GENERAL EMPLOYEES RETIREMENT SYSTEM
Employees who have achieved regular Classified status in the City of Miami Beach are eligible to join the Pension System except:
- Members of the City Pension Fund for Firemen and Policemen or the Unclassified Pension System of the City of Miami Beach.
- Employees who work less than thirty (30) hours per week.
- Employees who have elected to join the Defined Contribution Plan, Section 401(a).
Employee Contribution and Benefits
Employees eligible to join AFSCME, employed on or after April 30, 1993; or in the classification of "Others" employed on or after August 1, 1993; or in the classification of CWA on or after February 21, 1994, contribute 10% of all wages, except for allowances. Employees may choose between the City's two plans, as an irrevocable decision.
- Defined Benefit Plan: The City pays an amount, determined by an Actuary, that is sufficient to provide retirement benefits for current and future retirees. If, upon leaving the City, an employee with at least one year in the system wishes to receive his/her contributions will receive 3% interest for each year in the system. Exception: Employees earn interest for only one more year following the effective date of resignation. The withdrawal will negate any further retirement benefit.
Other features include:
- Employees may be fully vested after ten (10) years of service and may retire at age sixty (60).
- The FAME equals 1/12 of the annual average earnings for their highest three years. Earnings include base pay and longevity; it does not include overtime pay.
- Employees earn 3% per year of creditable service time to a maximum benefit of 80%, computed by multiplying 3% times the creditable years times the FAME. (There will be a non-compounding 11/2% cost of living increase each October 1st).
- Defined Contribution Plan will not provide a specific retirement amount. Employees will be eligible to retire at age 55. Employees are immediately vested in the system upon successfully completing the probationary period. There are no minimum number of years of participation.
The employee contribution to this plan will be 10% of base salary which the City will match. The 20% will be forwarded each pay period to the plan provider the employee chooses (ICMA or Nationwide) and invested in the funds the employee selects on the ICMA or Nationwide enrollment form. Changes to fund allocations in the future are made in accordance with plan provider's guidelines.
The final benefit will depend on: the employee's balance as a result of the amount he/she and the City have contributed; the rate of growth the chosen funds have returned; and the method of distribution chosen. Employees may convert their balance into an annuity, receive a chosen predetermined amount at predetermined periods, or withdraw the total amount in one lump sum.
Additionally the City will pay the cost of employee disability retirement insurance equal to 2/3 of an employee's FAME. The retirement benefit is the value of an annual annuity that can be purchased with the account value.
The employee may direct the investments under each plan manager's portfolio. Any cost of administration and all gains or losses from investment of the 401A are the employee's.
ICMA - 1-800-669-7400
Nationwide - 305-862-8174 or 1-800-432-0822
For more detailed information concerning pension benefits, see the Pension Manual. Questions can be addressed to the Pension Office, 1st Floor of City Hall, Finance Department, or phone 673-7437. For more information concerning the 401A Plan Contact the Human Resources Department, 3rd Floor of City Hall, phone 673-7520.