Loading...
O00-75THIS PAGE HAS BEENAMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. 0 00-75 ORDINANCE NO. O 00-75 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA AMENDING CHAPTER 18, ARTICLE II OF THE CODE OF ORDINANCES OF THE CITY OF BOYNTON BEACH, FLORIDA TO PROVIDE ENHANCED RETIREMENT BENEFITS TO THE MEMBERS OF THE GENERAL EMPLOYEES' RETIREMENT PLAN; SPECIFICALLY AMENDING SECTION 18-79 AND 18-117 TO PROVIDE THAT A MEMBER SHALL BECOME VESTED IN THE PENSION PLAN UPON COMPLETION OF FIVE (5) YEARS OF SERVICE MONTHLY EARNINGS; PROVIDE THAT ON OR ~TER RE FIFTH SERVICE SE (7%) OF N 18-111 TO 2001 NORMAL FWENTY-FIVE BIRTHDAY (62nd) AND OF (75%) OF AN 18- 18-1 PLAN CODING: Words in ,st61r~Jm~ type are deletion fi.om existing law; Words in underscored type are additions. Page 1 of 13 \\CHLMAIN%SHRDATA\CA ©RD ~PensioffxAmendment General Emp's Pea~sim~ I Plan 121400.docJ 5£ HP, DATA \,CA~,OPJ~?en, sisn\c\m~n, dment te G~2 EmT's P'~sion PN~~, 12 ! 400.d~ I Rev. 1/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT. A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 WHEREAS, the General Employees' Pension Plan (the "Plan") of the City of CODING: Words in ~ type are deletion from existing law; Words in underscored type are additions. Page 2 of 13 \\CH~MAIN\SItIADATA\CA\ORD\Pensioff%~mendment to General Emp's Peamion I Rev. 1/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. 0 00-75 Boynton Beach ("City") is a defined benefit Plan; and WHEREAS, the Board of Trustees ("Board") of the General Employees Pension Plan of the City of Boynton Beach studied the proposition of converting the Plan to a defined contribution Plan; and WHEREAS, the Board determined that it would be in the best interests of the Plan members for the Plan to continue as a defined benefit Plan, but to modify the Plan to provide increased benefits to the members without increasing the associated costs of such increased benefits to the City, pursuant to Section 18-11 l(c)of the Plan; and WHEREAS, the City Commission of the City of Boynton Beach, Florida, has received an actuarial report in connection with the above mentioned requested change to the Plan and desires to hereby amend the Plan as requested; and WHEREAS, the City Commission has reviewed the recommendations of the Board and finds the amendments to the Plan proposed by the Board as provided herein to be in the best interests of the Plan members and the City; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. The foregoing "WHEREAS" clauses are hereby certified as being CODING: Words in ~ type are deletion from existing law; Words in underscored type are additions. Page 3 of 13 \\C~ ruMAIN~S HRDATA\CA\ORD~kP ension'uaa~nendment to General Emp's Pens/on Plan 121.400.docJ :\SHR~ ~'.,; ,C: ........ 2 enaicn ~ ,mcn.mcn~ ,.q (}~era~ ~m~'s, cns~on P!c. nl 21 {gO.dec Rev. 1/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 true andco~ectand are inco~oratedhereinbythisreference. Section 2. Chapter 18, Article II, Division 2, Section 18-79 of the Code of Ordinances of the City of Boynton Beach, Florida; entitled "Termination of Membership," is hereby amended to read as follows: Sec. 18-79. Termination of membership. (a) Should any member separate from the service of the city for any reason except his retirement, death or termination after having completed five (5) ma-04}) years of credited service or after total and permanent disability 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 18-117 of this article. (b) A member of the plan who transfers to employment at the City of Delray Beach at the South Central Regional Wastewater Treatment and Disposal Facility and subsequently becomes a member of the City of Delray Beach pension plan shah not be considered to have terminated service with the city for the purpose of determining whether or not he has completed five (5) ten (1O) or more years of service unless and until such member either withdraws his contribution under this plan as described in section 18-17 but for the purpose of determining the amount of annuity described in section 18- 111 or 18-114 such service after transfer shall not be counted. Section 3. Chapter 18, Article II, Division 3, Section 18-94 of the Code of Ordinances of the City ofBoynton Beach, Florida, entitled "Employee Contributions," is hereby amended to read as follows: Sec. 18-94. Employee contributions required. CODING: Words ' ~1~ ~--h ..... *, h.,~ m .......... r:~ ~;~-~ are deletion from existing law; Words in underscored type are additions. Page 4 of 13 \\C]~.R.--'%~UNAS HRDATA\CA\OtU3~Pensionka~mendme~t m THIS AND PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 Subject to the limitations imposed in section 18-95, employees who are members of the an shall contribute four r ....... .~ ........... ~,~,~.~.