VII. A1.2021 SPD (00186272xBC171)
EMPLOYEES’ PENSION PLAN
OF THE CITY OF BOYNTON BEACH, FLORIDA
SUMMARY PLAN DESCRIPTION
May 2017
August, 2021
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TABLE OF CONTENTS
INTRODUCTION TO YOUR PLAN........................................1
GENERAL INFORMATION ABOUT YOUR PLAN ............................1
Name of Plan....................................................1
Employer.......................................................1
Plan Administrator................................................1
Trustee.........................................................1
Designated Agent for Service of Legal Process..........................1
Board of Trustees................................................2
Plan Year.......................................................2
Relevant Provisions of Local and State Law s...........................2
Relevant Provisions of Collective Bargaining Agreements.................2
Custodian.......................................................2
Investment Manager(s)............................................2
Member........................................................3
Beneficiary......................................................3
CONTRIBUTIONS TO THE PLAN.........................................3
You...........................................................3
Your Employer...................................................4
Additional Voluntary Contributions....................................4
ELIGIBILITY AND CREDITED SERVICE....................................4
Eligibility........................................................4
Credited Service.................................................4
Break in Service..................................................4
Military Service...................................................5
RETIREMENT DATES..................................................5
Normal Retirement Date...........................................5
Early Retirement Date.............................................5
RETIREMENT BENEFITS...............................................5
Normal Retirement Benefit..........................................5
Supplemental Benef it..............................................6
Accrued Benef it..................................................6
Early Retirement Benefit...........................................6
Deferred Retirement Option Plan (DROP)..............................7
DISABILITY RETIREMENT ..............................................8
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SURVIVOR BENEFITS.................................................8
Before Retirement................................................8
After Retirement..................................................9
VESTED RETIREMENT BENEFIT.........................................9
FORMS OF BENEFIT PAYMENTS.......................................10
Normal Form of Benefit Payment....................................10
Election of Optional Forms of Benefit Payments........................10
AMENDMENT OR TERMINATION OF THE PLAN ...........................10
IMPORTANT NOTICE.................................................11
YOUR RESPONSIBILIT IES.............................................11
CLAIMS AND PROCEDURES...........................................12
FEDERAL INCOME TAX CONSEQUENCES...............................12
DOMESTIC RELATIONS ORDERS IN DIVORCE............................12
EX-SPOUSE AS BENEFICIARY OR JOINT PENSIONER.....................12
ACTUARIAL DATA....................................................13
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INTRODUCTION TO YOUR PLAN
The City of Boynton Beach has established a defined benefit pension plan known as the
Employees’ Pension Plan of the City of Boynton Beach, Florida (the “Plan”). T he Plan to
provides eligible employees with retirement and related benef its.
This Summary Plan Description is a brief description of that Plan and your rights,
obligations and benefits under it. This Summary Plan Description is not meant to interpret,
extend or change the provisions of the Plan in any way. The provisions of the Plan m ay
only be determined accurately by reading the actual Plan docum ents. These documents
include appropriate City ordinances, Chapter 112, Florida Statutes, and the rules and
regulations adopted by the Board of Trustees (the “Board”).
A copy of the Plan is on file at the Office of the Pension Plan Administrator; it may also be
read online at www.amlegal.com. This Summary Plan Description has been updated
through Ordinance 15-008. The Plan may be read by you, your beneficiaries, or your legal
representatives at any reasonable time. If you have any questions regarding either the
Plan or this Summary Plan Description, you should direct them, in writing, to the Plan's
Administrator. In the event of any conflict between this Summary Plan Description and the
Plan documents, the Plan documents control. This Summary Plan Description is solely
intended as a guide to your benefits and is not intended to create a contract or promise of
any specific benefit. Any examples used in this Summary Plan Description are for
illustration purposes only and do not represent the actual benefit to be received by any
specific person.
________________________________
Chairman of the Board of Trustees,
Employees’ Pension Plan of the City of
Boynton Beach, Florida
_____________________
Date
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GENERAL INFORMATION ABOUT YOUR PLAN
There is certain general information you may need to know about the Plan. This general
information is summarized below.
