22-016 1 ORDINANCE NO. 22-016
2 AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA;
3 AMENDING CHAPTER 18, ARTICLE IV, PENSIONS FOR
4 FIREFIGHTERS; AMENDING SECTION 18-180.2 OF THE CITY CODE
5 GOVERNING FIREFIGHTER PENSION COLA; AMENDING SECTION
6 18-194 REGARDING THE FIREFIGHTER DROP PROGRAM;
7 PROVIDING FOR INCLUSION IN THE CODE; PROVIDING FOR
8 SEVERABILITY; PROVIDING FOR A REPEALER; AND PROVIDING
9 FOR AN EFFECTIVE DATE.
10 WHEREAS, the City of Boynton Beach and the Boynton Beach Association of Fire
11 Fighters, Florida Local 1891, of the International Association of Fire Fighters negotiated a new
12 collective bargaining agreement.
13 WHEREAS, an ordinance amending City of Boynton Beach Municipal Firefighters
14 Pension Trust Fund is required.
15 NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
16 OF BOYNTON BEACH, FLORIDA,THAT:
17 Section 1: The foregoing whereas clauses are true and correct and are now ratified and
18 confirmed by the City Commission
19 Section 2: Section 18-180.2 of the Code of Ordinances of the City of Boynton Beach
20 is hereby amended to read as follows:
21 Sec. 18-180.2. Cost of living increase.
22 (a) Effective December 1, 2011, an automatic two percent(2%) annual cost of living adjustment
23 (COLA) is created for all members who retire or enter into the DROP on or after December 1,
24 2006. Payment of annual COLA benefits shall not begin until five (5) years after retirement or
25 entry into the DROP. As of each October first, retirees in pay status and beneficiaries receiving
26 monthly survivorship benefits on behalf of deceased members, shall have their benefits adjusted
27 annually,following the five(5)-year delay.Retirees eligible to receive annual COLA benefits shall
28 include all retirees electing early retirement and all disability retirees who enter pay status on or
29 after December 1, 2006. Effective October 1, 2023, COLA benefits will commence beginning on
30 the October 1 following separation from service, for DROP participants who elect to extend their
31 DROP participation beyond five(5)years.
32 (b) Every third year following adoption of this section, an actuarial evaluation of the cost of this
33 benefit (two percent (2%) COLA adjustment for retirees) will be provided to the city by the
34 Pension Plan's actuary, or other actuary designated by the city at its option. In the event the
35 projected cost of the benefit increases over the projected cost for fiscal year 2006-2007, the
36 Pension Plan shall be further amended to provide that the increased costs will be offset by (1)an
37 increase in the five percent(5%)employee contribution provided herein, or(2)use of Chapter 175
38 funds, or (3) reduction of the cost of living (COLA) benefit for non-retired members, or any
39 combination of(1), (2) or (3), as recommended by the Pension Board in consultation with the
40 membership.Notwithstanding any provision to the contrary, COLA benefits under this paragraph
41 shall not be reduced for retirees.
42 (c) In years where the actuarial evaluation described above determines that the cost of the
43 COLA benefit is less than the projected cost for the benefit for fiscal year 2006-2007,the actuarial
44 savings shall be recognized in a contribution reserve account within the Pension Plan.Any savings
45 accumulated in the contribution reserve account shall be held in trust to be used to offset
46 unanticipated COLA costs in future years.
47 Section 3: Section 18-194 of the Code of Ordinances of the City of Boynton Beach is
48 hereby amended to read as follows:
49 Sec. 18-194 Deferred retirement option plan.
50 (a) The following provisions shall apply to all members :
51 (1) A deferred retirement option plan ("DROP") is hereby created.
52 (2) Eligibility to participate in the DROP is based upon eligibility for normal service
53 retirement in the plan.
54 (3) Participation in the DROP must be exercised within the first 30 years of employment;
55 provided, however, that participation in the DROP, when combined with participation in the
56 retirement plan as an active member, may not exceed 30 years. The maximum period of
57 participation in the DROP is five years. An employee's election to participate in the DROP plan
58 shall be irrevocable and shall be made by executing a resignation notice on a form prescribed by
59 the city. Effective October 1, 2023 the maximum period of DROP participation shall be eight(8)
60 years; provided that the maximum period of active membership when combined with DROP
61 participation shall not exceed thirty-three (33) years. DROP participants electing to remain in
62 DROP during years six(6)through eight(8) shall resume employee"pick-up"contributions at the
63 rate of six percent (6%) as follows: Five percent (5%) shall be allocated to COLA funding under
64 Section 18-180.2(c)and the remaining one percent(1%)shall be applied to unfunded liabilities in
65 the retirement system.
