AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING PART I, SUBPART B, ARTICLE IX, RELATED SPECIAL ACTS, OF THE MIAMI BEACH CITY CODE ENTITLED "PENSION SYSTEM FOR DISABILITY AND RETIREMENT OF MEMBERS OF POLICE AND FIRE DEPARTMENTS"; AMENDING SECTION 62, “DEFINITIONS”, RELATED TO ACTUARIAL ASSUMPTIONS; AMENDING SECTION 65, ENTITLED "COMPUTATION OF CREDITABLE SERVICE; SERVICE RECORD”; AMENDING SECTION 76, “BOARD OF TRUSTEES”, TO PROVIDE FOR STAGGERED THREE (3) YEAR TERMS; AMENDING SECTION 90, ENTITLED "BENEFITS FOR MEMBERS HIRED ON OR AFTER MAY 8, 2019 FOR INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 1510 (IAFF) AND ON OR AFTER JULY 31, 2019 FOR FRATERNAL ORDER OF POLICE, WILLIAM NICHOLS LODGE NO. 8 (FOP)”; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE.

The City of Miami Beach has the following five (5) classified employee groups that are represented by bargaining units:

·       Group I - Represented by the American Federation of State, County and Municipal Employees (AFSCME) Local 1554;

·       Group II - Represented by the Fraternal Order of Police (FOP) William Nichols Lodge No. 8;

·       Group III - Represented by the International Association of Firefighters (IAFF) Local 1510;

·       Group IV - Represented by the Communications Workers of America (CWA) Local 3178; and

·       Group V - Represented by the Government Supervisors Association of Florida (GSAF), OPEIU, Local 100

In addition, the City has one classified employee group, Group VI, comprising all other classifications in the classified service not covered by a bargaining unit. This group is commonly referred to in the City of Miami Beach as “Others”.  There is a seventh salary group comprised of at-will employees commonly referred to as Unclassified.

Employees represented by the FOP and IAFF are eligible for a defined benefit pension plan governed by Part I, Subpart B, Article IX, Related Special Acts, of The Miami Beach City Code entitled "Pension System For Disability And Retirement Of Members Of Police And Fire Departments.”

All other full time employees are eligible for a defined benefit pension plan governed by Part I, Subpart B, Article VI, Related Special Acts, of The Miami Beach City Code entitled “Pension and Retirement System for Officers and Employees Generally.”

On May 21, 2020, the Fire and Police Pension Board voted to change the plan's definition of actuarial equivalence by adopting the recommended mortality tables and long-term interest rate.

On August 18, 2022, the Fire and Police Pension Board voted to extend the elected Trustees length of term from 2 years to 3 years, and to stagger the election for each individual Fire and Police Trustee.

The Administration and the International Association of Fire fighters, Local 1510 (IAFF) entered into a Memorandum of Understanding on October 20, 2022 to amend the Fire & Police Pension Plan to allow Firefighters to receive service credit under the Fire & Police Plan for prior service under the Miami Beach Employees’ Retirement Plan (“Employees’ Retirement Plan”). The proposed ordinance would allow Firefighters, regardless of date of hire, to receive service credit under the Fire & Police Plan for prior service under the Employees’ Retirement Plan.

The Fire and Police Pension Board voted to update the plan’s actuarial assumptions for the calculation of benefits effective October 1, 2020. The changes to the mortality tables for funding and accounting were adopted as required by the State of Florida (F.S., Chapter 2015-157); for the Optional Forms of Benefits, the actuary recommends a blended mortality table and life expectancy table based on the tables which are consistent with what are used to fund the Plan; the ordinance change brings the language of the ordinance in line with these changes. The change to lower the assumption for the actuarial rate of return was adopted by the Board to be more consistent with recommendations by the State of Florida. A lower, more conservative actuarial rate of return should result in healthier plan over the long term.

The Pension Board also recommended that the terms of elected Trustees be extended from 2 years to 3 years, and to stagger the election for each individual Fire and Police Trustee. The proposed ordinance would update the plan’s definitions of actuarial assumptions to reflect the Pension Board’s action, implement the Pension Board’s recommended change in the terms of elected Board members, and provide for staggered terms of Fire and Police Trustees.

The Fire and Police Pension Office will provide an impact statement prepared by the Plan’s actuary once the ordinance has gone through the first reading. The actuarial assumptions for the benefits have already been absorbed by the plan from FYE 2020. There is no cost to the transfer of service for IAFF members as there is already built into the Plan an assumption of 0.025% of annual pensionable payroll for transfer of service under another City pension system. Finally, there is no cost to the staggered Board terms.

The Administration recommends amending Part I, Subpart B, Article IX, Related Special Acts, of The Miami Beach City Code entitled "Pension System For Disability And Retirement Of Members Of Police And Fire Departments.”

Based on the foregoing, the Administration recommends that the City Commission approve the proposed ordinance on first reading and set the ordinance for second reading on February 1, 2023.