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THIS BENEFIT PLAN SUMMARY
DESCRIBES YOUR BENEFITS UNDER THE CITY OF MIAMI FIRE FIGHTERS’ AND POLICE OFFICERS’ RETIREMENT
TRUST. HOWEVER, NEITHER THE ESTABLISHMENT OF THE RETIREMENT SYSTEM
AS DESCRIBED IN THIS SUMMARY, NOR ANY MODIFICATION THEREOF, NOR
THE DESCRIPTION OF ANY FUND OR ACCOUNT, NOR THE DESCRIPTION OF
ANY BENEFITS, SHALL BE CONSTRUED AS GIVING TO ANY PARTICIPANT OR
OTHER PERSON ANY LEGAL OR EQUITABLE RIGHT AGAINST THE EMPLOYER
CITY, OR ANY OFFICER, OFFICIAL OR EMPLOYEE THEREOF, OR THE CITY
OF MIAMI FIRE FIGHTERS’ AND POLICE OFFICERS’ RETIREMENT
TRUST, OR ITS STAFF OR ITS BOARD OF TRUSTEES, EXCEPT AS PROVIDED
IN THE CITY OF MIAMI CODE.
Published: May 2006
What
does the City of Miami Fire Fighters’ and Police Officers’ Retirement
Trust mean to you?
The retirement system is designed to provide you with a monthly
income when you retire. You and the City of Miami share in the
costs of the retirement fund.
Your contributions
and the City’s contributions are invested
in a trust fund for the specific benefit of system members. Once
money is put into the trust fund, it can be used only for trust
expenses and for the benefit of the system’s active and retired
members and their beneficiaries.
The retirement trust provides its members who meet certain requirements
described in this booklet with the following;
- A monthly
income for life when you retire.
- Normal retirement as early as age 50.
- Rule of 64 Retirement.
- Early retirement after completing 20 years of creditable service.
- Death benefits.
- Disability benefits.
- The right to future (vested) retirement benefits if you leave the
City after 10 years of creditable service.
- Deferred Retirement Option Programs (BAC and Forward).
- Benefits payable to your surviving spouse.
- Cost Of Living Allowance (COLA) benefits after retirement.
The amount of your monthly retirement benefit is based on your
average final compensation when you retire and your length of creditable
service. The actual benefits are described in detail in this booklet.
When you retire, you can elect to receive your benefits under one
of several different payment options. These options allow you to
select the form of payments which best meet the needs of your family
and financial situation.
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What
words have special meaning ?
Accumulated
Contributions shall mean the sum of all amounts deducted
or picked up from a member’s compensation plus all other
amounts contributed to the retirement systems by a member pursuant
to the pension provisions of the City Code, together with regular
interest thereon.
Average
Final Compensation shall mean the annual earnable compensation
of any member during either the last one (1) year or the highest
one (1) year of membership service.
BAC DROP shall mean benefit actuarially calculated deferred retirement
option program.
C.O.L.A. shall mean cost of living allowance.
Creditable
Service shall mean membership credit upon which a member’s
eligibility to receive benefits under the retirement system is
based or upon which the amount of such benefits is determined.
DROP shall mean deferred retirement option program.
Earnable
Compensation shall mean an employees’ base salary,
including pick up contributions, for all straight time hours
worked, plus assignment pay and payments received for vacation
and sick
leave taken, jury duty, and death in the family leave taken.
Earnable compensation shall not include overtime pay; acting
ALS pay (fire
fighters), payments for accrued sick leave, accrued vacation
leave, or accrued compensatory leave, holiday pay, premium
pay for holidays
worked, the value of any employment benefits or non monetary
entitlements, or any other form of remuneration. Excess
Interest Earnings shall mean the difference between the return on the
actuarial
market value of the average assets (investment
and non-investment) of the City of Miami Fire Fighters and Police
Officers’ Retirement Trust Fund, as calculated, in accordance
with Chapter 112 of the Florida Statutes, and the assumed return
on the actuarial market value of such assets for active members
on the current actuarial valuation report.
Member
or Member In Service shall mean an employee for whom contributions
to the retirement system are made as required by this division.
Member
Absent From Service shall mean any member ceasing to be a city employee
who is absent
from service less than three (3)
years in a period of five (5) consecutive years after last becoming
a member and who does not withdraw his or her accumulated contributions.
In order for a member absent from service to be entitled to receive
a benefit during the period before membership elapses, the membership
period must have vested prior to the member’s ceasing to
be a city employee.
