18-006 1 ORDINANCE 18-006
2
3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH FLORIDA
4 AMENDING ARTICLE III OF CHAPTER 18 OF THE BOYNTON
5 BEACH CODE OF ORDINANCES ENTITLED MUNICIPAL POLICE
6 OFFICERS' RETIREMENT TRUST FUND AMENDING SECTION
7 18-164 TO PROVIDE FOR MUTUAL CONSENT REGARDING USE
8 OF THE 185 MONEY; AMENDING SECTION 18-169 TO ADD A
9 NORMAL RETIREMENT AGE DEFINITION FOR MEMBERS WHO
10 RETIRE WITH A YEARS OF SERVICE ONLY RETIREMENT, TO
11 PROVIDE FOR PAYMENT OF DEATH BENEFITS TO A
12 DESIGNATED BENEFICIARY IN THE EVENT THAT THERE IS NO
13 SPOUSE, AND TO ADD TEN YEAR VESTING FOR POLICE
14 OFFICERS HIRED ON OR AFTER OCTOBER 1, 2016; ADDING A
15 NEW SECTION 18-178 TO ADD A REHIRE AFTER RETIREMENT
16 PROVISION; PROVIDING FOR CODIFICATION CONFLICT,
17 SEVERABILITY,AND AN EFFECTIVE DATE.
18
19 WHEREAS, the Internal Revenue Code governs rehire of City of Boynton Beach
20 Retirees and contains provisions which allow for in-service distributions under certain
21 circumstances;
22 WHEREAS,the Board of Trustees ("Trustees") of the Boynton Beach Police Officers
23 Pension Fund ("Fund") recommends amendment of Article III, Section 18-169 of the Plan to
24 comply with the Code;
25 WHEREAS, the City and the Palm Beach County Police Benevolent Association
26 ("Union") have agreed in collective bargaining to mutually consent regarding the use of the
27 Chapter 185 monies under the Florida Statutes §185.35 which requires an amendment to the
28 Fund Plan document in the City Code;
29 WHEREAS,the City and the Union have agreed in collective bargaining to provide for
30 ten year vesting for members hired on or after October 1, 2016;
31 WHEREAS, the Board recommends adding a provision to allow the payment of
32 benefits to a designated beneficiary of a deceased member in the event that there is no spouse
33 to save the heirs the cost of opening an estate; and
34 WHEREAS the City Commission of the City of Boynton Beach Florida desires to so
35 amend the Boynton Beach Police Officers Pension Fund.
36 NOW THEREFORE BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
37 OF BOYNTON BEACH FLORIDA
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38
39 Section 1. The foregoing WHEREAS clauses are hereby certified as being true and
40 correct and are incorporated herein by this reference.
41
42 Section 2. Section 18-164 of Article III of Chapter 18 of the Boynton Beach Code of
43 Ordinances is hereby amended as follows:
44
45 Sec. 18-164. Creation and maintenance of fund and retirement system.
46
47 * * *
48
49 (b) The fund shall be maintained in the following manner:
50
51 (1) By payment to the fund of the net proceeds of the .85% excise tax which is
52 imposed by the City of Boynton Beach upon certain casualty insurance companies on
53 their gross receipts of premiums from holders of policies,which policies cover property
54 within the corporate limits of the City of Boynton Beach as authorized in F.S. Chapter
55 185, amended. These amounts are to be deposited with the Board of Trustees within
56 five days of receipt by the municipality. F.S. Ch. 185. In November of 2017 and
57 November of 2018 onl_ '.30 000.00 of the insurance remium excise tax rovided
58 for in this subsection will be used by the City to offset the unfunded actuarial
59 liability of the Fund.The remainder of the Funds will be used as set forth in Section
60 18-169(1) of the Plan, which provides for a supplemental benefit as defined in
61 Florida Statutes §185.02(22).
62
63 (2) By the payment to the fund of 7% of the salary of each full time police officer
64 duly appointed and enrolled as a member of the City of Boynton Beach Police
65 Department; which 7% shall be picked up,rather than deducted,by the City of Boynton
66 Beach from the compensation due to the Police Officer and paid over to the Board of
67 Trustees of the Boynton Beach Police Officers' Pension Fund on a bi-weekly basis. All
68 pickup contributions shall be treated as employer contributions for the purposes of
69 determining tax treatment under the Internal Revenue Code of 1986, as amended. All
70 such pick up amounts shall be considered as employee contributions for purposes of this
71 plan.The percentage deducted from the police officers' salaries are to be deposited with
72 the Board of Trustees immediately. F.S. Ch.185, Boynton Beach Code of Ordinances
73 Sec. 18-170.
74
75 (3) By all fines and forfeitures imposed and collected from any police officer
76 because of the violation of any rule and regulation adopted by the Board of Trustees.
