09-021
TT T
1
2 ORDINANCE No. 09- 06\.1
3
4 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA,
5 AMENDING ARTICLE III, OF CHAPTER 18 OF THE BOYNTON
6 BEACH CODE OF ORDINANCES, ENTITLED "PENSIONS FOR
7 POLICE OFFICERS;" AMENDING SECTION 18-167 REVISING
8 SUBSECTION (a)(2) THEREOF PROVIDING FOR INVESTMENTS
9 TO EXPEND THE PERMISSIBLE INVESTMENTS PROVIDING FOR
10 CODIFICATION; PROVIDING FOR CONFLICT; PROVIDING FOR
11 SEVERABILITY; AND, PROVIDING FOR AN EFFECTIVE DATE
12 HEREOF.
13
14 WHEREAS, the Board of Trustees of the Municipal Police Officers Pension Fund
15 recommends adoption of these provisions to permit greater diversification of the investment
16 of the Pension Plan under the Florida law; and
17 WHEREAS, the City Commission of the City of Boynton Beach, Florida, desires to
18 so amend its Police Officers' Pension Ordinance;
19 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
20 THE CITY OF BOYNTON BEACH, FLORIDA:
21 Section 1. The foregoing "WHEREAS" clauses are hereby certified as being true
22 and correct and are incorporated herein by this reference.
23 Section 2. Subsection (a) of Section 18-167 of Article III of Chapter 18 of the
24 Boynton Beach Code of Ordinances is hereby amended as follows:
25 Sec. 18-167. Powers of the Board of Trustees.
26 (a) The Board of Trustees may.;
27 (1) Invest and reinvest the assets of the Boynton Beach Police Officers Pension
28 Fund in annuity and life insurance contracts of life insurance companies in amounts sufficient
CODING: Words in strike through type are deletions from existing law;
Words in underscored type are additions.
Page 1
II J
1 to provide, in whole or in part, the benefits to which all the participants in the Pension Fund
2 shall be entitled under the provisions of this article and pay the initial and subsequent
3 premiums thereon from the integral part of the fund. If current state contributions are adequate
4 to fund minimum requirements of F.S. Chapter 185, additional state funds may be used to
5 provide benefits that exceed requirements of F.S. Chapter 185.
6 (2) The Board shall have the power and authority to invest and reinvest the monies
7 of the Fund and to hold, purchase, sell, assign, transfer, and dispose of any securities and
8 investments held in the Fund, including the power and authority to employ counseling or
9 investment management services. The aim of the investment policies shall be to preserve the
10 integrity and security of Fund principal, to maintain a balanced investment portfolio, to
11 maintain and enhance the value of the Fund principal, and to secure the maximum total return
12 on investments that is consonant with safety of principal, provided that such investments and
13 re-investments shall be limited only by the investments permitted by the investment policy
14 guidelines adopted by the Board in accordance with Florida law, notwithstanding the
15 provisions of ~ 18-221 of the Code. Further, notwithstanding the foregoing, investments in
16 foreign investments are limited in accordance with 185.06(1 )(b )4. The Board must discharge
17 these duties with respect to the plan solely in the interest of the participants and beneficiaries
18 and (i) for the exclusive purpose of providing benefits to participants and their beneficiaries
19 and defraying reasonable expenses of administering the plan: (ii) with the care, skill,
20 prudence, and diligence under the circumstances then prevailing that a prudent person acting
21 in a like capacity and familiar with such matters would use in the conduct of an enterprise of a
22 like character and with like aims; and (iii) by diversifying the investments of the plan so as to
CODING: Words in strike through type are deletions from existing law;
Words in underscored type are additions.
S:\CA\Ordinances\Pension\Police Pension - amend investment policy - final c1ean.doc
Page 2
II ,
1 minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do
2 so.
3
4 (2) In'lest and reinvest the assets of the retirement trust fund in:
5 a. Time or savings accounts of a national bank, a state baRk insured
6 by the Bank Insurance Fund, or a savings and loaf!. association insured by the Sayings
7 j\ssociation Insurance Fund which is administered by the Federal Deposit Insurance
8 Corporation or a state or federal chartered credit union ,,,,,hose share accounts are insured by
9 the National Credit Union Share Insurance Fund.