~,~ .......... ., earnings, r~o seven percent (7%) of for that month. Section 4. Chapter 18, Article II, Division 4, Section 18-111 oft he Code of Ordinances of the City of Boynton Beach, Florida, entitled "Normal Retirement," is hereby amended to read as follows: Sec. 18-111. Normal retirement. (a) An employee who retires on or after January 1, 1977, but before January 2, 2001 will normally retire on the first day of the month following his or her sixty-second (62~d) birthday or the first day of the month following ten (10) years of completed service with the city, whichever is later. (b) An employee who retires prior to January 1, 1977 will normally retire on the first day of the month following his sixty-fifth (65th) birthday or the first day of the month following ten (10) years of completed service with the city, whichever is later. (c) On or after January 2, 2001, an employee will be eligible to retire on the first day of the month following his or her fifty-fifth (55th) birthday and completion of twenty-five (25) years of service, or his or her CODING: Words in sm4k~lta~gh type are deletion fi:om existing law; Words in underscored type are additions. Page 5 of 13 \\CI~MAINASHRDATAICA\ORD\Pensioff~Amendmm~t to General Emp's Pension I Ptan121400 doclaSH I ~v. 1/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 hxty second (62nd) birthday and completion of five (5) years of service, or they (30) years of se~ice regar~ess of age. (c-~_) In the event of 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: (1) An employee who retires prior to October 6, 1988, shall be eligible to receive a monthly benefit computed in accordance with the provisions of the plan as in effect as of the date of his retirement; provided, however, that with respect to those employees who retired prior to January 1, 1977, effective as of January 1, 1977 the retirement benefit payable to each such individual was increased by twenty-five percent (25%) as of that date; and, provided further, that effective as of October 6, 1988, the monthly benefit payable to each individual who retired before such date shall be increased by two percent (2%) of each such individual's current benefit times the number of full years between each such individual's most recent retirement date and October 6, 1988. (2) An employee who retires prior to October 6, 1988, shall be eligible to receive a monthly benefit computed in accordance with the provisions of the plan as in effect as of the date of his retirement. An employee who retires on or after October 6, 1988, but before January_ 2, 2001, 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 the annuity to which the retired employee will be entitled will be equal to fifty percent (50%) of his final average monthly compensation plus seventy-five percent (75%) of the excess over eight hnndred twenty-five dollars ($825.00) of such final average monthly compensation; provided, however, the employee has completed at least twenty-five (25) full years of credited service at his normal retirement date. If the employee's credited service at normal retirement date is less than twenty-five (25) full years, the aforesaid amount shall be reduced for the shorter service by multiplying it by a fraction, CODING: Words in stl41cq~t~3uj~ type are deletion from existing law; Words in underscored type are additions. Page 6 of 13 \\CflXA~AIN~ HRDATA\CA\ORD~,PensionL~m~endment to Gea~era! Emp% Pension Planl214OO.doa[9,$HRDA.T;h~CAX~RD?cn:;i,'Te~)~Smcn~mm~I; to r. 7~n,e':"~ ~,mp~,'s Pcnsk'n P~-~.~r~121 ~,n,g.doc Rev. 1/3/01 THIS AND PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER' S ERROR IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 the numerator of which is the employee's full years and fractions thereof in months of credited service at normal retirement date and the denominator of which is twenty-five (25) years. (3) An employee who retires on or after January 2, 2001, shall be entitled to and shall be paid an annuity in the mount of three percent (3%) times the number of years of his or her service to the CiW times his or her Final Average Monthly Compensation, subject in any event to a maximum ofsevenW five percent (75%) of his or her Final Average Monthly Compensation. (~_) "Final average monthly compensation," for the purposes of this section, shall mean the monthly average of the employee's eamings during the highest sixty (60) consecutive calendar months occurring in the one hundred twenty (120) calendar months immediately preceding his normal retirement date if such date falls on or after January 1, 1979, and based upon compensation immediately preceding actual retirement date if normal retirement date preceded January 1, 1979, or he elected to continue to contribute after normal retirement date as provided in section 18-95. "Earnings" as used in