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BOYNTON.18
Chapter 18 PENSIONS AND RETIREMENT Art. Art. Art. Art. Art. Art. Art. Art. Art. i. Social Security, §§ 18-1--18-54 Div. 1. Generally, 88 18-1-- 18-18 Div. 2. For Policemen, 88 18-19-- 18-36 Div. 3. For Firemen, 88 18-37--18- 54 ii. Employees' Pension Plan, § 18-55-- 18--163 Div. 1. Generally, 88 18-55--18-73 Div. 2. Membership and Service, 88 18-74--18-92 Div. 3. Contributions and Funding, 88 18-93--18-110 Div. 4. Retirement and Retirement Benefits, 88 18-111-- 18-134 Div. 5. Administration of the Plan, 88 18-135--18-163 iii. Municipal Police Officers' Retirement System, §§ 18-164--18- 178 IV. Pensions for Firefighters, §§ 18- 179--18-194 V. Deferred Compensation Plan for Unclassified Personnel, §§ 18-195, 18-196 VI. Flexible Benefit Plan, §§ 18-197-- 18-199 VII. Eligible Rollover Distributions, §§ 18-200~18-220 VIII. Investment Policies, §§ 18-221, 18-222 IX. Early Retirement Incentive Program, §§ 18-223--18-230 ARTICLE i. SOCIAL SECURITY DIVISION I. GENERALLY Sec. 18-1. Benefits accepted; personnel covered. It is hereby declared to be the policy and purpose of the city to extend effective as of January 1, 1955, to the employees and officials thereof, not excluded by law, nor excepted herein, the benefits of the system of Old Age and Survivor's Insurance as authorized by the Federal Social Security Act and amendments thereto and by Chapter 650, Florida Statutes, as amended; and to cover by such plan all services which constitute employment as defined in Section 650.02, Florida Statutes, performed in the employ of said city by employees and officials thereof, except: a t U r ; ( b ) S r v i C i n a n Y C 1 a s s o r c 1 a s s s o f P 0 S i t i 0 S e r v i C e P O r m e d b Y a s d (Code 197e8, § 21-1) n t Sec. 18-2. Personnel excluded. f Thero is hereby excluded from the benefits provided l~y section 18-1 any authority to include in any agreement entered into under section 18-3 hereof any servicie, position, employee or official now covered b~ or eligible to be covered by an existing retiremenlesystem. (Code 1958, § 21-2) S C h O 2002 $-17 2 Boynton Beach Code Sec. 18-3. Agreements authorized. The mayor is hereby authorized and directed to execute all necessary agreements and amendments thereto with the Florida Industrial Commission, as state agency, or its successor, for the purpose of extending the benefits provided by such system of Old Age and Survivor's Insurance to the employees and officials of this city as provided in sections 18-1 and 18-2, which agreements shall provide for such methods of administration of the plan by such city as are found by the state agency to be necessary and proper, and shall be effective with respect to services in employment covered by such agreement performed on and after the first day of January, A.D. 1955. (Code 1958, § 21-3) Sec. 18-4. Withholdings authorized. Withholdings from salaries, wages or other compensation of employees and officials for the purpose provided in section 18-1 are hereby authorized to be made, and shall be made, in the amounts and at such times as may be required by applicable state or federal laws or regulations, and shall be paid over to the state agency designated by such laws or regulations to receive such amounts. (Code 1958, § 21-4) Sec. 18-5. Appropriations authorized. There shall be appropriated from available funds, derived from general revenue, such amounts, at such times, as may be required to pay promptly the contributions and assessments required of the city as employer by applicable state or federal laws or regulations, which shall be paid over to the lawfully designated state agency at the times and in the manner provided by law and regulation. (Code 1958, § 21-5) Sec. 18-6. Records, reports, adherence to regulations required. The city shall keep such records and make such reports as may be required by applicable state or federal laws or regulations, and shall adhere to the regulations of the state agency. (Code 1958, § 21-6) Sec. 18-7. Federal act adopted. The city does hereby adopt the terms, conditions, requirements, reservations, benefits, privileges and other conditions thereunto appertaining, of Title II of the Social Security Act as amended, for and on behalf of all officers and employees of its departments and agencies to be covered under the agreement. (Code 1958, § 21-7) Sec. 18-8. Custodian, withholding and reporting agent designated. The treasurer of the city is hereby designated the custodian of all sums withheld from the compensation of officers and employees and of the appropriated funds for the contribution of the city, and the treasurer of the city is hereby made the withholding and reporting agent and charged with the duty of maintaining personnel records for the purposes of this division. (Code 1958, § 21-8) Sec. 18-9. Pension administrator; duties. (a) Except as otherwise provided herein all administrative duties associated with the maintenance of the pension accounts created by this chapter including the preparation of records and reports, shall be performed by the pension administrator hired from time to time by the city. (b) Nothing herein shall diminish or alter the responsibility of the city clerk to act as custodian of the official minutes of the pension boards. 2002 S-17 Pensions and Retirement 2A (c) The pension administrator shall act as secretary to all pension boards established by this chapter and shall provide the original minutes of said meetings to the city clerk. (Ord. No. 93-23, § 1, 8-3-93) Secs. 18-10~18-18. Reserved. DIVISION 2. FOR POLICEMEN Sec. 18-19. Benefits accepted; personnel covered. It is hereby declared to be the policy and purpose of the city to extend effective as of January 1, 1958, to employees and officials thereof in the position of policeman and not excluded by law nor excepted herein, the benefits of the system of Old Age and Survivors Insurance as authorized by the Federal Social Security Act and amendments thereto, and by Chapter 650, Florida Statutes, as amended; and to cover by such plan all of their services which 2002 S-17 2B Boynton Beach Code Pensions and Retirement 3 constitute employment as defined in Section 650.02, Florida Statutes, performed in the employ of said city. (Code 1958, § 21-9) Sec. 18-20. Agreements authorized. The mayor is hereby authorized and directed to execute all necessary agreements and amendments thereto with the state agency, and to request the governor to authorize an employee referendum, for the purpose of extending the benefits provided by said system of Old Age and Survivors Insurance to the employees and officials of said city as specified in section 18-19, hereof, which agreement shall provide for such methods of administration of the plan by the city as are found by the state agency to be necessary and proper, and, subject to employee referendum, shall be effective with respect to services in employment covered by such agreement performed on and after the first day of January, A.D., 1958. (Code 1958, § 21-10) Sec. 18-21. Withholdings authorized. Withholdings from salaries, wages or other compensation of employees and officials for the purpose provided in section 18-19 hereof are hereby authorized to be made, and shall be made, in the amounts and at such times as may be required by applicable state or federal laws or regulations, and shall be paid over to the state agency designated by said laws or regulations to receive such amounts. (Code 1958, § 21-11) Sec. 18-22. Appropriations authorized. There shall be appropriated from available funds, derived from general fund revenue, such amounts, at such times, as may be required to pay promptly the contributions, assessments, and referendum costs required of the city as applicant or employer by state or federal laws or regulations, which shall be paid over to the lawfully designated state agency at the times and in the manner provided by law and regulation. (Code 1958, § 21-12) Sec. 18-23. Records, reports, adherence to regulations required. The city shall keep such records and make such reports as may be required by applicable state or federal laws and regulations, and shall adhere to the regulations of the state agency. (Code 1958, § 21-13) Sec. 18-24. Federal act adopted. The city does hereby adopt the terms, conditions, requirements, reservations, benefits, privileges, and other conditions thereunto appertaining, of Title II of the Social Security Act as amended, for and on behalf of all its officers and employees to be covered under the agreement. (Code 1958, § 21-14) Sec. 18-25. Custodian, withholding and reporting agent designated. The treasurer of the city is hereby designated the custodian of all sums withheld from the compensation of officers and employees and of the appropriated funds for the contribution of the city, and the treasurer of said city is hereby made the withholding and reporting agent and charged with the duty of maintaining personnel records for the purposes of this division. (Code 1958, § 21-15) Sec. 18-26. Referendum required. In the event that a majority of the eligible employees, as the term "eligible employee" is defined in Section 212(d)(3) of the Social Security Act, at a referendum held pursuant to the authority of this division, do not vote in favor of making applicable the coverage authorized herein, then the effect of this division shall immediately cease and determine, and moneys withheld, if any, pursuant to section 18-21 hereof shall be refunded. (Code 1958, § 21-16) Editor's note-Participation was in fact approved at the referendum required by the above section. Secs. 18-27--18-36. Reserved. 4 Boynton Beach Code DIVISION 3. FOR FIREMEN (Code 1958, § 21-19) Sec. 18-37. Benefits accepted; personnel covered. It is hereby declared to be the policy and purpose of the city to extend effective as of January 1, 1958, to employees and officials thereof in the position of fireman and not excluded by law nor excepted herein, the benefits of the system of Old Age and Survivors Insurance as authorized by the Federal Social Security Act and amendments thereto, and by Chapter 650, Florida Statutes, as amended; and to cover by such plan all of their services which constitute employment as defined in Section 650.02, Florida Statutes, performed in the employ of said city, except volunteers. (Code 1958, § 21-17) Sec. 18-38. Agreements authorized. The mayor is hereby authorized and directed to execute all necessary agreements and amendments thereto with the state agency, and to request the governor to authorize an employee referendum, for the purpose of extending the benefits provided by said system of Old Age and Survivors Insurance to the employees and officials of said city as specified in section 18-37 hereof, which agreement shall provide for such methods of administration of the plan by said city as are found by the state agency to be necessary and proper, and, subject to employee referendum, shall be effective with respect to services in employment covered by such agreement performed on and after the first day of January, A.D., 1958. (Code 1958, § 21-18) Sec. 18-39. Withholdings authorized. Withholdings from salaries, wages or other compensation of employees and officials for the purpose provided in section 18-37 hereof are hereby authorized to be made, and shall be made in the amounts and at such times as may be required by applicable state or federal laws or regulations, and shall be paid over to the state agency designated by said laws or regulations to receive such amounts. Sec. 18-40. Appropriations authorized. There shall be appropriated from available funds, derived from general fund revenue, such amounts, at such times, as may be required to pay promptly the contributions, assessments, and referendum costs required of the city as applicant or employer by state or federal laws or regulations, which shall be paid over to the lawfully designated state agency at the times and in the manner provided by law and regulation. (Code 1958, § 21-20) Sec. 18-41. Records, reports, adherence to regulations required. The city shall keep such records and make such reports as may be required by applicable state or federal laws or regulations, and shall adhere to the regulations of the state agency. (Code 1958, § 21-21) Sec. 18-42. Federal act adopted. The city does hereby adopt the terms, conditions, requirements, reservations, benefits, privileges, and other conditions thereunto appertaining, of Title II of the Social Security Act as amended, for and on behalf of all its officers and employees to be covered under the agreement. (Code 1958, § 21-22) Sec. 18-43. Custodian, withholding and reporting agent designated. The treasurer of the city is hereby designated the custodian of all sums withheld from the compensation of officers and employees and of the appropriated funds for the contribution of the city, and the treasurer of said city is hereby made the withholding and reporting agent and charged with the duty of maintaining personnel records for the purposes of this division. (Code 1958, § 21-23) Sec. 18-44. Referendum required. In the event that a majority of the eligible employees, as the term %ligible employee" is defined Pensions and Retirement 5 in section 218(d)(3) of the Social Security Act, at a referendum held pursuant to the authority of this division, do not vote in favor of making applicable the coverage authorized herein, then the effect of this division shall immediately cease and determine, and moneys withheld, if any, pursuant to section 18-39 hereof, shall be refunded. (Code 1958, § 21-24) Editor's note-Participation was in fact approved at the referendum required by the above section. to, an annuity, retirement allowance, or other benefit Secs. 18-45--18-54. Reserved. ARTICLE II. EMPLOYEES' PENSION PLAN DIVISION 1. GENERALLY Sec. 18-55. Definitions. The following words and phrases, as used in this article, unless a different meaning is plainly required by the context, shall have the following meanings, and the same and similar terms when used in connection with any civil service system or any other ordinance of the city shall not necessarily apply to the members of the retirement system hereby created except when specifically adopted: Actuarial equivalent. A benefit of equal value or equal cost when computed on the basis of such interest rates, mortality, and other actuarial tables as are in effect under the plan. Annuity. Annual payments for life to be paid in equal monthly installments with the first payment made as of the first day of the month in which retirement occurs and continuing until death with the last payment made as of the first day of the month in which death occurs. Annual earnings. Gross earnings received by the employee as compensation for services to the city, including overtime pay. Bonuses shall be excluded. Flexible benefits shall be excluded. Beneficiary. Any person in receipt of, or entitled as provided by this article. Board of trustees. For the purposes of this article, "board of trustees," "board" or "trustees" shall be construed to mean the members of the city council, unless the said council, by resolution, designates additional or substitute individuals to perform the duties and functions of such board of trustees. Charter. The charter of the city, as amended. City. The City of Boynton Beach, Florida. City's contribution. The annual contribution needed to fund actuarially the liability for annuities credited to employees on the basis of actuarial methods and assumptions approved by the council. Creditable service. Service in the employment of the city for which credit is allowed under the terms of this article. Such service shall be computed to the nearest whole month of completed service but not including any fractional parts of a month. Effective date of the plan. The date on which the operation of the plan is to commence for the purpose of determining eligibility, benefits and related matters, which is hereby fixed as the first day of April, 1968. Employee. All persons employed by the city and so classified under rules and regulations and personnel records of the city, including "probational" or permanent employees. Any appointed officer shall only be qualified under this plan under one office and that office being the one from which he receives the largest annual salary, compensation or remuneration. Independent contractors are excluded. Part-time employees working less than thirty (30) hours per week are excluded. Fund or pension fund. All sums of money paid into the plan by the city, and all gifts and contributions to the fund, accepted from other sources, together with earnings and appreciation of the same, less disbursements made from said money, in accordance with the plan, accepted from other sources, together with earnings and appreciation of the same, less disbursements made from said money, 6 Boynton Beach Code in accordance with the plan, or less any losses or depreciation, as asset value. Gender. The masculine pronoun shall include the feminine pronoun. General employee. A general employee shall include all employees, as defined in section 18-55 herein, other than policemen or firemen who have not elected to become members of this pension plan under the provisions of section 18-76. Member. Any person employed by the city who is included in the membership of the plan as either an original member or a new member. However, a member shall be limited and restricted to the definition of employee. Membership service. Service rendered as a full- time permanent employee since last becoming a member of the plan. Such service shall be computed to the nearest full month of completed service but not including any additional fractional parts of a month. New member. Any permanent employee who becomes a member of the plan after the effective date of the plan. Normal retirement date. The normal retirement date of a member shall be his normal retirement date as determined in accordance with the terms of the plan. Original member. Any permanent employee of the city who becomes a member as of the effective date of the plan. Past service. Continuous service rendered as a full-time employee from his date of employment to the effective date of the plan. Permanent employee. An employee who has completed his probationary period, been approved for permanent status by the department head under whom he is employed, or the city council, if approved by it, and has been certified by the city clerk or city manager as a permanent employee, or according to the personnel records of the city pertaining to such employee. Certification or approval for permanent status shall be subject to the rules of the career 1999 S-11 service system of the city. Plan, pension plan or employees' pension plan. The system of retirement benefits provided under this article. Plan year. A period of twelve (12) consecutive months measured on the basis of the fiscal year, or from any anniversary thereof. The fiscal year will commence October 1 of each year and end September 30 of each year. Retirement. Withdrawal from active employment by the city with retirement income granted under the provisions of this plan. Retirement annuity option. An optional form of retirement annuity as described in section 18-118. Social Security option. An optional form of retirement annuity as described in section 18-119. Spouse. The spouse of a member who was married to the member throughout the two-year period ending on the date of the member's death. Total and permanent disability. Includes any disablement caused by sickness or accident which prevents the member from working at any job for wage or profit and which will continue for the remainder of the member's life. The determination of whether or not a member is totally and permanently disabled shall be made by the City's Long Term Disability Company. Treasurer. The treasurer of the plan is the city finance officer. (Code 1958, § 21-25; Ord. No. 90-6, § 1, 4-17-90; Ord. No. 90-41, § 2, 9-18-90; Ord. No. 99-14, passed 6-1-99) Sec. 18-56. Establishment of system. A pension and retirement system for full-time permanent employees in the service of the city is hereby established to provide retirement benefits as provided by this article. It shall be known as the Employees' Pension Plan of the City of Boynton Beach, Florida. (Code 1958, § 21-26) Pensions and Retirement 7 Sec. 18-57. Future changes in the operation of plan. It is contemplated, and all original and new members of the plan shall be deemed to have notice, that the city commission of this city may in the future decide that it is in the best interests of the city and the members of the plan to modify or terminate trust agreements or contracts entered into with an insurance company or companies, to exercise options available to the city under the terms of such trust agreements or contracts, or to select another insurance company, trust, or other financial institution, as the depository for pension funds. (Code 1958 § 21-27) Sec. 18-58. Power to amend or terminate. The city commission shall have continuous power to amend this article as provided by its charter, including the power to suspend or discontinue contributions or to terminate the plan, provided that no such amendment shall (a) revest any part of the pension fund of the city, or (b) make possible the diversion of the pension fund, or any part thereof, to any person other than the exclusive benefit of the members of the plan. (Code 1958, § 21-28) Sec. 18-59. Discontinuance of contributions. If the city permanently discontinues its contributions to the plan without terminating the plan, the assets of the pension fund, as of the last day of the plan year in which such discontinuance becomes effective, shall be deemed to be vested in the members of the plan on such date in the manner described in section 18-60, except that no distribution of assets shall be made in accordance with such vested right until the member entitled thereto retires or terminates his employment with the city. For the purposes of this section, the city shall be deemed to have permanently discontinued contributions if as of the last day of any plan year the unfunded liability is determined to be greater than the sum of its unfunded liabilities as of the effective date of the plan and any additional unfunded liabilities due to subsequent plan amendment or change in actuarial assumptions. (Code 1958, § 21-28.1) Sec. 18-60. Termination of plan. In the event the plan is terminated, the board of trustees shall cause the assets of the plan to be valued as of the date of termination. Such assets shall be allocated to active employees first to the extent of their individual contributions to the plan. Any assets in excess of employee contributions shall then be allocated to retired employees in the proportion that such assets bear to the actuarial value of the benefit which the retired employees are receiving. If after such allocation, any assets then remain, such additional assets shall be allocated to active employees in the ratio that the liability for benefits accrued by such employee which is in excess of their individual contribution bears to the aggregate liability for all such employees. (Code 1958, § 21-28.2) Sec. 18-61. City contribution irrecoverable. It shall be impossible for any contributions made by the city under this plan to be used for or diverted to purposes other than the exclusive benefit of the members and their beneficiaries; except that if after all liabilities of the plan have been paid, any balance shall remain in the trust fund due to erroneous actuarial computations, such balance may be returned to the city. (Code 1958, § 21-28.3) Sec. 18-62. Fraud and deceit prohibited; penalty. Whosoever with intent to deceive shall make or cause to be made any statement, report, certificate, election, notice, claim or other instrument, authorized or required under this article, whether of the enumerated classes or otherwise, which shall be untrue, or who shall cause to be falsified any record comprising any part of the operation or administration of the plan contemplated by this article, shall be punished by a fine, not exceeding five hundred dollars ($500.00), or by imprisonment not exceeding ninety (90) days, or by both such fine and imprisonment. Any such violation shall also be 8 Boynton Beach Code punishable as provided under the laws of the State of Florida. (Code 1958, § 21-29) in such year, or 1996 S-4 Sec. 18-63. Temporary limitations. Until April 1, 1978, but not thereafter, unless the full current costs of the plan have not been met as of April 1, 1978, in which event the provisions of this section will be continued until the first date thereafter when the full current costs have been met, the provisions of this plan, shall be subject to the following limitations with respect to any of the twenty-five (25) highest paid employees of the city as of April 1, 1968, whose prospective retirement benefits exceed $1,500.00 per year: (a) If the plan is terminated the benefits shall not exceed those provided