20-003 ORDINANCE NO. 20-003
2
3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA;
4 AMENDING CHAPTER 18, ARTICLE IV, PENSIONS FOR
5 FIREFIGHTERS; AMENDING SECTION 18-180 TO INCREASE THE
6 MAXIMUM BENEFIT CAP BEGINNING IN 2020; AMENDING
7 SECTION 18-182(g) TO ALIGN THE DEATH BENEFIT WITH THE
8 ACCRUED BENEFIT; AMENDING SECTION 18-182(i) OF THE CITY
9 CODE TO IMPLEMENT THE CONCLUSIVE CANCER
10 PRESUMPTION ESTABLISHED BY SECTION 112.1816, FLA. STAT.,
11 AND THE REBUTTABLE DISEASE PRESUMPTIONS UNDER
12 SECTIONS 112.18, 112.181 AND 175.231, FLA. STAT; CREATING
13 SECTION 18-194 TO PROVIDE FOR A UNIFORM DROP BENEFIT
14 FOR NEWLY HIRED FIREFIGHTERS;RENUMBERING SECTION 18-
15 222 AS SECTION 18-194 TO GOVERN DROP BENEFITS FOR
16 GRANDFATHERED MEMBERS; PROVIDING FOR INCLUSION IN
17 THE CODE; PROVIDING FOR SEVERABILITY; PROVIDING FOR A
18 REPEALER; AND PROVIDING FOR AN EFFECTIVE DATE.
19
20 WHEREAS, the City of Boynton Beach and Local 1891 have negotiated a new
21 collective bargaining agreement addressing pension and related matters.
22
23 WHEREAS, the Board of Trustees of the City of Boynton Beach Municipal
24 Firefighters Pension Trust Fund has prepared this ordinance to implement the parties'
25 agreement.
26
27 WHEREAS, the Florida Legislature has created a conclusive duty-related cancer
28 presumption.
29
30 WHEREAS, Senate Bill 426 (SB 426) amends Chapter 112, Florida Statutes, by
31 creating Section 112.1816, governing disability and death benefits for firefighters.
32
33 WHEREAS, SB 426 governs all Firefighter Pension Plans in Florida.
34
35 WHEREAS, the Board of Trustees of the City of Boynton Beach Municipal
36 Firefighters Pension Trust Fund has prepared this ordinance to implement SB 426, effective
37 July 1, 2019.
38
39 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
40 THE CITY OF BOYNTON BEACH, FLORIDA,THAT:
41
42 Section 1: The foregoing "Whereas" clauses are true and correct and incorporated
43 herein by this reference.
44
45 Section 2: Section 18-180 of the Code of Ordinances of the City of Boynton Beach
46 is hereby amended to read as follows:
1
4.
4 Sec. 18-180. Monthly retirement income.
4
5 (a) The amount of monthly retirement income payable to a firefighter who retires on or
5 after the firefighter's normal retirement date shall be an amount equal to the number of
5' the firefighter's years of credited service multiplied by 3%of such firefighter's average
5 final compensation. Effective October 1, 2018 the maximum normal retirement benefit
5 shall be capped at ninety-five thousand dollars ($95,000) (hereinafter the "maximum
5 benefit cap"). The maximum benefit cap will be increased annually beginning on the
5 first day of October 2023 2020 (and on each October 1 thereafter) by one and a half
5 percent(1.5%). The maximum benefit cap shall also apply to early retirement,deferred
5 vested retirement and disability retirement. In the case of early retirement and deferred
5' vested retirement, the maximum benefit cap shall be applied to the normal retirement
61 benefit before reflecting any reductions for early retirement. At all times,the plan shall
6 comply with the maximum benefit limitations of IRS Code Section 415(d) and all
6 applicable Treasury Regulations.
6
6 Section 3: Section 18-182(g) of the Code of Ordinances of the City of Boynton Beach is
6 hereby amended to read as follows:
6
6 Section 18-182. Disability retirement and death benefits.
6:
6' (g) Survivor's benefit. If any member with at least ten(10)years of continuous service shall
7 die prior to retirement or other termination of employment with the city,a death benefit
7 shall be payable to the deceased member's spouse. The benefit shall equal twe-an-ene-
7 half(2'/z)three percent(3%)of average final compensation for each year of continuous
7; service. It shall be payable in equal monthly installments commencing the first day of
7 the month following the date of death . - --• •-: . -- -- - • - - • • - • •
7. &purse.
