Boynton18 Chapter 18
PENSIONS AND RETIREMENT
Art. I. Social Security, §§ 18-1—18-54
Div. 1. Generally, §§ 18-1—18-18
Div. 2. For Policemen, §§ 18-19—18-36
Div. 3. For Firemen, §§ 18-37—18-54
Art. II. Employees’ Pension Plan, § 18-55—18—163
Div. 1. Generally, §§ 18-55—18-73
Div. 2. Membership and Service, §§ 18-74—18-92
Div. 3. Contributions and Funding, §§ 18-93—18-110
Div. 4. Retirement and Retirement Benefits, §§ 18-111—
18-134
Div. 5. Administration of the Plan, §§ 18-135—18-163
Art. III. Municipal Police Officers’ Retirement Trust Fund, §§ 18-164—18-178
Art. IV. Pensions for Firefighters, §§ 18-179—18-194
Art. V. Deferred Compensation Plan for Unclassified Personnel, §§ 18-195, 18-196
Art. VI. Flexible Benefit Plan, §§ 18-197—18-199
Art. VII. Eligible Rollover Distributions, §§ 18-200—18-220
Art. VIII. Investment Policies, §§ 18-221, 18-222
Art. IX. Early Retirement Incentive Program, §§ 18-223—18-230
Art. X. Pension Plan for Elected Officials, § 18-240
ARTICLE I. SOCIAL SECURITY
DIVISION I. GENERALLY
Sec. 18-1. Benefits accepted; personnel
covered.
It is hereby declared to be the policy and purpose of the city to extend effective as of January 1, 1955, to the employees and officials thereof, not excluded by law, nor excepted herein,
the benefits of the system of Old Age and Survivor’s Insurance as authorized by the Federal Social Security Act and amendments thereto and by Chapter 650, Florida Statutes, as amended;
and to cover by such plan all services which constitute employment as defined in Section 650.02, Florida Statutes, performed in the employ of said city by employees and officials thereof,
except:
(a) Service of an emergency nature;
(b) Service in any class or classes of positions the compensation for which is on a fee basis;
(c) Service performed by a student for the school in which he or she is enrolled.
(Code 1958, § 21-1)
Sec. 18-2. Personnel excluded.
There is hereby excluded from the benefits provided by section 18-1 any authority to include in any agreement entered into under section 18-3 hereof any service, position, employee
or official now covered by or eligible to be covered by an existing retirement system.
(Code 1958, § 21-2)
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Sec. 18-3. Agreements authorized.
The Mayor is hereby authorized and directed to execute all necessary agreements and amendments thereto with the Florida Industrial Commission, as state agency, or its successor, for
the purpose of extending the benefits provided by such system of Old Age and Survivor’s Insurance to the employees and officials of this city as provided in sections 18-1 and 18-2, which
agreements shall provide for such methods of administration of the plan by such city as are found by the state agency to be necessary and proper, and shall be effective with respect
to services in employment covered by such agreement performed on and after the first day of January, A.D. 1955.
(Code 1958, § 21-3)
Sec. 18-4. Withholdings authorized.
Withholdings from salaries, wages or other compensation of employees and officials for the purpose provided in section 18-1 are hereby authorized to be made, and shall be made, in the
amounts and at such times as may be required by applicable state or federal laws or regulations, and shall be paid over to the state agency designated by such laws or regulations to
receive such amounts.
(Code 1958, § 21-4)
Sec. 18-5. Appropriations authorized.
There shall be appropriated from available funds, derived from general revenue, such amounts, at such times, as may be required to pay promptly the contributions and assessments required
of the city as employer by applicable state or federal laws or regulations, which shall be paid over to the lawfully designated state agency at the times and in the manner provided by
law and regulation.
(Code 1958, § 21-5)
Sec. 18-6. Records, reports, adherence to
regulations required.
The city shall keep such records and make such reports as may be required by applicable state or federal laws or regulations, and shall adhere to the regulations of the state agency.
(Code 1958, § 21-6)
Sec. 18-7. Federal act adopted.
The city does hereby adopt the terms, conditions, requirements, reservations, benefits, privileges and other conditions thereunto appertaining, of Title II of the Social Security Act
as amended, for and on behalf of all officers and employees of its departments and agencies to be covered under the agreement.
(Code 1958, § 21-7)
Sec. 18-8. Custodian, withholding and
reporting agent designated.
The Treasurer of the city is hereby designated the custodian of all sums withheld from the compensation of officers and employees and of the appropriated funds for the contribution
of the city, and the Treasurer of the city is hereby made the withholding and reporting agent and charged with the duty of maintaining personnel records for the purposes of this division.
(Code 1958, § 21-8)
Sec. 18-9. Pension administrator; duties.
(a) Except as otherwise provided herein all administrative duties associated with the maintenance of the pension accounts created by this chapter including the preparation of records
and reports, shall be performed by the pension administrator hired from time to time by the city.
(b) Nothing herein shall diminish or alter the responsibility of the City Clerk to act as custodian of the official minutes of the pension boards.
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(c) The pension administrator shall act as secretary to all pension boards established by this chapter and shall provide the original minutes of said meetings to the city clerk.
(Ord. No. 93-23, § 1, 8-3-93)
Secs. 18-10—18-18. Reserved.
DIVISION 2. FOR POLICEMEN
Sec. 18-19. Benefits accepted; personnel covered.
It is hereby declared to be the policy and purpose of the city to extend effective as of January 1, 1958, to employees and officials thereof in the position of policeman and not excluded
by law nor excepted herein, the benefits of the system of Old Age and Survivors Insurance as authorized by the Federal Social Security Act and amendments thereto, and by Chapter 650,
Florida Statutes, as amended; and to cover by such plan all of their services which
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constitute employment as defined in Section 650.02, Florida Statutes, performed in the employ of said city. (Code 1958, § 21-9)
Sec. 18-20. Agreements authorized.
The mayor is hereby authorized and directed to execute all necessary agreements and amendments thereto with the state agency, and to request the governor to authorize an employee referendum,
for the purpose of extending the benefits provided by said system of Old Age and Survivors Insurance to the employees and officials of said city as specified in section 18-19, hereof,
which agreement shall provide for such methods of administration of the plan by the city as are found by the state agency to be necessary and proper, and, subject to employee referendum,
shall be effective with respect to services in employment covered by such agreement performed on and after the first day of January, A.D., 1958. (Code 1958, § 21-10)
Sec. 18-21. Withholdings authorized.
Withholdings from salaries, wages or other compensation of employees and officials for the purpose provided in section 18-19 hereof are hereby authorized to be made, and shall be made,
in the amounts and at such times as may be required by applicable state or federal laws or regulations, and shall be paid over to the state agency designated by said laws or regulations
to receive such amounts. (Code 1958, § 21-11)
Sec. 18-22. Appropriations authorized.
There shall be appropriated from available funds, derived from general fund revenue, such amounts, at such times, as may be required to pay promptly the contributions, assessments,
and referendum costs required of the city as applicant or employer by state or federal laws or regulations, which shall be paid over to the lawfully designated state agency at the times
and in the manner provided by law and regulation. (Code 1958, § 21-12)
Sec. 18-23. Records, reports, adherence to
regulations required.
The city shall keep such records and make such reports as may be required by applicable state or federal laws and regulations, and shall adhere to the regulations of the state agency.
(Code 1958, § 21-13)
Sec. 18-24. Federal act adopted.
The city does hereby adopt the terms, conditions, requirements, reservations, benefits, privileges, and other conditions thereunto appertaining, of Title II of the Social Security Act
as amended, for and on behalf of all its officers and employees to be covered under the agreement. (Code 1958, § 21-14)
Sec. 18-25. Custodian, withholding and
reporting agent designated.
The treasurer of the city is hereby designated the custodian of all sums withheld from the compensation of officers and employees and of the appropriated funds for the contribution
of the city, and the treasurer of said city is hereby made the withholding and reporting agent and charged with the duty of maintaining personnel records for the purposes of this division.
(Code 1958, § 21-15)
Sec. 18-26. Referendum required.
In the event that a majority of the eligible employees, as the term “eligible employee” is defined in Section 212(d)(3) of the Social Security Act, at a referendum held pursuant to
the authority of this division, do not vote in favor of making applicable the coverage authorized herein, then the effect of this division shall immediately cease and determine, and
moneys withheld, if any, pursuant to section 18-21 hereof shall be refunded. (Code 1958, § 21-16)
Editor’s note-Participation was in fact approved at the referendum required by the above section.
Secs. 18-27—18-36. Reserved.
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DIVISION 3. FOR FIREMEN
Sec. 18-37. Benefits accepted; personnel
covered.
It is hereby declared to be the policy and purpose of the city to extend effective as of January 1, 1958, to employees and officials thereof in the position of fireman and not excluded
by law nor excepted herein, the benefits of the system of Old Age and Survivors Insurance as authorized by the Federal Social Security Act and amendments thereto, and by Chapter 650,
Florida Statutes, as amended; and to cover by such plan all of their services which constitute employment as defined in Section 650.02, Florida Statutes, performed in the employ of said
city, except volunteers. (Code 1958, § 21-17)
Sec. 18-38. Agreements authorized.
The mayor is hereby authorized and directed to execute all necessary agreements and amendments thereto with the state agency, and to request the governor to authorize an employee referendum,
for the purpose of extending the benefits provided by said system of Old Age and Survivors Insurance to the employees and officials of said city as specified in section 18-37 hereof,
which agreement shall provide for such methods of administration of the plan by said city as are found by the state agency to be necessary and proper, and, subject to employee referendum,
shall be effective with respect to services in employment covered by such agreement performed on and after the first day of January, A.D., 1958. (Code 1958, § 21-18)
Sec. 18-39. Withholdings authorized.
Withholdings from salaries, wages or other compensation of employees and officials for the purpose provided in section 18-37 hereof are hereby authorized to be made, and shall be made
in the amounts and at such times as may be required by applicable state or federal laws or regulations, and shall be paid over to the state agency designated by said laws or regulations
to receive such amounts. (Code 1958, § 21-19)
Sec. 18-40. Appropriations authorized.
There shall be appropriated from available funds, derived from general fund revenue, such amounts, at such times, as may be required to pay promptly the contributions, assessments,
and referendum costs required of the city as applicant or employer by state or federal laws or regulations, which shall be paid over to the lawfully designated state agency at the times
and in the manner provided by law and regulation. (Code 1958, § 21-20)
Sec. 18-41. Records, reports, adherence to
regulations required.
The city shall keep such records and make such reports as may be required by applicable state or federal laws or regulations, and shall adhere to the regulations of the state agency.
(Code 1958, § 21-21)
Sec. 18-42. Federal act adopted.
The city does hereby adopt the terms, conditions, requirements, reservations, benefits, privileges, and other conditions thereunto appertaining, of Title II of the Social Security Act
as amended, for and on behalf of all its officers and employees to be covered under the agreement. (Code 1958, § 21-22)
Sec. 18-43. Custodian, withholding and
reporting agent designated.
The treasurer of the city is hereby designated the custodian of all sums withheld from the compensation of officers and employees and of the appropriated funds for the contribution
of the city, and the treasurer of said city is hereby made the withholding and reporting agent and charged with the duty of maintaining personnel records for the purposes of this division.
(Code 1958, § 21-23)
Sec. 18-44. Referendum required.
In the event that a majority of the eligible employees, as the term “eligible employee” is defined
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in section 218(d)(3) of the Social Security Act, at a referendum held pursuant to the authority of this division, do not vote in favor of making applicable the coverage authorized herein,
then the effect of this division shall immediately cease and determine, and moneys withheld, if any, pursuant to section 18-39 hereof, shall be refunded.
(Code 1958, § 21-24)
Editor’s note-Participation was in fact approved at the referendum required by the above section.
Secs. 18-45—18-54. Reserved.
ARTICLE II. EMPLOYEES’ PENSION PLAN
DIVISION 1. GENERALLY
Sec. 18-55. Definitions.
The following words and phrases, as used in this article, unless a different meaning is plainly required by the context, shall have the following meanings, and the same and similar
terms when used in connection with any civil service system or any other ordinance of the city shall not necessarily apply to the members of the retirement system hereby created except
when specifically adopted:
Actuarial equivalent. A benefit of equal value or equal cost when computed on the basis of such interest rates, mortality, and other actuarial tables as are in effect under the plan.
For plan years beginning after December 31, 2002 for purposes of Code Section 415(b), the mortality table is the table used under Code Section 417(e) as prescribed by the Secretary
of the Treasury in Rev. Rul. 2001-62.
Annuity. Annual payments for life to be paid in equal monthly installments with the first payment made as of the first day of the month in which retirement occurs and continuing until
death with the last payment made as of the first day of the month in which death occurs.
Annual earnings. Gross earnings received by the employee as compensation for services to the city, including overtime pay. Bonuses shall be excluded. Flexible benefits shall be excluded.
Effective June 18, 2013 overtime included in pensionable compensation is limited to 300 hours per member per year. Prior to June 18, 2013 all overtime is included in the definition
of pensionable compensation. No hours of unused accumulated sick and vacation leave earned after June 18, 2013 shall be considered annual earnings. However, members may include all
unused hours earned prior to June 18, 2013 provided that amount of hours is cashed in at retirement. Beginning with annual earnings after December 31, 2008, and pursuant to Internal
Revenue Code Section 414(u)(7), the definition of annual earnings includes amounts paid by the city as differential wages to members who are absent from employment while in qualified
military service.
Beneficiary. Any person in receipt of, or entitled to, an annuity, retirement allowance, or other benefit as provided by this article.
Board of Trustees. For the purposes of this article, “Board of Trustees,” “Board” or “Trustees” shall be construed to mean the members of the City Council, unless the said Council,
by resolution, designates additional or substitute individuals to perform the duties and functions of such Board of Trustees.
Charter. The charter of the city, as amended.
City. The City of Boynton Beach, Florida.
City’s contribution. The annual contribution needed to fund actuarially the liability for annuities credited to employees on the basis of actuarial methods and assumptions approved
by the Council.
Code. The Internal Revenue Code of 1986, as amended.
Creditable service. Service in the employment of the city for which credit is allowed under the terms of this article. Such service shall be computed to the nearest whole month of completed
service but not including any fractional parts of a month.
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Effective date of the plan. The date on which the operation of the plan is to commence for the purpose of determining eligibility, benefits and related matters, which is hereby fixed
as the first day of April, 1968.
Employee. All full-time persons employed by the city and so classified under rules and regulations and personnel records of the city, including “probational” or permanent employees.
Any appointed officer shall only be qualified under this plan under one office and that office being the one from which he receives the largest annual salary, compensation or remuneration.
Independent contractors are excluded.
Fund or pension fund. All sums of money paid into the plan by the city, and all gifts and contributions to the fund, accepted from other sources, together with earnings and appreciation
of the same, less disbursements made from said money, in accordance with the plan, or less any losses or depreciation, as asset value.
Gender. The masculine pronoun shall include the feminine pronoun.
General employee. A general employee shall include all employees, as defined in section 18-55 herein, other than policemen or firemen who have not elected to become members of this
pension plan under the provisions of section 18-76.
Member. Any person employed by the city who is included in the membership of the plan as either an original member or a new member. However, a member shall be limited and restricted
to the definition of employee.
Membership service. Service rendered as a full-time permanent employee since last becoming a member of the plan. Such service shall be computed to the nearest full month of completed
service but not including any additional fractional parts of a month.
New member. Any permanent employee who becomes a member of the plan after the effective date of the plan.
Normal retirement date. The normal retirement date of a member shall be his or her normal retirement date as determined in accordance with the terms of the plan.
Original member. Any permanent employee of the city who becomes a member as of the effective date of the plan.
Past service. Continuous service rendered as a full-time employee from his or her date of employment to the effective date of the plan.
Permanent employee. An employee who has completed his or her probationary period, been approved for permanent status by the department head under whom he or she is employed, or the
city council, if approved by it, and has been certified by the City Clerk or City Manager as a permanent employee, or according to the personnel records of the city pertaining to such
employee. Certification or approval for permanent status shall be subject to the rules of the career service system of the city.
Plan, pension plan or employees’ pension plan. The system of retirement benefits provided under this article.
Plan year. A period of 12 consecutive months measured on the basis of the fiscal year, or from any anniversary thereof. The fiscal year will commence October 1 of each year and end
September 30 of each year.
Retirement. Withdrawal from active employment by the city with retirement income granted under the provisions of this plan.
Retirement annuity option. An optional form of retirement annuity as described in section 18-118.
Social Security option. An optional form of retirement annuity as described in section 18-119.
Spouse. The spouse of a member who was married to the member throughout the two-year period ending on the date of the member’s death.
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Total and permanent disability. Includes any disablement caused by sickness or accident which prevents the member from working at any job for wage or profit and which will continue
for the remainder of the member’s life. The determination of whether or not a member is totally and permanently disabled shall be made by the city’s Long Term Disability Company.
Treasurer. The treasurer of the plan is the city finance officer.
(Code 1958, § 21-25; Ord. No. 90-6, § 1, 4-17-90; Ord. No. 90-41, § 2, 9-18-90; Ord. No. 99-14, passed 6-1-99; Ord. No. 10-006, § 2, 2-16-10; Ord. No. 10-028, § 2, 11-3-10; Ord. 11-034,
§ 2, 1-3-12; Ord. No. 13-035, § 2, 12-3-13; Ord. No. 15-008, § 2, 3-2-15)
Sec. 18-56. Establishment of system.
A pension and retirement system for full-time permanent employees in the service of the city is hereby established to provide retirement benefits as provided by this article. It shall
be known as the Employees’ Pension Plan of the City of Boynton Beach, Florida. This system is intended to be a tax qualified plan under Code Section 401(a) and meet the requirements
of a governmental plan as defined in Code Section 414(d).
(Code 1958, § 21-26; Ord. No. 10-028, § 3, 11-3-10)
Sec. 18-57. Future changes in the operation of
plan.
It is contemplated, and all original and new members of the plan shall be deemed to have notice, that the city commission of this city may in the future decide that it is in the best
interests of the city and the members of the plan to modify or terminate trust agreements or contracts entered into with an insurance company or companies, to exercise options available
to the city under the terms of such trust agreements or contracts, or to select another insurance company, trust, or other financial institution, as the depository for pension funds.
(Code 1958 § 21-27)
Sec. 18-58. Power to amend or terminate.
The city commission shall have continuous power to amend this article as provided by its charter, including the power to suspend or discontinue contributions or to terminate the plan,
provided that no such amendment shall (a) revest any part of the pension fund of the city, or (b) make possible the diversion of the pension fund, or any part thereof, to any person
other than the exclusive benefit of the members of the plan. (Code 1958, § 21-28)
Sec. 18-59. Discontinuance of contributions.
If the city permanently discontinues its contributions to the plan without terminating the plan, the assets of the pension fund, as of the last day of theplan year in which such discontinuance
becomes effective, shall be deemed to be vested in the members of the plan on such date in the manner described in section 18-60, except that no distribution of assets shall be made
in accordance with such vested right until the member entitled thereto retires or terminates his employment with the city. For the purposes of this section, the city shall be deemed
to have permanently discontinued contributions if as of the last day of any plan year the unfunded liability is determined to be greater than the sum of its unfunded liabilities as of
the effective date of the plan and any additional unfunded liabilities due to subsequent plan amendment or change in actuarial assumptions. (Code 1958, § 21-28.1)
Sec. 18-60. Termination of plan.
In the event the plan is terminated, the board of trustees shall cause the assets of the plan to be valued as of the date of termination. Upon termination of the plan, all of the members
are 100% vested in their accrued benefit. Such assets shall be allocated to active employees first to the extent of their individual contributions to the plan. Any assets in excess of
employee contributions shall then be allocated to
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retired employees in the proportion that such assets bear to the actuarial value of the benefit which the retired employees are receiving. If after such allocation, any assets then remain,
such additional assets shall be allocated to active employees in the ratio that the liability for benefits accrued by such employee which is in excess of their individual contribution
bears to the aggregate liability for all such employees. (Code 1958, § 21-28.2; Ord. No. 10-028, § 4, 11-3-10)
Sec. 18-61. City contribution irrecoverable.
It shall be impossible for any contributions made by the city under this plan to be used for or diverted to purposes other than the exclusive benefit of the members and their beneficiaries;
except that if after all liabilities of the plan have been paid, any balance shall remain in the trust fund due to erroneous actuarial computations, such balance may be returned to the
city. Additionally, contributions made due to a good faith mistake of fact may be returned to the city.
(Code 1958, § 21-28.3; Ord. No. 10-028, § 5, 11-3-10)
Sec. 18-62. Fraud and deceit prohibited;
penalty.
Whosoever with intent to deceive shall make or cause to be made any statement, report, certificate, election, notice, claim or other instrument, authorized or required under this article,
whether of the enumerated classes or otherwise, which shall be untrue, or who shall cause to be falsified any record comprising any part of the operation or administration of the plan
contemplated by this article, shall be punished by a fine, not exceeding five hundred dollars ($500.00), or by imprisonment not exceeding ninety (90) days, or by both such fine and imprisonment.
Any such violation shall also be punishable as provided under the laws of the State of Florida. (Code 1958, § 21-29)
Sec. 18-63. Temporary limitations.
Until April 1, 1978, but not thereafter, unless the full current costs of the plan have not been met as of April 1, 1978, in which event the provisions of this section will be continued
until the first date thereafter when the full current costs have been met, the provisions of this plan, shall be subject to the following limitations with respect to any of the twenty-five
(25) highest paid employees of the city as of April 1, 1968, whose prospective retirement benefits exceed $1,500.00 per year:
(a) If the plan is terminated the benefits shall not exceed those provided by the city’s contributions equal to the greater of the following amounts:
(1) $20,000.00.
(2) The amount computed by multiplying twenty per cent (20%) of such member’s average annual compensation (not exceeding $50,000.00) received from the city for five (5) years preceding
the date of termination by the number of years intervening between April 1, 1968, and such termination.
(b) If a member retires from the city’s employ, the amount of the benefits provided by the plan shall be paid to him only so long as the city continues to meet the full current costs
of the plan; otherwise the benefits available to such member in any year, beginning with the year in which the city first fails to meet the full current costs of the plan shall be limited
to the annual benefits which could have been provided under the plan with an amount equal to the sum to which he would then be entitled under paragraph (1) of subsection (a) of this
section had this plan then terminated, plus his pro-rata share of all supplemental payments made by the city in such year, or in any later year or years,
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for all members affected by this paragraph; provided, however, that the total amount of such supplemental payments in any year shall not exceed the aggregate employer contributions already
made under the plan in the year then current.
(c) If the employment of a member with the city is terminated for reasons other than death or retirement, benefits which thereupon may be distributed or made available to him shall not
exceed the amount to which such member would then be entitled under paragraph (1) of subsection (a) of this section if the plan were then terminated. Any excess benefits to which such
member would otherwise have been entitled may also be distributed or made available to him in the next succeeding year or years provided (1) the city has met the full current costs of
the plan, and (2) the benefits distributed or made available in any succeeding year shall not exceed an amount which when added to the amounts previously distributed to him pursuant
to this subsection will not exceed the amount to which he then would be entitled under said paragraph (1) if this plan were then terminated.
For the purposes of this section the full current costs of the plan shall be deemed to have been met as of any date if the city shall have contributed to the trustee sums sufficient
so that the initial deficit, if any, in the pension fund shall not have increased. (Code 1958, § 21-29.1)
§ 18-64 Limitation on compensation.
Compensation in excess of the limitations set forth in Section 401(a)(17) of the Internal Revenue Code shall be disregarded. The limitation on compensation for “eligible employees”
shall not be less than the amount which was allowed to be taken into account under the Plan as in effect on July 1,
1993. For this purpose, an “eligible employee” is an individual who was a member of the Pension Plan before the first plan year beginning after September 30, 1996.
(Ord. No. 96-36, § 1, 7-16-96)
Secs. 18-65—18-73. Reserved.
DIVISION 2. MEMBERSHIP AND SERVICE
Sec. 18-74. Original members.
All full-time, permanent city employees on the effective date of the plan who do not currently participate in either the pension plan for firemen or the pension plan for policemen in
Boynton Beach may elect to become original members of the plan. Eligible employees who do not elect to become original members of the plan will not become original members.
(Code 1958, § 21-30)
Sec. 18-75. New members.
New, full-time, general city employees will participate in the plan on the first day of their becoming a full-time general city employee. Full-time, permanent employees who do not elect
to become original members of the plan may elect to become new members of the plan as of any anniversary of the effective date of the plan by giving written notice to the City Manager
at least one month before such anniversary date.
