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53-89 ORDINANCE NO. 53-89 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 33, "POLICE A}~D FIRE DEPARTMENTS", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING "PENSIONS", SECTION 33.60, "DEFINITIONS", TO ADD A DEFINITION FOR "ACTUARIAL EQUIVALENCE" OR "ACTUARI ALLY EQUIVALENT"; BY DELETING SECTION 33.62, "BENEFIT AMOUNTS AND ELIGIBILITY", SUB- SECTION (A), "NORMAL RETIREMENT DATE", SUB-SUBSECTION (2) IN ITS ENTIRETY; BY AMENDING SECTION 33.62, "BENEFIT AMOUNTS AND ELIGIBILITY", SUBSECTION (B), "NORMAL RETIRE- MENT BENEFIT", BY ADDING A NEW SUB-SUBSECTION (3) TO PROVIDE THAT A MEMBER SHALL BECOME 100% VESTED UPON BECOMING ELIGIBLE FOR NORMAL RETIREMENT; BY AMENDING SECTION 33.62, "BENEFIT AMOUNTS AND ELIGIBILITY", BY ADDING A NEW SUBSECTION ( I ), "MAXIMUM BENEFITS", TO PROVIDE RESTRICTIONS ON BENEFIT LEVELS; BY AMENDING SECTION 33.62, "BENEFIT AMOUNTS AND ELIGIBILITY", BY ADDING A NEW SUBSECTION (J), "REQUIRED PAYMENT OF PENSION BENEFITS", TO PROVIDE THE TIME FRAME FOR WHICH REQUIRED PENSION BENEFITS SHALL BEGIN; BY AMENDING SECTION 33.64, "CONTRIBUTIONS" , SUBSECTION ( A} , "MEMBER CONTRIBUTIONS" , TO PROVIDE FOR AND IN WHAT MANNER THE CITY SHALL PICK UP THE MEMBER CONTRIBUTION AS EMPLOYER CONTRIBUTIONS; AND BY AMENDING SECTION 33.64, "CONTRIBUTIONS", BY ADDING A NEW SUBSECTION (F), TO PROVIDE FOR FORFEITURES THAT M3~Y ARISE UPO}I T~E TERMINATION OF A MEMBER' S EMPLOYMENT; 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 33, "Police and Fire Departments", "Pensions", SeCtion 33.60, "Definitions", of the Code of Ordinances of the City of Delray Beach, Florida, be, and the same is, hereby amended by adding a new definition to read as follows: "Actuarial Equivalence" or "actuarially equivalent" shall mean that any benefit payable under the terms of the pension fund in a form other than the normal retirement pension shall, have the same actuarial present va.lue on the date payment commences as the normal retirement pension.. For purposes of establishing the actuarial present value of any form of payment, all future payments shall be discounted for interest and mortality by using 7% interest and the 1983 Group Annuity Mortality Table. for Males, with ages set ahead five years in the case of disability retirees. Section 2. That Chapter 33, "Police and Fire Departments", "Pensions", Section 33.62, "Benefit Amounts and Eligibility", Subsection (A), "Normal Retirement Date", of the Code of Ordinances of the City of Delray Beach, Florida, be, and the same is, hereby amended by deleting Sub-subsection (2) in its entirety. Section 3. That Chapter 33, "Police and Fire Departments", "Pensions", Section 33.62, "Benefit Amounts and Eligibility", Subsection ( B), "Normal Retirement Benefit", of the Code of Ordinances of the City of Delray Beach, Florida, be, and the same is, hereby amended by adding a new Sub-subsection (3) to read as follows: (3) Upon becoming eligible for normal, retirement, a member shall be 100% vested in his accrued benefit. Section..4- That Chapter 33, "Police and Fire Departments", "Pensions", Section 33.62, "Benefit Amounts and Eligibility", of the Code of Ordinances of the City of Delray Beach, Florida, be, and the same is, hereby amended by adding a new Subsection (I), "Maximum Benefits", to read as follows: " (I) Maximum Benefits. A member may not receive a pension or disability benefit which exceeds the lesser of: (1) 100% of the member's average compensation for the highest three consecutive years as a member in the pension fund; or (2) the maximum amount allowed under Section 415 of the Internal Revenue Code (increased to reflect the cost of living adjustment factor prescribed under Section 415(d) of the Internal Revenue Code), which is incorporated herein by reference. Section 5. That Chapter 33, "Police and Fire Departments", "Pensions", Section 33.62, "Benefit Amounts and Eligibility", of the Code of Ordinances of the City of Delray Beach, Florida, be, an~ the. same is, hereby amended by adding a new Subsection (J), "Required Payment of Pension Benefits", to read as follows: (J) Required Payment of Pension Benefits. Pension benefits shall begin no later than the later of-April 1 of the calendar year following the calendar year (1) in which the member retires; or (2) in which the member attains age 70 1/2; even if the member has not filed a claim for 9ension benefits. In addition, payment of benefits shall be made in accordance with the applicable provisions of Section 401(a)(9) of the Internal Revenue Code, which is incorpo- rated herein by reference. Section 6. That Chapter 33, "Police and Fire Departments", "Pensions", Section 33.64, "Contributions", Subsection (A), "Member Contributions",' of the Code of Ordinances of the City of Delray Beach, Florida, be, and the same is, hereby amended to read as follows: (A) Member contributions. Members of the retirement system shall make regular contributions to the trust fund at a rate equal to 6% 7.33% (6% prior to October 1, 1989) of their respective annual earnings. Eligible employees, as a condition of membership, shall agree in writing upon becoming a member to make the contribution specified herein. These contributions shall be deducted from the earnings.before the same are paid, until the member has completed 30 years of continuous service at which time payments stop. Effective October 1, 1989, the City shall pick up the member contribution required by the previous paragraph. The contributions so picked, up shall be treated as employer contribu- tions in determining tax treatment under the United States Internal Revenue Code. The City shall pick up the member contributions from funds, established and available in the salaries account, which funds would have otherwise been designated as member contributions and paid to the pension fund. Member contributions picked up by the City pursuant to this subsection shall be treated for Durgoses of makSn~ a refund of member contributions, and for all other DurDoses of this and other laws, in the same manner and to the same extent as member contributions made prior to the ..effective date of this subsection. The intent of this subsection is to comply with Section 414{h)(2) of the Internal Revenue Code. 2 ORD. NO. 53-89 Section ~ 7 o That Chapter 33, "Police and Fire D~partments", "Pensions", ' Section 33.64, "Contributions", of the Code of Ordi- nances of the City of Delray Beach, Florida, be, and the same is, hereby amended by adding a new Subsection (F), to read as follows: (F) Any forfeitures that may arise upon the termination of a member,s employment shall be used to offset the subsequent cost of the city. Such forfeitures shall not be used to increase benefits of remaining members. Section 8. 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 remainde= hereof as a whole or part thereof other' than the part declared to be invalid. Section 9. 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 12th day of September 19 89 ATTEST: First Reading August 22. 1959 Second Reading September 12, 1989 3 ORD. NO. 53-89