Boynton18 Chapter 18
PENSIONS AND RETIREMENT
Art. I. Social Security, §§ 18-1—18-54
Div. 1. Generally, §§ 18-1—18-18
Div. 2. For Policemen, §§ 18-19—18-36
Div. 3. For Firemen, §§ 18-37—18-54
Art. II. Employees’ Pension Plan, § 18-55—18—163
Div. 1. Generally, §§ 18-55—18-73
Div. 2. Membership and Service, §§ 18-74—18-92
Div. 3. Contributions and Funding, §§ 18-93—18-110
Div. 4. Retirement and Retirement Benefits, §§ 18-111—
18-134
Div. 5. Administration of the Plan, §§ 18-135—18-163
Art. III. Municipal Police Officers’ Retirement System, §§ 18-164—18-178
Art. IV. Pensions for Firefighters, §§ 18-179—18-194
Art. V. Deferred Compensation Plan for Unclassified Personnel, §§ 18-195, 18-196
Art. VI. Flexible Benefit Plan, §§ 18-197—18-199
Art. VII. Eligible Rollover Distributions, §§ 18-200—18-220
Art. VIII. Investment Policies, §§ 18-221, 18-222
Art. 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) Service of an emergency
nature;
(b) Service in any class or classes of positions the compensation for which is on a fee basis;
(c)
Service performed by a student for the school in which he is enrolled.
(Code 1958, § 21-1)
Sec. 18-2. Personnel excluded.
There is hereby excluded from the benefits provided by section 18-1 any authority to include in any agreement entered into under section 18-3 hereof any service, position, employee
or official now covered by or eligible to be covered by an existing retirement system.
(Code 1958, § 21-2)
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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.
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(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
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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.
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DIVISION 3. FOR FIREMEN
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. (Code 1958, § 21-19)
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 “eligible 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.
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 to, an annuity, retirement allowance, or other benefit 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,
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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 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)
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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
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punishable as provided under the laws of the State of Florida. (Code 1958, § 21-29)
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 such year, or
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in any later year or years, for all members affected by this paragraph; provided, however, that the total amount of such supplemental payments in any
year shall not exceed the aggregate employer contributions already made under the plan in the year then c
urrent.
(c) If the employment of a member with the city is terminated for reasons other than death or reti
rement, benefits which thereupon may be distributed or made available to him shall not exceed the amount t
o which such member would then be entitled under paragraph (1) of subsection (a) of this section if the pl
an were then terminated. Any excess benefits to which such member would otherwise have been entitled may a
lso be distributed or made available to him in the next succeeding year or years provided (1) the city has
met the full current costs of the plan, and (2) the benefits distributed or made available in any succeed
ing year shall not exceed an amount which when added to the amounts previously distributed to him pursuant
to this subsection will not exceed the amount to which he then would be entitled under said paragraph (1)
if this plan were then terminated.
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 “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
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before the first plan year beginning after September 30, 1996.
(Ord. No. 96-36, § 1, 7-16-96)
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
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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)
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Sec. 18-80. Leaves of absence.
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 by the 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)
Secs. 18-101—18-110. Reserved.
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:
(1) An employee
who retires prior to October 6, 1988, shall be eligible to receive a monthly benefit computed in accordan
ce with the provisions of the plan as in effect as of the date of his retirement; provided, however, that
with respect to those employees who retired prior to January 1, 1977, effective as of January 1, 1977 the
retirement benefit payable to each such individual was
2002 S-18 Repl.
Pensions and Retirement 12A
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.
(2) 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.
(3) 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
any event to a maximum of seventy-five percent (7
5%) of his or her Final Average Monthly Compensation.
(4) “Final average monthly compensation,” for the pu
rposes of this section, shall mean the monthly average of the employee’s earnings during the highest sixty
(60) consecutive calendar months occurring in the one hundred twenty (120) calendar months immediately pr
eceding his normal retirement date if such date falls on or after January 1, 1979, and based upon compensa
tion
immediately preceding actual retirement date if normal retirement date preceded January 1, 1979, or he
elected to continue to contribute after normal retirement date as provided in section 18-95. “Earnings” a
s used in the above sentence shall mean gross earnings received by the employee as compensation for servic
e to the city including overtime pay and sick pay paid in the lump sum at termination or retirement but ex
cluding bonuses.
(5) Elective Benefits. The City may, from time to time, offer elective benefits to employees, which benefits would be funded solely by
employees contributions and would not result in any additional cost to the City.
(e) Commencing October 1, 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
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 all participants whose benefit was in pay status as of 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 shall the supplemental benefit exceed the average monthly benefit
of those retirees receiving a monthly benefit calculated as of the previous October 1st.
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 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, 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; Ord. No. 06-079, § 2, 10-17-06)
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)
2006 S-27
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.
(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)
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
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.
(1) The immediate lump sum payment is equal to the greater of t
he employee's contributions, together with the interest thereon at the rate of five percent (5%) per annum
, or the lump sum value of the actuarial calculation of the employees' accrued pension payable at the earl
iest date the employee could have retired.
(2) The monthly survivor benefit would be the actuarial calculation of the employee's accrued pension starti
ng at the earliest date the member could have retired. If the beneficiary's age is more than fifteen (15)
years less than the employee's age at the time of death, then the monthly benefit will
be reduced as though
the beneficiary was
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 S-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. 18-123. 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)
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.
(1) Re-employment full-time: A person who
leaves the employ of the city after vesting or receiving a pension from any one of the city’s pension plan
s can be re-employed at the option of the city on a full-time basis, provided they are no longer a member
of the plan they are or will be receiving benefits from. A person who is re-employed shall be entitled to
participate in the city’s pension plan for his/her position provided he/she is otherwise eligible to join
that plan pursuant to the plans’ provisions.
(2) Re-employment on a part-time basis: Said part-time employ
ment shall not exceed one thousand six hundred (1,600) hours per year. During this period of part-time emp
loyment, the employee shall not be allowed to make contributions to the pension fund nor shall such period
of service count toward credit for the employee’s credible service nor in figuring the average final comp
ensation of the employee.
(Ord. No. 80-52, § 1, 12-16-80; Ord. No. 93-31, § 1, 9-7-93)
Sec. 18-126. Disability retirement benefits.