(Code 1958, § 21-31)
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Sec. 18-76. Reserved.
Sec. 18-77. Creditable service.
Creditable service for the purpose of calculating benefits for general employees shall consist of the member’s service rendered by the employee since he last became a member, plus past
service, rendered continuously since the employee’s last date of employment as defined in section 18-78 to the date of his or her separation from service by reason of death, disability,
termination of employment or retirement. Creditable service shall also include any credit granted for military service pursuant to section 18-81, Military and related service.
(Code 1958, § 21-33; Ord. No. 79-20, Art. I, § 4, 4-17-79; Ord. No. 80-51, § 4, 12-16-80; Ord. 10-006, § 4, 2-16-10)
Sec. 18-78. Service before effective date of
plan.
Credit will be given original members for continuous service to the city from their dates of employment (or most recent date of employment if service has not been continuous) to the
effective date of the plan, with the exception as outlined in section 18-77.
(Code 1958, § 21-34)
Sec. 18-79. Termination of membership.
(a) Should any member separate from the service of the city for any reason except his or her retirement, death or termination after having completed five years of credited service
or after total and permanent disability he or she shall thereupon cease to be a member of the plan and his or her credited service at that time shall be forfeited by him or her except
as provided by section 18-117 of this article.
(b) No distributions under this section shall be made until after the member separates from employment.
(Code 1958, § 21-35; Ord. No. 78-15, § 1, 4-4-78; Ord. No. 78-30, § 1, 8-1-78; Ord. No. 78-38, § 1, 9-5-78; Ord. No. 00-75, § 2, 1-2-01; Ord. No. 10-028, § 6, 11-3-10)
Sec. 18-80. Leaves of absence.
Any member who has been granted a leave of absence (except for vacations, extended vacations, sick leave, extended sick leave, or leaves of absence of benefit to the city and approved
by the City Manager) shall be allowed service credit earned prior to the start of leaves of absence, and with service credit to resume upon return to employment.
(Code 1958, § 21-36)
Sec. 18-81. Military and related service.
(a) When any member is inducted or enlists into any of the Armed Forces of the United States, or enlists in any reserve component, enlists in the United States Coast Guard, or in any
other reserve component, or enters upon active duty in the Armed Forces of the United States, the United States Coast Guard, or the United States Public Health Service in response to
an order or call to active duty, and is subsequently reemployed by the city as a full-time permanent general city employee under such circumstances that he or she thereby becomes entitled
to return to work for the city within the time that reemployment rights are granted to him or her by law, he or she shall again become a member of the plan and shall be given service
credit for the credited service he or she had accumulated before entering military or related service and shall again accumulate additional credited service commencing with the date
of his or her reemployment by the city. If approved by the Board such member may also be granted service credit for the period of time spent in military or related service.
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(b) Effective December 12, 1994, the member will at all times be entitled to the rights granted by the Internal Revenue Code Section 414(u), including:
(1) The member will not have break in service as a result of the military service.
(2) The right to purchase such service under the provisions of Section 414(u)(8).
(c) Effective January 1, 2007, members who die or become disabled while serving on active duty military service which intervene’s the member’s employment shall be entitled to the rights
of this section even though such member was not re-employed by the city. Members who die or become disabled while on active duty military service shall be treated as though re-employed
the day before the member became disabled or died, was credited with the service they would have been entitled to under this section, and then either died a non-duty death while employed
or became disabled from a non-duty disability.
(Code 1958, § 21-37; Ord. No. 10-006, § 5, 2-16-10; Ord. No. 10-028, § 7, 11-3-10)
Sec. 18-82. Reemployment.
When any former employee of the city is reemployed, he or she will become a member of the plan upon reemployment as a full-time permanent general city employee. When a former employee
of the city is reemployed and said employee had withdrawn contributions previously made to the plan, he or she may have forfeited credited service reinstated upon satisfaction of each
of the following conditions:
(1) The break in city employment 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). 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 F.S. Chapter 112, part VII.
(3) Repayment of withdrawn contributions, interest thereon, and administrative processing fee, must be made no later than one (1) year from the date the fund’s actuary delivers a repayment
calculation to the employee.
(4) The application is made within one (1) year of reemployment by the city. Should a member fail to make application within one (1) year of reemployment for the purchase of prior city
time, then the member may within five (5) years of reemployment by the city request the purchase of the prior city time. This time may be purchased at the full actuarial impact of the
purchase of service, plus the cost of the actuarial services to calculate the buyback.
When a former employee of the city is reemployed and said employee had previously terminated his or her employment with a vested right to a deferred annuity, provided he or she had
not withdrawn contributions previously made to the plan, he or she will again become a member of the plan as of the date of his or her reemployment as a full-time permanent general city
employee. The credited service
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which such reemployed member had accumulated as of the date of his or her prior termination of employment shall be reinstated and he or she shall accrue additional credited service from
the date of his or her reemployment. Any benefits to which such reemployed member subsequently becomes entitled shall be based on the sum of his or her credited service prior to his
or her previous termination of employment plus credited service subsequently to his or her reemployment.
(Code 1958, § 21-38; Ord. No. 96-04, § 1, 3-5-96; Ord. No. 98-02, § 1, 1-20-98; Ord. No. 98-12, § 1, 4-21-98; Ord. No. 15-008, § 3, 3-2-15)
Secs. 18-83—18-92. Reserved.
DIVISION 3. CONTRIBUTIONS AND FUNDING
Sec. 18-93. Pension fund designated.
The City of Boynton Beach Employees’ Pension Fund shall be the fund in which shall be accumulated all contributions made for the Employees’ Pension Plan of the City of Boynton Beach
and from which shall be paid benefits and other payments in accordance with this article.
(Code 1958, § 21-39)
Sec. 18-94. Employee contributions required.
Subject to the limitations imposed in section 18-95, employees who are members of the plan shall contribute 7% of monthly earnings to the fund for that month. Pursuant to Code section
414(h)(2), the city shall pick up the member contributions required by this section. The contributions so picked up shall be treated as employer contributions in determining tax treatment
under the Code. The city shall pick up the member contributions from funds established and available for salaries, which funds would otherwise have been designated as member contributions
and paid to the Fund. Member contributions picked up by
the city pursuant to this subsection shall be treated for purposes of making a refund of members' contributions, and for all other purposes of this and other laws, in the same manner
and to the same extent as member contributions made prior to the effective date of this section.
(Code 1958, § 21-40; Ord. No. 79-20, Art. I, § 2, 7-17-79; Ord. No. 80-51, § 2, 12-16-80; Ord. No. 88-43, § 2, 9-21-88; Ord. No. 00-75, § 3, 1-2-01; Ord. No. 10-028, § 8, 11-3-10)
Sec. 18-95. Deduct contributions from pay.
The Director of Finance shall cause contributions provided for in section 18-94 of this article to be deducted from the compensation of each member on each and every payroll for each
and every payroll. A member’s contribution provided for herein shall be made notwithstanding that the minimum compensation provided by law for any member shall be changed thereby. Each
member shall be deemed to consent and agree to the deduction made and provided for herein
and payment of his compensation less said deduction shall be full and complete discharge of all claims and demands whatsoever for the service rendered by said member during the period
covered by such payment, except as to the benefits provided by this plan. The Director of Finance shall cause the amount to be deducted from the compensation of each member for each
and every payroll as authorized by this article and when deducted shall be paid into the fund of the plan and shall be credited to the individual member from whose compensation said
deduction was made. (Code 1958, § 21-41; Ord. No. 79-20, Art. I, § 3, 7-17-79; Ord. No. 80-51, § 3, 12-16-80; Ord. No. 10-006, § 6, 2-16-10)
Sec. 18-96. Return of accumulated employee
contributions.
(a) Should any member cease to be an employee of the city for any reason except his or her retirement, disability or death, he or she shall be paid all of his or her accumulated contributions
standing to his or her
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credit in the fund, as he or she shall demand on forms furnished by the City Commission in accordance with section 18-117.
(b) Except as otherwise provided in this plan, upon the death of a member, his or her accumulated contributions standing to his or her credit in the Pension Fund, at the time of his
or her death, shall be paid to such person or persons as he or she shall nominate by written designation duly executed and filed with the City Commission. If there shall be no such designated
person or persons surviving the said member, his or her said accumulated contributions shall be paid to his or her estate.
(c) No distributions under this section shall be made until after the member separates from employment.
(Code 1958, § 21-42; Ord. No. 78-15, § 2, 4-4-78; Ord. No. 10-028, § 9, 11-3-10)
Sec. 18-97. Gifts to fund.
All gifts, devises and bequests to the plan shall be credited to the pension fund. The city may accept gifts, devises, bequests, or appropriations for the fund from any source, but
shall have the right to reject same if they are so conditioned as to conflict with the charter or this article, or to make the administration of the same unreasonably difficult.
(Code 1958, § 21-43)
Sec. 18-98. City to bear costs in excess of
contributions and gifts.
All costs of the pension plan in excess of sums received through employee contributions, gifts, devises, bequests, and from other sources, will be borne by the city.
(Code 1958, § 21-44)
Sec. 18-99. City’s contribution.
The city shall pay into the fund amounts required in addition to funds received from employee
contributions, gifts, devises, and so forth, to provide the benefits under the plan, as shall be determined by an actuarial investigation as provided in Division 5. (Code 1958, § 21-45)
Sec. 18-100. Financial management.
Employee contributions, gifts, bequests, devises and appropriations to the fund shall be received by the Director of Finance who shall be liable for the safekeeping of the funds under
his or her bond. The Director of Finance shall transfer to the Pension Fund all pension funds appropriated by the City Commission. The Director of Finance shall be responsible for making
all payments and disbursements from the pension fund.
(Code 1958, § 21-46)
Secs. 18-101—18-110. Reserved.
DIVISION 4. RETIREMENT AND
RETIREMENT BENEFITS
Sec. 18-111. Normal retirement.
(a) An employee who retires on or after January 1, 1977, but before January 2, 2001, will normally retire on the first day of the month following his or her sixty-second birthday or
the first day of the month following ten years of completed service with the city, whichever is later.
(b) An employee who retires prior to January 1, 1977, will normally retire on the first day of the month following his or her sixty-fifth birthday or the first day of the month following
ten years of completed service with the city, whichever is later.
(c) On or after January 2, 2001, an employee will be eligible to retire on the first day of the month following his or her fifty-fifth birthday and the completion of 25 years of services,
or his or her sixty-second birthday and the completion of five years
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of services, or the completion of 30 years of services regardless of age.
(d) In the event of normal retirement, the retiring employee shall be entitled to and shall be paid an annuity payable monthly beginning with the month of retirement and continuing
until death. The amount of annuity to which the retiring employee will be entitled will be calculated as follows:
(1) An employee who retires prior to October 6, 1988, shall be eligible to receive a monthly benefit computed in accordance with the provisions of the plan as in effect as of the date
of his or her retirement; provided, however, that with respect to those employees who retired prior to January 1, 1977, effective as of January 1, 1977 the retirement benefit payable
to each such individual was increased by 25% as of that date; and, provided further, that effective as of October 6, 1988, the monthly benefit payable to each individual who retired
before such date shall be increased by 2% of each such individual’s current benefit times the number of full years between each such individual’s most recent retirement date and October
6, 1988.
(2) An employee who retires prior to October 6, 1988, shall be eligible to receive a monthly benefit computed in accordance with the provisions of the plan as in effect as of the date
of his or her retirement. An employee who retires on or after October 6, 1988, but before January 2, 2001, shall be entitled to, and shall be paid, an annuity payable monthly beginning
with the month of retirement and continuing until death. The amount of the annuity to which the retired employee will be entitled will be equal to 50% of his or her final average monthly
compensation plus 75% of the excess over $825 of such final average monthly compensation; provided, however, the employee has completed at least 25 full years of credited service at
his or her normal retirement date. If the employee’s credited service at normal retirement date is less than
25 full years, the aforesaid amount shall be reduced for the shorter service by multiplying it by a fraction, the numerator of which is the employee’s full years and fractions thereof
in months of credited service at normal retirement date and the denominator of which is 25 years.
(3) An employee who retires on or after January 2, 2001, shall be entitled to and shall be paid an annuity in the amount of 3% times the number of years of his or her service to the
city times his or her final average monthly compensation, subject in any event to a maximum of 75% of his or her final average monthly compensation.
(4) “Final average monthly compensation,” for the purposes of this section, shall mean the monthly average of the employee’s annual earnings during the highest 60 consecutive calendar
months occurring in the 120 calendar months immediately preceding his or her normal retirement date if such date falls on or after January 1, 1979, and based upon compensation immediately
preceding actual retirement date if normal retirement date preceded January 1, 1979, or he or she elected to continue to contribute after normal retirement date as provided in section
18-95. “Annual earnings” as used in the above sentence shall mean gross earnings received by the employee as compensation for service to the city as provided for in Section 18-55.
(5) Elective benefits. The city may, from time to time, offer elective benefits to employees, which benefits would be funded solely by employees contributions and would not result
in any additional cost to the city. These benefits are provided for in section 18-128 of the plan.
(e) Commencing October 1, 2001, in lieu of receiving a cost of living increase, retirees may be eligible to receive a supplemental pension distribution payable by the following July
1, the amount of which shall be determined as of September 30 of each year. The amount of the distribution is equal to the amount
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the net investment return exceeds the assumed rate of investment return divided equally among all participants whose benefit was in pay status as of the previous October 1. The amount
of the distribution shall be the same for all eligible retired members regardless of years of service, age, years retired, or amount of monthly benefit. In no event shall the supplemental
benefit exceed the average monthly benefit of those retirees receiving a monthly benefit calculated as of the previous October 1.
(1) The actuary for the pension fund shall determine the rate of investment return on the pension fund assets during the 12-month period ending each September 30, and shall be the rate
reported in the most recent actuarial report.
(2) The actuary for the pension fund shall, as of September 30, determine the actuarial present value of future pension payments to current retirees.
(3) The supplemental benefit shall not be paid in any year that the present value of such benefits does not exceed the net actuarial experience accumulated from all sources of gains
and losses since this benefit was enacted.
(4) If there shall be a supplemental distribution, Board of Trustees shall authorize a supplemental pension distribution, unless the administrative expenses of distribution exceed
the amount available for distribution.
(5) The eligible persons to receive a supplemental distribution are retirees, including participants in the DROP, and their beneficiaries.
(6) For members who participate in the DROP, as provided in § 18-127 of the plan, the supplemental pension distribution, if distributed, shall be deposited in the
member's DROP account during their term of the participation in the DROP.
(f) An employee's right to his or her normal retirement benefit is non-forfeitable upon attainment of normal retirement age.
(Code 1958, § 21-47; Ord. No. 79-20, Art. I, § 5, 7-17-79; Ord. No. 80-51, § 5, 12-16-80; Ord. No. 88-43, § 3, 9-21-88; Ord. No. 98-15, § 1, 5-19-98; Ord. No. 00-75, § 4, 1-2-01; Ord.
No. 02-026, § 2, 6-18-02; Ord. No. 06-079, § 2, 10-17-06; Ord. No. 10-028, § 10, 11-3-10; Ord. No. 13-035, § 3, 12-3-13)
Sec. 18-112. Minimum benefit.
In no event shall an employee’s monthly retirement benefit determined under sections 18-111, 18-113, 18-114 or 18-117 be less than the monthly retirement benefit which such employee
would have received based on his accrued benefit as of April 30, 1975, under the provisions of the plan as in effect immediately prior to May 1, 1975.
(Code 1958, § 21-48)
Sec. 18-113. Delayed retirement.
Any employee who does not desire to retire on his or her normal retirement day may delay retirement.
(Code 1958, § 21-49; Ord. No. 79-20, Art. I, § 1, 7-17-79; Ord. No. 80-51, § 1, 12-16-80; Ord. No. 10-006, § 7, 2-16-10)
Sec. 18-114. Retirement prior to normal
retirement date.
(a) The early retirement date of an employee shall be the first day of any month prior to his or her normal retirement date and following, or coinciding with, the date of actual retirement,
provided (s)he has
then completed less than thirty (30) years of service, but at least: (a) ten (10) years of credited service and has attained his or her fifty-fifth (55th) birthday; or (b) twenty-five
(25) years of service and has attained fifty-two (52) years of age. An employee who retires on an early retirement date shall be entitled to a deferred annuity payable beginning at
his or her normal
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retirement date or, if (s)he so elects, to an immediate annuity beginning at his or her early retirement date. The amount of the deferred annuity will be equal to a benefit determined
as for normal retirement under the provision of section 18-111, but based on the employee’s final average monthly compensation as of his or her early retirement date and his or her credited
service as of such early retirement date. If the retiring employee elects to receive an immediate annuity commencing at his or her early retirement date, the amount of such immediate
annuity shall be the deferred annuity described in the preceding sentence, less one-quarter of one percent (.25%) times the number of months preceding his or her normal retirement date.
(b) Prior to January 2, 2001, if the employee retires after achieving fifty-two (52) years of age and twenty-five (25) years of service, the immediate annuity shall be the actuarial
equivalent of the immediate annuity received had the employee retired at fifty-five (55) years of age with twenty-five (25) years of service. (Code 1958, § 21-50; Ord. No. 88-43, § 4,
9-21-88; Ord. No. 095.01, § 1, 2-21-95; Ord. No. 00-75, § 5, 1-2-01)
Sec. 18-115. Death before retirement date.
(a) Prior to January 2, 2001, in the event of death of an employee prior to the receipt by such employee of any of the benefits under the provisions of this article, then the total
amount of contributions by said employee to the fund, up to the time of his death, shall be paid to the beneficiary of the deceased employee, together with interest thereon at the rate
of three per cent (3%) per annum to January 1, 1977, and five per cent (5%) thereafter, computed in the manner provided in section 18-117, unless the employee has reached normal retirement
age and the retirement annuity option provided in section 18-118 has been elected by the employee, in which case pension payments will be made as though the employee had retired on the
date before he died.
(b) On or after January 2, 2001, in the event of the death of an employee prior to the receipt by such employee of any of the benefits under the provisions of this article, then the
beneficiary of the deceased
employee who was not vested, may receive the total amount of contributions by said employee to the fund, up to the time of his or her death, together with the interest thereon at the
rate of five percent (5%) per annum thereafter, computed in the manner provided in section 18-117. The beneficiary of an employee who became vested prior to their death may receive
the pension benefit earned by the employee as though the employee had retired on the date before (s)he died, payable either as an immediate lump sum payment or as a monthly survivor
benefit for the remainder of the survivor's life.
(1) The immediate lump sum payment is equal to the greater of the employee's contributions, together with the interest thereon at the rate of five percent (5%) per annum, or the lump
sum value of the actuarial calculation of the employees' accrued pension payable at the earliest date the employee could have retired.
(2) The monthly survivor benefit would be the actuarial calculation of the employee's accrued pension starting at the earliest date the member could have retired. If the beneficiary's
age is more than fifteen (15) years less than the employee's age at the time of death, then the monthly benefit will
be reduced as though the beneficiary was fifteen (15) years younger than the employee. The monthly survivor benefit is payable at the earliest date the employee could have retired.
(3) If the earliest date that the employee could have retired is before the normal retirement date, then the accrued death benefit will be subject to the early retirement penalty of
three percent (3%) for each year prior to what would have been the employee's normal retirement date.
(4) If the beneficiary selects to receive the monthly survivor benefit but predeceases the date such payments commence, the employee's estate shall receive a refund of the employee's
estate shall receive a refund
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of the employee's contributions, together with the interest thereon at the rate of five percent (5%) per annum.
(Code 1958, § 21-51; Ord. No. 00-75, § 6, 1-2-01; Ord. No. 02-027, § 2, 6-18-02)
Sec. 18-116. Death after retirement date.
In the event of the death of a retired employee prior to the receipt by said employee of benefits under this article in an amount equal to the total amount contributed by such employee
to the pension fund, together with interest thereon at the rate of three per cent (3%) per annum to January 1, 1977, and five per cent (5%) per annum thereafter computed to the date
of the employee’s retirement as provided in section 18-117, then the excess of such contribution plus interest to the date of retirement over the amount of the benefits received by such
employee under this section shall be paid to the beneficiary of such deceased employee unless the retired employee has elected the retirement annuity option provided in section 18-118
in which event benefits will be paid in accordance with such option. The designated beneficiary of an employee who retired prior to January 1, 1977, but who dies subsequent thereto,
shall be eligible to receivebenefits computed in accordance with the provisions of the plan in effect as of the date of such employee’s retirement. (Code 1958, § 21-52)
Sec. 18-117. Termination of services prior to eligibility for retirement.
In the case of voluntary resignation or discharge of any member of the plan, the total amount contributed by said employee to the fund up to the time of his resignation or discharge
(together with interest at the rate of three per cent (3%) per annum to January 1, 1977, and five per cent (5%) per annum thereafter compounded from the end of the year in which contributions
are made to the date of termination of service) shall be returned and said employee shall immediately cease to be a member of
the plan and shall not be entitled to any other benefits from the plan unless the member has completed five (5) years of credited service under the plan or is totally and permanently
disabled. If he has completed five (5) or more years of credited service or is totally and permanently disabled he shall be fully vested and entitled to a deferred annuity commencing
at his or her otherwise expected early or normal retirement date. The monthly amount of such deferred annuity shall be an amount computed in the same manner as the deferred annuity described
for early retirement in section 18-114. For the purpose of such calculation, the member’s date of termination of employment shall be considered as his early retirement date.
An employee who is entitled to a deferred annuity under the provisions of this section 18-117 may waive his right to such deferred annuity and accept in lieu thereof the total amount
he has contributed to the pension fund (together with interest thereon as described above) up to the time of his resignation or discharge.
In the event of resignation or discharge of any member as described in this section 18-117, any contributions theretofore made by the city relating to such member, with accruals thereon,
which have not vested in accordance with the provisions of this section 18-117, shall be used to reduce contributions to be made thereafter by the city and shall not be used to increase
the benefits of any member. (Code 1958, § 21-53; Ord. No. 00-75, § 7, 1-2-01; Ord. No. 13-035, § 4, 12-3-13)
Sec. 18-118. Retirement annuity option.
(a) At any time prior to or upon the date of normal retirement, a member may elect to receive annuity benefits payable under the plan with the approval of the pension board in the form
of a joint and survivor annuity instead of the normal annuity form, which shall be the actuarial equivalent of the annuity which he would normally receive. A member may rescind such
election at any time prior to his or her normal retirement date. Under the joint and
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survivor annuity, two-thirds (2/3) of the retirement annuity income continues to the surviving contingent annuitant, until his or her death. The election of a joint and survivor annuity
shall be deemed to be automatically cancelled in the event of the death of the joint annuitant prior to the member’s actual retirement.
(b) If a retired member has elected an option with a joint annuitant or beneficiary and his or her retirement income benefits have commenced, he or she may thereafter change the designated
joint annuitant or beneficiary with the approval of the Board of Trustees and the joint annuitant or beneficiary being removed. The retiree is required to provide proof of the good health
of the joint annuitant or beneficiary being removed, and the joint annuitant or beneficiary being removed must be living. Any retired member who desires to change his or her joint annuitant
or beneficiary shall file with the Board of Trustees a notarized notice of such change. Upon Board approval of a completed change of joint annuitant form or such other notice, the Board
of Trustees shall adjust the retiree’s monthly benefit by the application of actuarial tables and calculations developed to ensure that the benefit paid is the actuarial equivalent of
the present value of the retiree’s current benefit and there is no impact to the Plan. The actuarial calculation will include a five (5) year age adjustment to keep the cost actuarially
neutral. The Board will pay for the cost of the first recalculation of the benefit by the actuary; the retiree will be responsible for the cost of any subsequent recalculations. In the
event that no joint annuitant or designated beneficiary survives the retiree, there is no benefit payable unless the retiree has not received benefit which total or exceed the amount
of contributions made by the retiree. No retiree’s current benefits shall be increased as a result of the change of joint annuitant or beneficiary.
(Code 1958, § 21-54; Ord. No. 85-46, § 1, 9-3-85; Ord. No. 14-021, § 2, 9-16-14)
Sec. 18-119. Social Security option.
An employee who retires before he is entitled to receive monthly benefits under the Federal Social Security system may elect to receive increased pension plan benefits before Social
Security benefits begin, and decreased pension plan benefits thereafter to obtain, insofar as practical, a level total yearly retirement income from two (2) sources. The amounts he will
receive, both before and after he becomeseligible for Social Security payments, shall be the actuarial equivalent of the benefits to which he would have been entitled had he not selected
this option. (Code 1958, § 21-55)
Sec. 18-120. Member records; status statements; beneficiary designations.
