Ord 27-04ORDINANCE NO. 27-04
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AMENDING
CHAPTER 35, "EMPLOYEES POLICIES AND BENEFITS",
SUBHEADING "RETIREMENT PLAN", OF THE CODE OF
ORDINANCES OF THE CITY OF DELRAY BEACH, BY
AMENDING SECTION 35.097, "RETIREMENT INCOME;
BASIS, AMOUNT AND PAYMENT", TO REVISE THE
OPTIONAL FORMS OF BENEFIT; PROVIDING A SAVING
CLAUSE, A GENERAL REPEALER CLAUSE, AND AN
EFFECTIVE DATE.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DI~.I.RAY BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading,
"Retirement Plan", of the Code of Ordinances of the City of De[ray Beach is hereby amended by
amending subsection (E) of section 35.097, "Optional Forms of Retirement Income", to read as
follows:
Section 35.097 RETIREMENT INCOME: BASIS. AMOUNT. AND PAYMENT.
(E) Optional forms ofreti~ementincome.
(1) In lieu of the amount and form of retirement income payable in the event of normal
retirement, early retirement, or termination of service as specified in subparagraphs (A), (B) and
(D)(1) of this section, a participant or a terminated participant may, upon written request to the
Committee submitted prior to the receipt of retirement income or benefits under the plan, and
subject to the approval of the Committee, elect to receive a retirement income or benefit
commencing on the date specified in subparagraphs (A), 03) and (D)(1) of this section,
whichever is applicable, of equivalent actuarial value payable in accordance with one of the
following options:
(a) Option 1. A retirement income of a modified monthly
amount, payable to the participant for life, except that in the event the participant dies
before receiving retirement income for a period of ten years, the same monthly benefit will
be paid to the beneficiary designated by the participant for the balance of the ten-year
period.
(b) Option 2. :1-:. A retirement income of a modified monthly
mount payable to the participant during the jc. Lnt lifetime of the participant and following
the rmrticir~ant's death, t.:_ __ ~___ .:__: .... a :_:_. · T,_.~_ .~-:_ ·
_ . . ........... ~ ...... j ....pcna:c, ncr .......... c~p:c.n, the
· ' ' '- ~~': ....... ' ....:u~-.-ivor bcncfit of 100%, 75%, 66.66% or 50%
pa-nc:pant may, p=ar ............. , ......
of the participant's modified monthly benefit shall be payable to the joint pensioner for life.;
._.u:_t. _~-_n k ...... ~.~ .... u ..... .: .... c__ .~-_ ~:c~,~_~ ^c ,u ..... .: ..... Election of this
option shall be null and void if the designated joint pensioner dies before the participant's
retirement, unless the participant designates another joint pensioner in accordance with
Section 3S 097(E)(2) ~ ..... "--: .......... " .... ~- -';- --~ ..... ~ .... ~-: ...... a
.... : ...... o= ........ n ur_ .u ....~'-- fo h rfi i 's oint
v-J ................ ~,o~j ................... rm. ExceDtw ereana chant i
pensioner is his/her spouse, the present value of payments to the participant shall not be less
than fifty, percent (50%) of the total present value of the payments to the participant and the
participant and the joint pensioner.
(c) Option 3. In lieu of the other optional forms enumerated in
this section, and upon the request of a participant, retirement benefits may be paid in any
form approved by the Board so long as actuarial equivalence with the benefit othenvise
payable is maintained.
(2) A participant, upon electing any option under this section, shall designate the
joint pensioner or beneficiary to receive the benefit, if any, payable under the plan in the
event of the participant's death, on a form provided by the Committee. The participant may
revoke or change the designation of a joint pensioner or beneficiary at any time prior m the
commencement of retirement income or benefits, by submitting such change in writing on a
form provided by the Committee. A participant may also change the designation of a joint
pensioner or beneficiary after the commencement of retirement income or benefits, subject
to approval by the Committee, and in accordance with the following:
(a) The participant must pay the full cost of determining the equivalent
actuarial value of the benefit payable.
(b) The consent of a participant's joint pensioner or beneficiary to any
change in such designation shall not be required.
(c) The mount of retirement income payable to the participant upon
the designation of a new joint pensioner shall be acmuriully redetermined, taking into
account the benefits already received by the participant, and the age and sex of the former
joint pensioner, the new jc~mt pensioner and the participant.
(d) Each designation of a joint pensioner or beneficiary shall be made in
2 ORD. 27-04
writing on a form provided by the Committee.
(e) In the event that no designated beneficiary survives the participant,
the benefits payable in the event of the participant's death subsequent to retirement shall be
paid as provided in Section 35.100(A) of this subchapter.