(a) Any member with less than 10 years of service who receives a medically substantiated injury, disease or disability, which injury, disease or disability totally and permanently disabled
him/her to the extent that, in the opinion of the Long Term Disability Company, 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 retirement date, and return to full-time employment with the City of Boynton Beach, credit for service during the period of disability shall be granted
for purposes of subsequent retirement benefits.
2005 S-23 Repl.
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 three (3) ways. The selection of the earnings program shall be made prior to the first deposit in the
DROP account and may be modified once each year by the participant during their participation in the DROP. The investment method may be changed each year effective January 1st, however,
the method must be elected prior to January 1st on a form provided by the Board of trustees. The options are:
(1) Gain or lose interest at the same rate as the Plan;
(2) At an annual fixed rate of seven percent (7%); or
(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 seven percent (7%). The actual percentage shall be selected by the member on a form provided by the Board of Trustees. The total of the two (2) percentages must
equal one hundred percent (100%).
The participant's DROP accounts will be assessed an administrative fee that is based upon the ratio that the participant's DROP account bears to the fund as a whole.
(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.
(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 Code.
(k) No payment may be made from the DROP until the employee actually separates from service with the City.
(l) 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; Ord. No. 04-053, § 2, 8-3-04)
Sec. 18-128. Elective benefits.
(a) Elective benefits are benefits offered to the members of this plan and are voluntary elections, the costs of which are borne entirely by the member through payroll deductions during
their employment
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Pensions and Retirement 18A
with the city. Such deductions are taxable dollars at the time the deduction is made. A member may voluntarily elect to participate in those elective benefits available in order to
supplement and enhance their retirement benefits provided pursuant to this plan.
(b) Open enrollment. A member may elect to enroll or cancel an elective benefit only during the open enrollment period. The open enrollment period shall occur in September of each
year. Once an elective benefit is cancelled, any contributions made will remain in the plan until the member is no longer actively employed. Upon such separation from service, contributions
shall be reimbursed to the member, except as otherwise provided in this section. No interest earnings will be applicable to the premiums contributed. The cancellation of such elective
benefit is irrevocable and the member may not re-enroll for such elective benefit in the future.
(c) Costs. The costs for all elective benefits are borne by the member through payroll deductions during employment with the city. The cost for each benefit shall be actuarially determined
on an annual basis based upon the premiums to fund the various options selected. Any change in rates associated with the elected benefit options selected is passed on to the participant.
(d) In the event of death before retirement of any participant, all premiums paid shall be refunded to the beneficiary. If the employee was eligible for normal retirement and the retirement
annuity option had already been selected by the employee, the deceased member's earned pension amount will be actuarially reduced to a joint and survivor form and two–thirds (2/3) of
this amount will be paid to the survivor for their lifetime. For the twenty-five (25) year retirement at any age benefit option, the retirement factor used shall be the factor which
provides the most benefit to the employee.
(e) Elective benefits. There are four elective benefits options available. A member may select as many as they desire, but will be required to pay for each option selected through
a payroll deduction. A member may select either the health insurance subsidy
or the health insurance subsidy with two percent (2%) per year COLA, but not both. Once either of the health insurance subsidy benefit options is selected, the member may not change
to the other form of health insurance subsidy benefit option. The elective benefit options available are as follows:
(1) Option 1A - health insurance subsidy.
a. The health insurance subsidy will provide a monthly benefit up to $200 per month upon normal retirement. In the event of death prior to retirement, where the member is eligible
for normal retirement and the retirement annuity option has been elected by the employee, the $200 per month will be actuarially reduced to a joint and survivor form of benefit and
two-thirds (2/3) of this amount will be paid to the survivor for their lifetime.
b. The amount to be received for the health insurance subsidy at retirement is based on years of contributions by the employee. The full benefit of $200 per month is based upon twenty-five
(25) years of employees contributions. A prorated benefit will be provided for years of contributions less than twenty-five (25) years.
Illustration for prorated health insurance subsidy:
Member age @ hire 30
Member age @ retirement 55
Years of premium payment 5
(5yrs/25yrs = 20%)
Monthly benefit $40
($200 subsidy x 20%)
Based upon this illustration, the employee contributed for five (5) years which represents 5/25, or twenty percent (20%) of the full benefit calculated period. Therefore, the health
insurance subsidy at normal retirement would be twenty percent (20%) of $200, or $40.
(2) Option 1B - health insurance subsidy with two percent (2%) per year COLA.
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18B Boynton Beach Code
(a) The health insurance subsidy with two percent (2%) Cost of Living Adjustment ("COLA") will provide an initial monthly benefit up to $200 per month at normal retirement in 1999.
In the event of death prior to retirement, where the member is eligible for normal retirement, and the retirement annuity option has been selected, the $200 per month will be actuarially
reduced to a joint an survivor form of benefit and two-thirds (2/3) of this amount will be paid to the survivor for their lifetime. The $200 per month will be indexed by two percent
(2%) per year, compounded for all affected members.
(b) The amount to be received for the health insurance subsidy with two percent (2%) COLA at retirement is based upon years of contributions by the employee. The full benefit of
the indexed insurance subsidy per month is based upon twenty-five (25) years of employee contributions. A prorated benefit will be provided for years of employee contributions less
than twenty-five (25) years.
Illustration for prorated health insurance subsidy with two percent (2%) COLA:
Member age @ hire 30
Member age @ retirement 55
Years of premium payment 8
(8yrs/25yrs = 32%)
1st year monthly benefit $64
($200 subsidy x 32%)
2nd year monthly benefit $65.28
($204 subsidy x 32%)
(3) Option 2 – Cost-of-Living Adjustment ("COLA"). The Cost of Living Adjustment ("COLA") provides a five percent (5%) deferred COLA commencing five (5) years after retirement and
compounded with additional five percent (5%) increases every three (3) years thereafter. Spouse benefits, if elected, would also be eligible for the COLA, but the actuarial equivalent
factors at retirement for conversion to the joint and two-third (2/3) survivor benefit would need to be updated. A
prorated benefit will be provided for years of employee contributions less than twenty-five (25) years.
Illustration of the Cost-of-Living Adjustment (COLA):
Member age @ hire 50
Member age @ retirement 62
Years of premium payment 12
(12yrs/25yrs = 48%)
COLA Benefit 2.4%
(5% COLA x 48%)
An employee that made full contributions for this elective benefit option would receive a five percent (5%) COLA. Since the illustrated employee contributed 12 years toward the COLA
it has been prorated to two point forty percent (2.40%) which represents forty-eight percent (48%) of the fully contributed percentage.
