ORDINANCE NO.

715- 16

AN ORDINANCE OF THE MIAMI SHORES VILLAGE COUNCIL AMENDING CHAPTER

18, ARTICLE IV POLICE OFFICERS' RETIREMENT SYSTEM, 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 Police Officers' Retirement System, the IRS is recommending that the
Village Council consider certain amendments to the Plan; and,

WHEREAS, The Police Officers' Retirement System 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 IV of the Code of
Ordinances as recommended;

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

Section 1. Sec. 18- 77 Definitions is hereby amended to read as follows:

Sec. 18- 77 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.

The definition of Creditable service is hereby amended by adding an additional final paragraph
to the definition, said paragraph to read as follows:

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 of 1986, as amended, USERRA, and
Chapters 175 and 185, Florida Statutes as applicable.
 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- 77 shall remain as previously enacted.

Section 2. Sec. 18- 83 ( a)( 1) Contributions is hereby amended to read as follows:

a) Member contributions.

1) Amount. Members shall contribute nine percent of earnable compensation. Such

contribution shall continue for police officers until their individual retirement date.

Effective July 1, 1989, the contributions made by police officers shall be increased by the
percentage of compensation determined by the plan' s actuary to be equal to an amount of one-
half the cost of the benefit increase provided for and defined in subsection 18- 72( a), provided
that such contribution increase shall not exceed four percent of earnable compensation in
addition to the nine percent contribution set forth and defined herein this section.

Member contributions withheld by the village on behalf of members shall be deposited in the
fund immediately after each pay period. The contributions made by each member to the fund
shall be designated as employer contributions pursuant to section 414( h) of the Internal
Revenue Code. Such designation is contingent upon the contributions being excluded from the
members' gross income for federal income tax purposes. For all other purposes of the system,
such contributions shall be considered to be member contributions. No member shall have the

option of choosing to receive the contributed amounts directly instead of having them paid by
the village to the fund.

Section 3. Sec. 18- 101( b) Definitions: Eligible retirement plan, Distributee, and Direct Rollover are

hereby amended to read as follows:

b) Definitions.

Eligible retirement plan. An eligible retirement plan is an individual retirement account

described in section 408(a) of the Internal Revenue Code, an individual retirement annuity
described in section 408( b) of the Internal Revenue Code, an annual plan described in section
403( a) of the Internal Revenue Code, or a qualified trust described in section 401( a) of the
Internal Revenue Code that accepts the distributee' s eligible rollover distribution. However, in

the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is
an individual retirement account or individual retirement annuity. 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 and an eligible plan under Section
457( 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.

Distributee. A distributee includes 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.

Director rollover. A direct rollover is a 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.

Section 4. Sec. 18- 107 Deferred retirement option plan( DROP) is hereby amended by adding an
additional subsection ( m); said subsection to read 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 5. 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 6. 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 7. This Ordinance shall become effective immediately upon adoption on second
reading.

t
Passed on first reading this 1' day of December , 2015.
 16th

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

ATTEST:
04i
Alice Burch, Mayor

CL 444
Law
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Barbara A. Estep, MM
Village Clerk

APPROVED AS TO FORM:

Richard Sarafan

Village Attorney