02-004 1
December 19, 2001
ORDINANCE o2.- .O~_ ~t
AN ORDINANCE OF THE CITY OF BOYNTO N BEACH, FLORIDA,
REPEALING ARTICLE III. PENSIONS FOR POLICE OFFICERS, OF
CHAPTER 18 OF THE BOYNTON BEACH COB E OF ORDINANCES.
AND ADOPTING A NEW ARTICLE III IN REPLACEMENT THEREOF TO
BE ENTITLED MUNICIPAL POE. ICE OFFICERS' RETIREMENT TRUST
FUND; PROVIDING FOR CREATION AND MAINTENANCE OF THE
FUNDi AND, PROVIDING FOR THE REPEAL OF ANY PART OF THE
BOYNTON BEACH CODE OF ORDINANCES, AN ORDINANCE OR
RESOLUTION OR PARTS THEREOF IN CONFL"ICT HEREWITH; AND,
PROVIDING FOR AN EFFECTIVE DATE HEREOF.
WHEREAS, the State Legislature of the State of Florida has enacted numerous
amendments to Chapter 185, Florida Statutes, known as the Municipal Police Officers'
Retirement Trust Funds; and
WHEREAS, the City Council of the City of Boynton Beach, Florida, desires to
rewse its Police Officers' Pension Ordinance in order to comply with State Statutes and
to provide pension benefits to its police officers;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF BOYNTON BEACH, FLORIDA:
Section 1. Article III of Chapter 18 of the Boynton Beach Code of Ordinances is
hereby repealed and a new Article III of Chapter 18 is hereby adopted as follows:
ARTICLE II. MUNICIPAL POLICE OFFICERS' RETIREMENT TRUST FUND
Section 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 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 shal~ be administered as set [orth in
this Article of Chapter 18 of the City of Boynton Beach Code.
The Fund shall be maintained in the following manner:
2
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 ~nsurance 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
Chapter 185, Florida Statutes, amended. These amounts are to be
deposited with the Board of Trustees within five (5) days of receipt
by the municipality. Chapter 185, Fla. Stat.
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 bas s. All pickup contributions shall be treated as
employer contributions for the purposes of determining tax
3
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. Chapter 185, Fla. Stat., Boynton Beach
Code of Ordinances Sec. 18-170.
By all fines and forfeitures ~mposed and collected from any police
officer because of the violation of any rule and regulation adopted
by the Board of Trustees. Chapter 185, Fla Stat.
By mandatory payment 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 part VII of Chapter 112, Florida Statutes. Chapter 185,
Fla. Stat. ' .. ~ ~. ~'~*' ' '
By all gifts, bequests, and devises when donated to the fund.
Chapter 185, Fla. Stat.
By all accretions to the fund by way of interest or dividends on bank
deposits, or otherwise. Chapter 185, Fla. Stat.
4
By all other soumes or ~ncome now or hereafter authorized by law
for the augmentation of the Boynton Beach Police Officers' Pension
Fund. Chapter 185 Fla. Stat.
C. Under no circumstances may the City of Boynton Beach reduce the member
contribution to less than one-half of one percent of salary. Chapter 185,
Fla. Stat.
Section 18-165. Definitions.
A. The following words or phrases, as used in this ordinance, shall have the following
meaning:
"Average final compensation" shall mean the average total
remuneration received by a police officer during the best five (5)
years of service with the city within the last ten Chapter 185, Fla.
Stat., Boynton Beach Code of Ordinances Sec. 18-168, as
amended by Ordinance No. 0 00-18 and 000-
"Compensation" or "salary" shall mean the total cash remuneration
including "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
· The member's compensation or salary contributed as
employee-elective salary reduction s 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 corn pensation for retirement purposes under
this ordinance. 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 the
Internal Revenue Code s. 401 (a)(17) 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 shalJ be further adjusted for changes in the
4.
6
cost of living in the manner provided by Internal Revenue Code s.
401(a)(17)(B ). 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 Internal Revenue Code s. 401 (a)(17)(1991). Chapter
185, Fla. Stat.
"Creditable service" or "credited service" shall mean the aggregate
number of years of service and tractional 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:
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 ~
b. A police officer may voluntarily leave his or her contributions in the fund for a period
of 5 years after leaving the employ of the police department,
7
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 Js
not reemployed as a police officer with the same depar[ment
within 5 years, his or her contributions shall be returned to
him or her without interest.
c. Jn determining the creditable service of any police officer, credit for up to 5 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:
(1) 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.
