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O68-10 ORDINANCE NO. 68 - 10 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA~ ESTABLISHING A RETIREMENT AND PENSION PLAN FOR EMPLOYEES OF SAID MUNICIPALITY AND PROVIDING FOR ITS ADMINISTRATION AND OTHER MATTERS RELATING THERE- TO; FURTHER PROVIDING FOR AN EFFECTIVE DATE, SAVINGS PROVISIONS, AUTHORITY TO CODIFY, REPEALING PROVISIONS AND FOR OTHER PURPOSES. PRE AM B LE WHEREAS, the City Council of the City of Boynton Beach, Florida, acknowledges that there are municipal employees who have faithfully served the City and who will reach the age of retirement because of advanced age, and who are deserving of retirement pay; and WHEREAS, the Council has determined that the City will be better able, at prevailing wage scale, to retain the services of day laborers, as welt as office and field employees and firemen and policemen if some provision is made for a pension upon retirement at stated ages; and WHEREAS, it is believed to be in the best interests of the City to create a retirement and pension plan for all employees of the City; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH, FLORIDA: SECTION 1 - Definitions: The following words and phrases, as used in this Ordinance, 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 of Boynton Beach shall not necessarily apply to the members of the retirement system hereby created except when specifically adopted: i. i 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. 1.2 Annuity: Annual payments for life to be paid in equal monthlTM installments on the last day of the month in which the same accrue. Such payments shall be made on a calendar month basis and the payment for any month may be prorated if appropriate. i. 3 Annual Earnings: Gross earnings received by the employee as compensation for services to the City, including overtime pay. Bonuses shall be excluded. 1.4 Beneficiar_y_L. Any person in receipt of, or entitled to, an annuity, retirement allowance, or other benefit as provided by this Ordinance. I, 5 Board of Trustees: For the purposes of this Ordinance, Board of Trustees, Board or Trustees shall be construed to mean the rnena~_bers of the City Council, unless the said Council, by resolution, designat~ additional or substitute individuals to perform the duties and functions of such Board of Trustees. 1.6 Charter: The Charter of the City of Boyn~on Beach, Florida, as amended. 1.7 City: The City of Boynton Beach, Florida. 1.8 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. I. 9 Creditable Service: Service in the employvnent of the City for which credit is allowed under the terms of this Ordinance. Such service shall be computed to the nearest whole month of completed service but not including any fractional parts of a month. 1.10 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. 17 1I 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 annua'l salary, compensation or remuner- ation. Independent contractors are excluded. Part-time employees working less than 30 hours per week are 2 excluded. i. I2 Fund or Pension Fund: Ail 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, tess 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, in accordance with the Plan, or less any losses or depreciation, of asset value. i. 13 Gender: The masculine pronoun shall include the feminine pronoun. 1.14 General Emp!©yee: A general employee shall include all employees as defined in 1.11 herein, other than Policernen and Firemen. 1.15 A4ernber: 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. 1~? i6 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. 1o 17 New- Member: Any permanent employee who becomes a member of the Plan after the effective date of the Plan. 1.18 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. 1.19 Original 1Viember: Any permanent employee of the City who becomes a member as of the effective date of the Plan. 1.20 Past Service: Continuous service rendered as a full-time employee from his date of employment to the effective date of the Plan. -3- 1.21 Permanent Employ?e: 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. 1.22 Plan, Pension Plan or Emplo_p~ie_'es' Pension Plan: The system of retirement benefits provided under this Ordinance. 1.23 Plan Year: A period of twelve consecutive months measured from the effective date of the Plan, or from any anniversary thereof. 1.24 Social Security Option: An optional form of retirement as described in Section 5. 9. 1.25 Retirement: Withdrawal from active employment by the City with retirement income granted under the provisions of this Plan. 1.26 Retirement Annuit. y Optipn~: An optional form of retirement annuity as described in Section 5.8. i. 27 Treasurer: The Treasurer of the Plan is the City Finance Officer. SECTION 2: Establishment of the System. 2. i A pension and retirement system for full-time permanent employees in the service of the City of Boynton Beach is hereby established to provide retirement benefits as provided by this Ordinance. It shall be known as the EMPLOYEES' PENSION PLAN OF THE CITY OF BOYNTON BEACH, FLORIDA. SECTION 3: Membership and Service. 3.1 Original Members: All full-time, permanent City employee~, on the effective date of the Plan who do not currently participate in either the )ension plan for firemen or the pension plan for policement in Boynton Beach aay 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. 3.2 New Members: New, full-time; permanent general City employees will participate in the Plan onthe first day of the month following, permanent general city employee. or coinciding with, the date of their .becoming a/~ 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. 