10-006
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1 ORDINANCE 10-~
2
3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA,
4 AMENDING ARTICLE II, OF CHAPTER 18 OF THE BOYNTON
5 BEACH CODE OF ORDINANCES, ENTITLED "EMPLOYEES'
6 PENSION PLAN;" AMENDING SECTION 18-55 DEFINITIONS BY
7 AMENDING THE DEFINITION OF ANNUAL EARNINGS TO INCLUDE
8 DIFFERENTIAL WAGES; AMENDING THE DEFINITION OF
9 EMPLOYEE TO CLARIFY THAT ONL Y FULL TIME EMPLOYEES
10 ARE ELIGIBLE TO PARTICIPATE; DELETING SECTION 18-76
11 POLICEMEN; AMENDING SECTION 18-77 CREDITABLE SERVICE
12 TO INCLUDE MILITARY AND RELATED SERVICE; AMENDING
13 SECTION 18-81 MILITARY AND RELATED SERVICE TO INCLUDE
14 CREDITED SERVICE FOR MEMBERS WHO DIE OR BECOME
15 DISABLED WHILE ON ACTIVE DUTY MILITARY SERVICE;
16 AMENDING SECTION 18-95 DEDUCT CONTRIBUTIONS FROM PA Y
17 TO REMOVE OBSOLETE LANGUAGE; AMENDING SECTION 18-
18 113 DELA YED RETIREMENT TO REMOVE OBSOLETE
19 LANGUAGE; AMENDING SECTION 18-126 DISABILITY
20 RETIREMENT BENEFITS TO ALLOW FOR BENEFITS FOR
21 MEMBER WHO DIE OR BECOME DISABLED WHILE ON ACTIVE
22 DUTY MILITARY SERVICE; AMENDING SECTION 18-128 ELECTIVE
23 BENEFITS TO END FUTURE ENROLLMENTS IN THE ELECTIVE
24 BENEFITS; AMENDING SECTION 18-135 BOARD OF TRUSTEES
25 TO INCREASE TRUSTEE TERMS TO FOUR YEARS; AMENDING
26 SECTION 18-145 CITY OF BOYNTON BEACH INVESTMENT
27 POLICY FOR GENERAL EMPLOYEES' PENSION FUND TO
28 EXPAND PERMISSIBLE INVESTMENTS; DELETING SECTION 18-
29 145.1 CITY OF BOYNTON BEACH GENERAL EMPLOYEES
30 PENSION FUND - STOCKS, BONDS, MUTUAL FUNDS, ETC. AS
31 REDUNDANT; PROVIDING FOR CODIFICATION; PROVIDING FOR
32 CONFLICT; PROVIDING FOR SEVERABILITY; AND, PROVIDING
33 FOR AN EFFECTIVE DATE HEREOF.
34
35 WHEREAS, the Board of Trustees of the Employees' Pension Plan of the City
36 f Boynton Beach, Florida recommends amendment to the Pension Plan as provided
37 erein; and
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1 I WHEREAS, the City Commission of the City of Boynton Beach, Florida,
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2 esires to so amend the Employees' Pension Plan of the City of Boynton Beach,
3 lorida;
4 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
5 HE CITY OF BOYNTON BEACH, FLORIDA:
6 Section 1. The foregoing "WHEREAS" clauses are hereby certified as being
7 ue and correct and are incorporated herein by this reference.
8 Section 2. The definitions of Annual Earnings and Employee of Section 18-
9 5 of Article II of Chapter 18 of the Boynton Beach Code of Ordinances is hereby
10 mended as follows:
11 ec. 18-55. Definitions.