(2) The police officer is entitled to reemployment under the provisions of the
Uniformed Services Employment and Reemployment
Rights Act.
(3) The police officer returns to his or her employment as a police officer of the
municipality within 1 year from the date of his or her
release from such active service.
d. Continuous service with the employer shall not be broken in the event of:
(1) Absence on an approved leave of absence;
(2) Absence from work because of occupational injury or disease incurred in
employment for which a police officer is entitled to
Workers' Compensation payments;
(3) Absence due to service in the armed forces of the United States provided the
officer shall re-enter employment with the City within
1 year of discharge.
Chapter 185, Fla. Stat.
"Beneficiary" shall mean any person,
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. Chapter 185, Fla. Stat.
"Fund" or "Police Officers' Pension Fund" shall mean the Boynton
Beach Police Officers' Pension Fund. Chapter 185, Fla. Stat.
"Plan year" shall mean the fiscal year commencing October 1st and
ending the following September 30% Boynton Beach Code o
Ordinances Sec. 18-171, Ord. No. 90-23, §1,8-7-90:
"Police officer" shall mean 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 §943.1395, Florida Statutes, who is vested with authority to
8
9
bear arms and make arrests, and whose primary responsibility is
the prevention and detection of cdme 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 §943.10(6)
and (8). Chapter 185, Fla. Stat.
10.
'!Retiree" or "retired police officer" shall mean 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:
Chapter 185, Fla. Stat.
"Retirement" shall mean 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. Chapter 185, Fla. Stat.
B. The masculine gender includes the feminine and words of the singular with respect
to persons include plural and vice versa.
Section 18-166. Board of Trustees Created.
10
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 ordinance. The
Board shall consist of five trustees as follows:
Two legal residents of the City, who shall be appointed by the City
Council. Each City Trustee shall serve at the pleasure of the City
Council. Each City Trustee may succeed himself or herself as a
trustee.
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. Each police officer trustee shall serve as a trustee for a
period of two 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
11
trustee.
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
Council, which shall, as a ministerial duty, appoint such person to
the Board as a fifth trustee. The fifth trustee shall serve as a
trustee for a period of two years, and may succeed himself or
herself as a trustee.
Chapter 185, Fla. Stat.
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 ~n the employ of the
City of Boynton Beach Police Department, he shall be considered to have
resigned from the Board of Trustees. In the event such a trustee shalJ
resign, be removed, or become ineligible to serve as trustee, the Board
shall, by resolution, declare that office of trustee vacated as of the date of
adoption of such resolution, if such a vacancy occurs in the office of
trustee within ninety 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
resolution, declare that office of Trustee vacated as of the date of
12
adoption of the resolution. The successor for the unexpired portion of the
term shall be chosen in the same manner as an original appointment.
C. Board Meetings: Quorum: Proce(Tures. The Board of Trustees shall hold meetings
regularly, at least once each quarter and sha~ 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 individ ual police officer
participating in the fund.
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.
13
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.
Section 18-167. Powers of the Board of Trustees.
A. The Board of Trustees may:
1.
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 municipal
police officers, retirement trust fund shall be entitled under [he
provisions of this ordinance 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
Chapter 185, additional State funds may be used to provide
benefits that exceed requirements of Chapter 185.
Invest and reinvest the assets of the retirement trust fund in:
a. Time or savings accounts of a national bank, a state bank insured bythe Bank
Insurance Fund, or a savings and loan association insured
by the Savings Association Insurance Fund which is
administered by the Federal Deposit Insurance Corporation
14
or a state or federal chartered credit un,on whose share
accounts are insured by the National Credit Union Share
Insurance Fund.
b. 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;
(2) Bonds issu 9d by the State of Israel;
(3) Bonds or other evidences 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. ~
(4) County bonds containing a pledge of the full faith and credit of the county involved,
bonds of the division of bond finances of the
department of general services, or of any other state
agency, which have been approved as to legal and
fiscal sufficiency by the state board of administration;
and
(5) Obligations of any municipal authority issued pursuant to the laws of this state;
provided, however, that for each of the five years next
preceding the date of investment the income of such
15
authority available for fixed-charges shall have been
not less than 1.5 times its average annual fixed-
oharges requirement over the life of its obligations;
shall not at cost exceed 65% of the fund's assets; nor shall more than 10% of the
fund's assets be invested in the bonds or other certificates of
indebtedness of any one issuing company; not shall the
aggregate of such investment in any one issuing company
exceed 3% of the outstanding bonds or other cer[ificates of
indebtedness of that company.
c. 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 the Distdct of Columbia shall not, at market,
exceed of the fund's assets; nor shall more than 5% 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 3% of
the outstanding common or capital stock of that company.