66 (4) Upon exercising the right to participate in the DROP, an employee's creditable service,
67 accrued benefits and compensation calculation shall be frozen and shall utilize the average of the
68 three five highest of the ten years immediately preceding participation in the DROP as the
69 compensation basis. Accumulated, unused sick and vacation leave shall be included in the
70 compensation calculation;provided, however, that a minimum balance of 120 hours of sick leave
71 and 120 hours of vacation leave shall be maintained by the employee and excluded from this
72 calculation. The retained leave balance, including any additions, shall be distributed at the
73 conclusion of DROP participation and separation from service.
74 (5) Payment shall be made into the employee's DROP account as if the employee had
75 terminated employment in the city in an amount determined by the employee's selection of the
76 payment option.
77 (6) An employee's account in the DROP program shall earn interest in one of three ways.The
78 selection of the earnings program shall be irrevocable and shall be made prior to the first deposit
79 in the DROP account. The options are:
80 a. Gain or lose interest at the same rate as the plan; or
81 b. At an annual fixed rate of 7%; or
82 c. In a self-directed account utilizing mutual funds selected by the Board.
2
Coding: Words in strikeout type are deletions from existing text.
Words in underline type are additions.
83 Effective October 1,2023,DROP participants electing to remain in the DROP after five years shall
84 receive interest on deposits (and earnings thereon) made into the DROP during years six (6)
85 through eight(8), at a rate equal to the overall net (earning less costs) investment rate of return on
86 the retirement plan assets. Notwithstanding fund performance, the crediting rate will be no less
87 than 0%and no more than 8%for deposits made during years 6 through 8,whereas the interest on
88 deposits (and earnings thereon) made during years 1 through 5 shall be at the rate selected by the
89 member prior to entry into DROP pursuant to section 6a. or 6b. DROP deposits accumulated
90 during years 1 to 5 will be segregated from DROP deposits accumulated during years 6 to 8 for
91 interest crediting purposes. After separation from service, DROP assets from each period will be
92 separately credited with earnings,as appropriate. The crediting of interest shall occur annually as
93 of the end of the fiscal year for assets accumulated during years 6 to 8,based on the net(earnings
94 less cost) investment rate of return provided by the Plan's investment consultant.
95 (7) An employee shall terminate service with the city at the conclusion of five years in the
96 DROP. Effective October 1, 2023 DROP participants shall terminate service with the City at the
97 conclusion of eight(8) years in the DROP.
98 (8) All interest shall be credited to the employee's DROP account on the last day of the month
99 in which the member separates from service. In the event that a member dies while in the DROP,
100 interest shall be pro-rated to the last business day of the month preceding the death of the member.
101 (9) Upon termination with the city, an employee may receive payment within 45 days of the
102 member requesting payment or may defer payment until a time not later than the latest date
103 authorized by Section 401(a)(9) of the Internal Revenue Code at the option of the member.
104 (10) Payments from the DROP may be received as a lump sum installment payment or
105 annuity, provided, however, that at all times, the DROP shall be subject to the provisions of the
106 Internal Revenue Service.
107 (11) No payment may be made from the DROP until the employee actually separates from
108 service with the city.
109 (12) If an employee shall die during participation in the DROP, a survivor benefit shall be
110 payable in accordance with the form of benefit chosen at the time of entry into the DROP.
111 (13) Upon commencement of participation in the DROP, the member shall no longer be
112 eligible for disability retirement from the pension plan. If a member becomes disabled during the
113 DROP period, the member shall be treated as if he/she retired on the day prior to the date of
114 disability.
115 (14) In order to remain in the DROP beyond the current five-year cap, existing DROP
116 participants shall provide written notice of their intent to extend their DROP participation. The
117 deadline for providing written notice shall expire thirty (30) days after second reading of this
118 ordinance.
119
3
Coding: Words in strikeout type are deletions from existing text.
Words in underline type are additions.
