ORDINANCE NO.

716- 16

AN ORDINANCE OF THE MIAMI SHORES VILLAGE COUNCIL AMENDING CHAPTER

18, ARTICLE III GENERAL EMPLOYEES PENSION PLAN, OF THE VILLAGE CODE OF

ORDINANCES TO COMPLY WITH INTERNAL REVENUE SERVICE RECOMMENDATIONS,

PROVIDING FOR CONFLICTS, PROVIDING FOR SEVERABILITY, AND PROVIDING FOR
AN EFFECTIVE DATE.

WHEREAS, The Village has been notified that subsequent to a routine review by the Internal
Revenue Service( IRS) of the General Employees' Pension Plan, the IRS is recommending that the Village
Council consider certain amendments to the Plan; and,

WHEREAS, The General Employees' Pension Board voted to approve the proposed additional

language regarding the net investment return calculation for the DROP as drafted by Special Counsel,
Holland & Knight; and,

WHEREAS, Holland & Knight have made additional recommendations for language amendments

and correction of scriveners' errors; and,

WHEREAS, It is in the best interest of the Village to amend Chapter 18, Article III of the Code of
Ordinances as recommended;

NOW, THEREFORE, BE IT ORDAINED BY THE Miami Shores Village Council that:

Section 1. Sec. 18- 38 Definitions is hereby amended to read as follows:

Sec. 18- 38 Definitions

Actuarial equivalence or equivalent means a benefit( or amount of equal value), based upon the

1983 group annuity mortality table with a blending of 75 percent male rates and 25 percent female
rates and an interest rate of seven percent per year. In the case of a disability retirement, the foregoing
mortality rates, set ahead five years, shall be used.

Regular interest means the rate of interest adopted by the board from time to time in
accordance with recommendations of the actuary for purposes of actuarial equivalence.

The remaining definitions contained in Sec. 18- 38 shall remain as previously enacted.
Section 2. Sec. 18-46 ( e) Service retirement annuity—Lump-sum payments. is hereby amended to
read as follows:

Notwithstanding anything herein to the contrary, upon written request from the member, the
pension board in its discretion, may make a lump-sum payment to a member or a member' s beneficiary
in the event that the monthly benefit amount is less than$ 100.00 or the total commuted value of the
remaining monthly income payments to be paid do not exceed$ 5, 000.00. Any such payment by the
pension board to any person pursuant to this subsection shall operate as a complete discharge of all
obligations under the plan with regard to such member and shall not be subject to review by anyone,
but shall be final, binding and conclusive on all persons.

Section 3. Sec. 18-49 Contributions by members is hereby amended to read as follows:

Each village employee who is a member of the plan shall contribute six percent of compensation
to the plan. This contribution shall be made in the form of a deduction from compensation and shall be
made notwithstanding that the compensation paid to such employee shall be reduced below the
minimum otherwise prescribed by law. Every employee who is a member of the plan shall be deemed
to consent and agree to deductions made from his compensation and provided for in the plan.

Employee contributions shall be designated as employer contributions as defined by section 414( h)( 2) of
the Internal Revenue Code contingent upon such contribution being excluded from such member' s gross
income for federal income tax purposes. For all other purposes of the plan, contributions shall be
considered to be member contributions. No employee shall have the option of choosing to receive the
contributed amounts directly instead of having them paid by the village to the plan. Member
contributions withheld by the village on behalf of a member shall be deposited with the plan
immediately after each pay period.

Section 4. Sec. 18- 58( a) Plan termination is hereby amended to read as follows:

a) Upon completion or partial termination of the plan, or a complete discontinuance of

contributions to the plan, each affected member' s accrued benefit shall become 100 percent
vested to the extent funded.

Section S. Sec. 18- 61 ( b) Direct transfers of eligible rollover distributions is hereby amended to read
as follows:

b) For purposes of this section, the following definitions shall apply:

1) DIRECT ROLLOVER. A direct payment by the plan to the eligible retirement plan specified by the
distributee. Effective as of January 1, 2008, a non- spouse Beneficiary may make a direct rollover
only to an " inherited" individual retirement account as described in Section 408( b) of the
Internal Revenue Code.
 2) DISTRIBUTEE. An Employee or former Employee. In addition, the Employee' s or former
Employee' s surviving spouse is a distributee with regard to the interest of the spouse. Effective
as of January 1, 2008, an Employee' s or former Employee' s non-spouse Beneficiary is a
distributee with regard to the interest of the Employee or former Employee.

3) ELIGIBLE RETIREMENT PLAN. An individual retirement account described in Section 408( a) of

the Internal Revenue Code, an individual retirement annuity account described in Section 408( b)
of the Internal Revenue Code, an individual retirement plan described in Section 403( a) of the
Internal Revenue Code, or a qualified trust described in§ 401( a) of the Internal Revenue Code,
that accepts the distributee' s eligible rollover distribution. Effective for distributions made after
December 31, 2001, an eligible retirement plan shall also mean an annuity contract described in
Section 403( b) of the Internal Revenue Code which is maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political subdivision of a state and which
agrees to separately account for amounts transferred into such plan from this Plan.

4) ELIGIBLE ROLLOVER DISTRIBUTION. Any distribution of all or any portion of the balance to the
credit of the distributee, except that an eligible rollover distribution does not include any
distribution that is one of a series of substantially equal periodic payments( not less frequenty
than annually) of the distributee and the distributee' s designated beneficiary, for a specified
period of ten years or more; any distribution to the extent such distribution is required under
Section 401( a)( 9) of the Internal Revenue Code; and, the portion of any distribution that is not
includable in gross income.

Section 6. Sec. 18- 62 Miscellaneous Provisions is hereby amended by adding subparagraph ( e)

with said paragraph reads as follows:

e)
USERRA. Notwithstanding any provision of this plan to the contrary, effective as of
December 12, 1994, contributions, benefits and service credit with respect to qualified military service
will be provided in accordance with Section 414( u) of the Internal Revenue Code, as amended, USERRA,
and the Florida Statutes as applicable.

Section 7. Sec. 18- 62 ( e) Deferred retirement option plan is hereby amended by adding an
additional paragraph to existing paragraph ( e) and said additional paragraph reads as follows:

Net investment return is determined monthly by comparing the value of assets in the fund on
the first valuation date ( i. e. the first day of the month) to the value of the fund assets on the second
valuation date( i. e. the last day of the month). Results are geometrically linked, continuously, after the
first month. A weighted average allocation method is used to account for contributions into and
payments from the fund. The weighted portion of such contributions and payments is a fraction, the
numerator of which is the number of days in the valuation period, minus the number of days in the
valuation period which began prior to the applicable contribution date and minus the number of days in
the valuation period which began after the applicable payment date, and the denominator of which is
the number of days in the valuation period.

Section 8. All ordinances or parts of ordinances in conflict herewith or inconsistent

herewith, are hereby repealed, but only insofar as such ordinances may be inconsistent or in conflict
with this Ordinance.

Section 9. If any section, sentence, clause or phrase of this Ordinance is held to be invalid
or unconstitutional by any court of competent jurisdiction, then said holding shall in no way effect the
validity of the remaining portions of this Ordinance, which shall be deemed to be severable therefrom.

Section 10. This Ordinance shall become effective immediately upon adoption on second
reading.

Passed on first reading this 1" day of December , 2015.

16th

Passed and adopted on second reading this day of February ' 2016.

ATTEST:
Au
Alice Burch, Mayor

Barbara A. Estep, MMC

Village Clerk

APPROVED AS TO FORM:

Richard Sarafan

Village Attorney