the above sentence shall mean gross earnings received by the employee as compensation for service to the city including overtime pay and sick pay paid in the lump sum at termination or retirement but excluding bonuses. (4_5) Elective Benefits. The City may, from time to time, offer elective benefits to employees, which benefits would be funded solely by employees contributions and would not result in any additional cost to the City. Section 5. Chapter 18, Article II, Division 4, Section 18-114 of the Code of Ordinances of the City of Boynton Beach, Florida, entitled "Retirement Prior to Normal Retirement Date," is hereby amended to read as follows: CODING: Words ' ~-~,.11~ ih ..... h ha,- m ......... ~,-* -.w-~ are deletion from existing law; Words in underscored type are additions. Page 7 of 13 \\CH~MA1NXSttRDATA\CA\ORD\PensionXAmendmemt m General Ern~p's Pension Plan 121400.docJ:X~SHP, DATAV.~.Ax£OP-D?en.~icnL*.mcn. dmcnt t,~ r. Szn~2 Fmp's P~gic:: Plan 12 I. I Rev. 1/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 Sec. 18-114. Retirementpriorronorm~retirementd~e. (a) The early retirement date of an employee shall be the first day of any month prior to his or her normal retirement date and following, or coinciding with, the date of actual retirement, provided _(A~he has then completed less than thirty_ (30) -fears of service,, but .at least: ~t~ ....... *' ~;*~'~ :er;ice; er (b) ten (10) years of credited service and haS attained his or her fifty-fifth (55th) birthday~ or (cb_) twenty-five (25) years of service and has attained fifty-two (52) years of age. An employee who retires on an early retirement date shall be entitled to a deferred annuity payable beginning at his or her normal retirement date or, if is)he so elects, to an immediate annuity berg at his or her early retirement date. The amount of the deferred annuity will.be equal to a benefit determined as for normal retirement under: the prohsion of section 18-111, but based on the employee's and his or her credited ,, If the retiring employee elects to receive an immediate annuity commencing at his or her early retirement date, the amount of such immediate annuity shall be the acmar/a! ....;'~' ...... deferred annuity described in the preceding sentence (b) Prior to January 2, 2001, /-f if the employee retires after achieving fifty-two (52) years of age and twenty-five (25) years of service, the immediate annuity shall be the actuarial equivalent of the immediate annuity received had the employee retired at fifty-five (55) years of age with twenty-five (25) years of service. Section 6. Chapter 8, Article II, Division 4, Section 18-115, entitled "Death CODING: Words in ~ type are deletion from existing law; Words in underscored type are additions. Page 8 of 13 \\CHkMAiNASHRDATA\CA\OtG)~Pens ioff'C~nendment to General En*r0's Pens/on Plan 121400.docJ:\Sk[RDATA\CA\ORD'~cn,~!cn~men~mc,~t to General E::~':; Rev. 1/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 Be~reRetirementDate,"isher~yamendedas ~llows: Sec. 18-115. Death before retirement date. Ia Prior to January 2,2001, 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 article, then the total amount of contributions by said employee to the fund, up to the time of his death, shall be paid to the beneficiary of the deceased employee, together with interest thereon at the rate of three per cent (3%) per annum to January 1, 1977 and five per cent (5%) thereafter, computed in the manner provided in section 18-117, unless the employee has reached normal retirement age and the retirement annuity option provided in section 18-118 has been elected by the employee, in which case pension payments will be made as though the employee had retired on the date before he died. On or after January 2, 2001, in the event of the death of an employee prior to the receipt by such employee of any of the benefits under the provisions of this article, then the beneficiary of the deceased employee who was not vested, may receive the total amount of contributions by said employee to the fi~nd, up to the time of his or her death, together with the interest thereon at the rate of five percent (5%) per annum thereafter, computed in the manner provided in section 18-117. The beneficiary of an employee who became vested prior to their death may receive the pension benefit earned by the employee as though the employee had retired on the date before (s)he died. Section 7. Chapter 18, Article 1I, Division 4 shall hereby be amended to create a new Section 18-117, entitled "Termination of Services Prior to Eligibility for Retirement," provided as follows: Sec. 18-117. Termination of services prior to eligibility for retirement. CODING: Words in slaqk~ahrq~gh type are deletion from existing law; Words in underscored type are additions. Page 9 of 13 \\CHUM AIN\S HRDATA\CA\ORD~2 ensioff,3~mendment to General Enrp's Pension Planl21400.docJ:\S~RDAT,s2,CPA©RD"~znr;i~v)~Sn~cn~ment to G~er~ Em7~/~ Pcn~s~c'n ?