O93-16ORDINANCE NO. 093-
AN ORDINANCE OF THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA,
AMENDING ARTICLE IV, PENSIONS FOR
FIREFIGHTERS, SECTION 18-180 TO PROVIDE
MAXIMUM INCOME LANGUAGE IN ACCORDANCE
WITH THE PROVISIONS OF SECTION 415(D) OF
THE INTERNAL REVENUE CODE; AMENDING
SECTION 18-183, PROVIDING A DEFINITION OF
AVERAGE ANNUAL COMPENSATION FOR THE
PURPOSE OF iNTERPRETING THE TAX
PROVISIONS OF THE PENSION CODE; CREATING
SECTION 18-187, PROVIDING FOR
DISTRIBUTIONS IN REVENUE CODE; CREATING
SECTION 18-188, PROVIDING FOR 100%
VESTING UPON REPEAL OR TERMINATION OF THE
FUND IN ACCORDANCE WITH PROVISIONS OF THE
INTERNAL REVENUE CODE; PROVIDING THAT
EACH AND EVERY PART OF ARTICLE IV NOT
HEREIN SPECIFICALLY AMENDED SHALL REMAIN
IN FULL FORCE AND EFFECT; PROVIDING FOR
CONFLICTS, SEVERABILITY, CODIFICATION AND
AN EFFECTIVE DATE.
WHEREAS, the Internal Revenue Service has issued a
favorable determination letter to the Fire Pension Fund; and
WHEREAS, the favorable determination letter requires
certain technical amendments which do not have a cost impact
upon the taxpayers or the plan; and
WHEREAS, the Fire 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 maintain the Fire Pension Plan
as tax qualified;
NOW, THEREFORE, IT iS HEREBY ORDAINED BY THE CITY
COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. That Article IV, Section 18-180 be amended
by adding the words and figures in underlined type and by
deleting the words
follows:
Section 18-180.
and figures in struck-through type, as
Monthly Retirement Income.
(a). The amount of monthly retirement income payable
to a firefighter who retires on or after the
firefighter's normal retirement date shall be an
amount equal to a number of the firefighter's years of
credited service, multiplied by two and six-tenths
(2.6%) percent of such firefighter's average final
compensation.
(b). In no event may a member's annual benefit exceed
the lessor or:
(A) $90,000 (adjusted for cost of living in
accordance with Internal Revenue Code (IRC)
Section 415(d), but only for the year in
which such adjustment is effective), or
(B) 100% of the averaqe annual compensation
for the member's three (3) highest paid
consecutive years; however, benefits of up
to $10,000 a year can be paid without regard
to the 100% limitation if the total
retirement benefits payable to a member
under all defined benefit plans (as defined
in IRC, Section 414(j) maintained by the
City for the present and any prior year do
not exceed $10,000 and the City has not at
any time maintained a defined contribution
plan (as defined in IRC, Section 414(i), in
which the employee was a member.
If a member has less than ten (10) years of service with the
City, the applicable limitation in paragraph (A) or paragraph
of this subsection shall be reduced by multiplying such
limitation by a fraction, not to exceed one. The numerator of
such fraction shall be the number of years, or part thereof, of
service with the City; the denominator shall be ten years.
For purposes of this subsection, "annual benefit" means a
benefit payable annually in the form of a straight life annuity
with no ancillary or incidental benefits and with no member or
rollover contributions. To the extent that ancillary benefits
are provided, the limits set forth in paragraphs (A) and (B)
above will be reduced actuarially, using an interest rate
assumption equal to the greater of five (5%) percent or the rate
used for actuarial equivalence, to reflect such ancillary
benefits.
If distribution of retirement benefits begins before age 62, the
dollar limitation as described in paragraph (A) shall be reduced
actuarially using an interest rate assumption equal to th~
greater of five (5%) percent of the interest rate used for
actuarial equivalence; however, retirement benefits shall not b~
reduced below $75,000 if payment of benefits begins at or after
age 55 and not below the actuarial equivalent of $75,000 if
payment of benefits begins before age 55. For a member with
fifteen (15) or more years of service with the City, th~
reductions described above shall not reduce such member's
benefit below $50,000 (adjusted for cost of living in accordance
with IRS Section 415(d), but only for the year in which such
adjustment is effective). If retirement benefits begin after
age 65, the dollar limitation of paragraph (A) shall be
increased actuarially by using an interest assumption equal to
the lessor of five (5%) percent or the rate used for actuarial
equivalence.
