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48-89 ORDINANCE NO. 48-89 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35, "EMPLOYEE POLICIES AND BENEFITS" OF THE CODE OF , ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING "RETIREMENT PLAN", SECTION 35.095, "CONTRIBUTIONS OF PARTICIPANT AND CITY", SUBSEC- TION (A), "PARTICIPANT'S CONTRIBUTION ACCOUNT", TO CHANGE THE PERCENTAGE AMOUNT OF PARTICIPANT CONTRIBUTIONS AND TO ALLOW TAX DEFERRAL OF THESE PARTICIPANT CONTRIBUTIONS PURSUANT TO INTERNAL REVENUE CODE 414(h); AND BY AMENDING SECTION 35.097, "RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT", SUBSECTION (A), "BASIS OF RETIREMENT INCOME", SUB-SUBSECTION (1) (a), "BASIC COMPENSA- TION'~, TO RECOGNIZE A NEW DEFINITION OF BASIC COMPENSATION TO INCLUDE PARTICIPANT CONTRIBU- TIONS PICKED UP BY THE CITY; PROVIDING A SAVING CLAUSE; PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Chapter 35, "Employee Policies and Benefits", Section 35.095, "Contributions of Participant and City", Subsection (A), "Participant's Contribution Account", of the Code of Ordinances of the City of Delray Beach, Florida, be, and the same is hereby amended to read as follows: (A) Participant's.contribution account. (1) For the purpose of this division "PARTICI- PANT'S CONTRIBUTION ACCOUNT" ~I /~ /~4 /Wf~I /~f~ /~f ~4~/~~~/~f~f~ will consist of tax deferred participant contributions. Effective the first pa~ period be~innin~ on or after October 1, 198~, contributions required of employees will ~e piqked up by the city and shall be treated as employer contributions for tax ~ur~oses. Hp~ver~ for all purposes of det~rmin~n~ benefits under the ~lan, they will be considered ~artici~ant contributions. (2) Each participant will contribute toward the cost of the plan an amount equal to 3% of the first $4,800 of his basic annual compensation as defined in Section 35.097(A) and 6% of his basic annual compensation in excess of $4,800 until the beginning of the first pay period after the adoption of this subchapter by the City Commission~ Beginning with the first pay period after the adoption of this subchapter, each participant will contribute toward the cost of the plan an amount equal to 6% of his basic compensation as defined in Section 35.097(A) of this subchapter. Effective as of the first pay period beginning on or after October 1, 1989, ~artici~ant pontributions will be equa~ t© four and one-half ~ercent (4.5%) of his basic compensation as defined in Section 35.097(A), on a tax deferred basis. (3) Each participant shall continue to contribute to the plan until the earliest to occur of ~he following dates: (a) Date the participant retires under the plan. (b) Date of death of the participant. (c) Date of termination of the participant's service with the city. (4) Anything in the plan to the contrary notwith- standing, the total benefits payable under the plan to, or with respect to, a participant shall not be less than the benefits that can be provided by the participant's contributions, and further provided, if a terminated participant (as defined in Section 35.097(E) of this subchapter) elects to withdraw his contributions prior to his normal retirement date, he will be entitled only to the return of his contributions in lieu of all other benefits payable under the plan. Contributions cannot be withdrawn while a participant remains in the service of the city or after the payment of benefits under the plan has commenced. Section 2. That Chapter 35, "Employee Policies and Benefits", Section 35.097, "Retirement Income; Basis, Amount, and Payment", Subsection (A), "Basis of Retirement Income", Sub-sub- section (1) (a), "Basic Compensation", of the Code of Ordinances of the City of Delray Beach, Florida, be, and the same is, hereby amended to read as follows: (a) "BASIC COMPENSATION." The compensation actually paid to a participant by the city including participant contribu- tions picked up by the city through a reduction in the partici- pant's compensation which are not included in the gross in~me of the participant for the taxable year in which such amounts are contributed, and exclusive of overtime pay, commissions, bonuses, expense allowances, and all other extraordinary compensation. Section 3. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 4. That this ordinance shall become effective ten (10) days after second and final reading. PASSED AND ADOPTED in regular session on second and final reading on this the 8th day of August , 1989. MA-YOR ATTEST: Second Reading August 8, 1989 2 Ord. No. 48-89