•
•
120 "• ••_ . •• -- DI - -- 7." - ! . •. " ..
121 . _ ._ • • _ .: ! •.
•
•
122 • -. . - -- - - - - -• -• - 9 ' 9 ' - -• - -•123 • : _ -- • . : , . ' _ _ _ - - ' D ' e ' . . _ : . . -124 - -- - . - -- : - - - . - --
•
125 - - • -• - : - - • - . • " - _ • . . - - - - - - - '
126 - ' _ _ . . • . - _ - - . ! ' ! '.
•
127 • • - - : -- - -- - _ .. - • • - : - ' -: - • - - . . . . D ' . .
•
•
128 . - - -- . - - - -- : - • - '• •• • • - •• - - ;-- ;-
129
-•
•
129 • :• ' - . -_ • . -::•• :, . •- - . . -• - - : •, • ; : - . - .. _ .
130 . . ' - •- - - .. - . • . : : _ _ ! ' ! ' .. - - -- : - .. _ :. _ •• _
131 " 9 ' - • ! .. _ _ .. . , •_ _ ,
132 • . . - - - : - _ .. - .. . ' 9 ' - --• =
•
133 ;.-- : - • • - -- . .. _ - .: . . -- - - -" - - - '
134 - . . ' - -. ` _. - _ «. _•. • _ " : . - . . . _ ! :.. - _
•
135 .. ;: . ' --- - - - - - -- - _ ! ' ! ' _ ! ... •- _ - _ ..
136 - -- - . . - - -- - • .
•
•
137 ': -•::: - - -' "- ' ' - -- ' _ ! _. _ . .. . .. ..
138
139 • • - - : -- - .. _ •. . . . . ' _ . _ - - .
140 _ .. . • • : _ ' ":. •:- :. - :: - •- . . . ., . . _ .. . -- - - =
•
141 . 1-- : - -- - - - - . -_ . . ._ . -- . -: . ... - - --
•
142 -- . - . . - -- - - • - . . -- .--- - • " - • . - -- .
143 .. "_ ; --•" - - - - ' e ' . -
144 . . _ _ - . . _ .. • . - _ • D ' ! '.
145 • • __. _. - - - •• -. . ._. •: _. _ _ ! .
•
•
146 :;;•• ;: - -- :. ._- . _ - . .. _. : •: - - - : - - •. .
147 --•-•-- . -- .. . - •- -- - - . - ! .. . _. •. - - .
•
148 _ . . -- : -: • - • •;: - - -• _. .. . •: . •- • .. .: _. _ .. - - -- - :
•
•
149 •-- , • : ::•: - - • - -- - -- - . _ ! ' ! ' :. . :. •_ • . :
150
151 ! ! ' e . --•- - - - - ' . - - • - - - • -- - - = .
152 "-_ . . .. : .. .. . • - - : .. . _ . - . . .
153 preeess.
154 '• - - -- • • - •• - - - -' -" e ' •--- - . •
•
155 - _ - -- _' - '. -- • - -- ! ' ! ' • :_ ' . . - - - - - -- -- -
156 - . . __ .. .. _ • _ . ' . ' - - - . . - _ .! • . .. .. _ . ! . .
,
157 - - . ' - .. , - - ._-• .
4
Coding: Words in strikeout type are deletions from existing text.
Words in underline type are additions.
•
158 • • :.-- ; - _ P. ' . . :-"•-: - - - - - -159 _ . . _ . _ - _ • . . • _ • _ .. • • - - - -" -- ', - • .
160
161 ._ - - _ . - .. . ' • . . : _ •: . . - ._. .. _ ' - ..
162 ! ' ! ' _ _ . _. _ - . . .. . _ _
163 - - - •--- • _. -- - -• - -- ..
•
164 • - - - - -- - - • - - . . --' ' ' ! . - • -165 .. . ._ . : .. _ •• ' - . .. _ .. - - - - • - -
166 • . - � "- ' - _ ; : . __ : _ . _ .. . - ' ----
167
• � . .
168 •: •- -- - - - - - -- ::,-•.•:: - e - • -� - - -
169 - • - . . .... . -- - . .. - - --' -" '- ' . . - - .
170 - . . ! ' ! ' . . •--- - •- - - • - - - - . .