by the city's contributions equal to the greater of the following amounts: (1) $20,000.00. (2) The amount computed by multiplying twenty per cent (20%) of such member's average annual compensation (not exceeding $50,000.00) received from the city for five (5) years preceding the date of termination by the number of years intervening between April 1, 1968, and such termination. (b) If a member retires from the city's employ, the amount of the benefits provided by the plan shall be paid to him only so long as the city continues to meet the full current costs of the plan; otherwise the benefits available to such member in any year, beginning with the year in which the city first fails to meet the full current costs of the plan shall be limited to the annual benefits which could have been provided under the plan with an amount equal to the sum to which he would then be entitled under paragraph (1) of subsection (a) of this section had this plan then terminated, plus his pro-rata share of all supplemental payments made by the city in any later year or years, for all members a b Y t P a r a g r a P h ; P r 0 v i d e d h 0 w e v e r t Y e a r s h a 1 1 n 0 t e x c e e d t h e a g g r e g a t e e m P 1 0 Y e r c o n t r i b u r r e n t t e ltl 0 a ltl e ltl W t r e in e n t b e n e f i t S w t e r e u P 0 n 1TI a b d i 0 0 W h i C h S U C h m e m b e r w o u 1 d t h e n b e e n t i t 1 e d U n d e r P a r a a n w e r e t t A e x c e s s b e n e f i t S t w b d i 0 1TI a a v a i 1 a b 1 t h i i t I1 m t t h f U 1 1 C U r r n t C 0 S t S 0 f t h P 1 a n a n d ( 2 ) t h i n g Y e a r s h a 1 1 n 0 t e x c e e d a n a rn 0 U n t W h i C h W h e n a d d e d t t S u S e c t i 0 n w i 1 1 n o e x c e e d t a rn 0 u n t t w individual who was a member of the Pension Plan i f t P 1 w e r e t t For the purposes of this section the full current costs of the plan shall be deemed to have been met as of any date if the city shall have contributed to the trustee sums sufficient so that the initial deficit, if any, in the pension fund shall not have increased. (Code 1958, § 21-29.1) § 18-64 Limitation on compensation. Compensation in excess of the limitations set forth in Section 401 (a)(17) of the Internal Revenue Code shall be disregarded. The limitation on compensation for %ligible employees" shall not be less than the amount which was allowed to be taken into account under the Plan as in effect on July 1, 1993. For this purpose, an "eligible employee" is an Pensions and Retirement 8A before the first plan year beginning after September 30, 1996. (Ord. No. 96-36, § 1, 7-16-96) 1996 S-4 Secs. 18-65--18-73. Reserved. DIVISION 2. MEMBERSHIP AND SERVICE Sec. 18-74. Original members. All full-time, permanent city employees on the effective date of the plan who do not currently participate in either the pension plan for firemen or 8B Boynton Beach Code Pensions and Retirement 9 the pension plan for policemen in Boynton Beach may elect to become original members of the plan. Eligible employees who do not elect to become original members of the plan will not become original members. (Code 1958, § 21-30) Sec. 18-75. New members. New, full-time, general city employees will participate in the plan on the first day of their becoming a full-time general city employee. Full- time, permanent employees who do not elect to become original members of the plan may elect to become new members of the plan as of any anniversary of the effective date of the plan by giving written notice to the city manager at least one month before such anniversary date. (Code 1958, § 21-31) Sec. 18-76. Policemen. Policemen who do not elect to become members of the pension plan for policemen in Boynton Beach when first eligible, or who elect not to participate in the pension plan for policemen within twelve (12) months alter employment, will become members of the General Employees' Pension Plan of the City of Boynton Beach on the first day of the month following, or coinciding with, the date of their election not to participate in, or to terminate from, the pension plan for policemen, provided they qualify under section 18-75 as full-time permanent general employees. (Code 1958, § 21-32; Ord. No. 90-47, § 1, 10-3-90) Sec. 18-77. Creditable service. Creditable service for the purpose of calculating benefits for general employees shall consist of the member's service rendered by the employee since he last became a member, plus past service, rendered continuously since the employee's last date of employment as defined in section 18-78 to the date of his separation from service by reason of death, disability, termination of employment or retirement but not beyond the employee's normal retirement date as described in section 18-111 if such date falls on or after January 1, 1979, except that an employee who delays retirement and who elects to continue to contribute after normal retirement date as provided in section 18-95 shall receive creditable service after normal retirement date up to the date of delayed retirement. (Code 1958, § 21-33; Ord. No. 79-20, Art. I, § 4, 4-17-79; Ord. No. 80-51, § 4, 12-16-80) Sec. 18-78. Service before effective date of plan. Credit will be given original members for continuous service to the city from their dates of employment (or most recent date of employment if service has not been continuous) to the effective date of the plan, with the exception as outlined in section 18-77. (Code 1958, § 21-34) Sec. 18-79. Termination of membership. (a) Should any member separate from the service of the city for any reason except his retirement, death or termination after having completed five (5) years of credited service or after total and permanent disability he shall thereupon cease to be a member of the plan and his credited service at that time shall be forfeited by him except as provided by section 18-117 of this article. (b) A member of the plan who transfers to employment at the City of Delray Beach at the South Central Regional Wastewater Treatment and Disposal Facility and subsequently becomes a member of the City of Delray Beach pension plan shall not be considered to have terminated service with the city for the purpose of determining whether or not he has completed five (5) or more years of service unless and until such member either withdraws his contribution under this plan as described in section 18-17 but for the purpose of determining the amount of annuity described in section 18-111 or 18-114 such service after transfer shall not be counted. (Code 1958, § 21-35; Ord. No. 78-15, § 1, 4-4-78; Ord. No. 78-30, § 1, 8-1-78; Ord. No. 78-38, § 1, 9-5-78; Ord. No. 00-75, § 2, 1-2-01) 2001 S-15 10 Boynton Beach Code Sec. 18-80. Leaves ofabsence. Any member who has been granted a leave of absence (except for vacations, extended vacations, sick leave, extended sick leave, or leaves of absence of benefit to the city and approved by the city manager) shall be allowed service credit earned prior to the start of leaves of absence, and with service credit to resume upon return to employment. (Code 1958, § 21-36) Sec. 18-81. Military and related service. When any member is inducted or enlists into any of the Armed Forces of the United States, or enlists in any reserve component, enlists in the United States Coast Guard, or in any other reserve component, or enters upon active duty in the Armed Forces of the United States, the United States Coast Guard, or the United States Public Health Service in response to an order or call to active duty, and is subsequently reemployed by the city as a full-time permanent general city employee under such circumstances that he thereby becomes entitled to return to work for the city within the time that reemployment rights are granted to him by law, he shall again become a member of the plan and shall be given service credit for the credited service he had accumulated before entering military or related service and shall again accumulate additional credited service commencing with the date of his reemployment by the city. If approved by the board such member may also be granted service credit for the period of time spent in military or related service. (Code 1958, § 21-37) Sec. 18-82. Reemployment. When any former employee of the city is reemployed, he will become a member of the plan upon reemployment as a full-time permanent general city employee. When a former employee of the city is reemployed and said employee had withdrawn contributions previously made to the plan, he may have forfeited credited service reinstated upon satisfaction of each of the following conditions: (1) The break in city employment is not more than sixty (60) months; and (2) The plan is paid the total amount previously withdrawn (consisting of accumulated member contributions plus any interest previously paid by the plan on those contributions). This total amount is brought forward with interest for the total number of months from the date of withdrawal to the date of repayment, calculated to the nearest month. This calculated amount equals the amount to be repaid to the plan in a lump sum. The interest to bring forward the total amount will be at the equivalent compound monthly rate derived from the earning rate assumed by the actuary in the most recent actuarial valuation submitted to the Division of Retirement pursuant to Florida Statute Chapter 112, part VII. (3) Repayment of withdrawn contributions, interest thereon, and administrative processing fee, must be made no later than one year from the date the Fund's Actuary delivers a repayment calculation to the employee. (4) The application is made within one (1) year of reemployment by the City. When a former employee of the city is reemployed and said employee had previously terminated his employment with a vested right to a deferred annuity, provided he had not withdrawn contributions previously made to the plan, he will again become a member of the plan as of the date of his reemployment as a full-time permanent general city employee. The credited service which such reemployed member had accumulated as of the date of his prior termination of employment shall be reinstated and he shall accrue additional credited service from the date of his reemployment. Any benefits to which such reemployed member subsequently becomes entitled shall be based on the sum of his credited service prior to his previous termination of employment plus credited service subsequently to his reemployment. (Code 1958, § 21- 38; Ord. No. 96-04, § 1, 3-5-96; Am. Ord. No. 98-02, § 1, 1-20-98; Am. Ord. No. 98-12, § 1, 4-21-98) 2001 S-15 Pensions and Retirement 11 Secs. 18-83--18-92. Reserved. DIVISION 3. CONTRIBUTIONS AND FUNDING Sec. 18-93. Pension fund designated. The City of Boynton Beach Employees' Pension Fund shall be the fund in which shall be accumulated all contributions made for the Employees' Pension Plan of the City of Boynton Beach and from which shall be paid benefits and other payments in accordance with this article. (Code 1958, § 21-39) Sec. 18-94. Employee contributions required. Subject to the limitations imposed in section 18- 95, employees who are members of the plan shall contribute seven percent (7%) of monthly earnings to the fund for that month. (Code 1958, § 21-40; Ord. No. 79-20, Art. I, § 2, 7-17-79; Ord. No. 80-51, § 2, 12-16-80; Ord. No. 88-43, § 2, 9-21-88; Ord. No. 00- 75, § 3, 1-2-01) Sec. 18-95. Deduct contributions from pay. The director of finance shall cause contributions provided for in section 18-94 of this article to be deducted from the compensation of each member on each and every payroll for each and every payroll except that members who attain normal retirement date on or after January 1, 1979, shall not be required to make contributions after they attain normal retirement date if they continue in the employ of the city beyond such date. An employee who delays retirement as provided in section 18-113 may elect to continue to have contributions deducted during such period of continued employment. The election to continue contributions may be made at normal retirement date only. A member's contribution provided for herein shall be made notwithstanding that the minimum compensation provided by law for any member shall be changed thereby. Each member shall be deemed to consent and agree to the deduction made and provided for herein and payment of his compensation less said deduction shall be full and complete discharge of all claims and demands whatsoever for the service rendered by said member during the period covered by such payment, except as to the benefits provided by this plan. The director of finance shall cause the amount to be deducted from the compensation of each member for each and every payroll as authorized by this article and when deducted shall be paid into the fund of the plan and shall be credited to the individual member from whose compensation said deduction was made. (Code 1958, § 21-41; Ord. No. 79-20, Art. I, § 3, 7-17-79; Ord. No. 80-51, § 3, 12-16-80) Sec. 18-96. Return of accumulated employee contributions. (a) Should any member cease to be an employee of the city for any reason except his retirement, disability or death, he shall be paid all of his accumulated contributions standing to his credit in the fund, as he shall demand on forms furnished by the city commission in accordance with section 18- 117. (b) Except as otherwise provided in this plan, upon the death of a member, his accumulated contributions standing to his credit in the pension fund, at the time of his death, shall be paid to such person or persons as he shall nominate by written designation duly executed and filed with the city commission. If there shall be no such designated person or persons surviving the said member, his said accumulated contributions shall be paid to his estate. (Code 1958, § 21-42; Ord. No. 78-15, § 2, 4-4-78) 2003 S-20 Repl. 12 Boynton Beach Code Sec. 18-97. Gifts to fund. All gifts, devises and bequests to the plan shall be credited to the pension fund. The city may accept gifts, devises, bequests, or appropriations for the fund from any source, but shall have the right to reject same if they are so conditioned as to conflict with the charter or this article, or to make the administration of the same unreasonably difficult. (Code 1958, § 21- 43) Sec. 18-98. City to bear costs in excess of contributions and gifts. All costs of the pension plan in excess of sums received through employee contributions, gifts, devises, bequests, and from other sources, will be borne bythe city. (Code 1958, § 21-44) Sec. 18-99. City's contribution. The city shall pay into the fund amounts required in addition to funds received from employee contributions, gifts, devises, and so forth, to provide the benefits under the plan, as shall be determined by an actuarial investigation as provided in Division 5. (Code 1958, § 21-45) Sec. 18-100. Financial management. Employee contributions, gifts, bequests, devises and appropriations to the fund shall be received by the director of finance who shall be liable for the safekeeping of the funds under his bond. The director of finance shall transfer to the pension fund all pension funds appropriated by the city commission. The director of finance shall be responsible for making all payments and disbursements from the pension fund. (Code 1958, § 21-46) DIVISION 4. RETIREMENT AND RETIREMENT BENEFITS Sec. 18-111. Normal retirement. (a) An employee who retires on or after January 1, 1977, but before January 2, 2001, will normally retire on the first day of the month following his or her sixty-second (62nd) birthday or the first day of the month following ten (10) years of completed service with the city, whichever is later. (b) An employee who retires prior to January 1, 1977, will normally retire on the first day of the month following his sixty-fifth (65th) birthday or the first day of the month following ten (10) years of completed service with the city, whichever is later. (c) On or after January 2, 2001, an employee will be eligible to retire on the first day of the month following his or her fifty-fifth birthday and the completion of twenty-five (25) years of services, or his or her sixty-second (62nd) birthday and the completion of five (5) years of services, or the completion of thirty (30) years of services regardless of age. (d) In the event of normal retirement, the retiring employee shall be entitled to and shall be paid an annuity payable monthly beginning with the month of retirement and continuing until death. The amount of annuity to which the retiring employee will be entitled will be calculated as follows: Secs. 18-101--18-110. Reserved. W h 0 P r i 0 r t 0 0 C t 0 b e r 6 1 9 8 8 S h a 1 1 b e e 1 i g i w t P r 0 v i S i 0 n S 0 t P 1 $ i $ 0 W i t h r e s P e c t t 0 t h 0 S e e m P 1 0 Y e e s w h 0 r e t i r e d P r i 0 r t 0 r e r e in e n t b e n e f i t P 2002 $-18 Rcpl. Pensions and Retirement 12A (2) (3) increased by twenty-five percent (25%) as of that date; and, provided further, that effective as of October 6, 1988, the monthly benefit payable to each individual who retired before such date shall be increased by two percent (2%) of each such individual's current benefit times the number of full years between each such individual's most recent retirement date and October 6, 1988. An employee who retires prior to October 6, 1988, shall be eligible to receive a monthly benefit computed in accordance with the provisions of the plan as in effect as of the date of his retirement. An employee who retires on or after October 6, 1988, but before January 2, 2001, shall be entitled to, and shall be paid, an annuity payable monthly beginning with the month of retirement and continuing until death. The amount of the annuity to which the retired employee will be entitled will be equal to fifty percent (50%) of his final average monthly compensation plus seventy-five percent (75%) of the excess over eight hundred twenty-five dollars ($825.00) of such final average monthly compensation; provided, however, the employee has completed at least twenty-five (25) full years of credited service at his normal retirement date. If the employee's credited service at normal retirement date is less than twenty- five (25) full years, the aforesaid amount shall be reduced for the shorter service by multiplying it by a fraction, the numerator of which is the employee's full years and fractions thereof in months of credited service at normal retirement date and the denominator of which is twenty-five (25) years. An employee who retires on or after January 2, 2001, shall be entitled to and shall be paid an annuity in the amount of three percent (3%) times the number of years of his or her service to the City times his or her Final Average Monthly Compensation, subject in 5 % O h i O r h F i A v e r a g M h 1 Y C n S a t i O n r P 0 S e s o f t h i S S e c t i 0 n S h a 1 1 rn e a n t h e rn 0 n t h 1 Y a V e r a g C 0 n S e c u t i v C a ltl 0 n 0 C C u r r i n g i t 0 n e c e d i n g h i n 0 r in a 1 r e r in n t d S u C h d f t P r e c e d i n g a c r e r e in e n t d n e t C 0 n t i n u e t C 0 n t r i b u t e a n 0 r in a 1 U S e d i n t h e a b 0 V e s e n t e n C e s h a 1 1 m e a n g r 0 S S e a r n i n g t 0 t h e c i t Y i n C 1 U d i n g 0 V e r t i m e P a Y a n d S i C k P a Y P a i C b 0 n u S e s (5) Elective Benefits. The City may, from time t t O e b e n e f i t S t e m e e s c o n t r i b u t i O n S a n w o u 1 (e) fl;ommencing October 1, 2001, in lieu of receiving a cost of living increase, retirees may be eligible tonreceive a supplemental pension distribution payable 1~ the following July 1st, the amount of which shall be determined as of September 30th of each year. The amount of the distribution is equal to the amount the net investment return exceeds the assumed rate of investment return divided equally among alt participants whose benefit was in pay status as ~f the previous October 1st. The amount of the distribution shall be the same for all eligible retired members regardless of years of service, age, years retired, or amount of monthly benefit. In no event sh~ll the supplemental benefit exceed the average nmnthly benefit of those retirees receiving a monthly benefit calculated as of the previous October 1st. a 2002 S-18 12B Boynton Beach Code (1) The actuary for the pension fund shall determine the rate of investment return on the pension fund assets during the twelve- month period ending each September 30th, and shall be the rate reported in the most recent actuarial report. (2) The actuary for the pension fund shall, as of September 30th, determine the actuarial present value of future pension payments to current retirees. (3) The supplemental benefit shall not be paid in any year that the net investment does not exceed the assumed rate of investment return. (4) If there shall be a supplemental distribution, board of trustees shall authorize a supplemental pension distribution, unless the administrative expenses of distribution exceed the amount available for distribution. (5) The eligible persons to receive a supplemental distribution are retirees, including participants in the DROP, and their beneficiaries. (6) For members who participate in the DROP, as provided in § 18-127 of the plan, the supplemental pension distribution, if distributed, shall be deposited in the member's DROP account during their term of the participation in the DROP. (Code 1958, § 21-47; Ord. No. 79-20, Art. I, § 5, 7-17- 79; Ord. No. 80-51, § 5, 12-16-80; Ord. No. 88-43, § 3, 9-21-88; Am. Ord. No. 98-15, § 1, 5-19-98; Ord. No. 00-75, § 4, 1-2-01; Ord. No. 02-026, § 2, 6-18-02) Sec. 18-112. Minimum benefit. In no event shall an employee's monthly retirement benefit determined under sections 18-111, 18-113, 18-114 or 18-117 be less than the monthly retirement benefit which such employee would have received based on his accrued benefit as of April 30, 1975, under the provisions of the plan as in effect immediately prior to May 1, 1975. (Code 1958, § 21- 48) Sec. 18-113. Delayed retirement. Any employee who does not desire to retire on his normal retirement day may delay retirement. Provided, that any employee who reaches seventy (70) years of age who does not desire to retire must make written application to the city clerk or city manager for retention in a regular or part-time employment subsequent to his seventieth birthday showing that the same is in the best interests of the city by reason of his special knowledge, relative efficiency, difficulty of replacement, or other similar or extraordinary factors. Upon the recommendation of the city manager and approval of the city commission, the employee shall be retained by the city for a period not to exceed one (1) year following the date of his normal retirement. Nevertheless, similar additional applications for renewal or retention in employment may be made. In the event of delayed retirement of an employee he shall be entitled to and shall be paid an annuity payable monthly beginning with the month of actual retirement and continuing until death. The amount of such annuity shall be equal to the amount of annuity he could have received had he retired at his normal retirement date except that any employee who had postponed retirement and elected to continue to make contribution after his normal retirement date as provided in section 18-111 shall be entitled to a benefit commencing at his delayed retirement date based upon final average compensation and credited service as of his delayed retirement date. (Code 1958, § 21-49; Ord. No. 79-20, Art. I, § 1, 7-17-79; Ord. No. 80-51, § 1, 12-16-80) 2002 $-18 Pensions and Retirement 13 Sec. 18-114. Retirement prior to normal retirement date. (a) The early retirement date of an employee shall be the first day of any month prior to his or her normal retirement date and following, or coinciding with, the date of actual retirement, provided (s)he has then completed less than thirty (30) years of service, but at least: (a) ten (10) years of credited service and has attained his or her fifty-fifth (55th) birthday; or (b) twenty-five (25) years of service and has attained fifty-two (52) years of age. An employee who retires on an early retirement date shall be entitled to a deferred annuity payable beginning at his or her normal retirement date or, if (s)he so elects, to an immediate annuity beginning at his or her early retirement date. The amount of the deferred annuity will be equal to a benefit determined as for normal retirement under the provision of section 18-111, but based on the employee's final average monthly compensation as of his or her early retirement date and his or her credited service as of such early retirement date. If the retiring employee elects to receive an immediate annuity commencing at his or her early retirement date, the amount of such immediate annuity shall be the deferred annuity described in the preceding sentence, less one-quarter of one percent (.25%) times the number of months preceding his or her normal retirement date. said employee to the