07-028
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1 ORDINANCE NO. 07- O.aB
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3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA,
4 AMENDING ARTICLE III, OF CHAPTER 18 OF THE BOYNTON
5 BEACH CODE OF ORDINANCES, ENTITLED "PENSIONS FOR
6 POLICE OFFICERS;" AMENDING SECTION 18-172 PROVIDING FOR
7 BUYBACK OF SERVICE;" PROVIDING FOR CODIFICATION;
8 PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY;
9 AND, PROVIDING FOR AN EFFECTIVE DATE HEREOF.
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11 WHEREAS, the State Legislature of the State of Florida has enacted numerous
12 amendments to Chapter 185, Florida Statutes, known as the Municipal Police Officers'
13 Retirement Trust Funds; and
14 WHEREAS, the City Commission of the City of Boynton Beach, Florida, desires to
15 revise its Police Officers' Pension Ordinance in order to comply with State Statutes;
16 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
17 THE CITY OF BOYNTON BEACH, FLORIDA:
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Section 1.
The foregoing "WHEREAS" clauses are hereby certified as being true
19 and correct and are incorporated herein by this reference
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Section 2.
Section 18-167 of Article ill of Chapter 18 ofthe Boynton Beach Code of
21 Ordinances is hereby amended as follows:
22 Section 18-167. Powers of the Board of Trustees.
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A.
The Board of Trustees may:
1.
Invest and reinvest the assets of the Boynton Beach Police Officers'
Pension Fund in annuity and life insurance contracts of life insurance
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companies in amounts sufficient to provide, in whole or in part, the
benefits to which all the participants in the Pension Fund shall be
entitled under the provisions of this Article and pay the initial and
subsequent premiums thereon from the integral part of the Fund. If
current state contributions are adequate to fund minimum requirements
of Chapter 185, Florida Statutes additional State funds may be used to
provide benefits that exceed requirements of Chapter 185.
Invest and reinvest the assets of the retirement trust fund in:
a. Time or savings accounts of a national bank, a state bank insured
by the Bank Insurance Fund, or a savings and loan association
insured by the Savings Association Insurance Fund which is
administered by the Federal Deposit Insurance Corporation or a
state or federal chartered credit union whose share accounts are
insured by the National Credit Union Share Insurance Fund.
b. The aggregate investment of Fund assets in:
(1) Obligations of the United States or obligations
guaranteed as to principal and interest by the
Government of the United States;
(2) Bonds issued by the State of Israel;
(3) Bonds or other evidences of indebtedness issued or
Words in strike thrOligh type are deletions from existing law;
Words in underscored type are additions.
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guaranteed by a corporation organized under the laws of
the United States, any state or organized territory of the
United States, or the District of Columbia. However, the
average rating of such investments in bonds shall be no
lower than AA-;
(4)
County bonds containing a pledge of the full faith and
credit of the county involved, bonds of the division of
bond finances of the department of general services, or of
any other state agency, which have been approved as to
legal and fiscal sufficiency by the state board of
administration; and
(5)
Obligations of any municipal authority issued pursuant to
the laws ofthis state; provided, however, that for each of
the five (5) years next preceding the date of investment
the income of such authority available for fixed-charges
shall have been not less than 1.5 times its average annual
fixed-charges requirement over the life of its obligations;
shall not at cost exceed sixty five percent (65%) of the
fund's assets; nor shall more than ten percent (10~<.} of
the fund's assets be invested in the bonds or other
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certificates of indebtedness of anyone (1) issuing
company; not shall the aggregate of such inycstment in
anyone (1) issuing company excced three perccnt (3%)
of the outstanding bonds or other certificates of
indebtedness of that company.
c. The aggregate investment of Fund assets in the common stock or
capital stock issued by a corporation organized under the laws of
the United States, any state, or organized territory ofthe United
States or the District of Columbia shall not, at market, exceed
sixty-five percent (65%) ofthe fund's assets; nor shall more than
five percent (5%) of the fund's assets be invested in common
stock or capital stock of anyone (1) issuing company; nor shall
the aggregate of such investment in anyone (1) issuing company
exceed five tflree.-percent (~J%) of the outstanding common or
capital stock ofthat company. The Board of Trustees may invest
in foreign securities up to the limits permitted by Florida Statutes
S 185.06(b).
d. Real Estate, except that the aggregate investment of Fund assets
in Real Estate may not exceed ten percent (10%) of assets.
Issue drafts upon the Boynton Beach Police Officers Pension Fund
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pursuant to this Article and rules and regulations prescribed by the Board
of Trustees. All such drafts shall be consecutively numbered and shall
be signed by the Chairman and Secretary of the Board or their designee
and shall state upon their faces the purpose for which the drafts are
drawn. The City Treasurer shall retain such drafts when paid, as
permanent vouchers for disbursements made, and no money shall be
otherwise drawn from the Fund.
4.
Convert into cash any securities of the Fund as it may deem advisable,
having regard for the cash requirements of the fund.
5.
Keep complete record of all receipts and disbursements and of the
Boards, acts and proceedings.
6.
The Board of Trustees may cause any investment in securities held by it
to be registered in or transferred into its name as trustee or into the name
of such nominee as it may direct but the books and records shall at all
times show that all investments are part of the Fund.
B.
The sole and exclusive administration of, and the responsibilities for, the proper
operation of the retirement fund and for making effective the provisions ofthis
chapter are vested in the Board of Trustees.
c.
The Board of Trustees shall retain a professionally qualified independent
consultant who shall evaluate the performance of any existing professional
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money manager and shall make recommendations to the Board of Trustees
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regarding the selection of money managers, if necessary. The term
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"professionally qualified independent consultant" shall have the meaning as set
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forth in Florida Statutes SI85.06(5)(b), Florida Statutes.