Name of Plan
Employees’ Pension Plan of the City of
Boynton Beach, Florida
Employer
City of Boynton Beach (“City”)
Plan Administrator
Resource Centers, LLC.
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33 410
(561) 624-3277 or
(800) 206-0116 (T oll Free)
Trustee
Board of Trustees of the Employees’
Pension Plan of the City of Boynton
Beach, Florida
Designated Agent for Service of Legal
Process
Chairman of the Board of Trustees
Board of Trustees
The Board of Trustees is responsible for the overall administration of the Plan. The Board
has discretionary authority to construe the terms of the Plan and make determinations on
questions which may affect your eligibility for benefits. The Board may also retain the
services of attorneys, accountants, actuaries, investment advisors and other professionals.
The names of the current Trustees are attached to this Summary Plan Description as
Exhibit “A.” All Trustees can be reached throug h the Plan Adm inistrator.
Plan Year
A 12 month period beginning on October 1 and ending on September 30. Plan fiscal
records are maintained on this basis.
Relevant Provisions of Local and State Law s
The Plan is set forth in Chapter 18, Article II of the Code of Ordinances of the City of
Boynton Beach. The most recent amendment to the Plan which is reflected in this
Summary Plan Description is Ordinance No. 15-008.
Your Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes
(F.S.), and various federal laws.
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Relevant Provisions of Collective Bargaining Agreements
Certain employees covered by the Plan are members of the National Conference of
Firemen and Oilers, SEIU, AFLCIO, CLC, Local 1227.
The current collective bargaining agreements between the units unions and the Employer
covers the period from October 1, 2014 through September 30, 2017. Article 42 of the
W hite Collar Bargaining Unit and Article 46 of the Blue Collar Bargaining Unit agreements
refer to pension m atters.
Custodian
The custodian of the Plan is responsible for the safe-keeping of securities owned by the
Plan Pension Fund. At the direction of the Plan Administrator, the custodian also pays
benefits to eligible persons and pays expenses incurred by the Plan. The custodian is
W ells Fargo Bank, N.A.
Investment Manager(s)
The investment manager is responsible for selecting the securities to be bought and sold
by the Plan Pension Fund, in accordance with guidelines established by the Board. The
Board employs an Investment Consultant to help withthe selection of the investment
managers who invest the Plan’s assets,
The investment managers are:
Alliance Bernstein - Fixed
Atlanta Capital
Baron Real Estate Fund
Clearbridge
DePrince Race Zollo
Garcia, Hamilton & Associates, LP - Fixed
Europacific Growth
Harding Loevner Intl Equity
Oppenheimer Intl Growth
JP Morgan Real Estate Strategic Property
JP Morgan RE Special Situation
Mutual of America S&P 400
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Member
You are a Mmember of the Plan if you fulfill the prescribed eligibility requirements (see
“Eligibility” and “Credited Service” sections below).
Beneficiary
Your Bbenef iciary is each person designated by you to the Plan Adm inistrator to receive
any payments that may become payable by the Plan upon your death. You should
designate a Bbenef iciary when you become a Mmember of the Plan. Prior to retirement,
you may change your designation at any time upon written notification to the Plan
Administrator.
CONTRIBUTIONS TO THE PLAN
Benefits of the Plan are financed by contributions that are paid into the Plan pension fund
and by investment earnings generated by investments of the Plan pension fund.
Contributions to the Plan f und are made by:
You
Your contribution rate is 7% of your Ccovered Ssalary (see later page for definition of
Ccovered Ssalary). Your contribution will cease upon your retirement, death or employment
termination. Interest at the annual rate of 5% is credited to your contributions.
Your Employer
The City of Boynton Beach m ust contribute an am ount determined by the Plan's actuary
to be sufficient, along with your contribution, to fund systematically the benef its under the
Plan. The Employer's contribution will vary depending on the experience of the Plan.
Additional Voluntary Contributions
The Plan allows members who were enrolled in Eelectiv e Bbenefits prior to the passag e
of Ordinance 10–006 (February 16, 2010) to continue to participate in additional voluntary
contributions in order to pay for certain elective benefits; however, members who enrolled
in the Plan after the passage of Ordinance 10-006 may not elect the voluntary benefits.