fund, up to the time of his death, shall be paid to the beneficiary of the deceased employee, together with interest thereon at the rate of three per cent (3%) per annum to January 1, 1977, and five per cent (5%) thereafter, computed in the manner provided in section 18-117, unless the employee has reached normal retirement age and the retirement annuity option provided in section 18-118 has been elected by the employee, in which case pension payments will be made as though the employee had retired on the date before he died. (b) On or after January 2, 2001, in the event of the death of an employee prior to the receipt by such employee of any of the benefits under the provisions of this article, then the beneficiary of the deceased employee who was not vested, may receive the total amount of contributions by said employee to the fund, up to the time of his or her death, together with the interest thereon at the rate of five percent (5%) per annum thereafter, computed in the manner provided in section 18-117. The beneficiary of an employee who became vested prior to their death may receive the pension benefit earned by the employee as though the employee had retired on the date before (s)he died, payable either as an immediate lump sum payment or as a monthly survivor benefit for the remainder of the survivor's life. (b) Prior to January 2, 2001, if the employee retires after achieving fifty-two (52) years of age and twenty-five (25) years of service, the immediate annuity shall be the actuarial equivalent of the immediate annuity received had the employee retired at fifty-five (55) years of age with twenty-five (25) years of service. (Code 1958, § 21-50; Ord. No. 88-43, § 4, 9-21-88; Ord. No. 095.01, § 1, 2-21-95; Ord. No. 00-75, § 5, 1-2-01) (1) The immediate lump sum payment is equal Sec. 18-115. Death before retirement date. (a) Prior to January 2, 2001, in the event of death of an employee prior to the receipt by such employee of any of the benefits under the provisions of this article, then the total amount of contributions by h e 1TI C 0 n t r i b u t i 0 n S t 0 g e t h e r w t i e r e 0 r t 1 S u 1TI V a o t a c u a r i a 1 C a d t e 1TI C O U 1 d h a v e r e (2) The momhly survivor benefit would be the a c u a r i a 1 n g a t t h e e a r 1 i e s t d a t e t h e m e m b e r c o u 1 d h a v e r e t i r e d Y a r S t t e ltl a a t t 0 d t h e b e n e f i 2002 S-18 14 Boynton Beach Code fifteen (15) years younger than the employee. The monthly survivor benefit is payable at the earliest date the employee could have retired. (3) If the earliest date that the employee could have retired is before the normal retirement date, then the accrued death benefit will be subject to the early retirement penalty of three percent (3%) for each year prior to what would have been the employee's normal retirement date. (4) If the beneficiary selects to receive the monthly survivor benefit but predeceases the date such payments commence, the employee's estate shall receive a refund of the employee's estate shall receive a refund of the employee's contributions, together with the interest thereon at the rate of five percent (5%) per annum. (Code 1958, § 21-51; Ord. No. 00-75, § 6, 1-2-01; Ord. No. 02-027, § 2, 6-18-02) Sec. 18-116. Death after retirement date. In the event of the death of a retired employee prior to the receipt by said employee of benefits under this article in an amount equal to the total amount contributed by such employee to the pension fund, together with interest thereon at the rate of three per cent (3%) per annum to January 1, 1977, and five per cent (5%) per annum thereafter computed to the date of the employee's retirement as provided in section 18-117, then the excess of such contribution plus interest to the date of retirement over the amount of the benefits received by such employee under this section shall be paid to the beneficiary of such deceased employee unless the retired employee has elected the retirement annuity option provided in section 18-118 in which event benefits will be paid in accordance with such option. The designated beneficiary of an employee who retired prior to January 1, 1977, but who dies subsequent thereto, shall be eligible to receive benefits computed in accordance with the provisions of the plan in effect as of the date of such employee's retirement. (Code 1958, § 21-52) Sec. 18-117. Termination of services prior to eligibility for retirement. In the case of voluntary resignation or discharge of any member of the plan, the total amount contributed by said employee to the fund up to the time of his resignation or discharge (together with interest at the rate of three per cent (3%) per annum to January 1, 1977, and five per cent (5%) per annum thereafter compounded from the end of the year in which contributions are made to the date of termination of service) shall be returned and said employee shall immediately cease to be a member of the plan and shall not be entitled to any other benefits from the plan unless the member has completed five (5) years of credited service under the plan or is totally and permanently disabled. If he has completed five (5) or more years of credited service or is totally and permanently disabled he shall be fully vested and entitled to a deferred annuity commencing at his normal retirement date. The monthly amount of such deferred annuity shall be an amount computed in the same manner as the deferred annuity described for early retirement in section 18-114. For the purpose of such calculation, the member's date of termination of employment shall be considered as his early retirement date. 2002 $-18 Pensions and Retirement 15 An employee who is entitled to a deferred annuity under the provisions of this section 18-117 may waive his right to such deferred annuity and accept in lieu thereof the total amount he has contributed to the pension fund (together with interest thereon as described above) up to the time of his resignation or discharge. In the event of resignation or discharge of any member as described in this section 18-117, any contributions theretofore made by the city relating to such member, with accruals thereon, which have not vested in accordance with the provisions of this section 18-117, shall be used to reduce contributions to be made thereafter by the city and shall not be used to increase the benefits of any member. (Code 1958, § 21-53; Ord. No. 00-75, § 7, 1-2-01) Sec. 18-118. Retirement annuity option. At any time prior to or upon the date of normal retirement, a member may elect to receive annuity benefits payable under the plan with the approval of the pension board in the form of a joint and survivor annuity instead of the normal annuity form, which shall be the actuarial equivalent of the annuity which he would normally receive. A member may rescind such election at any time prior to his or her normal retirement date. Under the joint and survivor annuity, two-thirds (2/3) of the retirement annuity income continues to the surviving contingent annuitant, until his or her death. The election of a joint and survivor annuity shall be deemed to be automatically cancelled in the event of the death of the joint annuitant prior to the member's actual retirement. (Code 1958, § 21-54; Ord. No. 85-46, § 1, 9-3-85) Sec. 18-119. Social Security option. An employee who retires before he is entitled to receive monthly benefits under the Federal Social Security system may elect to receive increased pension plan benefits before Social Security benefits begin, and decreased pension plan benefits thereafter to obtain, insofar as practical, a level total yearly retirement income from two (2) sources. The amounts he will receive, both before and after he becomes eligible for Social Security payments, shall be the actuarial equivalent of the benefits to which he would have been entitled had he not selected this option. (Code 1958, § 21-55) Sec. 18-120. Member records; status statements; beneficiary designations. A separate record of account shall be maintained for each member and among other things shall show his service record, his accumulated contributions to the plan, his exact age, his designation of beneficiary, together with any such information as is necessary for an active and comprehensive determination of his status under this plan. A member of the plan shall complete and file with the board a designation of beneficiary which names the person who is to receive any death benefits that may become payable under sections 18-115 and 18-116 other than benefits paid to a surviving spouse. Such designation of beneficiary is to be completed by the employee at the time he initially becomes a member of this plan. An employee who has failed to designate a beneficiary at the time of his initial membership in this plan may file a designation of beneficiary at any time thereafter. A member may change his designation of beneficiary at any time by filing a new designation of beneficiary form. If a member has failed to file a designation of beneficiary, any death benefits which would normally be paid to a designated beneficiary shall be paid to the estate of the member. (Code 1958, § 21-56) Sec. 18-121. Benefits unassignable and not subject to process. The right of any member or any beneficiary to any benefits under the plan or any other right accrued or accruing to any persons under the provisions of the article shall not be subject to execution, garnishment, attachment, the operation of any bankruptcy or insolvency law or any other process of law whatever, and shall not be subject to assignment, pledge or hypothecation unless expressly authorized in this article. (Code 1958, § 21-57) 2001 S-15 16 Boynton Beach Code Sec. 18-122. Errors, corrections and adjustments. Should any change or error in the records of the plan be discovered, or any error in any calculation be made resulting in any member or beneficiary receiving from the plan more or less than he was entitled to receive, the council shall have the power to correct such error, and so far as possible to adjust the payments thereafter to be made in such a manner that the actuarial equivalent of the benefit to which such member or beneficiary was correctly entitled, be paid. (Code 1958, § 21-58) Sec. 18-125. Re-employment of members receiving benefits or full vested who leave the city. The city may at its option employ any person receiving benefits under this chapter, except for disability benefits. Sec. 18-123. No interest in the fund. No member, employee, beneficiary or other persons shall have any interest in, or right in, or to the fund or any part thereof, or any assets comprising the same, except only as to the extent expressed and provided in this article. (Code 1958, § 21-59) Sec. 18-124. Payments in case of legal or other disability. Whenever and/or as often as a person entitled to payments hereunder shall be under legal disability, or, in the sole judgment of the board, shall otherwise be unable to apply such payments to his best interests and advantage, the board in the exercise of its discretion may direct that all or any portion of the benefits of such members payable in any one or more of the following ways: (a) Directly to such person; (b) To his legal guardian or conservator; (c) To his spouse, or to any person to be expended for his benefit. The decision of the board shall, in each case, be final and binding on all persons including the affected member of the plan. (Code 1958, § 21-60) 1 e a v e s t h e e m P 1 0 Y 0 f t h e c i t Y a f t e r v e s t i n g 0 r r e c e i V C a n b r e a t 0 P t i 0 n 0 t C 0 n a 0 f t h P 1 a n t h Y a r 0 r W i 1 1 b r C i V i n g b n f i t S P i t C P e n S i 0 n P 1 f h i P t P 1 P u r S u a n t t t P 1 a n S P r 0 v i S i 0 n S m e n t S h a 1 1 n 0 t e x c e e d 0 n e t h 0 U S a n d S i X h U n d r e d 6 0 0 © © 0 S r v i C e c o u n t t 0 w a r d C r d i t f t e in e n S (Ord. No.z80-52, § 1, 12-16-80; Ord. No. 93-31, § 1, 9-7-93) t i O Sec. 18-1t6. Disability retirement benefits. (a) fkny member with less than 10 years of service wlfo receives a medically substantiated injury, disease or disability, which injury, disease or disability totally and permanently disabled him/her to the extentllhat, in the opinion of the Long Term DisabilityeCompany, he/she is unable to perform all the material duties of his/her occupation, and in the event of recovery prior to the otherwise normal retiremenlmtate, and return to full-time employment with the Ctity of Boynton Beach, credit for service during thdperiod of disability shall be granted for purposes of subsequent retirement benefits. Y 1999 S-11 Pensions and Retirement 17 (b) For purposes of this Plan, if the employee is found to be totally and permanently disabled by the City's Long Term Disability Company, the employee will be deemed to be totally and permanently disabled under the Plan. If the employee disagrees with the Long Term Disability Company's determination, an appeal must be made to the Pension Board in a timely manner. The Board shall conduct a preliminary determination as to whether the member is permanently and totally disabled based upon the written documentation presented. If the Board does not grant the application based on the written documentation, it shall inform the member in writing of the reasons for the denial of the application. The member may, within thirty (30) days of receipt of the Board's preliminary denial, request a full evidentiary hearing before the Board. Said hearing will be conducted consistent with the principles of due process and the rules of evidence generally applicable to administrative proceedings shall apply. The Board shall have the power to issue subpoenas compelling the attendance of witnesses. At said hearing the applicant may present such oral and written evidence as the applicant deems necessary to establish its burden of proof. The Board may appoint special counsel as an advocate to cross-examine witnesses and to offer argument in opposition to the application. The attorney for the Board shall not serve both as advocate and as advisor to the Board in the same proceeding. The applicant and the Board shall have the right to examine and cross-examine all witnesses. The decision of the Board shall be based solely upon the evidence presented and the law applicable to this Plan. Following the conclusion of the hearing, the Board shall render an opinion in writing setting forth the reasons for the grant or denial of the benefit. In the event the disability is denied, the applicant shall have the right of judicial review by complaint for common law certiorari in the Circuit Court of Palm Beach County. The Board may prescribe rules of procedure to implement the provisions of this Plan relating to the conduct of disability hearings. (c) Disability exclusions. No member shall be granted a disability pension upon a showing to the satisfaction of the board: 1. That the disability resulted from an intentionally self-inflicted wound, injury or ailment, or 2. That the disability resulted from the use of narcotics, drugs or alcoholic beverages, or 3. That the disability resulted from a member's participation or involvement in riot, insurrection or unlawful assembly, or 4. That the disability resulted from a member's participation or involvement in the commission of a crime or unlawful act, or 5. That the disability resulted from injury or disease sustained by the member while serving in any armed forces. (Ord. No. 99-14, § 2, 6-1-99) Sec. 18-127. Deferred Retirement Option Plan. (a) A deferred retirement option plan (~DROP") is hereby created. (b) Eligibility to participate in the DROP is based upon eligibility for normal service retirement in the Plan. (c) Participation in the DROP must be exercised within the first thirty (30) years of employment; provided, however, that participation in the DROP, when combined with participation in the retirement plan as an active member may not exceed thirty-five (35) years. The maximum period of participation in the DROP is five (5) years. An employee's election to participate in the DROP plan shall be irrevocable and shall be made by executing a resignation notice on a form prescribed by the City. (d) Upon exercising the right to participate in the DROP, an employee's creditable service, accrued benefits and compensation calculation shall be frozen and shall utilize the average of the five (5) highest of the ten (10) years immediately preceding participation in the DROP as the compensation basis. Accumulated, unused sick and vacation leave shall be included in the 2001 S-15 18 Boynton Beach Code compensation calculation; provided, however, that a minimum balance of 120 hours of sick leave and 120 hours of vacation leave shall be maintained by the employee and excluded from this calculation. The retained leave balance, including any additions, shall be distributed at the conclusion of DROP participation and separation from service. (e) Payment shall be made into the employee's DROP account as if the employee had terminated employment in the City in an amount determined by the employee's selection of the payment option. (f) An employee's account in the DROP program shall earn interest in one (1) of two (2) ways. The selection of the earnings program shall be irrevocable and shall be made prior to the first deposit in the DROP account. The options are: (1) Gain or lose interest atthe same rate as the Plan; or (2) At an annual fixed rate of seven percent (7%). (g) An employee shall terminate service with the City at the conclusion of five (5) years in the DROP. (h) All interest shall be credited to the employee's DROP account on the last day of the month in which the member separates from service. In the event that a member dies while in the DROP, interest shall be prorated to the last business day of the month preceding the death of the member. (i) Upon termination with the City, an employee may receive payment within forty-five (45) days of the member requesting payment or may defer payment until a time not later than the latest date authorized by Section 401 (a)(9) of the Internal Revenue Code at the option of the member. 0) Payments from the DROP may be received as a lump sum installment payment or annuity, provided, however, that at all times, the DROP shall be subject to the provisions of the Internal Revenue Code. (k) No payment may be made from the DROP until the employee actually separates from service with the City. (1) If an employee shall die during participation in the DROP, a survivor benefit shall be payable in accordance with the form of benefit chosen at the time of entry into the DROP. (m) Upon commencement of participation in the DROP, the member shall no longer be eligible for disability retirement from the pension plan. If a member becomes disabled during the DROP period, the member shall be treated as if (s)he retired on the day prior to the date of disability. (Ord. No. 00-75, § 8, 1-2-01; Ord. No. 02-028, § 2, 6- 18-02) Secs. 18-128--18-134. Reserved. DIVISION 5. ADMINISTRATION OF THE PLAN Sec. 18-135. General supervision. The general supervision of the administration of the plan shall be by the council, acting as the board of trustees. (Code 1958, § 21-61) Sec. 18-136. Compensation of board. The members of the board shall serve without compensation for their services. (Code 1958, § 21-62) Sec. 18-137. Meetings of board; quorum, vote required. This plan or any matter herein may be considered and disposed of at any board meeting. A majority of the membership shall constitute a quorum and all 2002 $-18 Pensions and Retirement 18A decisions, acts and resolutions of the board shall be by affirmative vote of at least three (3) members. (Code 1958, § 21-63) Sec. 18-138. Administrative regulations authorized; distribution. The board by resolution may promulgate written rules and regulations not in conflict with the expressed terms of this article or the charter to cover the operation of any phase or part of the plan as provided by this article. Copies of such rules and regulations shall be furnished to any member of the plan upon request and at least one copy thereof shall be kept available in the office of the city clerk for examination by any interested persons at any time during ordinary business hours. Otherwise, a copy of this article shall fully meet the provisions herein. (Code 1958, § 21-64) Sec. 18-139. Board to interpret plan. The board has the power to construe all terms, rules, conditions and limitations of the plan, and its construction made in good faith shall be final and conclusive upon all parties' interests. (Code 1958, § 21-65) Sec. 18-140. Agents and employees. The board shall have the power to select, employ and compensate, or cause to compensate from time to time such consultants, actuaries, accountants, attorneys, investment counsel and other agents and employees as they may deem necessary and advisable in the proper and efficient administration of the plan. (Code 1958, § 21-66) Sec. 18-141. Powers and duties not exclusive. The powers and duties of the board or of any other persons as set out herein are not intended to be complete or exclusive but each such body or persons shall have such powers and duties as are reasonably implied under the terms of this article. Where not in conflict with this article, or the charter, the trust agreement or contract entered into with the insurance company, shall govern. (Code 1958, § 21-67) Sec. 18-141.1.Application for benefits; procedure. Any party who seeks benefits under the provisions of this chapter shall initiate his request by filing a written application with the secretary of the board of trustees of the pension plan. (Ord. No. 80- 53, § 1, 12-16-80) Editor's note-Ord. No. 80-53, ~ 1, amended 1958 Code by adding provisions designated ~ 21- 67. 5 which provisions have been included herein as ~ 18-141.1. Sec. 18-142. Secretary of board designated. The city clerk or deputy clerk shall be secretary to the board under this plan. (Code 1958, § 21-68) Sec. 18-143. Duties of the secretary. It shall be the duty of the secretary to keep accurate minutes and records of the acts of the board under this plan separate and apart from the regular minutes of city council meetings. This provision is made for the express purpose of having all proceedings in connection with this plan in one set of books, thereby saving going through all of the minutes of the various board meetings. They shall be available to the public, city officials and employees under this plan at all times. It shall be further the duties of the secretary to receive all applications for benefits under this chapter from the applicants, to maintain files on said application and to give reasonable written notice to the applicant of all meetings and hearings of the pension board on any party's request for benefits pursuant to this chapter. (Code 1958, § 21-69; Ord. No. 80-53, § 2, 12-16-80) 2001 S-15 18B Boynton Beach Code Sec. 18-143.1. Consideration of application for benefits. Upon receipt of an application for benefits, pursuant to this chapter, the secretary of the board shall set the matter for an initial determination by the board of a party's eligibility for benefits pursuant to this chapter. The party seeking benefits shall be given reasonable notice of this meeting and shall have an opportunity to present any relevant information to the board at that time. The board may either award benefits at that time, seek further information, or make an initial determination that benefits pursuant to this chapter shall be denied. If the board makes an initial determination of denial it shall instruct the city attorney to inform the applicant, in writing, of the reasons for said denial, and give the applicant thirty (30) days to request a full hearing before the board to determine the applicant's eligibility for benefits under this chapter. The board shall hold a full hearing within thirty (30) days of a request for the same by the applicant. All relevant evidence shall be received by the board at the time of the hearing. At the close of the full hearing the board shall make a final determination of the applicant's eligibility for benefits under the chapter. Any party grieved by the board's decision shall have thirty (30) days to file a petition for writ of certiorari with the court. (Ord. No. 80-53, § 3, 12-16- 80) Editor's note-Section 18-143.1 is derived from Ord. No. 80-53, ~ 3 which amended Code 1958 by adding provisions designated ~ 21-69. 