For purposes of this subsection, the "average annual
compensation for a member's three (3) highest paid consecutive
years" shall mean the member's greatest aggregate compensation
during the period of three (3) consecutive calendar years in
which the individual was an active member of the plan. The sum
of the defined benefit fraction and the defined contribution
fraction for all qualified plans of the City for each common
shall not exceed 1.0.
Section 2. Article IV, Section 18-183 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 18-183. Average final compensation defined;
average annual compensation defined.
(a). Average final compensation, for the purpose of
calculating entitlement to benefits under this plan, shall
mean the average cash compensation exclusive of bonuses and
incentive pay received by a firefighter during the five (5)
consecutive years of service with the City which produces
the highest average.
(b). Average annual compensation, for the purposes of
determining compliance of provisions of the Internal
Revenue Code, shall mean the member's greatest
aggregate compensation during the period of three (3)
consecutive calendar years in which the individual is
an active member of the plan. This provision relates
solely to calculation of maximum pension earnings in
Section 18-!80(b) of the Code of Ordinances and shall
not be applicable to the determination of average
final compensation as defined in Code Section 18-
183(1) or referred to in the determination of monthly
retirement income in Section 18-180(a).
Section 3.
That Article IV, Section 18-187 is hereby
created by adding the words and figures in underlined type as
follows:
Section 18-187.
Required Distributions.
In no event may a member's retirement benefit be
delayed the later of the April 1st following the
calendar year in which he attains age seventy and one-
half (70 1/2) or April 1st of the year following the
calendar year in which he retires.
When a distributiOn of the participant's entire interest is
not made in a lump sum, the distribution will be made in
one or more of the following ways: over the life of the
participant; over the life of the participant and
designated beneficiary; over a period certain not extending
beyond the life expectancy of the participant; or over a
period certain not extending beyond the joint life and last
survivor expectancy of the participant and a designated
beneficiary.
If distribution has commenced before the participant's
death, the remaining interest will be distributed at
least as rapidly as under the method of distribution
being used as of the date of the participant's death.
The method of distribution, if the participant dies
before distributions commence, must satisfy the
following requirements: (a) any remaining portion of
the participant's interest that is not payable to a
beneficiary designated by the participant will be
distributed within five (5) years after the participant's
death; and (b) any portion of the participant's interest
that is payable to a beneficiary designated by the
participant will be distributed either (i) within five (5)
years after the participant's death, or (ii) over the life
of the beneficiary, or over a period certain not extending
beyond the life expectancy of the beneficiary, commencing
not later than the end of the calendar year following the
calendar year in which the participant died, (or, if th~
designated beneficiary is the participant's surviving
spouse, commencing not later than the end of the calendar
year following the calendar year in which the participant.
would have attained age 70 1/2).
Section 4.
That Article IV, Section 18-188 is hereby
created by adding the words and figures in underlined type, as
follows:
Sec. 18-188. Repeal or Termination of Fund.
In the event of the termination or partial termination
of this plan, each participant's accrued pension
benefit shall become nonforfeitable (100) vested) to
the extent funded. At such time, the fund shall be
approDriated and diStributed in accordance with
Chapter 175.351, Florida Statutes.
Section 5. That each and every other provision of
Article IV not herein specifically amended shall remain in full
force and effect.
Section 6. That all ordinances or parts of ordinances
in conflict herewith be and the same are hereby repealed.
Section 7. 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 8.
ordinance.
Section 9. This
immediately upon passage.
1993.
Authority is hereby granted to codify said
ordinance shall become effective
FIRST READING this ~ day of June, 1993.
SECOND, FINAL READING and PASSAGE this /~ day of June,
CITY OF BOYNTON BEACH,
FLORIDA
ATTEST:
~Cit~ Clerk -
(Corporate Seal)
ommfp~ ~f~ r L/
Commiss~er