77 F.S. Ch. 185.
78
79 (4) By mandatory payment at least quarterly by the City of Boynton Beach a sum
80 equal to the normal cost and the amount required to fund any actuarial deficiency shown
81 by an actuarial valuation as provided in F.S. Chapter 112, Part VII. F.S. Ch. 185. On
82 an annual basis,the Board of Trustees will evaluate the actuarial assumptions used.
83
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84 (5) By all gifts, bequests, and devises when donated to the fund. F.S. Ch. 185.
85
86 (6) By all accretions to the fund by way of interest or dividends on bank deposits,
87 or otherwise. F.S. Ch. 185.
88
89 (7) By all other sources or income now or hereafter authorized by law for the
90 augmentation of the Boynton Beach Police Officers' Pension Fund. F.S. Ch. 185.
91
92
93 Section 3. Section 18-169(a) of Article III of Chapter 18 of the Boynton Beach Code of
94 Ordinances is hereby amended as follows:
95
96 Sec. 18-169. Requirements for retirement- benefit amounts.
97
98 (a) Normal retirement.
99
100 (1) Normal retirement date. The normal retirement date of each police officer will be the
101 first day of the month coinciding with, or next following, the date on which he or she
102 has attained and completed 20 years of service,or the first day of the month coinciding
103 with, or next following, the date on which the police officer has attained age 55 and
104 completed ten years of service or age 50 and completed 15 years of service. In the
105 case of a retirement with twenty (20) years of service, effective January 1, 2017,
106 Normal Retirement Age is the age a police officer has attained when retired at
107 twenty (20) years of service.
108
109 Section 4. Section 18-169(d) of Article III of Chapter 18 of the Boynton Beach Code of
110 Ordinances is hereby amended as follows:
111
112
113 Sec. 18-169 Requirements for retirement- benefit amounts
114
115 *******
116 (d) Death benefit.
117
118 (1) If any member shall die prior to retirement or other termination of employment with the
119 city and that death is found by the Board of Trustees to have occurred in the line of duty
120 regardless of the years of service, a death benefit shall be payable to the deceased
121 member's spouse. The benefit shall equal 3.5% of average final compensation for each
122 year of continuous service; provided, however, the benefit will be at least 30% of
123 average final compensation. It shall be payable in equal monthly installments
124 commencing the first day of the month following the date of death and ceasing upon the
125 death of the spouse. If there is no spouse, the deceased member's accrued benefit
126 shall be a able to the desi'nated beneficia on file with the Board of Trustees
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127 'a able as the Contin'ent Annuitant 100% survi or benefit. If there is no s ouse
128 or designated beneficiaries the benefit,if any,will be paid to the deceased participant's
129 estate. Effective September 3, 2015, for all police officers hired on or after October 1,
130 2015, the 3.5%multiplier provided for in this paragraph shall be 3.0%.
131
132 (2) If any member with at least ten years of continuous service shall die prior to retirement
133 or other termination of employment with the city, a death benefit shall be payable to the
134 deceased member's spouse. The benefit shall equal 3.5%of average final compensation
135 for each year of continuous service. It shall be payable in equal monthly installments
136 commencing the first day of the month following the date of death and ceasing upon the
137 death or remarriage of the spouse. If there is no spouse, the deceased member's
138 accrued benefit shall be payable to the designated beneficiary on file with the
139 Board of Trustees, payable as the Contingent Annuitant 100% survivor benefit.
140 If there is no spouse or designated beneficiaries, the benefit, if any, will be paid to
141 the deceased participant's estate. Effective September 3, 2015, for all police officers
142 hired on or after October 1, 2015, the 3.5% multiplier provided for in this paragraph
143 shall be 3.0%.
144
145 (3) If a member dies before being eligible to retire, the heirs, legatees, beneficiaries or
146 personal representatives of such deceased member shall be entitled to a refund of 100%
147 of the contributions made by the member to the fund, without interest.
148
149 Section 5. Section 18-169(e) of Article III of Chapter 18 of the Boynton Beach Code of
150 Ordinances is hereby amended as follows:
151
152 (e) Separation from service.
153
154 (1) The vestin._•eriod for member hired on or after October 1 2016 is ten 10
155 years. The vesting period for members who were hired before October 1, 2016
156 and terminated after October 1, 2002 is five (5) years of service. Effective for
157 terminations on and after October 1, 2002, if If a member leaves the service of the
158 city before vesting . . . • _ •-• - - •. - •• - - -"'-' ••
159 before being eligible to retire, such member shall be entitled to a refund of all of his
160 or her contributions made to the fund, without interest.
