Ord 31-09ORDINANCE NO. 31-09
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"; AMENDING
SECTION 35.100, "BENEFICIARIES; CONTINGENCIES";
PROVIDING A GENERAL REPEALER CLAUSE; A VALIDITY
CLAUSE; AND AN EFFECTNE DATE.
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
section 35.097, "Retirement Income; Basis, Amaunt, and Payment", to read as follows:
Sec. 35,097. RETIREMENT INCOME; BASIS, A~.MOLJNT, AND PAYMENT.
(E) Optiorr~l Forrxxs of Keti~ent Xncame.
{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 ar a terminated participant may, upan written request to the
Committee submitted prior to the receipt of retirement income ar benefits under the plan, and
subject to the approval of the Committee, elect to receive a retixement 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
foIlawing options:
{a) Option ~. 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 far a period of ten (10) years, the same monthly benefit will be paid
to the beneficiary designated by the participant far the balance of the ten-year period.
{b) Option 2. A retirement income of a modified monthly amount payable to the
participant during the lifetime of the participant and following the participant's death,
one hundred (100) percent, seventy-five (75) percent, sixty-six and two-thirds (06.66)
percent or fifty (50) percent of the participant's modified monthly benefit shall be
payable to the joint pensioner for life. 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.Q97~'E)(Z). Except
where a participant's joint pensioner is his/her spouse, the present value of payments to
the participant shall not be less than fifty {50) percent of the total present value of the
payments to the participant and the participant and the joint pensioner. In addition. the
participant may elect to add a "fop-up feature"' to such joint and survivor option. if the
participant elects to add a ",pop-up feature" to the joint and survivor option. then upon
the death of his/her~oint pensioner. the amount of the ~artici~ant's monthly~ayment
of the participant's lifetime. The monthly benefit payable to the participant under this
Ot~tion 2 shall be actuarially reduced to take into account the addition of the bop-up
feature.
(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
retixement 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.
fib) 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 redeter~!nined, 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.
(d) Each designation of a joint pensioner or beneficiary shall be made in writing
on a form provided by the Committee.
2
Ord. No. 31-09
(e} In the event that no designated beneficiary survives the participant and the
participant did not elect to add a "poi-,up feature" in accordance with subsection (1~(b)
above, 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.
Section 2. 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
section 35.100, "Beneficiaries; contingencies", to read as follows:
Sec. 35.100. BENEFICIARIES; CC-NTINGENCIES.
(A} (1} If a participant dies without having designated a joint pensioner or beneficiary in
accordance with Section 35.09?(E}{2}, or if the joint pensioner or beneficiary designated by a
deceased participant predeceases the participant and the participant did not elect to add a "pow
up feature" in accordance with section 35.0971E1~11~b3, the death benefit, if any, which may be
payable under the plan with respect to the deceased participant may be paid, in the discretion of
the Cotrunittee, either to:
(a} Any one or more of the persons comprising the group consisting of the participant's
spouse, the participant's descendants, the participant's parents, or the participant's heirs-
at-low, and the Committee may pay the entire benefit to any member of that group ar
apportion the benefit among any two {2} or more of them in those shares as the
Committee, in its sole discretion, shall determine; or
(b} The estate of the deceased participant.
Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the
same are hereby repealed.
Section 4. That if any section, subsection, paragraph, sentence or word or other
provision of this ordinance, ar any portion thereof, or its application to any person or circumstance,
be declared by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall
not affect the validity of any other section, subsection, paragraph, sentence or ward or provision or
its application to other persons or circumstances and shall not affect the validity of the remainder
hereof as a whole or part thereof other than the part declared to be invalid.
Section 5, That this ordinance shall become effective immediately upon passage on
second and final reading.
3
Ord, No. 31-09
(e) In the event that no designated beneficiary survives the participant and the
participant did not elect to add a "pop-up feature" in accordance with subsection tl~tbl
above, 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.