(a) A separate record of account shall be maintained for each member and among other things shall show his service record, his accumulated contributions to the plan, his exact age,
his designation of beneficiary, together with any such information as is necessary for an active and comprehensive determination of his status under this plan.
(b) A member of the plan shall complete and file with the board a designation of beneficiary which names the person who is to receive any death benefits that may become payable under
sections 18-115 and 18-116 other than benefits paid to a surviving spouse. Such designation of beneficiary is to be completed by the employee at the time he initially becomes a member
of this plan. An employee who has failed to designate a beneficiary at the time of his initial membership in this plan may file a designation of beneficiary at any time thereafter. A
member may change his designation of beneficiary at any time by filing a new designation of beneficiary form. If a member has failed to file a designation of beneficiary, any death benefits
which would normally be paid to a designated beneficiary shall be paid in full to the first class of the following relative which has a member(s) (on a pro rata basis, if there is more
than one member):
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(1) The spouse married to the member on date of death;
(2) Dependent children of the member;
(3) The living parents of the member; or
(4) The estate of the member.
This payment operates as a complete discharge of all obligations of the fund under the plan and shall not be subject to review but shall be final, binding and conclusive on all persons
ever interested hereunder.
(Code 1958, § 21-56; Ord. No. 13-035, § 5, 12-3-13)
Sec. 18-121. Benefits unassignable and not subject to process.
The right of any member or any beneficiary to any benefits under the plan or any other right accrued or accruing to any persons under the provisions of the article shall not be subject
to execution, garnishment, attachment, the operation of any bankruptcy or insolvency law or any other process of law whatever, and shall not be subject to assignment, pledge or hypothecation
unless expressly authorized in this article. (Code 1958, § 21-57)
Sec. 18-122. Errors, corrections and adjustments.
Should any change or error in the records of the plan be discovered, or any error in any calculation be made resulting in any member or beneficiary receiving from the plan more or less
than he was entitled to receive, the council shall have the power to correct such error, and so far as possible to adjust the payments thereafter to be made in such a manner that the
actuarial equivalent of the benefit to which such member or beneficiary was correctly entitled, be paid. (Code 1958, § 21-58)
Sec. 18-123. No interest in the fund.
No member, employee, beneficiary or other persons shall have any interest in, or right in, or to the fund or any part thereof, or any assets comprising the same, except only as to the
extent expressed and provided in this article. (Code 1958, § 21-59)
Sec. 18-124. Payments in case of legal or other disability.
Whenever and/or as often as a person entitled to payments hereunder shall be under legal disability, or, in the sole judgment of the board, shall otherwise be unable to apply such payments
to his best interests and advantage, the board in the exercise of its discretion may direct that all or any portion of the benefits of such members payable in any one or more of the
following ways:
(a) Directly to such person;
(b) To his legal guardian or conservator;
(c) To his spouse, or to any person to be expended for his benefit.
The decision of the board shall, in each case, be final and binding on all persons including the affected member of the plan. (Code 1958, § 21-60)
Sec. 18-125. Re-employment of members receiving benefits or full vested who leave the city.
The city may at its option employ any person receiving benefits under this chapter, except for disability benefits.
(1) Re-employment full-time: A person who leaves the employ of the city after vesting or receiving a pension from any one of the city’s pension plans can be re-employed at the option
of the city on a full-time basis,
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provided they are no longer a member of the plan they are or will be receiving benefits from. A person who is re-employed shall be entitled to participate in the city’s pension plan
for his/her position provided he/she is otherwise eligible to join that plan pursuant to the plans’ provisions.
(2) Re-employment on a part-time basis: Said part-time employment shall not exceed one thousand six hundred (1,600) hours per year. During this period of part-time employment, the employee
shall not be allowed to make contributions to the pension fund nor shall such period of service count toward credit for the employee’s credible service nor in figuring the average final
compensation of the employee.
(Ord. No. 80-52, § 1, 12-16-80; Ord. No. 93-31, § 1, 9-7-93)
Sec. 18-126. Disability retirement benefits.
(a) Any member with less than 10 years of service who receives a medically substantiated injury, disease or disability, which injury, disease or disability totally and permanently disabled
him/her to the extent that, in the opinion of the Long Term Disability Company, he/she is unable to perform all the material duties of his/her occupation, and in the event of recovery
prior to the otherwise normal retirement date, and return to full-time employment with the City of Boynton Beach, credit for service during the period of disability shall be granted
for purposes of subsequent retirement benefits.
(b) For purposes of this plan, if the employee is found to be totally and permanently disabled by the city’s Long Term Disability Company, the employee will be deemed to be totally
and permanently disabled under the Plan. If the employee disagrees with the Long Term Disability Company’s determination, an appeal must be made to the Pension Board in a timely manner.
The Board shall conduct a preliminary
determination as to whether the member is permanently and totally disabled based upon the written documentation presented. If the Board does not grant the application based on the written
documentation, it shall inform the member in writing of the reasons for the denial of the application. The member may, within 30 days of receipt of the Board’s preliminary denial, request
a full evidentiary hearing before the Board. Said hearing will be conducted consistent with the principles of due process and the rules of evidence generally applicable to administrative
proceedings shall apply. The Board shall have the power to issue subpoenas compelling the attendance of witnesses. At said hearing the applicant may present such oral and written evidence
as the applicant deems necessary to establish its burden of proof. The Board may appoint special counsel as an advocate to cross-examine witnesses and to offer argument in opposition
to the application. The attorney for the Board shall not serve both as advocate and as advisor to the Board in the same
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Pensions and Retirement 17
proceeding. The applicant and the Board shall have the right to examine and cross-examine all witnesses. The decision of the Board shall be based solely upon the evidence presented
and the law applicable to this plan. Following the conclusion of the hearing, the Board shall render an opinion in writing setting forth the reasons for the grant or denial of the benefit.
In the event the disability is denied, the applicant shall have the right of judicial review by complaint for common law certiorari in the Circuit Court of Palm Beach County. The Board
may prescribe rules of procedure to implement the provisions of this plan relating to the conduct of disability hearings.
(c) Disability exclusions. No member shall be granted a disability pension upon a showing to the satisfaction of the Board:
1. That the disability resulted from an intentionally self-inflicted wound, injury or ailment, or
2. That the disability resulted from the use of narcotics, drugs or alcoholic beverages, or
3. That the disability resulted from a member’s participation or involvement in riot, insurrection or unlawful assembly, or
4. That the disability resulted from a member’s participation or involvement in the commission of a crime or unlawful act, or
5. That the disability resulted from injury or disease sustained by the member while serving in any armed forces. This exclusion does not affect members who have become disabled as
a result of intervening military service under the federal Heroes Earnings Assistance and Relief Tax Act of 2008 (H.R. 6081; P.L. 110-245).
(Ord. No. 99-14, § 2, 6-1-99; Ord. No. 10-006, § 8, 2-16-10)
Sec. 18-127. Deferred retirement option plan.
(a) A deferred retirement option plan (“DROP”) is hereby created.
(b) Eligibility to participate in the DROP is based upon eligibility for normal service retirement in the plan.
(c) Participation in the DROP must be exercised within the first 30 years of employment; provided, however, that participation in the DROP, when combined with participation in the retirement
plan as an active member may not exceed 35 years. The maximum period of participation in the DROP is five years. An employee’s election to participate in the DROP plan shall be irrevocable
and shall be made by executing a resignation notice on a form prescribed by the city.
(d) Upon exercising the right to participate in the DROP, an employee’s creditable service, accrued benefits and compensation calculation shall be frozen and shall utilize the average
of the five highest of the ten years immediately preceding participation in the DROP as the compensation basis. Accumulated, unused sick and vacation leave shall be included in the compensation
calculation as provided for and limited by the definition of annual earnings; provided, however, that a minimum balance of 120 hours of sick leave and 120 hours of vacation leave shall
be maintained by the employee and excluded from this calculation. The retained leave balance, including any additions, shall be distributed at the conclusion of DROP participation and
separation from service. In accordance with the definition of annual earnings, the accumulated sick and vacation leave that is includable in the compensation calculation will phase
out but hours may still be transferred up to the maximum permitted by the Code, provided the minimum number of sick and vacation leave remains on the books.
(e) Payment shall be made into the employee’s DROP account as if the employee had terminated employment in the city in an amount determined by the employee’s selection of the payment
option.
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(f) An employee’s account in the DROP program shall earn interest in one of three ways. The selection of the earnings program shall be 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 1, however, the method
must be elected prior to January 1 on a form provided by the Board of Trustees. The options are:
(1) Gain or lose interest at the same rate as the plan;
(2) At an annual fixed rate of 7%; or
(3) 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 7%. The actual percentage shall be selected by the member on a form provided by the Board of Trustees. The total of the two 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 fund as a whole.
(g) An employee shall terminate service with the city at the conclusion of five years in the DROP.
(h) All interest shall be credited to the employee’s DROP account on the last day of the month in which the member separates from service. In the event that a member dies while in the
DROP, interest shall be prorated to the last business day of the month preceding the death of the member.
(i) Upon termination with the city, an employee may receive payment within 45 days of the member requesting payment or may defer payment until a time not later than the latest date
authorized by Section 401(a)(9) of the Internal Revenue Code at the option of the member.
(j) Payments from the DROP may be received as a lump sum installment payment or annuity, provided, however, that at all times, the DROP shall be subject to the provisions of the Internal
Revenue Code.
(k) No payment may be made from the DROP until the employee actually separates from service with the city.
(l) If an employee shall die during participation in the DROP, a survivor benefit for the monthly pension amount shall be payable in accordance with the form of benefit chosen at the
time of entry into the DROP. An employee entering into the DROP or a member participating in the DROP post employment may designate a beneficiary(ies) to receive payment of the DROP
balance in a lump sum upon his or her death in accordance with sections 18-118 and 18-120. In the absence of the designation of a beneficiary, the remaining balance shall be paid in
full to the first class of the following relative which has a member(s) (on a pro rata basis, if there is more than one member): the spouse married to the member on date of death; dependent
children of the member; the living parents of the member; or the estate of the member. This payment operates as a complete discharge of all obligations of the Fund under the Plan and
shall not be subject to review but shall be final, binding, and conclusive on all persons ever interested hereunder.
(m) Upon commencement of participation in the DROP, the member shall no longer be eligible for disability retirement from the pension plan. If a member becomes disabled during the
DROP period, the member shall be treated as if he or she retired on the day prior to the date of disability.
(n) Notwithstanding the provisions of Section 18-125 of this plan. Participants in the DROP must terminate employment and participation in the DROP before any re-employment may occur.
(Ord. No. 00-75, § 8, 1-2-01; Ord. No. 02-028, § 2, 6-18-02; Ord. No. 04-053, § 2, 8-3-04; Ord. No. 13-035, §§ 6-7, 12-3-13; Ord. No. 14-021, § 3, 9-16-14)
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Sec. 18-128. Elective benefits.
(a) Effective February 16, 2010, members will no longer be able to enroll in elective benefits. Elective benefits were offered to the members of this plan and were voluntary elections,
the costs of which are borne entirely by the member through payroll deductions during their employmentwith the city. Such deductions are taxable dollars at the time the deduction is
made. Members who were enrolled in elective benefits as of February 16, 2010 may continue to participate in these benefits or elect to cancel participation. The employee contributions
used to purchase such elective benefits shall be accounted for separately and are non-forfeitable.
(b) Open enrollment. A member may elect to cancel an elective benefit only during the open enrollment period as provided by the Board of Trustees. Contributions shall be reimbursed
to the member on cancellation of the elective benefit and shall only be refunded for the elective benefit canceled. No interest earnings will be applicable to the premiums contributed
or to the refunded amount. The cancellation of such elective benefit is irrevocable.
(c) Costs. The costs for all elective benefits are borne by the member through payroll deductions during employment with the city.
(d) In the event of death before retirement of any participant, all premiums paid shall be refunded to the beneficiary. If the employee was eligible for normal retirement and the retirement
annuity option had already been selected by the employee, the deceased member’s earned pension amount will be actuarially reduced to a joint and survivor form and two-thirds of this
amount will be paid to the survivor for his or her lifetime. For the 25-year retirement at any age benefit option, the retirement factor used shall be the factor which provides the
most benefit to the employee.
(e) Elective benefits. There were four elective benefits options. The elective benefit options were as follows:
(1) Option 1A - health insurance subsidy.
a. The health insurance subsidy will provide a monthly benefit up to $200 per month upon normal retirement. In the event of death prior to retirement, where the member is eligible
for normal retirement and the retirement annuity option has been elected by the employee, the $200 per month will be actuarially reduced to a joint and survivor form of benefit and
two-thirds of this amount will be paid to the survivor for his or her lifetime.
b. The amount to be received for the health insurance subsidy at retirement is based on years of contributions by the employee. The full benefit of $200 per month is based upon 25
years of employees contributions. A prorated benefit will be provided for years of contributions less than 25 years.
Illustration for prorated health insurance subsidy:
Member age @ hire 30
Member age @ retirement 55
Years of premium payment 5
(5yrs/25yrs = 20%)
Monthly benefit $40
($200 subsidy x 20%)
Based upon this illustration, the employee contributed for five years which represents 5/25, or 20% of the full benefit calculated period. Therefore, the health insurance subsidy at
normal retirement would be 20% of $200, or $40.
(2) Option 1B - health insurance subsidy with 2% per year COLA.
(a) The health insurance subsidy with 2% cost of living adjustment (“COLA”) will provide an initial monthly benefit up to $200 per month at normal
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retirement in 1999. In the event of death prior to retirement, where the member is eligible for normal retirement, and the retirement annuity option has been selected, the $200 per
month will be actuarially reduced to a joint an survivor form of benefit and two-thirds of this amount will be paid to the survivor for his or her lifetime. The $200 per month will beindexed
by 2% per year, compounded for all affected members.
(b) The amount to be received for the health insurance subsidy with 2% COLA at retirement is based upon years of contributions by the employee. The full benefit of the indexed insurance
subsidy per month is based upon 25 years of employee contributions. A prorated benefit will be provided for years of employee contributions less than 25 years.
Illustration for prorated health insurance subsidy with 2% COLA:
Member age @ hire 30
Member age @ retirement 55
Years of premium payment 8
(8yrs/25yrs = 32%)
1st year monthly benefit $64
($200 subsidy x 32%)
2nd year monthly benefit $65.28
($204 subsidy x 32%)
(3) Option 2 – Cost-of-Living Adjustment (“COLA”). The cost of living adjustment (“COLA”) provides a 5% deferred COLA commencing five years after retirement and compounded with additional
5% increases every three years thereafter. Spouse benefits, if elected, would also be eligible for the COLA, but the actuarial equivalent factors at retirement for conversion to the
joint and two-third survivor benefit would need to be updated. A prorated benefit will
be provided for years of employee contributions less than 25 years.
Illustration of the Cost-of-Living Adjustment (COLA):
Member age @ hire 50
Member age @ retirement 62
Years of premium payment 12
(12yrs/25yrs = 48%)
COLA Benefit 2.4%
(5% COLA x 48%)
An employee that made full contributions for this elective benefit option would receive a 5% COLA. Since the illustrated employee contributed 12 years toward the COLA it has been prorated
to 2.40% which represents 48% of the fully contributed percentage.
(4) Twenty-five-year service requirement (any age). The 25-year service requirement (any age) would allow the employee to retire with 25 years of service, regardless of age. This
option will provide an increase in the early retirement factors based upon years contributed. The cost will be actuarially adjusted on an annual basis. A prorated benefit will be provided
for years of employee contributions less than 25 years. The factors used for retirement based upon years of service are as follows:
25 years 72.51% of calculated benefit
26 years 76.91% of calculated benefit
27 years 81.81% of calculated benefit
28 years 87.36% of calculated benefit
29 years 93.41% of calculated benefit
30 years 100.00% of calculated benefit
Illustration of the 25-year service requirement (any age):
Member age at hire 20
Member age at retirement 45
(25 yrs of service)
Years of premium payment 5
(5 yrs/25yrs = 20%)
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Average pay while contributing $29,700
Percentage cost per year 1.89%
Aggregate premium $2,807
ER factor 72.51%
Adjusted ER factor 78.01%
(27.49 diff (@ 20%)
(Adjusted factor of 72.51% + Differential of (100.00-72.51) x 20%)
(Ord. No. O06-027, § 2, 4-4-06; Ord. No. 10-006, § 9, 2-16-10; Ord. No. 10-028, § 11, 11-3-10)
Secs. 18-129—18-134. Reserved.
DIVISION 5. ADMINISTRATION OF THE
PLAN
Sec. 18-135. Board of Trustees.
(a) Composition of the Board. The composition and terms of the seven members of the Board of Trustees of the Employees’ Pension Plan of the city are hereby established as follows:
(1) The Mayor.
(2) The City Manager, or his or her designee. The appointment of a City Manager designee by the City Manager shall be ratified by the City Commission.
(3) Two individual citizens who shall be appointed by the City Commission to serve for four-year staggered terms.
(4) One employee representative member shall be elected at-large by the members of the plan to serve a four-year term.
(5) One employee representative member shall be elected to serve a four-year term by all members of the plan from the general membership of the plan, provided the member is a member
of a bargaining unit of the city.
(6) One employee representative member shall be elected to serve a four-year term by all members of the plan from the general membership of the plan, provided the member is not a member
of a bargaining unit of the city.
(7) Employee representatives on the Board must be actively employed at the city to be elected to the Board. An employee who enters the DROP as provided in section 18-127, may continue
to serve out the remainder of their term on the Board, but an employee representative may not be elected to the Board if they have already entered into the DROP prior to the election.
(8) The terms of the employee representatives on the Board shall be staggered.
(b) Vacancies.
(1) If an elective seat on the Board is vacated for any reason, an election to fill the vacated position shall be conducted. However, if an elected Board member retires before the
expiration of their term, such Board member may continue to hold such elective seat for the balance of their elected term.
(2) If an appointive seat on the Board is vacated for any reason, the seat shall be filled by appointment by the appointing body.
(3) A replacement member shall serve on the Board for the unexpired term of the person replaced.
(c) Conduct of elections.
(1) The Board of Trustees shall be elected by a per capita vote of all employees, retirees and individuals who are on approved disability leave. The candidate(s) receiving 50% plus
one of the votes shall be declared elected and shall take office as soon thereafter as qualified.
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18D Boynton Beach Code
a. Such election shall be conducted by first class mail. Such mailing shall include:
1. A letter of instruction written in a manner calculated to be understood by the average recipient;
2. A ballot approved by the Board;
3. A Board approved form which contains a description of each candidates’ profile or description of qualifications which has been submitted to the pension office by the candidate
no later than 30 days prior to an election; and
4. A postage paid return envelope.
b. Mail ballots must be received in the return envelope by the deadline provided by the Board.
c. All ballots shall be received and counted under the supervision of the Pension Administrator or other designee(s) of the Board.
d. Only one ballot per member shall be permitted.
(2) The Board may rely on the address maintained by the city’s Human Resource Department as accurate and current with respect to persons entitled to vote for the purposes of notice
and mailing ballots.
(3) Notice of the election shall be provided to all qualified persons entitled to vote in person, by mail and by notice posted on city bulletin boards and included with members paychecks
and pension or disability checks 90 days in advance of an election. Candidates may register to run for a position on the Board 60 days prior to the conduct of the election. The ballots
shall be mailed out 30 days prior to the election date.
(4) The results of the election shall be placed on the next Board agenda immediately following the election for certification of the election results.
(Ord. No. 06-026, § 2, 4-4-06; Ord. No. 07-022, § 2, 9-4-07; Ord. No. 10-006, § 10, 2-16-10)
Sec. 18-136. Compensation of Board.
The members of the Board shall serve without compensation for their services.
(Code 1958, § 21-62)
Sec. 18-137. Meetings of Board; quorum, vote
required.
This plan or any matter herein may be considered and disposed of at any Board meeting. A majority of the membership shall constitute a quorum and all decisions, acts and resolutions
of the Board shall be by affirmative vote of at least three members.
(Code 1958, § 21-63)
Sec. 18-138. Administrative regulations
authorized; distribution.
The Board by resolution may promulgate written rules and regulations not in conflict with the expressed terms of this article or the charter to cover the operation of any phase or part
of the plan as provided by this article. Copies of such rules and regulations shall be furnished to any member of the plan upon request and at least one copy thereof shall be kept available
in the office of the City Clerk for examination by any interested persons at any time during ordinary business hours. Otherwise, a copy of this article shall fully meet the provisions
herein. (Code 1958, § 21-64)
Sec. 18-139. Board to interpret plan.
The Board has the power to construe all terms, rules, conditions and limitations of the plan, and its construction made in good faith shall be final and conclusive upon all parties’
interests.
(Code 1958, § 21-65)
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Sec. 18-140. Agents and employees.
The Board shall have the power to select, employ and compensate, or cause to compensate from time to time such consultants, actuaries, accountants,
attorneys, investment counsel and other agents and employees as they may deem necessary and advisable in the proper and efficient administration of the plan. (Code 1958, § 21-66)
Sec. 18-141. Powers and duties not exclusive.
The powers and duties of the Board or of any other persons as set out herein are not intended to be complete or exclusive but each such body or persons shall have such powers and duties
as are reasonably implied under the terms of this article. Where not in conflict with this article, or the charter, the trust agreement or contract entered into with the insurance company,
shall govern. (Code 1958, § 21-67)
Sec. 18-141.1. Application for benefits;
procedure.
Any party who seeks benefits under the provisions of this chapter shall initiate his or her request by filing a written application with the secretary of the Board of Trustees of the
pension plan. (Ord. No. 80-53, § 1, 12-16-80)
Editor’s note—Ord. No. 80-53, § 1, amended 1958 Code by adding provisions designated § 21-67.5 which provisions have been included herein as § 18-141.1.
Sec. 18-142. Secretary of board designated.
The City Clerk or Deputy Clerk shall be secretary to the Board under this plan. (Code 1958, § 21-68)
Sec. 18-143. Duties of the secretary.
It shall be the duty of the secretary to keep accurate minutes and records of the acts of the Board under this plan separate and apart from the regular minutes of City Council meetings.
This provision is made for the express purpose of having all proceedings in connection with this plan in one set of books, thereby saving going through all of the minutes of the various
board meetings. They shall be available to the public, city officials and employees under this plan at all times.
It shall be further the duties of the secretary to receive all applications for benefits under this chapter from the applicants, to maintain files on said application and to give reasonable
written notice to the applicant of all meetings and hearings of the Pension Board on any party’s request for benefits pursuant to this chapter. (Code 1958, § 21-69; Ord. No. 80-53, §
2, 12-16-80)
Sec. 18-143.1. Consideration of application
for benefits.
Upon receipt of an application for benefits, pursuant to this chapter, the secretary of the Board shall set the matter for an initial determination by the board of a party’s eligibility
for benefits pursuant to this chapter. The party seeking benefits shall be given reasonable notice of this meeting and shall have an opportunity to present any relevant information to
the board at that time. The Board may either award benefits at that time, seek further information, or make an initial determination that benefits pursuant to this chapter shall be denied.
If the Board makes an initial determination of denial it shall instruct the City Attorney to inform the applicant, in writing, of the reasons for said denial, and give the applicant
30 days to request a full hearing before the board to determine the applicant’s eligibility for benefits under this chapter.
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18F Boynton Beach Code
The Board shall hold a full hearing within 30 days of a request for the same by the applicant. All relevant evidence shall be received by the Board at the time of the hearing. At the
close of the full hearing the Board shall make a final determination of the applicant’s eligibility for benefits under the chapter.
Any party grieved by the Board’s decision shall have 30 days to file a petition for writ of certiorari with the court. (Ord. No. 80-53, § 3, 12-16-80)
Editor’s note—Section 18-143.1 is derived from Ord. No. 80-53, § 3 which amended Code 1958 by adding provisions designated § 21-69.5.
Sec. 18-144. Preservation of records; notices to
trustee.
All notices, elections, designations and changes of beneficiaries and similar writings pertaining to the operation of the plan shall be made and preserved in writing on such forms as
the Board may direct. The secretary shall maintain all records in segregated files pertaining to the plan and they shall not be inter-mingled with other files of the city. Whenever there
is any notice, election, designation, complaint, ruling or other written proceedings relating to a particular employee, the secretary shall furnish the trustee or the insurance company,
when necessary, with a copy of same, as well as the employee.
(Code 1958, § 21-70)
Sec. 18-145. City of Boynton Beach Investment Policy for General Employees’ Pension Fund.