~n121 Rev. 1/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 In the case of voluntary resignation or discharge of any member of the plan, the total mount contributed by said employee to the fund up to the time of his resignation or discharge (together with interest at the rate of three per cent (3%) per annum to January 1, 1977, and five per cent (5%) per annum thereafter compounded from the end of the year in which contributions are made to the date of termination of service) shall be returned and said employee shall immediately cease.to be a member of the plan and shall not be entitled to any other benefits from the Plan unless the member has completed ~ five (5) years l of credited service under the plan or is totally and permanently disabl more years of!credited service or be fully retirement the same early [i retirement date. If he has completed ~ five (5) or totally, and permanently disabled he shall annuity shall be an ~,the deferred annuity described for ~ of such calculation, the >e considered as his early An employee who is entitled to a deferred annuity under the provisions of this section 18-117 may waive his right to such deferred annuity and accept in lieu thereof the total amount he has contributed to the pension fund (together with interest thereon as described above) up to the time of his resignation or discharge. In the event of resignation or discharge of any member as described in this section 18-117, any contributions theretofore made bythe city relating to such member, with accruals thereon, which have not vested in accordance with the provisions of this section 18-117, shall be used to reduce contributions to be made thereafter by the city and shall not be used to increase the benefits of any member. Section 8. Chapter 18, Article 11, Division 4 shall hereby be amended to create CODING: Words in s~!~4hrough type are deletion from existing law; Words in underscored type are additions. Page 10 of 13 \\Ctt~MAIN~SHP. X)ATA\CA\O [~3DXPen sioff~Amend men~ to General Em-o's Pension Plan 121400.doc E\SHRDATA~CA\OP Rev. l/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 a new Section 18-127, entitled "Deferred Retirement Option Plan," provided as ~llows: Sec. 18-127 Deferred Retirement Option Plan (a) A deferred retirement option plan ("DROP") is hereby created. (b) Eligibility to participate in the DROP is based upon eligibility for normal service retirement in the Plan. (c) Participation in the DROP must be exercised within the first thirty (30) years of employment; provided, however, that participation in the DROP, when combined with participation in the retirement plan as an active member may not exceed thirty-five (35) years. The maximum period of participation in the DROP is five (5) years. An employee's election to participate in the DROP plan shall be irrevocable and shall be made by executing a resignation notice on a form prescribed by the City. (d) Upon exercising the right to participate in the DROP, an employee's creditable service, accrued benefits and compensation calculation shall be frozen and shall utilize the average of the five (5) highest consecutive of the ten (10) years immediately preceding participation in the DROP as the compensation basis. Accumulated, unused sick and vacation leave shall be included in the compensation calculation; provided, however, that a minimum balance of 120 hours of sick leave and 120 hours of vacation leave shall be maintained by the employee and excluded fi:om this calculation. The retained leave balance, including any additions, shall be distributed at the conclusion of DROP participation and separation fi:om service. (e) Payment shall be made into the employee's DROP account as if the employee had terminated employment in the City in an mount determined by the employee's selection of the payment Option. (f) An employee's aCcount in the DROP program shall earn interest in one (1) of three (3) ways. The selection of the earnings program CODING: Words in s~k~tlmmgh type are deletion from existing law; Words in underscored type are additions. Page 11 of 13 \\CH~MAIN\StL/~DATAkCA',,ORD~ension\Amendment to THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 shallbei~evoc~leand ~lbe madepdor~ the firstdeposRintheDROP account. The options are: (1) Gain or lose interest at the same rate as the Plan; or (2) At an annual fixed rate of seven percent (7%); or (3) In a self-directed account utilizing mutual funds selected by the Board. (g) An employee shall terminate service with the City at the conclusion of five (5) years in the DROP. (h) All interest shall be credited to the employee's DROP account on the last day of the month in which