12 The following words and phrases, as used in this article, unless a different
13 eaning is plainly required by the context, shall have the following meanings, and
14 he same and similar terms when used in connection with any civil service system or
15 ny other ordinance of the city shall not necessarily apply to the members of the
16 etirement system hereby created except when specifically adopted:
17 * * *
18 Annual earnings. Gross earnings received by the employee as compensation
19 or services to the city, including overtime pay. Bonuses shall be excluded. Flexible
20 enefits shall be excluded. Beainnina with Annual earninas after December 31,
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4 Employee. All full-time persons employed by the city and so classified under
5 ules and regulations and personnel records of the city, including "probational" or
6 ermanent employees. Any appointed officer shall only be qualified under this plan
7 nder one office and that office being the one from which he receives the largest
8 nnual salary, compensation or remuneration. Independent contractors are excluded.
9
10 Section 3. Sec. 18-76 of Article II of Chapter 18 of the Boynton Beach Code
11 f Ordinances is hereby deleted in its entirety as follows:
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20 Section 4. Sec. 18-77 of Article II of Chapter 18 of the Boynton Beach Code
21 f Ordinances is hereby amended as follows:
22
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1 ec. 18-77. Creditable service.
2 Creditable service for the purpose of calculating benefits for general
3 mployees shall consist of the member's service rendered by the employee since he
4 I st became a member, plus past service, rendered continuously since the
5 mployee's last date of employment as defined in section 18-78 to the date of his
6 eparation from service by reason of death, disability, termination of employment or
7 tirement but not beyond the employee's normal retirement date as described in
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14 Section 5. Sec. 18-81 of Article II of Chapter 18 of the Boynton Beach Code
15 f Ordinances is hereby amended as follows:
16 ec. 18-81. Military and related service.
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1 When any member is inducted or enlists into any of the Armed Forces of the
2 nited States, or enlists in any reserve component, enlists in the United States Coast
3 uard, or in any other reserve component, or enters upon active duty in the Armed
4 orces of the United States, the United States Coast Guard, or the United States
5 ublic Health Service in response to an order or call to active duty, and is
6 ubsequently reemployed by the city as a full-time permanent general city employee
7 nder such circumstances that he thereby becomes entitled to return to work for the
8 ity within the time that reemployment rights are granted to him by law, he shall again
9 ecome a member of the plan and shall be given service credit for the credited
10 ervice he had accumulated before entering military or related service and shall
11 gain accumulate additional credited service commencing with the date of his
12 eemployment by the city. If approved by the board such member may also be
13 ranted service credit for the period of time spent in military or related service.
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22 Section 6. Section 18-95 of Article II of Chapter 18 of the Boynton Beach
23 ode of Ordinances is hereby amended as follows:
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1 ec. 18-95. Deduct contributions from pay.
2 The director of finance shall cause contributions provided for in section 18-94
3 f this article to be deducted from the compensation of each member on each and
4 very payroll for each and every payroll except that members who attain normal
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10 . A member's contribution provided for herein shall be
11 ade notwithstanding that the minimum compensation provided by law for any
12 ember shall be changed thereby. Each member shall be deemed to consent and
13 gree to the deduction made and provided for herein and payment of his
14 ompensation less said deduction shall be full and complete discharge of all claims
15 nd demands whatsoever for the service rendered by said member during the period
16 overed by such payment, except as to the benefits provided by this plan. The
17 irector of finance shall cause the amount to be deducted from the compensation of
18 ach member for each and every payroll as authorized by this article and when
19 educted shall be paid into the fund of the plan and shall be credited to the individual
20 ember from whose compensation said deduction was made.
21 Section 7. Section 18-113 of Article II of Chapter 18 of the Boynton Beach
22 ode of Ordinances is hereby amended as follows:
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2 ec. 18-113. Delayed retirement.
3 Any employee who does not desire to retire on his normal retirement day may
4 elay retirement.
5 Provided, that any employee who reaches seventy (70) years of age \\'ho does
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1 Section 8. Section 18-126( c) of Article II of Chapter 18 of the Boynton
2 each Code of Ordinances is hereby amended as follows:
3 ec. 18-126. Disability retirement benefits.
