10-016
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1 ORDINANCE NO. 10 - 0 I ~
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3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH,
4 FLORIDA, CREATING SECTION 18-184.2 OF THE
5 FIREFIGHTERS' RETIREMENT PLAN PROVIDING
6 FOR THE PAYMENT OF A ONE TIME
7 SUPPLEMENT AL BENEFIT FOR RECENT RETIREES
8 AND AN AD HOC BENEFIT FOR FUTURE RETIREES,
9 TO BE FUNDED WITH A V AILABLE CHAPTER 175
10 PREMIUM TAX REVENUE; PROVIDING FOR
11 CONFLICTS; CODIFICATION AND AN EFFECTIVE
12 DATE.
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14 WHEREAS, the City of Boynton Beach Florida sponsors a retirement plan and trust
15 fund for firefighters pursuant to Chapter 175, Florida Statutes;
16 WHEREAS, the Board of Trustees of the Boynton Beach Firefighters' Retirement
17 Plan desires to amend the City Code to provide an annual ad hoc supplemental benefit for
18 future retirees and a lump sum supplemental benefit for recent retirees, funded exclusively
19 with available Chapter 175 premium tax revenue;
20 WHEREAS, the Board of Trustees of the Boynton Beach Firefighters' Retirement
21 Plan recognizes that Chapter 175 premium tax revenue can only be used for firefighter
22 pension benefits and cannot be used for any other purposes;
23 WHEREAS, payment of these supplemental payments will not create any actuarially
24 unfunded liabilities for the City; and
25 WHEREAS, the City Commission has determined this amendment will benefit the
26 citizens and firefighters of the City of Boynton Beach;
27 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
28 THE CITY OF BOYNTON BEACH, FLORIDA:
29 Section 1: Section 18-184 is hereby created to read as follows:
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1 Section 18-184.2 Ad Hoc Supplemental Benefit.
2 (a) Supplemental Benefit.
3 "Available funds" shall be used to pay an "extra benefit" as set forth in this Section, from
4 "additional premium tax revenues" as defined by Section 175.351(1)(a), Florida Statutes. An
5 Ad Hoc supplemental benefit shall be paid annually, following one full year of retirement
6 (disability, early or normal. DROP or deferred vested retirement), to eligible retirees who
7 have entered pay status. After the Board approves payment, the distribution shall be made by
8 the end of the second calendar quarter.
9 (b) Using available funds, an Ad Hoc supplemental benefit shall be paid to each eligible
10 retiree who retires after the adoption of this ordinance, provided that additional premium tax
11 revenue is available. For purposes of this section, eligible retiree shall mean any member who
12 is currently employed and future members who retire after earning ten or more years of actual
13 service, including DROP participants. Any Ad Hoc supplemental benefits payable under this
14 Section to active DROP participants shall be paid into a member's DROP account, beginning
15 one year after entering DROP.
16 (c) Calculation of Ad Hoc Benefit.
17 Each eligible retiree shall receive a distribution of available funds of up to five hundred
18 dollars ($500) per year of credited service, for each year of credited service in the plan, not to
19 exceed twenty years. The City delegates to the Pension Board the ability to adopt
20 administrative rules to implement this ordinance.
21 ( d) Calculation of available funds:
22 On the date of adoption of this ordinance, the pension plan provides for a twelve percent
23 (12%) member contribution rate. Any future increases in the member contribution rate over
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1 twelve percent (12%), including but not limited to COLA costs described in Section 18-180.2,
2 shall tIrst be deducted from available funds. Prior to paying Ad Hoc supplemental benefits,
3 the availability of additional premium tax revenues and available funds shall be confirmed in
4 writing by the Pension Board's actuary. From time to time, the Pension Board may
5 recommend adiustments to the calculation formula, based on the proiected status of available
6 funds.
7 ( e) Lump Sum Supplemental Benefit for Eligible Recent Retirees.
8 Available funds shall also be used by the Board to pay a lump sum supplemental benefit to
9 recent retirees who separated from service on or after October 1, 2005 but prior to the
10 adoption of this ordinance. The lump sum benefit shall be calculated based on the number of
11 years of service between October 1, 2005 and retirement. The lump sum shall be paid in
12 annual installments corresponding to the number of years of service worked subsequent to
13 October 1, 2005. Such retirees shall not be eligible for future Ad Hoc supplemental benefits.
14 (f) Non-Guarantee of Benefits.
15 Prior to payment of any benefit under this Section, eligible retirees shall acknowledge in
16 writing that they have no right, title or interest in Ad Hoc supplemental benefits in any future
17 year. Eligible retirees shall further acknowledge that they have no expectation in any future
18 Ad Hoc supplemental benefits since there may be years where no Ad Hoc supplemental
19 benefit is paid, based on the availability of additional premium tax revenue. Eligible retirees
20 shall specifically acknowledge that available funds and additional premium tax revenues may
21 be used for other purposes in the future, as determined by the collective bargaining process.
22 Section 2: That all Ordinances or parts of Ordinances in conflict herewith be and
23 the same are hereby repealed.
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1 i Section 3: Should any section or provision of this Ordinance or portion hereof,
2 any paragraph, any sentence, or word be declared by a court of competent jurisdiction to be
3 invalid, such decision shall not affect the remainder of this Ordinance.
4 Section 4: Authority is hereby granted to codify this Ordinance.
5 Section 5: This Ordinance shall become effective immediately upon passage.
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6 FIRST READING this ~O day of Ju..\l' ,2010.
7 SECOND, FINAL READING AND PASSAGE this j&! day of lkt..ju.s. ,
8 2010.
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10 CITY OF BOYNTON BEACH, FLORIDA
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