Aggregate premium $2,807
ER factor 72.51 %
Adjusted ER factor 78.01%
(27.49 diff (&, 20%)
(Adjusted factor of 72.51% + Differential of (100.00-72.51) x 20%)
(Ord. No. O06-027, § 2, 4-4-06)
Secs. 18-129—18-134. Reserved.
DIVISION 5. ADMINISTRATION OF THE
PLAN
Sec. 18-135. Board of Trustees.
(a) Composition of the Board. The composition and terms of the seven (7) members of the Board of Trustees of the Employees’ Pension Plan of the city are hereby established as follows:
(1) The Mayor.
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Pensions and Retirement 18C
(2) The City Manager.
(3) Two (2) individual citizens who shall be appointed by the City Commission to serve for three (3) year staggered terms.
(4) One (1) employee representative member shall be elected at-large by the members of the Plan to serve a three (3) year term.
(5) One (1) employee representative member shall be elected to serve a three (3) year term by all members of the plan from the general membership of the plan, provided the member is
a member of a bargaining unit of the city.
(6) One (1) employee representative member shall be elected to serve a three (3) year term by all members of the plan from the general membership of the plan, provided the member is
not a member of a bargaining unit of the city.
(7) Employee representatives on the Board must be actively employed at the city to be elected to the Board. An employee who enters the DROP as provided in § 18-127, may continue to
serve out the remainder of their term on the Board, but an employee representative may not be elected to the Board if they have already entered into the DROP prior to the election.
(8) The terms of the employee representatives on the Board shall be staggered.
(b) Vacancies.
(1) If an elective seat on the Board is vacated for any reason, an election to fill the vacated position shall be conducted. However, if an elected Board member retires before the
expiration of their term, such Board member may continue to hold such elective seat for the balance of their elected term.
(2) If an appointive seat on the Board is vacated for any reason, the seat shall be filled by appointment by the appointing body.
(3) A replacement member shall serve on the Board for the unexpired term of the person replaced.
(c) Conduct of elections.
(1) The Board of Trustees shall be elected by a per capita vote of all employees, retirees and individuals who are on approved disability leave. The candidate(s) receiving fifty percent
(50%) plus one (1) of the votes shall be declared elected and shall take office as soon thereafter as qualified.
a. Such election shall be conducted by first class mail. Such mailing shall include:
1. A letter of instruction written in a manner calculated to be understood by the average recipient;
2. A ballot approved by the Board;
3. A Board approved form which contains a description of each candidates’ profile or description of qualifications which has been submitted to the pension office by the candidate
no later than thirty (30) days prior to an election; and
4. A postage paid return envelope.
b. Mail ballots must be received in the return envelope by the deadline provided by the Board.
c. All ballots shall be received ad counted under the supervision of the Pension Administrator or other designee(s) of the Board.
d. Only one (1) ballot per member shall be permitted.
(2) The Board may rely on the address maintained by the city’s Human Resource Department as accurate and current with respect to persons entitled to vote for the purposes of notice
and mailing ballots.
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18D Boynton Beach Code
(3) Notice of the election shall be provided to all qualified persons entitled to vote in person, by mail and by notice posted on city bulletin boards and included with members paychecks
and pension or disability checks ninety (90) days in advance of an election. Candidates may register to run for a position on the Board sixty (60) days prior to the conduct of the election.
The ballots shall be mailed out thirty (30) days prior to the election date.
(4) The results of the election shall be placed on the next Board agenda immediately following the election for certification of the election results.
(Ord. No. 06-026, § 2, 4-4-06)
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 decisions, acts and resolutions
of the board shall be by affirmative vote of at least three 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.
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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)
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
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 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 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. City of Boynton Beach Investment Policy for
General Employees’ Pension Fund.
(a) General. The Board of Trustees of the Boynton Beach General Employees’ Pension Fund has established this Statement of Investment Policy. This policy has been identified by the
Board as having the greatest expected investment return, and the resulting positive impact on asset values, funded status, and benefits, without exceeding a prudent level of risk.
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18F Boynton Beach Code
The Board determined this policy after evaluating the implications of increased investment return versus increased variability of return for a number of potential investment policies
with varying commitments to stocks and bonds.
(b) Purpose. The purpose to this section is to:
(1) Provide the Investment Manager a more accurate understanding of the trustees’ investment objectives; and
(2) Indicate the criteria by which the Investment Manager’s performance will be evaluated.
(c) Investment Manager responsibilities.
(1) Within the guidelines and restrictions set forth herein, it is the intention of the Board to give the Investment Manager full investment discretion, with respect to assets under
its management. The Investment Manager shall discharge its responsibilities in the same manner as it would if the fund were governed by the fiduciary, responsibility provisions of the
Employee-Retirement Income Security Act of 1974 (ERISA). Although the fund trustees acknowledge that ERISA does not apply to a governmental fund, it hereby imposes the fiduciary provisions
of ERISA upon the Investment Manager whose performance shall conform to the statutory provisions, rules, regulations, interpretations, and case law of ERISA. The Investment Manager shall
acknowledge, in writing, that it is a named fiduciary of the fund.
(2) The Investment Manager is expected to provide any reasonable information requested by the Board of Trustees. At a minimum, each Manager shall provide a quarterly report detailing
their investment activity, the portfolio’s current value, and any changes in investment philosophy or strategy. The firm’s Investment Manager is expected to meet with the Board of Trustees
at least once per year. A designated representative will meet with the Board of Trustees, at least quarterly. A designated representative of a mutual fund company is not required to
attend meetings with the Board of Trustees.
(3) Unless otherwise provided by the Custodian, the Investment Manager will monitor portfolio activity to minimize uninvested cash balances.
(4) The Investment Manager shall be responsible only for those assets under its management.
(5) It will be the responsibility of the Investment Manager to review the monthly valuations provided by the Custodian and to note, in writing, any significant discrepancies from the
valuations provided in their own reports.
(d) General objectives.
(1) The primary investment objective of the Boynton Beach General Employees' Pension Fund is the preservation of invested capital. The secondary objective is to achieve moderate long-term
real growth (after inflation) while minimizing the volatility of returns.
(2) To achieve these objectives, the Board seeks to create a well-diversified and balanced portfolio of high quality equity, fixed income and money market securities. The Board has
determined that one or more outside investment managers shall be retained to assure that all investments are managed in both a prudent and professional manner and in compliance with
the state investment guidelines.