Member
Not In Service shall mean any member who exercises a vested
right to retirement.
Membership
Credit shall mean credit received by a member for time
spent in membership service or for such time as is otherwise authorized
by the City Code.
Payback shall
mean a member’s contribution to the retirement
system for membership credit for which other than regular contributions
may be made pursuant to the City Code. Contributions permitted
for paybacks shall not be picked up by the City but may be deducted
from a member’s compensation.
Regular
Contributions shall mean amounts picked up by the City from the earnable compensation
of a member. Regular contributions
shall not include payback contributions of any kind or nature or
any other amounts which may be deducted from a member’s compensation
pursuant to this division.
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How
is the Retirement Trust administered ?
The general administration
and responsibility for the operation of the Retirement Trust
rests in the City of Miami Fire Fighters’ and
Police Officers’ Board of Trustees. The Retirement Board
of Trustees consists of 9 members appointed or elected as follows;
(1) trustee selected by the City Manager, (2) trustees selected
by the fire fighters, (2) trustees selected by the police officers,
(4) independent trustees selected by the City Commission.
The Retirement Board
of Trustees conducts regular meetings and establishes rules and
regulations as are necessary for the efficient
administration of the trust fund. It also selects and employs firms
or individuals to assist in the fund’s operations.
The business
of the Trust Fund is handled at the regular meetings. Decisions
are made through a vote of the members with 5 affirmative
votes needed for approval. The Retirement Board of Trustees welcomes
your attendance and input at any of its meetings. Meetings are
held at the pension office conference room unless otherwise noted.
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When
do I become a member ?
If you are
a police officer or a fire fighter employed by the City of Miami,
you
shall become a member of the City of Miami Fire
Fighters’ and Police Officers’ Retirement Trust on
your date of employment. As of that date, you will begin making
regular contributions and will begin to accrue creditable service.
You will have to submit to an employment physical examination
before being formally accepted into membership. If this examination
reveals any physical or mental problems, you may not be eligible
for certain disability benefits as a result of these pre-existing
conditions.
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How
long do I remain a member ?
You will continue as
a member as long as you are employed by the City of Miami. If,
upon separation from city employment, you withdraw
your contributions from the trust, you will cease being a member
of the retirement fund and will earn no benefits from it. However,
if you terminate your employment but leave your contributions in
the trust fund, you will remain as a member absent from service
and may resume your membership if you return to work within 3 years.
In order for a member absent from service to be entitled to receive
a benefit during the period before membership elapses, the benefit
must have vested prior to the member’s ceasing to be a city
employee.
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How
much do I contribute ?
Regular contributions
of each member of the retirement system shall be made each pay
period at the rate of 7% of each member’s
earnable compensation.
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When
can I retire ?
You can retire and receive benefits from the retirement trust
when you qualify for retirement under one of the conditions listed
below. When you decide to retire, you must make an appointment
to complete a retirement application with the Pension Office. The
appointment must be at least 10 days prior to your desired retirement
date and no more than 90 days from the desired retirement date.
and you must fill out the necessary forms.
Service Retirement: You may take a normal retirement any time
after your 50th birthday and completion of 10 or more years of
creditable service.
Rule of 64: Any member in service who did not withdraw from active
membership may elect service retirement on the basis of his/her
combined age and creditable
service equaling sixty four (64) points or more.
Early Service Retirement: If you have at least twenty (20) years
of creditable service, you can retire before normal retirement
age. Your benefit will be reduced however, to reflect the longer
period of time over which your benefits will be paid.
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What
is the deferred retirement option program ?
It is a program where a member, upon retiring, can elect to defer
his/her monthly benefit into a DROP account and continue to work
for the City receiving his normal compensation.
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How
can I participate in the DROP ?
In order to participate in the DROP you must be retired under
either Rule of 64 or Service Retirement. Upon applying for retirement
you elect to BAC or Forward DROP depending on your choice, receipt
of your retirement benefit is deferred into a DROP account.
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How
long can I stay in the DROP ?
You can participate in the DROP for a period not to exceed a total
of 4 years, whether forward or BAC or a combination.
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How
much will my benefits be if I retire at a normal retirement age
?
The monthly benefit you can receive if you retire normally (Service
or Rule of 64) is the sum of creditable years of service under
15 years times 3.0% plus creditable years of service over 15 years
times 3.5%. The total percentage is then multiplied times the average
final compensation.