5. Sec. 18-144. Preservation of records; notices to trustee. All notices, elections, designations and changes of beneficiaries and similar writings pertaining to the operation of the plan shall be made and preserved in writing on such forms as the board may direct. The secretary shall maintain all records in segregated files pertaining to the plan and they shall not be inter- mingled with other files of the city. Whenever there is any notice, election, designation, complaint, ruling or other written proceedings relating to a particular employee, the secretary shall furnish the trustee or the insurance company, when necessary, with a copy of same, as well as the employee. (Code 1958, § 21-70) Sec. 18-145. Investment of funds. The board shall have full power to invest and reinvest all funds within its control and to make investments of all kinds that are permitted by chapter 18, Article II of the Boynton Beach City Code and by Florida Law, except to the extent that the commission shall have directed the management of the pension funds pursuant to the following sentences. The commission shall have authority to direct by resolution (a) that the board deposit funds with banks and/or savings and loan associations or invest pension funds in securities, or (b) that some or all of the pension funds should, pursuant to appropriate contracts, be placed in the custody of a bank or banks having trust powers, and/or invested or reinvested by such a bank or banks on a fully discretionary basis so that such bank or banks have sole responsibility for such investments, subject however, to Chapter 18, Article II of the Boynton Beach City Code and/or paid to an insurance company or companies for investment so as to provide annuities for members of the plan and their beneficiaries in accordance with the terms of this plan. Such contracts with banks or insurance companies may be executed by the board and shall continue in effect notwithstanding any change in the membership of the board or the council until formal notice of termination has been received by said bank. By resolution the council may direct the board to terminate any contracts entered into pursuant to the preceding sentence or negotiate amendments thereto, and to ratio any de facto contracts acceptable to the council. (Code 1958, § 21-71; Ord. No. 80-16, § 1, 4-1-80; Ord. No. 94-56, § 1, 1-3-95) 2001 S-15 Pensions and Retirement Sec. 18.145.1. City of Boynton Beach General Employees Pension Fund - stocks, bonds, mutual funds, etc. (a) Investment in stocks issued by companies domiciled outside of the United States will be limited to ten (10) percent of the value of the plan's total assets (at cost). Investment in any single stock issue shall not exceed three (3%) percent of the fund's total value nor shall the equity portfolio's total value (at cost) exceed sixty (60%) percent of the fund's total assets, with a target of fifty-five (55%) percent. Notwithstanding anything in this article to the contrary, the board of trustees may cause up to twenty (20) percent of the equity portion of the general employees' pension fund to be invested in stocks whose sole criteria shall be that they are listed on any one (1) or more of the recognized national stock exchanges, or NASDAQ. (Ord. No. 94-56, § 2, 1-3-95; Ord. No. 95-40, § 2, 11- 21-95) (b) The fixed income portion of the Boynton Beach Employees' Pension Fund shall consist only of U.S. Government and U.S. Government Agency bonds and/or bonds issued by domestic corporations that are rated "A" or better by Moody's or Standard & Poor's rating services. In the event a bond rating drops below a rating of "A" it shall be sold by the investment manager. Investment in any single corporate bond issue shall not exceed two and one- half (21/2) percent of the fund's total value. (c) Investments in mutual fund shares and bank sponsored commingled funds are permissible. However, ninety (90) percent of the securities held in the mutual or commingled funds must meet the criteria outlined above. (d) All investments in options, futures, municipal bonds, precious metals, private placements, short sales and purchases on margin are prohibited. (e) All securities purchased must hold a ranking in one (1) of the top three (3) classifications of a major rating service. (f) Bonds and preferred stocks that are convertible into common stock, or that include warrants for the price of common stock, are allowed even if a premium price is being paid for the convertible privilege or for the warrants, at the professional direction of the investment manager. 2001 S-15 18D Boynton Beach Code Pensions and Retirement 19 Sec. 18-146. Annual reports by trustee or insurance company. The trustee or insurance company or companies with which a trust agreement or contract or contracts are entered into for the administration of the plan shall submit a statement of the condition of the funds on deposit to the credit of the plan at least once yearly, and may be required to supply copies of such statements to an actuarial consultant designated by the board. The original shall be retained among the records of the secretary of the board. (Code 1958, § 21-72) Sec. 18-147. Actuarial review and services. The board shall employ an actuary to review the operation of the plan at intervals of not more than two (2) years, and to make his recommendations to the board as to the actuarial solvency of the plan, the amount of the city's contributions to the fund which in his opinion is necessary to be made from the current operation of the plan, what benefits the plan can afford to pay on the basis of accumulated contributions to the plan, and current rates of contribution, and such other information as the board may require. The actuary's report shall be submitted in writing and copies thereof shall be available to members of the plan upon request. The board may also retain said actuary or some other actuary as a consultant, and provide for compensation for services. (Code 1958, § 21-73) Sec. 18-148. Adoption of tables. In making any actuarial computation provided in this article, the tables, charts and other statistical information shall be selected by the board from standard sources in common use by other annuity and pension plans, including but not limited to those operated by governmental bodies in the United States of America, or by the United States Internal Revenue Service. (Code 1958, § 21-74) Sec. 18-149. Responsibilities of members and beneficiaries. Each member or beneficiary or other interested member shall be responsible for advising the board of his current mailing address, and promptly advising the board relating to any error, in whosoever's favor, in connection with the payment of benefit or any other payment under or in connection with the plan. (Code 1958, § 21-75) Sec. 18-150. Interest on delayed payments. Pension payments, although not promptly paid for any reason, and any other payments to be made out of the fund, although not paid promptly for any reason, shall not bear interest unless so ordered by the board, who shall have discretion to fix the rate and calculate any such interest, and in such event, the interest to be paid shall not exceed the then current rates of interest being returned on the funds on deposit with the trustee or the insurance company, or other financial institution. (Code 1958, § 21-76) Sec. 18-151. Personal liability. Each member of the board shall use ordinary care and diligence in the performance of his duties and shall not be liable for any loss unless resulting from his own gross negligence, or his willful misconduct; nor shall such members be personally liable upon or with respect to any agreement, act, transaction or omission executed, committed himself as one or a member of said body or by any other member, agent, representative, or employee of any body; moreover said bodies and members and agents thereof shall each be fully protected in relying on the advice of the city attorney or his assistants, or upon any other attorney employed by the city, or said bodies, or either of them insofar as legal matters are concerned, or any accountant similarly employed insofar as accounting matters are concerned, and of any actuaries similarly employed so far as actuarial matters are concerned. Any person having any claim under the plan shall look solely to the assets of the fund for the satisfaction of such claims. (Code 1958, § 21-77) 20 Boynton Beach Code Sec. 18-152. Small annuities; lump sum payments. Whenever any retirement annuities shall be less than ten dollars ($10.00) per month, the board may elect to have payments made quarterly. If the annuity payable at quarterly intervals shall be less than ten dollars ($10.00), the board may elect to pay the commuted value of the same, calculated at regular interest, in one lump sum. Such election shall be made within six (6) months after the member's retirement unless he consents in writing to a subsequent election by the board under this section. (Code 1958, § 21-78) shall be in 2002 S-17 Sec. 18-153. "Filing" defined. Where any notice election or other instrument is required or permitted by this article to be filed with the board, the same may be filed with its secretary. (Code 1958, § 21-79) Sec. 18-154. Qualified pension fund. (a) The city intends the pension fund to be a qualified plan under Section 401 of the Internal Revenue Code, as amended, and that the trust be an exempt organization under Section 501 of the Internal Revenue Code. The board of trustees shall administer the pension fund so as to fulfill this intent. (b) Other provisions of this article notwithstanding, the board of trustees shall at all times administer the retirement system in compliance with the provisions of Section 415 of the Internal Revenue Code which are applicable to public employee retirement plans. In determining maximum benefits under Section 415, "compensation" shall have the meaning given such term by Section 415,(c)(3). In the event that a member belongs or belonged to a defined contribution plan sponsored by the city, the benefits payable under this section shall be reduced if necessary to comply with Section 415 (e), if applicable. (c) Notwithstanding any provision in this article to the contrary, the distribution of benefits accordance with the following requirements and otherwise comply with Code Section 401 (a)(9) and the regulations thereunder (including Regulation 1.401(a)(9)(2)) the provisions of which are incorporated herein by reference: A m e m b e n e f i t S b d i t 1 0 W i n g t h e 1 a t e r o f t h e c a 1 e n d a r Y e a r i n W h i C h t h t h e c a 1 e n d a r Y e a r i n W h i C h t h e m e m b e r A 1 t t t P P 1 i C a b 1 A P $ d u n 0 f t h e m e m b e r ( 0 r t h e 1 i V e s o f t h e m e m b e r a n d t h e m e 0 t ltl e ltl t e x a n C i S 0 t ltl e ltl t r e o n s D i 0 n S t a ltl e ltl a n h i t i d b e n e f i t r e r e in e n t S O C (Ord. No. 93-5, § 1, 5-4-93) S e Secs. 18-155--18-163. Reserved. ARTICLE iii. MUNICIPAL POLICE OFFICERS' RETIREMENT TRUST FUND* *Cross reference-Excise tax on casualty insurers for police retirement, ~ 23-2. Sec. 18-164. Creation and maintenance of fund n r e r e m e n t S (a) There is hereby created a special pension fund for the Police Officers of Boynton Beach, Florida, to be known as the Boynton Beach Police Officers' Pension Fund. All assets of every description held in the name of the Boynton Beach Pensions and Retirement 21 Police Officers' Retirement Trust Fund shall continue to be held, but such fund shall hereafter be known as the Boynton Beach Police Officers' Pension Fund and shall be administered as set forth in this Article of Chapter 18 of the City of Boynton Beach Code. (b) The fund shall be maintained in the following manner: (1) By payment to the fund of the net proceeds of the .85% excise tax which is imposed by the City of Boynton Beach upon certain casualty insurance companies on their gross receipts of premiums from holders of policies, which policies cover property within the corporate limits of the City of Boynton Beach as authorized in F.S. Chapter 185, amended. These amounts are to be deposited with the Board of Trustees within five (5) days of receipt by the municipality. (2) By the payment to the fund of 7% of the salary of each full time police officer duly appointed and enrolled as a member of the City of Boynton Beach Police Department; which 7% shall be picked up, rather than deducted, by the City of Boynton Beach from the compensation due to the Police Officer and paid over to the Board of Trustees of the Boynton Beach Police Officers' Pension Fund on a bi-weekly basis. All pickup contributions shall be treated as employer contributions for the purposes of determining tax treatment under the Internal Revenue Code of 1986, as amended. All such pick up amounts shall be considered as employee contributions for purposes of this plan. The percentage deducted from the police officers' salaries are to be deposited with the Board of Trustees immediately. F.S. Chapter 185, Boynton Beach Code of Ordinances Sec. 18-170. (3) By all fines and forfeitures imposed and collected from any police officer because of the violation of any rule and regulation adopted by the Board of Trustees. (4) By mandatory payment at least quarterly by the City of Boynton Beach a sum equal to the normal cost and the amount required to fund any actuarial deficiency shown by an actuarial valuation as provided in F.S. Chapter 112, Part VII. On an annual basis, the Board of Trustees will evaluate the actuarial assumptions used. (5) By all gifts, bequests, and devises when donated to the fund. (6) By all accretions to the fund by way of interest or dividends on bank deposits, or otherwise. (7) By all other sources or income now or hereafter authorized by law for the augmentation of the Boynton Beach Police Officers' Pension Fund. (c) Under no circumstances may the City of Boynton Beach reduce the member contribution to less than one-half of one percent of salary. (Ord. No. 02-004, § 1, 12-19-01) Sec. 18-165. Definitions. (a) The following words or phrases, as used in this article, shall have the following meaning: Actuarial equivalence or actuarially equivalent. Any benefit payable under the terms of this plan in a form other than the normal form of benefit shall have the same actuarial present value on the date payment commences as the normal form of benefit. For purposes of establishing the actuarial present value of any form of payment, all future payments shall be discounted for interest and mortality by using 8% interest and the 1983 Group Annuity Mortality Table, blending 80% Males and 20% Females, with ages set ahead five years in the case of disability retirees. Average final compensation. The average total remuneration received by a police officer during the best five (5) years of service with the city within the last ten. Compensation or salary. The total cash remuneration including "overtime" paid by the primary employer to a police officer for services rendered, but not including any payments for extra duty or a special detail work performed on behalf of a second party employer paid directly to the police 2002 S-17 22 Boynton Beach Code officer by the second party employer. The member's compensation or salary contributed as employee- elective salary reductions or deferrals to any salary reduction, deferred compensation, or tax-sheltered annuity program authorized under the Internal Revenue Code shall be deemed to be the compensation or salary the member would receive if he or she were not participating in such program and shall be treated as compensation for retirement purposes under this article. For any person who first becomes a member in any plan year beginning on or after January 1, 1996, compensation for any plan year shall not include any amounts in excess of the Internal Revenue Code 401 (a)(17) limitation (as amended by the Omnibus Budget Reconciliation Act of 1993), which limitation of $150,000 shall be adjusted as required by federal law for qualified government plans and shall be further adjusted for changes in the cost of living in the manner provided by Internal Revenue Code 401 (a)(17)(B). For any person who first became a member prior to the first plan year beginning on or after January 1, 1996, the limitation on compensation shall be not less than the maximum compensation amount that was allowed to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for changes in the cost of living since 1989 in the manner provided by Internal Revenue Code 401 (a)(17) (1991). Creditable service or credited service. The aggregate number of years of service and fractional parts of years of service of any police officer, omitting intervening years and fractional parts of years when such police officer may not have been employed by the municipality subject to the following conditions: (1) No police officer will receive credit for years or fractional parts of years of service if he or she has withdrawn his or her contributions to the fund for those years or fractional parts of years of service, unless the police officer repays into the fund the amount he or she has withdrawn, plus interest as determined by the board in accordance with § 18- 172. (2) A police officer may voluntarily leave his or her contributions in the fund for a period of five years after leaving the employ of the police department, pending the possibility of his or her being 2002 S-17 rehired by the same department, without losing credit for the time he or she has participated actively as a police officer. If he or she is not reemployed as a police officer with the same department within five years, his or her contributions shall be returned to him or her without interest. (3) In determining the creditable service of any police officer, credit for up to five years of the time spent in the military service of the Armed Forces of the United States shall be added to the years of actual service, if: a. The police officer is in the active employ of the municipality prior to such service and leaves a position, other than a temporary position, for the purpose of voluntary or involuntary service in the Armed Forces of the United States. b. The police officer is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act. c. The police officer returns to his or her employment as a police officer of the municipality within one year from the date of his or her release from such active service. (4) Continuous service with the employer shall not be broken in the event of: a. Absence on an approved leave of absence; b. Absence from work because of occupational injury or disease incurred in employment for which a police officer is entitled to Workers' Compensation payments; c. Absence due to service in the Armed Forces of the United States provided the officer shall re-enter employment with the city within one year of discharge. Beneficiary. Any person, including the estate of the member, who is entitled to receive a pension benefit payable from the Boynton Beach Police Officers' Pension Fund upon the death of a member or participant. Pensions and Retirement 22A Fund or Police Officers' Pension Fund. The Boynton Beach Police Officers' Pension Fund. Plan year. The fiscal year commencing October 1st and ending the following September 30th. Police officer. Any person who is elected, appointed or employed full time by the City of Boynton Beach, who is certified or required to be certified as a law enforcement officer in compliance with F.S. § 943.1395, who is vested with authority to bear arms and make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, criminal, traffic or highway laws of the state. This definition includes all certified supervisory and command personnel whose duties include, in whole or in part, the supervision, training, guidance, and management responsibilities of full-time law enforcement officers, part-time law enforcement officers or auxiliary law enforcement officers as the same are defined in F.S. § 943.10(6) and (8). Retiree or retired police o2Jicer. A police officer who has entered retirement status. For the purposes of the Deferred Retirement Option Plan (DROP), a police officer who enters the DROP shall be considered a retiree for all purposes of the plan. Retirement. A police officer's separation from city employment with immediate eligibility for receipt of benefits under the plan. For purposes of the DROP, retirement means the date a police officer enters the DROP. (b) The masculine gender includes the feminine and words of the singular with respect to persons include plural and vice versa. (Ord. No. 02-004, § 1, 12-19-01) Sec. 18-166. Board of Trustees Created. (a) Board of Trustees. There is hereby created a Board of Trustees of the Boynton Beach Police Officers' Pension Fund which shall be solely responsible for administering the pension fund. The 2002 S-17 Board of Trustees shall be a legal entity, with the power to bring and defend lawsuits of every kind, nature and description, and to the extent required to accomplish the intent, requirements and responsibilities provided for in this article. The Board shall consist of five trustees as follows: (1) Two legal residents of the city, who shall be appointed by the City Council. Each City Trustee shall serve at the pleasure of the City Council. Each City Trustee may succeed himself or herself as a trustee. (2) Two police officer participants of the City of Boynton Beach Police Officers Pension Fund, who are elected by a majority of the police officer participants in the fund. Elections shall be held under such rules and regulations as the Board of Trustees shall from time to time adopt. Each police officer trustee shall serve as a trustee for a period of two years, unless he or she sooner ceases to be a police officer in the employ of the Boynton Beach Police Department, whereupon their successor shall be elected by a majority of the participants of the Boynton Beach Police Officers' Pension Fund. Each police officer trustee may succeed himself or herself as a trustee. (3) A fifth trustee shall be chosen by the majority of the other four trustees. This fifth trustee's name shall be submitted to the City Council, which shall, as a ministerial duty, appoint such person to the Board as a fifth trustee. The fifth trustee shall serve as a trustee for a period of two years, and may succeed himself or herself as a trustee. (b) Board vacancies; procedures to fly same. In the event a trustee provided for in § 18-166(A)(2) ceases to be a police officer in the employ of the City of Boynton Beach Police Department, he shall be considered to have resigned from the Board of Trustees. In the event such a trustee shall resign, be removed, or become ineligible to serve as trustee, the Board shall, by resolution, declare that office of trustee vacated as of the date of adoption of such resolution. If such a vacancy occurs in the office of trustee within ninety days of the next succeeding election for trustee, the vacancy shall be filled at the 22B Boynton Beach Code next regular election for the unexpired portion of the term; otherwise, the vacancy shall be filled for the unexpired portion of the term at a special election called by the Board. In the event a trustee provided for in § 18-166(A)(1) and (3) shall resign, be removed or become ineligible to serve as trustee, the Board shall, by resolution, declare that office of Trustee vacated as of the date of adoption of the resolution. The successor for the unexpired portion of the term shall be chosen in the same manner as an original appointment. 