3.3 Firemen and Policemen: IiU~~~.~.xpolicemen who do not elect to become members of the pension pla~ii~x~m~2~~~ for policemen in Boynton Beach when first eligible, or who elect not to participate in the pension plan\~fi~D~xixh~x~a~i~:l~ for policemen at some future date, will become rnembers of the Employees' Pension Plan of the City of Boynton Beach on the first day of the month following, or coincidin~ with, the date of their election not to participate in, or to terminate from, the pension plan f~rxfi~l~x~r~f~l~:~~x~o_r policem-en, provided they qualify under Section 3.2 as full time permanent general employees. $. 4 Creditable Service: Creditable service for the purpose of calculating benefits for general employees shall consist of the membership service rendered by the employee since he last became a member, plus past service rendered continuously since the employee's last date of employment, his normal retirement date. Firemen and Policemen. Creditable service for the purpose of not be given to calculating retirement benefits k~fxgifftl~f~k%PXlxl~~12 shall/~f:x!~fx~ any firemen or policemen when such service was rendered under the firemen or policemen pension plan. -5- 3.5 Service Before the Effective Date of the 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 Ptan~ with the exception as outlined in Section 3.4. 3.6 Termination of Membership: Should any member separate from the service of the City for any reason except his retirement or death, 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 5. 7 of this Ordinance. SECTION 4: Contributions and Fund. ing: 4.1 Pension Fund: 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 Ordinance. 4.2 Employee Contributions: Employees who are members of th Plan shall contribute three percent of the first $650.00 monthly earnings, plus six percent of monthly earnings in excess of $650.00. (Example 1: An employee earning $500.00 per month will contribute three percent of $500.00, or $15.00 to the fund for that month. Example 2: An employee earning $750.00 per month will contribute three percent of $650.00, plus six percent of $100.00, or $25.50 to the pension fund each month. ) 4.3 Deduct Contributions from. Pay: The Director of Finance shall cause contributions provided for in Section 4.2 of this Ordinance to be deducted from the compensation of each member on each and every payroll, for each and every payroll, so long as each original member remains subject to the employee contributions rates of Section 4.2. A member's contribution provided for herein shall be made notwithstanding that the minimum compen- -6- Sation 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 Ordinance and when deducted shall be paid into the furor the Plan and shall be credited to the individual mernber from whose compensation said deduction was made. 4.4 Return of Accumulated ]Emplgyee Contributions: (a) Should any member cease to be an employee of the City of Boynton Beach for any reason except his retirement or death, he shall be paid all of his accUmUla~ad contributions standing to his credit in the fund, as he shall demand on forms furnished by the Council. (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 duty executed and filed with the Council. If there shall be no such designated person or persons surviving the said member, his said accumulated contributions shall be paid to his estate. 4.5 Monies to be Credited to the Fund: All gifts, devises and bequests to the Plan shall be credited to the pension fund. The City may accept gi~s, devises, bequests, or appropriationsfor the fund from any sourc~ but shall have the right to reject same if they are so conditioned as to conflict with the Charter or this Ordinance, or to make the administration of the same unreasonably difficult. 4.6 Cost of the Plan: All costs of the Pension Plan in excess of sums received through employee contributions, gifts, devises, bequests, and from other sources, wilt be borne by the City of Boynton Beach. -7- 4....7 ~..i.~Y'S Contribution: The City of Boynton Beach 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 Section 7. 4.8 Treasurer: Employee contributions, gifts, bequests, devise~ 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 alt pension funds appropriated by the City Council. The Director of Finance shall be responsible for making alt payments and disbursements from the pension fund. SECTION 5. Retirement and Retirement Benefits: 5.1 Normal Retirement: An employee will normally retire on thc first day of the month following the employee's 65th birthday or the first of the month following ten years of completed service with the City, whichever is late In the event of such 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: "The monthly benefit shall consist of a past service benefit, if any, and a future service benefit computed as described below. Original members of the plan will be credited with a past service benefit equal to one percent (1%) of the first $650.00, plus one and one-half percent (1-1/2%) of the excess over $650.00 of the monthly rate of earnings, in effect as of April 1, i968, multiplied by the member's number of years and fractions thereof to completed months of service as of April i, 1968. Members of the plan will be credited with a future service benefit during each year of participation in the plan commencing with April 1, 1968, or the effective date of their membership inthe plan, whichever is later and ceasing with the member's retirement. For each year of future servide -8- membership the member will be credited with a monthly~ future service benefit equal to one and one-qu'arter percent (i-'I/4~0) of the first $650.00 plus tw0 percent (2~0) of the excess over $650.00 of the monthly rate of compensation during such year of membership in the plan. For the purposes of future service benefits, the monthly rate of earnings shall equal annual earnings as described in subsection 1.3, divided by the number of months of membership during the plan year." 5.2 Pension Payments: Pension payments will be made monthly beginning with the first month of retirement and continuing until death, unless a retirement annuity option has been elected,in which case paym. ents will be made in accordance with the option. 