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D.
The Board of Trustees may employ such independent professional, technical or
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other advisers as may be needed to fulfill the Board's responsibilities under this
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Pension Plan. These professionals include but are not limited to: legal counsel,
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actuary and certified public accountants. Ifthe Board chooses to use the City's
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legal counsel, actuary or other professional, technical or other advisers, it must
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do so only under terms and conditions acceptable to the Board.
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Section 3.
Paragraph E of Section 18-169 of Article ill of Chapter 18 ofthe Boynton
12 Beach Code of Ordinances is hereby amended as follows:
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14 Section 18-169. Requirements for Retirement-Benefit Amounts.
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E.
Separation from Service.
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1.
Effective for terminations on and after October 1, 2002, if a member
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leaves the service of the City before accumulating aggregate time of 5
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years toward retirement and before being eligible to retire, such member
shall be entitled to a refund of all of his or her contributions made to the
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Section 4.
Fund, without interest.
2.
If any member who had been in the service of the City for at least ten
(10) years elects to leave his or her accrued contributions in the Fund,
such police officer upon attaining age fifty (50) years or more (without
reaching what would have been twenty years of service had he not
terminated his employment) may receive an early retirement benefit at
the actuarial equivalent of the amount of such retirement income
otherwise payable to him or her at early retirement or upon attaining
what would have been normal retirement had he not terminated his
employment, such police officer may receive his or her accrued normal
retirement benefit.
3.
Effective for terminations after October 1,2002, if any member who had
been in the service ofthe City for at least five (5) years elects to leave his
or her accrued contributions in the Fund, such police officer, upon
attaining what would have been the earliest normal retirement had he not
terminated his or her employment, may receive the accrued normal
retirement benefit. The member may receive the benefits payable in the
normal form or any option available under Section 18-170.
Section 18-172 of Article ill of Chapter 18 ofthe Boynton Beach Code of
20 Ordinances is hereby amended as follows:
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1 Section 18-172. Buy Back of Service
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A.
Re-employment.
When any former police officer ofthe city is re-employed,
he will become a member of the plan upon re-employment as a full time
permanent police officer. When a former police officer of the City is re-
employed and had withdrawn contributions previously made to the plan, he may
reinstate his previous service provided upon satisfaction of each ofthe follov;ing
conditions:
1.
The break in city cmployment is not more than sixty (60) months; and
2.
The plan is paid the total amount previously withdrawn (consisting of
accumulated member contributions plus any interest previously paid by
the plan on those contributions) within six months of re-emplovrnent.
This total amount is brought forward with interest for the total number of
months from the date of withdrawal to the date of repayment, calculated
to the nearest month. This calculated amount equals the amount to be
repaid to the Plan in a lump sum. The interest to bring forward the total
amount will be at the equivalent compound monthly rate derived from
the earning rate assumed by the actuary in the most recent actuarial
valuation submitted to the Division of Retirement pursuant to Chapter
112, Part VII, Florida Statutes.
B.
Prior police officer service.
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Unless otherwise prohibited by law, the years or fractional parts of years that a
police officer previously served as a police officer with the city during a period
of employment and f-or which accumulated contributions v;ere withdravm from
the fund, or the years and fractional parts of years that a police officer scrved as a
police officer for this or any other municipal, county, or state police department
or service in the military shall be added to the years of credited service provided
that:
1.
The police officer contributes to the Fund the sum that would have been
contributed, based on the police officer's salary and the employee
contribution rate in effect at the time that the credited service is
requested, had the police officer been a member of this system for the
years or fractional parts of years for which the credit is requested plus
amount actuarially determined such that the crediting of service does not
result in any cost to the Fund plus payment of costs for all professional
services rendered to the Board in connection with the purchase of years
of credited service.
2.
Payment by the police officer of the requirement amount may be made
within six (6) months of the request for credit and in one (1) lump sum
payment, or the police officer can buy back this time over a period equal
to the length of time being purchased or five (5) years, whichever is
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greater, at an interest rate which is equal to the Fund's actuarial
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assumption. A police officer may request to purchase a maximum of
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five (5) years of service. No credit shall be given for any service until all
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years of service which are to be repurchased, have been repurchased.
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3.
The credit purchased under this section shall count for benefit
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computation purposes, but not for vesting.
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4.
In no event, however, may credited service be purchased pursuant to this
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section for prior service with any other municipal, county or state police
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department, if such prior service forms or will form the basis of a
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retirement benefit or pension from another retirement system or plan.
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This sub-paragraph does not apply to military service.
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Section 5.
It is the intention of the City Commission of the City of Boynton Beach
13 that the provisions ofthis Ordinance shall become and be made a part ofthe Code of Ordinances
14 ofthe City of Boynton Beach, Florida. The Sections ofthis ordinance may be renumbered, re-
15 lettered and the word "Ordinance" may be changed to "Section," "Article" or such other word or
16 phrase in order to accomplish such intention.
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Section 6. All Ordinances or parts of Ordinances, Resolutions or parts of Resolutions
18 in conflict herewith be and the same are hereby repealed to the extent of such conflict.
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Section 7.
If any clause, section, or other part or application ofthis Ordinance shall
20 be held by any court of competent jurisdiction to be unconstitutional or invalid, such
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unconstitutional or invalid part or application shall be considered as eliminated and so not
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effecting the validity ofthe remaining portions or applications remaining in full force and effect.
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Section 8. This Ordinance shall become effective upon passage.
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FIRST READING this ~ day of ~em beR, 2007.
SECOND, FINAL READING AND PASSAGE this ~ day of OC- To 8 c:: ~
2007.
CITY OF BOYNTON BEACH, FLORIDA
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ATTEST:
CODING:
Words in strike through type are deletions from existing law;
Words in underscored type are additions.
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