06-079
II
ORDINANCE 06- 079
AN ORDINANCE OF THE CITY OF BOYNTON BEACH,
FLORIDA AMENDING CHAPTER 18, ARTICLE II, DIVISION 4
OF THE CODE OF ORDINANCES OF THE CITY OF BOYNTON
BEACH, FLORIDA TO AMEND SECTION 18-111, ENTITLED
"NORMAL RETIREMENT," TO CLARIFY THE INTENT WITH
RESPECT TO ISSUANCE OF A SUPPLEMENTAL BENEFIT;
PROVIDING FOR CODIFICATION; PROVIDING FOR
CONFLICTS; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on June 18,2002, the City Commission adopted Ordinance No.
02-026 providing a supplemental benefit for the participants ofthe General Employees'
Pension Plan (the "Plan") in lieu of providing a cost of living increase to the retirees
each year; and
WHEREAS, the intent of the supplemental benefit was to provide a
supplemental benefit, or 13th Check, to the retirees of the Plan in any year in which the
net investment rate ofretum exceeds the assumed rate ofretum for the Plan; and
WHEREAS, the supplemental benefit must comport to the regulations of Part
VII of Chapter 112, Florida Statutes, which provides that the present value of any
additional benefit may not exceed the net actuarial experience accumulated from all
sources of gains and losses; and
WHEREAS, pursuant to this requirement, the determination of when a
supplement benefit payment will issue is an actuarial determination, as opposed to a
financial determination; and
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WHEREAS, Plan participants mistakenly assumed that a supplemental check
would issue in any year that the Plan realizes greater than an 8% retum on investment
without regard to total performance; and
WHEREAS, it is the desire of the City Commission to amend the Plan, as
recommended by the Board, to clarify this matter;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION
OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1.
The foregoing "WHEREAS" clauses are hereby certified as
being true and correct and are incorporated herein by this reference. All exhibits
attached hereto are hereby incorporated herein.
Section 2.
The City Commission of the City of Boynton Beach, Florida
hereby amends Chapter 18, Article II, Division 4, Section 18-111 of the City Code of
Ordinance of the City of Boynton Beach, entitled "Normal Retirement", as follows:
Section 18-111.
Normal Retirement.
(e) Commencing October I, 2001, in lieu of receiving a cost of
living increase retirees may be eligible to receive a supplemental pension
distribution payable by the following July I st, 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 all participants whose benefit was in
pay status as of the previous October I st. 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 shall the supplemental
benefit exceed the average monthly benefit of those retirees receiving a
monthly benefit calculated as of the previous October I st.
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(1) The actuary for the Pension Fund shall determine the rate of
investment return earned on the Pension Fund assets during the twelve
(12) 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 iw:estmeHt retHffl eees net eJ(eeee tHe assHmee rate of investment
retHffi. present value of such benefits does not exceed the net actuarial
experience accumulated from all sources of gains and losses since this
benefit was enacted.
(4) If there shall be a supplemental distribution, the 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
participation in the DROP.
Section 3.
It is the intention of the City Commission of the City of Boynton
Beach that the provisions of this Ordinance shall become and be made a part of the
Code of Ordinances of the City of Boynton Beach, Florida. The Sections of this
ordinance may be renumbered, re-lettered and the word "Ordinance" may be changed
to "Section", "Article" or such other word or phrase in order to accomplish such
intention.
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Section 4.
All Ordinances or parts of Ordinances, Resolutions or parts of
Resolutions in conflict herewith be and the same are hereby repealed to the extent of
such conflict.
Section 5.
If any clause, section, or other part or application of this
Ordinance shall be held by any court of competent jurisdiction to be unconstitutional or
invalid, such unconstitutional or invalid part or application shall be considered as
eliminated and so not effecting the validity of the remaining portions or applications
remaining in full force and effect.
Section 6.
This Ordinance shall become effective when the following have
occurred:
(a) the City Commission has received and has accepted a report establishing
the actuarial soundness ofthese amendments;
(b) when a collective bargaining agreement ratifying the foregoing changes to
pension benefits has been ratified by the City Commission and the General
Employees' Pension Board of Trustees, or their successor organization;
and
(c) a copy of this Ordinance is transmitted to the State of Florida Division of
Retirement.
Upon satisfaction of all of the above requirements, then in that event, the terms
and provisions of this Ordinance shall become effective.
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FIRST READING this -.tL day of Se (lTE.MBER. , 2006.
SECOND, FINAL READING and PASSAGE this I' day of
Oc.7bBER. , 2006.
CITY OF BOYNTON BEACH,
FLORIDA
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