19-009 1 ORDINANCE NO. 19-O0 9
3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH
4 AMENDING CHAPTER 18, ARTICLE IV, PENSIONS
5 FOR FIREFIGHTERS; AMENDING SECTION 18-180 TO
PROVIDE A MAXIMUM BENEFIT CAP OF $95,000;
7 AMENDING SECTION 18-180.1 TO PROVIDE FOR A
8 REVISED EARLY RETIREMENT DATE FOR NEWLY
9 HIRED FIREFIGHTERS; AMENDING SECTION 18-185
10 TO PROVIDE FOR A REVISED NORMAL
11 RETIREMENT DATE FOR NEWLY HIRED
12 FIREFIGHTERS; PROVIDING FOR CONFLICTS,
13 SEVERABILITY, CODIFICATION AND AN EFFECTIVE
14 DATE.
15
16 WHEREAS, the City of Boynton Beach and the International Association of
17 Firefighters,Local 1891 have negotiated amendments to the Boynton Beach Firefighter Pension
18 Trust Fund;
19 WHEREAS, Addendum "E".to the parties'. collective bargaining agreement provides
20 for a revised benefit structure for new firefighters. In particular, Addendum "E" provides for
21 revised early and normal retirement dates for newly hired firefighters;
22 WHEREAS, Addendum "E" also provides for a maximum benefit cap of$95,000 for
23 active firefighters, as permitted by law;
24 WHEREAS, the Board of Trustees of the Boynton Beach Firefighter Pension Trust
25 Fund has recommended the adoption of an Ordinance to codify Addendum"E";
26 WHEREAS, the City Commission of the City of Boynton Beach, desires to amend
27 Chapter 18 of the Code of Ordinances of the City as recommended by the Board of Trustees.
28 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
29 THE CITY OF BOYNTON BEACH,FLORIDA:
30 Section 1. The foregoing Whereas clauses are true and correct and are now ratified
31 and confirmed by the City Commission.
32
33
34 Section 2: Section 18-180 is hereby amended to read as follows:
35 Sec. 18-180. Monthly retirement income.
36
37 (a) The amount of monthly retirement income payable to a firefighter who retires on or
38 after the firefighter's normal retirement date shall be an amount equal to the number of the
39 firefighter's years of credited service multiplied by 3% of such firefighter's average final
40 compensation. Effective October 1, 2018 the maximum normal retirement benefit shall be
41 capped at ninety-five thousand dollars ($95,000)(hereinafter the "maximum benefit cap"). The
42 maximum benefit cap will be increased annually beginning on the first (1st) day of October
43 2023 (and on each October 1st thereafter) by one and a half percent (1.5%). The maximum
44 benefit cap shall also apply to early retirement, deferred vested retirement and disability
45 retirement. In the case of early retirement and deferred vested retirement,the maximum benefit
46 cap shall be applied to the normal retirement benefit before reflecting any reductions for early
47 retirement. At all times, the Plan shall comply with the maximum benefit limitations of IRS
48 Code Section 415(d) and all applicable Treasury Regulations.
49
50 (b) In no event may a member's annual benefit exceed the lesser of:
51 (1) Ninety thousand dollars (adjusted for cost of living in accordance with Internal
52 ' - :: . _ : : , - •- - _• . - ::•. --
53 effective); or
54
55 (2) One hundred percent of the aver _ . .• : :- - • • . - •• ' .
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62 If a member has less than ten years of service with the city, the applicable limitation in
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92
93 Section 3: Section 18-180.1 is hereby amended to read as follows:
94 Sec. 18-180.1 Computation of monthly retirement income in the instance of early retirement.
95
96 The benefit payable for early retirement shall be the same as determined for normal
97 retirement,as set forth in section 18-180, less three(3)per cent for each year or portion thereof
98 of which the member's actual retirement date precedes she date which would have been the
99 member's normal retirement date had such member remained in full-time employment with the
100 city. For all new members hired on or after February 5, 2019 (hereinafter"Tier 2 members"),
101 early retirement shall be available at age fifty(50)with at least ten(10)years of service,reduced
102 by less the three(3)per cent per year early retirement reduction described above.The maximum
103 benefit cap established in 2019 shall apply to early retirement benefits, but for calculation
104 purposes shall be actuarially determined based on the member's normal retirement benefit.
105
106 Section 4: Section 18-18?s hereby amended to read as follows:
107 Sec. 18-182 Disability retirement benefits.
108
109 (a) Service incurred. Any member who receives a medically substantiated service
110 connected injury, disease or disability, which injury, disease or disability totally and
111 permanently disables such member to the extent that,in the opinion of the board of trustees,the
112 member is wholly prevented from rendering useful and efficient service as a firefighter, shall
113 receive a monthly benefit equal to sixty-six and two-thirds (66 2/3) per cent of the member's
114 basic rate of earnings in effect on the date of disability. Such benefit shall be payable on the
115 first day each month, commencing on the first day of the month following the latter to occur of
116 the date on which the disability has existed for three (3) months and the date the board of
117 trustees approved the payment of such retirement income. In the event of recovery prior to the
118 otherwise normal retirement date, credit for service during the period of disability shall be
119 granted for purposes of subsequent retirement benefits. The amount of the disability benefit
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120 payable from the fund shall be reduced by any amounts paid or payable as disability benefits
121 from workers' compensation and the federal social security system. The reduction for social
122 security benefits shall be in the amount of the primary insurance amount(PIA)only, and future
123 increase, if any, in the disabled member's social security disability benefit shall not serve to
124 reduce any further the disability benefit from the fund. The reduction for social security shall
125 terminate upon the attainment of age sixty-five (65). For purposes of compliance with Chapter
126 175, Florida Statutes, service-incurred disability benefits shall not be offset below 42% of
127 average final compensation. The maximum benefit cap established in 2019 shall apply to
128 service incurred disability retirement benefits under this subsection.
