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ORDINANCE 04- 05 ~
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 AUTHORIZE AN
ANNUAL CHANGE IN THE INVESTMENT OPTION
SELECTED BY A DROP PARTICIPANT IN THE
GENERAL EMPLOYEES' PENSION PLAN BY
SPECIFICALLY AMENDING {}18-127 OF THE CITY'S
CODE OF ORDINANCES; FURTHER AMENDING {}18-
127 TO PROVIDE AN ADDITIONAL ALTERNATIVE
INVESTMENT OPTION FOR DROP FUNDS; PROVIDING
FOR CODIFICATION; PROVIDING FOR CONFLICT;
PROVIDING FOR SEVERABILITY;
AN EFFECTIVE DATE.
AND PROVIDING
WHEREAS, the Board of Trustees ("Board") for the General Employees'
Pension Plan (the "Plan") of the City of Boynton Beach recommends amending the
provisions of the Deferred Retirement Option Plan to afford a DROP participant the
opportunity to change investment options on an annual basis; 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
true and correct and are incorporated herein by this reference.
CODING:
Words in stdge-sh~va~ type are deletion from existing law;
Words in underscored type are additions.
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Section2. Chapter 18, Article II, Division 4, {}18-127 of the Code of
Ordinances of the City of Boynton Beach, Florida, entitled "Deferred Retirement
Option Plan," is hereby amended to read as follows:
§ 18-127 Deferred Retirement Option Plan.
(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
shall be ~,..., ....... .,,~,.,.~'~ ~..,.,~"'" o..,~..~u"u ~.~w made prior to the first deposit in the
DROP account and may be modified once each year by the participant
during their participation in the DROP. The investment method may be
changed each year effective January lst, however, the method must be
elected prior to January 1st on a form provided by the Board of Trustees.
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
o~.,..,..~,..°~'~*~' ,...,,..~ ,~.~,.,~ ~,..~,~°"~-a A percentage of the DROP account
will be credited with interest gains or losses at the same rate
earned by the pension plan and the remaining percentage
will be credited with earnings at a guaranteed rate of seven
percent (7%). The actual percentage shall be selected by the
member on a form provided by the Board of Trustees. The
total of the two (2) percentages must equal 100%.
The participant's DROP accounts will be assessed an administrative fee
that is based upon the ratio that the participant's DROP account bears to
the Funs as a whole.
Section 3. 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
CODING:
Words in s~ihe-t4m~gh type are deletion from existing law;
Words in underscored type are additions.
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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 4. 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.
Section 5. If any 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 6. This Ordinance shall
occurred:
a) a collective bargaining
b)
c)
become effective when the following has
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;
the City Commission has received and has accepted a report establishing
the actuarial soundness of these amendments; and
a copy of this ordinance has been forwarded to the State of Florida
Division of Retirement.
Upon satisfaction of this requirement, then in that event, the terms and provisions
of this Ordinance shall become effective.
FIRST READING this __ day of
CODING:
,2004.
Words in ~ type are deletion from existing law;
Words in underscored type are additions.
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SE.,COND, FINAL READING and
,2004.
CITY
~ FLORIDA
ATTEST:
(CORPORATE SEAL)
Vice
PASSAGE this ~3 day of
OF BOYNTON BEACH,
CODING:
Words in ~a'4k~0mmgh type are deletion from existing law;
Words in underscored type are additions.
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