02-005ORDINANCE NO. O~--d)O~--
AN ORDINANCE OF THE CITY OF BOYNTON BEACH,
FLORIDA, AMENDING SECTION 18-181(A) (4) OF THE
FIREFIGHTERS' RETIREMENT PLAN TO PERMIT THE
PURCI'IASE OF INVESTMENT GRADE BONDS WITH NOT
GREATER THAN 10% OF THE FIXED INCOME PORTFOLIO
TO HOLD AN INVESTMENT RATING OF BAA; AMENDING
SECTION 18-183 (a) OF THE FIREFIGHTERS '
RETIREMENT PLAN TO PROVIDE FOR THREE YEAR
AVERAGING IN THE COMPUTATION OF AVERAGE FINAL
COMPENSATION; CREATING SECTION 18-184 OF TEE
FIREFIGHTERS' RETIREMENT PLAN PROVIDING FOR
THE PAYMENT OF A THIRTEENTH MONTHLY PENSION
PAYMENT IN YEARS IN WHICH THE BOARD OF
SYSTEM,~ -DETERMINES
THAT AN ACTUARIAL GAIN FAS OCCURRED; PROVIDING
~ EFFECTIVE DATE; PROVIDING A COAIFLICTS
CLAUSE; PROVIDING A REPEALER.
WHERE/LS, the City of Boynton Beach Florida,
retiremenu plan and trus5 fund for firefighters;
WHEREAS, the Board of Trustees of the
Firefighters' Retiremenu Plan desires uo amend
permit the purchase of investment grade bonds;
presently has a
Boynton Beach
the City Code to
WHEREAS, the Board of Trustees of the Boynton Beach
Firefighters' Retirement Plan desires to amend the City Code to
provide for three year averaging in the computation of a member's
final average monthly compensation;
WHEREAS, the Board of Trustees of the Boynton Beach
Firefighters' Retirement Plan desires to amend the City Code to
provide for a thirteenth monthly pension payment to all retirees
and beneficiaries of the Retirement Plan in years when the Plan
realizes an actuarial gain; and
Page 1 of 7
WHEREAS, the City Commission has determined this amendment
will benefit the citizens of the City of Boynton Beach;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA:
Section 1: Section 18-181(a) (4) is hereby amended to read as
follows:
Section 18-181. Investments
The lnvesEmen5 powers and authority of the board of trustees
of the munIcipal £ire£ighters pension trust fund shall be in
accordance with Florida Statutes, Section 175.071, provided,
however:
(a)
The aggregaue investment of fund assets in:
(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 an one issuing company;
nor shall the aggregate of such investments in any one
company exceed three (3) per cent of the outstanding
bonds or other certificates of indebtedness of that
company. Fund assets may invested in investment qrad~
Page 2 of 7
bonds with not qreater than 10% of the fixed
portfolio to hold an investment ratinq of Baa.
Section 2: Section 18-183(a)
follows:
Section 18-183. Averaqe final comDensation defined;
annual compensation defined.
(e) ~final
income
is hereby amended to read as
avera~m
Average 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 fzve~j~'~' consecutlve ~=~ ~f service ~ ~=
years of the last ten years of creditable service Drior
to retirement.
Section 3: Section 18-184 is hereby created to
follows:
Section 18-184. Thirteenth Check.
{a) Thirteenth Check SupDlement Created.
A benefit is hereby created to be Drovided in
the form of a thirteenth monthly retirement
Davment 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,
followinq consultation with the actuary to the
Board.
read as
Page 3 of 7
Determinaumon of Actuarial Gains.
The acsuary for the Retirement Fund shall
perform an annual calculation ~o determine
the basis of all acEuarial factors used to
measure the Plan whether or not the Plan has
(c)
sustained an actuarial ~ain or loss.
actuary shall repot5 annually at a special
meetin~ of the Board re~ardinq the actuarial
~ain or loss for'the year. Once certified by
the acnuaz-M, the Board shall notify retirees
reqardin~ 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 ~ain has occurred, no benefit
shall be payable. In years in which th~
Plan's actuarial qain is sufficient to support
the payment of a thirteenth check, the payment
shall be made in December.
Creation of Thirteenth Check Fund.
Followinq the determination of actuarial ~ain,
a fund is hereby created, within the assets of
the Retirement System, which shall consist of
the portion of the actuarial qain attributabl~
to retirees and beneficiaries. This portion
shall be equal to the total actuarial ~ain
Page 4 of 7
multiplied by the ratio of the present valu~
of benefits for retirees and beneficiaries to
the present value of all future benefits for
all members of the System. The fund shall b~
co-minqled with other assets of the System but
shall be measured for accountinq purposes as ~
separate fund within the Retirement System for
the exclusive purpose of
under this Section.
(d) Distribution of Benefits;
(e)
providinq 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 ~
thirteenth monthly
retiree or beneficiary of
The payment for each
determined by the Board,
payable may not exceed the
Fund.
Non-Guarantee of Benefits.
pension payment to each
a deceased retiree
retiree shall b~
but the total amount
Thirteenth Check
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. Th~
Page 5 of 7
payment of a thirteenth check in any year
shall not create any riqht, title or interest
in any Derson to the ~ayment of a thirteenth
check in any other year. The Board of
Trustees reserves the exclusive riqht 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 resDons~bilitY and its sol~
discretion, determines it is in the best
interest of the Plan to foreqo such payment.
Rule-Makinq Authority.
The Board of Trustees shall have authority to
make such uniform rules as it deems
apDroDriate to facilitate the payment of
benefits under this Section.
Section 4: That all Ordinances or parts of Ordinances in
conflict herewith be and the same are hereby repealed.
Section 5: Should any section or provision
Ordinance or portion hereof, any paragraph, any sentence,
of this
or word
be declared by a court of competent jurisdiction to be invalid,
such decision shall not affect the remainder of this Ordinance.
Section 6: Authority is hereby granted to codify this
Ordinance.
Page ~ of 7
Section 7: This Ordinance shall become effective immediately upon passage,
but the provisions of Section 2 shall not take effect until receipt by the City Manager of a
resolution by the Board of Trustees of the Boynton Beach Firefighters' Retirement Plan
advising that a majority of the membership of the Plan has approved the use of future
Chapter 175 insurance prem/um monies ro offset the cost of adopting Section 2 of this
Ordinance.
2002.
FIRST READING this I~' day of January, 2002
SECOND, FINAL READING AND PASSAGE this -~ day of February,
ATTEST:
C¢;~mmissioner
Commissioner