HomeMy WebLinkAboutReso 2019-2909 RESOLUTION NO. 2019 - 2�
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF SUNNY ISLES BEACH, FLORIDA, APPROVING AN
AMENDMENT TO SECTION 503:1 TITLED "RETIREMENT
BENEFITS" OF THE CITY'S PERSONNEL POLICY MANUAL,
ATTACHED HERETO AS EXHIBIT "A"; AUTHORIZING THE
CITY MANAGER TO DO ALL THINGS NECESSARY TO
EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City of Sunny Isles Beach Personnel Manual provides guidance on
procedures, benefits, and general operation of the City; and
WHEREAS, the Personnel Policy Manual is a living document that is subject to change
on an as-needed basis; and
WHEREAS, the City Commission now desires to amend Section 503:1 titled "Retirement
Benefits" of the City's Personnel Policy Manual, attached hereto as Exhibit "A".
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Incorporation of Recitals. All recitals set forth herein are incorporated into this
resolution.
Section 2. Approval of the Personnel Policy Manual. The City Commission hereby approves
the updated policy of the Personnel Policy Manual, attached hereto as Exhibit "A".
Section 3. Authorization of City Manager. The City Manager is hereby authorized to do all
things necessary to effectuate this Resolution.
Section 4. Effective Date. This Resolution will be become effective upon signature of the
Mayor.
PASSED AND ADOPTED this 1 day si January 2019.
173(7e.G;'( '
George Scholl, Mayor Date
ATTE'. :
Mauricio Beta ur, CMC, City Clerk
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
Hans Ottino , y Attorney
Moved by: CVIA7VAl SS(061€- 60( 64 4-4
Seconded by: CO'M°C41014E12" VISC140
Vote:
Mayor Scholl –4e (Yes) (No)
Vice Mayor Svechin V (Yes) (No)
Commissioner Goldman "-(Yes) (No)
Commissioner Lama (Yes) (No)
Commissioner Viscarra —/(Yes) (No)
SUNNY SSf
= �= A City of Sunny Isles Beach
� ,,v' Personnel Policy and Procedure
Policy Name RETIREMENT BENEFITS
Policy Number 503:1
Effective Date 10/1/04
Revision Date(s) 1/18/18
Prepared By, Title Human Resources Director
Approved By, Title City Manager
POLICY:
It is the policy of the City to provide eligible employees with retirement benefits.
RETIREMENT PLANS:
The City of Sunny Isles Beach is a Florida Retirement System (FRS) agency and as of
November 1, 2002, all new hires were required to be enrolled. Employees hired prior to
this date were required to make an election to either stay with the then City retirement
plan (a 401A defined contribution plan) or elect to join the FRS.
Pursuant to state law and FRS rules, eligible employees are those employees who are
appointed into a regular full-time or part-time City position no matter how many hours
scheduled to work. Temporary and intermittent employees are not eligible.
Eligible employees and the City will make retirement contributions pursuant to current
FRS rules and contribution rates, approved by the State of Florida.
The City requires advance notice of an employee's intent to retire or enter the Deferred
Retirement Option Program (DROP). It is the desire of the City to receive at least a three
(3) month advance notice and, preferably, not less than three (3) months prior to the end
of the fiscal year.
PROCEDURE:
1) Florida Retirement System (FRS)
a) Upon appointment as a City employee in a regular City position, the
employee will be enrolled into the FRS effective the date of the regular
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503-1 Retirement Benefits - DRAFT 01172018sem Page 1 of 6
appointment. The employee has the option to elect the FRS Investment
Plan or the Pension Plan and must inform the Division of Retirement directly
within the allotted time. Employees who do not make an active election to
participate in either the Investment Plan or the Pension Plan within the
allotted time will default into the Investment Plan, with the exception of
employees in the Special Risk Class position, who will continue to default
to the Pension Plan.
b) Management employees appointed into a designated FRS Senior
Management position will be provided those elections pursuant to FRS rules.
