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ORDINANCE 14 -021
AN ORDINANCE OF THE CITY OF BOYNTON
BEACH, FLORIDA, AMENDING ARTICLE III, OF
CHAPTER 18 OF THE BOYNTON BEACH CODE OF
ORDINANCES, ENTITLED "EMPLOYEES' PENSION
PLAN;" AMENDING SECTION 18 -118 RETIREMENT
,
ANNUITY OPTION ALLOWING RETIREES TO
CHANGE JOINT SURVIVORS; SECTION 18- 127
DEFERRED RETIREMENT OPTION PLAN
ALLOWING EMPLOYEES TO DESIGNATE
BENEFICIARIES FOR THE DROP; PROVIDING
FOR CODIFICATION; PROVIDING FOR CONFLICT;
PROVIDING FOR SEVERABILITY; AND, PROVIDING
FOR AN EFFECTIVE DATE HEREOF.
WHEREAS, the Board of Trustees ("Trustees ") of the Employees' Pension Plan of the
City of Boynton Beach, Florida ( "Pension Plan ") recommends amendment of the
Ordinance to allow retirees to change their joint annuitant up to twice after retirement, with the
retiree bearing the full actuarial cost of such change;
WHEREAS, the Trustees of the Pension Plan also recommends amendment of the
Ordinance to provide that an employee can designate a beneficiary for the DROP balance;
WHEREAS, the City Commission of the City of Boynton Beach, Florida, desires to so
amend the Employees' Pension Plan of the City of Boynton Beach, Florida;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
f CITY OF BOYNTON BEACH, FLORIDA:
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Section 1. The foregoing "WHEREAS" clauses are hereby certified as being true and
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correct and are incorporated herein by this reference.
Section 2. Section 18 -118 of Article II of Chapter 18 of the Boynton Beach Code of
Ordinances is hereby amended as follows:
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1 Sec. 18 -118. Retirement annuity option.
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3 At any time prior to or upon the date of normal retirement, a member may elect to receive
4 annuity benefits payable under the plan with the approval of the pension board in the form of a
5 joint and survivor annuity instead of the normal annuity form, which shall be the actuarial
6 equivalent of the annuity which he would normally receive. A member may rescind such
7 election at any time prior to his or her normal retirement date. Under the joint and survivor
8 annuity, two - thirds (2/3) of the retirement annuity income continues to the surviving
9 contingent annuitant, until his or her death. The election of a joint and survivor annuity shall
10 be deemed to be automatically cancelled in the event of the death of the joint annuitant prior
11 to the member's actual retirement.
12 If a retired member has elected an option with a joint annuitant or beneficiary and his or her
13 retirement income benefits have commenced, he or she may thereafter change the
14 designated joint annuitant or beneficiary with the approval of the Board of Trustees
15 and the joint annuitant or beneficiary being removed. The retiree is required to provide
16 proof of the good health of the joint annuitant or beneficiary being removed, and the
17 joint annuitant or beneficiary being removed must be living. Any retired member who
18 desires to change his or her joint annuitant or beneficiary shall file with the Board of
19 Trustees a notarized notice of such change. Upon Board approval of a completed
20 change of joint annuitant form or such other notice, the Board of Trustees shall adjust
21 the retiree's monthly benefit by the application of actuarial tables and calculations
22 developed to ensure that the benefitpaid is the actuarial equivalent of the present value of
23 the retiree's current benefit and there is no impact to the Plan. The actuarial calculation
24 will include a five (5) year age adjustment to keep the cost actuarially neutral. The Board
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1 will pay for the cost of the first recalculation of the benefit by the actuary; the retiree will
2 be responsible for the cost of any subsequent recalculations. In the event that no joint
3 annui in .r •e_i' • • • cf iv• h• r• 'r• • h•r• i no • •fi r. el. 1•s
4 the retiree has not received benefit which total or exceed the amount of contributions
5 made by the retiree. No retiree's current
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7 benefits shall be increased as a result of the change of joint annuitant or beneficiary.
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9 Section 3. Section 18 -127 of Article II of Chapter 18 of the Boynton Beach Code of
10 Ordinances is hereby amended as follows:
11 Sec. 18 -127. Deferred retirement option plan.
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14 If an employee shall die during participation in the DROP, a survivor benefit for the monthly
15 pension amount shall be payable in accordance with the form of benefit chosen at the time of
16 entry into the DROP. An employee entering into the DROP or a member participating in the
17 DROP post employment may designate a beneficiary(ies) to receive payment of the DROP
18 balance in a lump sum on his or her death in accordance with Section 18 -11 and
19 18 -120. In the absence of the designation of a beneficiary, the remainin 3 , _ , • h .11
20 be_paid in full to the first class of the following relative which has a member on : . r
21 rata basis, if there is more than one member): the spouse married to the member on date
22 o f l e . t h • . • . • n . • n hil.r• i f • l e J. r• heliv'n. ,:r• s.f h•m•m.•r:.r •
23 estate o f the member This payment operates as a complete discharge o all ob of the
24 Fund under the Plan and shall not be subject to review but shall be final, bindin
25 conclusive on all persons ever interested hereunder
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2 l Section 4. It is the intention of the City Commission of the City of Boynton Beach that
3 the provisions of this Ordinance shall become and be made a part of the Code of Ordinances
4 of the City of Boynton Beach, Florida. The Sections of this ordinance may be renumbered, re-
5 lettered and the word "Ordinance" may be changed to "Section," "Article" or such other word
6 or phrase in order to accomplish such intention.
7 Section 5. All Ordinances or parts of Ordinances, Resolutions or parts of
8 Resolutions in conflict herewith be and the same are hereby repealed to the extent of such
9 conflict.
10 Section 6. If any clause, section, or other part or application of this Ordinance shall be
11 held by any court of competent jurisdiction to be unconstitutional or invalid, such
12 unconstitutional or invalid part or application shall be considered as eliminated and so not
13 effecting the validity of the remaining portions or applications remaining in full force and
14 effect.
15 Section 7. This Ordinance shall become effective upon passage, unless otherwise
16 provided for in this amendment.
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2 FIRST READING THIS 3 DAY OF SEPTEMBER, 2014.
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4 SECOND, FINAL READING and PASSAGE THIS 1(2 DAY OF ✓ T, 2014.
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6 PASSED AND ADOPTED THIS 16 DAY OF ar., 2014.
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9 CITY OF BOYNTON BEACH, FLORIDA
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11 ror
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12 a or
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16 r ice Mayor - Joe Casello
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20 ommis e • -- Dav • Merker
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24 o missioner - Mack McCray
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28 Commissioner - Michael M. Fitzpa is
29 ATTEST:
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34 Jan: M. Prainito, MMC
35 • Clerk
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37 G Y+O
38 (Co p
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