There are f our Eelective Bbenefits:
•Health insurance subsidy
•Health insurance subsidy with 2% per year COLA
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•Cost of living adjustment
•Retirement after 25 years of service, regardless of age.
Please see the Pension Plan Adm inistrator for further details.
ELIGIBILITY AND CREDITED SERVICE
Eligibility
You are eligible to be a Mmember of the Plan if you are a general employee of the
Employer full time. Police Oofficers and Ffirefighters employees of the City may not join
this Plan.
Credited Service
Credited Sservice is used to compute the amount of your pension benef it when you retire,
to determine whether you are eligible for certain benefits, and to determine whether you
are vested. Your Ccredited Sservice is equal to your length of continuous uninterrupted
employment with the City from your last date of hire until your date of termination of
employment, rounded to the nearest whole month of completed service. At least 20 days
of service counts as a completed month. Vacations and other paid leaves of absence are
included. Unpaid leav es of absence are not included.
Break in Service
If you terminate employment and return to work for the Employer within 60 months of
termination of employment, then you will be considered a new employee with no Ccredited
Sservice, unless you elect to pay back to the Plan in a lump sum any previous distributions
received from the Plan, plus interest within one year of your re-employment. The amount
of interest required will be calculated based upon the actuarially assumed rate of
investment return, applied to the period from the date of original distribution to the date of
repayment. If you repay this amount, you will be granted the Ccredited Sservice earned
prior to your previous termination of service. If you fail to make application within one year
of re-employment, you may, within 5 years of re-employment, request to purchase the time
at the f ull actuarial cost.
Military Service
Should you terminate employment or take a leave of absence from the Employer in order
to enter the military, your period of military service may be included in your Ccredited
Sservice if you return to work for the Employer within the time limits set by federal law.
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Your active duty in the military prior to your date of hire by the Employer is not included in
Ccredited Sservice.
RETIREMENT DATES
Normal Retirement Date
The Nnormal Rretirement Ddate is the earliest date w hen unreduced retirem ent benef its
may be paid to you. Your Nnormal Rretirement Ddate is the first day of the month
coincident with or next following the earliest of:
• Age 62 with 5 years of Ccredited Sservice,
• Age 55 with 25 years of Ccredited Sservice, or
• 30 years of Ccredited Sservice regardless of age.
Early Retirement Date
Your Eearly Rretirement Ddate is the first day of the month following the earlier of age 55
with ten 10 years of Ccredited Sservice or age 52 with 25 years of Ccredited Sservice. You
may retire at any time following this date with reduced benef its as described later.
RETIREMENT BENEFITS
Normal Retirement Benefit
The amount of your Nnormal Rretirement Bbenef it is based on the f ollowing factors:
1.Your Ccovered Ssalary - This is the amount of your gross earnings including
overtime pay up to 300 hours per year but excluding unused accrued
vacation pay and unused accrued sick pay earned after June 18, 2013.
Mmembers may include all unused hours earned prior to June 18, 2013
provided that amount of hours is cashed in at retirem ent.
2.Your Aaverage Mmonthly Ssalary - This is the average of your Ccredited
Sservice during the highest 60 consecutive months within the last 120
months of service, including lump sum payments of unused accrued vacation
pay, overtime pay, and sick pay.
3.Your years of Ccredited Sservice at your Nnormal Rretirement Ddate, up to
a maximum of 25 years.
The calculation of your Nnormal Rretirement Bbenef it is as follows:
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3% of your Aaverage Mmonthly Ssalary multiplied by your years of Ccredited
Sservice, with a maximum of 75% of Aaverage Mmonthly Ssalary. As an
example, if your Aaverage Mmonthly Ssalary at your Nnormal Rretirement
Ddate is $2,500 and your Ccredited Sservice is 25 years, then the calculation
is as follows: 3% x $2,500 x 25 years = $1,875 which would be your Nnormal
Rretirement Bbenef it payable each m onth.
The retirement benef it is paid to you for the rest of your life in accordance with the Normal
Form of Benef it Payment as described later (however, see the sections on “Death Benefits
After Retirement” and “Election of Optional Forms of Benefit Payments”).