If the position has not been designated as a FRS Senior Management position,
the Human Resources Director will follow FRS procedures to do so (senior
management positions not already designated as FRS Senior Management
positions may have the opportunity to select FRS or to select the City's 401A
management plan provided the current FRS rules provide for such election).
c) Vesting schedules vary per plan and are determined by Florida Statutes.
d) All information regarding individual employee FRS accounts are administered
by FRS and can be attained by individual employees by either going on-line or
accessing individual FRS account information or by contacting FRS directly.
The Human Resources Department has information regarding FRS contact
numbers and on-line internet addresses.
2) ICMA 401A Plan
a) Employees who were given a choice to remain in the City's defined
contribution 401A retirement plan as of November 1, 2002, and chose to
do so, continue to make contributions to the plan pursuant to current plan
requirements, as does the City.
b) Current contribution rates are as follows: the City contributes 11% of
employee's base salary per pay period; non-management employees
contribute 4%; management employees contribute 6%.
c) The City reserves the right to change contribution rates as may be
necessary.
d) The Human Resources Department generally administers the City's 401A
plan which is offered through ICMA. All plan information can be obtained
either through the Human Resources Department or by contacting the ICMA
directly. Employee account information can be accessed by the employee
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503-1 Retirement Benefits - DRAFT 01172018sem Page 2 of 6
either on-line or via telephone. The Human Resources Department has
information regarding FRS contact numbers and on-line internet addresses.
3) Voluntary ICMA 457 Deferred Compensation Plan
The City offers a voluntary Section 457 tax deferred retirement savings program
through the ICMA. This plan is available to eligible employees who wish to
supplement future retirement income. The plan allows employees to put aside a
portion of their earnings, up to the current federal limit, each pay period into an
account for their retirement and reduce the amount of earnings that is currently
taxable. The Human Resources Department administers this program through the
ICMA.
4) Voluntary ICMA Roth IRA Plan
The City offers a voluntary Roth IRA plan. This plan is available to eligible
employees who wish to supplement future retirement income. The plan allows
employees to put aside a portion of their earnings, up to the current federal limit,
each pay period into an account for their retirement. The Human Resources
Department administers this program through the ICMA.
RETIREE HEALTH INSURANCE:
1) Eligibility:
a. Eligible full-time employees of the City that are participants in the City's
Health Insurance plans (the Plan) at the time of their retirement shall be
afforded the option of continuing to participate in the Plan(s) as a
Retiree. A"Retiree" is defined as an employee who voluntarily withdraws
from one's position and qualifies as a retiree under Section 112.0801(2),
Florida Statutes. The Retiree and any eligible dependent(s) may
continue participation under the Plan(s) effective the first day of the
subsequent month following the employee's separation of service.
Retirees can elect to continue coverage only for dependents that are
enrolled in the Plan(s) or elect to remove the dependents.
b. In addition to the eligibility provisions stated above, the City's Charter
Officers (as designated by the City of Sunny Isles Beach Municipal
Charter) may be eligible for retiree health insurance if they meet all of
the following criteria:
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503-1 Retirement Benefits - DRAFT 01172018sem Page 3 of 6
i. Voluntary separation of service (cannot be in lieu of
termination or while under investigation)
ii. Must have a minimum of fifteen (15) years of service with
the City and be in a charter officer position upon separation
All other terms and conditions set forth herein remain in full force and effect.
c. The benefits continued under retiree coverage include the same health,
prescription, vision and dental coverage that the employee received as
an active participant in the Plan.
2) Procedure:
a. Upon retirement, the Human Resources Department will notify the
employee of the option to continue the health benefits. Employees
wishing to continue coverage as a Retiree must elect the coverage
within 60 days. The City utilizes a third party administrator for election
notifications and payment administration. Coverage through the active
group terminates the end of the month in which the employee retires,
providing premiums are paid in full. Coverage as a Retiree begins the
first of the month following retirement, providing payment is received.