3. A list of all police officers employed by the municipality which includes the name, address and dates of hire and termination. (d) Compensation. The trustees of the Boynton Beach Police Officers' Pension Fund shall not receive any compensation for their services as such, but may receive expenses and per diem when performing official duties in administering the fund. (Ord. No. 02-004, § 1, 12-19-01) (c) Board meetings: quorum: procedures. The Board of Trustees shall hold meetings regularly, at least once each quarter and shall designate the time and place thereof. At any meeting of the Board, three trustees shall constitute a quorum. Each trustee shall be entitled to one vote on each question before the Board and at least three concurring votes shall be required for a decision by the Board at any of its meetings. The Board shall adopt its own rules and procedures and shall keep a record of its proceedings. All meetings of the Board shall be open to the public. No trustee shall take part in any action in connection with their own participation in the fund, and no unfair discrimination shall be shown to any individual police officer participating in the fund. (1) Board Chairman and Secretary. a. The Board of Trustees shall, by majority vote, elect from its members a Chairman and a Secretary. Sec. 18-167. Powers of the Board of Trustees. (a) The Board of Trustees may: (1) Invest and reinvest the assets of the Boynton Beach Police Officers' Pension Fund in annuity and life insurance contracts of life insurance companies in amounts sufficient to provide, in whole or in part, the benefits to which all the participants in the municipal police officers, retirement trust fund shall be entitled under the provisions of this article and pay the initial and subsequent premiums thereon from the integral part of the fund. If current state contributions are adequate to fund minimum requirements of F.S. Chapter 185, additional state funds may be used to provide benefits that exceed requirements of F.S. Chapter 185. keep: b. The Secretary of the Board shall 1. A complete minute book of the actions, proceedings or hearings of the Board; 2. A record of all persons receiving retirement payments under the plan which includes the time when the pension is allowed and when the pension shall cease to be paid; and 2002 S-18 Pensions and Retirement 23 (2) Invest and reinvest the assets of the retirement trust fund in: a. Time or savings accounts of a national bank, a state bank insured by the Bank Insurance Fund, or a savings and loan association insured by the Savings Association Insurance Fund which is administered by the Federal Deposit Insurance Corporation or a state or federal chartered credit union whose share accounts are insured by the National Credit Union Share Insurance Fund. b. The aggregate investment of fund assets in: 1. Obligations of the United States or obligations guaranteed as to principal and interest by the Government of the United States; 2. Bonds issued by the State of Israel; 3. Bonds or other evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia. However, the average credit rating of such investments in bonds shall be no lower than AA; 4. County bonds containing a pledge of the full faith and credit of the county involved, bonds of the division of bond finances of the department of general services, or of any other state agency, which have been approved as to legal and fiscal sufficiency by the state board of administration; and 5. Obligations of any municipal authority issued pursuant to the laws of this state; provided, however, that for each of the five years next preceding the date of investment the income of such authority available for fixed-charges shall have been not less than 1.5 times its average annual fixed- charges requirement over the life of its obligations; shall not at cost exceed 65% of the fund's assets; nor shall more than 10% of the fund's assets be invested in the bonds or other certificates of indebtedness of any one issuing company; nor shall the aggregate of such investment in any one issuing company exceed 3% of the outstanding bonds or other certificates of indebtedness of that company. c. The aggregate investment of fund assets in the common stock or capital stock issued by a corporation organized under the laws of the United States, any state, or organized territory of the United States or the District of Columbia shall not, at market, exceed 65% of the fund's assets; nor shall more than 5% of the fund's assets be invested in common stock or capital stock of any one issuing company; nor shall the aggregate of such investment in any one issuing company exceed 3% of the outstanding common or capital stock of that company. The Board of Trustees may invest up to 10% of plan assets in foreign securities. d. Real estate, except that the aggregate investment of fund assets in real estate may not exceed 10% of assets. (3) Issue drafts upon the Boynton Beach Police Officers Pension Fund pursuant to this article and rules and regulations prescribed by the Board of Trustees. All such drafts shall be consecutively numbered and shall be signed by the Chairman and Secretary of the Board or their designee and shall state upon their faces the purpose for which the drafts are drawn. The City Treasurer shall retain such drafts when paid, as permanent vouchers for disbursements made, and no money shall be otherwise drawn from the fund. 2002 $-18 24 Boynton Beach Code (4) Convert into cash any securities of the fund as it may deem advisable, having regard for the cash requirements of the fund. (5) Keep complete record of all receipts and disbursements and of the Boards, acts and proceedings. (6) The Board of Trustees may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of such nominee as it may direct but the books and records shall at all times show that all investments are part of the fund. (b) The sole and exclusive administration of, and the responsibilities for, the proper operation of the retirement fund and for making effective the provisions of this chapter are vested in the Board of Trustees. (c) The Board of Trustees shall retain a professionally qualified independent consultant who shall evaluate the performance of any existing professional money manager and shall make recommendations to the Board of Trustees regarding the selection of money managers, if necessary. The term "professionally qualified independent consultant" shall have the meaning as set forth in F.S. § 185.06(5)(b). (d) The Board of Trustees may employ such independent professional, technical or other advisers as may be needed to fulfill the Board's responsibilities under this pension plan. These professionals include but are not limited to: legal counsel, actuary and certified public accountants. If the Board chooses to use the city's legal counsel, actuary or other professional, technical or other advisers, it must do so only under terms and conditions acceptable to the Board. (Code 1958, § 21-86; Ord. No. 83-11, § 1, 4-19-83; Ord. No. 83-42, § 1, 12-6-83; Ord. No. 90-28, § 1, 9- 5-90; Ord. No. 99-20, § 2, 7-20-99; Ord. No. 01-15, § 1, 3-20-01; Ord. No. 02-004, § 1, 12-19-01; Ord. No. 02-034, § 1, 8-20-02) Sec. 18-168. Membership. All police officers who are participants in the fund as of the effective date of this article shall be members of this retirement system. Each police officer shall be included in this plan on the date of hire. (Ord. No. 02-004, § 1, 12-19-01) Sec. 18-169. Requirements for retirement-benefit (a) Normal retirement. (1) Normal retirement date. The normal retirement date of each police officer will be the first day of the month coinciding with, or next following, the date on which he or she has attained and completed twenty (20) years of service, or the first day of the month coinciding with, or next following, the date on which the police officer has attained age fifty-five (55) and completed ten (10) years of service or age 50 and completed 15 years of service. (Ord. No. 81-28, § 1, 9-15-81; Ord. No. 00-18, § 4, 6- 6-00) (2) Normal retirement benefit. The normal retirement benefit payable to a police officer who retires on or after the normal retirement date shall be an amount equal to the number of years of his or her credited service multiplied by 3% of his or her average final compensation. (Code 1958, § 21- 85, Ord. No. 99-20, § 1, 7-20-99) (3) Form of benefit. A retired police officer's retirement benefit normally shall be payable in the form of a monthly life annuity with 120 monthly payments guaranteed. This form of annuity provides for a retirement benefit payable monthly to the retired employee during their lifetimes with a guarantee that not less than 120 monthly retirement benefits shall be paid, even if the retired employee dies prior to the receipt of 120 payments. 2002 S-18 Pensions and Retirement 25 (b) Early retirement. (1) Early retirement date. An employee who has attained age 50 and completed at least 10 years of credited service may elect to terminate employment and retire on an Early Retirement Date which may be the first day of any month after 10 years of service and attainment of age 50. (2) Early retirement benefit. The monthly amount of early retirement benefits payable to a police officer who retires on the Early Retirement date shall be determined in accordance with § 18-169(a) based on credited service to the early retirement date subject to an actuarial reduction of 1.5% per year of service to take into account the police officer's younger age and the earlier commencement of retirement benefits. The early retirement benefit shall be paid in accordance with § 18-169(a). (c) Disability retirement. (1) Service incurred. a. Any member who receives a medically substantiated service connected injury, disease or disability which injury, disease or disability totally and permanently disabled him or her to the extent that in the opinion of the Board of Trustees, he or she is wholly prevented from rendering useful and efficient service as a police officer shall receive a monthly benefit equal to 66 :/3% of his basic rate of earnings in effect on the date of disability. Such benefit shall be payable on the first day of each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for 3 months and the date the Board of Trustees approved the payment of such retirement income. A disability retiree may select from the optional forms of benefits available to service retirees in accordance with § 18-170. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits. Subsequent retirement benefits will be actuarially reduced to account for the benefits that were paid during the period of disability. The amount of the disability benefit payment from the fund shall be 2002 S-17 reduced by any amounts paid from worker's compensation and the federal social security system. The reduction for social security benefits shall be in the amount of the primary insurance amount (PIA) only, and future increases, if any, in the disabled member's social security disability benefits shall not serve to reduce any further the disability benefit from the fund. The reduction for social security shall terminate upon the attainment of age 65. The pension benefit may only be reduced to the extent that the total of the benefits from this fund, workers' compensation and social security benefits exceed 100% of the disabled member's basic rate of earnings on the date of disability. However, in all cases the benefit will be at least 42% of average final compensation. b. Any condition or impairment of health of a member caused by tuberculosis; hypertension, heart disease, hardening of the arteries, hepatitis, or meningococcal meningitis resulting in total or partial disability or death, shall be presumed to be accidental and suffered in the line of duty unless the contrary be shown by competent evidence. Any condition or impairment of health caused directly or proximately by exposure, which exposure occurred in the active performance of duty at some definite time or place without willful negligence on the part of the member, resulting in total or partial disability, shall be presumed to be accidental and suffered in the line of duty, provided that such member shall have successfully passed a physical examination upon entering such service, which physical examination including electrocardiogram failed to reveal any evidence of such condition. In order to be entitled to presumption in the case of hepatitis, meningococcal meningitis, or tuberculosis, the member must meet the requirements of F.S. § 112.181. The final decision whether a member meets the requirements for duty disability pension rests with the board and shall be based on substantial competent evidence on the record as a whole. (2) Nonservice incurred. Effective October 1, 2000, any member with ten (10) years of continuous service who receives a nonservice incurred injury, illness, disease or disability, and which illness, injury, disease or disability totally and permanently disables him to the extent that, in the opinion of the 26 Boynton Beach Code Board of Trustees, he is wholly prevented from rendering useful and efficient service as a police officer, shall receive from the fund in equal monthly installments an amount equal to three per cent (3%) of his average final compensation for each year of continuous service until death or recovery from disability whichever shall first occur, provided, however, the maximum benefit to which a member may become entitled under this paragraph shall not exceed sixty per cent (60%) of his average final compensation during said period, but in all cases the benefit will be at least 25% of average final compensation during said period. Such benefit shall be payable on the first day of each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for three (3) months and the date the Board of Trustees approved the payment of such retirement income. the condition of any member receiving a pension for disability and if there is substantial evidence that the retired member is capable of performing service acceptable to the city as a police officer, he shall be ordered to resume active duty and his pension shall be discontinued. (5) Disability exclusions. No member shall be granted a disability pension upon a showing to the satisfaction of the Board: a. That the disability resulted from an intentionally self-inflicted wound, injury or ailment, or (3) Medical Board. Whenever it becomes necessary for the Board to avail itself of the services of physicians in the case of an application for disability retirement, the Board shall designate a Medical Board to be composed of competent medical authorities and/or specialists, as needed. The Medical Board shall arrange for and pass upon the medical examinations required under the provisions of this section, shall investigate all essential statements or certificates made by or on behalf of a member in connection with an application for disability retirement and shall report in writing to the Board its conclusions and recommendations upon all matters referred to it. The payment for such services shall be determined by the Board. (4) Return to active duty from disability retirement. In the event a member who has been retired on a pension on account of permanent and total incapacity regains his health and is found by the Medical Board designated by the Board to be in such physical and mental condition as to meet the requirements of the personnel department for service as a police officer of the city, the Board shall order his pension discontinued, and he shall be ordered to resume active duty in the city at the same rate of compensation currently in effect for his pay grade. The Board shall review periodically, in its discretion, b. That the disability resulted from excessive and habitual use of narcotics, drugs, or intoxicants (alcoholic beverages); c. That the disability resulted from an injury or disease sustained by the police officer while willfully and illegally participating in fights, riots, civil insurrections or while committing a crime; d. That the disability resulted from an injury or disease sustained by the police officer while serving in any armed forces; e. That the disability resulted from an injury or disease sustained by the police officer after employment has been terminated; or f. That, in the case of a duty disability only, the disability resulted from an injury or disease sustained by the police officer while working for anyone other than the city and arising out of such other employment. (6) Further disability provisions. Each member applying for a service incurred disability benefit from this fund shall be required to apply for disability benefits under social security, and, if applicable, workers' compensation. Furthermore, each person granted a service incurred disability shall be required to submit to the Board, no later than March 1 st of each year, a statement showing the monthly amount of social security (PlA only) and workers' compensation benefits received by him or her as of March 1 st. Willful refusal by such persons to comply 2002 S-17 Pensions and Retirement 26A with these regulations shall be grounds for the termination of or nonapproval of disability benefits from this system. However, the Board shall exercise its discretion in each case. (d) Death benefit. (1) If any member shall die prior to retirement or other termination of employment with the city and that death is found by the Board of Trustees to have occurred in the line of duty regardless of the years of service, a death benefit shall be payable to the deceased member's spouse. The benefit shall equal 3% of average final compensation for each year of continuous service; provided, however, the benefit will be at least 30% of average final compensation. It shall be payable in equal monthly installments commencing the first day of the month following the date of death and ceasing upon the death of the spouse. If there is no spouse, the benefit, if any, will be paid to the deceased participant's estate. (2) If any member with at least ten (10) years of continuous service shall die prior to retirement or other termination of employment with the city, a death benefit shall be payable to the deceased member's spouse. The benefit shall equal 3% average final compensation for each year of continuous service. It shall be payable in equal monthly installments commencing the first day of the month following the date of death and ceasing upon the death or remarriage of the spouse. If there is no spouse, the benefit, if any, will be paid to the deceased participant's estate. (Code 1958, § 21-87; Ord. No. 78-6, § 1, 3-7-78; Ord. No. 00-18, § 2, 6-6-00; Ord. 00-50, § 1, 9-19- 00) (3) Ifa member dies before being eligible to retire, the heirs, legatees, beneficiaries or personal representatives of such deceased member shall be entitled to a refund of 100% of the contributions made by the member to the fund, without interest. 2003 S-20 (e) Separation from service. (1) Effective for terminations on and after October 1, 2002, ifa member leaves the service of the city before accumulating aggregate time of 5 years toward retirement and before being eligible to retire, such member shall be entitled to a refund of all of his or her contributions made to the fund, without interest. (2) If any member who had been in the service of the city for at least 10 years elects to leave his or her accrued contributions in the fund, such police officer upon attaining age 50 years or more (without reaching what would have been twenty years of service had he not terminated his employment) may receive an early retirement benefit at the actuarial equivalent of the amount of such retirement income otherwise payable to him or her at early retirement or upon attaining what would have been normal retirement had he not terminated his employment, such police officer may receive his or her accrued normal retirement benefit. (3) Effective for terminations after October 1, 2002, if any member who had been in the service of the City for at least 5 years elects to leave his or her accrued contributions in the Fund, the police officer upon attaining what would have been normal retirement had he or she not terminated his or her employment, may receive the accrued normal retirement benefit. (f) Monthly supplemental benefits. (1) Effective October 1, 2006, any retiree or beneficiary receiving pension benefits is entitled to a monthly supplemental pension benefit. The benefit pool will be funded by 100% of the earnings and 10% of the principal created by the contributions set forth in paragraph (3) below. (2) Effective as of October 1, 2002, the benefit pool shall be divided according to the total number of years of service rendered by all retirees, with a cap of 20 years. The shares will be divided on a pro-rata basis on the following schedule: 26B Boynton Beach Code 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 or more years of service years of service years of service years of service rears of service years of service years years years years years years years years years of service of service of service of service of service of service of service of service of service 5 years of service Duty Disability Nonduty Disability schedule Beneficiary benefit 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 100% Based on above Based on % receiving of retiree' s (3) Such benefit will be funded by a 1% contribution from the Members and a 1% contribution from the city. Effective with the 185 monies received for calendar year 2001, 185 dollars will be allocated to fund the city's contributions until the 185 dollars are received for calendar year 2005 or, if earlier, until the entire 1% of the city contributions are covered by the increase in the 185 monies. These 185 funds, contributed through calendar year 2005 or if earlier when the entire city 1% contribution is made, will be added to the baseline 185 calculation under F.S. 185.35(9)(b). The Member and city contributions shall be effective the first full payroll period following the effective date of this article. Employees will contribute to this benefit through 20 years of service. (4) This benefit shall be payable months as a part of the regular monthly pension benefit. The benefit shall be payable to the retiree and any beneficiary. The benefit shall cease upon the death of the member or beneficiary. (Ord. No. 02-004, § 1, 12-19-01; Ord. No. 02-063, §§ 2, 3, 1-7-03) 2003 S-20 Sec. 18-170. Optional forms of benefits. (a) Each member entitled to a normal, early or disability retirement benefit shall have the right at any time prior to the date on which the benefit begins to elect to have the benefit payable under any of the options hereinafter set forth in lieu of the amount and form of benefits provided above, and to revoke any such elections and make a new election at any time prior to the actual commencement of payment. (b) The value of optional benefits shall be the actuarial equivalent of the value of benefits otherwise payable. The member shall make an election by written request to the Board, such request being retained in the Board's files. The options available to the members of the fund are as follows: (1) Life annuity. The member may elect to receive a benefit payable for the member's life only. (2) Contingent annuitant (joint and survivor option). The member may elect to receive a benefit during the joint lifetime of the member and a joint pensioner designated by the police officer, and following the death of either of them, 100%, 75%, 66 :/3% or 50% of such monthly benefit payable to the survivor for the lifetime of the survivor. (c) The member upon electing any option of this section will designate the joint pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the plan in the event of the member's death, and will have the power to change such designation from time to time but any such change shall be deemed a new election and will be subject to approval by the Pension Board. Such designation will name a joint pensioner or one or more primary beneficiaries where applicable. If a member has elected an option with a joint pensioner or beneficiary and his or her retirement income benefits have commenced, he or she may thereafter change the designated joint pensioner or beneficiary but only if the Board of Trustees consents to such change and if the joint pensioner last previously designated by the Pensions and Retirement 26C police officer is alive when he or she files with the Board of Trustees a request for such change. The consent of a member's joint pensioner or beneficiary to any such change shall not be required. The Board of Trustees may request such evidence of the good health of the joint pensioner that is being removed as it may require and the amount of the retirement income payable to the police officer upon the designation of a new joint pensioner shall be actuarially redetermined taking into account the ages and sex of the former joint pensioner, the new joint pensioner, and the member. Each such designation will be made in writing on a form prepared by the Board of Trustees, and on completion will be filed with the Board of Trustees. In the event that no designated beneficiary survives the member, such benefits as are payable in the event of the death of the member subsequent to his or her retirement shall be paid as provided in § 18-171. (d) Retirement income payments shall be made under the option elected in accordance with the provisions of this section and shall be subject to the following limitations: (1) Ifa member dies prior to his or her normal retirement date or early retirement date, no benefit will be payable under the option to any person, but the benefits, if any, will be determined under § 18-169(d). (2) If the designated beneficiary (or beneficiaries) or joint pensioner dies before the member's retirement under the plan, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the member upon his or her retirement as if the election had not been made, unless a new election is made in accordance with the provisions of this section or a new beneficiary is designated by the member prior to his or her retirement. (3) If both the member and the designated beneficiary (or beneficiaries) die before the full payment has been effected under any option providing for payments for a period certain and life thereafter, made pursuant to the provisions of this article, the Board of Trustees may, in its discretion, direct that 2003 S-20 the commuted value of the remaining payments be paid in a lump sum. (4) If a member continues beyond his or her normal retirement date and dies prior to actual retirement and while an option made pursuant to the provisions of this section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a beneficiary (or beneficiaries) designated by the member in the amount or amounts computed as if the police officer had retired under the option on the date on which death occurred. (5) A member may not make any change in retirement option after the date of cashing or depositing the first retirement