4 * * *
5 (c) Disability exclusions. No member shall be granted a disability pension
6 upon a showing to the satisfaction of the board:
7 1. That the disability resulted from an intentionally self-inflicted
8 wound, injury or ailment, or
9 2. That the disability resulted from the use of narcotics, drugs or
10 alcoholic beverages. or
11 3. That the disability resulted from a member's participation or
12 involvement in riot, insurrection or unlawful assembly, or
13 4. That the disability resulted from a member's participation or
14 involvement in the commission of a crime or unlawful act, or
15 5. That the disability resulted from injury or disease sustained by
16 the member while serving in any armed forces. This exclusion
17 does not affect members who have become disabled as a
18 result of intervenina militarv service under the federal
19 Heroes Earninas Assistance and Relief Tax Act of 2008 (H.R.
20 6081: P .L. 11 0-245);
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1 Section 9. Section 18-128 of Article II of Chapter 18 of the Boynton Beach
2 ode of Ordinances is hereby amended as follows:
3 ec. 18-128. Elective benefits.
4 (a) Effective uoon the oassaae of this Ordinance. members will no
5 lonaer be able to enroll in Elective benefits. Elective benefits are
6 benefits were offered to the members of this plan and were are
7 voluntary elections, the costs of which are borne entirely by the member
8 through payroll deductions during their employment with the city. Such
9 deductions are taxable dollars at the time the deduction is made.
10 Members who were enrolled in elective benefits as of the oassaae
11 of this Ordinance mav continue to oarticioate in these benefits or
12 elect to cancel oarticioation. 1\ member may voluntarily elect to
13 participate in those elective benefits available in order to supplement
14 and enhance their retirement benefits provided pursuant to this plan.
15 (b) Open enrollment. A member may elect to enroll or cancel an elective
16 benefit only during the open enrollment period as orovided bv the
17 Board of Trustees. The open enrollment period shall occur in
18 September of each year. Once an elective benefit is cancelled, any
19 contributions made will remain in the plan until the member is no longer
20 actively employed. Upon such separation from service, contributions
21 Contributions shall be reimbursed to the member on cancellation of
22 the elective benefit and shall only be refunded for the elective
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1 benefit canceled, except as otherv.'ise provided in this section. No
2 interest earnings will be applicable to the premiums contributed .Q[JQ
3 the refunded amount. The cancellation of such elective benefit is
4 irrevocable and the member may not ro enroll f-or such elective benefit
5 in the future.
6 (c) Costs. The costs for all elective benefits are borne by the member
7 through payroll deductions during employment with the city. The cost
8 for each benefit shall be actuarially determined on an annual basis
9 based upon the premiums to fund the various options selected. Any
10 change in rates associated with the elected benefit options selected is
11 passed on to the participant.
12 (d) In the event of death before retirement of any participant, all premiums
13 paid shall be refunded to the beneficiary. If the employee was eligible
14 for normal retirement and the retirement annuity option had already
15 been selected by the employee, the deceased member's earned
16 pension amount will be actuarially reduced to a joint and survivor form
17 and two-thirds (2/3) of this amount will be paid to the survivor for their
18 lifetime. For the twenty-five (25) year retirement at any age benefit
19 option, the retirement factor used shall be the factor which provides the
20 most benefit to the employee.
21 (e) Elective benefits. There were af6 four elective benefits options
22 available. 1\ member may select as many as they desire, but '.\'ill be
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1 required to pay for each option selected through a payroll deduction. A
2 member may select either the health insuranoe subsidy or tho health
3 insurance subsidy '.'.lith two percent (2%) per year COLI\, but not both.
4 Onoe either of the health insurance subsidy benefit options is selected,
5 the member may not change to the other form of health insuranoe
6 subsidy benefit option. The elective benefit options were available are
7 as follows:
8 f1J Option 1 A - health insurance subsidy.