129
130 (b) Nonservice incurred. Any member with ten (10) years of continuous service who
131 receives a nonservice incurred injury, illness, disease or disability, and which illness, injury,
132 disease or disability totally and permanently disables such member to the extent that, in the
133 opinion of the board of trustees, the member is wholly prevented from rendering useful and
134 efficient service as a firefighter, shall receive from the fund in equal monthly installments an
135 amount equal to two and one-half(2'/2) per cent of that member's average final compensation
136 for each year of continuous service until death or recovery from disability,whichever shall first
137 occur; Such benefit shall be payable on the first day of each month, commencing on the first
138 day of the month following the latter to occur of the date on which the disability has existed for
13.9 three (3) months and the date the board of trustees approved the payment of such retirement
140 income. For purposes of compliance with F.S. Chapter 175, the minimum nonservice-incurred
141 disability benefit shall be 25% of average final compensation. The maximum benefit can
142 established in 2019 shall apply to non-service incurred disability retirement benefits under this
143 subsection.
144
145 Section 5: Section 18-185 is hereby amended to read as follows:
146 Sec. 18-185 Normal retirement date.
147
148 The normal retirement date of each firefighter will be the first day of the month coinciding with,
149 or next following, the earlier of the date on which such firefighter has attained and completed
150 twenty (20) years of service, regardless of age, or at fifty-five (55) years of age with ten (10)
151 years of service. There is no age requirement for a normal retirement. For all members first
152 hired on or after February 5, 2019 (hereinafter "Tier 2 members"), the normal retirement date
153 will be the first day of the month coinciding with or next following the date on which the
154 firefighter has attained and completed twenty-five (25) years of service, regardless of age, or
155 at fifty-five(55)years of age with ten(10)years of service. If a Tier 2 member separates from
156 service with less than twenty-five (25) years of service the normal retirement date shall be the
157 first day of the month coinciding with, or next following, attainment of age fifty-five(55).
158
159
160
161 Section 6: That all ordinances or parts of ordinances in conflict herewith be and the
162 same are hereby repealed.
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163 Section 7: Should any section or provision of this ordinance or portion hereof, any
164 paragraph,any sentence,or word be declared by a court of competent jurisdiction to be invalid,
165 such decision shall not affect the remainder of this ordinance. •
166 Section 8: Authority is hereby granted to codify this ordinance.
167 Section 9: As agreed by the parties, the sum of$150,000 of Chapter 175 insurance
168 premium taxes (IPT) shall be used to reduce the Pension Fund's unfunded liability as follows:
169 $75,000 of IPT shall be allocated effective October 1, 2019 and $75,000 of IPT shall be
170 allocated effective October 1 2020, consistent with SB 172 and past practice.
171 Section 10: Once this Ordinance shall become effective the $95,000 cap shall not be
172 interpreted as applying to the accrued benefit of any grandfathered members as of October 1,
i73 2018. For purposes of this section, "grandfathered member" shall include existing retirees,
174 deferred vested members, DROP participants and currently employed firefighters who are
175 presently eligible for normal retirement.
176 Section 11. This Ordinance shall take effect when the following conditions precedent
177 to the adoption of this Ordinance have occurred.
178 (a) the City Commission has received and has accepted a report establishing the actuarial
179 soundness of these amendments or a letter of opinion from the Plan Actuary that the amendment
180 has no actuarial impact; and
181
182 (b) the Ordinance and impact statement have been sent to the State of Florida Division of
183 Retirement; and
184
185 (c) the IAFF has advised the City in writing that they have accept the changes proposed
186 in this ordinance and waive both pre-implementation and impact bargaining.
187
188 (d) the Boynton Beach Firefighter Pension Board Attorney has provided the City with a
189 written legal opinion that the amendments are in accord with all State and Federal Statutes and
190 Regulations.
191
192
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193
194 FIRST READING this c44" day of (-6 toy 0,612\1 , 2019.
195 SECOND, FINAL READING AND PASSAGE this 1 q day of
196 r tb rl,t a fu , 2019.
197 CITY OF BOYNTON BEACH, FLORIDA
198
199 YES NO
200
201
202 Mayor—Steven B. Grant
203
204 Vice Mayor—Christina L. Romelus
205
206 Commissioner—Mack McCray
207
208 Commissioner—Justin Katz
209 ✓
210 Commissioner—Aimee Kelley
211 57-0212 VOTE
213 ATTEST:
214
215
216 `fYt
217 Jud' A. Pyle, C
218 Cit Clerk
219
220
221 (Corporate Seal)
222
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