check. (Ord. No. 02-004, § 1, 12-19-01) Sec. 18-171. Beneficiaries. (a) Each member may, on a form provided for that purpose which was signed and filed with the Board of Trustees, designate a beneficiary (or beneficiaries) to receive the benefit, if any, which 26D may be payable in the event of death; and each designation may be revoked by such member by signing and filing with the Board of Trustees a new designation of beneficiary form. (b) If a deceased member officer failed to name a beneficiary in the manner prescribed above in subsection (a) of this section, or if the beneficiary (or beneficiaries) named by the deceased member predeceases the member, the death benefit, if any, which may be payable under the plan with respect to such deceased police officer may be paid at the discretion of the Board of Trustees to the estate of the deceased member, provided that the Board of Trustees may direct that the commuted value of the remaining monthly income payments be paid in a lump sum. Any payment made to any person pursuant to this section shall operate as a complete discharge of all obligations under the plan with regard to such deceased member and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons ever interested hereunder. (Ord. No. 02-004, § 1, 12-19-01) Boynton Beach Code Sec. 18-172. Buy back of service. (a) Re-employment. When any former police officer of the city is re-employed, he will become a member of the plan upon re-employment as a full time permanent police officer. When a former police officer of the city is re-employed and had withdrawn contributions previously made to the plan, he may reinstate his previous service upon satisfaction of each of the following conditions: (1) The break in city employment is not more than 60 months; and (2) The plan is paid the total amount previously withdrawn (consisting of accumulated member contributions plus any interest previously paid by the plan on those contributions). This total amount is brought forward with interest for the total number of months from the date of withdrawal to the date of repayment, calculated to the nearest month. This calculated amount equals the amount to be repaid to the Plan in a lump sum. The interest to bring forward the total amount will be at the equivalent compound monthly rate derived from the earning rate assumed by the actuary in the most recent actuarial valuation submitted to the Division of Retirement pursuant to F.S. Chapter 112, Part VII. (Ord. No. 96- 05, § 1, 3-6-96) (b) Prior police officer service. Unless otherwise prohibited by law, the years or fractional parts of years that a police officer previously served as a police officer with the city during a period of employment and for which accumulated contributions were withdrawn from the fund, or the years and fractional parts of years that a police officer served as a police officer for this or any other municipal, county or state police department or service in the military shall be added to the years of credited service provided that: (1) The police officer contributes to the fund the sum that would have been contributed, based on the police officer's salary and the employee contribution rate in effect at the time that the credited service is requested, had the police officer been a member of this system for the years or fractional paas 2003 S-20 of years for which the credit is requested plus amount actuarially determined such that the crediting of service does not result in any cost to the fund plus payment of costs for all professional services rendered to the Board in connection with the purchase of years of credited service. (2) Payment by the police officer of the requirement amount may be made within six months of the request for credit and in one lump sum payment, or the police officer can buy back this time over a period equal to the length of time being purchased or five years, whichever is greater, at an interest rate which is equal to the fund's actuarial assumption. A police officer may request to purchase a maximum of five (5) years of service. No credit shall be given for any service until all years of service which are to be repurchased, have been repurchased. (3) The credit purchased under this section shall count for benefit computation purposes, but not for vesting. (4) In no event, however, may credited service be purchased pursuant to this section for prior service with any other municipal, county or state police department, if such prior service forms or will form the basis of a retirement benefit or pension from another retirement system or plan. (Ord. No. 02-004, § 1, 12-19-01) Secs. 18-173. Rollovers. (a) Direct tramfers of eligible rollover distributions. (1) General. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and in the manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. Pensions and Retirement 26E (2) Definitions. a. Eligible roi/over distribution. Any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover does not include any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period often years or more; any distribution to the extent such distribution is required under § 401 (a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includable in gross income. b. Eligible retirement plan. An individual retirement account described in § 408(a) of the Internal Revenue Code, an individual retirement annuity described in § 408(b) of the Internal Revenue Code, an annuity plan described in § 403(a) of the Internal Revenue Code, or a qualified trust described in § 401(a) of the Internal Revenue Code, that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. c. Direct rollover. A payment by the plan to the eligible retirement plan specified by the distributee. d. Distributee. Includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is entitled to payment for alimony and child support under an income deduction order, are distributees with regard to the interest of the spouse or former spouse. (b) Rollovers from qualified plans. (1) A member may roll over all or a part of his or her interest in another qualified plan to the fund, provided all of the following requirements are met: 2003 S-20 a. Some or all of the amount distributed from the other plan is rolled over to this plan no later than the 60th day after distribution was made from the Plan or, if distributions are made in installments, no later than the 60th day after the last distribution was made. b. The amount rolled over to this fund does not include any amount contributed by the member to the Plan on a post-tax basis. Effective October 1, 2002, a member may rollover amounts contributed on a post-tax basis. c. The rollover is made in cash. d. The member certifies that the distribution is eligible for a rollover. e. Any amount which the trustees accept as a rollover to this fund shall, along with any earnings allocated to them, be fully vested at all times. (2) A rollover may also be made to this Plan from an individual retirement account qualified under § 408 of the Internal Revenue Code when the individual retirement account was merely used as a conduit for funds from another qualified plan and the rollover is made in accordance with the rules provided in paragraphs a. through e. Amounts rolled over may be segregated from other fund assets. The trustees shall separately account for gains, losses, and administrative expenses of these rollovers. In addition, the fund may accept the direct transfer of a member's benefits from another qualified retirement plan or an Internal Revenue Code § 457 deferred compensation plan. The fund shall account for direct transfers in the same manner as a rollover and shall obtain certification from the member that the amounts are eligible for a rollover or direct transfer to this fund. (c) Transfer of accumulated leave. (1) Members eligible to receive accumulated sick leave, accumulated vacation leave or any other accumulated leave payable upon separation may elect, not later than the December 31st of the calendar year prior to the year of retirement or entry 26F Boynton Beach Code into the DROP, to have the leave transferred to the Plan. For purposes of this section, the term "separation" shall mean termination of service as a police officer with the City. Members on whose behalf leave has been transferred may elect one of the following distribution options within thirty (30) days of separation. Members failing to elect a distribution option within thirty (30) days of separation will be deemed to have elected option (a) below: a. Receive a lump sum equal to the transferred leave balance; or b. Transfer the entire amount of the transferred leave balance directly to any eligible retirement plan; or c. Purchase additional service credit as may be permitted by the Code. If the leave balance exceeds the cost of the service credit purchased, the balance shall be paid to the member in a lump sum; or d. Transfer the entire amount of the transferred leave balance into the member's DROP account. (2) Members who fail to elect a transfer not later than the December 31st of the calendar year prior to the year of retirement or entry into the DROP will receive payment in a lump sum at time of separation with all attendant tax consequences. (3) If a member on whose behalf the City makes a transferred leave balance to the Plan dies after retirement or other separation, but before making an election, as provided, or after making an election but before any distribution is made, the election option shall be void. In such an event, any person who would have received a death benefit had the member died in service immediately prior to the date of retirement or other separation, shall be entitled to receive an amount equal to the transferred leave balance in a lump sum. In the case of a surviving spouse or former spouse, an election may be made to transfer the leave balance to an eligible retirement plan in lieu of the lump sum 2003 S-20 payment. Failure to make such an election by the surviving spouse or former spouse within sixty (60) days of the member's death will be deemed an election to receive a lump sum payment. (4) The Board, by rule, shall have the authority to enact administrative rules for purposes of administering the provisions of this section, consistent with the Federal tax laws in effect on the date of transfer. No such rule shall conflict with the provisions of this section. (5) Members electing to enter into the DROP shall be required to preserve a balance of one hundred and twenty (120) hours of sick leave and one hundred and twenty (120) hours of vacation leave at the time of entry into the DROP. (6) The value of the leave transferred shall be determined in accordance with applicable city personnel policies or collective bargaining agreements. (Ord. No. 90-47, § 2, 10-3-90; 93-71, § 2, 12-7-93; Ord. No. 94-58, § 1, 1-3-95; Ord. No. 02-004, § 1, 12-19-01; Ord. No. 02-064, § 2, 1-7-03) § 18-174 Miscellaneous. (a) Pension validity. The Board of Trustees shall have the power to examine the facts upon which any pension shall have been granted or obtained erroneously, fraudulently, or illegally for any reason. The Board is empowered to purge the pension rolls of any person granted a pension under proper or existing law or granted under this article if the pension is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any pensioner who has under any prior or existing law or who shall hereafter under this article be erroneously, improperly, or illegally classified. (b) False or misleading statements made to obtain retirement benefits prohibited. Pensions and Retirement 26G (1) It is unlawful for a person to willfully and knowingly make, or cause to be made, or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or misleading oral or written statement or withhold or conceal material information to obtain any benefit under this plan. (2) a. A person who violates subparagraph (1) commits a misdemeanor of the first degree, punishable as provided in F.S. §§ 775.082 or 775.083. b. In addition to any applicable criminal penalty, upon conviction for a violation described in subparagraph 1., a participant or beneficiary of this plan may, in the discretion of the Board of Trustees, be required to forfeit the right to receive any or all benefits to which the person would otherwise be entitled under this plan. For purposes of this sub-subparagraph, "conviction" means a determination of guilt that is the result of a plea or trial, regardless of whether adjudication is withheld. (c) Incompetence. If any member or beneficiary is a minor or is, in the judgment of the Board, otherwise incapable of personally receiving and giving a valid receipt for any payment due them from the Fund, the Board may, unless and until claims have been made by a duly appointed guardian or committee of such person, make such payment or any part thereof to such person's spouse, children, parent or other person deemed by the Board to have incurred expenses or assumed responsibility for the expenses of such person. Any payments so made shall be a complete discharge of any liability under the system for such payment. (d) Rights and benefits not subject to legal process. The rights and benefits provided for herein are vested rights of participants in the fund and shall not be subject to attachment, garnishment, execution or any other legal process. This section does not apply in the event of an income deduction order for alimony or child support. (e) Lump sum payment of small retirement income. Notwithstanding any provision of the fund to 2003 S-20 the contrary, if the monthly retirement income payable to any person entitled to benefits hereunder is less than $30.00 or if the single sum value of the accrued retirement income is less than $5,000.00 as of the date of retirement or termination of service, whichever is applicable, the Board of Trustees, in the exercise of its discretion, may specify that the actuarial equivalent of such retirement income be paid in lump sum. (f) Required distributions. (1) In accordance with Internal Revenue Code § 401(a)(9), all benefits under this plan will be distributed, beginning not later than the required beginning date set forth below, over a period not extending beyond the life expectancy of the member or the life expectancy of the member and a beneficiary. (2) Any and all benefit payments shall begin by the later of: a. April 1 of the calendar year following the calendar year of the member's retirement date; or b. April 1 of the calendar year following the calendar year in which the member attains age 70.5. (3) If an employee dies before his entire vested interest has been distributed to him, the remaining portion of such interest will be distributed at least as rapidly as provided for under this plan. (g) Internal Revenue Code limits. (1) In no event may a member's annual benefit exceed one hundred and twenty thousand dollars (adjusted for cost of living in accordance with Internal Revenue Code (IRC) § 415(d). (2) Ifa member has less than 10 years of service with the city, the applicable limitation in paragraph (a) of this section shall be reduced by multiplying such limitation by a fraction, not to exceed one (1). The numerator of such fraction shall be the number of years, or part thereof, of service with the city; the denominator shall be 10 years. 26H Boynton Beach Code (3) For purposes of this subsection, "annual benefit" means a benefit payable annually in the form of a straight life annuity with no ancillary or incidental benefits and with no member or rollover contributions. To the extent that ancillary benefits are provided, the limits set forth in paragraph (a) above will be reduced actuarially, using an interest rate assumption equal to the greater of five (5) percent or the rate being used for actuarial equivalence, to reflect such ancillary benefits. (4) If distribution of retirement benefits begins before age 62, the dollar limitation as described in paragraph (a) shall be reduced using an interest rate assumption equal to the greater of 5 percent or the interest rate used for actuarial equivalence; however, retirement benefits shall not be reduced below $75,000 if payment of benefits begins at or after age 55 and not below the actuarial equivalent of $75,000.00 if payment of benefits begins before age 55. For a member with 15 or more years of service with the city, the reductions described above shall not reduce such member's benefit below $50,000.00 (adjusted for cost of living in accordance with Internal Revenue Code § 415(d), but only for the year in which such adjustment is effective). If retirement benefits begin after age 65, the dollar limitation of paragraph (a) shall be increased actuarially by using an interest assumption equal to the lesser of 5 percent or the rate used for actuarial equivalence. (Ord. No. 02-004, § 1, 12-19-01) 2003 S-20 Sec. 18-175. Deferred retirement option plan. (a) A deferred retirement option plan ("DROP") is hereby created. (b) Eligibility to participate in the DROP is based upon eligibility for normal service retirement in the Plan. Members shall elect to participate by applying to the Board of Trustees on a form provided for that purpose. (c) Participation in the DROP must be exercised within the first twenty-two (22) years of combined credited service. However, participation in calendar year 2000, the first year, will be extended to all members. (d) Except for the extension of participation at inception as provided for in paragraph (c) above, a member shall not participate in the DROP beyond the time of attaining twenty-five (25) years of service and the total years of participation in the DROP shall not exceed five (5) years. For example: (1) Members with twenty (20) years of credited service at time of entry shall only participate for five (5) years. (2) Members with twenty-one (21) years of credited service at time of entry shall only participate for four (4) years. (3) Members with twenty-two (22) years of credited service at time of entry shall only participate for three (3) years. of entry into the DROP. Accumulated, unused sick and vacation leave shall be included in the compensation calculation; provided however, that a minimum balance of 120 hours of sick leave and 120 hours of vacation leave shall be maintained by the employee and excluded from this calculation. The retained leave balance, including any additions, shall be distributed at the conclusion of DROP participation and separation from service. (f) Payment shall be made into the employee's DROP account as if the employee had retired from the employ of the city. The amounts paid will be determined in accordance with this Plan and the employee's selection of the payment option. Payments into the DROP will be made monthly over the period the employee participates in the DROP, up to a maximum of sixty (60) months. (e) Upon a members election to participate in the DROP, he or she shall cease to be a member and is precluded from accruing any additional benefit under the Pension Fund. For all fund purposes, the member becomes a retirant. The amount of credited service and final average salary freeze as of the date (g) Effective January 1, 2003, DROP participants have the option to select optional methods to credit investment earnings to their account. The method may be changed each year effective January 1, Pensions and Retirement 261 however, the method must be selected prior to January 1 on a form provided by the Board of Trustees. The methods are: (1) Gains or losses at the same interest rate earned by the Pension Plan; or (2) A guaranteed rate of 7.0%. (3) A percentage of the DROP account will be credited with interest gains or losses at the same rate earned by the pension plan and the remaining percentage will be credited with earnings at a guaranteed rate of 7.0%. The actual percentage shall be selected by the member on a form provided by the Board of Trustees. The total of the two percentages must equal 100%. Employee's DROP accounts will be assessed an administrative fee that is based upon the ratio that the Employee's DROP account bears to the fund as a whole. (4) Participants in the DROP, as of December 31, 2002, may change their method for the crediting of earnings. This change in the crediting of earnings is a one time opportunity. The election to change the method for crediting must be made during the month of January 2003. The method, if changed, will be effective February 1, 2003. (h) An employee's participation in the DROP shall terminate at the end of five years or 25 years of service, whichever comes first. Failure to end DROP participation may result in penalties at the discretion of the Trustees, up to and including forfeiture of the DROP account. (i) All interest shall be credited to the employee's DROP account on a quarterly basis with quarterly statements provided. In the event that a member dies while in the DROP, interest shall be pro-rated to the last business day of the month preceding the death of the member. (j) Upon termination of employment, participants in the DROP will receive the balance of the DROP account in accordance with the following rules: 2003 S-20 (1) Members may elect to begin to receive payment upon termination of employment or defer payment of DROP until the latest day as provided under sub-subparagraph (c). (2) Payments may be made in the following ways: a. Lump sum. The entire account balance will be paid to the retirant upon approval of the Board of Trustees. b. Installments. The account balance will be paid out to the retirant in five (5) equal annual payments paid over five (5) years, the first payment to be made upon approval of the Board of Trustees. c. Monthly installments. The account balance will be paid out to the retirant on a monthly basis until the account balance is paid out based on actuarial tables provided by the actuary. (3) Any form of payment selected by a police officer must comply with the minimum distribution requirements of the Internal Revenue Code § 401(A)(9), and is subject to the requirements of § 18-174(f) e.g., payments must commence by age 70.5. (4) The beneficiary of the DROP participant who dies before payments from DROP begin shall have the same right to select payment options as the participant in accordance with this subsection. A DROP participant may designate a beneficiary to receive the DROP balance in the event of the participant's death prior to pay out of the full DROP balance. (k) No payments will be made from DROP until the employee actually separates from service with the city. (1) If an employee shall die during participation in the DROP, a survivor benefit shall be payable in accordance with the form of benefit chosen at the time of entry into the DROP. 26J Boynton Beach Code (m) Upon commencement of participation in the DROP, the member shall no longer be eligible for disability retirement from the pension plan. (Ord. No. 02-004, § 1, 12-19-01; Ord. No. 02-065, §§ 2, 3, 1-7-03; Ord. No. 02-066, § 2, 1-7-03) 2003 S-20 Sec. 18-176. Termination of plan and distribution of fund. Upon termination of the plan by the municipality for any reason, or because of a transfer, merger, or consolidation of governmental units, services, or functions as provided in F.S. Chapter 112, or upon written notice to the Board of Trustees by the municipality that contributions under the plan are being permanently discontinued, the rights of all employees to benefits accrued to the date of such termination or discontinuance and the amounts credited to the employees' accounts are nonforfeitable. The fund shall be apportioned and distributed in accordance with the following procedures: (a) The Board of Trustees shall determine the date of distribution and the asset value to be distributed, after taking into account the expenses of such distribution. (b) The Board of Trustees shall determine the method of distribution of the asset value, that is, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities, or otherwise, for each member entitled to benefits under the plan, as specified in subsection (c). (c) The Board of Trustees shall apportion the asset value as of the date of termination in the manner set forth in this subsection, on the basis that the amount required to provide any given retirement income shall mean the actuarially computed single- sum value of such retirement income, except that if the method of distribution determined under subsection (b) involves the purchase of an insured annuity, the amount required to provide the given retirement income shall mean the single premium payable for such annuity. (1) Apportionment shall first be made in respect of each retired member receiving a retirement income hereunder on such date, each person receiving a retirement income on such date on account of a retired (but since deceased) member, and each police officer who has, by such date, become eligible for normal retirement but has not yet retired, in the amount required to provide such retirement income, provided that, if such asset value is