The option to enroll in the City's health insurance plan upon retirement
is a one-time option, which must be exercised on or before the last day
of employment with the City.
b. The Retiree must pay a monthly Retiree contribution rate applicable to
the covered class (i.e., employee, employee plus spouse, employee
plus children, or family) elected for continuation. The retiree contribution
rate is established at 100% of the determined costs for the class of
coverage elected, and is assessed annually for rate adjustments each
March 1. The City will not pay the costs, or a portion thereof, of any such
continuation coverage for its Retirees and eligible dependents.
c. Once the City's health plan coverage for employees and their
dependents with Medicare changes to Retiree coverage, the Medicare
coverage will generally become primary and the City's health plan
coverage will become secondary to the Medicare coverage.
d. Retiree health insurance payments are due on the first day of each
month of continuation coverage. A grace period of 30 days after the first
day of the month will be given to make each monthly payment.
Continuation coverage will be provided for each month as long as
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payment for that month is made before the end of the grace period for
that payment. If the Retiree fails to make a monthly payment before the
end of the grace period Ifor that month, they will lose all rights to
continuation coverage under the Plan and the benefits will be
terminated.
e. If Retiree health insurance coverage is terminated, it cannot be
reinstated and COBRA continuation coverage will not be available.
f. Retirees may cancel health, dental and/or vision coverage during the
year, however, they may not rejoin the plan at a later date once coverage
is cancelled. The change will become effective the end of the month the
request is received. If cancellation is due to other insurance coverage,
the cancellation will be done to coincide with the effective date of the
new coverage providing proof of other insurance is provided, the request
is timely and claims have not been incurred under the plan you are
cancelling. Dependent coverage ceases upon cancellation of Retiree
coverage. At that time, dependents will be offered continuation coverage
under the provisions of the Consolidated Omnibus Budget
Reconciliation Act (COBRA).
g. Dependents may be added mid-year or outside of the annual benefits
open enrollment period if there is a "Qualifying Life Event". Qualifying
Life Events are defined by the Internal Revenue Service (IRS) and
include:
i. Change in Retiree's legal status including marriage, divorce, and
death of spouse/domestic partner.
ii. Change in the number of dependents the Retiree has for federal
income tax purposes due to events such as birth, adoption,
placement for adoption or death.
iii. The termination or commencement of employment of the
Retiree's spouse/domestic partner or other enrolled dependent.
iv. An event that causes the Retiree's dependent child to satisfy or
cease to satisfy the requirements for coverage due to attainment
of age.
v. A court order or judgment, decree or change in legal custody
including a qualified health child support order.
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vi. Entitlement to or loss of Medicare eligibility for Retiree and/or
dependents.
vii.- Entitlement to or loss of Medicaid/Children's Health' Insurance
Program (CHIP) eligibility (60 days: allowed to exercise this
HIPAA Special Enrollment Rights).
viii. Differences in the open enrollment periods between the City and
another employer affecting the Retiree's spouse or dependent.
h. Requests to add a new dependent must be received by the Human
Resources Department within 30 days of the event (60 days for
newborns/adoptions/ placement for adoption/entitlement to or loss of
Medicaid/CHIP). If the supporting documentation (example marriage
certificate, birth certificate etc.) is not readily available, the Retiree must
provide it as soon as it becomes available. The types of documentation
required to support the change in status will be determined by Human
Resources and communicated to the Retiree upon request for
enrollment. Once approved, the change will become effective the first
day of the month following receipt of the request, providing supporting
documentation is provided.
i. Dependent children ages 26 - 30 are eligible for group health coverage.
Chapter 627.6562 of the Florida Statutes, stipulates that the child must
be unmarried without any dependents, a resident of the State of Florida
or a full-time or part-time student and is not provided coverage or is not
a covered person under .any other group health insurance policy or
individual health benefits plan, or is not entitled to benefits under Title
XVIII of the Social Security'Act. Retirees enrolling a new dependent child
age 26+ must provide supporting documentation that the child was
continuously covered by other creditable coverage without a gap in
coverage of more than 63 days.
3) Employees covered under a Collective Bargaining Agreement should refer to
the Collective Bargaining Agreement for additional benefits, procedures and
information relating to this policy.
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