7'
7' Section 4: Section 18-182(i) of the Code of Ordinances of the City of Boynton Beach is
7: hereby created to read as follows:
7'
81 l Line of duty presumptions.
8
8 (1) Rebuttable presumptions: The provisions of Sections 112.18, 112.181, 175.231,
8; Fla.Stat.,are hereby codified within the Plan and are intended to be incorporated
8' by reference. The Board of Trustees may adopt uniform administrative rules
8. relating to these rebuttable presumptions and for the determination of any
8. disqualifying events reflected in Chapters 112 and 175, Fla. Stat.
8'
8: Non-rebuttable conclusive cancer presumption: The provisions of Section
8' 112.1816, Fla. Stat., are hereby codified within the Plan and are intended to be
9i incorporated by reference. The Board of Trustees may adopt uniform
9 administrative rules relating to this presumption and for the determination of any
9' disqualifying events as reflected in Chapters 112 and 175, Fla. Stat.
2
9,
9 Section 5: Section 18-222 of the Code of Ordinances of the City of Boynton Beach is
9 hereby renumbered as Section 18-194 and amended follows:
9
9' Sec. 18-194 18 222. Deferred retirement option plan.
9: (a) The following provisions shall apply to members hired prior to January 21, 2020:
9' (1) A deferred retirement option plan ("DROP") is hereby created.
101 a) Eligibility to participate in the DROP is based upon eligibility for normal service
10 retirement in the plan.
10, Participation in the DROP must be exercised within the first thirty (30) years of
10; employment; provided, however, that participation in the DROP, when
10 combined with participation in the retirement plan as an active member,may not
10, exceed thirty (30) years. The maximum period of participation in the DROP is
to, five (5) years. An employee's election to participate in the DROP plan shall be
10' irrevocable and shall be made by executing a resignation notice on a form
10; prescribed by the City.
10, a) Upon exercising the right to participate in the DROP, an employee's creditable
11 i service, accrued benefits and compensation calculation shall be frozen and shall
11 utilize the average of the five (5) highest of the ten (10) years immediately
11 preceding participation in the DROP as the compensation basis. Accumulated,
11 , unused sick and vacation leave shall be included in the compensation
11 calculation; provided, however, that a minimum balance of 120 hours of sick
11 , leave and 120 hours of vacation leave shall be maintained by the employee and
11 excluded from this calculation. The retained leave balance, including any
11 ' additions, shall be distributed at the conclusion of DROP participation and
11 . separation from service.
11 , 01 Payment shall be made into the employee's DROP account as if the employee
121 had terminated employment in the City in an amount determined by the
12 employee's selection of the payment option.
12' (6) An employee's account in the DROP program shall earn interest in one of three
12; ways. The selection of the earnings program shall be irrevocable and shall be
12 made prior to the first deposit in the DROP account. The options are:
12 LAI Gain or lose interest at the same rate as the Plan; or,
12. (b) At an annual fixed rate of seven percent(7%); or,
12' Lc,) In a self-directed account utilizing mutual funds selected by the board.
12; (7) An employee shall terminate service with the City at the conclusion of five (5)
12, years in the DROP.
3
13ii C8j All interest shall be credited to the employee's DROP account on the last day of
13 the month in which the member separates from service. In the event that a
13 member dies while in the DROP, interest shall be pro-rated to the last business
13 day of the month preceding the death of the member.
13 f9,2 Upon termination with the City,an employee may receive payment within forty-
13 . five (45) days of the member requesting payment or may defer payment until a
13 time not later than the latest date authorized by Section 401(a)(9)of the Internal
13 Revenue Code at the option of the member.
13 (10) Payments from the DROP may be received as a lump sum installment payment
13 or annuity,provided,however,that at all times,the DROP shall be subject to the
141 provisions of the Internal Revenue Service.