9 a. The health insurance subsidy will provide a monthly
10 benefit up to $200 per month upon normal retirement. In
11 the event of death prior to retirement, where the member
12 is eligible for normal retirement and the retirement annuity
13 option has been elected by the employee, the $200 per
14 month will be actuarially reduced to a joint and survivor
15 form of benefit and two-thirds (2/3) of this amount will be
16 paid to the survivor for their lifetime.
17 b. The amount to be received for the health insurance
18 subsidy at retirement is based on years of contributions by
19 the employee. The full benefit of $200 per month is based
20 upon twenty-five (25) years of employees contributions. A
21 prorated benefit will be provided for years of contributions
22 less than twenty-five (25) years.
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1 Illustration for prorated health insurance subsidy:
2 Member age @ hire 30
3 Member age @ retirement 55
4 Years of premium payment 5
5 (5yrs/25yrs = 20%)
6 Monthly benefit $40
7 ($200 subsidy x 20%)
8 Based upon this illustration, the employee contributed for five (5) years
9 which represents 5/25, or twenty percent (20%) of the full benefit calculated
10 period. Therefore, the health insurance subsidy at normal retirement would be
11 twenty percent (20%) of $200, or $40.
12 f2J Option 1 B - health insurance subsidy with two percent
13 (2%) per year COLA.
14 faJ The health insurance subsidy with two percent
15 (2%) Cost of Living Adjustment ("COLA") will provide an
16 initial monthly benefit up to $200 per month at normal
17 retirement in 1999. In the event of death prior to
18 retirement, where the member is eligible for normal
19 retirement, and the retirement annuity option has been
20 selected, the $200 per month will be actuarially reduced to
21 a joint an survivor form of benefit and two-thirds (2/3) of
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1 this amount will be paid to the survivor for their lifetime.
2 The $200 per month will be indexed by two percent (2%)
3 per year, compounded for all affected members.
4 fbJ The amount to be received for the health insurance
5 subsidy with two percent (2%) COLA at retirement is
6 based upon years of contributions by the employee. The
7 full benefit of the indexed insurance subsidy per month is
8 based upon twenty-five (25) years of employee
9 contributions. A prorated benefit will be provided for years
10 of employee contributions less than twenty-five (25) years.
11 Illustration for prorated health insurance subsidy with two percent
12 (2%) COLA:
13 Member age @ hire 30
14 Member age @ retirement 55
15 Years of premium payment 8 (8yrs/25yrs = 32%)
16 1 st year monthly benefit $64 ($200 subsidy x 32%)
17 2nd year monthly benefit $65.28 ($204 subsidy x 32%)
18 f3J Option 2 - Cost-of-Living Adjustment ("COLA r~. The Cost
19 of Living Adjustment ("COLA") provides a five percent (5%)
20 deferred COLA commencing five (5) years after retirement and
21 compounded with additional five percent (5%) increases every
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1 three (3) years thereafter. Spouse benefits, if elected, would also
2 be eligible for the COLA, but the actuarial equivalent factors at
3 retirement for conversion to the joint and two-third (2/3) survivor
4 benefit would need to be updated. A prorated benefit will be
5 provided for years of employee contributions less than twenty-
6 five (25) years.
7 Illustration of the Cost-of-Living Adjustment (COLA):
8 Member age @ hire 50
9 Member age @ retirement 62
10 Years of premium payment 12 (12yrs/25yrs = 48%)
11 COLA Benefit 2.4% (5% COLA x 48%)
12 An employee that made full contributions for this elective benefit
13 option would receive a five percent (5%) COLA. Since the illustrated
14 employee contributed 12 years toward the COLA it has been prorated
15 to two point forty percent (2.40%) which represents forty-eight percent
16 (48%) of the fully contributed percentage.