Supplemental Benefit
In addition, a supplemental benefit will be paid every year that investment return exceeds
the assumed rate of return. The amount that investment return exceeds the assumed
return will be divided equally among all participants. The supplemental benef it will not be
paid if the Plan has experienced cumulative losses from all sources after October 1, 2001.
Accrued Benefit
The portion of your Nnormal Rretirement Bbenef it that you have earned at any point in time
is your Aaccrued Bbene fit. Your Aaccrued Bbenef it is computed in the same way as the
Nnormal Rretirement Bbenef it, except you use your current Aaverage Mmonthly Ssalary
and Ccredited Sservice in the calculation. The Aaccrued Bbenef it is a monthly amount
which starts on your Nnormal Rretirement Ddate.
Early Retirement Benefit
If you decide to retire early, you may receive an immediate Eearly Rretirement Bbenefit
payable for the rest of your life. The benefit is equal to your Aaccrued Bbenefit but reduced
for the number of months by which the starting date of the benefit precedes the date when
you would have reached normal retirement had you continued in full-time employment.
The benef it is reduced to take into account the younger age and earlier commencement
of benefit payments. The following table shows how much your benefit will be reduced if
payments begin before your Nnormal Rretirement Ddate:
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Number of
Years Early
Percentage
Reduction
1 3%
2 6%
3 9%
4 12%
5 15%
6 18%
7 21%
Alternatively you may wait to begin to receive your early benefit at your normal retirement
age. This deferred payout is not subject to the penalty .
Deferred Retirement Option Plan (DROP)
If you have reached your Nnormal Rretirement Ddate, you are eligible to enter the DROP
Plan. Election into the DROP Plan is voluntary, but it is irrevocable once DROP payments
begin.
The maximum period of participation is five 5 years. If you enter the DROP Plan, your
contributions will stop, you will cease to accrue a benefit in the Plan, you will no longer be
eligible for disability or pre-retirement death benef its, and you will never have the right to
be a contributing member of the Plan again. Your Ccredited Sservice and Aaverage
Mmonthly Ssalary as of the first date of participation in the DROP Plan will be used to
calculate your retirement benefit. Provided however, that 120 hours of your unused sick
time and 120 hours of your unused vacation time will be excluded from this calculation and
paid at the conclusion of your DROP participation and actual separation f rom service.
If you enter the DROP Plan, the monthly benefit that you would have received if you had
retired on your election date will be paid into a DROP account. This account will earn
interest in one of the following ways:
1.Net Ggain or loss at the sam e rate earned by the Plan, or
2.Guaranteed rate of 7% less a pro-rata share of Plan expenses,.
3.A combination of the investment return earned by the Plan and a guaranteed
rate of 7%.
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Members You can change the method used to credit earnings to the DROP Aaccount prior
to January 1 each year.
You may participate in the DROP Plan f or 5 five years or, if earlier, until you have a total
of 35 years of service. Upon retirement, the balance in your DROP account will become
payable. In order to be paid you must terminate employment. You will have the following
options of payment:
1.A single lump sum payment.
2.Equal periodic payments.
Should you pass away during your participation in the DROP Plan, your Bbenef iciary will
receive a single lump sum payment of the balance in the DROP account. DROP payments
to your Bbeneficiary will be in addition to any survivor benef its payable by the Plan.
DISABILITY RETIREMENT
If you become totally and permanently disabled as provided by the Plan (you are disabled
according to the City’s Long Term Disability Company), you are eligible for a disability
benefit if you have more than 10 years of service. You will receive your Aaccrued Bbenefit
payable at Nnormal Rretirement Ddate. If you have less than 10 years of service benefits
may be provided under the City ’s long term disability policy.
SURVIVOR BENEFITS
Before Retirement
If you die before you are vested, your Bbeneficiary will receive a refund of your
contributions, including interest at an annual rate of 5%. If you die after you are vested,
your Bbenef iciary will have the choice of receiving either an immediate lump sum payment
or a monthly survivor benefit. The immediate lump sum payment will be the greater of a
refund of your contributions with interest at the annual rate of 5%, or the lump sum value
of your Aaccrued Bbenef it payable at the earliest date you could have retired. The monthly
survivor benef it will be equal to your Aaccrued Bbenefit with such payments starting at the
earliest date you could have retired. In either case, if the “earliest date” precedes your
Nnormal Rretirement Ddate, then the Aaccrued Bbenef it will be subject to the early
retirement reduction described prev iously.