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How
will my benefits be calculated if I elect to participate in the
Forward DROP ?
Your benefits will be calculated the same as for a normal Service
or Rule of 64 retirement.
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How
will my benefits be calculated if I elect to participate in the
BAC DROP ?
A base pension benefit will be calculated the same as for a normal
Service or Rule of 64 retirement. This base benefit will then be
reduced by 7.5% for 1 year BAC DROP, 15.0% for 2 year BAC DROP,
22.5% for 3 year BAC DROP and 30% for 4 year BAC DROP.
The lump sum amount will be based on the reduced monthly benefit
amount times years of BAC DROP plus interest.
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What
will my benefits be if I retire early ?
The monthly benefit you can receive if you retire early is the
sum of creditable years of service under 15 years times 3.0% plus
creditable years of service over 15 years times 3.5%. The total
percentage is then multiplied times the average final compensation
then multiplied times the actuarial reduction for early retirement
which is approximately 5% per year up to age 50.
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Once
I retire, how will my benefits be paid ?
When you elect to retire, you will have the choice of receiving
your benefit payments under one of several different payment options.
The variety of options allows you to choose the best form of payment
to meet your personal needs. Benefits are paid on a monthly basis,
the 15th of the month.
Option 1: You receive a reduced monthly benefit from
the system. If you die before you have received the value of
your own contributions
plus credited interest, your beneficiary will receive the remaining
balance.
Option 2: You receive a reduced benefit and upon your
death your beneficiary would continue receiving the same benefit
for his/her
lifetime. The amount of the reduction will depend upon your age
and the age of your beneficiary. If your beneficiary predeceases
you, no additional benefits will be paid after your death.
Option
3: You receive a reduced benefit and upon your death your beneficiary
would receive one half (1/2) of the benefits you had
been receiving for the rest of his/her lifetime. The reduction
is based on your age and the age of the beneficiary. If your
beneficiary predeceases you, no additional benefits will be paid
after your
death.
Option 4: You can select specific amounts payable
during your lifetime, and specific amounts payable at your death,
providing that your request is approved by the Board of Trustees
and that
the actuarial value of the benefit is no greater than the value
of the normal benefit.
Option 5: If you are unable to select an
option, the Board of Trustees may, with the consent of the
beneficiary, select a payment
option for you.
Option 6 “A”: You can withdraw the value
of your own contributions plus credited interest. You would then
receive
a monthly benefit equal to one-half (1/2) of what you would have
otherwise received. These monthly payments are guaranteed for
12 months. After the 12th month, upon your death, no additional
payments
will be made.
Option 6 “B”: You can elect to receive
your normal benefit plus an additional 5% of that amount. These
payments are
guaranteed for 12 months. After 12 months of benefits are paid,
the benefit ceases upon your death.
Option 6 “C”: You
can receive your normal benefit and after your death, your spouse
will receive 40% of the benefit
you were receiving for her lifetime.
Option 6 “D”. You can receive your normal benefit
and if death occurs prior to receiving such allowance for a period
of 10 years, the member’s beneficiary or beneficiaries
shall be paid the same allowance for the remainder of the 10
year period.
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What
if I leave City employment before I retire ?
Non
Withdrawal of Contributions: If your employment ends before you are eligible
to retire, upon leaving City employment you may opt to leave
your accumulated contributions in the Trust Fund retaining,
therefore, membership in the Fund. Your contributions will
continue to earn interest for a period of 3 years.
Withdrawal of Contributions: If your employment ends before
you are eligible to retire, you can elect to withdraw your contributions
to the retirement trust, together with accumulated interest.
A flat 20% for taxes will be deducted. If you withdraw your contributions,
you are not entitled to any benefits from the retirement trust
and your membership will end.
Direct Rollover of Contributions: If your employment ends before
you are eligible to retire, you can elect to rollover your contributions
to the retirement trust together with accumulated interest into
an IRA or any qualified retirement plan. This option will avoid
the 20% tax imposed on the withdrawal of the contributions.
Vested Rights: If a member who is not entitled to retire, ceases
to be a city employee for any reason other than death or willful
misconduct in office, and has completed at least 10 years of
creditable service at the time of separation this member may
elect to become a member not in service and retire upon subsequent
attainment of normal retirement age.
