost paid prior to separation.
Section 3. Repeal. All sections or parts of sections of the Code of Ordinances
of the City of Aventura, all ordinances or parts of ordinances, and all resolutions or parts
of resolutions in conflict herewith, be and the same are hereby repealed to the extent of
such conflict.
Section 4. Severability. Should any section or provision of this Ordinance, or
any paragraph, sentence or word, be declared by a Court of competent jurisdiction to be
invalid, such decision shall not affect the validity of the remainder hereof, as a whole or a
part hereof, other than the part declared to be invalid.
Section 5. Inclusion in the Code. It is the intention of the City Commission of
the City of Aventura that the provisions of this Ordinance shall become and be made a
part of the Code of Ordinances of the City of Aventura and that the sections of this
Ordinance may be renumbered or relettered and the word "ordinance" may be changed
to "Chapter", "Section", "Article", or such other appropriate word or phrase, the use of
which shall accomplish the intentions herein expressed.
Section 6. Effective Date. This Ordinance shall be effective upon passage by
the City Commission on second reading.
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City of Aventura Ordinance No. 2018-12
The foregoing Ordinance was offered by Commissioner Shelley, who moved its
adoption on first reading. This motion was seconded by
Commissioner Dr. Marks, and upon being put to a vote, the vote was as follows:
Commissioner Denise Landman Yes
Commissioner Dr. Linda Marks Yes
Commissioner Marc Narotsky Yes
Commissioner Robert Shelley Yes
Commissioner Howard Weinberg Yes
Vice Mayor Gladys Mezrahi Yes
Mayor Enid Weisman Yes
The foregoing Ordinance was offered by Commissioner Weinberg who moved its
adoption on second reading. This motion was seconded by
Commissioner Landman, and upon being put to a vote, the vote was as follows:
Commissioner Denise Landman Yes
Commissioner Dr. Linda Marks Yes
Commissioner Marc Narotsky Yes
Commissioner Robert Shelley Yes
Commissioner Howard Weinberg Yes
Vice Mayor Gladys Mezrahi Yes
Mayor Enid Weisman Yes
PASSED on first reading this 1st day of May, 2018.
PASSED AND ADOPTED on second reading this 12th day of June, 2018.
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City of Aventura Ordinance No. 2018-12
ENID WEISMAN, MAYOR
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ELLISA HORVAT C
CITY CLERK
APPROVED A TO LEG L SUFFICIENCY:
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