14 (11) No payment may be made from the DROP until the employee actually separates
14' from service with the City.
14 (12) If an employee shall die during participation in the DROP, a survivor benefit
14shall be payable in accordance with the form of benefit chosen at the time of
14, entry into the DROP.
14 (13) Upon commencement of participation in the DROP, the member shall no longer
14' be eligible for disability retirement from the pension plan. If a member becomes
14; disabled during the DROP period,the member shall be treated as if he/she retired
14' on the day prior to the date of disability.
151 fib) The following provisions of the"Consolidated Deferred Retirement Option Plan" shall
15 apply to members hired on or after January 1,2020:
15 () A City employee deferred retirement option plan("DROP") is hereby created,
15 amending, implementation, all conflicting provisions in existing DROP plans for
15 general employees,police officer employees,and fire/rescue employees.
15, �2,) Employees who reach eligibility for normal service retirement in the employee's
15. retirement plan may elect to enter DROP.
15' (3) An Employee may elect to participate in the Deferred Retirement Option Plan
15; ("DROP")provided they make the election no later than 30 days after reaching
15' their normal retirement date.Notwithstanding the foregoing, upon enactment of
161 this Ordinance employees who have reached normal retirement date and did not
16 enter DROP may make their initial election to participate in the DROP no later
16' than ninety(90)days after the implementation date of this ordinance.
16; al An election to participate in the DROP plan is irrevocable.
16 i5,) Employees may elect to participate by submitting an election to enter DROP to the
16. City's Human Resource Department("Department")on a form available from the
16. Department for that purpose. On receipt of the election to enter DROP the
16' Department will notify the administrator of the pension plan in which the
16: employee participates.
4
16 Participation in the DROP must be exercised within the first 30 years of combined
17" credited service(25 for law enforcement officers).
17 iD An employee shall not participate in the DROP for more than five years.
17 ( Upon an employee's election to participate in the DROP,the employee shall cease
17 to be an employee of the retirement plan and is precluded from accruing any
17 additional benefit under the Pension Fund. For all fund purposes,the employee
17 becomes a"retiree"(which term shall be synonymous with"employees"who elect
17 to enter DROP). The amount of credited service and final average salary freeze as
17 of the date of entry into the DROP.
17 ) Accumulated, unused sick(over 120 hours)and vacation leave(over 120 hours)
17 shall be deemed cashed out and included in the compensation calculation:
181 provided however,that a minimum balance of 120 hours of sick leave and 120
18 hours of vacation leave shall be maintained by the employee and excluded from
18 this calculation. The retained leave balance, including any additions, shall be paid
18 to the employee at the conclusion of DROP participation and separation from
18 service.
18, (10) DROP plan account shall be established for each employee who elects to
18 participate. These are not actual accounts but nominal accounts and balances are
18' kept as a bookkeeping process.
18, (11) Payment shall be made into the employee's DROP account as if the employee had
18' retired from the employ of the city. Payments into the DROP will be made
191 monthly over the period the employee participates in the DROP, up to a maximum
19 of 60 months or, pursuant to 401(A)(9)of the Internal Revenue Code,whichever
19' occurs first.
19; (12) An employee's participation in the DROP shall terminate at the end of five years
19 and the employee shall separate from City employment. Upon entering into the
19, DROP, an employee shall file with the Board a binding non-revocable letter of
19 resignation from city employment. The binding letter of resignation shall establish
19 a deferred termination date in accordance with the limitations of this DROP which
19: may be amended if an employee wished to separate from employment earlier than
19' the deferred termination date.
20) (13) All interest shall be credited to the employee's DROP account less any
20 outstanding loan balances on a quarterly basis with quarterly statements provided.
20' In the event that a employee dies while in the DROP, interest shall be pro-rated to
20. the last business day of the month preceding the death of the employee.
20 (14) During the period of the employee's participation in the DROP plan,the
20. employee's normal retirement benefit shall be accounted for and paid into the
20. employee's DROP plan account.