10 b. The aggregate investment of Fund assets in:
11 1. Obligations ofthe United States or obligations guaranteed as to
12 principal and interest by the Govenrment of the United States;
13 2. Bonds issued by the State of Israel;
14 3. Bonds or other evidences of indebtedness issued or
15 guaranteed by a corporation organized under the laws of
16 the United States, any state or organized territory of the
17 United States, or the District of Columbia. Hov/ever, the
18 average credit ruting of such in'.'estments in bonds shall
19 be no 10'NeT than AA;
20 1. County bonds containing a pledge of the full faith and
21 credit of the county inyolyed, bonds of the di'.'ision of
22 bond finances of the department of general services, or
CODING: Words in striko through type are deletions from existing law;
Words in underscored type are additions.
Page 3
II I
1 of any other state agency, which have been approved as
2 to legal and fiscal sufficiency by the state board of
3 administration; and
4 5. Obligations of any municipal authority issued pursuant
5 to the laws of this state; provided, no\veYer, that for each
6 of the five (5) years next preceding the date of
7 investment the income of such authority available for
8 fixed charges shall have been not less than 1.5 times its
9 average ar.nual fixed charges requirement over the life
10 of its obligations.
11 c. The aggregate investmeflt of Fund assets in the common stock or capital
12 stock issued by a corporation organized under the laws of the United States, any state, or
13 organized territory of the United States or the District of Columbia shall not, at market,
14 exceed sixty five percent (65%) of the fund's assets; nor shall more than fiye percent (5%) of
15 the fund's assets be invested in common stock or capital stock of anyone (1) issuing
16 company; nor shall the aggregate of such investment in anyone (1) issuing company exceed
17 five percent (5%) of the outstanding common or capital stock of that company. The Board of
18 Trustees may invest in foreign securities up to the limits permitted by F.8. S 185.06(b).
19 d. Real estate, except that the aggregate in'/estment of Fund assets in real estate
20 may not exceed t-en percent (10%) of assets.
21
22 Section 3. It is the intention of the City Commission of the City of Boynton Beach
CODING: Words in strike through type are deletions from existing law;
Words in underscored type are additions.
S:\CA\Ordinances\Pension\Police Pension - amend investment policy - final c1ean.doc
Page 4
II ,
1 that the provisions of this Ordinance shall become and be made a part of the Code of
2 Ordinances of the City of Boynton Beach, Florida. The Sections of this ordinance may be
3 renumbered, re-Iettered and the word "Ordinance" may be changed to "Section," "Article" or
4 such other word or phrase in order to accomplish such intention.
5 Section 4. All Ordinances or parts of Ordinances, Resolutions or parts of Resolutions
6 in conflict herewith be and the same are hereby repealed to the extent of such conflict.
7 Section 5. If any clause, section, or other part or application of this Ordinance
8 shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such
9 unconstitutional or invalid part or application shall be considered as eliminated and so not
10 effecting the validity of the remaining portions or applications remaining in full force and
11 effect.
12 Section 6. This Ordinance shall become effective when the following have
13 occurred:
14 (a) the City Commission has received and has accepted a report establishing the
15 actuarial soundness of these amendments;
16 (b) when the foregoing changes to the pension plan investment policy benefits
17 have been accepted by the collective bargaining unites) representing the Police Officer
18 Employees, or their successor, and documentation has been received evidencing no objection
19 thereto; and
20 (c) when the amendments have been sent to the State of Florida Division of
21 Retirement.
22 Upon satisfaction of all of the above requirements, then in that event, the terms and
CODING: Words in strike through type are deletions from existing law;
Words in underscored type are additions.
Page 5
I
I
TT I
1 provisions of this Ordinance shall become effective.
-+h A-pR."t '-
2 FIRST READING THIS 1 DA Y OF ,2009.
sr "
3 SECOND, FINAL READING and PASSAGE THIS 4L DA Y OF -.&pn I ,2009.
4
5 CITY OF BOYNTON BEACH, FLORIDA
6
7
8
9 .-"
10
11
12
13
14
15
16
17 Vice ~yor "/l W oodro .
18 7&4~.A'"
19 ~-
20 Commissioner - Marlene Ross
21
22
23 ATTEST:
24
25
26 Yn. p~
27
28
29
30
31 ... '.#_"'.--
32
33
34
ODING: Words in strike through type are deletions from existing law;
Words in underscored type are additions.
\CA \Ordinances\Pension\Police Pension - amend investment polley - final clean doc
Page 6