the member separates from service. In the event that a member dies while in the DROP, interest shall be prorated to the last business day of the month preceding the death of the member. (i) Upon termination with the City, an employee may receive payment within forty five (45) days of the member requesting payment or may defer payment until a time not later than the latest date authorized by Section 401(a)(9) of the Internal Revenue Code at the option of the member. (j) Payments from the DROP may be received as a lump sum installment payment or annuity, provided, however, that at all times, the DROP shall be subject to the provisions of the Internal Revenue Code. (k) No payment may be made from the DROP until the employee actually separates from service with the City. (1) If an employee shall die during participation in the DROP, a survivor benefit shall be payable in accordance with the form of benefit chosen at the time of entry into the DROP. CODING: Words in ~ type are deletion from existing law; Words in underscored type are additions. Page 12 of 13 \\C H~MAIN%SHRDATA\CA\ORD\P ensionX~kmendment to General Emp's Pension Plan 121400.docJ:~HPJ3ATA}~.A\OP.D~,P~n,q~c~)~'\mcn~mcnt tc £~nm'al Em~'g P~s!~: P~an 121 ~09x~c Rev. 1/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. O 00-75 (m) Upon commencement of participation in the DROP, the member shall no longer be eligible for disability retirement from the pension plan. If a member becomes disabled during the DROP period, the member shall be treated as if (s)he retried on the day prior to the date of disability. Section 9. The City Commission of the City of Boynton Beach hereby grants a one-time oppommity to participate in the DROP to those members of the General Employees Pension Plan who have already exceeded the eligibility date for the DROP upon the effective date of this ordinance. A member who elects to take advantage of this limited opportunity shall enroll in the DROP in accordance with the terms and provisions of the Plan within forty-five (45) calendar days of the effective date of this ordinance and may participate in the DROP for a maximum of five (5) years. Section 10. It is the intention of the City Commission of the City of Boynton Beach that the provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the City Of Boynton Beach, Florida. The Sections of this ordinance may be renumbered, re-lettered and the word "Ordinance" may be changed to "Section", "Article" or such other word or phrase in order to accomplish such intention. Section 11. All Ordinances or parts of Ordinances, Resolutions or parts of Resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict. CODING: Words in s~4ka-fi,a, ough type are deletion from existing law; Words in underscored type are additions. Page 13 of 13 \\CHXMAINXS ttP4)ATA\CA',,ORD~Pension\Amendment m General Errrp's Pension Plan l 21400.docJ:\SHRDATA},C)J£DP~,Pm~icnX~mc'n, .dmcnt tc r3~-2 Emp's Pcng!on P!~ 12 ! ~,99.doc Rev. 1/3/01 THIS PAGE HAS BEEN AMENDED TO CORRECT A SCRIVENER'S ERROR AND IS ATTACHED TO THE ORIGINAL ORDINANCE NO. 0 00-75 Section 12. Ifany clause, section, or other part or application of this Ordinance shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part or application shall be considered as eliminated and so not effecting the validity of the remaining portions or applications remaining in full force and effect. Section 13. occurred: This Ordinance shall become effective when the following have (a) the City Commission has received and has accepted a report establishing the actuarial soundness of these amendments; and (b) when a collective bargaining agreement ratifying the foregoing changes to pension benefits has been ratified by the City Commission and the General Employees' Pension Board of Trustees, or their successor organization. Upon satisfaction of all of the above requirements, then in that event, the terms and provisions of this Ordinance shall become effective. FIRST READING this lq day of '~)~_,~r~/D~t" ,2000. SECOND, FINAL READING and PASSAGE this ~ day of ,,Jo_m_ Ltm_t'7 , 2001. CITY OF BOYNTON BEACH, FLORIDA CODING: Words in slaqka4l,,m,agh type are deletion from existing law; Words in underscored type are additions. Page 14 Of 13 \\CHhMAINAS HRDATA\CA\ORD\P ensionXekmendment to General Emp's Pension Planl21400 docZ:\SHRDATYY.f.'.Ax,OP. PD~en~jic,m~3~m~nament t~ Genre'a! ~;mp ~. ension Plan121400.d0c Rev. 1/3/01 THIS PAGE HAS BEEN AMENDED AND IS ATTACHED TO THE ATTEST: CLERK TO CORRECT A SCRIVENER' S ERROR lVrayor ~ Vice Mayor CODING: Words in ~ type are deletion from existing law; Words in underscored type are additions. Page 15 of 13 \\CHXaMAIN1S t. tRDATA\C.~\ORD~ension\Amendment to General Emp's Pension Ptan 121400 doc~''~ur>r~ A m'~ ~r' A~nr'r~xr'~ ^~'~ .... . ,~ ,~ ~,~ -~^~, r,~.~ ~nc~ Rev. 1/3/01