20' (15) The employee's DROP plan account shall be invested with the retirement plan
20: assets and credited with interest equal to the overall net(earning less costs)
20' investment rate of return on the retirement plan assets during the period of the
21 i employee's participation in the DROP plan.Notwithstanding Fund performance,
21 the crediting rate will be no less than 0%and no more than 8%.
5
21 (16) At the conclusion of the retiree's participation in the DROP plan, and as a
21 condition of participating in such plan,the retiree will continue retirement and
21 terminate City employment. The retiree will thereafter receive a normal monthly
21 retirement benefit at the same rate as previously calculated upon entry into the
21 DROP but the monthly amount will be paid to the retiree and no longer accounted
21 for in the DROP plan account. If the employee does not terminate participation in
21 the DROP plan at the end of the sixty(60)month maximum participation period,
21 no earnings will be credited on the DROP balance and no further DROP deposits
2211 will be niade.
22 (17) No amount can be paid from the retirement plan until the DROP employee
22 terminates employment.
22 (18) Upon termination,the retiree's DROP plan account will thereafter be distributed to
22 the retiree in a cash lump sum,which can be rolled over or paid in cash unless the
22 retiree elects an alternative distribution(a/k/a rollover). Direct rollover may be
22 accomplished by any reasonable means determined by the Pension Board.
22 (19) If a retiree dies before distribution of the retiree's DROP plan account commences,
22 the account balance shall be distributed paid to the retiree's designated beneficiary
22 in a lump sum,which can be rolled over or paid in cash at the beneficiary's
231 discretion.
23 (20) Distribution of an employee's DROP plan account shall begin as soon as
23 administratively practicable following the employee's termination of employment.
23 The employee must elect the distribution within but in no event later that 45 days
23 following the employee's termination date. If the employee does not timely
23 request the withdrawal of the asset in the DROP plan, no further earnings will be
23, credited on the DROP balance.
23 (21) Any form of payment selected by the employee must comply with the minimum
23: distribution requirements of the IRC 401(A)(9)e.g., payments must commence by
23' age 70'/z, or age 72 for retirees who attain age 70 'h on or after January 1,2020.
241
24 Section 6: It is the intention of the City Commission, and it is hereby ordained that the
24 provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the
24 City of Boynton Beach, that the sections of the Ordinance may be renumbered or relettered to
24 accomplish such intentions; and that the word "Ordinance" shall be changed to "Section" or
24 other appropriate word.
24.
24' Section 7: If any clause,section,or other part or application of this Ordinance shall be held
24: in any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional
24+ or invalid part or application shall be considered as eliminated and shall not affect the validity
25 I of the remaining portions or applications which shall remain in full force and effect.
25
25 Section 8: All ordinances or parts of ordinances, resolutions or parts of resolutions in
25; conflict herewith are hereby repealed to the extent of such conflict.
25
25, Section 9: This Ordinance shall take effect when the following conditions precedent to the
6
25, adoption of this Ordinance have occurred:
25
25: (a) the City Commission has received and has accepted a report establishing the
25 actuarial soundness of these amendments or a letter of opinion from the Plan Actuary
261 that the amendment has no actuarial impact; and
26
26 (b) the Ordinance and impact statement have been sent to the State of Florida
26 Division of Retirement.
26
26 I
26 FIRST READING this / day of �`,�n�3r'4 , 2020.
26' � ,,y�
26: SECOND,FINAL READING AND PASSAGE this l?5'`day of_e2020.
26'
271 CITY OF BOYNTON BEACH, FLORIDA
27
27YES NO
27
27 Mayor—Steven B. Grant ✓
27
27 Vice Mayor—Justin Katz ✓
27'
27: Commissioner—Mack McCray
27'
28 i Commissioner—Christina L. Romelus
28
28 Commissioner—Ty Penserga ✓
28:
28 S�
28 VOTE
28, ATTEST:
28'
28:
28 /f!.% R ._
291 Cr tal Gibson, MMC
29 City Clerk
29'
29:
29 (c(Vt rate Seal)
29 r. •
29 1;'•.
t�2,9 Coding: °'. ' Words in strikeout type are deletions from existing text.
' °±9.: `A c •Words in underline type are additions.
• NO
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