(e) Investment objectives.
(1) Investment objectives are intended to provide quantifiable benchmarks to measure and evaluate portfolio return and risk. Most investment styles require a full market cycle to
allow an investment manager to demonstrate his abilities. A full market cycle is generally defined as a three (3) to five (5) year period. As a result, performance objectives will be
measured over three (3) to five (5) year periods. Monitoring shorter periods may be used to determine the trend of performance premiums or deficiencies.
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Pensions and Retirement 18G
(2) The specific objectives of the Boynton Beach General Employees' Pension Fund are as follows:
a. Primary objective:
1. To earn an average rate of return over the long term (three (3) to five (5) years) which exceeds the return of a Target Index. The Target Index for the Boynton Beach General
Employees' Pension Fund is defined as a fifty-five percent (55%) investment in the Russell 3000 Stock Index, a ten percent (10%) investment in the Europe Austrailasia and Far East Stock
Index (EAFE) and a thirty-five percent (35%) investment in the Merrill Lynch Master Bond Index.
2. In addition, it is expected that the total rate of return earned will rank above average when compared to a representative universe of other, similarly managed portfolios.
b. Secondary objective: A further goal of the Boynton Beach General Employees' Pension Fund shall be to achieve an average annual rate of return greater than the absolute return of
eight percent (8%), over the longer term. This absolute return objective will be evaluated in the context of the prevailing investment market conditions.
c. Volatility: The volatility of the Fund's total returns is expected to be similar to that of the Target Index and will be evaluated accordingly.
(3) The investment objectives set forth herein have been established for the entire Boynton Beach General Employees' Pension Fund. The specific investment objectives for each investment
manager will be outlined in separate documents which will be addenda hereto and incorporated herein to this overall statement of investment policy.
(f) Investment guidelines.
(1) The Board of Trustees has established the following target asset allocation for the entire Boynton Beach General Employees’ Pension Fund:
Target
Allocation
(at market)
Target
Range
(at market)
Equity securities
65%
30% - 75%
Fixed income securities
35%
30% - 70%
Cash
0%
0% - 10%
(2) To implement this strategy, the Board has chosen to hire one or more professional investment managers. Specific assignments and additional guidelines for each Investment Manager
will be outlined in addenda to this section. The following guidelines and restrictions apply to all fund investments.
(3) In accordance with the policies established by the Board of Trustees, the assets of the Boynton Beach General Employees' Pension Fund shall be invested in a diversified portfolio
of fully negotiable, equity, fixed income, and money market securities, provided they meet the following criteria:
a. Equity securities:
1. Investments in equity securities shall be limited to no more than 75% at market valuation of the fund's total asset value;
2. All equity investments shall be limited to fully and easily negotiable equity securities;
3. No more than 5% at cost value of an Investment Manager's equity portfolio may be invested in the shares of a single corporate issuer;
4. Investments in stocks of foreign companies shall be limited to 20% (at cost) of the total investment portfolio;
5. Investment in those corporations whose stock has been publicly traded for less than one year are limited to 15% of the equity portfolio; and
6. Equities may be managed through the purchase of open-end, no-load mutual
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18H Boynton Beach Code
funds or commingled funds. Those securities/funds purchased directly by investment advisors are expected to adhere to the guidelines herein. The Board implicitly accepts the policy
of a mutual or commingled fund when it makes a direct investment.
b. Fixed income securities:
1. The fixed income portfolio shall comply with the following guidelines:
(A) The average credit quality of the fixed income portfolio shall be rated “A” or higher; and
(B) The duration of the fixed income portfolio should be less than 135% of the duration of the market index. The market index is defined as the Merrill Lynch Master Bond Index.
2. Investments in all corporate fixed income securities shall be limited to:
(A) Those securities rated “BAA” or higher by Moody’s or by Standard & Poor’s rating services. Fixed income securities, which are downgraded below the minimum rating, shall be sold
at the earliest beneficial opportunity;
(B) Securities 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; and
(C) No more than 10% at cost of an Investment Manager’s total fixed income' portfolio shall be invested in the securities of any single corporate issuer.
3. Investments in Collateralized Mortgage Obligations (CMOs) shall be limited to 15% of the market value of the Investment Managers’ total portfolio and shall be restricted to issues
which meet all of the following criteria:
(A) All issues must be backed by mortgage securities issued, guaranteed, or fully insured by the Government National Mortgage
Association (GNMA), the Federal Home Loan Mortgage Corporation (FHLMC), the Federal National Mortgage Association (FNMA) or that are rated “Aaa” by Moody’s or “AAA” by Standard & Poor’s
rating services.
4. There is no limit imposed on investments in fixed income securities issued directly by the United States Government or any agency or instrumentality thereof.
5. Fixed income securities may be managed through the purchase of open-end, no-load mutual funds or commingled funds. Those securities/funds purchased directly by investment advisors
are expected to adhere to the guidelines herein. The Board implicitly accepts the policy of a mutual or commingled fund when it makes a direct investment.
c. Cash equivalent securities:
1. The Investment Manager may invest only in the following short-term investment vehicles:
(A) The money market or STIF provided by the plan’s Custodian;
(B) Direct obligations of the United States Government with a maturity of one year or less;
(C) Commercial paper with a maturity of 270 days or less that is rated A-1 or higher by Standard & Poor’s or P-1 or higher by Moody’s; and
(D) Bankers acceptances issued by the largest 50 banks in the United States (in terms of total assets).
(4) Prohibited investments. Investments in interest only or principal only CMOs, precious metals, limited partnerships of any kind, direct investment in real estate, repurchase agreements,
venture capital, futures contracts, options contracts, municipal bonds, trading on margin and short selling are prohibited.
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Pensions and Retirement 18I
Investments not specifically addressed in this section are considered prohibited investments.
(5) Review of policy. It is the intention of the Board of Trustees of the Boynton Beach General Employees’ Pension Fund to review this Statement of Investment Policy and its addenda
periodically to amend it to reflect any changes in philosophy or objectives. However, if at any time the Investment Manager believes that the specific objectives defined herein cannot
be met or that these guidelines unnecessarily constrict performance, the Board shall be so notified in writing.
