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Council approves ordinance allowing re-hire of retirees after six-month waiting period
Summary
The council adopted a first-reading ordinance amending the closed city pension plans to permit retirees to receive in-service distributions and be rehired after a six-month waiting period; returning employees would be enrolled in the Florida Retirement System (FRS).
The council approved on first reading an ordinance amending the City of North Miami's employee retirement system and police pension plan rules to permit reemployed retirees to take in-service distributions and to be rehired after a six-month waiting period.
Personnel Director Laura Woodley explained that both plans are closed to new entrants, and the amendment is intended to allow retirees to be rehired where the city determines it appropriate, subject to a six-month wait. "When they return to the city, they will not be allowed to go back into the pension plans, but they will be enrolled in FRS," Woodley told the council.
Woodley and the plan attorney advised that the change presents no immediate financial impact to the pension plans. Council members asked whether the amendment could limit opportunities for younger hires; some members noted concern that re-hires could reduce openings for new employees. Staff said rehired members who take an in-service distribution would be governed by IRS rules and by the fact that the municipal pension plans remain closed.
The ordinance passed first reading with an aye vote and will return for a second reading and final adoption at a subsequent meeting.