(a) General. The Board of Trustees of the Boynton Beach General Employees’ Pension Fund has established this Statement of Investment Policy. This policy has been identified by the Board
as having the greatest expected investment return, and the resulting positive impact on asset values, funded status, and benefits, without exceeding a prudent level of risk. The Board
determined this policy after evaluating the implications of increased investment return versus increased variability of return for a number of
potential investment policies with varying commitments to stocks and bonds.
(b) Purpose. The purpose to this section is to:
(1) Provide the investment manager a more accurate understanding of the trustees’ investment objectives; and
(2) Indicate the criteria by which the investment manager’s performance will be evaluated.
(c) Investment manager responsibilities.
(1) Within the guidelines and restrictions set forth herein, it is the intention of the Board to give the investment manager full investment discretion, with respect to assets under
its management. The investment manager shall discharge its responsibilities in the same manner as it would if the fund were governed by the fiduciary, responsibility provisions of the
Employee-Retirement Income Security Act of 1974 (ERISA). Although the fund trustees acknowledge that ERISA does not apply to a governmental fund, it hereby imposes the fiduciary provisions
of ERISA upon the investment manager whose performance shall conform to the statutory provisions, rules, regulations, interpretations, and case law of ERISA. The investment manager shall
acknowledge, in writing, that it is a named fiduciary of the fund.
(2) The investment manager is expected to provide any reasonable information requested by the Board of Trustees. At a minimum, each manager shall provide a quarterly report detailing
their investment activity, the portfolio’s current value, and any changes in investment philosophy or strategy. The firm’s investment manager is expected to meet with the Board of Trustees
at least once per year. A designated representative will meet with the Board of Trustees, at least quarterly. A designated
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Pensions and Retirement 18G
representative of a mutual fund company is not required to attend meetings with the Board of Trustees.
(3) Unless otherwise provided by the custodian, the investment manager will monitor portfolio activity to minimize uninvested cash balances.
(4) The investment manager shall be responsible only for those assets under its management.
(5) It will be the responsibility of the investment manager to review the monthly valuations provided by the custodian and to note, in writing, any significant discrepancies from the
valuations provided in their own reports.
(d) General objectives.
(1) The primary investment objective of the Boynton Beach General Employees’ Pension Fund is the preservation of invested capital. The secondary objective is to achieve moderate long-term
real growth (after inflation) while minimizing the volatility of returns.
(2) To achieve these objectives, the Board seeks to create a well-diversified and balanced portfolio of high quality equity, fixed income and money market securities. The Board has
determined that one or more outside investment managers shall be retained to assure that all investments are managed in both a prudent and professional manner and in compliance with
the state investment guidelines.
(e) Investment objectives.
(1) Investment objectives are intended to provide quantifiable benchmarks to measure and evaluate portfolio return and risk. Most investment styles require a full market cycle to allow
an investment manager to demonstrate his or her abilities. A full
market cycle is generally defined as a three to five year period. As a result, performance objectives will be measured over three to five year periods. Monitoring shorter periods
may be used to determine the trend of performance premiums or deficiencies.
(2) The specific objectives of the Boynton Beach General Employees' Pension Fund are as follows:
a. Primary objective:
1. To earn an average rate of return over the long term (three to five years) which exceeds the return of a Target Index. The Target Index for the Boynton Beach General Employees’
Pension Fund is defined as a 55% investment in the Russell 1000 Stock Index, a 10% investment in the Russell 2000 Stock Index, a 20% investment in the MSCI Europe Austrailasia and Far
East Stock Index (EAFE), a 10% investment in the NCREIF Property Index, and a 25% investment in the Barclays Capital Aggregate Bond Index.
2. In addition, it is expected that the total rate of return earned will rank above average when compared to a representative universe of other, similarly managed portfolios.
b. Secondary objective: A further goal of the Boynton Beach General Employees’ Pension Fund shall be to achieve an average annual rate of return greater than the absolute return of
8%, over the longer term. This absolute return objective will be evaluated in the context of the prevailing investment market conditions.
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18H Boynton Beach Code
c. Volatility: The volatility of the fund’s total returns is expected to be similar to that of the Target Index and will be evaluated accordingly.
(3) The investment objectives set forth herein have been established for the entire Boynton Beach General Employees’ Pension Fund. The specific investment objectives for each investment
manager will be outlined in separate documents which will be addenda hereto and incorporated herein to this overall statement of investment policy.
(f) Investment guidelines.
(1) The Board of Trustees has established the following target asset allocation for the entire Boynton Beach General Employees’ Pension Fund:
Target
Allocation
(at market)
Target
Range
(at market)
Equity securities
Domestic equity
Foreign equity
45%
20%
30% - 60%
5% - 25%
Fixed income & equivalents
Fixed income
Direct real estate
25%
10%
20% - 70%
5% - 15%
Cash equivalents
0%
0% - 10%
(2) To implement this strategy, the Board has chosen to hire one or more professional investment managers. Specific assignments and additional guidelines for each investment manager
will be outlined in addenda to this section. The following guidelines and restrictions apply to all fund investments.
(3) In accordance with the policies established by the Board of Trustees, the assets of the Boynton Beach General Employees’ Pension Fund shall be invested in a diversified portfolio
of fully negotiable, equity, fixed
income, and money market securities, provided they meet the following criteria:
a. Equity securities:
1. Investments in equity securities shall be limited to no more than 75% at market valuation or 65% at cost valuation of the fund’s total asset value;
2. All equity investments shall be limited to fully and easily negotiable equity securities;
3. No more than 5% at cost value of an investment manager’s equity portfolio may be invested in the shares of a single corporate issuer;
4. Investments in stocks of foreign companies shall be limited to 25% (at market) of the total investment portfolio. American Depository Receipts (ADRs) and foreign ordinary securities
traded on domestic exchanges are United States dollar-denominated securities listed and traded on a United States exchange and are considered part of the ordinary investment strategy
of the Board. These securities are not considered foreign securities;
5. Investment in those corporations whose stock has been publicly traded for less than one year are limited to 15% of the equity portfolio; and
6. Equities may be managed through the purchase of open-end, no-load mutual funds, exchange traded funds, or commingled funds. Those securities/funds purchased directly by investment
advisors are
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Pensions and Retirement 18I
expected to adhere to the guidelines herein. The Board implicitly accepts the policy of a mutual or commingled fund when it makes a direct investment.
b. Fixed income securities:
1. The fixed income portfolio shall comply with the following guidelines:
(A) The average credit quality of the fixed income portfolio shall be rated “A” or higher; and
(B) The duration of the fixed income portfolio should be less than 135% of the duration of the market index. The market index is defined as the Barclays Capital Aggregate Bond Index.
2. Investments in all corporate fixed income securities shall be limited to:
(A) Those securities rated “BAA” or higher by Moody’s or by Standard & Poor’s rating services. Fixed income securities, which are downgraded below the minimum rating, shall be sold
at the earliest beneficial opportunity;
(B) Securities issued 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; and
(C) No more than 10% at cost of an investment manager’s total fixed income' portfolio shall be invested in the securities of any single corporate issuer.
3. Investments in Collateralized Mortgage Obligations (CMOs) shall be limited to 15% of the market value of the investment manager’s total portfolio and shall be restricted to issues
which meet all of the following criteria:
(A) All issues must be backed by mortgage securities issued, guaranteed, or fully insured by the Government National Mortgage Association (GNMA), the Federal Home Loan Mortgage Corporation
(FHLMC), the Federal National Mortgage Association (FNMA) or that are rated “Aaa” by Moody’s or “AAA” by Standard & Poor’s rating services.
4. There is no limit imposed on investments in fixed income securities issued directly by the United States government or any agency or instrumentality thereof.
5. Fixed income securities may be managed through the purchase of open-end, no-load mutual funds or commingled funds. Those securities/funds purchased directly by investment advisors
are expected to adhere to the guidelines herein. The Board implicitly accepts the policy of a mutual or commingled fund when it makes a direct investment.
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c. Cash equivalent securities:
1. The investment manager may invest only in the following short-term investment vehicles:
(A) The money market or STIF provided by the plan’s custodian;
(B) Direct obligations of the United States government with a maturity of one year or less;
(C) Commercial paper with a maturity of 270 days or less that is rated A-1 or higher by Standard & Poor’s or P-1 or higher by Moody’s; and
(D) Bankers acceptances issued by the largest 50 banks in the United States (in terms of total assets).
(4) Prohibited investments. Investments in interest only or principal only CMOs, precious metals, limited partnerships of any kind, direct investment in real estate, repurchase agreements,
venture capital, futures contracts, options contracts, municipal bonds, trading on margin and short selling are prohibited. Investments not specifically addressed in this section are
considered prohibited investments.
(5) Review of policy. It is the intention of the Board of Trustees of the Boynton Beach General Employees’ Pension Fund to review this statement of investment policy and its addenda
periodically to amend it to reflect any changes in philosophy or objectives. However, if at any time the investment manager believes that the specific objectives
defined herein cannot be met or that these guidelines unnecessarily constrict performance, the Board shall be so notified in writing.
(Code 1958, § 21-71; Ord. No. 80-16, § 1, 4-1-80; Ord. No. 94-56, § 1, 1-3-95; Ord. No. 00-74, § 3, 1-2-01; Ord. No. 04-069, § 2, 8-3-04; Ord. No. 10-006, § 11, 2-16-10)
Sec. 18-145.1. Reserved.
Sec. 18-146. Annual reports by trustee or
insurance company.
The trustee or insurance company or companies with which a trust agreement or contract or contracts are entered into for the administration of the plan shall submit a statement of the
condition of the funds on deposit to the credit of the plan at least once yearly, and may be required to supply copies of such statements to an actuarial consultant designated by the
board. The original shall be retained among the records of the secretary of the Board.
(Code 1958, § 21-72)
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Sec. 18-147. Actuarial review and services.
The Board shall employ an actuary to review the operation of the plan at intervals of not more than two years, and to make his or her recommendations to the Board as to the actuarial
solvency of the plan, the amount of the city’s contributions to the fund which in his or her opinion is necessary to be made from the current operation of the plan, what benefits the
plan can afford to pay on the basis of accumulated contributions to the plan, and current rates of contribution, and such other information as the Board may require. The actuary’s report
shall be submitted in writing and copies thereof shall be available to members of the plan upon request. The Board may also retain said actuary or some other actuary as a consultant,
and provide for compensation for services.
(Code 1958, § 21-73)
Sec. 18-148. Adoption of tables.
In making any actuarial computation provided in this article, the tables, charts and other statistical information shall be selected by the Board from standard sources in common use
by other annuity and pension plans, including but not limited to those operated by governmental bodies in the United States of America, or by the United States Internal Revenue Service.
(Code 1958, § 21-74)
Sec. 18-149. Responsibilities of members and
beneficiaries.
Each member or beneficiary or other interested member shall be responsible for advising the Board of his or her current mailing address, and promptly advising the Board relating to
any error, in whosoever’s favor, in connection with the payment of benefit or any other payment under or in connection with the plan.
(Code 1958, § 21-75)
Sec. 18-150. Interest on delayed payments.
Pension payments, although not promptly paid for any reason, and any other payments to be made out of the fund, although not paid promptly for any reason, shall not bear interest unless
so ordered by the Board, who shall have discretion to fix the rate and calculate any such interest, and in such event, the interest to be paid shall not exceed the then current rates
of interest being returned on the funds on deposit with the trustee or the insurance company, or other financial institution.
(Code 1958, § 21-76)
Sec. 18-151. Personal liability.
Each member of the Board shall use ordinary care and diligence in the performance of his or her duties and shall not be liable for any loss unless resulting from his or her own gross
negligence, or his or her willful misconduct; nor shall such members be personally liable upon or with respect to any agreement, act, transaction or omission executed, committed himself
or herself as one or a member of said body or by any other member, agent, representative, or employee of any body; moreover said bodies and members and agents thereof shall each be fully
protected in relying on the advice of the city attorney or his or her assistants, or upon any other attorney employed by the city, or said bodies, or either of them insofar as legal
matters are concerned, or any accountant similarly employed insofar as accounting matters are concerned, and of any actuaries similarly employed so far as actuarial matters are concerned.
Any person having any claim under the plan shall look solely to the assets of the fund for the satisfaction of such claims.
(Code 1958, § 21-77)
Sec. 18-152. Small annuities; lump sum
payments.
(a) Whenever any retirement annuities shall be less than $10 per month, the Board may elect to have payments made quarterly. If the annuity payable at
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quarterly intervals shall be less than $10, the Board may elect to pay the commuted value of the same, calculated at regular interest, in one lump sum. Such election shall be made within
six months after the member’s retirement unless he or she consents in writing to a subsequent election by the Board under this section.
(b) In the event of a mandatory distribution pursuant to subsection (a) is in excess of $1,000 and the member does not elect to receive the distribution directly then the Board shall
make a transfer to an individual retirement plan of the Board's choosing and shall notify the member in writing of such transfer.
(Code 1958, § 21-78; Ord. No. 10-028, § 12, 11-3-10)
Sec. 18-153. “Filing” defined.
Where any notice election or other instrument is required or permitted by this article to be filed with the Board, the same may be filed with its secretary.
(Code 1958, § 21-79)
Sec. 18-154. Qualified pension fund.
(a) The city intends the pension fund to be a qualified plan under Section 401 of the Code, as amended, and that the trust be an exempt organization under Section 501 of the Code. The
Board of Trustees shall administer the pension fund so as to fulfill this intent.
(b) 415(b) Internal Revenue Code Limits
(1) Basic Limitations. Notwithstanding anything to the contrary in this plan, the provisions of Section 415 and its regulations are hereby incorporated by reference into this plan.
Subject to the adjustments in Code Section 415, the maximum amount of the actual annual retirement income paid in any year with respect to a participant under this plan attributable
to employer provided benefits shall not exceed the dollar amount allowable for any calendar year pursuant to
Section 415(b) of the Code, as adjusted in such calendar year for increases in the cost of living in accordance with regulations issued by the Secretary of the Treasury under Section
415(d) of the Code. For purposes of applying the basic limitation, benefits payable in any form other than a straight life annuity with no ancillary benefits shall be adjusted, as provided
by Treasury Regulations, so that such benefits are the actuarial equivalent of a straight life annuity. For purposes of this subsection Article, the following benefits shall not be
taken into account:
(A) Any ancillary benefit which is not directly related to retirement income benefits;
(B) Any other benefit not required under Section 415(b)(2) of the Code and Treasury Regulations thereunder to be taken into account for purposes of the limitation of Section 415(b)(1)
of the Code.
(2) For purposes of applying the limitations of Code Section 415(b), compensation includes those items as set forth in Reg. 1.415-2(d). This definition specifically includes the crediting
of compensation while absent from service for military duty; such crediting shall not exceed the compensation that would have been credited under the System if System services had continued.
(c) Should the Code Section 414(h)(2) member contributions or the elective contributions made in accordance with plan section 18-128 be in excess of the required contribution, then
such contributions shall be disbursed as a corrective disbursement pursuant to the requirements of Code Reg. Section 1.415-6(b)(6)(iv). This provision applies to limitation years prior
to July 1, 2007.
(d) For distributions after December 31, 2002 for purposes of Code Section 415(b), the mortality table is the table used under Code Section 417(e) as
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prescribed by the Secretary of the Treasury in Rev. Ruling 2001-62.
(e) 401(a)(9) Required Distributions
(1) Effective for distributions after December 31, 1996, in accordance with IRC Section 401(a)(9), including the minimum distribution incidental benefit requirements of section 1.401(a)(9)-2
and including the incidental death benefit of Code Section 401(a)(9)(G), all benefits under this plan will be distributed, beginning not later than the required beginning date set forth
below, over a period not extending beyond the life expectancy of the member or the life expectancy of the member and a beneficiary.
(2) Any and all benefit payments shall begin by the later of:
A. April 1 of the calendar year following the calendar year of the member's retirement date; or
B. April 1 of the calendar year following the calendar year in which the member attains age 70½.
(3) If an employee dies before his entire vested interest has been distributed to him, the remaining portion of such interest will be distributed at least as rapidly as provided for
under this plan and will comply with the incidental death benefit under Code Section 401(a)(9)(G).
(4) Notwithstanding any provisions of this plan to the contrary, all distributions under this plan will be made in accordance with this section. Code Section 401(a)(9) and the regulations
thereunder (Reg. Sections 1.401(a)(9)-2 through 1.401(a)(9)-9), effective beginning January 1, 2003.
(f) 401(a)(31) Rollovers
(1) Direct transfers of eligible rollover distributions.
A. General. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's
election under this subsection, a distributee may elect, at the time and in the manner prescribed by the board of trustees, to have any portion of an eligible rollover distribution paid
directly to an eligible retirement plan specified by the distributee in a direct rollover.
(2) Definitions.
A. Eligible rollover distribution" is any distribution of all or any portion of the balance to the credit of the distributee or an alternate payee under a court order that complies
with IRC Section 414(p)(2), except that an eligible rollover does not include any distribution that is one of a series of substantially equal periodic payments (not less frequently than
annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or
for a specified period of 10 years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code, excluding hardship distributions. For purposes
of a direct rollover, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which
are not includible in gross income. However, such portion may be paid only to an individual retirement account or annuity described in Code Section 408(a) or (b)
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of the Code, or to a qualified defined contribution plan described in 401(a) or 403(a) of the Code that agrees to separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.
B. Eligible retirement plan is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, a
qualified trust, an annuity plan described in section 403(a) of the Code, an eligible deferred compensation plan described in section 457(b) which is maintained by eligible employer
described in section 457(e)(1)(A) of the Code or an annuity contract described in 403(b) of the Code, that accepts the distributee's eligible rollover distribution and agrees to separately
account for amounts contributed into such plan from this plan.
C. Distributee includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse
who is entitled to payment under a domestic relations order determined to be qualified by 414(p)(2) of the Code and this Fund are distributees with regard to the interest of the spouse
or former spouse.
D. Direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee.
(Ord. No. 93-5, § 1, 5-4-93; Ord. No. 10-028, § 13, 11-3-10)
Sec. 18-155. Forfeiture of retirement benefits.
(a) Notwithstanding any provisions of the Plan to the contrary, any public officer or employee who is convicted of a specified offense committed prior to retirement, or whose office
or employment is terminated by reason of his or her admitted commission, aid, or abetment of a specified offense, shall forfeit all rights and benefits under this Plan, except for the
return of his or her accumulated contributions as of the date of termination.
(b) DEFINITIONS. As used in this section, unless the context otherwise requires, the term:
(1) Conviction and convicted mean an adjudication of guilt by a court of competent jurisdiction; a plea of guilty or of nolo contendere; a jury verdict of guilty when adjudication of
guilt is withheld and the accused is placed on probation; or a conviction by the Senate of an impeachable offense.
(2) Court means any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense.
(3) Public officer or employee means an officer or employee of any public body, political subdivision, or public instrumentality within the state.
(4) Specified offense means:
A. The committing, aiding, or abetting of an embezzlement of public funds;
B. The committing, aiding, or abetting of any theft by a public officer or employee from his or her employer;
C. Bribery in connection with the employment of a public officer or employee;
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D. Any felony specified in chapter 838, except ss. 838.15 and 838.16;
E. The committing of an impeachable offense;
F. The committing of any felony by a public officer or employee who, willfully and with intent to defraud the public or the public agency for which the public officer or employee acts
or in which he or she is employed of the right to receive the faithful performance of his or her duty as a public officer or employee, realizes or obtains, or attempts to realize or
obtain, a profit, gain, or advantage for himself or herself or for some other person through the use or attempted use of the power, rights, privileges, duties, or position of his or
her public office or employment position; or
G. The committing on or after October 1, 2008, of any felony defined in s. 800.04 against a victim younger than 16 years of age, or any felony defined in chapter 794 against a victim
younger than 18 years of age, by a public officer or employee through the use or attempted use of power, rights, privileges, duties, or position of his or her public office or employment
position.
(c) FORFEITURE DETERMINATION.
(1) If the Board receives notice or has reason to believe that the rights and privileges of any person under the plan is required to be forfeited, then the Board shall give notice and
hold a hearing for the purpose of determining whether such rights and privileges are required to be forfeited. If the Board determines that such rights and privileges are required to
be forfeited, the Board shall order such rights and privileges forfeited.
(2) Any order of forfeiture of plan rights and privileges is appealable to the district court of appeal.
(3) The payment of retirement benefits ordered forfeited, except payments drawn from employee contributions, shall be stayed pending an appeal as to a felony conviction. If such conviction
is reversed, no retirement benefits shall be forfeited. If such conviction is affirmed, retirement benefits shall be forfeited as ordered in this section.
(4) If any person's rights and privileges under the plan are forfeited pursuant to this section and that person has received benefits from the plan in excess of his or her accumulated
contributions, such person shall pay back to the system the amount of the benefits received in excess of his or her accumulated contributions. If he or she fails to pay back such amount,
the board may bring an action in circuit court to recover such amount, plus court costs.
(Ord. No. 10-028, § 14, 11-3-10)
Secs. 18-156—18-163. Reserved.
ARTICLE III. MUNICIPAL POLICE OFFICERS’ RETIREMENT TRUST FUND*
*Cross reference-Excise tax on casualty insurers for police retirement, § 23-2.
Sec. 18-164. Creation and maintenance of fund and retirement system.
(a) There is hereby created a special pension fund for the Police Officers of Boynton Beach, Florida, to be known as the Boynton Beach Police Officers’ Pension Fund. All assets of every
description held in the name of the Boynton Beach
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Police Officers’ Retirement Trust Fund shall continue to be held, but such fund shall hereafter be known as the Boynton Beach Police Officers’ Pension Fund and shall be administered
as set forth in this article of Chapter 18 of the City of Boynton Beach Code.
(b) The fund shall be maintained in the following manner:
(1) By payment to the fund of the net proceeds of the .85% excise tax which is imposed by the City of Boynton Beach upon certain casualty insurance companies on their gross receipts
of premiums from holders of policies, which policies cover property within the corporate limits of the City of Boynton Beach as authorized in F.S. Chapter 185, amended. These amounts
are to be deposited with the Board of Trustees within five days of receipt by the municipality. F.S. Ch. 185.
(2) By the payment to the fund of 7% of the salary of each full time police officer duly appointed and enrolled as a member of the City of Boynton Beach Police Department; which 7%
shall be picked up, rather than deducted, by the City of Boynton Beach from the compensation due to the Police Officer and paid over to the Board of Trustees of the Boynton Beach Police
Officers’ Pension Fund on a bi-weekly basis. All pickup contributions shall be treated as employer contributions for the purposes of determining tax treatment under the Internal Revenue
Code of 1986, as amended. All such pick up amounts shall be considered as employee contributions for purposes of this plan. The percentage deducted from the police officers’ salaries
are to be deposited with the Board of Trustees immediately. F.S. Ch.185, Boynton Beach Code of Ordinances Sec. 18-170.
(3) By all fines and forfeitures imposed and collected from any police officer because of
the violation of any rule and regulation adopted by the Board of Trustees. F.S. Ch. 185.
(4) By mandatory payment at least quarterly by the City of Boynton Beach a sum equal to the normal cost and the amount required to fund any actuarial deficiency shown by an actuarial
valuation as provided in F.S. Chapter 112, Part VII. F.S. Ch. 185. On an annual basis, the Board of Trustees will evaluate the actuarial assumptions used.
(5) By all gifts, bequests, and devises when donated to the fund. F.S. Ch. 185.
(6) By all accretions to the fund by way of interest or dividends on bank deposits, or otherwise. F.S. Ch. 185.
(7) By all other sources or income now or hereafter authorized by law for the augmentation of the Boynton Beach Police Officers’ Pension Fund. F.S. Ch. 185.
(c) Under no circumstances may the City of Boynton Beach reduce the member contribution to less than 0.5% of salary.
(Ord. 10-005, § 2, 2-2-10)
Sec. 18-165. Definitions.
(a) The following words or phrases, as used in this article, shall have the following meaning:
Actuarial equivalence or actuarially equivalent. Any benefit payable under the terms of this plan in a form other than the normal form of benefit shall have the same actuarial present
value on the date payment commences as the normal form of benefit. For purposes of establishing the actuarial present value of any form of payment, all future payments shall be discounted
for interest and mortality by using 8% interest and the 1983 Group Annuity Mortality Table, blending 80% males and 20% females, with ages set ahead five years in the case of disability
retirees.
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Average final compensation. The average total remuneration received by a police officer during the best five years of service with the city within the last ten. F.S. Ch. 185, Boynton
Beach Code of Ordinances Section 18-168, as amended by Ord. No. 0 00-18 and 00-004.
