02-065ORDINANCE 02-065
AN ORDINANCE OF THE CITY OF BOYNTON BEACH,
FLORIDA, AMENDING ARTICLE III PENSIONS FOR
POLICE OFFICERS, OF CHAPTER 18 OF THE BOYNTON
BEACH CODE OF ORDINANCES; ALLOWING
PARTICIPANTS IN THE DROP TO CHANGE THEIR
METHOD FOR THE CREDITING OF INVESTMENT
EARNINGS; PROVIDING CONFLICTS, SEVERABILITY,
CODIFICATION AND AN EFFECTIVE DATE.
WHEREAS, the City of Boynton Beach Municipal Police Officers' Retirement
Trust Fund ("Fund") Board of Trustees ("Trustees"), desire to offer DROP Participants
an opportunity to select their method for the crediting of earnings; and
WHEREAS, the Board of Trustees of the Fund has determined that it is in the best
interest of the Participants and Beneficiaries of the Fund to offer an opportunity to select
their method for the crediting of earnings; and
WHEREAS, the Trustees desire to add such a provision; and
WHEREAS, the City Council of the City of Boynton Beach, Florida, desires to
implement this revision;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF BOYNTON BEACH, FLORIDA:
Section 1. The foregoing Whereas clauses are true and correct and
incorporated herein by this reference.
Section 2. Subsection G of section 18-175 of Article III of Chapter 18 of the
Boynton Beach Code of Ordinances is hereby amended as follows:
Section 18-175. Deferred retirement option plan.
G. Effective January 1, 2003, DROP participants have the option to select
optional methods to credit investment earnings to their account. The
method may be changed each year effective January_ 1, however, the
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method must be elected prior to January_ 1 on a form provided by the
Board of Trustees. ^ .... ~,--'~' ........ * ;- *~-~ r.,r~cm ....... ~.
~ ....... * Th th d ~
~,~ .......... e me o s are:
1. Gains or losses at the same interest rate emed by the Pension
PI~; or
2.A guar~teed rate of 7.0%.
3. A percentage of the DROP account will be credited with interest
gains or losses at the same rate earned by the pension pl~ ~d the
remaining percentage will be credited with earnings at a ~anteed rate of
7.0%. The actual percentage shall be selected by the member on a fo~
provided by the Bo~d of Trustees. The total of the two percentages must
equal 100%.
Employee's DROP accounts will be assessed ~ administrative fee that is
based upon the ratio that the Employee's DROP account bears to the Fund
as a whole.
Section 3. Subsection J of section 18-175 of ~icle III of Chapter 18 of the
Boston Beach Code of Ordin~ces is hereby amended as follows:
Section 18-175. Defe~ed retirement option plan.
J. Upon te~ination of emplo~ent, p~icipants in the DROP will receive
the balance of the DROP account in accord~ce with the following roles:
1. Members may elect to begin to receive pa~ent upon te~ination
of emplo~ent or defer pa~ent of DROP until the latest day as
provided under sub-subpara~aph c.
2.Pa~ents s~all may be made in ~ the following ways:
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o
o
Section 4.
)ealed.
Section 5.
a. Lump sum - the entire account balance will be paid to the
retirant upon approval of the Board of Trustees.
b. Installments - the account balance will be paid out to the
retirant in five (5) equal annual payments paid over five (5)
years, the first payment to be made upon approval of the
Board of Trustees.
c. Monthly installments - the account balance will be paid out
to the retirant on a monthly basis until the account balance
is paid out based on actuarial tables provided by the
actuary.
Any form of payment selected by a police officer must
comply with the minimum distribution requirements of the
IRC 401(A)(9), and is subject to the requirements of
subsection 18-174F e.g., payments must commence by age
70½.
The beneficiary of the DROP participant who dies before
payments from DROP begin shall have the same right to select
payment options as the participant in accordance with this
subsection. A DROP participant may designate a beneficiary to
receive the DROP balance in the event of the participant's death
prior to pay out of the full DROP balance.
Any part of the Boynton Beach Code in conflict herewith shall be
Should any section or provision of this Ordinance or portion
hereof, any paragraph, any 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. This Ordinance shall be effective as stated herein.
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FIRST READING this 17th day of December, 2002.
SECOND, FINAL READING and PASSAGE this
__day
,2003.
FLORIDA
;T:
CITY OF BOYNTON BEACH,
Vice Mayor
Commissioner
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