17 (4j Twenty-five (25) year service requirement (any age). The
18 twenty-five (25) year service requirement (any age) would allow
19 the employee to retire with twenty-five (25) years of service,
20 regardless of age. This option will provide an increase in the
21 early retirement factors based upon years contributed. The cost
22 will be actuarially adjusted on an annual basis. A prorated benefit
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1 will be provided for years of employee contributions less than
2 twenty-five (25) years. The factors used for retirement based
3 upon years of service are as follows:
4 25 years 72.51 % of calculated benefit
5 26 years 76.91 % of calculated benefit
6 27 years 81.81 % of calculated benefit
7 28 years 87.36% of calculated benefit
8 29 years 93.41 % of calculated benefit
9 30 years 100.00% of calculated benefit
10 Illustration of the twenty-five (25) year service requirement (any
11 age):
12 Member age at hire 20
13 Member age at retirement 45 (25 yrs of service)
14 Years of premium payment 5 (5 yrs/25yrs = 20%)
15 Average pay while contributing $29,700
16 Percentage cost per year 1.89%
17 Aggregate premium $2,807
18 ER factor 72.51 %
19 Adjusted ER factor 78.01 %
20 (27.49 diff (@ 20%)
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1 (Adjusted factor of 72.51% + Differential of (100.00-72.51)
2 x 20%)
3 Section 10. Section 18-135 of Article II of Chapter 18 of the Boynton Beach
4 ode of Ordinances is hereby amended as follows:
5 ec. 18-135. Board of Trustees.
6 (a) Composition of the Board. The composition and terms of the seven (7)
7 members of the Board of Trustees of the Employees Pension Plan of
8 the city are hereby established as follows:
9 f1J The Mayor.
10 f2J The City Manager, or his designee. The appointment of a
11 City Manager designee by the City Manager shall be ratified by
12 the City Commission.
13 t3J Two (2) individual citizens who shall be appointed by the
14 City Commission to serve for three (3) four (4) year staggered
15 terms.
16 t4J One (1) employee representative member shall be elected
17 at-large by the members of the Plan to serve a three (3) four (4)
18 year term.
19 f5J One (1) employee representative member shall be elected
20 to serve a three (3) four (4) year term by all members of the plan
21 from the general membership of the plan, provided the member
22 is a member of a bargaining unit of the city.
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1 f6j One (1) employee representative member shall be elected
2 to serve a three (3) four (4) year term by all members of the plan
3 from the general membership of the plan, provided the member
4 is not a member of a bargaining unit of the city.
5 Section 11. Section 18-145( e) and (f) of Article II of Chapter 18 of the
6 oynton Beach Code of Ordinances is hereby amended as follows:
7 City of Boynton Beach Investment Policy for General
8 mployees' Pension Fund.
9 * * * * *
10 (e) Investment objectives.
11 f1j Investment objectives are intended to provide quantifiable
12 benchmarks to measure and evaluate portfolio return and risk.
13 Most investment styles require a full market cycle to allow an
14 investment manager to demonstrate his abilities. A full market
15 cycle is generally defined as a three (3) to five (5) year period.
16 As a result, performance objectives will be measured over three
17 (3) to five (5) year periods. Monitoring shorter periods may be
18 used to determine the trend of performance premiums or
19 deficiencies.
20 f2j The specific objectives of the Boynton Beach General
21 Employees' Pension Fund are as follows:
22 a. Primary objective:
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II To earn an average rate of return over the long
1 {17}
2 term (three (3) to five (5) years) which exceeds the
3 return of a Target Index. The Target Index for the
4 Boynton Beach General Employees' Pension Fund
5 is defined as a fifty five thirty-five percent (5-&
6 35%) investment in the Russell 1000 3QOO Stock
7 Index, a ten Dercent (10%\ investment in the
8 Russell 2000 Stock Index. a taR twenty percent
9 (W 20%) investment In the MSCI Europe
10 Australasia and Far East Stock Index (EAFE)~
11 ten Dercent (10%\ investment in the NCREIF
12 ProDertv Index. and a ~enty-five thirty five
13 percent (38 2.5%) investment in the Barclavs
14 CaDital Aaareaate Merrill Lynch Master Bond
15 Index.
16 {27} In addition, it is expected that the total rate
17 of return earned will rank above average when
18 compared to a representative universe of other,
19 similarly managed portfolios.