•
171 : -: - -: -- • - • - -- . • - - : - - - - - • - - - -
•
•
172 - - - - - . . • . . •-: - -- - - :.-- ; ••'• .. _ .. •_ _ ! ' ! ' . .
173 • • . : • : .- : • - - - -: • - • -- . !0. .
174 8-9747
175 • - •-- - : - - - --' :: -•:•:: : _ : ' ! ' . . . . . .. -• - -
•
•
•
176 :.. •. .. - ._ . . -, - - • - • . _ . • 7.-" - _ . . - - - - ... . .
1 •
•
77 - • -- - - ::: - . _ - - - - - • - • . - :.
178 .. . . •: . ;: D ' ! ' .. - . . • ;:•: . _ '
179 -• - . . . • -- • . - - - : - --- - - _ .. .. •
_
•
•
180 •- • _ ! ' ! ' : . _ -! •- . - :.. : : - -
•
181 - - - - -' "- ' .. _ .. •: : -:: • •-
•
182 • _. :: : - - - - . - - . - -- • --. . --
183 lett:
184 _ .. :--•*-: . -, - • _ ' _ ' ! ' . ' . •--- - • • - - - - - ••. -- .
185 - -- - . .. - . . •, - -• •- - - - - - : • -• • • - - - -- -
•
186 : _ . ' _ : :. . : . - . • : : : - • -' -- : : . • •:;: : -
187 _. :-:: : - 3: •.. . . _ :: - • ' _ •:
•
•
•
188 • : - • - - : : - - •• - - - - • --' ! ► ! ' : . • - - - - - -- -
•
•
189 • - • .. . __ . :- : :. _. .. : : -• - • --' - - _ • -- : . . • . . .
190 - -• •• - - - - - ::•: •- _. - . . - . • '• :*•: : •: -.
191 (20) Distribution of an employee's DROP plan account shall begin as soon as
192 : : - ; - -• - - - - - : • " ; - --' - -• . - - - . " 1- - . . , . --
193 - - •- : :. •_ ' - - .. •- . - • - - • -• : : : - - : --'
•
194 - .. • •_ - - . - -- - -- . . • . ' . . . -• •• -•
- - • - - - - -- - .. . " . � .. _ .
5
Coding: Words in strikeout type are deletions from existing text.
Words in underline type are additions.
196 -- - :•"" ;
-
197 _• .. _ .• _ _ - ' _ , ! • , - . - - . . .. - - - . .-- --_
198 ! - ' -- . . . - ! -• - . .. ! !.
199 Section 4: It is the intention of the City Council, and it is hereby ordained that the provisions
200 of this Ordinance shall become and be made a part of the Code of Ordinances of the City of
201 Boynton Beach,that the sections of the Ordinance may be renumbered or relettered to accomplish
202 such intentions; and that the word "Ordinance"shall be changed to"Section"or other appropriate
203 word.
204 Section 5: If any clause, section,or other part or application of this Ordinance shall be held in
205 any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or
206 invalid part or application shall be considered as eliminated and shall not affect the validity of the
207 remaining portions or applications which shall remain in full force and effect.
208 Section 6: All ordinances or parts of ordinances, resolutions or parts of resolutions in conflict
209 herewith are hereby repealed to the extent of such conflict.
210 Section 7: This Ordinance shall become effective immediately upon adoption, unless
211 otherwise provided.
212 FIRST READING this 21s`day of June, 2022.
213 SECOND, FINAL READING AND PASSAGE this S day of jiitt , 2022.
214 CITY OF BOYNTON BEAC , FLORIDA
215 YES NO
216 Mayor—Ty Penserga (/ /
217 Vice Mayor—Angela Cruz
218 Commissioner—Woodrow L. Hay
219 Commissioner—Thomas Turkin
220 Commissioner—Aimee Kelley ✓_/
221 VOTE S—O
S RArf
222 STT —,,`•••,,•
OT�N,(3.‘`‘``
223 .(Z?•, •. �C�11
224 .I ► 01! 0111 1 p 63 •.y ►�
225 Maylee P -sus MMC >-: + Y •
i
• 77
226 City Cle ' U; Kikr : i
'N°°Rg20
227 � .,. :
228 , ••••....•••��P
229 (Corporate Seal) '.‘ FLOC
6
Coding: Words in strikeout type are deletions from existing text.
Words in underline type are additions.