The Board of Trustees may invest up to 10% of plan assets
in foreign securities.
Issue drafts upon the Boynton Beach Police Officers Pension Fund
pursuant to this ordinance and rules and regulations prescribed by
16
the Board of Trustees. All such drafts shall be consecutively
numbered and shall be signed by the Chairman and Secretary of
the Board and shall state upon their faces the
purpose for which the drafts are drawn. The shall
retain such drafts when paid, as permanent vouchers for
disbursements made, and no money shall be otherwise drawn from
the fund.
Convert into cash any securities of the Fund as it may deem
advisable, having regard for the cash requirements of the fund.
Keep complete record of all receipts and disbursements and of the
Boards, acts and proceedings.
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 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 Florida Statutes §185.06(5)(b).
D. The Board of Trustees may employ such independen~ 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.
Chapter 185, Fla. Stat., Code 1958, §21-86; Ord. No. 83-11, 211,4-19-83; Ord. No. 83-
42. §1, 12-6-83; Ord. No. 90-28. §1 9-5-90; Ord. No. 099-20, §2.
Section 18-168. Membership
All police officers who are participants in the Fund as of the effective date of this
ordinance shall be members of this retirement system. Each police officer shall be
included in this plan on the date of hire.
Section 18-169. Requirements for Retirement-Benefit Amounts.
A. Normal Retirement
Normal Retirement Date. The normal retirement date of each
police officer shall be the first day of the month coinciding with, or
17
next follow~ng, the date an 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 he or she has
attained age 55 and completed 10 years of service
18
(Ord. No. 81-28, §1,9-15-81; Ord. No. 000-18, §4, 6-6-00)
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 eq ual to the number of years of his or her
credited service multiplied by 3% of his or her average final
compensation. (Code 1958, §21-85 Ord. No. 099-20, 7-20-99)
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. (Florida
Statutes Chapter 185, Ord. No. 000-18, §1, 6-6-00)
Eady Retirement.
19
Early Retirement Date An employee who has attained age 50 and
completed at least 10 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 10 years of service
and attainment of age 50.
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 Sec. 18-
169A based on credited service to the early retirement date subject
to an actuarial red uction of per year of service to take into
account the police officer's younger age and the earlier
commencement of retirement benefits. The eady retirement
benefit shall be paid in accordance with §18-169A.
Florida Statutes Chapter 185.
C. Disability Retirement.
Service Incurred. 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 %%
2O
of his basic rate of earnings in effect o~ the date of disability. 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 alisa bility has existed for 3 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 be~ ~flts available to service retirees in accordance with
section 18-170. 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 payment from the
fund shall 5e reduced by any amounts paid from worker's
compensation and the federal social security system. The
reduction for social secudty benefits shall be in the amount of the
primary ~nsurance amount (PLA) only, and future increases, if any,
in the disabled member's sociaJ security disability benefits shall not
serve to reduce any further the disability benefit from the fund. The
reduction for social security shall term ~nate 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 mere beys
21
basic rate of earnings on the date of disability. However, in all
cases the benefit will be at least 42% of average final
compensation.
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 lin ~
of e uty unless the contrary be shown by competent evidence. Any
conaition 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 §112.181, Florida
Statutes. 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.
22
Nonservice incurred, any member with
ten (10) years of continuous service who receives a nonservice
incu fred injury, illness, disease or disability, and which illness,
~njury, disease or disability totally and permanently disables him to
the extent that, in the opinion of the board of trustees, he is wholly
prevented from rendering usefu~ and efficient service as a police
officer, shall receive from the fund in equal monthly installments an
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 per cent
of his average final compensation during said period, but in all
cases [he benefit will be at least 25% of average final
compensation dudng said period. Such benefit shall ~)e 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.
Medical Board. Whenever it becomes necessary for the board to
23
avail itself of/he services of physicians in the case of an application
for disability retirement, the board shall designate a medical board
· 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.
Return to active duty from disability retiremenT. In the event a
member who has oeen retired on a pension on account of
permanent and total incapacity regains his 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 pension discontinued, and he shall 9e ordered to resume
active duty in the city at the same rate of compensation currently ~n
effect for his pay grade. The board shall review periodically, in its
discretion, the condition of any member receiving a pension for
disability and if there ~s substantiaJ evidence that the retired
24
member is capable of performing service acceptable to the city as
a police officer, he shall be ordered to resume active duty and his
pension shall be discontinued.
