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O93-71ORDINANCE NO. 093-5/ AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, AMENDING ARTICLE III, OF THE CODE OF ORDINANCES OF THE CITY OF BOYNTON BEACH, AMENDING SECTION ~i~,!_~.~!~ PROVIDING FOR CONTRIBUTIONS TO BE PICKED UP IN COMPLIANCE WITH SECTION 414 OF THE INTERNAL REVENUE CODE; CREATING SECTION 18-172 TO PROVIDE FOR DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS AS REQUIRED BY THE PROVISIONS OF THE INTERNAL REVENUE CODE; PROVIDING THAT EACH AND EVERY PART OF ARTICLE III NOT HEREIN SPECIFICALLY AMENDED SHALL REMAIN IN FULL FORCE AND EFFECT; PROVIDING FOR CONFLICTS, SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE. WHEREAS, the Police Pension Board and the City Commission deem it in the best interest of the pension fund, the members and the City of Boynton Beach to amend Section i8-170 of the Code of Ordinances of the City of Boynton Beach, providing for compliance with Section 414 of the IRS code, and creating a new section for direct transfers of eligible rollover distributions. NOW, THEREFORE, IT IS HEREBY ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. That Article III, Section.18-170 be amended by adding the words and figures in underlined type and by deleting the words and figures in struck-through type, as follows: Section 18-170. Pclicc Pcnsicn Fund. The contribution rate for police officers shall be seven (7%) percent of salary. The City shall pick up, rather than deduct, all regular contributions of members. The City shall derive pick up amounts from the same sources of funds it has used in compensating members of the Retirement Plan and shall do so by reducing the salary for each member. All pick up contributions shall be treated as employer contributions for the purposes of determining tax treatment under the Internal Revenue Code of 1954, as amended. Ail such pick up a~nounts shall be considered as employee contributions ~for the purposes of this plan. All amounts so p~ked up shall be promptly deposited into the Boyntoh Beach Police Pension Fund. Section 2. Article III, Section 18-172 is hereby created by adding the words and figures in underlined type as follows: Sec. 18-172. Direct Transfers of Eligible Rollover Distributions. A. GENERAL. This section applies to distributions made o--~ or after January 1, 1994. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, 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. B. Definitions. 1. Eligible Rollover Distribution: An eligible rollover distribution is any distribution of all o~ any portion of the balance to the credit of thc distributee, except an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life 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 required under IRC Section 401(1)(9); and the portion of any distribution that is not includible in gros~ income. 2. Eligible Retirement Plan: An eligible retirement plan is an individual retirement account described in IRC Section 408(a), an individual retirement annuity described in IRC Section 408(b), and annuity plan described in IRC Section 403(a), 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. 3. Distributee: A distributee includes an employee o-~ former employee. In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse. 4. Direct Rollover: A direct rollover is a payment. by the plan to the eligible retirement plan specifie~ by the distributee. Section 3. That each and every other provision of Article III not herein specifically amended shall remain in full force and effect. Section 4. That all ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. Section 5. Should any section or provision of this ordinance or portion hereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the remainder of this ordinance. Section 6. ordinance. Section 7. This ordinance shall become January 1, 1994. FIRST READING this /~ day of November, 1993. SECOND, FINAL READING and PASSAGE this ~ day of~z~ 1993. Authority is hereby granted to codify said CITY OF BOYNTON BEACH, FLORIDA / - effective Mayor Pro Commissi( ATTEST: Cit~ Clerk (Corporate Seal) Police. Pen 11/11/93