(3) Retirement income payments will be made under the option elected in
accordance with the provisions of this division and will be subject to the following
limitations:
(a) If a participant dies prior to his retirement under the plan, or if a
terminated participant dies prior to the commencement of normal retirement income, no
benefit will be payable under the option to any person, but benefits will be payable as
provided in subparagraph (D) of this section.
(b) If a participant's designated beneficiary or joint pensioner dies before
the participant's retirement under the plan, the option elected will be cancelled automatically
and retirement income in the normal form and amount will be payable to the participant
upon retirement as if the election had not been made, unless a new election is made in
accordance with the provisions of this section, or unless a new beneficiary or joint pensioner
is designated by the partic/pant prior to retirement.
(c) If both the participant and designated beneficiary die after the date
the participant's retirement income commences under the plan, but before the full actuarial
value of benefits under the provisions of subparagraph (E)(1)(a) or (c) has been received, the
Committee may, in its discretion, direct that the commuted value of the remaining payments
be paid in a lump sum and in accordance with Section 35.100(B).
Section 2. 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 operate to invalidate the remainder hereof.
Section 3. That this ordinance shall become effective immediately upon its passage
on second and final reading, except as to plan participants who are covered under a collective
bargaining agreement. This ordinance shall become effective as to the excluded employees
immediately upon the date of ratification and execution of a collective bargaining agreement or
memorandum of understanding that includes the provisions of this ordinance.
3 ORD. 27-04
~ PA~_~D~AN.D ADOPTED in regular
the day ~~.~ ,2004.
session on second and final reading on this
ATI'PSST:
City Clerk
Fir s t Readin~'~~O j o~00 a/-
Second
4 ORD. 27-04
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
MAYOR AND CITY COMMISSIONERS
CITY MANAGER ~
AGENDA ITEM # ~ ~Q.- - REGULAR MEETING OF MAY 4. 2004
ORDINANCE NO. 27-04 (AMENDING CHAPTER 35. "EMPLOYEE
POLICIES AND BENEFITS")
APRIL 30, 2004
This ordinance is before Commission for second reading and public hearing to amend Chapter 35,
"Employee Policies and Benefits" of the City Code of Ordinances, Section 35.097, "Retirement
Income: Basis, Amount and Payment" to clarify the optional forms of benefit.
At the first reading on April 20, 2004, the Commission passed Ordinance No. 27-04.
Recommend approval of Ordinance No. 27-04 on second and final reading.
S:\City Clerk\agenda memo,Omi 27.04. General Empl Pension Plan.05.04.04
[ITY OF DELRIIY BEIIEH
CITY ATTORNEY'S OFFICE
200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444
TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755
Writer's Direct Line: 561/243-7091
AJl. Amedca City
DATE:
TO:
MEMORANDUM
April 12, 2004
City Commission
David Harden, City Manager
FROM: Susan A. Ruby, City Attorney
SUBJECT:
Ordinance No. 27-04
Clarifying Optional Forms of Retirement for the General Employees
Pension Plan
The City is revising a previous ordinance adopted recently presenting optional
forms of retirement because the City's actuary, Steven Palmquist requested
certain changes to clarifying the ordinance.
The actuary has indicated that this present ordinance appropriately clarifies the
previous ordinance on the subject.
Please place the ordinance on the next available agenda. By copy to Harry
Hamilton, I am requesting that he send a copy of the newly revised ordinance to
the NCF&O Bargaining Unit for their information.
Attachment
Cc:
Barbara Garito, City Clerk
Harry Hamilton, Human Resources Director
Joe Safford, Finance Director
Sherry Muehlberg, Administrative Manager
ORDINANCE NO. 27-04
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35,
"EMPLOYEES POLICIES AND BENEFITS", SUBHEADING
"RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF
THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING
SECTION 35.097, "RETIREMENT INCOME; BASIS, AMOUNT
AND PAYMENT", TO REVISE THE OPTIONAL FORMS OF
BENEFIT; PROVIDING A GENERAL REPEALER CLAUSE;
PROVIDING A VALIDITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading,
"Retirement Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended by
amending subsection (E) of section 35.097, "Optional Forms of Retirement Income", to read as
follows:
Section 35.097 RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT.
(E) Optional forms of retirement income.
(1) In lieu of the amount and form of retirement income payable in the event of normal
retirement, early retirement, or termination of service as specified in subparagraphs (A), (B)
and (D)(1) of this section, a participant or a terminated participant may, upon written request
to the Committee submitted prior to the receipt of retirement income or benefits under the
plan, and subject to the approval of the Committee, elect to receive a retirement income or
benefit commencing on the date specified in subparagraphs (A), (B) and (D)(1) of this
section, whichever is applicable, of equivalent actuarial value payable in accordance with one
of the following options:
(a) Option 1. A retirement income of a modified monthly
amount, payable to the participant for life, except that in the event the participant dies
before receiving retirement income for a period of ten years, the same monthly benefit
will be paid to the beneficiary designated by the participant for the balance of the ten-year
period.