20 b. Secondary objective: A further goal of the Boynton Beach
21 General Employees' Pension Fund shall be to achieve an
22 average annual rate of return greater than the absolute
23 return of eight percent (8%), over the longer term. This
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1 absolute return objective will be evaluated in the context
2 of the prevailing investment market conditions.
3 c. Volatility: The volatility of the Fund's total returns is
4 expected to be similar to that of the Target Index and will
5 be evaluated accordingly.
6 t3j The investment objectives set forth herein have been established
7 for the entire Boynton Beach General Employees' Pension Fund.
8 The specific investment objectives for each investment manager
9 will be outlined in separate documents which will be addenda
10 hereto and incorporated herein to this overall statement of
11 investment policy.
12 (f) Investment guidelines.
13 t1j The Board of Trustees has established the following target asset
14 allocation for the entire Boynton Beach General Employees'
15 Pension Fund:
Taraet Taraet Ranae
Allocation (at market)
(at market)
Eauitv Securities
Domestic Eauitv 45% 30% - 60%
Foreian Eauitv 20% 5% - 25%
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Fixed Income & Eauivalents
Fixed Income 25% 20% - 70%
Direct Real Estate 10% 5%-15%
Cash Eauivalents 0% 0% - 10%
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3 f2j To implement this strategy, the Board has chosen to hire one or
4 more professional investment managers. Specific assignments
5 and additional guidelines for each Investment Manager will be
6 outlined in addenda to this section. The following guidelines and
7 restrictions apply to all fund investments.
8 f3j In accordance with the policies established by the Board of
9 Trustees, the assets of the Boynton Beach General Employees'
10 Pension Fund shall be invested in a diversified portfolio of fully
11 negotiable, equity, fixed income, and money market securities,
12 provided they meet the following criteria:
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1 a. Equity securities:
2 f1-:} Investments in equity securities shall be limited to
3 no more than 70% at market value or 65% w.% at
4 cost valuation of the fund's total asset value;
5 f27} All equity investments shall be limited to fully and
6 easily negotiable equity securities;
7 f37} No more than 5% at cost value of an Investment
8 Manager's equity portfolio may be invested in the
9 shares of a single corporate issuer;
10 f47} Investments in stocks of foreign companies shall
11 be limited to W 25% (at oost market) of the total
12 investment portfolio. American DeDositorv
13 Receipts (ADRs) and foreian ordinarv securities
14 traded on domestic exchanaes are United
15 States dollar-denominated securities listed and
16 traded on a United States exchanae and are
17 considered Dart of the ordinarv investment
18 strateav of the Board. These securities are not
19 considered foreian securities.;
20 f57} Investment in those corporations whose stock has
21 been publicly traded for less than one year are
22 limited to 15% of the equity portfolio; and
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1 {67} Equities may be managed through the purchase of
2 open-end, no-load mutual funds, Exchanae traded
3 funds, or commingled funds. Those
4 securities/funds purchased directly by investment
5 advisors are expected to adhere to the guidelines
6 herein. The Board implicitly accepts the policy of a
7 mutual or commingled fund when it makes a direct
8 investment
9 b. Fixed income securities:
10 {17} The fixed income portfolio shall comply with the
11 following guidelines:
12 (A) The average credit quality of the fixed
13 income portfolio shall be rated "A" or higher;
14 and
15 (B) The duration of the fixed income portfolio
16 should be less than 135% of the duration of
17 the market index. The market index is
18 defined as the Barclavs CaDital Aaareaate
19 Merrill Lynch Master Bond Index.
20 {27} Investments in all corporate fixed income securities
21 shall be limited to:
22 (A) Those securities rated "BAA" or higher by
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1 Moody's or by Standard & Poor's rating
2 services. Fixed income securities, which are
3 downgraded below the minimum rating, shall
4 be sold at the earliest beneficial opportunity;
5 (B) Securities issued by a corporation organized
6 under the laws of the United States, any
7 state or organized territory of the United
8 States, or the District of Columbia; and
9 (C) No more than 10% at cost of an Investment
10 Manager's total fixed income' portfolio shall
11 be invested in the securities of any single
12 corporate issuer.