Disability Exclusions. No member shatl 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 ;
c. That the disability resulted from an injury or disease sustained by the police officer
while willfully and illegally participating in fights, riots, civil
~nsurrections or while committing a crime;
d. That the disability resulted from an injury or disease sustained by the police officer
while serving in any armed forces;
Further disability provisions. Each member applying for a service
D. Death benefit.
1.
25
incurred disability benefil from this fund shall be required to apply
for disability benefits under social security, and, if applicable,
workers' compensation. Fur/hermore, each person granted a
service incurred disability shall be required to submit to the board,
no later than March 1s, of each year, a statement showing the
monthly amount of social security (PlA 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 De grounds for the termination of or nonapproval of disability
benefits from this system. However, the board shall exercise its
discretion ~n each case.
26
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 m~mber's
spouse. The benefit shall equal 3% 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.
(Florida Statutes §185, Code 1958, §21-87; Ord. No. 78-6, §1, 3-7-78; Ord. No. 000-18,
§2, 6-6-2000; Ord. No. 000- )
3.
E. Separation from Service.
28
$.
29
Section 18~17'0. 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 for[h
in lieu of the amount and form of benefits provided above, and to revoke
an 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:
Life Annuity - The member may elect to receive a benefit payable
for the member's life only.
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.
3O
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 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 but only if the board of trustees
consents to such change and if the joint pensioner last previously
designated by the police officer is alive when he or she files with the board
of trustees a request for such change. The consent of a member's joint
pensioner or beneficiary to any such change shall not be required. The
board of trustees may request such evidence of the good health of the
joint pensioner that is being removed as it may require and the amount of
31
the retirement income payable to the police officer upon the designation of
a new joint pensioner shall be actuadally redetermined taking into account
the ages and sex of the former join! pensioner, the new joint pensioner,
and the member. Each such designation will be made in writing on a form
prepared by the board of trustees, and on completion will be flied with the
board of trustees. 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
s. 18-171.
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:
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 s. ~
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
32
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
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 pedod certain and life
thereafter, made pursuant to the provisions of subparagraph
(1)(a)3., the board of trustees may, in its discretion, direct that the
commuted value of the remaining payments be paid in a lump sum.
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.
A member may not make any change in retirement option after the
date of cashing or depositing the first retirement check.
33
Sec. 18-171. Beneficiaries.
A. Each member may, on a form provided for that purpose which was signed and filed
with [he Board of Trustees, designate a beneficiary (or beneficiaries) to
receive the ben ~fit. if any, which may be payable in the event of death;
and each designation may be revoked by such mere her by signing and
filing with the Boa rd 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 1, 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.
Section 18-172. Buy Back of Service
A. Re-employment. When any former police officer of the city is re-employed, he 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 may reinstate his previous service upon satisfaction of each of the
following conditions:
34
The break in city employment is not more than 60 months; and
The plan is paid the total amount previously withdrawn (consisting
of accumulated member contributions plus any
). histotal 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 Florida Statutes chapter 112, part VII.
96-05, {}1,3-6-96).
36
Section 18-173.
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.
Definitions
a. Eligible rollover distribution: An eligible rollover distribution is any distributiOn of all or
any portion of the balance to the credit of the distributee,
37
except that an eligible roilover 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
distdbutee's designated beneficiary, or for a specified pedod
of ten years or more; any distribution to the extent such
distribution ~s required under section 401 (a)(9) of the Code;
and the portion of any distribution that is not includable in
gross income.
b. Eligible retirement plan: An 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, an annuity plan described in section 403(a) of the
Code, or a qualified trust described in section 401(a) of the
Code, that accepts the distdbutee'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. Distributee: A 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 distdbuteeS with
regard to the interest of the spouse or former spouse.
d. Direct rollove~. A direct rollover is a payment by the plan to the eligible retirement
plan specified by the distr butee.
38
39
(Ord. No. 90-47, §2, 10-3-90; 93-71, §2, 12-7-93; Ord
Section 18-174. Miscellaneous.
A.
No. 9-58, §1, 1-3-95)
40
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 0e 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 §§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 dght to receive any or all benefits to
which the person would 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.
41
D. Rights and Benefits Not Sub./ect to Legal Process. The rights and benefits provided
for herein are vested rights of participants Jn the Fund and shall not be
subject to attachment, garnishment, execution or any other legal process.
This section does not apply in the event of an ~ncome deduction order for
alimony or child support.