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After Retirement
If you were receiving a form of retirement payment which provided for a survivor's benef it
to be paid after your death, your Bbeneficiary will receive payments following your death.
A later page describes the various forms of retirement payments.
VESTED RETIREMENT BENEFIT
If you terminate employment, other than by reason of retirement, disability or death, you
may be entitled to a deferred Vvested Rretirement Bbenef it. This benef it is equal to your
Aaccrued Bbenefit on your termination date multiplied by your vested interest. The
following chart shows your vested interest in your Aaccrued Bbenef it.
Vesting
Schedule
Completed Years of 3
Credited Service
Vested
Interest
Less than 5 0%
5 or more 100%
The full vested benefit is payable when you reach age 62, or age 55 if you have at least
25 years of Ccredited Sservice, or you may begin a reduced benef it at your early
retirement age. See page 5 and 6 of this summary for a full description of the early
retirement benefit. You may give up your right to receive your vested benefit and instead
receive a refund of your contributions with interest.
If you terminate employment before you have earned a vested interest in your benefit, you
will receive a refund of your contributions with interest.
The taxable portion of any refund you receive is subject to an automatic 20% withholding
for federal income tax purposes. This tax can be avoided, however, if you roll the taxable
portion over to an Individual Retirement Account (IRA) or another qualified employer plan.
This rollover will result in no tax being due until you begin withdrawing funds from the IRA
or other qualified employer plan. The rollover of the distribution, however, must be made
directly by the Plan to your chosen IRA or other q ualified employer plan.
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FORMS OF BENEFIT PAYMENTS
Normal Form of Benefit Payment
Unless you elect otherwise before retirement, your pension is payable as a Ssingle Llife
Aannuity. This is a series of monthly payments for your life ceasing upon your death.
Election of Optional Forms of Benefit Payments
You have the right at any time on or before your actual retirement date to elect not to have
your retirement benefit paid in the Nnormal Fform. Your benefit would then be paid in the
form which you choose.
You may choose among the options described below and revoke any such elections and
make a new election at any time before your actual retirement. You must make such an
election by written request to the Plan Administrator. Such an election shall be subject to
the approval of the Plan Administrator. This election also applies to terminated members
who are eligible for payment of deferred Vvested Rretirement Bbenef its. The options
available are as f ollows:
1.Option 1 – Joint & Survivor Annuity
You may elect to receive a modified retirement benefit of such that following
your death two-thirds of the monthly benefit would be paid for the remaining
life of your beneficiary. You may change your designated benef iciary after
benefit payments begin provided the current joint annuitant is alive and
consents to such chang e.
2.Option 2 – Social Security Option
You may elect to receive a modified monthly retirement benefit that provides
an increased monthly benef it before your Social Security benef its begin, but
a decreased benef it thereafter.
In no event may the total of benefit payments to you and your Bbeneficiary be less than
your own accumulated contributions with interest.
AMENDMENT OR TERMINATION OF THE PLAN
The Plan may be amended or terminated at any time by the Employer. If the Plan were
terminated, you would immediately become fully vested in the benefit you had earned so
far. All of the assets of the Plan would be allocated to the Mmembers according to certain
classes of priority. Only after all accrued benef its have been paid and any other liabilities
have been satisf ied could any remaining money be returned to the Em ployer.
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IMPORTANT NOTICE
There are certain circumstances which may result in the disqualification, ineligibility, denial,
loss, forfeiture, suspension or deferral of your benef its in this Plan. The following is a list
of these circumstances:
1.If you terminate employment before reaching the Nnormal or Eearly
Rretirement Ddate and you do not have enough Ccredited Sservice to have
earned a vested interest, no benefits will be payable except for a return of
your own contributions with interest.
2.No credit is allowed either for benefit accrual or vesting purposes for any
period during which you are not a f ull time employee.
3.Your retirement benefit will not be payable until actual retirement date, even
if you continue to work beyond the Nnormal Rretirement Ddate.
4.In the event that this Plan terminates and the available Plan assets are less
than the value of all Aaccrued Bbenef its, then your Aaccrued Bbenef it may
be reduced.