(Code 1958, § 21-71; Ord. No. 80-16, § 1, 4-1-80; Ord. No. 94-56, § 1, 1-3-95; Ord. No. 00-74, § 3, 1-2-01; Ord. No. 04-069, § 2, 8-3-04)
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 10% of the value of the plan’s total assets (at cost). Investment in any single
stock issue shall not exceed 3% of the fund’s total value nor shall the equity portfolio’s total value (at cost) exceed 60% of the fund’s total assets, with a target of 55%.
(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 2.5% of the fund’s total value.
(c) Investments in mutual fund shares and bank sponsored commingled funds are permissible. However, 90% 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 of the top three 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.
Notwithstanding anything in this article to the contrary, the Board of Trustees may cause up to 20% 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 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)
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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)
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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)
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 shall be in
2002 S-17
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:
(1) A member’s benefit shall be distributed to him not later than April 1st of the calendar year fol
lowing the later of (i) the calendar year in which the member attains age seventy and one-half (70½) or (i
i) the calendar year in which the member retires. Alternately, distributions to a member must begin no lat
er than the applicable April 1st as determined under the preceding sentence and must be made over the life
of the member (or the lives of the member and the member’s designated beneficiary) or the life expectancy
of the member (or the life expectancies of the member and his designated beneficiary) in accordance with
the regulations.
(2) Distributions to a member and his beneficiaries shall only he made in accordance with
the incidental death benefit requirements of Code Section 401(1)(9)(G) and the regulations thereunder.
(Ord. No. 93-5, § 1, 5-4-93)
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 and retirement system.
(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 seven percent (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 seven percent (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 (½) of one percent (1%) of salary. (Ord. No. 02-004, § 1, 12-19-01; Ord.
No. 06-036, § 2, 6-20-06)
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 eight percent (8%) interest and the 1983 Group Annuity Mortality Table, blending eighty percent (80%) Males and twenty percent (20%) Females, with
ages set ahead five (5) 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 (10).
Compensation or salary. The total cash remuneration including lump sum payments for accumulated sick and vacation leave and “overtime” paid by the primary employer to a police officer
for
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22 Boynton Beach Code
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 officer by the second
party employer. This definition also excludes severance pay and other similar payments which are not for services rendered. 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 section 401(a)(17) of the
Internal Revenue Code 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 section 401(a)(17)(B) of the Internal Revenue Code. 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 section
401(a)(17) of the Internal Revenue Code.
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 (5) years after leaving the employ of the police department, pending the possibility
of his or her being 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 (5) 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 (5) 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 (1) 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
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Pensions and Retirement 22A
officer shall re-enter employment with the city within one (1) 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.
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 officer. 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; Ord. No. 06-036, § 2, 6-20-06)
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 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 (5) Trustees as follows:
(1) Two (2) legal residents of the city, who shall be appointed by the City Commission. Each City Trustee shall serve at the pleasure of the City Commission. Each City Trustee may
succeed himself or herself as a trustee.
(2) Two (2) 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 (2) 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 (4) Trustees. This fifth Trustee’s name shall be submitted to the City Commission, 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 (2) years, and may succeed himself or herself as a Trustee.
(b) Board vacancies; procedures to fill 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
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22B Boynton Beach Code
removed, or become ineligible to serve as Trustee, the Board shall, by motion, declare that office of Trustee vacated as of the date of adoption of such motion. If such a vacancy occurs
in the office of Trustee within ninety (90) days of the next succeeding election for Trustee, the vacancy shall be filled at the 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 motion, declare that office of Trustee vacated as of the date of adoption of the motion. The
successor for the unexpired portion of the term shall be chosen in the same manner as an original appointment.
(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 (3) Trustees shall constitute a quorum. Each Trustee shall be entitled to one (1) vote on each question before the Board and at least three (3) 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.
b. The Secretary of the Board shall keep:
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
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; Ord. No. 06-036, § 2, 6-20-06)
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 Pension 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.
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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 (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; shall not at cost exceed sixty-five percent (65%) of the fund’s assets; nor shall more than ten percent (10%) of the fund’s assets be invested in the bonds or
other certificates of indebtedness of any one (1) issuing company; nor shall the aggregate of such investment in any one (1) issuing company exceed three percent (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 sixty-five percent (65%) of the fund’s assets; nor shall more than five percent (5%) of the fund’s assets
be invested in common stock or capital stock of any one (1) issuing company; nor shall the aggregate of such investment in any one (1) issuing company exceed three percent (3%) of the
outstanding common or capital stock of that company. The Board of Trustees may invest in foreign securities up to the limits permitted by F.S. § 185.06(b).
d. Real estate, except that the aggregate investment of Fund assets in real estate may not exceed ten percent (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.
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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; Ord. No. 06-036, § 2, 6-20-06)
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 amounts.
(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 fifty (50) and completed fifteen (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 three and one-half percent (3.5%) 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.
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Pensions and Retirement 25
(b) Early retirement.
(1) Early retirement date. An employee who has attained age fifty (50) and completed at least ten (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 ten (10) years of service and attainment of age fifty (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 one and one-half percent (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 sixty-six and two-thirds percent (66 2/3%) 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 three (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 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 sixty-five (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 one hundred percent (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 forty-two
percent (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
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26 Boynton Beach Code
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 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 and one-half percent (3.5%) 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 percent (60%) of his average final
compensation during said period, but in all cases the benefit will be at least twenty-five percent (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.
(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, 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
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
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1st of each year, a statement showing the monthly amount of social security (PIA only) and workers’ compensation benefits received by him or her as of March 1st. Willful refusal by such
persons to comply 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 three and one-half percent (3.5%) of average final compensation
for each year of continuous service; provided, however, the benefit will be at least thirty percent (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 three and one-half percent (3.5%) of 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) If a 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.
(e) Separation from service.
(1) Effective for terminations on and after October 1, 2002, if a member leaves the service of the city before accumulating aggregate time of five 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 ten (10) years elects to leave his or her accrued contributions in the fund, such police officer upon attaining
age fifty (50) years or more (without reaching what would have been twenty (20) 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 five (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 eligible retiree, including DROP participants, or beneficiary receiving pension benefits is entitled to a monthly supplemental pension benefit. The
benefit pool will be funded by one hundred percent (100%) of the annual earnings and ten percent (10%) of the principal created by the contributions set forth in subparagraph b. below.