less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value. (2) If there is any asset value remaining after the apportionment under paragraph (1), apportionment shall next be made in respect of each member in the service of the municipality on such date who has completed at least 10 years of credited service, in the fund for at least 10 years, and who is not entitled to an apportionment under paragraph (a), in the amount required to provide the actuarial equivalent of the accrued normal retirement income, based on the police officer's credited service and earnings to such date, and each former participant then entitled to a benefit who has not by such date reached his or her normal retirement date, in the amount required to provide the actuarial equivalent of the accrued normal retirement income to which he or she is entitled, provided that, if such remaining asset value is less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. (3) If there is an asset value after the apportionments under paragraphs (a) and (b), apportionment shall lastly be made in respect of each member in the service of the municipality on such date who is not entitled to an apportionment under paragraphs (a) and (b) in the amount equal to the member's total contributions to the plan to date of termination, provided that, if such remaining asset value is less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. Pensions and Retirement 26K (4) In the event that there is asset value remaining after the full apportionment specified in paragraphs (a), (b), and (c), such excess shall be returned to the municipality, less return to the state of the state's contributions, provided that, if the excess is less than the total contributions made by the municipality and the state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the municipality and the state. (d) The Board of Trustees shall distribute, in accordance with the manner of distribution determined under subsection (b), the amounts apportioned under subsection (c). If, after a period of 24 months after the date on which the plan terminated or the date on which the Board received written notice that the contributions thereunder were being permanently discontinued, the municipality or the Board of Trustees of the municipal police officers' retirement trust fund affected has not complied with all the provisions in this section, the division shall effect the termination of the fund in accordance with this section. (Ord. No. 02-004, § 1, 12-19-01) 2003 S-20 Sec. 18-177. Supplemental Pension Distribution. (a) Subject to the conditions set forth in this section, the Board of Trustees shall annually. authorize a supplemental pension distribution, the amount of which shall be determined as of each September 30th. The amount of the supplemental pension distribution shall be equal to the actuarial present value of future pension payments to current pensioners multiplied by the positive difference, if any, between the rate of investment return and eight and one-half percent (8.50%). The actuary shall determine whether there may be a supplemental pension distribution based on the following factors: (1) The actuary for the pension fund shall determine the rate of investment return on the pension fund assets during the twelve (12) month period ending each September 30th. The rate determined shall be the rate reported in the most recent actuarial report submitted pursuant to F.S. Chapter 112, Part VII. (2) The actuary for the pension fund shall, as of September 30, determine the actuarial present value of future pension payments to current pensioners. The actuarial present values shall be calculated using an interest rate of eight and one half (8.5) percent a year compounded annually, and a mortality table approved by the Board of Trustees and as used in the most recent actuarial report submitted pursuant to F.S. Chapter 112, Part VII. This will be the pool of funds available to fund the supplemental pension distribution. (3) If the actuary determines there may be a supplemental pension distribution, the Board of Trustees shall authorize such a distribution unless the administrative expenses of distribution exceed the amount available for the distribution. (b) Supplemental pension distributions will be made to pensioners, including DROP members, and beneficiaries, who are referred to as eligible persons. (c) The supplemental pension distribution shall be allocated among eligible persons based upon the participant's years of service in the proportion that the participants years of service bear to the aggregate amount of years of service of all eligible persons. Allocations for beneficiaries will be in proportion that the beneficiary benefit bears to the retiree benefit Maximum service credits shall be twenty (20) years. Minimum allocations for duty disability pensioners shall be based on 13.33 years of service. (d) The supplemental pension distribution shall be made as of July 1, 2001 and each July 1st thereafter. Each eligible person shall be paid his or her allocated portion from the preceding September 30th. Eligible persons must be retired for one (1) year from September 30 to receive a supplemental pension distribution. A pensioner's estate is entitled to a pro- rata share of the deceased retirant's supplemental pension distribution based on a number of months that the deceased retirant received a pension during the year ending the September 30th prior to the retirants death. (Ord. No. 02-004, § 1, 12-19-01) 26L Boynton Beach Code Sec. 18-178. Reserved. 2003 S-20 ARTICLE IV. PENSIONS FOR FIREFIGHTERS* *Cross reference-Excise tax on fire and tornado insurers for firefighters retirement, ~ 23-3. Sec. 18-179. Application. All other provisions of F.S. Chapter 175 shall meet all the requirements and be fully applicable, except for the provisions of this article, to the City of Boynton Beach Municipal Firefighters Pension Trust Fund. The increased pension benefits in the same percentage of increase as provided for by this article shall apply to all firefighters now receiving retirement benefits and all firefighters eligible for retirement benefits but not now retired, under the provisions of the City of Boynton Beach Municipal Firefighters Pension Trust Fund, F.S. Chapter 175. A retiree receiving a joint and survivor form of benefit shall be permitted to change his or her beneficiary, as provided in F.S. §§ 175.171 and 175.333. (Code 1958, § 21-95; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 00-19, § 6, 6-6-00) Sec. 18-180. Monthly retirement income. (a) The amount of monthly retirement income payable to a firefighter who retires on or after the firefighter's normal retirement date shall be an amount equal to the number of the firefighter's years of credited service mukiplied by three (3%) per cent of such firefighter's average final compensation. (b) In no event may a member's annual benefit exceed the lesser of: (1) Ninety thousand dollars ($90,000.00) (adjusted for cost of living in accordance with Internal Revenue Code (IRC) Section 415(d), but only for the year in which such adjustment is effective); or Pensions and Retirement 27 (2) One hundred (100) per cent of the average annual compensation for the member's three (3) highest paid consecutive years; however, benefits of up to ten thousand dollars ($10,000.00) a year can be paid without regard to the one hundred (100) per cent limitation if the total retirement benefits payable to a member under all defined benefit plans (as defined in IRC, Section 141(j)) maintained by the city for the present and any prior year do not exceed ten thousand dollars ($10,000.00) and the city has not at any time maintained a defined contribution plan (as defined in IRC, Section 414(i)), in which the employee was a member. Ifa member has less than ten (10) years of service with the city, the applicable limitation in paragraph (1) or paragraph (2) of this subsection shall be reduced by multiplying such limitation by a fraction, not to exceed one (1). The numerator of such fraction shall be the number of years, or part thereof, of service with the city; the denominator shall be ten (10) years. For purposes of this subsection, ~annual benefit" means a benefit payable annually in the form of a straight life annuity with no ancillary or incidental benefits and with no member or rollover contributions. To the extent that ancillary benefits are provided, the limits set forth in paragraphs (1) and (2) above will be reduced actuarially, using an interest rate assumption equal to the greater of five (5) percent or the rate used for actuarial equivalence, to reflect such ancillary benefits. If distribution of retirement benefits begins before age sixty-two (62), the dollar limitation as described in paragraph (1) shall be reduced actuarially using an interest rate assumption equal to the greater of five (5) percent of the interest rate used for actuarial equivalence; however, retirement benefits shall not be reduced below seventy-five thousand dollars ($75,000.00) if payment of benefits begins at or after age fifty-five (55) and not below the actuarial 2000 S-13 equivalent of seventy-five thousand dollars ($75,000.00) if payment of benefits begins before age fifty-five (55). For a member with fifteen (15) or more years of service with the city, the reductions described above shall not reduce such member's benefit below fifty thousand dollars ($50,000.00) (adjusted for cost of living in accordance with IRS Section 415(d), but only for the year in which such adjustment is effective). If retirement benefits begin after age sixty-five (65), the dollar limitation of paragraph (1) shall be increased actuarially by using an interest assumption equal to the lesser of five (5) percent or the rate used for actuarial equivalence. For purposes of this subsection, the "average annual compensation for a member's three (3) highest paid consecutive years" shall mean the member's greatest aggregate compensation during the period of three (3) consecutive calendar years in which the individual was an active member of the plan. The sum of the defined benefit fraction and the defined contribution fraction for all qualified plans of the city for each common participant shall not exceed one (1.0). (Code 1958, § 21-91; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 92-44, § 1, 9-2-92; Ord. No. 93-16, § 1, 6- 15-93; Ord. No. 99-28, § 1, 9-21-99) Sec. 18-180.1. Computation of monthly retirement income in the instance of early retirement. The benefit payable for early retirement shall be the same as determined for normal retirement, as set forth in section 18-180, less three (3) per cent for each year or portion thereof of which the member's actual retirement date precedes the date which would have been the member's normal retirement date had such member remained in full-time employment with the city. (Ord. No. 84-39, § 1, 10-3-84; Ord. No. 89-26, § 1, 9- 19-89; Ord. No. 00-19, § 2, 6-6-00) 28 Boynton Beach Code Sec. 18-181. Investments. The investment powers and authority of the board of trustees of the municipal firefighters pension trust fund shall be in accordance with Florida Statutes, Section 175.071, provided, however: (a) The aggregate investment of fund assets in: (1) Obligations of the United States or obligations guaranteed as to principal and interest by the government of the (2) (3) United States; and County bonds containing a pledge of the full faith and credit of the county involved, bonds of the division of bond finance of the department of general services, or of any other state agency, which have approved as to legal and fiscal sufficiency by the state board of administration; and Obligations of any municipal authority issued pursuant to the laws of this state; provided, however, that for each of the five (5) years next preceding the date of investment the income of such authority available for fixed charges shall have been not less than 1.5 times its average annual fixed-charges requirement over the life of its obligations; and (4) Bonds or other certificates of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States or the District of Columbia; shall not at cost exceed seventy (70) percent of the fund's assets; nor shall more than ten (10) percent of the fund's assets be invested in the bonds or other certificates of indebtedness of any one issuing company; nor shall the aggregate of such investment in any one issuing company exceed three (3) 2002 S-17 per cent of the outstanding bonds or other certificates of indebtedness of that company. Fund assets may be invested in investment grade bonds with not greater than 10% of the fixed income portfolio to hold an investment rating of Baa. (b) The aggregate investment of fund assets in the common stock or capital stock issued by a corporation organized under the laws of the United States, any state, or organized territory of the United States or District of Columbia shall not at cost exceed sixty (60) per cent of the fund's assets; nor shall more than five (5) per cent of the fund's assets be invested in common stock or capital stock of any one issuing company; nor shall the aggregate of such investment in any one issuing company exceed three (3) per cent of the outstanding bonds or other certificates of indebtedness of that company. (c) The board of trustees may retain in cash and keep unproductive of income such amount of the fund as it may deem advisable, having regard for the cash requirements of the fund. (d) The board of trustees may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of such nominee as it may direct or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the fund. (Code 1958, § 21-92; Ord. No. 82-36, § 1, 10-6-82; Ord. No. 83-39, § 1, 12-20-83; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 95-41, § 1, 11-21-95; Ord. No. 02- 005, § 1, 2-5-02) Sec. 18-181.1. Stocks not meeting specified quality criteria. Notwithstanding anything in Article VIII of this chapter to the contrary, the board of trustees may cause up to ten (10) percent of the equity portion of Pensions and Retirement 29 the fireman's pension fund to be invested in stocks whose sole criteria shall be that they are listed on any one (1) or more of the recognized national stock exchanges. (Ord. No. 94-52, § 3, 12-20-94) Sec. 18-182. Disability retirement benefits. (a) Service incurred. Any member who receives a medically substantiated service connected injury, disease or disability, which injury, disease or disability totally and permanently disables such member to the extent that, in the opinion of the board of trustees, the member is wholly prevented from rendering useful and efficient service as a firefighter, shall receive a monthly benefit equal to sixty-six and two-thirds (66 2/3) per cent of the member's basic rate of earnings in effect on the date of disability. Such benefit shall be payable on the first day each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for three (3) months and the date the board of trustees approved the payment of such retirement income. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits. The amount of the disability benefit payable from the fund shall be reduced by any amounts paid or payable as disability benefits from workers' compensation and the federal social security system. The reduction for social security benefits shall be in the amount of the primary insurance amount (PLA) only, and future increase, if any, in the disabled member's social security disability benefit shall not serve to reduce any further the disability benefit from the fund. The reduction for social security shall terminate upon the attainment of age sixty-five (65). For purposes of compliance with Chapter 175, Florida Statutes, service-incurred disability benefits shall not be offset below 42% of average final compensation. (b) Nonservice incurred. Any member with ten (10) years of continuous service who receives a nonservice incurred injury, illness, disease or disability, and which illness, injury, disease or disability totally and permanently disables such member to the extent that, in the opinion of the board of trustees, the member is wholly prevented from 2002 S-17 rendering useful and efficient service as a firefighter, shall receive from the fund in equal monthly installments an amount equal to two and one-half (2½) per cent of that member's average final compensation for each year of continuous service until death or recovery from disability, whichever shall first occur; Such benefit shall be payable on the first day of each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for three (3) months and the date the board of trustees approved the payment of such retirement income. For purposes of compliance with F.S. Chapter 175, the minimum nonservice-incurred disability benefit shall be 25% of average final compensation. (c) Medical board. Whenever it becomes necessary for the board to avail itself of the services of physicians in the case of an application for disability retirement, the board shall designate a medical board to be composed of three (3) physicians. The medical board shall arrange for and pass upon the medical examinations required under the provisions of this section, shall investigate all essential statements or certificates made by or on behalf of a member in connection with an application for disability retirement and shall report in writing to the board its conclusions and recommendations upon all matters referred to it. The payment for such services shall be determined by the board. (d) Return to active duty from disability retirement. In the event a member who has been retired on a pension on account of permanent and total incapacity regains health and is found by the medical board designated by the board to be in such physical and mental condition as to meet the requirements of the personnel department for such service as a firefighter of the city, the board shall order the pension discontinued, and such person shall be ordered to resume active duty in the city at the same rate of compensation currently in effect for the member's pay grade. The board shall review periodically, in its discretion, the condition of any member receiving a pension of disability and if there is substantial evidence that the retired member is capable of performing service acceptable to the city as a firefighter, such member shall be ordered to resume active duty and the member's pension shall be discontinued. 30 Boynton Beach Code (e) Disability exclusions. No member shall be granted a disability pension upon a showing to the satisfaction of the board: (1) That the disability resulted from an intentionally self- inflicted wound, injury or ailment, or (2) That the disability resulted from the use of narcotics, drugs or alcoholic beverages, or (3) That the disability resulted from a member's participation or involvement in riot, insurrection or unlawful assembly, or (4) That the disability resulted from a member's participation or involvement ill the commission of a crime or unlawful act, or (5) That the disability resulted from injury or disease sustained by the firefighter while serving in any armed forces. (f) Further disability provisions. Each member applying for a service incurred disability benefit from this fund shall be required to apply for disability benefits under social security, and, if applicable, workers' compensation. Furthermore, each person granted a service incurred disability benefit shall be required to submit to the board, no later than March first of each year, a statement showing the monthly amount of social security (PlA only) and workers' compensation benefits received by such person as of March first. Willful refusal by such persons to comply with these requirements shall be grounds for the termination of or non-approval of disability benefits from this system. However, the board shall exercise its discretion in each case. (g) Survivor's benefit. If any member with at least ten (10) years of continuous service shall die prior to retirement or other termination of employment with the city, a death benefit shall be payable to the deceased member's spouse. The benefit shall equal two and one-half (2½) per cent of average final compensation for each year of continuous service. It 2002 S-17 shall be payable in equal monthly installments commencing the first day of the month following the date of death and ceasing upon the death or remarriage of the spouse. (h) Payment options. Disability retirees shall be entitled to choose any optional form of payment provided in § 175.171, Florida Statutes. (Code 1958, § 21-93; Ord. No. 78-7, § 1, 3-7-78; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 00-19, § 3, 6- 6-00) Sec. 18-183. Average final compensation defined; average annual compensation defined. (a) Average final compensation, for the purpose of calculating entitlement to benefits under this plan, shall mean the average cash compensation exclusive of bonuses and incentive pay received by a firefighter during the three highest years of the last ten years of creditable service prior to retirement. (b) Average annual compensation, for the purposes of determining compliance of provisions of the Internal Revenue Code, shall mean the member's greatest aggregate compensation during the period of three (3) consecutive calendar years in which the individual is an active member of the plan. This provision relates solely to calculation of maximum pension earnings in section 18-180(b) of the Code of Ordinances and shall not be applicable to the determination of average final compensation as defined in section 18-183(a) or referred to in the determination of monthly retirement income in section 18-180(a). (Code 1958, § 21-94; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 93-16, § 2, 6-15-93; Ord. No. 00-19, § 4, 6- 6-00; Ord. No. 02-005, § 1, 2-5-02) Notwithstanding any other provision of this chapter, there is hereby created an ex officio, non- voting position on the board of trustees which shall be occupied by the fire chief. The ex officio board Sec. 18-184. Ex officio membership of the fire Pensions and Retirement 31 member shall have the opportunity to participate in all board discussions and activities but shall not be counted for the purpose of a quorum nor shall the ex officio member be entitled to move or second the adoption of any issue or vote on any matter before the board. The ex officio member shall receive all official board communications and shall be eligible to attend fiduciary education opportunities otherwise authorized for voting trustees. (Ord. No. 98-39, § 1, 9-15-98) Editor's note-Before the enactment of Ord. No. 98-39 on September 13, 1998, the former ~ 18-184, which pertained to additional creditable service for years spent on the volunteer force of the city 's fire department, was repealed by Ord. No. 94-11, ~ 1, adopted May 3, 1994. This previous ~ 18-184 was derived from the 1958 Code, ~ 21-96; Ord. No. 79- 23, Art. I, adoptedAug. 7, 1979; and Ord. No. 89-26, ~ 1, adoptedSept. 19, 1989. 