5.Your Aaccrued Bbenef it may be forfeited if you are convicted of certain
felonies as provided by State law (Chapter 112.3173 F.S.).
6.Payment of your benefits may be subject to an income deduction order made
pursuant to a state dom estic relations law.
YOUR RESPONSIBILITIES
1. Retain this Sum mary Plan Description with your other important papers f or
later reference or for replacement by updated versions and supplemental
notices, if any.
2. Upon completing eligibility requirements, sign a Mmembership Fform,
including a Bbenef iciary designation.
3. Keep your Bbenef iciary designation form updated to express your wishes.
4. If you terminate employment, check to see if you are entitled to a Vvested
Rretirement Bbenef it and the date pay able.
5. If you should terminate employment with rights to a deferred Vvested
Rretirement Bbenefit, then, shortly before the date on which it is to begin,
you should contact and notif y the Employer to begin such payments.
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6. Upon your retirement under Eearly or Nnormal Rretirement, complete the
form necessary to indicate which Optional Form of Benefit you desire.
CLAIMS AND PROCEDURES
The Pension Plan Ddocument contains rules to follow when a member applies for a benefit
at §18-143.1. A copy of this section of the Plan may be obtained from the Office of the
Pension Plan Adm inistrator or may be read online at w ww.amlegal.com.
FEDERAL INCOME TAX CONSEQUENCES
The Plan is intended to qualify under Section 401 of the Internal Revenue Code as a
qualified pension Plan. It is important that you consult qualified experts to determine
whether or not you must pay taxes on the pension benef its you receive.
DOMESTIC RELATIONS ORDERS IN DIVORCE
The Plan is a governmental plan, and therefore, is not subject to Qualified Domestic
Relations Orders (“QDROs”) under federal law, or court orders to effectuate an equitable
distribution of marital assets.
The Plan is subject to 61.1301, Florida Statutes, entitled Income Deduction Orders
(“IDOs”). Section 61.1301 is limited to the collection of alimony and child support.
Therefore, if the Plan receives an IDO for alimony or child support, the Plan will comply
with the Order. Additionally, pension benefits may be distributed by using an “Order
Distributing Marital Interest in a Public Retirement Plan.” A copy of this order may be
obtained f rom the Office of the Plan Adm inistrator.
Effective January 1, 2019, changes in the federal tax laws have eliminated tax deductions
for alimony if a marriage was dissolved or a property settlement agreement was made on
or after January 1, 2019. Modifications to existing orders or agreements on or after January
1, 2019, may be tax deductible if both parties ag ree.
EX- SPOUSE AS BENEFICIARY OR JOINT PENSIONER
Effective July 1, 2012, Section 732.703, Florida Statutes, nullifies the designation of your
ex-spouse as a benef iciary or joint pensioner on your Plan retirement benef its.
After July 1, 2012, if you want your ex-spouse to be a beneficiary or joint pensioner for your
Plan benefit, you will have to make that designation AFTER the dissolution of marriage.
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If you currently have your ex-spouse as a beneficiary or joint pensioner and want to keep
this designation, you must redesignate the ex-spouse again after July 1, 2012. There are
certain other exceptions based on the terms of the divorce judgments or agreements which
may require that your former spouse remain the joint pensioner or benef iciary. You are
encouraged to review your divorce documents to determine if this applies to your situation.
If you want to reconfirm your current beneficiary or if you want to designate a new
beneficiary, you must complete and submit a Designation of Beneficiary form to the Plan
Administator. If necessary, the Plan Administrator will submit the new form to the actuary
of the Plan for recalculation of your benefit. You may be assessed a fee to make this
change. Please be aware that after retirement a joint pensioner designation may only be
changed twice.
To obtain either of the above forms, or if you have any questions, please contact your Plan
Administrator.
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EXHIBIT “A”
BOARD OF TRUSTEES
Chairman:Steven Grant
Trustee:Cathy McDeavitt
Trustee:Sheryl Claude
Trustee:Vacant
Trustee:Laurie Fasolo
Trustee:Lori LaVerriere
Trustee:Darrell Sanders
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EXHIBIT “B”
ACTUARIAL DATA
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