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a. Such benefit will be funded by a one percent (1%) contribution from the Members and a one percent (1%) contribution from the 185 monies. The Member and the 185 contributions shall
be effective October 1, 2001. Employees will contribute to this benefit through twenty (20) years of service.
b. The distribution provided for in this paragraph shall be divided among eligible retirees on a pro-rata basis in shares. The shares shall be determined based upon the sum of an
eligible retiree's years and partial years of credited service (maximum credit is twenty (20) years) plus the eligible retiree's years and partial retirement years as of September 30
of the current year (maximum credit of twenty (20) years). The share value shall be determined by totaling all of the shares of eligible retirees divided into the current years' total
distribution amount. An individual eligible retiree's distribution shall be equal to the number of the eligible retiree's shares multiplied by the share value.
c. This benefit shall be payable annually in a lump sum as of October 1, of each year, beginning December 1, 2006. The benefit shall be payable to the eligible retiree, including
DROP participants, or any beneficiary eligible to receive benefits as a result of the death of a retiree. The benefit shall cease upon the death of the eligible retiree or beneficiary,
whichever is the last surviving pension recipient.
(2) Beginning October 1, 2003, 100% of the money received pursuant to F.S. Chapter 185 (“185 money”) each calendar year in excess of the base amount of $465,087, plus one percent (1%)
of payroll annually to fund the benefit as provided in paragraph (1), plus any 185 money held in reserve, shall be distributed to all current eligible retirees, including DROP participants,
or beneficiaries receiving benefits. These supplemental benefit payments will be distributed according to the formula set for in subparagraph a. This distribution is in addition to the
benefit provided for in paragraph (1) which shall begin October 1, 2006.
a. The distribution provided for in this subparagraph shall be divided among eligible
retirees on a pro-rata basis in shares. The shares shall be determined based upon the sum of an eligible retiree's years and partial years of credited service (maximum credit is twenty
(20) years) plus the eligible retiree's years and partial retirement years as of September 30 of the current year (maximum credit of twenty (20) years). The share value shall be determined
by totaling all of the shares of eligible retirees divided into the current years' total distribution amount. An individual eligible retiree's distribution shall be equal to the number
of the eligible retiree's shares multiplied by the share value.
b. Allocations for surviving spouses and surviving dependent children shall be based upon the formula in this subparagraph, adjusted by the percentage of the optional form of benefit
selected.
c. This benefit shall be payable annually in a lump sum as of June 1 of each year, beginning June 1, 2004. The benefit shall be payable to the eligible retiree, including DROP participants,
or any beneficiary eligible to receive benefits as a result of the death of a retiree. The benefit shall cease upon the death of the eligible retiree or beneficiary, whichever is the
last surviving pension recipient.
3. Definitions.
a. For purposes of this section only, "credited service" means the number of years and partial years of service originally used by the pension plan to determine pension benefits.
For eligible retirees who retired on a duty disability retirement, twenty (20) years of service is credited for this part of the monthly supplemental benefit calculation at the time
that the disability benefit begins. Non-duty disability retirees shall be credited with actual years of credited service.
b. For purposes of this section only, "retirement years" means the number of years and partial years that a retiree has received a pension benefit to include the number of years and
partial years as a DROP participant. For eligible retirees who retired on a duty disability retirement, no retirement years will be accumulated for this part of the monthly supplemental
benefit calculation until after the member
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would have attained twenty (20) years of credited service, had he not retired on a duty disability retirement. Non-duty disability retirees shall be credited with actual years in receipt
of a pension benefit.
c. For purposes of this section only, "eligible retirees" means current retirees who were retired as of September 30 of each year, including DROP participants, or beneficiaries receiving
benefits.
(Ord. No. 02-004, § 1, 12-19-01; Ord. No. 02-063, §§ 2, 3, 1-7-03; Ord. No. 03-065, § 2, 12-16-03; Ord. No. 06-036, § 2, 6-20-06)
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?% or 50% of such monthly benefit payable to the survivor for the lifetime of the survivor.
(3) Survivor annuity. The member may elect to receive a benefit during the member’s lifetime and then following the death of the member, a reduced amount to a beneficiary. At the
time of retirement, the
member may choose a survivor benefit of 100%, 75%, 66?% or 50% of the member’s monthly benefit. This amount will be payable to the beneficiary of the lifetime of the beneficiary.
(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 (1) 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 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 Section 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) If a member dies prior to his or her normal retirement date or early retirement date, no
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26D Boynton Beach Code
benefit will be payable under the option to any person, but the benefits, if any, will be determined under Section 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, the Board of Trustees may, in its discretion, direct that 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; Ord. No. 03-064, § 2, 12-16-03; Ord. No. 06-036, § 2, 6-20-06)
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 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; Ord. No. 06-036, § 2, 6-20-06)
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 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
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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 parts 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 (6) months of the request for credit and in one (1) 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 (5) 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. This paragraph does not apply to military service.
(Ord. No. 02-004, § 1, 12-19-01; Ord. No. 06-036, § 2, 6-20-06)
Secs. 18-173. Rollovers.
(a) Direct transfers 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.
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Pensions and Retirement 26E
(2) Definitions.
a. Eligible rollover 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 (1) 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 of ten (10) years or more; any distribution to the extent such
distribution is required under section 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 section 408(a) of the Internal Revenue Code, an individual retirement annuity described in section 408(b)
of the Internal Revenue Code, an annuity plan described in section 403(a) of the Internal Revenue Code, or a qualified trust described in section 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:
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 section 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 to a deferred compensation plan pursuant to section 457 of the Internal Revenue Code. 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
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26F Boynton Beach Code
any other accumulated leave payable upon retirement, including entry into the DROP, shall 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; or
e. Maintain the entire leave balance within the Plan. Earnings shall be paid as follows:
1. Gains or losses at the same interest rate earned by the Pension Plan; or
2. A guaranteed rate of seven percent (7%); or
3. A percentage of the leave balance 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 seven percent (7%). The actual percentage shall be selected by the member on a form provided by the Board of Trustees. The total of the two (2)
percentages must equal 100%.
These 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.
(2) 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 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.
(3) 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.
(4) 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; Ord. No. 06-036, § 2, 6-20-06)
§ 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.
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(b) False or misleading statements made to obtain retirement benefits prohibited.
(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 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 section 401(a)(9) of the Internal Revenue Code, 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 ($120,000) adjusted for cost of living in accordance with section 415(d) of the Internal
Revenue Code.
(2) If a member has less than ten (10) years of service with the city, the applicable limitation in paragraph (a) of this section shall be reduced by
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26H Boynton Beach Code
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.
