NOTIFICATION TO RETIREES OF REVISED 1099-R
In prior years, the North Miami Retirement Systems were collecting health insurance premiums on a pre-tax basis. During the past year, the prior administrator was replaced. The new administrator requested a tax opinion which concluded that health insurance premiums were required to be collected on a post-tax basis. In other words, the total amount of the pension benefit is required to be reported to the IRS, as is shown on the Revised 1099-R. The Pension Board is not permitted to provide tax advice. Retirees are advised to consult with their tax adviser or accountant.
Special notice for retired public safety officers: Pursuant to the Pension Protection Act of 2006, as amended last year by the Secure 2.0 Act of 2022, public safety personnel are entitled to a $3,000 exclusion from gross income for health insurance. It is the duty of the taxpayer to claim the exclusion on their Form 1040, as applicable.
Dear North Miami Pensioners:
We would like to inform you that the North Miami Retirement Systems hired our custodial bank, Northern Trust, to process monthly pension benefits.
Please note that this change will not affect any member’s scheduled pension payments. Members will continue to receive their payments on the 15th of each month, and any necessary updates regarding tax withholding, banking information, or address changes will still be managed by our office.
This transition is an essential step towards increasing the security of our retirement systems and preventing fraudulent activity. The new arrangement is scheduled to take effect in April 2023 and although there may be some minor issues associated with this change, our office, and the vendor will work together to handle them efficiently.
We appreciate your cooperation and understanding. If you require additional information or assistance, please do not hesitate to contact the North Miami Retirement System
Dear members and retirees,
This week the administrator of the City of North Miami retirement plans was arrested on three felony charges involving grand theft, fraud, and use of personal information of deceased retirees. Be assured this arrest and criminal activity will have no impact on the payment of retirement benefits, which will continue without interruption.
The following steps have already been taken:
· The alleged criminal activity has been identified and contained;
· The former pension administrator’s contract was promptly terminated and his access to the pension office and computers was blocked; and
· The Assistant Pension Administrator has been selected as the Interim Pension Administrator
The City’s retirement systems hold hundreds of millions of dollars of retirement assets which are secure and the plans remain well funded. There is no allegation or evidence that the alleged theft involved the underlying investment portfolio of the retirement systems.
Statement of the Board of Trustees of the City of North Miami Clair T. Singerman Employees’ Pension Fund
On November 1, 2022, Miguel Codorniu, long time administrator of the pension fund for employees of the City of North Miami, was arrested by the North Miami Police Department, charged with theft of pension fund assets and related offenses. Mr. Codorniu was immediately terminated from his employment. The arraignment is scheduled for December 1, 2022, in the criminal division of the Miami-Dade Circuit Court.
The Board has made a formal demand for return of allegedly fraudulently paid benefits and has not received a reply. The Board recently filed a damages action against Mr. Codorniu in the civil division of the Miami-Dade County Circuit Court.
The trustees have resolved to vigorously pursue the return of fund assets and continue to investigate the scope of alleged theft. The Board will have no further comment until after the arraignment.