5.3 Delayed Retirement: An employee who does not desire to retire on his normal retirement date may make written application to the City Clerk c~ City Manager for retention in regular or part-time employment subsequent to the time of normal retirement 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 ~ ~e~ommendation and~tl~pi~val of the City Council/ factors. Upon tneka~k~kv~ of the City Manager~he employee will be retained by the City for a period not to exceed one year following his date of normal retirement. Nevertheless, similar additional applications for renewal or retention in employment rnay be made under the same procedure in each of four successive years, or until the employee reaches age seventy, whichever is earlier. However, the mandatory retirement age for employees who are sixty-eight years old, or older, as of the effective date of the plan will be decided by the City Council without regard to other provisions of this Ordinan¢ 5.4 Retirement Prior to Normal Retirement Date: An ernployee who has ~wenty years of credited service and has attained his sixtieth birthday may make written application for early retirement to the ~y Manager. ~YJith approval of the City Manager the employee may retire on the first day of any month following, or coinciding with, his sixtieth birthday. In such event he ¸--9-- shall be entitled to and shall be paid an annuity equal in amount to the annuity computed on the basis of normal retirement, excepl that the amount so computed shall be reduced by five-twelfths (5/12ths) of one percent (1%) of said amount for each month that early retirement precedes his sixty-fifth birthday. 5.5 Death Before Retirement Date: 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 Ordinance, then the total amount of contributions by said employee to said fund, up to the time of his death, shall be paid to the beneficiary of the said deceased employee, together with interest thereon at the rate of 3% per annum, computed from the end of the plan year for which contribution was made to date of death, unless the employee has reached normal retirement age and a joint and survivorship option has~been selected by the employee, in which case pension pa.y~ ents will be made as t~ough the employee had retired on the day before he died. is computed for a period in excess of one year, 5.6 Death After Retirement Date: In the event accrued interest said interest shall be compoun~ In the event of the death of an employee prior to the receipt by said employee of benefits Under this Article amount equal to the total amount contributed by such employee to the pension fund, then the total amount contributed by such employee to the pension fund less the amount of the benefits received by such employee under this Section shall be paid to the beneficiary of such deceased employee, together with interest~thereanat the rate of 3% per annum, computed as in 5.5 above, the retired employee has elected a retirement annuity option under the terms of this Plan. 5.7 Termination of Service 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 said fund up to the time of his regisnation or discharge shall be returned, together with interest thereon at the rate of 3% per annum, computed as in 5.5 above to date of resignation or discharge, and said employee shall immediately shall cease to be a member -i0- and entitled to, the benefits of said fund unless the member has completed ten years of credited service under the Plan. If he has completed ten years of credited service he shall be fully vested in the amount of pension credit earned to the date of voluntary resignation or discharge. Upon reaching age sixty-five he may apply for, and shall be paid, a monthly annuity equal to the monthly pension credit earned during his years of employment. Notwithstanding the provisions of the preceding paragraph, an employee who has completed ten years of service may apply for and shall receive the total amount he has contributed to the pension fund up to the time of his resignation or discharge and said employee shall immediately cease to be a member of, and entitled to, benefits under the Plan. 5.8 Retirement Annu. ity Option.._ The member may elect to rec, annuity benefits payable under the Plan with the approval of the Council in the form of a joint and survivor ~nnuity instead of the normal annuity form, which shall be the actuarial equivalent of the annuity which he would normally receive Under the joint and survivor annuity, two-thirds of the retirement annuity ' continues to the surviving contingent annuitant, until his or her death. The joint and survivor annuity election must be requested by the employee at least three (3) years prior to date of retirement, including retirement prior to normal retirement date, and shall be subject to approval or disapproval by the Council at the time of election. The election of a joint and survivor annuity shall be deemed to be automatically cancelled in the event of the death of either proposed annuitant 0rior to the member's actual retirement. 