(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 percent (5%) or the rate being used for actuarial equivalence, to reflect such ancillary benefits.
(4) If distribution of retirement benefits begins before age sixty-two (62), the dollar limitation as described in paragraph (a) shall be reduced using an interest rate assumption
equal to the greater of five percent (5%) 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 fifty-five (55) and not below the actuarial equivalent of $75,000 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 $50,000 adjusted for cost of living in accordance with section 415(d) of the
Internal Revenue Code, 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 (a) shall
be increased actuarially by using an interest assumption equal to the lesser of five percent (5%) or the rate used for actuarial equivalence.
(Ord. No. 02-004, § 1, 12-19-01; Ord. No. 06-036, § 2, 6-20-06)
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.
(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 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
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Pensions and Retirement 26I
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.
(g) Effective January 1, 2003, DROP participants have the option to select optional methods to credit investment earnings to their account less any outstanding loan balances. The method
may be changed each year effective January 1, 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 seven percent (7.0%); or
(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 seven percent (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 (2) 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 (5) years or twenty-five (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 less any outstanding loan balances 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:
(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 section 401(A)(9) of the Internal Revenue Code, 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
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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.
(l) 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.
(n) Loans from the DROP.
(1) Availability of loans:
a. Loans are available to members only after termination of employment, provided the member had participated in the DROP for a period of twelve (12) months.
b. Loans may only be made from a member's own account.
c. There may be no more than one (1) loan at a time.
(2) Amount of loan:
a. Loans may be made up to a maximum of fifty percent (50%) of account balance.
b. The maximum dollar amount of a loan is $50,000, reduced by the highest outstanding loan balance during the last twelve (12) months.
c. The minimum loan is $5,000.
(3) Limitations on loans shall be made from the amounts paid into the DROP and the earnings thereon.
(4) Term of loan.
a. The loan must be for at least one (1) year.
b. The loan shall be no longer than five (5) years.
(5) Loan interest rate.
a. The interest rate shall be fixed at time the loan is originated for the entire term of loan.
b. The interest rate shall be equal to the prime rate published by an established local bank on the last day of each calendar quarter preceding the date of loan application.
(6) Defaults on loans.
a. Loans shall be in default if two (2) consecutive months' repayments are missed or if a total of four (4) months' repayments are missed.
b. Upon default, the entire balance becomes due and payable immediately.
c. If a loan in default is not repaid in full immediately, the loan may be canceled and the outstanding balance treated as a distribution, which may be taxable.
d. Upon default of a loan, a member will not be eligible for additional loans.
(7) Miscellaneous provisions:
a. All loans must be evidenced by a written loan agreement signed by the member and the Board of Trustees. The agreement shall contain a promissory note.
b. A member's spouse must consent in writing to the loan. The consent shall acknowledge the effect of the loan on the member's account balance.
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c. Loans shall be considered a general asset of the Fund.
d. Loans shall be subject to administrative fees to be set by the Board of Trustees.
e. Outstanding loan balances shall not be credited with earnings or losses. As the outstanding balance is repaid with interest, earnings and losses shall be applied to the payments
and interest as provided for in Section 18-175 I.
(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; Ord. No. 06-036, § 2, 6-20-06)
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 ten (10) years of credited service, in the fund for at least ten (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
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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.
(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 paragraph (b), the amounts apportioned under paragraph (c). If, after a period
of twenty-four (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; Ord. No. 06-036, § 2, 6-20-06)
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 30. 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 percent (8%). 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 30. 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 percent (8%) 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.
(4) The supplemental pension distribution shall be funded only if the present value of the pool of funds does not exceed the net actuarial experience accumulated from all sources of
gains and losses.
(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.
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(d) The supplemental pension distribution shall be made as of July 1, 2001 and each July 1 thereafter. Each eligible person shall be paid his or her allocated portion from the preceding
September 30. 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 30 prior
to the retirants death.
(Ord. No. 02-004, § 1, 12-19-01; Ord. No. 03-064, § 3, 12-16-03; Ord. No. 06-036, § 2, 6-20-06)
Sec. 18-178. Reserved.
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. Sections 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 multiplied by 3% 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 (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
(2) One hundred (100) percent of
the average annual compensation for the member’s three (3) highest paid consecutive years; however, benef
its 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.
If a 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.
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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
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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 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)
Sec. 18-180.2. Cost of living increase.
(a) Effective December 1, 2011, an automatic two percent (2%) annual cost of living adjustment (COLA) is created for all members who retire or enter into the DROP on or after December
1, 2006. Payment of annual COLA benefits shall not begin until five (5) years after retirement or entry into the DROP. As of each October first, retirees in pay status and beneficiaries
receiving monthly survivorship benefits on behalf of deceased members, shall have their benefits adjusted annually, following the five (5)-year delay. Retirees eligible to receive annual
COLA benefits shall include all retirees electing early retirement and all disability retirees who enter pay status on or after December 1, 2006.
(b) Every third year following adoption of this section, an actuarial evaluation of the cost of this benefit (two percent (2%) COLA adjustment for retirees) will be provided to the
city by the Pension Plan's actuary, or other actuary designated by the city at it's option. In the event the projected cost of the benefit increases over the projected cost for fiscal
year 2006-2007, the Pension Plan shall be further amended to provide that the increased costs will be offset by (1) an increase in the five percent (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.
(c) In years where the actuarial evaluation described above determines that the cost of the COLA benefit is less than the projected 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.
(Ord. No. 06-092, § 2, 12-5-06)
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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 F.S. § 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 United States; and
(2) 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
(3) 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)
percent of the outstanding bonds or other certificates of indebtedness of that company. Fund assets m
ay be invested in investment grade bonds with not greater than ten percent (10%) of the fixed income p
ortfolio to hold an investment rating of Baa.
(b) The aggregate investment of fund assets in the commo
n stock or capital stock issued by a corporation organized under the laws of the United States, any st
ate, or organized territory of the United States or District of Columbia shall not at cost exceed seve
nty (70%) percent of the fund’s assets; nor shall more than five (5) percent of the fund’s assets be i
nvested in common stock or capital stock of any one issuing company; nor shall the aggregate of such i
nvestment in any one issuing company exceed three (3) percent of the outstanding bonds or other certif
icates of indebtedness of that company.
(c) The Board of Trustees may retain in cash and keep unproduc
tive of income such amount of the fund as it may deem advisable, having regard for the cash requiremen
ts of the fund.
