O00-13ORDINANCE NO. O 00-/~
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA, AMENDING
CHAPTER 18, ARTICLE IV, PENSIONS FOR
FIREFIGHTERS; CREATING A NEW SECTION 18-222
ENTITLED "DEFERRED RETIREMENT OPTION PLAN";
PROVIDING FOR CONFLICTS, SEVERABILI-FY,
CODIFICATION AND AN EFFECTIVE DATE,
WHEREAS, the City Commission of the City of Boynton, desires to amend
Chapter 18 of the code of Ordinances of the City to provide for a Deferred
Retirement Option Plan for Firefighters;
NOW, THEREFORE, BE I'T ORDAINED BY THE C'rTY COMM'rSSI'ON OF
THE CITY OF BOYNTON BEACH, FLOR/DA, THAT:
Section 1. That Chapter 18, Article IV, Pensions for Firefighters, Section 18-
· ~9_2 entitled "Deferred Retirement Option Plan" is hereby created to read as follows:
18-122. Deferred Retirement Option Plan
(a)
A deferred retirement option plan ("DROP'~) is hereby
created.
(b)
Eligibility to participate in the DROP is based upon
eligibility for normal service retirement in the Plan.
(c)
Participation in the DROP must be exercised within
the first thirty (30) years of employment; provided,
however, that participation in the DROP, when
combined with participation in the retirement plan as
an active member may not exceed thirty (30) years.
The maximum period of participation in the DROP is
five (5) years. An employee's election to participate
in the DROP plan shall be irrevocable and shall be
made by executing a resignation notice on a form
prescribed by the City.
(d)
(e)
(t')
(g)
(h)
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 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.
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.
An empl°Yee'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 seven percent
(7%); or,
(3)
In a self-directed account utilizing
mutual funds selected by the Board.
An employee shall terminate service with the City at
the conclusion of five (5) years in the DROP.
All interest shall be credited to the employee's DROP
account on the last day of the month in which the
(i)
(J)
(k)
(m)
member separates from service. Tn 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.
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.
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 Tnternal Revenue Service.
No payment may be made from the DROP until the
employee actually separates from service with the
c ty.
Tf 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.
Upon commencement of participation in the DROP,
the member shall no longer be eligible for disability
retirement from the pension plan. Tf 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.
Section 2. Each and every other Section of Chapter 18, not herein
specifically amended, shall remain in full force and effect as previously enacted.
Section 3. All ordinances or parts of ordinances in conflict herewith be and
the same are hereby repealed.
Section 4. Should any section or provision of this ordinance or portion
hereof, any paragraph, sentence or word be declared by a court of competent
iuriSdiction to be invalid, such decision shall not affect the remainder of this
ordinance.
Section 5.
Section 6.
Authority is hereby granted to codify said ordinance.
This ordinance shall become effective immediately upon
passage.
FIRST READING this
SECONDf FINAL
/~,~,~' ,2000.
ATTEST:
day of April, 2000.
READING AND PASSAGE this ~ day of
C['I'Y OF/~OYNTON i~F_,~.gZ~l, FLORIDA
Vice Mayor
Mayor Pro Tern