5.9 Social Securit~_~ption: An employee who retires before he s 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 the two 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. 5.10 Member Records; Status Statements: A separate record and of account shall be maintained for each member/amon~ other things, shall show his service record, his accumulated contributions to the plan, his exact age, any designation of alternate or contingent beneficiaries, together with any such information as is necessary for an active and comprehe ix determination of his status under this Plan. 5.11 Benefits Unassignable and not Subject to Process: The right to 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 this Ordinance 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 Ordinance. -12- 5.12 Errors, Corrections and Adjustments: Should any change or error in the records of the Plan be discovered, or any error in any calculaiion 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 as far as possible to adjust the payments thereafter to be made in such a manner ~that the actuarially equivalent of the benefit to which such member or beneficiary was correctly entitled, be paid. 5.13 No Interesl 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 ex- pressed and provided in this Ordinance. 5.14 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: (It Directly to such person; To his legal guardian or conservator; (3~ 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 rnernt)er~'of the Plan. SECTION 6. LEAVES OF ABS]~NCE AND MILITARY SERVICE 6.1 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 employ= m ent. 6.2 Military and Related Service: ~/-hen 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 -13- 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, (hereinafter referred to as "military or related service"~, and is subsequently re-employe by the City within 90 days after release from any such service, shall again become a member of the Plan, and shall be given service credit for the service before entering military or related service, and if approved by the ]~oard for the period of time spent in military or related service as well. 6.3 Re-Employment~ No Leave of Absence or Military Service: When any former employee of the City is re-employed, and said employee has withdrawn contributions previously made to the Plan, he wilt again become a member of the Plan, but will r~t be given credit for previous service with the City of Boynton Beach. When a former employee of the City is re-employed, and said employee had previously served the City continuously for a period of ten years or more and had left his accumulated employee contributions on deposit in the pension fund, he will receive credit for his prior service. SECTION 7. Administration of the Plan 7.1 General Supervision: The general supervision of the admini- stration of the Plan shall be by the Council, acting as the Board of Trustees. 7.2 Compensation of the Board: The members of the Board shall serve without compensation for their services. 7.3 Meetings of the Board: This Plan or any matter herein may be considered and disposed of at any Board meeting. A majority of the member- ship shall constitute a quorum and all decisions, acts, and resolutions of the Board shall be by affirmative vote of at least three members. 7.4 Adrninistratrive Regulations: The Board by resolution may promulgate written rules and regulations not in conflict with the expressed terms of this Ordinance or the Charier to cover the operation of any phase or part of the Plan as provided by this Ordinance. Copies of such rules and regulations shall be furnished to any member of the Plan upon request and at -14- least one copy thereof shall be kepi available in the office of the City Clerk for examination by an~interested persons at any time during ordinary business hours. Otherwise, a copy of this Ordinance shall fully meet the provisions herein. 7.5 Interpretation of the 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. 7.6 Agents. and Employees: The Board shall have the power to select, employ and compensate, or cause to compensate from lime 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. 7.7 Other Powers and Duties: 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 Ordinance. Where not in con- glict with this Ordinance, or the Charter, the Trust Agreement or contract entered into with the Insurance Company, shall govern. 7.8 Secretary of the Board: The City Clerk or Deputy Clerk shall be Secretary to the Board under this Plan. 7.9 Duties of the Secretary: It shall be the duty of the Secretary to keep accurate minutes and records of the acts of the t~oard under this Plan separate and apart from the regular minutes of City Council meetings. This provision ismade 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. 7.10 Written Records: 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 s;hall maintain all records in segregated files pertain- ing to the Plan and they shall not be intermingled with other files of the City. -15- 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. 