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 $30.00 or if the single
sum value of the accrued retirement income is less than $5,000.00 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.
42
43
44
Section 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
[he Board of Trustees on a form provided for that purpose.
C. Participation in the DROP must be exercised within the first twenty-two (22) years of
combined credited service. However, participation in calendar year 2000,
the first year, will be extended to all members.
D. Except for the extension of participation at inception as provided for in (c) above, a
member shall not participate in the DROP beyond the time of attaining
twenty-five (25) years of service and the total years of participation in the
DROP shall not exceed five (5) years. For exam Die:
Members with twenty (20) years of credited service at time of entry
shall only participate for five (5) years.
Members with twenty-one (21) years of credited service at time of
entry shall only participate for four (4) years.
Members with twenty-two (22) years of credited service at time of
entry shall only participate for three (3) years.
45
E. Upon a member's 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. Accurnulated, unused sick and vacation
leave shall be included in the compensation calculation; provided
however, that a m nimum 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 sixty (60)
months.
G. An employee's account in the DROP program shall earn interest in one of two 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:
Gains or losses at the same interest rate earned by the Pension
Plan; or
46
A guaranteed rate of 7.0%.
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.
H. An employee's participation in the DROP shall terminate at the end of five years or
25 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.
I. All interest shall be credited to the employee's DROP account on a quarterly basis
with quarterly statements 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:
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 c.
Payments shall be made in either:
a. Lump sum - the entire account balance will be paid to the retirant upon approval of
the Board of Trustees.
47
b. Installments - the account balance will be paid out to the retirant in five (5) equal
annual payments paid over five (5) years, the first payment
to be made upon approval of the Board of Trustees.
c. Any form of payment selected by a police officer mu st comply with the minimum
distribution requirements of the IRC 401 (A)(9), and is subject
to the requirements of subsection 18-174F e.g., payments
must commence by age 70~.
d. Th e 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 du ring 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.
Section 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
48
provided in chapter 121, 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 to
be distributed, after taking into account the expenses of such distribution.
B. The board of trustees shall determine the method of distribution of the asset value,
that is, whether distribution shall be Dy 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 ptan, as specified in subsection (C).
C. The board of trustees shall apportion 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 shall mean 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 shall mean the single premium payable for such
annuity.
ApportiOnment shall first be made in respect of each retired
49
member receiving a retiremen~ income hereunder on such date,
each person receiving a retirement income on such date on
account of a retired (but since deceased) member, and each police
officer who has, by such date, become eligible for normal
retirement but has not yet retired, in the amount required to provide
such retirement income, provided that, if such asset value is less
than the aggregate of such amounts, such amounts shall be
proportionately reduced so that the aggregate of such reducee
amounts will be equal to such asset value.
If there is any asset value remaining after the apportionment under
paragraph (1), apportionment shall next De made in respect of each
member in the service of the municipality on such date who has
completed at least 10 years of credited service, ~n the Fund for at
least 10 years, and who is not entitled to an apportionment under
paragraph (a), in the amount required to provide the actuarial
equivalent of the accrued normal retirement income, based on the
police officer's credited service and earnings to such date, and
each former participant then entitled to a benefit who has not by
such date reached his or her normal retirement date, in the amount
required to provide the actuarial equivalent of the accrued normal
retirement income to which he or she is entitled, provided that, if
such remaining asset value is less than the aggregate of the
.,
amounts apportioned hereunder, such latter amounts shall be
proportionately reduced so [hat the aggregate of such reduced
amounts will be equal to such remaining asset value.
5O
If there is an asset value after the ap portionments under
paragraphs (a) and (b), apportionment shall lastly be made in
respect of each member in the service of the municipality on such
date who ~s not entitled to an apportionment under paragraphs (a)
and (b) in the amount equal to the member's total contributions to
the plan to date of termination, provided that, if such remaining
asset value is less than the aggregate of the amounts apportioned
hereunder, such latter amounts shall be proportionately reduced so
that the aggregate of such reduced amounts will be equal to such
remaining asset value.
In the event that there is asset value remaining after the full
apportionment specified in paragraphs (a), (b), and (c), 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.
51
D. The board of trustees shall distribute, in accordance with the manner of distribution
determined under subsection (B), the amounts apportioned under
subsection (C). If, after a period of 24 months after the date on which the
plan term ~nated or the date on which the board received wdften 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 division shall effect the termination of the fund in
accordance with this section.
53
Section 2. Any part of the Boynton Beach Code ~n conflict herewith shall be repealed.