Compensation or salary. The total cash remuneration including lump sum payments for accumulated sick and vacation leave and “overtime” paid by the primary employer to a police officer
for services rendered, but not including any payments for extra duty or a special detail work performed on behalf of a second party employer paid directly to the police officer by the
second party employer and amounts paid to a police officer after December 31, 2008 as differential wages during any period of active duty military service lasting more than 30 days.
This definition also excludes severance pay and other similar payments which are not for services rendered. The member’s compensation or salary contributed as employee-elective salary
reductions or deferrals to any salary reduction, deferred compensation, or tax-sheltered annuity program authorized under the Internal Revenue Code shall be deemed to be the compensation
or salary the member would receive if he or she were not participating in such program and shall be treated as compensation for retirement purposes under this article. For any person
who first becomes a member in any Plan year beginning on or after January 1, 1996, compensation for any Plan year shall not include any amounts in excess of section 401(a)(17) of the
Internal Revenue Code limitation (as amended by the Omnibus Budget Reconciliation Act of 1993), which limitation of $150,000 shall be adjusted as required by federal law for qualified
government plans and shall be further adjusted for changes in the cost of living in the manner provided by section 401(a)(17)(B) of the Internal Revenue Code. For any person who first
became a member prior to the first plan year beginning on or after January 1, 1996, the limitation on compensation shall be not less than the maximum compensation amount that was allowed
to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for changes in the cost of living since 1989 in the manner provided by section
401(a)(17) of the Internal Revenue Code. F.S. Ch. 185.
Creditable service or credited service. The aggregate number of years of service and fractional parts of years of service of any police officer, omitting intervening years and fractional
parts of
years when such police officer may not have been employed by the municipality subject to the following conditions:
(1) No police officer will receive credit for years or fractional parts of years of service if he or she has withdrawn his or her contributions to the fund for those years or fractional
parts of years of service, unless the police officer repays into the Fund the amount he or she has withdrawn, plus interest as determined by the board in accordance with Section 18-172.
(2) A police officer may voluntarily leave his or her contributions in the fund for a period of five years after leaving the employ of the police department, pending the possibility
of his or her being rehired by the same department, without losing credit for the time he or she has participated actively as a police officer. If he or she is not reemployed as a police
officer with the same department within five years, his or her contributions shall be returned to him or her without interest.
(3) In determining the creditable service of any police officer, credit for up to five years of the time spent in the military service of the Armed Forces of the United States shall
be added to the years of actual service, if:
a. The police officer is in the active employ of the municipality prior to such service and leaves a position, other than a temporary position, for the purpose of voluntary or involuntary
service in the Armed Forces of the United States.
b. The police officer is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act.
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c. The police officer returns to his or her employment as a police officer of the municipality within one year from the date of his or her release from such active service except that
effective January 1, 2007, police officers who die or become disabled while serving on active duty military service shall be entitled to the rights of this section even though such member
was not re-employed by the city as a policy officer. Members who die or become disabled while on active duty military service shall be treated as through re-employed as a police officer
the day before the member became disabled or died, and then considered for entitlement for a death or disability benefit. If the member’s death or disability arises out of the member’s
active service in the military, then the member is entitled to a duty death or duty disability benefit. If the death or disability occurs while the member is serving on active duty military
service but does not arise out of such service, then the member, if vested, is entitled to a non-duty disability benefit.
(4) Continuous service with the employer shall not be broken in the event of:
a. Absence on an approved leave of absence;
b. Absence from work because of occupational injury or disease incurred in employment for which a police officer is entitled to Workers’ Compensation payments;
c. Absence due to service in the Armed Forces of the United States provided the officer shall re-enter employment with the city within one year of discharge.
Beneficiary. Any person, including the estate of the member, who is entitled to receive a pension benefit payable from the Boynton Beach Police Officers’ Pension Fund upon the death
of a member or participant. F.S. Ch. 185.
Fund or Police Officers’ Pension Fund. The Boynton Beach Police Officers’ Pension Fund. F.S. Ch. 185.
Plan year. The fiscal year commencing October 1 and ending the following September 30. Boynton Beach Code of Ordinances Section 18-171, Ord. No. 90-23, § 1, 8-7-90.
Police officer. Any person who is elected, appointed or employed full time by the City of Boynton Beach, who is certified or required to be certified as a law enforcement officer in
compliance with F.S. Section 943.1395, who is vested with authority to bear arms and make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement
of the penal, criminal, traffic or highway laws of the state. This definition includes all certified supervisory and command personnel whose duties include, in whole or in part, the
supervision, training, guidance, and management responsibilities of full-time law enforcement officers, part-time law enforcement officers or auxiliary law enforcement officers as the
same are defined in F.S. Section 943.10(6) and (8). F.S. Ch. 185.
Retiree or retired police officer. A police officer who has entered retirement status. For the purposes of the deferred retirement option plan (DROP), a police officer who enters the
DROP shall be considered a retiree for all purposes of the plan. F.S. Ch. 185.
Retirement. A police officer’s separation from city employment with immediate eligibility for receipt of benefits under the plan. For purposes of the DROP, retirement means the date
a police officer enters the DROP. F.S. Ch. 185.
(b) The masculine gender includes the feminine and words of the singular with respect to persons include plural and vice versa.
(Ord. 10-005, § 2, 2-2-10)
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Sec. 18-166. Board of Trustees created.
(a) Board of Trustees. There is hereby created a Board of Trustees of the Boynton Beach Police Officers’ Pension Fund which shall be solely responsible for administering the pension
fund. The Board of Trustees shall be a legal entity, with the power to bring and defend lawsuits of every kind, nature and description, and to the extent required to accomplish the intent,
requirements and responsibilities provided for in this article. The Board shall consist of five Trustees as follows:
(1) Two legal residents of the city, who shall be appointed by the City Commission. Effective for terms beginning after the effective date of Ord. No. 10-005, passed 2-2-10, each city
Trustee shall have a term of four years but serves at the pleasure of the City Commission. Each city Trustee may succeed himself or herself as a Trustee.
(2) Two police officer participants of the City of Boynton Beach Police Officers Pension Fund, who are elected by a majority of the police officer participants in the fund. Elections
shall be held under such rules and regulations as the Board of Trustees shall from time to time adopt. Effective for terms beginning after the effective date of Ord. No. 10-005, passed
2-2-10, each police officer Trustee shall serve as a Trustee for a period of four years, unless he or she sooner ceases to be a police officer in the employ of the Boynton Beach Police
Department, whereupon their successor shall be elected by a majority of the participants of the Boynton Beach Police Officers’ Pension Fund. Each police officer Trustee may succeed himself
or herself as a Trustee.
(3) A fifth Trustee shall be chosen by the majority of the other four Trustees. This fifth Trustee’s name shall be submitted to the City Commission, which shall, as a ministerial duty,
appoint such person to the
Board as a fifth Trustee. Effective for terms beginning after the effective date of Ord. No. 10-005, passed 2-2-10, the fifth Trustee shall serve as a Trustee for a period of four
years, and may succeed himself or herself as a Trustee.
(b) Board vacancies; procedures to fill same. In the event a Trustee provided for in Section 18-166(a)(2) ceases to be a police officer in the employ of the City of Boynton Beach Police
Department, he or she shall be considered to have resigned from the Board of Trustees. In the event such a Trustee shall resign, be removed, or become ineligible to serve as Trustee,
the Board shall, by motion, declare that office of Trustee vacated as of the date of adoption of such motion. If such a vacancy occurs in the office of Trustee within 90 days of the
next succeeding election for Trustee, the vacancy shall be filled at the next regular election for the unexpired portion of the term; otherwise, the vacancy shall be filled for the unexpired
portion of the term at a special election called by the Board. In the event a Trustee provided for in Section 18-166(a)(1) and (3) shall resign, be removed or become ineligible to serve
as Trustee, the Board shall, by motion, declare that office of Trustee vacated as of the date of adoption of the motion. The successor for the unexpired portion of the term shall be
chosen in the same manner as an original appointment.
(c) Board meetings: quorum: procedures. The Board of Trustees shall hold meetings regularly, at least once each quarter and shall designate the time and place thereof. At any meeting
of the Board, three Trustees shall constitute a quorum. Each Trustee shall be entitled to one vote on each question before the Board and at least three concurring votes shall be required
for a decision by the Board at any of its meetings. The Board shall adopt its own rules and procedures and shall keep a record of its proceedings. All meetings of the Board shall be
open to the public. No Trustee shall take part in any action in connection with their own participation in the fund, and no unfair discrimination shall be shown to any individual police
officer participating in the fund.
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(1) Board chairman and secretary.
a. The Board of Trustees shall, by majority vote, elect from its members a chairman and a secretary.
b. The secretary of the Board shall keep:
1. A complete minute book of the actions, proceedings or hearings of the Board;
2. A record of all persons receiving retirement payments under the plan which includes the time when the pension is allowed and when the pension shall cease to be paid; and
3. A list of all police officers employed by the municipality which includes the name, address and dates of hire and termination.
(d) Compensation. The Trustees of the Boynton Beach Police Officers’ Pension Fund shall not receive any compensation for their services as such, but may receive expenses and per diem
when performing official duties in administering the fund.
(Ord. 10-005, § 2, 2-2-10)
Sec. 18-167. Powers of the Board of Trustees.
(a) The Board of Trustees:
(1) May invest and reinvest the assets of the Boynton Beach Police Officers’ Pension Fund in annuity and life insurance contracts of life insurance 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 F.S. Chapter 185, additional state funds may be used to provide benefits that exceed requirements of F.S. Chapter 185.
(2) Shall have the power and authority to invest and reinvest the monies of the fund, and to hold, purchase, sell, assign, transfer and dispose of any securities and investments held
in the fund, including the power and authority to employ counseling or investment management services. The aim of the investment policies shall be to preserve the integrity and security
of fund principal, to maintain a balanced investment portfolio, to maintain and enhance the value of the fund principal, and to secure the maximum total return on investments that is
consonant with safety of principal; provided that such investments and re-investments shall be limited only by the investments permitted by the investment policy guidelines adopted by
the Board in accordance with Florida law, notwithstanding the provisions of Section 18-221 of the code. Further, notwithstanding the foregoing, investments in foreign investments are
limited in accordance with F.S. Section 185.06(1)(b)4. The Board must discharge these duties with respect to the plan solely in the interest of the participants and beneficiaries and:
(i) for the exclusive purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the plan; (ii) with the care, skill, prudence
and diligence under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a
like character and with like aims; and (iii) by diversifying the investments of the plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent
not to do so.
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(3) May issue drafts upon the Boynton Beach Police Officers Pension Fund 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) May convert into cash any securities of the Fund as it may deem advisable, having regard for the cash requirements of the fund.
(5) Shall keep a complete record of all receipts and disbursements, and of its acts and proceedings.
(6) 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 of this 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 money manager and shall make recommendations to the Board of Trustees regarding the selection of money managers, if necessary. The term “professionally qualified independent
consultant” shall have the meaning as set forth in F.S. Section 185.06(5)(b).
(d) The Board of Trustees may employ such independent professional, technical or other advisers
as may be needed to fulfill the Board’s responsibilities under this Pension Plan. These professionals include but are not limited to: legal counsel, actuary and certified public accountants.
If the Board chooses to use the city’s legal counsel, actuary or other professional, technical or other advisers, it must do so only under terms and conditions acceptable to the Board.
(e) Notwithstanding anything else in this subsection and as provided in F.S. Section 215.473, the Board of Trustees must identify and publicly report any direct or indirect holdings
it may have in any scrutinized company, as defined in that section. Beginning January 1, 2010, the Board must proceed to sell, redeem, divest, or withdraw all publicly traded securities
it may have directly in that company. The divestiture of any such security must be completed by September 10, 2010. The Board and its named officers of investment advisors may not be
deemed to have breached their fiduciary duty in any action taken to dispose of any such security, and the Board shall have satisfactorily discharged the fiduciary duties of loyalty,
prudence, and sole and exclusive benefit to the participants of the pension fund and their beneficiaries if the actions it takes are consistent with the duties imposed by F.S. Section
215.473, as provided for in F.S. Section 185.06(7) and the manner of disposition, if any, is reasonable as to the means chosen. For purposes of determining which companies are scrutinized
companies, the Board may utilize the list of scrutinized companies as developed by the Florida State Board of Administration. No person may bring any civil, criminal, or administrative
action against the Board of Trustees or any employee, officer, director, or advisor of such pension fund based upon the divestiture of any security pursuant to this subsection.
(Ord. 10-005, § 2, 2-2-10)
Sec. 18-168. Membership.
All police officers who are participants in the fund as of the effective date of this article shall be members of this retirement system. Each police officer shall be included in this
plan on the date of hire.
(Ord. No. 10-005, § 2, 2-2-10)
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Sec. 18-169. Requirements for retirement-benefit amounts.
(a) Normal retirement.
(1) Normal retirement date. The normal retirement date of each police officer will be the first day of the month coinciding with, or next following, the date on which he or she has
attained and completed 20 years of service, or the first day of the month coinciding with, or next following, the date on which the police officer has attained age 55 and completed ten
years of service or age 50 and completed 15 years of service.
(2) Normal retirement benefit. The normal retirement benefit payable to a police officer who retires on or after the normal retirement date shall be an amount equal to the number of
years of his or her credited service multiplied by 3.5% of his or her average final compensation.
(3) Form of benefit. A retired police officer’s retirement benefit normally shall be payable in the form of a monthly life annuity with 120 monthly payments guaranteed. This form of
annuity provides for a retirement benefit payable monthly to the retired employee during their lifetimes with a guarantee that not less than 120 monthly retirement benefits shall be
paid, even if the retired employee dies prior to the receipt of 120 payments.
(b) Early retirement.
(1) Early retirement date. An employee who has attained age 50 and completed at least ten years of credited service may elect to terminate employment and retire on an early retirement
date which may be the first day of any month after ten years of service and attainment of age 50.
(2) Early retirement benefit. The monthly amount of early retirement benefits payable to a police officer who retires on the early
retirement date shall be determined in accordance with Section 18-169(a) based on credited service to the early retirement date subject to an actuarial reduction of 1.5% per year of
service to take into account the police officer’s younger age and the earlier commencement of retirement benefits. The early retirement benefit shall be paid in accordance with Section
18-169(a).
(c) Disability retirement.
(1) Service incurred.
a. Any member who receives a medically substantiated service connected injury, disease or disability which injury, disease or disability totally and permanently disabled him or her
to the extent that in the opinion of the Board of Trustees, he or she is wholly prevented from rendering useful and efficient service as a police officer shall receive a monthly benefit
equal to 66 2/3% of his or her basic rate of earnings in effect on the date of disability.
1. Such benefit shall be payable on the first day of each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed
for three months and the date the Board of Trustees approved the payment of such retirement income. A disability retiree may select from the optional forms of benefits available to service
retirees in accordance with Section 18-170.
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2. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability shall be granted for purposes of subsequent retirement
benefits. Subsequent retirement benefits will be actuarially reduced to account for the benefits that were paid during the period of disability.
3. The amount of the disability benefit payment from the fund shall be reduced by any amounts paid from worker’s compensation and the federal social security system. The reduction
for social security benefits shall be in the amount of the primary insurance amount (PIA) only, and future increases, if any, in the disabled member’s social security disability benefits
shall not serve to reduce any further the disability benefit from the fund. The reduction for social security shall terminate upon the attainment of age 65. The pension benefit may only
be reduced to the extent that the total of the benefits from this fund, workers’ compensation and social security benefits exceed 100% of the disabled member’s basic rate of earnings
on the date of disability. However, in all cases the benefit will be at least 42% of average final compensation.
b. Terminated persons, either vested or non-vested, are not eligible for disability benefits, except that those terminated by the city for medical reasons may apply for a disability
within 30 days after termination.
c. Any condition or impairment of health of a member caused by tuberculosis; hypertension, heart disease, hardening of the arteries, hepatitis, or meningococcal meningitis resulting
in total or partial disability or death, shall be presumed to be accidental and suffered in the line of duty unless the contrary be shown by competent evidence. Any condition or impairment
of health caused directly or proximately by exposure, which exposure occurred in the active performance of duty at some definite time or place without willful negligence on the part
of the member, resulting in total or partial disability, shall be presumed to be accidental and suffered in the line of duty, provided that such member shall have successfully passed
a physical examination upon entering such service, which physical examination including electrocardiogram failed to reveal any evidence of such condition.In order to be entitled to presumption
in the case of hepatitis, meningococcal meningitis, or tuberculosis, the member must meet the requirements of F.S. Section 112.181. The final decision whether a member meets the requirements
for duty disability pension rests with the board and shall be based on substantial competent evidence on the record as a whole.
(2) Nonservice incurred. Effective October 1, 2000, any member with ten years of continuous service who receives a nonservice incurred injury, illness, disease or disability, and which
illness, injury, disease or disability totally and permanently disables him or her to the extent that, in the opinion of the Board of Trustees, he or she is wholly prevented from rendering
useful and efficient service as a police officer, shall
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receive from the fund in equal monthly installments an amount equal to 3.5% of his or her average final compensation for each year of continuous service until death or recovery from
disability whichever shall first occur, provided, however, the maximum benefit to which a member may become entitled under this paragraph shall not exceed 60% of his or her average final
compensation during said period, but in all cases the benefit will be at least 25% of average final compensation during said period. Such benefit shall be payable on the first day of
each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for three months and the date the Board of Trustees
approved the payment of such retirement income. Terminated persons, either vested or non-vested, are not eligible for disability benefits, except that those terminated by the city for
medical reasons may apply for a disability within 30 days after termination.
(3) Medical Board. Whenever it becomes necessary for the Board to avail itself of the services of physicians in the case of an application for disability retirement, the Board shall
designate a Medical Board to be composed of competent medical authorities
and/or specialists, as needed. The Medical Board shall arrange for and pass upon the medical examinations required under the provisions of this section, shall investigate all essential
statements or certificates made by or on behalf of a member in connection with an application for disability retirement and shall report in writing to the Board its conclusions and recommendations
upon all matters referred to it. The payment for such services shall be determined by the Board.
(4) Return to active duty from disability retirement. In the event a member who has been retired on a pension on account of permanent and total incapacity regains his or her health
and is found by the Medical Board designated by the Board to be in such physical and mental condition as to meet the requirements of the personnel department for service as a police
officer of the city, the Board shall order his or her pension discontinued, and he or she shall be ordered to resume active duty in the city at the same rate of compensation currently
in effect for his or her pay grade. The Board shall review periodically, in its discretion, the condition of any member receiving a pension for disability and if there is substantial
evidence that the retired member is capable of performing service acceptable to the city as a police officer, he or she shall be ordered to resume active duty and his or her pension
shall be discontinued.
(5) Disability exclusions. No member shall be granted a disability pension upon a showing to the satisfaction of the Board:
a. That the disability resulted from an intentionally self-inflicted wound, injury or ailment, or
b. That the disability resulted from excessive and habitual use of narcotics, drugs, or intoxicants (alcoholic beverages);
c. That the disability resulted from an injury or disease sustained by the police officer while willfully and illegally participating in fights, riots, civil insurrections or while
committing a crime;
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d. That the disability resulted from an injury or disease sustained by the police officer while serving in any armed forces. This exclusion does not affect members who have become
disabled as a result of intervening military service under the federal Heroes Earnings Assistance and Relief Tax Act of 2008 (H.R. 6081; P.L. 100-245);
e. That the disability resulted from an injury or disease sustained by the police officer after employment has been terminated; or
f. That, in the case of a duty disability only, the disability resulted from an injury or disease sustained by the police officer while working for anyone other than the city and arising
out of such other employment.
(6) Further disability provisions. Each member applying for a service incurred disability benefit from this fund shall be required to apply for disability benefits under social
security, and, if applicable, workers’ compensation. Furthermore, each person granted a service incurred disability shall be required to submit to the Board, no later than March 1 of
each year, a statement showing the monthly amount of social security (PIA only) and workers’ compensation benefits received by him or her as of March 1. Willful refusal by such persons
to comply with these regulations shall be grounds for the termination of or nonapproval of disability benefits from this system. However, the Board shall exercise its discretion in each
case.
(d) Death benefit.
(1) If any member shall die prior to retirement or other termination of employment with the city and that death is found by the Board of Trustees to have occurred in the line of duty
regardless of the years of service, a death benefit shall be payable to the deceased member’s spouse. The benefit shall equal 3.5% of average final compensation for each year of continuous
service; provided, however, the benefit will be at least 30% of average final compensation. It shall be payable in equal monthly installments commencing the first day of the month following
the date of death and ceasing upon the death of the spouse. If there is no spouse, the benefit, if any, will be paid to the deceased participant’s estate.
(2) If any member with at least ten years of continuous service shall die prior to retirement or other termination of employment with the city, a death benefit shall be payable to the
deceased member’s spouse. The benefit shall equal 3.5% of average final compensation for each year of continuous service. It shall be payable in equal monthly installments commencing
the first day of the month following the date of death and ceasing upon the death or remarriage of the spouse. If there is no spouse, the benefit, if any, will be paid to the deceased
participant’s estate.
(3) If a member dies before being eligible to retire, the heirs, legatees, beneficiaries or personal representatives of such deceased member shall be entitled to a refund of 100% of
the contributions made by the member to the fund, without interest.
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(e) Separation from service.
(1) Effective for terminations on and after October 1, 2002, if a member leaves the service of the city before accumulating
aggregate time of five 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 fund, without
interest.
(2) If any member who had been in the service of the city for at least ten years elects to leave his or her accrued contributions in the fund, such police officer upon attaining age
50 years or more (without reaching what would have been 20 years of service had he or she not terminated his or her 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 or she 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 of the city for at least five years elects to leave his or her accrued contributions
in the fund, the police officer upon attaining age 55 with ten or more years of service (had he or she not terminated employment) or reaching what would have been 20 years of service
(had he or she 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.
(f) Monthly supplemental benefits.
(1) Effective October 1, 2006, any eligible retiree, including DROP participants, or beneficiary receiving pension benefits is entitled to a monthly supplemental pension benefit. The
benefit pool will be funded by 100% of the annual earnings and 10% of the principal created by the contributions set forth in subparagraph b. below.
a. Such benefit will be funded by a 1% contribution from the members and a 1% contribution from the 185 monies. The member and the 185 contributions shall be effective October 1, 2001.
Employees will contribute to this benefit through 20 years of service.
b. The distribution provided for in this paragraph shall be divided among eligible retirees on a pro-rata basis in shares. The shares shall be determined based upon the sum of an eligible
retiree’s years and partial years of credited service (maximum credit is 20 years) plus the eligible retiree’s years and partial retirement years as of September 30 of the current year
(maximum credit of 20 years). The share value shall be determined by totaling all of the shares of eligible retirees divided into the current years’ total distribution amount. An individual
eligible retiree’s distribution shall be equal to the number of the eligible retiree’s shares multiplied by the share value.
c. This benefit shall be payable annually in a lump sum as of October 1, of each year, beginning December 1, 2006. The benefit shall be payable to the eligible retiree, including DROP
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participants, or any beneficiary eligible to receive benefits as a result of the death of a retiree. The benefit shall cease upon the death of the eligible retiree or beneficiary, whichever
is the last surviving pension recipient.
(2) Beginning October 1, 2003, 100% of the money received pursuant to F.S. Chapter 185 (“185 money”) each calendar year in excess of the base amount of $465,087, plus 1% of payroll
annually to fund the benefit as provided in paragraph (1), plus any 185 money held in reserve, shall be distributed
to all current eligible retirees, including DROP participants, or beneficiaries receiving benefits. These supplemental benefit payments will be distributed according to the formula set
for in subparagraph a. This distribution is in addition to the benefit provided for in paragraph (1) which shall begin October 1, 2006.
a. The distribution provided for in this subparagraph shall be divided among eligible retirees on a pro-rata basis in shares. The shares shall be determined based upon the sum of an
eligible retiree’s years and partial years of credited service (maximum credit is 20 years) plus the eligible retiree’s years and partial retirement years as of September 30 of the current
year (maximum credit of 20 years). The share value shall be determined by totaling all of the shares of eligible retirees divided into the current years’ total distribution amount. An
individual eligible retiree’s distribution shall be equal to the number of the eligible retiree’s shares multiplied by the share value.
b. Allocations for surviving spouses and surviving dependent children shall be based upon the formula in this subparagraph, adjusted by the percentage of the optional form of benefit
selected.
c. This benefit shall be payable annually in a lump sum as of June 1 of each
year, beginning June 1, 2004. The benefit shall be payable to the eligible retiree, including DROP participants, or any beneficiary eligible to receive benefits as a result of the death
of a retiree. The benefit shall cease upon the death of the eligible retiree or beneficiary, whichever is the last surviving pension recipient.