161
162 (2) Benefit Commencement Date for Ten Year Vesting If any member who had been in
163 the service of the city for at least ten years elects to leave his or her accrued
164 contributions in the fund, such police officer upon attaining age 50 years or more
165 (without reaching what would have been 20 years of service had he or she not
166 terminated his or her employment) may receive an early retirement benefit at the
167 actuarial equivalent of the amount of such retirement income otherwise payable to
168 him or her at early retirement or upon attaining what would have been normal
169 retirement had he or she not terminated his employment, such police officer may
170 receive his or her accrued normal retirement benefit.
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171
172 (3) Benefit Commencement Date for Five Year Vesting:Effective for terminations after
173 October 1, 2002, if If any member who had been in the service of the city for at least
174 five years elects to leave his or her accrued contributions in the fund,the police officer
175 upon attaining age 55 with ten or more years of service (had he or she not terminated
176 employment)or reaching what would have been 20 years of service (had he or she not
177 terminated his or her employment), may receive the accrued normal retirement
178 benefit. The member may receive the benefits payable in the normal form or any
179 option available under Section 18-170.
180
181
182 Section 6. A new Section 18-178 is added to Article III of Chapter 18 of the City of Boynton
183 Beach Code as follows:
184
185 Sec. 18-178. - Reemployment after retirement.
186
187 a An Retiree who is retired under this fund exce t for disabili retirement ma
188. be reem lo ed b an ublic or rivate em to er exce t the Ci and ma receive
189 coin ensation from that em lo ment without limi in• or restrictin' in an wa the
190 retirement benefits a able under this fund.Reem lo ment of a Retiree b the Ci on or
191 after January 1,2017 shall be subject to the limitations set forth in this section.
192
193 b Reem to ment in a o iti i n other than as a Police Officer or in a osition
194 su ervisin _I olice officers. Notwithstandin' an other ro ision of this Plan a Retiree
195 who is retired from the Fund on a Normal Retirement at Normal Retirement Age and
196 who is subsequently reemployed by the city in a position other than as a Police Officer or
197 in a osition su ervisin olice officers shall a on bein' reem to ed continue recei t of
198 benefits from this Fund. The benefit paid from this Fund shall not be changed in any way
199 by such reemployment. These payments shall be considered in-service distributions.
200
201 (c) Reemployment as a Police Officer. In the event a Retiree who is retired from the
202 Fund is subse s uentl reem lo ed s the ci as a Police Officer or into a osition that
203 supervises Police Officers, the benefit payable to the Retiree from this Fund shall be
204 sus ended for the eriod of such reem lo ment until the Retiree terminates em lo ment
205 with the city.
206
207 1 If b virtue of re-em lo ment as a Police Officer the retiree is eli'ible o
208 artici ate in this Ian the retiree shall be deemed to be one hundred 100
209 percent vested upon re-employment.
210
211 2 The .dditional credited se ice accrued durin' the subse s uent em to ment
212 period shall be used in computing a second benefit amount attributable to
213 the subsequent employment period,which benefit amount shall be added to
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214 the benefit determined upon the initial retirement to determine the total
215 benefit payable upon final retirement.
216
217 (3) Calculations of benefits for each retirement shall be based upon the benefit
218 accrual rate, average annual earnings, credited service, cost-of-living
219 adjustment as of that date and the retirement benefit amount for any
220 subse•uent em lo; ment eriod shall be based u,on the benefit accrual rate
221 avera•e annual earnin's based onl on he subse a went em to ment
222 period), credited service, cost-of-living adjustment, if applicable, as of the
223 date of subsequent retirement. •
224
225 4 The o tional form of benefit and an_'oint ensioner selected u•on initial
226 retirement shall not be subject to change upon subsequent retirement
227 except as otherwise provided herein, but the member may select a different
228 optional form and joint pensioner applicable to the subsequent retirement
229 benefit.
230
231 d Re-em lo ment of terminated vested •ersons. Re-em lo ed terminated vested
232 ersons includin• those elected or a_ ointed to the Ci Commission shall not be sub'ect
233 to the provisions of this section until such time as they begin to actually receive benefits
234 after termination-of employment in accordance with Section 18-169(e).
235
236 e Notwithstandin• an •rovision of subsection a b c or d above a Retiree ho
237 has retired on an Earl Retirement or a Disa•ili Retirement ma, not be reem lo ed b
238 the city and continue to receive a benefit from this Fund. Retirement ursuant to an earl
239 retirement incentive •ro•ram shall be deemed earl, retirement for ur oses of this
240 section if the member was permitted to retire prior to the customary retirement date
241 provided for in the plan at the time of retirement.
242
243
244 Section 7. It is the intention of the City Commission of the City of Boynton Beach that the
245 provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the
246 City of Boynton Beach Florida The Sections of this ordinance may be renumbered re-lettered
247 and the word Ordinance may be changed to Section Article or such other word or phrase in
248 order to accomplish such intention.