13 {37} Investments in Collateralized Mortgage Obligations
14 (CMOs) shall be limited to 15% of the market value
15 of the Investment Managers' total portfolio and
16 shall be restricted to issues which meet all of the
17 following criteria:
18 (A) All issues must be backed by mortgage
19 securities issued, guaranteed, or fully
20 insured by the Government National
21 Mortgage Association (GNMA), the Federal
22 Home Loan Mortgage Corporation
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1 (FHLMC), the Federal National Mortgage
2 Association (FNMA) or that are rated "Aaa"
3 by Moody's or "AAA" by Standard & Poor's
4 rating services.
5 {47} There is no limit imposed on investments in fixed
6 income securities issued directly by the United
7 States Government or any agency or
8 instrumentality thereof.
9 {57} Fixed income securities may be managed through
10 the purchase of open-end, no-load mutual funds or
11 commingled funds. Those securities/funds
12 purchased directly by investment advisors are
13 expected to adhere to the guidelines herein. The
14 Board implicitly accepts the policy of a mutual or
15 commingled fund when it makes a direct
16 investment.
17 c. Cash equivalent securities:
18 {17} The Investment Manager may invest only in the
19 following short-term investment vehicles:
20 (A) The money market or STIF provided by the
21 plan's Custodian;
22 (B) Direct obligations of the United States
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1 Government with a maturity of one year or
2 less;
3 (C) Commercial paper with a maturity of 270
4 days or less that is rated A-1 or higher by
5 Standard & Poor's or P-1 or higher by
6 Moody's; and
7 (D) Bankers acceptances issued by the largest
8 50 banks in the United States (in terms of
9 total assets).
10 (4j Prohibited investments. Investments in interest only or principal
11 only CMOs, precious metals, limited partnerships of any kind,
12 direct investment in real estate, repurchase agreements, venture
13 capital, futures contracts, options contracts, municipal bonds,
14 trading on margin and short selling are prohibited. Investments
15 not specifically addressed in this section are considered
16 prohibited investments.
17 f5j Review of policy. It is the intention of the Board of
18 Trustees of the Boynton Beach General Employees' Pension
19 Fund to review this Statement of Investment Policy and its
20 addenda periodically to amend it to reflect any changes in
21 philosophy or objectives However, if at any time the Investment
22 Manager believes that the specific objectives defined herein
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1 Government with a maturity of one year or
2 less;
3 (C) Commercial paper with a maturity of 270
4 days or less that is rated A-1 or higher by
5 Standard & Poor's or P-1 or higher by
6 Moody's; and
7 (D) Bankers acceptances issued by the largest
8 50 banks in the United States (in terms of
9 total assets).
10 (4J Prohibited investments. Investments in interest only or principal
11 only CMOs, precious metals, limited partnerships of any kind,
12 direct investment in real estate, repurchase agreements, venture
13 capital, futures contracts, options contracts, municipal bonds,
14 trading on margin and short selling are prohibited. Investments
15 not specifically addressed in this section are considered
16 prohibited investments.
17 f5J Review of policy. It is the intention of the Board of
18 Trustees of the Boynton Beach General Employees' Pension
19 Fund to review this Statement of Investment Policy and its
20 addenda periodically to amend it to reflect any changes in
21 philosophy or objectives. However, if at any time the Investment
22 Manager believes that the specific objectives defined herein
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1 cannot be met or that these guidelines unnecessarily constrict
2 performance, the Board shall be so notified in writing.