(3) Definitions.
a. For purposes of this section only, “credited service” means the number of years and partial years of service originally used by the pension plan to determine pension benefits. For
eligible retirees who retired on a duty disability retirement, 20 years of service is credited for this part of the monthly supplemental benefit calculation at the time that the disability
benefit begins. Non-duty disability retirees shall be credited with actual years of credited service.
b. For purposes of this section only, “retirement years” means the number of years and partial years that a retiree has received a pension benefit to include the number of years and
partial years as a DROP participant. For eligible retirees who retired on a duty disability retirement, no retirement
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years will be accumulated for this part of the monthly supplemental benefit calculation until after the member would have attained 20 years of credited service, had he not retired on
a duty disability retirement. Non-duty disability retirees shall be credited with actual years in receipt of a pension benefit.
c. For purposes of this section only, “eligible retirees” means current retirees who were retired as of September 30 of each year, including DROP participants, or beneficiaries receiving
benefits.
(Ord. No. 10-005, § 2, 2-2-10; Ord. No. 15-014, § 2, 6-2-15)
Sec. 18-170. Optional forms of benefits.
(a) Each member entitled to a normal, early or disability retirement benefit shall have the right at any time prior to the date on which the benefit begins to elect to have the benefit
payable under any of the options hereinafter set forth in lieu of the amount and form of benefits provided above, and to revoke any such elections and make a new election at any time
prior to the actual commencement of payment.
(b) The value of optional benefits shall be the actuarial equivalent of the value of benefits otherwise payable. The member shall make an election by written request to the Board, such
request being retained in the Board’s files. The options available to the members of the fund are as follows:
(1) Life annuity. The member may elect to receive a benefit payable for the member’s life only.
(2) Contingent annuitant (joint and survivor option). The member may elect to receive a benefit during the joint lifetime of the member and a joint pensioner designated by the police
officer, and following the death of either of them, 100%, 75%, 66 2/3% or 50% of such monthly benefit payable to the survivor for the lifetime of the survivor.
(3) Survivor annuity. The member may elect to receive a benefit during the member’s lifetime and then following the death of the member, a reduced amount to a beneficiary. At the time
of retirement, the member may choose a survivor benefit of 100%, 75%, 66 2/3% or 50% of the member’s monthly benefit. This amount will be payable to the beneficiary of the lifetime of
the beneficiary.
(c) The member upon electing any option of this section will designate the joint pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the plan in
the event of the member’s death, and will have the power to change such designation from time to time but any such change shall be deemed a new election and will be subject to approval
by the Pension Board. Such designation will name a joint pensioner or one or more primary beneficiaries where applicable. If a member
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has elected an option with a joint pensioner or beneficiary and his or her retirement income benefits have commenced, he or she may thereafter change the designated joint pensioner or
beneficiary up to twice in accordance with F.S. Section 185.341 without the approval of the Board of Trustees or the current joint annuitant or beneficiary. The retiree is not required
to provide proof of the good health of the joint annuitant or beneficiary being removed, and the joint annuitant or beneficiary being removed need not be living. Any retired member who
desires to change his or her joint annuitant or beneficiary shall file with the Board of Trustees a notarized notice of such change. Upon receipt of a completed change of joint annuitant
form or such other notice, the Board of Trustees shall adjust the member’s monthly benefit by the application of actuarial tables and calculations developed to ensure that the benefit
paid is the actuarial equivalent of the present value of the member’s current benefit and there is no impact to the Plan. The member shall also be responsible for the cost of the recalculation
of the benefit by the actuary. The consent of a member’s joint pensioner or beneficiary to any such change shall not be required. Any subsequent requests for changes in beneficiary will
require Board of Trustees’ approval and the joint pensioner being removed must be alive when the request for changes is made. The Board of Trustees may request such evidence of the good
health of the joint pensioner that is being removed as it may require. In the event that no designated beneficiary survives the member, such benefits as are payable in the event of the
death of the member subsequent to his or her retirement shall be paid as provided in Section 18-171.
(d) Retirement income payments shall be made under the option elected in accordance with the provisions of this section and shall be subject to the following limitations:
(1) If a member dies prior to his or her normal retirement date or early retirement date, no benefit will be payable under the option to any person, but the benefits, if any, will be
determined under Section 18-169(d).
(2) If the designated beneficiary (or beneficiaries) or joint pensioner dies before the member’s retirement under the plan, the option elected will be canceled automatically and a retirement
income of the normal form and amount will be payable to the member upon his or her retirement as if the election had not been made, unless a new election is made in accordance with the
provisions of this section or a new beneficiary is designated by the member prior to his or her retirement.
(3) If both the member and the designated beneficiary (or beneficiaries) die before the full payment has been effected under any option providing for payments for a period certain and
life thereafter, the Board of Trustees may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum.
(4) If a member continues beyond his or her normal retirement date and dies prior to actual retirement and while an option made pursuant to the provisions of this section is in effect,
monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a beneficiary (or beneficiaries) designated by the member in the amount or
amounts computed as if the police officer had retired under the option on the date on which death occurred.
(5) A member may not make any change in retirement option after the date of cashing or depositing the first retirement check.
(Ord. No. 10-005, § 2, 2-2-10)
Sec. 18-171. Beneficiaries.
(a) Each member may, on a form provided for that purpose which was signed and filed with the Board of Trustees, designate a beneficiary (or beneficiaries) to receive the benefit, if
any, which may
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be payable in the event of death; and each designation may be revoked by such member by signing and filing with the Board of Trustees a new designation of beneficiary form.
(b) If a deceased member officer failed to name a beneficiary in the manner prescribed above in subsection (a) of this section, or if the beneficiary (or beneficiaries) named by the
deceased member predeceases the member, the death benefit, if any, which may be payable under the plan with respect to such deceased police officer may be paid at the discretion of the
Board of Trustees to the estate of the deceased member, provided that the Board of Trustees may direct that the commuted value of the remaining monthly income payments be paid in a lump
sum. Any payment made to any person pursuant to this section shall operate as a complete discharge of all obligations under the plan with regard to such deceased member and shall not
be subject to review by anyone, but shall be final, binding and conclusive on all persons ever interested hereunder.
(Ord. No. 10-005, § 2, 2-2-10)
Sec. 18-172. Buy back of service.
(a) Re-employment. When any former police officer of the city is re-employed, he or she 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 or she may reinstate the previous service provided 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) in a lump sum within
six months of re-employment or, effective November 9, 2010, in installment payments over a period of up to 5 years and the installment payments must begin within 6 months of re-employment.
The 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. If the member chooses to pay over time, interest will continue to accrue during the
period of repayment. 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 F.S. Chapter 112, Part VII. No credit shall be given for any service until all years of service which are to
be repurchased, have been repurchased.
(b) Prior police officer service. Unless otherwise prohibited by law, the years or fractional parts of years that a police officer previously served as a police officer for any other
municipal, county, state or federal 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 months of the request for credit and in one 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 years, whichever is greater, at an interest rate which is equal to the fund’s actuarial assumption. A police officer
may request to purchase a maximum of five years of service. No credit shall be given for any service until all years of service which are to be repurchased, have been repurchased.
(3) The credit purchased under this section shall count for benefit computation purposes, but not for vesting.
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(4) In no event, however, may credited service be purchased pursuant to this section for prior service with any other municipal, county or state police department, if such prior service
forms or will form the basis of a retirement benefit or pension from another retirement system or plan. This subparagraph does not apply to military service.
(Ord. No. 10-005, § 2, 2-2-10; Ord. No. 11-011, § 2, 3-15-11)
Sec. 18-173. Rollovers.
(a) Direct transfers of eligible rollover distributions.
(1) General. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee’s
election under this subsection, a distributee may elect, at the time and in the manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid
directly to an eligible retirement plan specified by the distributee in a direct rollover.
(2) Definitions.
a. Eligible rollover distribution. Any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover does not include any distribution
that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or
joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution
is required under section 401(a)(9) of the Internal Revenue Code; and the portion of any
distribution that is not includable in gross income.
b. Eligible retirement plan. An individual retirement account described in section 408(a) of the Internal Revenue Code, an individual retirement annuity described in section 408(b)
of the Internal Revenue Code, an annuity plan described in section 403(a) of the Internal Revenue Code, or a qualified trust described in section 401(a) of the Internal Revenue Code,
that accepts the distributee’s eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual
retirement account or individual retirement annuity.
c. Direct rollover. A payment by the plan to the eligible retirement plan specified by the distributee.
d. Distributee. Includes an employee or former employee. In addition, the employee’s or former employee’s surviving spouse and the employee’s or former employee’s spouse or former
spouse who is entitled to payment for alimony and child support under an income deduction order, are distributees with regard to the interest of the spouse or former spouse.
(b) Rollovers from qualified plans.
(1) A member may roll over all or a part of his or her interest in another qualified plan to the fund, provided all of the following requirements are met:
a. Some or all of the amount distributed from the other plan is rolled over to this plan no later than the sixtieth day after distribution was made from the plan or, if distributions
are made in installments, no later than the sixtieth
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day after the last distribution was made.
b. The amount rolled over to this fund does not include any amount contributed by the member to the plan on a post-tax basis. Effective October 1, 2002, a member may rollover amounts
contributed on a post-tax basis.
c. The rollover is made in cash.
d. The member certifies that the distribution is eligible for a rollover.
e. Any amount which the trustees accept as a rollover to this fund shall, along with any earnings allocated to them, be fully vested at all times.
(2) A rollover may also be made to this plan from an individual retirement account qualified under section 408 of the Internal Revenue Code when the individual retirement account was
merely used as a conduit for funds from another qualified plan and the rollover is made in accordance with the rules provided in paragraphs a. through e. Amounts rolled over may be segregated
from other fund assets. The trustees shall separately account for gains, losses, and administrative expenses of these rollovers. In addition, the fund may accept the direct transfer
of a member’s benefits from another qualified retirement plan or to a deferred compensation plan pursuant to section 457 of the Internal Revenue Code. The fund shall account for direct
transfers in the same manner as a rollover and shall obtain certification from the member that the amounts are eligible for a rollover or direct transfer to this fund.
(c) Transfer of accumulated leave.
(1) Members eligible to receive accumulated sick leave, accumulated vacation leave or any other accumulated leave payable upon
retirement, including entry into the DROP, shall have the leave transferred to the plan. For purposes of this section, the term “separation” shall mean termination of service as a
police officer with the city. Members on whose behalf leave has been transferred may elect one of the following distribution options within 30 days of separation. Members failing to
elect a distribution option within 30 days of separation will be deemed to have elected option (a) below:
a. Receive a lump sum equal to the transferred leave balance; or
b. Transfer the entire amount of the transferred leave balance directly to any eligible retirement plan; or
c. Purchase additional service credit as may be permitted by the Code. If the leave balance exceeds the cost of the service credit purchased, the balance shall be paid to the member
in a lump sum; or
d. Transfer the entire amount of the transferred leave balance into the member’s DROP account; or
e. Maintain the entire leave balance within the plan. Earnings shall be paid as follows:
1. Gains or losses at the same interest rate earned by the Pension Plan; or
2. A guaranteed rate of 7%; or
3. A percentage of the leave balance 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 7%. The actual percentage shall be selected by the
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member on a form provided by the Board of Trustees. The total of the two percentages must equal 100%.
These accounts will be assessed an administrative fee that is based upon the ratio that the employee's DROP account bears to the fund as a whole.
(2) If a member on whose behalf the city makes a transferred leave balance to the plan dies after retirement or other separation, but before making an election, as provided, or after
making an election but before any distribution is made, the election option shall be void. In such an event, any person who would have received a death benefit had the member died in
service immediately prior to the date of retirement or other separation, shall be entitled to receive an amount equal to the transferred leave balance in a lump sum. In the case of a
surviving spouse or former spouse, an election may be made to transfer the leave balance to an eligible retirement plan in lieu of the lump sum payment. Failure to make such an election
by the surviving spouse or former spouse within 60 days of the member’s death will be deemed an election to receive a lump sum payment.
(3) The Board, by rule, shall have the authority to enact administrative rules for purposes of administering the provisions of this section, consistent with the federal tax laws in
effect on the date of transfer. No such rule shall conflict with the provisions of this section.
(4) The value of the leave transferred shall be determined in accordance with applicable city personnel policies or collective bargaining agreements.
(Ord. No. 10-005, § 2, 2-2-10)
Sec. 18-174. Miscellaneous.
(a) Pension validity. The Board of Trustees shall have the power to examine the facts upon which any pension shall have been granted or obtained erroneously, fraudulently, or illegally
for any reason. The Board is empowered to purge the pension rolls of any person granted a pension under proper or existing law or granted under this article if the pension is found to
be erroneous, fraudulent or illegal for any reason; and to reclassify any pensioner who has under any prior or existing law or who shall hereafter under this article be erroneously,
improperly, or illegally classified.
(b) False or misleading statements made to obtain retirement benefits prohibited.
(1) It is unlawful for a person to willfully and knowingly make, or cause to be made, or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent,
or misleading oral or written statement or withhold or conceal material information to obtain any benefit under this plan.
(2) a. A person who violates subparagraph (1) commits a misdemeanor of the first degree, punishable as provided in F.S. Sections 775.082 or 775.083.
b. In addition to any applicable criminal penalty, upon conviction for a violation described in subparagraph (1), a participant or beneficiary of this plan may, in the discretion of
the Board of Trustees, be required to forfeit the right to receive any or all benefits to which the person would otherwise be entitled under this plan. For purposes of this subparagraph,
“conviction” means a determination of guilt that is the result of a plea or trial , regardless of whether adjudication is withheld.
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otherwise be entitled under this plan. For purposes of this sub-subparagraph, “conviction” means a determination of guilt that is the result of a plea or trial, regardless of whether
adjudication is withheld.
(c) Incompetence. If any member or beneficiary is a minor or is, in the judgment of the Board, otherwise incapable of personally receiving and giving a valid receipt for any payment
due them from the fund, the Board may, unless and until claims have been made by a duly appointed guardian or committee of such person, make such payment or any part thereof to such
person’s spouse, children, parent or other person deemed by the Board to have incurred expenses or assumed responsibility for the expenses of such person. Any payments so made shall
be a complete discharge of any liability under the system for such payment.
(d) Rights and benefits not subject to legal process. The rights and benefits provided for herein are vested rights of participants in the fund and shall not be subject to attachment,
garnishment, execution or any other legal process. However:
(1) The Board shall honor an income deduction order for alimony or child support in accordance with rules and procedures adopted by the Board; and
(2) Upon written request by the retiree, the Board of Trustees may authorize the plan administrator to withhold from the monthly retirement payment funds necessary to:
a. Pay for benefits being received through the city;
b. Pay the certified bargaining agent; or
c. Pay for premiums for accident health and long-term care insurance for the retiree’s spouse and dependents. A retirement plan does not incur liability for participation in this permissive
program if its actions are taken in good faith pursuant to F.S. Section 185.05(6).
(e) Lump sum payment of small retirement income. Notwithstanding any provision of the fund to the contrary, if the monthly retirement income payable to any person entitled to benefits
hereunder is less than $30 or if the single sum value of the accrued retirement income is less than $5,000 as of the date of retirement or termination of service, whichever is applicable,
the Board of Trustees, in the exercise of its discretion, may specify that the actuarial equivalent of such retirement income be paid in lump sum.
(f) Required distributions.
(1) In accordance with section 401(a)(9) of the Internal Revenue Code, all benefits under this plan will be distributed, beginning not later than the required beginning date set forth
below, over a period not extending beyond the life expectancy of the member or the life expectancy of the member and a beneficiary.
(2) Any and all benefit payments shall begin by the later of:
a. April 1 of the calendar year following the calendar year of the member’s retirement date; or
b. April 1 of the calendar year following the calendar year in which the member attains age 70.5.
(3) If an employee dies before his or her entire vested interest has been distributed to him or her, the remaining portion of such interest will be distributed at least as rapidly as
provided for under this plan.
(g) Internal Revenue Code limits.
(1) Basic limitations. Subject to the adjustments in paragraph (3), the maximum amount of the actual annual retirement income paid in any year with respect to a participant under
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this plan shall not exceed the dollar amount allowable for any calendar year pursuant to section 415(b) of the Code, as adjusted in such calendar year for increases in the cost of living
in accordance with regulations issued by the Secretary of the Treasury under section 415(d) of the Code. For purposes of applying the basic limitation, benefits payable in any form other
than a straight life annuity with no ancillary benefits shall be adjusted, as provided by Treasury Regulations, so that such benefits are the actuarial equivalent of a straight life
annuity. For purposes of this subsection, the following benefits shall not be taken into account:
a. Any ancillary benefit which is not directly related to retirement income benefits;
b. Any other benefit not required under section 415(b)(2) of the Code and Treasury Regulations thereunder to be taken into account for purposes of the limitation of section 415(b)(1)
of the Code.
(2) Participation in other defined benefit plans. The limitation of this subsection with respect to any participant who at any time has been a participant in any other defined benefit
plan (as defined in section 414(j) of the Code) maintained by the city shall apply as if the total benefits payable under all defined benefit plans in which the participant has been
a participant where payable from one plan.
(3) Adjustments in limitations.
a. In the event the participant's retirement benefits become payable before age 62, the maximum amount of annual retirement income limitation prescribed by this article shall be reduced
in accordance with regulations issued by the Secretary of the Treasury pursuant
to the provisions of section 415(b) of the Code, so that such limitation (as reduced) equals an annual benefit (beginning when such retirement income begins) which is equivalent to
the Code section 415(b) maximum amount of annual retirement income beginning at age 62.
b. In the event the participant's benefit is based on at least 15 years of credited service, the adjustments provided for in subparagraph a. above shall not apply.
c. The reductions provided for in subparagraph a. above shall not be applicable to disability benefits pre-retirement death benefits.
d. In the event the participant’s retirement benefit becomes payable after age 65, for purposes of determining whether this benefit meets the basic limitation set forth in paragraph
(1) herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age 65. This adjustment shall be made using an assumed interest rate of 5%
and shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his or her delegate.
e. Less than ten years of service. The maximum retirement benefits payable under this article to any participant who has completed less than ten years of credited service with the
city shall be the amount determined under paragraph (1) multiplied by a fraction, the numerator of which is the number of the participant’s years of credited service and the denominator
of which is ten. The reduction provided for in this subparagraph shall not be applicable to disability benefits or pre-retirement death benefits.
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f. Ten thousand dollar limit. Not withstanding the foregoing, the retirement benefit payable with respect to a participant shall be deemed not to exceed the limitations in this subsection
if the benefits payable, with respect to such participant under this plan and under all other qualified defined benefit pension plans to which the city contributes, do not exceed $10,000
for the applicable plan year and for any prior plan year and the city has not at any time maintained a qualified defined contributions plan in which the participant participated.
g. Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the participant’s benefit under any defined
benefit plans in which participant participated, such reduction to be made first with respect to the plan in which participant most recently accrued benefits and thereafter in such priority
as shall be determined by the Board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the
participant participated, such reduction to be made first with respect to the plan in which participant most recently accrued benefits and thereafter in such priority as shall be established
by the Board and the plan administrator for such other plans provided, however, that necessary reductions may be made in different manner and priority pursuant to the agreement of the
Board and the plan administrator of all other plans covering such participant.
h. Cost-of-living adjustments. The limitations as stated herein shall be adjusted annually in accordance with
any cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to section 415(d) of the Code.
(4) Additional limitation on pension benefits. Notwithstanding anything herein to the contrary:
a. The normal retirement benefit or pension payable to a retiree who becomes a participant of the plan on or after January 1, 1980, and who has not previously participated in such
plan, shall not exceed 100% of his or her average final compensation. However, nothing contained in this article shall apply to supplemental retirement benefits or to pension increases
attributable to cost-of-living increases or adjustments.
b. No participant of the plan shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the participant
is already receiving, or will receive in the future, a retirement benefit or pension from a different employer’s retirement plan. This restriction does not apply to social security
benefits, military benefits or federal benefits under Chapter 67, Title 10, U.S. Code.
(Ord. No. 10-005, § 2, 2-2-10)
Sec. 18-175. Deferred retirement option plan.
(a) A deferred retirement option plan (“DROP”) is hereby created.
(b) Eligibility to participate in the DROP is based upon eligibility for normal service retirement in the plan. Members shall elect to participate by applying to the Board of Trustees
on a form provided for that purpose.
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(c) Participation in the DROP must be exercised within the first 25 years of combined credited service.
(d) A member shall not participate in the DROP beyond the time of attaining 30 years of service and the total years of participation in the DROP shall not exceed five years. For example:
(1) Members with 20 years of credited service at time of entry shall only participate for five years.
(2) Members with 25 years of credited service at time of entry shall participate for five years.
(3) Members with 26 years of credited service at time of entry shall only participate for four years.
(e) Upon a members election to participate in the DROP, he or she shall cease to be a member and is precluded from accruing any additional benefit under the Pension Fund. For all fund
purposes, the member becomes a retirant. The amount of credited service and final average salary freeze as of the date of entry into the DROP. Accumulated, unused sick and vacation leave
shall be included in the compensation calculation; provided however, that a minimum balance of 120 hours of sick leave and 120 hours of vacation leave shall be maintained by the employee
and excluded from this calculation. The retained leave balance, including any additions, shall be distributed at the conclusion of DROP participation and separation from service.
(f) Payment shall be made into the employee’s DROP account as if the employee had retired from the employ of the city. The amounts paid will be determined in accordance with this Plan
and the employee’s selection of the payment option. Payments into the DROP will be made monthly over the period the employee participates in the DROP, up to a maximum of 60 months.
(g) Effective January 1, 2003, DROP participants have the option to select optional methods to credit investment earnings to their account less any
outstanding loan balances. The method may be changed each year effective January 1, however, the method must be selected prior to January 1 on a form provided by the Board of Trustees.
The methods are:
(1) Gains or losses at the same interest rate earned by the Pension Plan; or
(2) A guaranteed rate of 7%; or
(3) 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 7%. The actual percentage shall be selected by the member on a form provided by the Board of Trustees. The total of the two percentages must equal 100%. Employee’s
DROP accounts will be assessed an administrative fee that is based upon the ratio that the Employee’s DROP account bears to the fund as a whole.
(4) Participants in the DROP, as of December 31, 2002, may change their method for the crediting of earnings. This change in the crediting of earnings is a one time opportunity. The
election to change the method for crediting must be made during the month of January 2003. The method, if changed, will be effective February 1, 2003.
(h) An employee’s participation in the DROP shall terminate at the end of five years or 30 years of service, whichever comes first. Failure to end DROP participation may result in penalties
at the discretion of the Trustees, up to and including forfeiture of the DROP account. Upon entering into the DROP, an employee shall file with the Board a binding letter of resignation
from city employment. The binding letter of resignation shall establish a deferred termination date in accordance with the limitations of this DROP, which may be amended.
(i) All interest shall be credited to the employee’s DROP account less any outstanding loan balances on a quarterly basis with quarterly statements
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provided. In the event that a member dies while in the DROP, interest shall be pro-rated to the last business day of the month preceding the death of the member.
(j) Upon termination of employment, participants in the DROP will receive the balance of the DROP account in accordance with the following rules:
(1) Members may elect to begin to receive payment upon termination of employment or defer payment of DROP until the latest day as provided under sub-subparagraph (3).
(2) Payments may be made in the following ways:
a. Lump sum. The entire account balance will be paid to or on behalf of the retirant upon approval of the Board of Trustees.
b. Installments. The account balance will be paid out to the retirant in five equal annual payments paid over five years, the first payment to be made upon approval of the Board of
Trustees.
c. Monthly installments. The account balance will be paid out to the retirant on a monthly basis until the account balance is paid out based on actuarial tables provided by the actuary.
d. Partial lump sum withdrawals. Part of the account balance will be paid to or on behalf of the retirant upon approval of the Trustees.
(3) Any form of payment selected by a police officer must comply with the minimum distribution requirements of section 401(A)(9) of the Internal Revenue Code, and is subject to the
requirements of Section 18-174(f), e.g., payments must commence by age 70.5.
(4) The beneficiary of the DROP participant who dies before payments from DROP
begin shall have the same right to select payment options as the participant in accordance with this subsection. A DROP participant may designate a beneficiary to receive the DROP
balance in the event of the participant’s death prior to pay out of the full DROP balance.