Section 3. This Ordinance shall be effective upon date of passage.
PLACED ON FIRST READING THIS 15" DAY OF J~A~,u~,,¢,¢, 2001.
PLACED ON SECOND READING THIS ,~ DAY OF ~__ 2002.
PASSED AND ADOPTED THIS S DAY OF ~"~-~r'~Lr-,,~ 2002.
CITY OF BOYNTON BEACH, FLORIDA
Ma~'or
Vice j~___.. ~_,~.........~_~
c, om n~ssionb,c_.~'" ,~
Commissioner
Commissioner
54
H:\BB 188\Plan Doc\Restate\plan 1219.rtf
mjhan~on @ hpjlaw, com
ANN H. P[~RRY
aperry@hpilaw, com
bsjensen@hpj~aw, com
_ ~AGE 02
H. NSON, PERRy & JENSEN, P.A.
105 S~m N~c~ssus Av.~ ~. S~ ~"i O - ~ p~,,. B~m~. R.OR~,, 33401
January24,2002
VIA FACSIMILE AND FIRST CLASS MAll
James Cherof, Esquire
City Attorney
City of Boynton Beact~
100 East Boynton Beach Boulevam
Boynton Beach, Florida 33435
Re:
City of Boynton Beach Police Officers' Pension
Fund - Proposed Amendment
_Our File Number: 188.49
Dear Jim:
I provided the restated and amended pension plan document forthe Boynton Beach
Police Pension Fund to Steve Palmquist, He has reviewedthe document and commented
that the Separation from Service benefi on Section 18-169 E, page 25 - 26 was not
accurately described as it is currently valued. Enclosed please find revised pages 25 and
26, which I will also provide to you ~;ia e-malt.
Currently the vested deferred benefit (benefits payable to vested individuals who
terminateretirement.Service before normal retirement) is paid beginmng at either early or normal
Thank you for your assistance. If you have any questions, please do not hesitate
to contact me.
Copy to: Chairman ar~ Secretary
Barbara LaOue
H~.~BB 188~Ay~Chemf2_wp(f
Sincerely yours,
Bonni S. Jensen
- .~:~ oi/24/2oo2 i3:57 §8i655592~ - ~6ERRy'&,~:i~ PAC~
2. 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 members
spouse. The benefit shall equaJ 3% average f~nei 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, tfthere is no spouse, the benefit, if any,
wifl be paid to the deceased perticipanfs estate.
(Ftodda Statutes §185, Code 1958, §21-87; Ord. No. 78-6, §1, 3-7-
78; Ord. No. 000-18, §2, 6-6-2000; Ord. No. 000-
3. If a member dies before being eligible to retire, the heirs, legatees,
beneficiaries or personal representatives of such deceased
member shaJl be entitled to a refund of 100% of the contributions
made by the memberto the Fund, without interest.
Separation from Service.
If a member leaves.the service of the City before accumulating
aggregate time of 10 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.
If any member who had been in the service of the City for at least
10 years elects to ieave his or her accrued contributions in the
Fund, such police officer upon attaining age 50 years or more
25
(without reac~ing. ~,~i~mVe beeh ~/enty.years.of service
had he notterminated his employment)may receive an early
re~rement-benefitat the actuarial equivalent of the amount of such
retirementincome othen~se payableto, h~m er her at eady
re_firement0r upon attaining, what would,have been normal
retirement'had he not terminalad his employmen~ such police
officer may'receive a his accrued normal retirement benefit.
F. MOnthN SUpplemental Ben~i;k~_
t Effective October 1." 2006 an ~ beneficia, _:receivin
~ension benefr/s is entitled to.a ~on[hjr¥-supplemental pensio.
benefit. 'Fhe benef~ pool. will be funded by' 100% of the eaminu.
~and 10% Of the pdncipa! created by the coutrlbutJun$ set forth in
2. T.h'e --_nefit ~hal~ be ivy_., tothe_t, tal number of_
Yearn of service rendered, by a(l retirees, witi~ a cad of 20' years.
The sha~es will be divided on e pro-rata basis on.the followinu
schedule:
20or mom. _ars of service ~00%_
19..-ears of -ervice_
__~ears of service
90%
17 Years of service 65%
----_.___I ars of service 80%
'15. e 'of ervice
~4~ :eat i of :eccice
13 ~-ears of service 65"-
.-___~2'- -ea- 'of service _ 6(7%
11 :earsof trice 55%_
10 -ears of service 50o/0_
26