7.11 InveStment of Funds: The Board shall have full power to in- vest and re-invest all funds within their control and to make investments of kinds that are permitted by law. The Council shall have authority to direct that pension funds be deposited with banks and/or savings and loan associatiol or invested in securities, to negotiate appropriate contracts with banks trust powers, or an insurance company or companies, under the terms of which funds will be deposited with a bank, insurance company or companies, as determined by the Board, and annuties may be provided for members and their beneficiaries in accordance with the terms of this Plan. The Board may terminate such trust agreements or contracts or negotiate amendments as it sees fit. 7.12 Annual Reports by the Trustee or Insurance Company: The Trustee or Insurance Companyzc~f ~ompanies 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 stateme, nts to an actuarial consultant designated by the Board. The original shall be retained among the records of the Secretary of the Board. 7.13 Actuary: The Board shall employ an actuary to review the operation of the Plan at intervals of not more than two years, and to make his recommendations to the Board as to the actuarial solvency of the Plan, the amount of the City'S ~ontributions to the fund which in his opinion is necessar' to be made for the current operation of the PI. an, what benefits the Plan can afford to pay on the basis of accumulated contributions to the Plan, and curre 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 -16- retain said Actuary or some other actuary as a consultant, and provide for compensation for services. 7.14 Adoption of Tables: In making any actuarial computation pro- vided in this Ordinance, the tables, charts and other statistical informati~on 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. 7.15 Responsibilities of 1V~embers 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 payr~ nt of benefit or any other payment under or in connection with the Plan. 7.16 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. 7. 17 Personal Liability: Each member of the Board shall use ordinary care and dl~igence in the performance of his duties and shall not be liable for any loss unless resulting from his own gross negligence, or his willful rr~isconduct; nor shall such members be personally liable upon or with respect to any agreement, act, transaction or omission executed, committ~.d 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 ~nsofar as legal matters are concerne. or any accountant similarly employed insofar as accot[~nting matters are con- cerned, 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. 7.18 S..m.all: Annuities - Lump Sum PaYments... Whenever any retirement annuities shall be less than $10.00 per month, the Board may elect to have payments made quarterly. If the annuity payable at quarterly intervals shall be less than $10.00, t~e Board may elect to pay the commuted value of the same, c~lculated at regular interest, in one lump sum. Such election shall be made within six months after the memberts retirement unles he consents in writing to a subsequent slection by the Board under this Section 7. 19 Filing Defined: Where any notice, election or other instrumen is required or permitted by this ordinance to be filed with the Board, the sam, may be filed with its Secretary. SECTION 8. Future ~aanges In The Operation Of The Plan 8.1 General: It is contemplated, and all original and new member of the Plan shall be deemed to have notice, that the City Council 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, to select an~)ther insurance company, trust, or other financial institution, as the depository for pension funds. SE'CTION 9. ProtectiOn Against Fraud and DeCeit 9.1 Violations and Punishment: 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 Chapter~ whether of the enumerated classes or otherwise, which shall be untrue, or who shall falsely or cause to commit to be falsified any record comprising any part of the operation or administration of the Plan contemplated by this ordinance, shall be as follows: Punished by a fine, not exceeding $500.00~ or by imprisonment not exceeding ninety (90) days, or by both such fine and imprisonment. Any such violation shall also be punishable as provided under the laws of the State of Florida. SECTION 10. Amendment: 10.1, Power to Amend or Terminate: City Council shall have continuous power to amend this ordinance as provided by its charter including the power to terminate the plan, In the event that 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 benefits which the retired employees are redeiving. 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. S~ECTION 1~,_,. Separability and Construction: 11~ 1 In the event any section~ subsection, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional~ such adjudication shall not in any manner affect the remaining portions of the Ordinance~ which shall be~ and remain in full force and effect as fully as if the portions so adjudicated invalid are unconstitutional were not originally a part thereof. The articles and section headings included in this Ordinance shall not be construed to limit the text included hereunder. SECTION 12. Authority to COdify: Specific authority is hereby granted to codify and incorporate this Ordinance in the City's existing Code. SECTION 13. R~epe,al%ng Provision: All Ordinances and parts of Ordinances in conflict herewith are hereby repealed to the extent of such c onftict. -19- SECTION 14. Effective Date: This Ordinance shall be deemed to be effective as of April 1, 1968. A.D. 1968. First reading this 20th day of May, A. D. 1968. Second, final reading and passage this ~'/~--day of~ ATTEST: SEAL -20-