(k) No payments will be made from DROP until the employee actually separates from service with the city.
(l) If an employee shall die during participation in the DROP, a survivor benefit shall be payable in accordance with the form of benefit chosen at the time of entry into the DROP.
(m) Upon commencement of participation in the DROP, the member shall no longer be eligible for disability retirement from the pension plan.
(n) Loans from the DROP.
(1) Availability of loans.
a. Loans are available to members only after termination of employment, provided the member had participated in the DROP for a period of 12 months.
b. Loans may only be made from a member's own account.
c. There may be no more than one loan at a time.
(2) Amount of loan.
a. Loans may be made up to a maximum of 50% of account balance.
b. The maximum dollar amount of a loan is $50,000, reduced by the highest outstanding loan balance during the last 12 months.
c. The minimum loan is $5,000.
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(3) Limitations on loans shall be made from the amounts paid into the DROP and the earnings thereon.
(4) Term of loan.
a. The loan must be for at least one year.
b. The loan shall be no longer than five years.
(5) Loan interest rate.
a. The interest rate shall be fixed at time the loan is originated for the entire term of loan.
b. The interest rate shall be equal to the prime rate published by an established local bank on the last day of each calendar quarter preceding the date of loan application.
(6) Defaults on loans.
a. Loans shall be in default if two consecutive months’ repayments are missed or if a total of four months’ repayments are missed.
b. Upon default, the entire balance becomes due and payable immediately.
c. If a loan in default is not repaid in full immediately, the loan may be canceled and the outstanding balance treated as a distribution, which may be taxable.
d. Upon default of a loan, a member will not be eligible for additional loans.
(7) Miscellaneous provisions.
a. All loans must be evidenced by a written loan agreement signed by the member and the Board of Trustees. The agreement shall contain a promissory note.
b. A member’s spouse must consent in writing to the loan. The consent shall acknowledge the effect of the loan on the member’s account balance.
c. Loans shall be considered a general asset of the fund.
d. Loans shall be subject to administrative fees to be set by the Board of Trustees.
e. Outstanding loan balances shall not be credited with earnings or losses. As the outstanding balance is repaid with interest, earnings and losses shall be applied to the payments
and interest as provided for in Section 18-175(i).
(Ord. No. 10-005, § 2, 2-2-10; Ord. No. 11-011, § 3, 3-15-11)
Sec. 18-176. Termination of plan and distribution of fund.
Upon termination of the plan by the municipality for any reason, or because of a transfer, merger, or consolidation of governmental units, services, or functions as provided in F.S.
Chapter 112, or upon written notice to the Board of Trustees by the municipality that contributions under the plan are being permanently discontinued, the rights of all employees to
benefits accrued to the date of such termination or discontinuance and the amounts credited to the employees’ accounts are nonforfeitable. The fund shall be apportioned and distributed
in accordance with the following procedures:
(a) The Board of Trustees shall determine the date of distribution and the asset value required to fund all the nonforfeitable benefits after taking into account the expenses of such
distribution. The Board shall inform the municipality if additional assets are required, in which event the municipality shall continue to financially support the plan until all nonforfeitable
benefits have been funded.
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(b) The Board of Trustees shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted
trust fund, by the purchase of insured annuities, or otherwise, for each member entitled to benefits under the plan, as specified in subsection (c).
(c) The Board of Trustees shall distribute the asset value as of the date of termination in the manner set forth in this subsection, on the basis that the amount required to provide
any given retirement income is the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under subsection (b) involves
the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial single-sum value may not
be less than the employee’s accumulated contributions to the plan, with interest, if provided by the plan, less the value of any plan benefits previously paid to the employee.
(d) If there is asset value remaining after the full distribution specified in paragraph (c), and after payment of any expenses incurred with such distribution such excess shall be
returned to the municipality, less return to the state of the state’s contributions, provided that, if the excess is less than the total contributions made by the municipality and the
state to date of termination of the plan, such excess shall be divided proportionately to the total contributions made by the municipality and the state.
(e) The Board of Trustees shall distribute, in accordance with the manner of distribution determined under paragraph (b), the amounts distributed under subsection (c). If, after 24
months after the date the plan terminated or the date on which the Board received written notice that the contributions thereunder were being permanently
discontinued, the municipality or the Board of Trustees of the municipal police officers’ retirement trust fund affected has not complied with all the provisions in this section, the
Department of Management Services shall effect the termination of the fund in accordance with this section.
(Ord. No. 10-005, § 2, 2-2-10)
Sec. 18-177. Cost of living adjustment.
(a) Subject to the conditions set forth in this section, the Board of Trustees shall annually a cost of living adjustment, the amount of which shall be determined as of each September
30. The amount of the cost of living adjustment shall be equal to the
actuarial present value of future pension payments to current pensioners multiplied by the positive difference, if any, between the rate of investment return and 8%. The actuary shall
determine whether there may be a cost of living adjustment based on the following factors:
(1) The actuary for the Pension Fund shall determine the rate of investment return on the Pension Fund assets during the 12-month period ending each September 30. The rate determined
shall be the rate reported in the most recent actuarial report submitted pursuant to F.S. Chapter 112, Part VII.
(2) The actuary for the Pension Fund shall, as of September 30, determine the actuarial present value of future pension payments to current pensioners. The actuarial present values
shall be calculated using an interest rate of 8% a year compounded annually, and a mortality table approved by the Board of Trustees and as used in the most recent actuarial report
submitted pursuant to F.S. Chapter 112, Part VII. This will be the pool of funds available to fund the cost of living adjustment.
(3) If the actuary determines there may be a cost of living adjustment, the Board of Trustees shall authorize such a distribution unless the administrative expenses of distribution
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exceed the amount available for the distribution.
(4) The cost of living adjustment shall be funded only if the present value of the pool of funds does not exceed the net actuarial experience accumulated from all sources of gains and
losses.
(b) Cost of living adjustments will be made to pensioners, including DROP members, and beneficiaries, who are referred to as eligible persons.
(c) The cost of living adjustment shall be allocated among eligible persons based upon the participant’s years of service in the proportion that the participants years of service bear
to the aggregate amount of years of service of all eligible persons. Allocations for beneficiaries will be in proportion that the beneficiary benefit bears to the retiree benefit Maximum
service credits shall be 20 years. Minimum allocations for duty disability pensioners shall be based on 13.33 years of service.
(d) The cost of living shall be made as of July 1, 2001 and each July 1 thereafter. Each eligible person shall be paid his or her allocated portion from the preceding September 30.
Eligible persons must be retired for one year from September 30 to receive a cost of living adjustment. A pensioner’s estate is entitled to a pro-rata share of the deceased retirant’s
cost of living adjustment based on a number of months that the deceased retirant received a pension during the year ending the September 30 prior to the retirant’s death.
(Ord. No. 10-005, § 2, 2-2-10)
Sec. 18-178. Reserved.
ARTICLE IV. PENSIONS FOR
FIREFIGHTERS*
*Cross reference-Excise tax on fire and tornado insurers for firefighters retirement, § 23-3.
Sec. 18-179. Application; Trustee terms of office.
All other provisions of F.S. Chapter 175 shall meet all the requirements and be fully applicable, except for the provisions of this article, to the City of Boynton Beach Municipal Firefighters
Pension Trust Fund. The increased pension benefits in the same percentage of increase as provided for by this article shall apply to all firefighters now receiving retirement benefits
and all firefighters eligible for retirement benefits but not now retired, under the provisions of the City of Boynton Beach Municipal Firefighters Pension Trust Fund, F.S. Chapter 175.
A retiree receiving a joint and survivor form of benefit shall be permitted to change his or her beneficiary, as provided in F.S. §§ 175.171 and 175.333. The Board of Trustees shall
be governed by F.S. § 175.061. Each Trustee shall have a term of four (4) years, but may succeed himself or herself in office, and shall holdover until replaced. All Trustees serving
as of January 1, 2014 shall have their current term extended for a two (2)-year period.
(Code 1958, § 21-95; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 00-19, § 6, 6-6-00; Ord. No. 14-019, § 2, 9-3-14)
Sec. 18-180. Monthly retirement income.
(a) The amount of monthly retirement income payable to a firefighter who retires on or after the firefighter’s normal retirement date shall be an amount equal to the number of the firefighter’s
years of credited service multiplied by 3% of such firefighter’s average final compensation.
(b) In no event may a member’s annual benefit exceed the lesser of:
(1) Ninety thousand dollars (adjusted for cost of living in accordance with Internal Revenue Code (IRC) Section 415(d), but only for the year in which such adjustment is effective);
or
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(2) One hundred percent of the average annual compensation for the member’s three highest paid consecutive years; however, benefits of up to $10,000 a year can be paid without regard
to the 100% limitation if the total retirement benefits payable to a member under all defined benefit plans (as defined in IRC, Section 141(j)) maintained by the city for the present
and any prior year do not exceed $10,000 and the city has not at any time maintained a defined contribution plan (as defined in IRC, Section 414(i)), in which the employee was a member.
If a member has less than ten years of service with the city, the applicable limitation in paragraph (1) or paragraph (2) of this subsection shall be reduced by multiplying such limitation
by a fraction, not to exceed one. The numerator of such fraction shall be the number of years, or part thereof, of service with the city; the denominator shall be ten years.
For purposes of this subsection, “annual benefit” means a benefit payable annually in the form of a straight life annuity with no ancillary or incidental benefits and with no member
or rollover contributions. To the extent that ancillary benefits are provided, the limits set forth in paragraphs (1) and (2) above will be reduced actuarially, using an interest rate
assumption equal to the greater of 5% or the rate used for actuarial equivalence, to reflect such ancillary benefits.
If distribution of retirement benefits begins before age 62, the dollar limitation as described
in paragraph (1) shall be reduced actuarially
using an interest rate assumption equal to the greater of 5% of the interest rate used for actuarial equivalence; however, retirement benefits shall not be
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reduced below seventy-five thousand dollars ($75,000.00) if payment of benefits begins at or after age fifty-five (55) and not below the actuarial equivalent of seventy-five thousand
dollars ($75,000.00) if payment of benefits begins before age fifty-five (55). For a member with fifteen (15) or more years of service with the city, the reductions described above shall
not reduce such member’s benefit below fifty thousand dollars ($50,000.00) (adjusted for cost of living in accordance with IRS Section 415(d), but only for the year in which such adjustment
is effective). If retirement benefits begin after age sixty-five (65), the dollar limitation of paragraph (1) shall be increased actuarially by using an interest assumption equal to
the lesser of five (5) percent or the rate used for actuarial equivalence.
For purposes of this subsection, the “average annual compensation for a member’s three (3) highest paid consecutive years” shall mean the member’s greatest aggregate compensation during
the period of three (3) consecutive calendar years in which the individual was an active member of the plan. The sum of the defined benefit fraction and the defined contribution fraction
for all qualified plans of the city for each common participant shall not exceed one (1.0).
(Code 1958, § 21-91; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 92-44, § 1, 9-2-92; Ord. No. 93-16, § 1, 6-15-93; Ord. No. 99-28, § 1, 9-21-99)
Sec. 18-180.1. Computation of monthly
retirement income in the
instance of early retirement.
The benefit payable for early retirement shall be the same as determined for normal retirement, as set forth in section 18-180, less three (3) per cent for each year or portion thereof
of which the member’s actual retirement date precedes the date which would have been the member’s normal retirement date had such member remained in full-time employment with the city.
(Ord. No. 84-39, § 1, 10-3-84; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 00-19, § 2, 6-6-00)
Sec. 18-180.2. Cost of living increase.
(a) Effective December 1, 2011, an automatic two percent (2%) annual cost of living adjustment (COLA) is created for all members who retire or enter into the DROP on or after December
1, 2006. Payment of annual COLA benefits shall not begin until five (5) years after retirement or entry into the DROP. As of each October first, retirees in pay status and beneficiaries
receiving monthly survivorship benefits on behalf of deceased members, shall have their benefits adjusted annually, following the five (5)-year delay. Retirees eligible to receive annual
COLA benefits shall include all retirees electing early retirement and all disability retirees who enter pay status on or after December 1, 2006.
(b) Every third year following adoption of this section, an actuarial evaluation of the cost of this benefit (two percent (2%) COLA adjustment for retirees) will be provided to the
city by the Pension Plan's actuary, or other actuary designated by the city at it's option. In the event the projected cost of the benefit increases over the projected cost for fiscal
year 2006-2007, the Pension Plan shall be further amended to provide that the increased costs will be offset by (1) an increase in the five percent (5%) employee contribution provided
herein, or (2) use of Chapter 175 funds, or (3) reduction of the cost of living (COLA) benefit for non-retired members, or any combination of (1), (2) or (3), as recommended by the Pension
Board in consultation with the membership. Notwithstanding any provision to the contrary, COLA benefits under this paragraph shall not be reduced for retirees.
(c) In years where the actuarial evaluation described above determines that the cost of the COLA benefit is less than the projected cost for the benefit for fiscal year 2006-2007,
the actuarial savings shall be recognized in a contribution reserve account within the Pension Plan. Any savings accumulated in the contribution reserve account shall be held in trust
to be used to offset unanticipated COLA costs in future years.
(Ord. No. 06-092, § 2, 12-5-06)
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Sec. 18-181. Investments.
The investment powers and authority of the Board of Trustees of the Municipal Firefighters Pension Trust Fund shall be in accordance with F.S. § 175.071, provided, however:
(a) 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; and
(2) County bonds containing a pledge of the full faith and credit of the county involved, bonds of the division of bond finance of the department of general services, or of any other
state agency, which have approved as to legal and fiscal sufficiency by the state board of administration; and
(3) Obligations of any municipal authority issued pursuant to the laws of this 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; and
(4) Bonds or other certificates of indebtedness issued or 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;
shall not at cost exceed seventy (70%) percent of the fund’s assets; nor shall more than ten (10%) percent of the fund’s assets be invested in the bonds or other certificates of indebtedness
of any one issuing company; nor shall the aggregate of such investment in any one issuing company exceed (3) percent of the outstanding
bonds or other certificates of indebtedness of that company. Fund assets may be invested in investment grade bonds with not greater than ten percent (10%) of the fixed income portfolio
to hold an investment rating of Baa.
(b) 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
of the United States or District of Columbia shall not at cost exceed seventy (70%) percent of the fund’s assets; nor shall more than five (5) percent of the fund’s assets be invested
in common stock or capital stock of any one issuing company; nor shall the aggregate of such investment in any one issuing company exceed three (3) percent of the outstanding bonds or
other certificates of indebtedness of that company.
(c) The Board of Trustees may retain in cash and keep unproductive of income such amount of the fund as it may deem advisable, having regard for the cash requirements of the fund.
(d) 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
or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the fund.
(Code 1958, § 21-92; Ord. No. 82-36, § 1, 10-6-82; Ord. No. 83-39, § 1, 12-20-83; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 95-41, § 1, 11-21-95; Ord. No. 02-005, § 1, 2-5-02; Ord. No.
06-037, § 2, 5-2-06)
Sec. 18-181.1. Investment authority.
Pursuant to F.S. § 175.071(1)(b), the Board may invest the assets of the plan in any lawful investment, real or personal, as provided in F.S. § 215.47, except as otherwise limited by
law. Consistent with F.S.
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§ 175.071, the Board of Trustees may also invest up to ten percent (10%) of plan assets, at cost, in foreign securities. Subsequent amendments to F.S. Ch. 175, which expand the scope
of permissible investments shall be incorporated herein upon adoption by the Florida Legislature.
(Ord. No. 94-52, § 3, 12-20-94; Ord. No. 06-037, § 3, 5-2-06; Ord. No. 07-010, § 2, 5-15-07)
Sec. 18-182. Disability retirement benefits.
(a) Service incurred. Any member who receives a medically substantiated service connected injury, disease or disability, which injury, disease or disability totally and permanently
disables such member to the extent that, in the opinion of the board of trustees, the member is wholly prevented from rendering useful and efficient service as a firefighter, shall receive
a monthly benefit equal to sixty-six and two-thirds (66 2/3) per cent of the member’s basic rate of earnings in effect on the date of disability. Such benefit shall be payable on the
first day each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed for three (3) months and the date the board
of trustees approved the payment of such retirement income. In the event of recovery prior to the otherwise normal retirement date, credit for service during the period of disability
shall be granted for purposes of subsequent retirement benefits. The amount of the disability benefit payable from the fund shall be reduced by any amounts paid or payable as disability
benefits from workers’ compensation and the federal social security system. The reduction for social security benefits shall be in the amount of the primary insurance amount (PIA) only,
and future increase, if any, in the disabled member’s social security disability benefit shall not serve to reduce any further the disability benefit from the fund. The reduction
for social security shall terminate upon the attainment of age sixty-five (65). For purposes of compliance with Chapter 175, Florida Statutes, service-incurred disability benefits shall
not be offset below 42% of average final compensation.
(b) Nonservice incurred. Any member with ten (10) years of continuous service who receives a
nonservice incurred injury, illness, disease or disability, and which illness, injury, disease or disability totally and permanently disables such member to the extent that, in the opinion
of the board of trustees, the member is wholly prevented from rendering useful and efficient service as a firefighter, shall receive from the fund in equal monthly installments an amount
equal to two and one-half (2½) per cent of that member’s average final compensation for each year of continuous service until death or recovery from disability, whichever shall first
occur; Such benefit shall be payable on the first day of each month, commencing on the first day of the month following the latter to occur of the date on which the disability has existed
for three (3) months and the date the board of trustees approved the payment of such retirement income. For purposes of compliance with F.S. Chapter 175, the minimum nonservice-incurred
disability benefit shall be 25% of average final compensation.
(c) Medical board. Whenever it becomes necessary for the board to avail itself of the services of physicians in the case of an application for disability retirement, the board shall
designate a medical board to be composed of three (3) physicians. The medical board shall arrange for and pass upon the medical examinations required under the provisions of this section,
shall investigate all essential statements or certificates made by or on behalf of a member in connection with an application for disability retirement and shall report in writing to
the board its conclusions and recommendations upon all matters referred to it. The payment for such services shall be determined by the board.
(d) Return to active duty from disability retirement. In the event a member who has been retired on a pension on account of permanent and total incapacity regains health and is found
by the medical board designated by the board to be in such physical and mental condition as to meet the requirements of the personnel department for such service as a firefighter of
the city, the board shall order the pension discontinued, and such person shall be ordered to resume active duty in the city at the same
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rate of compensation currently in effect for the member’s pay grade. The board shall review periodically, in its discretion, the condition of any member receiving a pension of disability
and if there is substantial evidence that the retired member is capable of performing service acceptable to the city as a firefighter, such member shall be ordered to resume active duty
and the member’s pension shall be discontinued.
(e) Disability exclusions. No member shall be granted a disability pension upon a showing to the satisfaction of the board:
(1) That the disability resulted from an intentionally self- inflicted wound, injury or ailment, or
(2) That the disability resulted from the use of narcotics, drugs or alcoholic beverages, or
(3) That the disability resulted from a member’s participation or involvement in riot, insurrection or unlawful assembly, or
(4) That the disability resulted from a member’s participation or involvement ill the commission of a crime or unlawful act, or
(5) That the disability resulted from injury or disease sustained by the firefighter while serving in any armed forces.
(f) Further disability provisions. Each member applying for a service incurred disability benefit from this fund shall be required to apply for disability benefits under social security,
and, if applicable, workers’ compensation. Furthermore, each person granted a service incurred disability benefit shall be required to submit to the board, no later than March first
of each year, a statement showing the monthly amount of social security (PIA only) and workers’ compensation benefits received by such person as of March first. Willful refusal by such
persons to comply
with these requirements shall be grounds for the termination of or non-approval of disability benefits from this system. However, the board shall exercise its discretion in each case.
(g) Survivor’s benefit. If any member with at least ten (10) years of continuous service shall die prior to retirement or other termination of employment with the city, a death benefit
shall be payable to the deceased member’s spouse. The benefit shall equal two and one-half (2½) per cent of average final compensation for each year of continuous service. It shall be
payable in equal monthly installments commencing the first day of the month following the date of death and ceasing upon the death or remarriage of the spouse.
(h) Payment options. Disability retirees shall be entitled to choose any optional form of payment provided in § 175.171, Florida Statutes.
(Code 1958, § 21-93; Ord. No. 78-7, § 1, 3-7-78; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 00-19, § 3, 6-6-00)
Sec. 18-183. Average final compensation
defined; average annual
compensation defined.
(a) Average final compensation, for the purpose of calculating entitlement to benefits under this plan, shall mean the average cash compensation exclusive of bonuses and incentive pay
received by a firefighter during the three highest years of the last ten years of creditable service prior to retirement.
(b) Average annual compensation, for the purposes of determining compliance of provisions of the Internal Revenue Code, shall mean the member’s greatest aggregate compensation during
the period of three (3) consecutive calendar years in which the individual is an active member of the plan. This provision relates solely to calculation of maximum pension earnings in
section 18-180(b) of the Code of Ordinances and shall not be applicable to the determination of average final compensation as
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defined in section 18-183(a) or referred to in the determination of monthly retirement income in section 18-180(a).
(Code 1958, § 21-94; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 93-16, § 2, 6-15-93; Ord. No. 00-19, § 4, 6-6-00; Ord. No. 02-005, § 1, 2-5-02)
Sec. 18-184. Ex officio membership of the fire chief on the board of trustees.
Notwithstanding any other provision of this chapter, there is hereby created an ex officio, non-voting position on the board of trustees which shall be occupied by the fire chief. The
ex officio board member shall have the opportunity to participate in all board discussions and activities but shall not be counted for the purpose of a quorum nor shall the ex officio
member be entitled to move or second the adoption of any issue or vote on any matter before the board. The ex officio member shall receive all official board communications and shall
be eligible to attend fiduciary education opportunities otherwise authorized for voting trustees.
(Ord. No. 98-39, § 1, 9-15-98)
Editor’s note-Before the enactment of Ord. No. 98-39 on September 15, 1998, the former § 18-184, which pertained to additional creditable service for years spent on the volunteer force
of the city’s fire department, was repealed by Ord. No. 94-11, § 1, adopted May 3, 1994. This previous § 18-184 was derived from the 1958 Code, § 21-96; Ord. No. 79-23, Art. I, adopted
Aug. 7, 1979; and Ord. No. 89-26, § 1, adopted Sept. 19, 1989.
Sec. 18-184.1. Thirteenth Check.
(a) Thirteenth check supplement created. A benefit is hereby created to be provided in the form of a thirteenth monthly retirement payment to each beneficiary and retiree of the Plan.
Payment shall only be made in those years in which an actuarial gain has been determined to exist by the Board of Trustees, following consultation with the actuary to the Board.
(b) Determination of actuarial gains. The actuary for the Retirement Fund shall perform an
annual calculation to determine on the basis of all actuarial factors used to measure the Plan whether or not the Plan has sustained an actuarial gain or loss. The actuary shall report
annually at a special meeting of the Board regarding the actuarial gain or loss for the year. Once certified by the actuary, the Board shall notify retirees regarding the availability
of a thirteenth check payment for the year. In any year in which the Board of Trustees, following consultation with the actuary, determines that no actuarial gain has occurred, no benefit
shall be payable. In years in which the Plan’s actuarial gain is sufficient to support the payment of a thirteenth check, the payment shall be made in December.
(c) Creation of thirteenth check fund. Following the determination of actuarial gain, a fund is hereby created, within the assets of the Retirement System, which shall consist of the
portion of the actuarial gain attributable to retirees and beneficiaries. This portion shall be equal to the total actuarial gain multiplied by the ratio of the present value of benefits
for retirees and beneficiaries to the present value of all future benefits for all members of the System. The fund shall be co-mingled with other assets of the System but shall be measured
for accounting purposes as a separate fund within the Retirement System for the exclusive purpose of providing benefits under this section.
(d) Distribution of benefits; limitations. In any year in which the Board determines that a distribution may be made in accordance with the provisions of this section, a supplemental
benefit shall be paid in the form of a thirteenth monthly pension payment to each retiree or beneficiary of a deceased retiree. The payment for each retiree shall be determined by the
Board, but the total amount payable may not exceed the thirteenth check fund.
(e) Non-guarantee of benefits. By acceptance of a supplemental benefit under this section, each retiree and beneficiary acknowledges that they have no right, title or interest in any
such benefits except as may be determined by the Board of Trustees. The payment of a thirteenth check in any year shall not create any right, title or interest in any person to the payment
of a thirteenth check in any other year. The Board of
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Pensions and Retirement 31
Trustees reserves the exclusive right to alter the manner of payment of this benefit or, to decline the payment of such benefit in any year in which the Board, in the exercise of its
fiduciary responsibility and its sole discretion, determines it is in the best interest of the Plan to forego such payment.
