06-092
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1 ORDINANCE NO. Db- Cflf)..
2
3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH,
4 FLORIDA, CREATING SECTION 18-180.2 OF THE
5 BOYNTON BEACH CITY CODE PROVIDING FOR A
6 TWO PERCENT AUTOMATIC ANNUAL DELAYED
7 COLA FOR THE FIREFIGHTER PENSION FUND;
8 AMENDING SECTION 18-186 TO PROVIDE FOR
9 TWELVE PERCENT MEMBER CONTRIBUTIONS
10 INTO THE PENSION FUND; REPEALING ANY
11 ORDINANCE IN CONFLICT; PROVIDING A
12 CONFLICTS CLAUSE; PROVIDING AN EFFECTIVE
13 DATE.
14
15 WHEREAS, the City of Boynton Beach Florida, presently has a retirement plan and
16 trust fund for firefighters;
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18 WHEREAS the purchase of benefits funded through higher member contributions is
19 authorized under Section 175.071, Florida Statutes;
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21 WHEREAS the membership of the Firefighter Pension Trust Fund overwhelming
22 voted to purchase a cost of living adjustment funded with higher member contributions;
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24 WHEREAS the proposed plan change and actuarial impact statement of the proposed
25 change has been furnished to the Division of Retirement prior to second and final reading of
26 the ordinance;
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28 WHEREAS the Board of Trustees of the Firefighter Pension Trust Fund has
29 recommended the passage of this Ordinance; and
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31 WHEREAS the City Council finds that the passage of this Ordinance is in the interest
32 of the firefighters and the citizens of the City of Boynton Beach;
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34 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
35 CITY OF BOYNTON BEACH, FLORIDA:
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37 Section I. The foregoing "Whereas" clause is hereby ratified and confirmed as
3 8 being true and correct and is incorporated herein by this reference.
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Section 2: Section 18-180.2 is hereby created to read as follows:
Section 18-180.2 Cost of Livin!!: Increase.
Effective DecemberOctober L 201 L an automatic two percent (2%) annual cost of living
adiustment (COLA) is created for all members who retiree or enter into the DROP on or after
. Sefltember December L 2006. Payment of annual COLA benefits shall not begin until five
years after retirement or entrv into the DROP. As of each October first. retirees in pay status
and beneficiaries receiving monthlv survivorship benefits on behalf of deceased members.
shall have their benefits adiusted annually. following the five-year delay. Retirees eligible to
receive annual COLA benefits shall include all retirees electing early retirement and all
I disability retirees who enter pay status on or after October I December 1. 2006.
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Everv third vear following adoption of this Ordinance. an actuarial evaluation of the cost of
this benefit (2% COLA adiustment for retirees) will be provided to the Citv by the Pension
Plan's actuary. or other actuary designated bv the City at it's option. In the event the projected
cost of the benefit increases over the proiected cost for fiscal vear 2006-2007. the Pension
Plan shall be further amended to provide that the increased costs will be offset by (1) an
increase in the 5% employee contribution provided herein. or (2) use of Chapter 175 funds. or
(3) reduction of the cost of living (COLA) benefit for non-retired members. or any
combination of (1), (2) or (3), as recommended by the Pension Board in consultation with the
membership. Notwithstanding any provision to the contrary. COLA benefits under this
paragraph shall not be reduced for retirees.
In vears where the actuarial evaluation described above determines that the cost of the COLA
benefit is less than the proiected cost for the benefit for fiscal year 2006-2007. the actuarial
savings shall be recognized in a contribution reserve account within the Pension Plan. Any
savings accumulated in the contribution reserve account shall be held in trust to be used to
offset unanticipated COLA costs in future years.
Section 3: Section 18-186 is hereby amended to read as follows:
Section 18-186. Payroll deductions; Employee, State and City contributions.
Effective November 270ctober I, 2006, the City of Boynton Beach shall deduct from all
firefighters entitled to the benefits of the article, se\'efl twelve (1 12%) 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 no circumstances more than five (5) days after receipt by the
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1 ! City. The City shall make annual contributions to the trust fund, as needed, in an amount at
2 least equal to the difference each year between the total member contributions plus state
3 I contributions for the year, less the total cost for the year as shown by the most recent actuarial
4 valuation for the system. The City's contribution, if so required, shall be deposited on at least
5 a quarterly basis.
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Section 4: That all Ordinances or parts of Ordinances in conflict herewith be and
the same are hereby repealed.
Section 5: Should any section or provision of this Ordinance or portion hereof, any
paragraph, any sentence, or word be declared by a court of competent jurisdiction to be
invalid, such decision shall not affect the remainder of this Ordinance.
Section 6:
Authority is hereby granted to codify this Ordinance.
16 Section 7: This Ordinance shall become effective immediately upon passage,
17 provided that the following have occurred:
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19
(a)
the City Commission has received a report establishing the actuarial soundness of
these amendments; and;
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(b)
when the City Commission has received a letter from the firefighter union waiving
bargaining on the adoption of this Ordinance.
FIRST READING this ~I day of NOVe," be-r
,2006.
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SECOND, FINAL READING and PASSAGE this.5 day of ~nW-<;u
!2006.
CITY OF BOYNTON BEACH, FLORIDA
!ry'/;::~
Mayor .
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Commissioner
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ATTEST:
(CORPORATE SEAL)
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