(b) Option 2. ~. A retirement income of a modified monthly
amount payable to the participant during the jeint lifetime of the participant and following
the participant's death, ~ er ~ ~:~ ;~:~* .... : .... ~T~ ,~;~ ^~,;~ ,~
v ..... v ....... .,, v ............................... c .........cf 100%, 75%, 66.66% or
50% of the participant's modified monthly benefit shall be payable to the joint pensioner for
life ?2ch shall be pa,able '~ '~ ...... : .... C~. ~'l'~ l;tg'~l':--~ Cf *~.hc ..... 1 .... Election of
this option shall be null and void if the designated joint pensioner dies before the
participant's retirement, unless the participant designates another joint pensioner in
accordance with Section 35 097(E)(2) ~v~ .... ,~..: ......... ~., .... ~..~;. ^~,~ .~
where a participant's ioint pensioner is his/her spouse, the present value of payments to
the participant shall not be less than fifty percent (50%) of the total present value of the
payments to the participant and the participant and the joint pensioner.
(c) Option 3. In lieu of the other optional forms enumerated in
this section, and upon the request of a participant, retirement benefits may be paid in any
form approved by the Board so long as actuarial equivalence with the benefit otherwise
payable is maintained.
(2) A participant, upon electing any option under this section, shall designate
the joint pensioner or beneficiary to receive the benefit, if any, payable under the plan in
the event of the participant's death, on a form provided by the Committee. The
participant may revoke or change the designation of a joint pensioner or beneficiary at
any time prior to the commencement of retirement income or benefits, by submitting such
change in writing on a form provided by the Committee. A participant may also change
the designation of a joint pensioner or beneficiary after the commencement of retirement
income or benefits, subject to approval by the Committee, and in accordance with the
following:
(a) The participant must pay the full cost of determining the equivalent
actuarial value of the benefit payable.
(b) The consent of a participant's joint pensioner or beneficiary to any
change in such designation shall not be required.
(c) The amount of retirement income payable to the participant upon
the designation of a new joint pensioner shall be actuarially redetermined, taking into
account the benefits already received by the participant, and the age and sex of the former
joint pensioner, the new joint pensioner and the participant.
2 ORD. 2%04
(d) Each designation of a joint pensioner or beneficiary shall be made
in writing on a form provided by the Committee.
(e) In the event that no designated beneficiary survives the participant,
the benefits payable in the event of the participant's death subsequent to retirement shall
be paid as provided in Section 35.100(A) of this subchapter.
(3) Retirement income payments will be made under the option elected in
accordance with the provisions of this division and will be subject to the following
limitations:
(a) If a participant dies prior to his retirement under the plan, or if a
terminated participant dies prior to the commencement of normal retirement income, no
benefit will be payable under the option to any person, but benefits will be payable as
provided in subparagraph (D) of this section.
(b) If a participant's designated beneficiary or joint pensioner dies
before the participant's retirement under the plan, the option elected will be cancelled
automatically and retirement income in the normal form and amount will be payable to
the participant upon retirement as if the election had not been made, unless a new election
is made in accordance with the provisions of this section, or unless a new beneficiary or
joint pensioner is designated by the participant prior to retirement.
(c) If both the participant and designated beneficiary die after the date
the participant's retirement income commences under the plan, but before the full
actuarial value of benefits under the provisions of subparagraph (E)(1)(a) or (c) has been
received, the Committee may, in its discretion, direct that the commuted value of the
remaining payments be paid in a lump sum and in accordance with Section 35.100(B).
thereof,
invalid,
Section 2. That should any section or provision of this ordinance or any portion
any paragraph, sentence, or word be declared by a court of competent jurisdiction to be
such decision shall not operate to invalidate the remainder hereofi
Section 3. That this ordinance shall become effective immediately upon its
passage on second and final reading, except as to plan participants who are covered under a
collective bargaining agreement. This ordinance shall become effective as to the excluded
employees immediately upon the date of ratification and execution of a collective bargaining
agreement or memorandum of understanding that includes the provisions of this ordinance.
3 ORD. 27-04
the
PASSED AND ADOPTED in regular session on second and final reading on this
day of ,2004.
ATTEST:
City Clerk
First Reading
Second Reading
MAYOR
4 ORD. 27-04
Boca Raton/~::, 8eech ~e'~"~ - Friday, ~prii 23, 2004 · ww~.imcaflews.com ~9