3 Section 12. Section 18-145.1 of Article II of Chapter 18 of the Boynton Beach
4 ode of Ordinances is hereby deleted in its entirety as follows:
5
6 , , , .
7 (a) Investment in stocks issued by companies domiciled outside of the
8 United States '1.';11 be limited to ten (10) percont of the v31ue of the plan's
9 i total 3ssets (at cost). Investment in any singlo stock issue shall not
10 exceed throe (3%) percent of the fund's total value nor shall the equity
11 portfolio's total value (at cost) exceed sixty (60%) percent of the fund's
12 total 3ssets, 'Nith a target of fifty five (55%) percent.
13 ,
14 Fund sholl consist only of U.S. Government and U.S. Government
15 Agoncy bonds and/or bonds issued by domestic corporJtions that are
16 rated "A" or better by Moody's or Standard & Poor's rating services. In
17 the event a bond rating drops below 3 rating of "A" it shJII be sold by
18 the investment m3nagor. Investment in Jny single corporate bond issue
19 sh311 not exceed hvo and one half (2X) percent of the fund's totJI value.
20
21 funds are permissible. However, ninety (90) porcent of the securities
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1 hold in the mutual or comminglod funds must moot the critoria outlined
2 abovo.
3 . .
, ,
4 private placoments, short solos and purchoses on margin are
5 prohibitod.
6 . .
7 (3) classifications of a major rating service.
8 ,
9 that include warrants for the prico of common stock, are ollowed even if
10 a premium prico is being paid for the convertiblo privilege or for tho
11 warrants, 3t the professional direction of tho investment mon3gor.
12
13 may C3USO up to t'.\'enty (20) porcent of the equity portion of tho general
14 employoos' pension fund to bo in'lostod in stocks v:hose sole critori3 shall be
15 that they are listod on anyone (1) or more of tho recognized national stock
16 oxch3ngos, or NASDAQ.
17 Section 13. It is the intention of the City Commission of the City of Boynton
18 each that the provisions of this Ordinance shall become and be made a part of the
19 ode of Ordinances of the City of Boynton Beach, Florida. The Sections of this
20 rdinance may be renumbered, re-Iettered and the word "Ordinance" may be
21 hanged to "Section," "Article" or such other word or phrase in order to accomplish
22 uch intention.
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1 Section 14. All Ordinances or parts of Ordinances, Resolutions or parts of
2 lResolutions in conflict herewith be and the same are hereby repealed to the extent of
3 ~uch conflict.
4 Section 15. If any clause, section, or other part or application of this
5 rdinance shall be held by any court of competent jurisdiction to be unconstitutional
6 r invalid, such unconstitutional or invalid part or application shall be considered as
7 liminated and so not effecting the validity of the remaining portions or applications
8 emaining in full force and effect.
9 Section 16. Unless otherwise provided by the terms of the Ordinance, this
10 rdinance shall become effective when the following have occurred:
11 (a) The City Commission has received and has accepted a report
12 establishing the actuarial soundness of these amendments;
13 (b) When a collective bargaining agreement ratifying the foregoing changes
14 to pension benefits has been ratified by the City Commission and the
15 General Employees Union SEIU Florida Public Services Union, CTW,
16 CLC (Blue Collar) SEIU Florida Public Services Union, CTW, CLC
17 (White Collar) or their successor organization or bargaining has been
18 waived; and
19 (c) A copy of this Ordinance is transmitted to the State of Florida Division
20 of Retirement.
21 Upon satisfaction of all of the above requirements, then in that event, the
22 erms and provisions of this Ordinance shall become effective.
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1 FIRST READING THIS ~... DAY OF Fe\orUdL'Y ,2010.
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2 SECOND, FINAL READING and PASSAGE THIS ~ DAY OF FebrUAry.
3 010.
4 CITY OF BOYNTON BEACH, FLORIDA
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