2002 S-17 Sec. 18-184.1 . Thirteenth Check. (a) Thirteenth check supplement created. A benefit is hereby created to be provided in the form of a thirteenth monthly retirement payment to each beneficiary and retiree of the Plan. Payment shall only be made in those years in which an actuarial gain has been determined to exist by the Board of Trustees, following consultation with the actuary to the Board. (b) Determination of actuarial gains. The actuary for the Retirement Fund shall perform an annual calculation to determine on the basis of all actuarial factors used to measure the Plan whether or not the Plan has sustained an actuarial gain or loss. The actuary shall report annually at a special meeting of the Board regarding the actuarial gain or loss for the year. Once certified by the actuary, the Board shall notify retirees regarding the availability of a thirteenth check payment for the year. In any year in which the Board of Trustees, following consultation with the actuary, determines that no actuarial gain has occurred, no benefit shall be payable. In years in which the Plan's actuarial gain is sufficient to support the payment of a thirteenth check, the payment shall be made in December. (c) Creation of thirteenth check fund. Following the determination of actuarial gain, a fund is hereby created, within the assets of the Retirement System, which shall consist of the portion of the actuarial gain attributable to retirees and beneficiaries. This portion shall be equal to the total actuarial gain multiplied by the ratio of the present value of benefits for retirees and beneficiaries to the present value of all future benefits for all members of the System. The fund shall be co-mingled with other assets of the System but shall be measured for accounting purposes as a separate fund within the Retirement System for the exclusive purpose of providing benefits under this section. (d) Distribution of benefits; limitations. In any year in which the Board determines that a distribution may be made in accordance with the provisions of this section, a supplemental benefit shall be paid in the form of a thirteenth monthly pension payment to each retiree or beneficiary of a deceased retiree. The payment for each retiree shall be determined by the Board, but the total amount payable may not exceed the thirteenth check fund. (e) Non-guarantee of benefits. By acceptance of a supplemental benefit under this section, each retiree and beneficiary acknowledges that they have no right, title or interest in any such benefits except as may be determined by the Board of Trustees. The payment of a thirteenth check in any year shall not create any right, title or interest in any person to the payment of a thirteenth check in any other year. The Board of Trustees reserves the exclusive right to alter the manner of payment of this benefit or, to decline the payment of such benefit in any year in which the Board, in the exercise of its fiduciary responsibility and its sole discretion, determines it is in the best interest of the Plan to forego such payment. (f) Rule-making authority. The Board of Trustees shall have authority to make such uniform rules as it deems appropriate to facilitate the payment of benefits under this system. (Ord. No. 02-005, § 3, 2-5-02) Sec. 18-185. Normal retirement date. The normal retirement date of each firefighter will be the first day of the month coinciding with, or 32 Boynton Beach Code next following, the earlier of the date on which such firefighter has attained and completed twenty (20) years of service, regardless of age, or at fifty-five (55) years of age with ten (10) years of service. There is no age requirement for a normal retirement. (Ord. No. 81-33, § 1, 10-12-81; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 00-19, § 1, 6-6-00) Sec. 18-186. Payroll deductions; employee, state and city contributions. no circumstances more than five (5) days after receipt by the City. The City shall make annual contributions to the trust fund, as needed, in an amount at least equal to the difference each year between the total member contributions plus state contributions for the year, less the total cost for the year as shown by the most recent actuarial valuation for the system. The City's contribution, if so required, shall be deposited on at least a quarterly basis. (Ord. No. 81-33, § 2, 10-12-81; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 00-19, § 5, 6-6-00) The City of Boynton Beach shall deduct from all firefighters entitled to the benefits of the article, seven (7) per cent from each installment of salary of each firefighter so long as such firefighter shall hold office or be employed. Said amount shall be so deducted and be deposited to the Boynton Beach Firemen's Pension Fund. Payroll deductions shall be deposited in the trust fund immediately, after each pay period. Any monies received or receivable by reason of laws of the state for the express purpose of funding and paying for retirement benefits for firefighters of the City shall be deposited in the trust fund comprising part of this plan. Any such amount shall be deposited in the fund immediately, and under Sec. 18-187. Accounting. The trust fund shall operate on a fiscal year basis, the fiscal year commencing October 1st, and ending September 30th. (Ord. No. 90-24, § 1, 8-7-90) 2002 S-17 Sec. 18-188. Required distributions. In no event may a member's retirement benefit be delayed the later of the April first (lst) following the calendar year in which he attains age seventy and one-half (701/2) or April first (lst) of the year following the calendar year in which he retires. When a distribution of the participant's entire interest is not made in a lump sum, the distribution will be made in one (1) or more of the following ways: over the life of the participant; over the life of the participant and designated beneficiary; over a period certain not extending beyond the life expectancy of the participant; or over a period certain not extending beyond the joint life and last survivor expectancy of the participant and a designated beneficiary. If distribution has commenced before the participant's death, the remaining interest will be distributed at least as rapidly as under the method of distribution being used as of the date of the participant's death. The method of distribution, if the participant dies before distributions commence, must satisfy the following requirements: (a) Any remaining portion of the participant's interest that is not payable to a beneficiary designated by the participant will be distributed within five (5) years after the participant's death; and (b) Any portion of the participant's interest that is payable to a beneficiary designated by the participant will be distributed either: (i) Within five (5) years after the participant's death; or (ii) Over the life of the beneficiary, or over a period certain not extending beyond the life expectancy of the beneficiary, commencing not later than the end of the calendar year following the Pensions and Retirement 33 calendar year in which the participant died, (or, if the designated beneficiary is the participant's surviving spouse, commencing not later than the end of the calendar year following the calendar year in which the participant would have attained age seventy and one-half (70 ½). (Ord. No. 90-24, § 1, 8-7-90; Ord. No. 93-16, § 3, 6- 15-93) The contribution by the member of the actuarially determined cost of the buyback may be made in one lump sum or may be made by payroll deductions in installments for a period of time which shall not exceed the number of years being purchased. A member electing to make installment payments shall be charged interest based on the actuarially assumed rate of return for the Plan. A member making installment payments shall complete all required payments prior to payment of any benefit under this section. Sec. 18-189. Repeal or termination of fund. In the event of the termination or partial termination of this plan, each participant's accrued pension benefit shall become nonforfeitable (one hundred (100) percent) to the extent funded. At such time, the fund shall be appropriated and distributed in accordance with Chapter 175.351, Florida Statutes. (Ord. No. 93-16, § 3, 6-15-93) § 18-190. Purchase of Military/Fire Service Credit. Upon entry into the Plan, members shall be permitted to purchase up to an additional five (5) years of credited service based upon (i) service as a full-time firefighter employed by a city, county, state, federal or other public agency or (ii) military service in the Armed Forces of the United States. Temporary, auxiliary, reserve, volunteer or private agency service shall not apply. Service credit purchased under the provisions of this section shall not count for vesting purposes. Prior service shall not be granted until the member has paid to the Pension Fund the actuarial cost of the service purchased, as determined by the actuary for the Plan. Members purchasing service credit shall provide the Board of Trustees with proof of prior service with honorable separation. No service credit may be purchased if the member is receiving or will receive any other retirement benefit based on this service. The Board shall establish a uniform rule for the implementation of this provision. A member who terminates service prior to vesting in the Plan shall be entitled to a refund, without interest, of all money paid to buyback prior military or fire service. (Ord. No. 01-46, § 1, 8-7-01) § 18-191. Limitation on compensation. Compensation in excess of the limitations set forth in Section 401 (a)(17) of the Internal Revenue Code shall be disregarded. The limitation on compensation for "eligible employees" shall not be less than the amount which was allowed to be taken into account under the Plan as in effect on July 1, 1993. For this purpose, an "eligible employee" is an individual who was a member of the Pension Plan before the first plan year beginning after September 30, 1996. (Ord. No. 96-35, § 1, 7-16-96) Sec. 18-192. Transfer of accumulated leave. (a) Members eligible to receive accumulated sick leave, accumulated vacation leave or any other accumulated leave payable upon separation may elect, not later than December 31st of the calendar year prior to the year of retirement or entry into the DROP, to have the leave transferred to the Plan. For purposes of this section, the term "separation" shall mean termination of service as a firefighter with the City. Members on whose behalf leave has been transferred may elect one of the following distribution options 2002 S-17 34 Boynton Beach Code within thirty (30) days of separation. Members failing to elect a distribution option within thirty (30) days of separation will be deemed to have elected option 1 below: (1) Receive a lump sum equal to the transferred leave balance, or (2) Transfer the entire amount of the transferred leave balance directly to any eligible retirement plan, or (3) Purchase additional service credit as may permitted by the Code. If the leave balance exceeds the cost of the service credit purchased, the balance shall be paid to the member in a lump sum, or (4) Transfer the entire amount of the transferred leave into the member's DROP account. (b) Members who fail to elect a transfer not later than December 31st of the calendar year prior to the year of retirement or entry into the DROP will receive payment in a lump sum at time of separation with all attendant tax consequences. (c) Ifa member on whose behalf the City makes a transferred leave balance to the Plan dies after retirement or other separation, but before making an election, as provided, or after making an election but before any distribution is made, the election option shall be void. In such an event, any person who would have received a death benefit had the member died in service immediately prior to the date of retirement or other separation, shall be entitled to receive an amount equal to the transferred leave balance in a lump sum. In the case of a surviving spouse or former spouse, an election may be made to transfer the leave balance to an eligible retirement plan in lieu of the lump sum payment. Failure to make such an election by the surviving spouse of former spouse with sixty (60) days of the member's death, will be deemed an election to receive a lump sum payment. (d) The Board, by rule, shall have the authority to enact administrative rules for purposes of 2002 S-17 administering the provisions of this section, consistent with the Federal tax laws in effect on the date of transfer. No such rule shall conflict with the provisions of this section. (e) Members electing to enter into the DROP shall be required to preserve a balance of one hundred and twenty (120) hours of sick leave and one hundred and twenty (120) hours of vacation leave at the time of entry into the DROP. (f) The value of the leave transferred shall be determined in accordance with applicable city personnel policies or collective bargaining agreements. (Ord. No. 01-63, § 1, 12-18-01) Secs. 18-193--18-194. Reserved. ARTICLE V. DEFERRED COMPENSATION PLAN FOR UNCLASSIFIED PERSONNEL Sec. 18-195. Authorized. The city commission hereby authorizes execution of the Deferred Compensation Plan with the International City Management Association Retirement Corporation attached hereto as Appendix A. (Ord. No. 79-19, Art. I, § A, 12-5-79) Editor's note-Appendix A is not set out in this Code, but is on file in the office of the city clerk. Sec. 18-196. Agreements with employees authorized. The city commission hereby authorized the city manager to execute all joinder agreements with said employees and other eligible officials and officers which are necessary for said person's participation in the plan. (Ord. No. 79-19, Art. I, § B, 12-5-79) Pensions and Retirement 34A ARTICLE VI. FLEXIBLE BENEFIT PLAN Sec. 18-197. Authorized. The city commission hereby authorizes adoption and creation of an Internal Revenue Service Code Section 125, Flexible Benefit Plan, for insurance premiums only. (Ord. No. 90-41, § 1, 9-18-90) Sec. 18-198. Payroll deductions. The city shall implement payroll deductions in conformity with the flexible benefit plan and the Internal Revenue Code Section 125, as amended from time to time. (Ord. No. 90-41, § 1, 9-18-90) Sec. 18-199. Pension plan contributions. All pension contribution calculations shall be based upon an employee's actual gross earnings without taking into account the dollar amount of any flexible benefits provided pursuant to this article. (Ord. No. 90-41, § 1, 9-18-90) ARTICLE VII. ELIGIBLE ROLLOVER DISTRIBUTIONS Sec. 18-200. Trust-to-trustee transfer. If the intended recipient of any "eligible rollover distribution," as the term is defined in Section 402(c)(4) of the Internal Revenue Code of 1986, as amended, elects and directs to have such distribution paid directly to an "eligible retirement plan" as defined in the Internal Revenue Code, and specifies the particular "eligible retirement plan" to which the distribution is to be paid (in such form and at such time as the plan administrator or board of trustees to trustee may prescribe), then the distribution will be 2002 S-17 made in the form of a direct trustee transfer to the specified "eligible retirement plan" and shall not be subject to withholding tax as provided for in Section 402 of the Internal Revenue Code of 1986, as amended. (Ord. No. 93-10, § 2, 5-18-93) Secs. 18-201--18-220. Reserved. ARTICLE VIII. INVESTMENT POLICIES* *Editor's note-Ord. No. 94-52, ~ 1, adopted Dec. 20, 1994, created Art. l/lit Investmentpolicies. Sec. 2 of such ordinance provided that subsections (d) and (d. 1) of char., ~ 20.1 be transferred and renumbered under Art. VIII; hence, such provisions were redesignated as ~' 18-221 and 18-222. It should further be noted that Ord. No. 92-7, 3~ 3, adopted Apr. 21, 1992, provided that to the extent any investment policy [in subsection d. 1 (now ~ 18-222)] conflicts with an existing policy in subsection (d)[~ 18-221], the policy in this ordinance [~ 18-222] shall control and supersede. Sec. 18-221. Pension and retirement fund-Generally. The policies and limitations set forth in this section shall govern the investment of the funds of city pension and retirement systems; provided, these investment policies shall not constitute a contractual part of any system and may, in the interest of members of the system, be altered by amendment made in the manner provided or authorized by this article. T h a m a i n t a i n 34B Boynton Beach Code i i n v e s t m e n t S (2) The funds of each system may, subject to the limitations set forth in this section, be deposited in savings banks or federal savings and loan associations up to the amount, as to each bank or association, guaranteed by the United States or an agency thereof, and may be invested in debt securities, including tax sale certificates limited to those of the city of any other municipality within the state, and of Palm Beach County, and in preferred and common stocks and mutual fund shares. (3) Of the total fund principal in any system, including the amounts deposited in banks or associations, the total amount thereof invested in tax sale certificates shall not exceed thirty (30) per cent; of the total amount thereof invested in preferred stocks and in debt securities other than tax sale certificates may aggregate one hundred (100) per cent; the total amount thereof invested in preferred stocks shall not aggregate more than twenty (20) per cent; and the total amount thereof invested in common stocks and mutual fund shares shall not aggregate more than sixty-five (65) per cent. Percentages shall be based on cost or amortized cost to the fund of all securities purchased. (4) The following minimum standards shall, as to the funds of each pension and retirement system, govern the eligibility of securities for acquisition as fund investments: a. All corporate and association securities and mutual fund shares shall be issued by a corporation or other legal person incorporated or otherwise organized within the United States and domiciled therein. 2002 S-17 t h e f U n d P r i n C i P a 1 t e n t h 0 U S a n d d 0 1 1 a r s S i a n s s e c u r i t Y 0 t 0 b 1 i g a t i 0 n S a n d P r f r r d S t 0 C k S S h a 1 1 r a t d A h i g h r I n v S t 0 r S S e r v i C S P 0 0 r S C 0 r a t i 0 n n t 0 C 0 m m 0 n S t 0 C k t h a t i n C 1 U d e w a r r a n t S t h e P U r r e 1TI b P t C 0 n v r S i 0 n P t h 0 S e b a n k S a n d i n S U r a n C e c o m P a n i e s a n d e x c e P t m U t S t 0 C k E X C h a n g e t h e A m e r i C a n S t 0 C k E X C h a n g e t a c t e r e o f Pensions and Retirement 35 Sec. 18-222. f. All common stocks and mutual fund shares must have a record of uninterrupted dividend payments throughout the ten-year period immediately preceding the acquisition of the stock as a fund investment. g. At least nine (90) per cent of the total investments of each mutual fund invested in shall qualify as eligible under the provisions of this section as a direct investment of the pension and retirement system. (5) All investments of funds of each existing system made prior to the adoption hereof may, in the discretion of its trustees, be retained as investments. Deferred retirement option plan. (a) A deferred retirement option plan ("DROP") is hereby created. (b) Eligibility to participate in the DROP is based upon eligibility for normal service retirement in the plan. (c) Participation in the DROP must be exercised within the first thirty (30) years of employment; provided, however, that participation in the DROP, when combined with participation in the retirement plan as an active member, may not exceed thirty (30) years. The maximum period of participation in the DROP is five (5) years. An employee's election to participate in the DROP plan shall be irrevocable and shall be made by executing a resignation notice on a form prescribed by the City. (d) Upon exercising the right to participate in the DROP, an employee's creditable service, accrued benefits and compensation calculation shall be frozen and shall utilize the average of the five (5) highest of the ten (10) years immediately preceding participation in the DROP as the compensation basis. Accumu-lated, unused sick and vacation leave shall be included 2001 S-16 in the compensation calculation; provided, however, that a minimum balance of 120 hours of sick leave and 120 hours of vacation leave shall be maintained by the employee and excluded from this calculation. The retained leave balance, including any additions, shall be distributed at the conclusion of DROP participation and separation from service. (e) Payment shall be made into the employee's DROP account as if the employee had terminated employment in the City in an amount determined by the employee's selection of the payment option. (f) An employee's account in the DROP program shall earn interest in one of three ways. The selection of the earnings program shall be irrevocable and shall be made prior to the first deposit in the DROP account. The options are: (g) An employee shall terminate service with the City at the conclusion of five (5) years in the DROP. (h) All interest shall be credited to the employee's DROP account on the last day of the month in which the member separates from service. In the event that a member dies while in the DROP, interest shall be pro-rated to the last business day of the month preceding the death of the member. (i) Upon termination with the City, an employee may receive payment within forty-five (45) days of the member requesting payment or may defer payment until a time not later than the latest date authorized by Section 401 (a)(9) of the Internal Revenue Code at the option of the member. (1) (2) Gain or lose interest at the same rate as the Plan; or, At an annual fixed rate of seven percent (7%); or, (j) Payments from the DROP may be received as a lump sum installment payment or annuity, provided, however, that at all times, the DROP shall be subject to the provisions of the Internal Revenue Service. (3) In a self-directed account utilizing mutual funds selected by the board. 36 Boynton Beach Code (k) No payment may be made from the DROP until the employee actually separates from service with the City. (1) If an employee shall die during participation in the DROP, a survivor benefit shall be payable in accordance with the form of benefit chosen at the time of entry into the DROP. Incentive Program and Eligibility. The City Commission hereby creates an Early Retirement Incentive Program for any full-time City employee who on April 1,2001, has been a full-time employee for a minimum of seventeen years and is within three (3) years of normal retirement (Ord. No. 00-66, § 2, 11-21-00) (m) Upon commencement of participation in the DROP, the member shall no longer be eligible for disability retirement from the pension plan. If a member becomes disabled during the DROP period, the member shall be treated as if he/she retired on the day prior to the date of disability. (Ord. No. 00-13, § 1, 4-18-00) ARTICLE IX: EARLY RETIREMENT INCENTIVE PROGRAM Sec. 18-223. Creation of Early Retirement Sec. 18-224. Requirement for Agreement for Participation. Any full-time City employee who on April 1 2001 has a minimum of seventeen years service, and is within three years of normal retirement is eligible to participate, conditioned on the employee executing an Agreement for Participation and Waiver no later than 5:00 P.M., January 19, 2001 designating a last date of employment not later than April 1,2001. The actual retirement date shall be no earlier than January 20, 2001 and no later than April 1,2001. The actual retirement date must be approved by the City Manager, who shall take into consideration the operational impact on the Department from which the employee is retiring. (Ord. No. 00-66, § 3, 11-21-00) 2001 S-16 Sec. 18-225. Benefit Provided. Eligible employees who elect to participate will receive: (a) Three years added to years of service time and/or years of age In no event will the credited time of service or years exceed three years total. (b) The City of Boynton Beach will continue to pay health insurance at prevailing single coverage premium rates for all employees who elect to participate, through March, 2004. (c) When necessary to fully vest an employee in the police or fire service for years credited pursuant to this incentive, but not actually served or rendered, the pension administrator and the plan actuaries shall provide a benefit calculation factor for such police or fire employee which, when applied, result in the employee receiving the full retirement benefit set forth herein, without offset or penalty. (Ord. No. 00-66, § 4, 11-21-00) Sec. 18-226. Statement of Actuarial Impact. The City Commission adopts, issues and certifies as its own, the final statement of actuarial impact and analysis of the proposed Early Retirement System prepared by Gabriel, Roeder & Smith for Police and Fire Pensions, and General Employees, copies of which are attached to Ordinance No. 00-66 as composite Exhibit ~A." (Ord. No. 00-66, § 5, 11-21-00) Sec. 18-227. Deadline for participation. Eligible employees who elect to participate in the Early Retirement Incentive Program must execute an Agreement for Participation and Waiver of Rights form on or before 5:00 p.m. on January 19, 2001. (Ord. No. 00-66, § 6, 11-21-00) Pensions and Retirement 37 Sec. 18-228. Filing with Division of Management. The City administration and the administrators of the retirement plans, in accordance with the requirements of Florida Statutes Chapter 112, and Rule 60T-1.004, are directed to certify and furnish a copy of Ordinance No. 00-66, together with the statement of actuarial impact referenced herein to the Department of Management, Division of Insurance. The City administration and plan administrators are authorized to make such supplemental filings with the Division of Insurance as is necessary to effectuate this Early Retirement Incentive Plan. (Ord. No. 00-66, § 7, 11-21-00) Sec. 18-229. Execution of agreements. The City Commission authorizes the Mayor, City Manager and City Clerk to execute Agreements for Participation In Early Retirement Incentive Program and Waiver of Rights forms with eligible employees. A copy of the Agreement for Participation is attached to Ordinance No. 00-66 as Exhibit "B." (Ord. No. 00-66, § 8, 11-21-00) Sec. 18-230. Ratification of forms. The City Commission adopts and ratifies the Commencement Notice, Acknowledgment of Receipt of Program Commencement Notice, Information Fact Sheet, and Employee Declination to Participate forms, heretofore prepared by the City administration, copies of which are attached to Ordinance No. 00-66 as Exhibits "C," "D," 'GE" and "F" respectively. The City Administration is authorized to modify these forms when modification is necessary to facilitate the objectives of this Article or when amendment is required to conform the forms to requirements of state or federal law. (Ord. No. 00-66, § 9, 11-21-00) 2001 S-16 38 Boynton Beach Code