(f) Rule-making authority. The Board of Trustees shall have authority to make such uniform rules as it deems appropriate to facilitate the payment of benefits under this system.
(Ord. No. 02-005, § 3, 2-5-02)
Sec. 18-184.2. Ad Hoc Supplemental Benefit.
(a) Supplemental benefit. "Available funds" shall be used to pay an "extra benefit" as set forth in this section, from "additional premium tax revenues" as defined by Section 175.351(1)(a),
Florida Statutes. An ad hoc supplemental benefit shall be paid annually, following one full year of retirement (disability, early or normal, DROP or deferred vested retirement), to eligible
retirees who have entered pay status. After the Board approves payment, the distribution shall be made by the end of the second calendar quarter.
(b) Using available funds, an ad hoc supplemental benefit shall be paid to each eligible retiree who retires after the adoption of this section, provided that additional premium tax
revenue is available. For purposes of this section, eligible retiree shall mean any member who is currently employed and future members who retire after earning ten or more years of
actual service, including DROP participants. Any ad hoc supplemental benefits payable under this section to active DROP participants shall be paid into a member's DROP account, beginning
one year after entering DROP.
(c) Calculation of ad hoc benefit. Each eligible retiree shall receive a distribution of available funds of up to five hundred dollars ($500) per year of credited service, for each
year of credited service in the plan, not to exceed twenty years. The city delegates to the Pension Board the ability to adopt administrative rules to implement this section.
(d) Calculation of available funds. On the date of adoption of this section, the pension plan provides for a twelve percent (12%) member contribution rate. Any future increases in
the member contribution rate over twelve percent (12%), including but not limited to COLA costs described in section 18-180.2, shall first be deducted from available funds. Prior to
paying ad hoc supplemental benefits, the availability of additional premium tax revenues and available funds shall be confirmed in writing by the Pension Board's actuary. From time to
time, the Pension Board may recommend adjustments to the calculation formula, based on the projected status of available funds.
(e) Lump sum supplemental benefit for eligible recent retirees. Available funds shall also be used by the Board to pay a lump sum supplemental benefit to recent retirees who separated
from service on or after October 1, 2005 but prior to the adoption of this section. The lump sum benefit shall be calculated based on the number of years of service between October
1, 2005 and retirement. The lump sum shall be paid in annual installments corresponding to the number of years of service worked subsequent to October 1, 2005. Such retirees shall not
be eligible for future ad hoc supplemental benefits.
(f) Non-guarantee of benefits. Prior to payment of any benefit under this section, eligible retirees shall acknowledge in writing that they have no right, title or interest in ad hoc
supplemental benefits in any future year. Eligible retirees shall further acknowledge that they have no expectation in any future ad hoc supplemental benefits since there may be years
where no ad hoc supplemental benefit is paid, based on the availability of additional premium tax revenue. Eligible retirees shall specifically acknowledge that available funds and additional
premium tax revenues may be used for other purposes in the future, as determined by the collective bargaining process.
(Ord. No. 10-016, § 1, 8-3-10)
Sec. 18-185. Normal retirement date.
The normal retirement date of each firefighter will be the first day of the month coinciding with, or
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32 Boynton Beach Code
next following, the earlier of the date on which such firefighter has attained and completed twenty (20) years of service, regardless of age, or at fifty-five (55) years of age with
ten (10) years of service. There is no age requirement for a normal retirement.
(Ord. No. 81-33, § 1, 10-12-81; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 00-19, § 1, 6-6-00)
Sec. 18-186. Payroll deductions; employee, state and city contributions.
Effective November 27, 2006, the City of Boynton Beach shall deduct from all firefighters entitled to the benefits of the article, twelve percent (12%) from each installment of salary
of each firefighter so long as such firefighter shall hold office or be employed. Said amount shall be so deducted and be deposited to the Boynton Beach Firemen’s Pension Fund. Payroll
deductions shall be deposited in the trust fund immediately, after each pay period. Any monies received or receivable by reason of laws of the state for the express purpose of funding
and paying for retirement benefits for firefighters of the City shall be deposited in the trust fund comprising part of this plan. Any such amount shall be deposited in the fund immediately,
and under no circumstances more than five (5) days after receipt by the City. The City shall make annual contributions to the trust fund, as needed, in an amount at least equal to the
difference each year between the total member contributions plus state contributions for the year, less the total cost for the year as shown by the most recent actuarial valuation for
the system. The City’s contribution, if so required, shall be deposited on at least a quarterly basis.
(Ord. No. 81-33, § 2, 10-12-81; Ord. No. 89-26, § 1, 9-19-89; Ord. No. 00-19, § 5, 6-6-00; Ord. No. 06-092, § 3, 12-5-06)
Sec. 18-187. Accounting.
The trust fund shall operate on a fiscal year basis, the fiscal year commencing October 1st, and ending September 30th.
(Ord. No. 90-24, § 1, 8-7-90)
Sec. 18-188. Required distributions.
In no event may a member’s retirement benefit be delayed the later of the April first (1st) following the calendar year in which he attains age seventy and one-half (70½) or April first
(1st) of the year following the calendar year in which he retires.
When a distribution of the participant’s entire interest is not made in a lump sum, the distribution will be made in one (1) or more of the following ways: over the life of the participant;
over the life of the participant and designated beneficiary; over a period certain not extending beyond the life expectancy of the participant; or over a period certain not extending
beyond the joint life and last survivor expectancy of the participant and a designated beneficiary.
If distribution has commenced before the participant’s death, the remaining interest will be distributed at least as rapidly as under the method of distribution being used as of the
date of the participant’s death.
The method of distribution, if the participant dies before distributions commence, must satisfy the following requirements:
(a) Any remaining portion of the participant’s interest that is not payable to a beneficiary designated by the participant will be distributed within five (5) years after the participant’s
death; and
(b) Any portion of the participant’s interest that is payable to a beneficiary designated by the participant will be distributed either:
(i) Within five (5) years after the participant’s death; or
(ii) Over the life of the beneficiary, or over a period certain not extending beyond the life expectancy of the beneficiary, commencing not later than the end of the calendar year
following the
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calendar year in which the participant died, (or, if the designated beneficiary is the participant’s surviving spouse, commencing not later than the end of the calendar year following
the calendar year in which the participant would have attained age seventy and one-half (70½).
(Ord. No. 90-24, § 1, 8-7-90; Ord. No. 93-16, § 3, 6-15-93)
Sec. 18-189. Repeal or termination of fund.
In the event of the termination or partial termination of this plan, each participant’s accrued pension benefit shall become nonforfeitable (one hundred (100) percent) to the extent
funded. At such time, the fund shall be appropriated and distributed in accordance with Chapter 175.351, Florida Statutes.
(Ord. No. 93-16, § 3, 6-15-93)
§ 18-190. Purchase of Military/Fire Service Credit/Permissive Service Credit.
Upon entry into the Plan, members shall be permitted to purchase up to an additional five (5) years of credited service based upon (i) service as a full-time firefighter employed by
a city, county, state, federal or other public agency or (ii) military service in the Armed Forces of the United States. Temporary, auxiliary, reserve, volunteer or private agency service
shall not apply. Members who do not have any prior firefighter service or military service shall be permitted to purchase up to five (5) years of permissive service credit, as permitted
by the Pension Protection Act of 2006. For each year purchased, benefits shall be calculated based on an enhanced multiplier of an additional three percent (3%) per year, resulting
in a total multiplier of six percent (6%) for each year purchased. Service credit purchased under the provisions of this section shall not count for vesting purposes.
Prior service shall not be granted until the member has paid to the Pension Fund the actuarial cost of the service purchased, as determined by the
actuary for the Plan. Members purchasing service credit shall provide the Board of Trustees with proof of prior service with honorable separation. No service credit may be purchased
if the member is receiving or will receive any other retirement benefit based on this service. The Board shall establish a uniform rule for the implementation of this provision.
The contribution by the member of the actuarially determined cost of the buyback may be made in one lump sum or may be made by payroll deductions in installments for a period not to
exceed five (5) years. A member electing to make installment payments shall be charged interest based on the actuarially assumed rate of return for the Plan. A member making installment
payments shall complete all required payments prior to payment of any benefit under this section.
A member who terminates service prior to vesting in the Plan shall be entitled to a refund, without interest, of all money paid to buyback prior military or fire service.
(Ord. No. 01-46, § 1, 8-7-01; Ord. No. 08-009, § 2, 5-6-08)
§ 18-191. Limitation on compensation.
Compensation in excess of the limitations set forth in Section 401(a)(17) of the Internal Revenue Code shall be disregarded. The limitation on compensation for “eligible employees”
shall not be less than the amount which was allowed to be taken into account under the Plan as in effect on July 1, 1993. For this purpose, an “eligible employee” is an individual who
was a member of the Pension Plan before the first plan year beginning after September 30, 1996.
(Ord. No. 96-35, § 1, 7-16-96)
Sec. 18-192. Transfer of accumulated leave.
(a) Members eligible to receive accumulated sick leave, accumulated vacation leave or any other accumulated leave payable upon separation may elect, not later than December 31st of
the calendar year
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prior to the year of retirement or entry into the DROP, to have the leave transferred to the Plan. For purposes of this section, the term “separation” shall mean termination of service
as a firefighter with the City. Members on whose behalf leave has been transferred may elect one of the following distribution options within thirty (30) days of separation. Members
failing to elect a distribution option within thirty (30) days of separation will be deemed to have elected option 1 below:
(1) Receive a lump sum equal to the transferred leave balance, or
(2) Transfer the entire amount of the transferred leave balance directly to any eligible retirement plan, or
(3) Purchase additional service credit as may permitted by the Code. If the leave balance exceeds the cost of the service credit purchased, the balance shall be paid to the member
in a lump sum, or
(4) Transfer the entire amount of the transferred leave into the member’s DROP account.
(b) Members who fail to elect a transfer not later than December 31st of the calendar year prior to the year of retirement or entry into the DROP will receive payment in a lump sum
at time of separation with all attendant tax consequences.
(c) If a member on whose behalf the City makes a transferred leave balance to the Plan dies after retirement or other separation, but before making an election, as provided, or after
making an election but before any distribution is made, the election option shall be void. In such an event, any person who would have received a death benefit had the member died in
service immediately prior to the date of retirement or other separation, shall be entitled to receive an amount equal to the transferred leave balance in a lump sum. In the case of a
surviving spouse or former spouse, an election may be made to transfer the leave balance to an eligible retirement plan in lieu of the lump sum payment. Failure to make such an election
by the surviving spouse of former spouse with sixty (60) days of the member’s death, will be deemed an election to receive a lump sum payment.
(d) The Board, by rule, shall have the authority to enact administrative rules for purposes of administering the provisions of this section, consistent with the Federal tax laws in
effect on the date of transfer. No such rule shall conflict with the provisions of this section.
(e) Members electing to enter into the DROP shall be required to preserve a balance of one hundred and twenty (120) hours of sick leave and one hundred and twenty (120) hours of vacation
leave at the time of entry into the DROP.
(f) The value of the leave transferred shall be determined in accordance with applicable city personnel policies or collective bargaining agreements.
(Ord. No. 01-63, § 1, 12-18-01)
Secs. 18-193—18-194. Reserved.
ARTICLE V. DEFERRED COMPENSATION
PLAN FOR UNCLASSIFIED PERSONNEL
Sec. 18-195. Authorized.
The city commission hereby authorizes execution of the Deferred Compensation Plan with the International City Management Association Retirement Corporation attached hereto as Appendix
A.
(Ord. No. 79-19, Art. I, § A, 12-5-79)
Editor’s note-Appendix A is not set out in this Code, but is on file in the office of the city clerk.
Sec. 18-196. Agreements with employees
authorized.
The city commission hereby authorized the city manager to execute all joinder agreements with said employees and other eligible officials and officers which are necessary for said
person’s participation in the plan.
(Ord. No. 79-19, Art. I, § B, 12-5-79)
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ARTICLE VI. FLEXIBLE BENEFIT PLAN
Sec. 18-197. Authorized.
The city commission hereby authorizes adoption and creation of an Internal Revenue Service Code Section 125, Flexible Benefit Plan, for insurance premiums only.
(Ord. No. 90-41, § 1, 9-18-90)
Sec. 18-198. Payroll deductions.
The city shall implement payroll deductions in conformity with the flexible benefit plan and the Internal Revenue Code Section 125, as amended from time to time.
(Ord. No. 90-41, § 1, 9-18-90)
Sec. 18-199. Pension plan contributions.
All pension contribution calculations shall be based upon an employee’s actual gross earnings without taking into account the dollar amount of any flexible benefits provided pursuant
to this article.
(Ord. No. 90-41, § 1, 9-18-90)
ARTICLE VII. ELIGIBLE ROLLOVER
DISTRIBUTIONS
Sec. 18-200. Trust-to-trustee transfer.
If the intended recipient of any “eligible rollover distribution,” as the term is defined in Section 402(c)(4) of the Internal Revenue Code of 1986, as amended, elects and directs to
have such distribution paid directly to an “eligible retirement plan” as defined in the Internal Revenue Code, and specifies the particular “eligible retirement plan” to which the distribution
is to be paid (in such form and at such time as the plan administrator or board of trustees to trustee may prescribe), then the distribution will be
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made in the form of a direct trustee transfer to the specified “eligible retirement plan” and shall not be subject to withholding tax as provided for in Section 402 of the Internal Revenue
Code of 1986, as amended.
(Ord. No. 93-10, § 2, 5-18-93)
Secs. 18-201—18-220. Reserved.
ARTICLE VIII. INVESTMENT POLICIES*
*Editor’s note-Ord. No. 94-52, § 1, adopted Dec. 20, 1994, created Art. VIII, Investment policies. Sec. 2 of such ordinance provided that subsections (d) and (d.1) of char., § 20.1
be transferred and renumbered under Art. VIII; hence, such provisions were redesignated as §§ 18-221 and 18-222. It should further be noted that Ord. No. 92-7, § 3, adopted Apr. 21,
1992, provided that to the extent any investment policy [in subsection d.1 (now § 18-222)] conflicts with an existing policy in subsection (d)[§ 18-221], the policy in this ordinance
[§ 18-222] shall control and supersede.
Sec. 18-221. Pension and retirement
fund-Generally.
The policies and limitations set forth in this section shall govern the investment of the funds of city pension and retirement systems; provided, these investment policies shall not
constitute a contractual part of any system and may, in the interest of members of the system, be altered by amendment made in the manner provided or authorized by this article.
(1) The aim of the investment policies shall be to preserve the integrity and security of fund principal, to maintain a balanced investment portfolio, and to secure the maximum return
on investments that is consonant with safety of principal.
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(2) The funds of each system may, subject to the limitations set forth in this section, be deposited in savings banks or federal savings and loan associations up to the amount, as to
each bank or association, guaranteed by the United States or an agency thereof, and may be invested in debt securities, including tax sale certificates limited to those of the city of
any other municipality within the state, and of Palm Beach County, and in preferred and common stocks and mutual fund shares.
(3) Of the total fund principal in any system, including the amounts deposited in banks or associations, the total amount thereof invested in tax sale certificates shall not exceed
30%; of the total amount thereof invested in preferred stocks and in debt securities other than tax sale certificates may aggregate 100%; the total amount thereof invested in preferred
stocks shall not aggregate more than 20%; and the total amount thereof invested in common stocks and mutual fund shares shall not aggregate more than 65%. Percentages shall be based
on cost or amortized cost to the fund of all securities purchased.
(4) The following minimum standards shall, as to the funds of each pension and retirement system, govern the eligibility of securities for acquisition as fund investments:
a. All corporate and association securities and mutual fund shares shall be issued by a corporation or other legal person incorporated or otherwise organized within the United States
and domiciled therein.
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b. Not more than two and 2.5% of the total fund principal or $10,000, whichever is the larger amount, shall be invested in any single security other than obligations of the United States
or an agency thereof.
c. All bonds and preferred stocks shall be rated “A” or higher by the investment services published by either Moody’s Investors Service or Standard & Poor’s Corporation.
d. Bonds and preferred stocks that are convertible into common stock or that include warrants for the purchase of common stock shall not be purchased if any premium price is being paid
for the conversion privilege or for the warrants.
e. All common stocks except those of banks and insurance companies and except mutual fund shares must have been listed on the New York Stock Exchange or the American Stock Exchange
for a period of at least one year immediately preceding the acquisition thereof.
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f. All common stocks and mutual fund shares must have a record of uninterrupted dividend payments throughout the ten-year period immediately preceding the acquisition of the stock as
a fund investment.
g. At least 90% of the total investments of each mutual fund invested in shall qualify as eligible under the provisions of this section as a direct investment of the pension and retirement
system.
(5) All investments of funds of each existing system made prior to the adoption hereof may, in the discretion of its trustees, be retained as investments.
Sec. 18-222. Deferred retirement option plan.
(a) A deferred retirement option plan (“DROP”) is hereby created.
(b) Eligibility to participate in the DROP is based upon eligibility for normal service retirement in the plan.
(c) Participation in the DROP must be exercised within the first 30 years of employment; provided, however, that participation in the DROP, when combined with participation in the retirement
plan as an active member, may not exceed 30 years. The maximum period of participation in the DROP is five years. An employee’s election to participate in the DROP plan shall be irrevocable
and shall be made by executing a resignation notice on a form prescribed by the city.
(d) Upon exercising the right to participate in the DROP, an employee’s creditable service, accrued benefits and compensation calculation shall be frozen and shall utilize the average
of the five highest of the ten years immediately preceding participation in the DROP as the compensation basis. Accumulated, unused sick and vacation leave shall be included
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in the compensation calculation; provided, however, that a minimum balance of 120 hours of sick leave and 120 hours of vacation leave shall be maintained by the employee and excluded
from this calculation. The retained leave balance, including any additions, shall be distributed at the conclusion of DROP participation and separation from service.
(e) Payment shall be made into the employee’s DROP account as if the employee had terminated employment in the City in an amount determined by the employee’s selection of the payment
option.
(f) An employee’s account in the DROP program shall earn interest in one of three ways. The selection of the earnings program shall be irrevocable and shall be made prior to the first
deposit in the DROP account. The options are:
(1) Gain or lose interest at the same rate as the Plan; or,
(2) At an annual fixed rate of 7%; or
(3) In a self-directed account utilizing mutual funds selected by the board.
(g) An employee shall terminate service with the city at the conclusion of five years in the DROP.
(h) All interest shall be credited to the employee’s DROP account on the last day of the month in which the member separates from service. In the event that a member dies while in
the DROP, interest shall be pro-rated to the last business day of the month preceding the death of the member.
(i) Upon termination with the city, an employee may receive payment within 45 days of the member requesting payment or may defer payment until a time not later than the latest date
authorized by Section 401(a)(9) of the Internal Revenue Code at the option of the member.
(j) Payments from the DROP may be received as a lump sum installment payment or annuity, provided, however, that at all times, the DROP shall be subject to the provisions of the Internal
Revenue Service.
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(k) No payment may be made from the DROP until the employee actually separates from service with the City.
(l) If an employee shall die during participation in the DROP, a survivor benefit shall be payable in accordance with the form of benefit chosen at the time of entry into the DROP.
(m) Upon commencement of participation in the DROP, the member shall no longer be eligible for disability retirement from the pension plan. If a member becomes disabled during the DROP
period, the member shall be treated as if he/she retired on the day prior to the date of disability.
(Ord. No. 00-13, § 1, 4-18-00)
ARTICLE IX: EARLY RETIREMENT
INCENTIVE PROGRAM
Sec. 18-223. Creation of Early Retirement
Incentive Program and eligibility.
The City Commission may from time to time establish early retirement incentive programs. Early retirement incentive programs shall be created by ordinance. No ordinance establishing
an Early Retirement Incentive Program shall be enacted without:
(a) A written recommendation from the City Manager and the Finance Director that the proposed Early Retirement Incentive Program is beneficial to the administration of the city workforce
and is fiscally beneficial;
(b) An actuarial study has been conducted and presented to the City Commission; and
(c) Ordinance No. 03-061 has been furnished to the State of Florida for review, as required by law.
(Ord. No. 00-66, § 2, 11-21-00; Ord. No. 03-058, § 2, 11-5-03; Ord. No. 03-061, § 3, 12-2-03)
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Sec. 18-224. Participation in program.
No employee shall be compelled to participate in an Early Retirement Incentive Program. Participation is optional and shall be evidenced by the employees’ signature on a participation
agreement.
(Ord. No. 00-66, § 3, 11-21-00; Ord. No. 03-058, § 3, 5, 11-5-03; Ord. No. 03-061, § 3, 12-2-03)
Sec. 18-225. Benefit provided.
The benefits provided by any early retirement incentive program shall not be forfeited when an employee who was eligible for participation in an Early Retirement Incentive Program offered
by the city dies following execution of an agreement for participation but prior to his or her actual retirement date.
(Ord. No. 00-66, § 4, 11-21-00 11-21-00; Ord. No. 03-058, § 4, 11-5-03; Ord. No. 03-061, § 3, 12-2-03)
Sec. 18-226. Statement of actuarial impact.
The surviving spouse, or any other legally designated representative, of an employee who is eligible for participation in an Early Retirement Incentive Program may exercise the employee's
option to participate when the employee dies or is determined to be mentally incompetent subsequent to the adoption of the ordinance enacting the Early Retirement Incentive Program but
prior to the deadline for electing to participate in the program, provided the spouse or representative executes the participation agreement on behalf of the employee. In such cases,
the employee's department head, subject to approval by the City Manager, shall establish the actual date of retirement.
(Ord. No. 00-66, § 5, 11-21-00; Ord. No. 03-058, § 6, 11-5-03; Ord. No. 03-061, § 3, 12-2-03)
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Sec. 18-227. Deadline for participation.
Eligible employees who elect to participate in the Early Retirement Incentive Program must execute an Agreement for Participation and Waiver of Rights form on or before 5:00 p.m. on
January 19, 2001.
(Ord. No. 00-66, § 6, 11-21-00)
Sec. 18-228. Filing with Division of Management.
The City Administration and the administrators of the retirement plans, in accordance with the requirements of F.S. Chapter 112, and Rule 60T-1.004, are directed to certify and furnish
a copy of Ordinance No. 00-66, together with the statement of actuarial impact referenced herein to the Department of Management, Division of Insurance. The City Administration and plan
administrators are authorized to make such supplemental filings with the Division of Insurance as is necessary to effectuate this Early Retirement Incentive Plan.
(Ord. No. 00-66, § 7, 11-21-00; Ord. No. 03-058, § 7, 11-5-03)
Sec. 18-229. Execution of agreements.
The City Commission authorizes the City Manager and City Clerk to execute Agreements for Participation in Early Retirement Incentive Program and Waiver of Rights forms with eligible
employees. A copy of the Agreement for Participation is attached to Ordinance No. 00-66 as Exhibit “B.”
(Ord. No. 00-66, § 8, 11-21-00; Ord. No. 03-058, § 8, 11-5-03)
Sec. 18-230. Ratification of forms.
The City Commission adopts and ratifies the Commencement Notice, Acknowledgment of Receipt of Program Commencement Notice, Information Fact Sheet, and Employee Declination to Participate
forms, heretofore prepared by the City Administration, copies of which are attached to Ordinance No. 00-66 as
Exhibits “C,” “D,” “E,” and “F” respectively. The City Administration is authorized to modify these forms when modification is necessary to facilitate the objectives of this article
or when amendment is required to conform the forms to requirements of state or federal law. In the event of a dispute over the meaning, interpretation, or application of Exhibits “B,”
“C,” “D,” “E,” and “F,” the decision of the City Manager as to the meaning, interpretation, or application shall be controlling.
(Ord. No. 00-66, § 9, 11-21-00; Ord. No. 03-058, § 9, 11-5-03)
ARTICLE X – PENSION PLAN
FOR ELECTED OFFICIALS
Sec. 18-240. Creation and maintenance of pension benefits.
(a) A pension and retirement system for elected officials of the City is hereby established to provide retirement benefits by participating in the Florida Retirement System as provided
in F.S. Chapter 121, and that the benefits to the Florida Retirement System shall be extended to such elected officials pursuant to the rules, regulations and provisions of the Florida
Retirement System, the applicable state laws and amendments thereto.
(b) Eligible elected officials may purchase past service retro-active to the first day of the first year of election. The cost of the purchase of past service shall be paid by the City.
(Ord. No. 08-019, § 3, 7-15-08)
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