249
250 Section 8. All Ordinances or parts of Ordinances Resolutions or parts of Resolutions in conflict
251 herewith be and the same are hereby repealed to the extent of such conflict.If any clause section
252 or other part or application of this Ordinance shall be held by any court of competent jurisdiction
253 to be unconstitutional or invalid such unconstitutional or invalid part or application shall be
254 considered as eliminated and so not effecting the validity of the remaining portions or
255 applications remaining in full force and effect.
256
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257 Section 9. This Ordinance shall become effective upon passage, unless otherwise provided for
258 in this amendment.
259 FIRST READING this 3`a day of April, 2018.
260 SECOND,FINAL READING AND PASSAGE this t_3 day of
261 2018.
262
263 CITY OF BOYNTON BEACH, FLORIDA
264 YES NO
265
266 Mayor— Steven B. Grant
267
268 Vice Mayor—Christina L. Romelus
269
270 Commissioner—Mack McCray
271
272 Commissioner—Justin Katz ✓
273
274 Commissioner—Joe Casello ✓
275
276
277 VOTE 5-0
278 ATTEST:
279
0
281
CMC'282 Judit A. Pyle, CMC
283 City Clerk
284
285
286
287 (Corps_—el-
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ARTICLE 39
PENSION
. Section 1, Bargaining Unit Members hired on or after October 1,2015 will have a
pension multiplier of three percent(3%).
Section 2. Upon,ratification of this Agreement,the City and the Union conformed to the
statutory requirement to negotiate provisions of SB 172,codified as Laws of Florida 2015-
39 by entering into a Mutual Consent Agreement The Mutual Consent Agreement is
attached hereto as Addendum"B."
Section 3, The vesting period for Police Officers and Detectives hired on or after
October 1,2016 is ten (10)years.
Section 4, The City and Union agree to reopen this Article at the request of City during
year three of this contract,
Page 61 of 78
TA-PBA T -City
PBA Police Officers&Detectives and City of Boynton Beach-Fora Term Ending September30,2019
UNION CONTRACT-ADDENDUM"BA
MUTUAL CONSENT AGREEMENT
(Use of Insurance Premium Tax Revenue)
This Mutual Consent Agreement is entered into between the CITY OF BOYNTON
BEACH, a Florida municipal corporation, whose address is 100 E. Boynton Beach
Boulevard, Boynton Beach, FL 33435 (the "CITY") and the PALM BEACH COUNTY POLICE
BENEVOLENT ASSOCIATION ("PBA") POLICE OFFICERS AND DETECTIVES, POLICE
SERGEANTS,AND POLICE LIEUTENANTS.
WHEREAS, the 2015 Florida Legislature enacted legislation (Chapter No. 2015-39,
Laws of Florida), hereinafter "Legislation" regarding the use of insurance premium tax
revenue("IPTR");and
WHEREAS, the City has a retirement pension plan and fund for police officers
known as the Boynton Beach Police Officers' Pension Fund ("Fund") that exceeds the
minimum benefits and minimum standards established by the State of Florida for public
employee firefighter pension plans as set forth in chapter 185,Florida Statutes;and
WHEREAS,the Legislation provides that use of IPTR,including any accumulations of
additional premium tax revenues which have not been allocated to fund benefits in excess
of the minimum benefits, may deviate from the provisions of the Legislation by mutual
consent of the members'collective bargaining representative(PBA).
NOW THEREFORE,the City and Unions agree as follows:
1. The foregoing Whereas clauses are true and correct.
2. The total of sixty thousand dollars ($60,000) of IPTR whether base premium tax
revenue or additional premium tax revenue, received by the City will be used to
reduce the City's unfunded liability to the Boynton Beach Police Officers' Pension
Fund. These funds will be provided to the City in$30,000 increments by November
2017 and November 2018.
3. This Consent Agreement takes effect when signed by PBA and City.
Signature Page follows
a<f*? Page 76 of 78
TA-PBA TAQ City
PBA Police Officers&Detectives and City of Boynton Beach-Fora Term Ending September 30,2019
11
4`
THE CITY OF BOYNTON BEACH
/77 4
- ' ie,q
Lori LaVerriere, C ty Manager
i
ATTEST-, a
- , /- ( L-
City'Cierk
BOY T °N BEACH POLICE OFFICERS AND DETECTIVES, POLICE SERGEANTS, AND
POLJ LIEUTENANTS
tikik,
Joh: : Win n..
APPROVED AS TO LEGAL FORM:
dA4ZILCity At
i
Page 77 or 78
TA-PM Tr-City
FBA Police Officers&Detection and C y of Boynton Beach-Fore Term Endln.September 30,2019