(d) The Board of Trustees may cause any investment in securities held by it to be regi
stered 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 sha
ll 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; Ord. No.
06-037, § 2, 5-2-06)
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
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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. Consistent with
F.S. § 175.071, the Board of Trustees may also invest up to ten percent (10%) of plan assets, at cost, in foreign securities. Subsequent amendments to F.S. Ch. 175, which expand the
scope of permissible investments shall be incorporated herein upon adoption by the Florida Legislature.
(Ord. No. 94-52, § 3, 12-20-94; Ord. No. 06-037, § 3, 5-2-06)
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 (PIA) 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 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
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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.
(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 (PIA 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 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
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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)
Sec. 18-184. Ex officio membership of the fire chief on the board of trustees.
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
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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 15, 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, adopted
Aug. 7, 1979; and Ord. No. 89-26, § 1, adopted Sept. 19, 1989.
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.
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(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.
Effective November 27, 2006, the City of Boynton Beach shall deduct from all firefighters entitled to the benefits of the article, twelve percent (12%) 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 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; Ord. No. 06-092, § 3, 12-5-06)
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)
Sec. 18-188. Required distributions.
In no event may a member’s retirement benefit be delayed the later of the April first (1st) following the calendar year in which he attains age seventy and one-half (70½) or April first
(1st) 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 por
tion 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 participan
t’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
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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 (70½).
(Ord. No. 90-24, § 1, 8-7-90; Ord. No. 93-16, § 3, 6-15-93)
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.
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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.
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
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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) 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 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
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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
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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. VIII, Investment policies. 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, 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.
(1) The aim o
f the investment policies shall be to preserve the integrity and security of fund principal, to maintain a
balanced investment portfolio, and to secure the maximum return on investments that is consonant with saf
ety of principal.
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(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
30%; of the total amount thereof invested in preferred stocks and in debt securities other than tax sale certificates may aggregate 100%; the total amount thereof invested in preferred
stocks shall not aggregate more than 20%; and the total amount thereof invested in common stocks and mutual fund shares shall not aggregate more than 65%. 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.
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b. Not more than two and 2.5% of the total fund principal or $10,000, whichever is the larger amount, sha
ll be invested in any single security other than obligations of the United States or an agency thereof.
c
. All bonds and preferred stocks shall be rated “A” or higher by the investment services published by eith
er Moody’s Investors Service or Standard & Poor’s Corporation.
d. Bonds and preferred stocks that are con
vertible into common stock or that include warrants for the purchase of common stock shall not be purchase
d if any premium price is being paid for the conversion privilege or for the warrants.
e. All common stoc
ks except those of banks and insurance companies and except mutual fund shares must have been listed on th
e New York Stock Exchange or the American Stock Exchange for a period of at least one year immediately pre
ceding the acquisition thereof.
Pensions and Retirement 35
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 90% 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.
Sec. 18-222. 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 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 30 years. The maximum period of participation in the DROP is
five 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 highest of the ten years immediately preceding participation in the DROP as the compensation basis. Accumulated, 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:
(1) Gain or lose interest at the same rate as the Plan; or,
(2) At an annual fixed rate of 7%; or
(3) In a self-directed account utilizing mutual funds selected by the board.
(g) An employee shall terminate service with the city at the conclusion of five 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 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.
(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.
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(k) No payment may be made from the DROP until the employee actually separates from service with the City.
(l) 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 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
Incentive Program and eligibility.
The City Commission may from time to time establish early retirement incentive programs. Early retirement incentive programs shall be created by ordinance. No ordinance establishing
an Early Retirement Incentive Program shall be enacted without:
(a) A written recommendation from the City Manager and the Finance Director that the proposed Early Retirement Incentive Program is beneficial to the administration of the city workforce
and is fiscally beneficial;
(b) An actuarial study has been conducted and presented to the City Commission; and
(c) Ordinance No. 03-061 has been furnished to the State of Florida for review, as required by law.
(Ord. No. 00-66, § 2, 11-21-00; Ord. No. 03-058, § 2, 11-5-03; Ord. No. 03-061, § 3, 12-2-03)
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Sec. 18-224. Participation in program.
No employee shall be compelled to participate in an Early Retirement Incentive Program. Participation is optional and shall be evidenced by the employees’ signature on a participation
agreement.
(Ord. No. 00-66, § 3, 11-21-00; Ord. No. 03-058, § 3, 5, 11-5-03; Ord. No. 03-061, § 3, 12-2-03)
Sec. 18-225. Benefit provided.
The benefits provided by any early retirement incentive program shall not be forfeited when an employee who was eligible for participation in an Early Retirement Incentive Program offered
by the city dies following execution of an agreement for participation but prior to his or her actual retirement date.
(Ord. No. 00-66, § 4, 11-21-00 11-21-00; Ord. No. 03-058, § 4, 11-5-03; Ord. No. 03-061, § 3, 12-2-03)
Sec. 18-226. Statement of actuarial impact.
The surviving spouse, or any other legally designated representative, of an employee who is eligible for participation in an Early Retirement Incentive Program may exercise the employee's
option to participate when the employee dies or is determined to be mentally incompetent subsequent to the adoption of the ordinance enacting the Early Retirement Incentive Program but
prior to the deadline for electing to participate in the program, provided the spouse or representative executes the participation agreement on behalf of the employee. In such cases,
the employee's department head, subject to approval by the City Manager, shall establish the actual date of retirement.
(Ord. No. 00-66, § 5, 11-21-00; Ord. No. 03-058, § 6, 11-5-03; Ord. No. 03-061, § 3, 12-2-03)
Pensions and Retirement 37
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)
Sec. 18-228. Filing with Division of Management.
The City Administration and the administrators of the retirement plans, in accordance with the requirements of F.S. 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; Ord. No. 03-058, § 7, 11-5-03)
Sec. 18-229. Execution of agreements.
The City Commission authorizes the 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; Ord. No. 03-058, § 8, 11-5-03)
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
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Exhibits “C,” “D,” “E,” 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. In the event of a dispute over the meaning, interpretation, or application of Exhibits “B,”
“C,” “D,” “E,” and “F,” the decision of the City Manager as to the meaning, interpretation, or application shall be controlling.
(Ord. No. 00-66, § 9, 11-21-00; Ord. No. 03-058, § 9, 11-5-03)
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