If a member elects Vested Rights, upon reaching normal retirement
age (50 years of age) the member will begin to receive a monthly
benefit. The amount of the benefit will be calculated the same
as a normal service retirement (See page 7). If a member who
elects to become a member not in service subsequently elects
to withdraw his/her accumulated contributions, the member not
in service will be paid the amount of his/her accumulated contributions
at the time he/she ceased to be a city employee, plus interest
accumulated during the first three (3) years after leaving City
employment.
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What
happens if I die before retirement ?
If your death occurs while an active employee of the City, you
may qualify for a death benefit from the Retirement Trust. You
may be eligible for one of three types of death benefits. If you
qualify for more than one of the types of death benefits, your
beneficiary may select which benefit is to be received.
Ordinary Death Benefit: If you have at least three
(3) years of creditable service, and your death is not the result
of your
performance of duty, you will qualify for this benefit.
The amount
of the Ordinary Death Benefit is one half (1/2) of the compensation
which you earned in the year before your death,
and will be paid to your beneficiary in a lump sum. Your beneficiary
will also receive a lump sum of your contributions plus interest.
Accidental
Death Benefit: If your death results from an accident while you
were performing your duties with the City and if the
accident was not caused by willful negligence, the Retirement Trust’s
Board of Trustees can determine that you qualify for an Accidental
Death Benefit.
The Accidental Death Benefit will be paid to your spouse
and will be equal to one half (1/2) of your monthly average final
compensation,
paid on a monthly basis.
Surviving Spouse Death Benefit: If you
qualify for early or normal retirement, but have not yet retired,
your spouse may qualify for
a surviving spouse’s death benefit from the Retirement Trust.
If you have no spouse, your designated beneficiary will receive
a lump sum payment equal to your contributions plus accumulated
interest.
If you qualify for the Surviving Spouse’s Death Benefit,
your spouse will receive monthly payments during his/her lifetime.
The benefit will be based on what your spouse would have received
if you had retired on the day of your death and elected payment
Option 6 “C” (40%).
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What
happens if I die after I retire ?
Once you retire and begin receiving payments, any payments after
your death will depend on the option you chose when you retired.
If you selected an option which provided for continuing payments
after your death, payments will be governed by that option. If
you did not select a payment option which provided continuing payments
after your death, no additional benefits will be paid from the
plan. However, if you have elected payment Options 6 “A” or
6 “B” and at the time of death had not received at
least 12 monthly payments, the balance of the 12 payments will
be paid to your beneficiary.
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Once
I retire, will my benefits change ?
After you have been retired 4 years and are at least 50 years
of age you may qualify to receive a Cost of Living Allowance (COLA)
benefit from the Fund’s excess interest earnings. The COLA
benefit table is based on creditable years of service and years
of retirement. It is payable based on the option selected.
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What
if I become disabled?
There are three types of disability benefits available under the
Retirement Trust. One type of disability benefit may be payable
to a member whose disability is not incurred while performing his
duties. This type of disability will be referred to as Ordinary
Disability. If you are disabled as a result of an accident which
happened while you were performing your job, you may be eligible
for a second type of disability benefit called Accidental Disability.
If your disability is caused by hypertension, heart disease or
tuberculosis, you might be eligible for a third type of disability
called Service Incurred Disability. The following section will
deal with each disability individually.
Ordinary Disability: In order to be eligible for ordinary disability
benefits, you must have at least 10 years of creditable service
and not be eligible for service retirement. If you are eligible
you may then apply with the Retirement Board for a disability
retirement. To apply, you must submit an application to the Pension
Office.
Medical records will be obtained from applicant’s personal
physicians, Risk Management, and the Department. The records compiled
will be reviewed by a physician appointed by the Retirement Board.
This physician will also examine the applicant and report his findings
along with his recommendations to the Retirement Board. The Retirement
Board reviews all the records and its physician’s findings
and votes on the request for disability retirement.
If you are granted
an Ordinary Disability, the benefit is based on your creditable
service and average final compensation at the
time of your disability. It is equal to 90% of the basic benefit
you have earned. The benefit is the sum of creditable years of
service under 15 years times 3.0% plus creditable years of service
over 15 years times 3.5%. The total percentage is then multiplied
times 90% of your average final compensation.
However, if the final
amount is less than 30% of your average final compensation,
your benefit will be recalculated to 30% of
your average final compensation.
Accidental / Service Incurred Disability: In order to be considered for Accidental/Service Incurred Disability,
you must be less than
age 60 at the time of accident. If you are eligible, you may then
apply with the Retirement Board for a disability retirement. To
apply, you must follow the same procedure as stated under Ordinary
Disability. To be granted an Accidental Disability however, it
must be determined, based on the records and the findings of the
Board’s physician, that the disability is the result of an
accident, illness or injury which occurred in the line of duty
and that it is total and permanent. If the disability is the result
of tuberculosis, heart disease or hypertension it will be classified
as a Service Incurred Disability.
If you are granted an Accidental
Disability or a Service Incurred Disability, the benefit will
be calculated at 66 2/3% of your average
final compensation or 66 2/3% of your final compensation, whichever
is greater. This benefit will be payable monthly for your lifetime
with a 40% continued benefit to your spouse for her/his lifetime
after your death (provided you are married at the time you are
granted the disability retirement).
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What
happens if I recover from my disability?
The Board of Trustees has the right to have you periodically reexamined
by a physician appointed by the Board if you have not reached your
minimum normal retirement age. If you refuse to be reexamined,
the Board may discontinue benefit payments until such reexamination.
If refusal is for more than a year, all pension rights could be
revoked.
If upon reexamination it is found that you can return to work
in your previous classification, you may be requested to return
to work within that classification.
Upon re-employment, all disability benefits will stop and you
will be granted credit for service prior to your disability and
immediately become a contributing member. You will have the option
of making up employee contributions for the time you were disabled
and thereby receive credit for that time.
If you are receiving accidental disability or service incurred
disability benefits and are working for another employer with duties
comparable to those of the classification that you were retired
from, your benefit may be reduced. This reduction would be imposed
if your pension benefit when added to your pay is greater than
the pay you received in the classification at the time you were
retired.
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What
is my status if I leave the City and then I am re-employed ?
If when you terminated you had at least 5 years of creditable
service and you come back within 3 years and are not within 5 years
of normal retirement, you may elect to pay back your refunded employee
contributions with interest in a lump sum or in payroll deductions
prorated over a period not to exceed 5 years. If pay back is selected,
you will get credit for all previous creditable service.
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Do
I receive credit for my military service ?
If you are a member of the Retirement Trust Fund and are granted
a leave of absence from City employment due to entrance into military
service you may get credit for the time of absence for up to a
maximum of five years.
If you served on active military duty prior to your employment
with the City, you may be eligible to receive membership credit
up to a maximum of 4 years if, (1) the active military service
was wartime service as declared by federal statute or executive
order, (2) you present to the Board acceptable proof of wartime
service, (3) you were discharged under honorable conditions, and
(4) you have completed at least 10 years of creditable service
with the City.
Such contributions shall be computed at the current contribution
rate times the member’s first year of earnable compensation,
plus 4 percent interest thereon, compounded annually from the date
of first creditable service to the date of payment.
Pay backs must be completed prior to the receipt of any retirement
benefit.
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Can
maternity leave of absences be made up ?
Any member can receive membership credit for unpaid leave taken
for maternity or self illness purposes up to a maximum of 180 days,
provided that they have exhausted all vacation time, sick leave
time, earned overtime, or similar time.
If you claim membership credit for unpaid leave because of maternity
or self illness purposes, you must pay into the trust fund accumulated
contributions at the current contribution rate times your current
earnable compensation. Request for payment must be initiated within
30 days from date of return. This payment can be made either in
a lump sum or in payroll deductions prorated over a period not
to exceed 1 year.
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How can I purchase additional years of creditable service?
A retiring IAFF bargaining unit member, who does not participate
in the DROP and retires can purchase from his/her available leave
balances, additional years of creditable service. The purchase
of this time may not be utilized for Rule of 64 eligibility. Employees
may also purchase three whole creditable service years by a tax
qualified transfer of funds from a member’s 457 Deferred
Compensation Plan.
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What
can I do with my leave balances besides getting paid for them ? Leave
balances can be used to purchase additional years of service.
The cost per year will be the actuarially determined present
value based on the member’s final average compensation
used to calculate the member’s retirement benefit.
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Can
my accumulated leave balances be rolled over into an IRA ?
Your vacation
and earned time balances can be rolled over into an IRA by transferring
them to the Fire and Police Pension Trust Fund. Since the Trust
Fund is a qualified plan those monies can then be rolled into
and IRA with a financial institution of your choice. Note: election
to rollover must be made in the calendar year prior to ceasing
City employment.
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How
do I apply for benefits under the retirement trust ?
You must contact
the retirement office at (305) 858-6006 for an appointment. The
offices are located at 1895 SW 3rd Avenue, Miami, Florida 33129.
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