Section 2. That Chapter 35, "Employee Policies and Benefits", subheading, "Retirement
Plan", of the Cade of Ordinances of the City of Delray Beach is hereby amended by amending
section 35.100, "Beneficiaries; contingencies", to read as follows:
Sec. 35.100. BENEFICIARIES; CONTINGENCIES.
{A) {1) If a participant dies without having designated a joint pensioner or beneficiary in
accordance with Section 35.097{E){2), or if the joint pensioner ar beneficiary designated by a
deceased participant predeceases the participant and the~aarticipant did not elect to add a "paw
up feature" in accordance with section 35.097CE~f11(b~, the death benefit, if any, which may be
payable under the plan with respect to the deceased participant may be paid, in the discretion of
the Committee, either to:
{a) Any one ar more of the persons comprising the group consisting of the participant's
spouse, the participant's descendants, the participant's parents, ar the participant's heirs-
at-law, and the Committee may pay the entire benefit to any member of that group or
apportion the benefit among any two {2) or more of them in those shares as the
Committee, in its sole discretion, shall determine; ar
(b) The estate of the deceased participant.
Section 3. That aIl ordinances or parts of ordinances in conflict herewith be, and the
same are hereby repealed.
Section 4. That if any section, subsection, paragraph, sentence or word or other
provision of this ordinance, or any portion thereof, or its application to any person or circumstance,
be declared by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall
not affect the validity of any other section, subsection, paragraph, sentence ar word or provision ar
its application to other persons or circumstances and shall not affect the validity of the remainder
hereof as a whale or part thereof other than the part declared to be invalid.
Ord. Na. 31-09
Section 5. That this ordinance shall become effective immediately upon passage on
second and final reading.
PASSED AND ADOPTED in regular session on second and final reading on this
the 16th day of une, 2009.
MAYOR
ATTEST:
~.! J ,
r
City rk
1~irst Readin ~ ~'''
Second Reading l ~P T
d~,yc~,~
4
Ord. No, 31-09
Page 1 of 1
ME~CIRANT}UM
TO: Mayor and City Commissioners
FROM; David T. Harden, City Manager
DATE: June 9, 2009
SUBJECT; ~GEN_UA ITEM 10 A -REGULAR COMMISSION MEETING OF JUNE 16 2009
t7RllINANCE N0.31-49
ITEM BEFC?~~E COMMISSION
This ordinance is before Commission for second reading to consider acity-initiated amendment to
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"; amending Section 35.100, "Beneficiaries; Contingencies" which adds a
pop-up provision to the General Employees Pension Plan.
BACKGROUNI?
At the first reading an June 2, 2009, the Commission passed Ordinance No. 31-09.
Ft.ECOMMENI}ATIOIN
Recommend approval of Ordinance Na. 31-09 an second and final reading.
http://miweb401lAgendaslBluesheet.aspx?ItemID=2295&MeetingID=210 6/1712009
Page 1 of 1
~EMOF~ANDUM
TO: Mayor and City Commissioners
FROM: Susan A. Ruby, City Attorney
DATE: May 24, 2449
SUBJECT: AGENDA ITEM 12A. -REGULAR COMMISSION 14IEETING OF JUNE 2, 2009
ORDINANCE NO 31-09
ITEM BEFORE COMIVIISSION
The item before the City Commission is Ordinance No. 31-49 which adds apop-up provision to the
General Employees Pensian Plan.
BACKGROUND
The City Commission recently passed a provision in the PalicetFire Pensian Plans that added a feature
known as a pap-up pravisian. This ordinance provides apop-up pravisian far the General Employees
Pensian Plan.
Under this provision, if a member chooses a joint and survivor benefit and pop-up benefit, the
member's pension amount, while actuarially decreased to address the pop-up feature would if the
spouse dies before the member, increase but not mare than that of a straight life annuity
amount, Because the total amount received under the pap-up option is reduced further, the provision
does not usually have a cost impact.
RECOMMENDATION
The City Attorney recommends approval of Ordinance No. 31-49,
http:l/miweb441lAgendaslBluesheet.aspx?ItemID=2224&MeetinglD=248 61512449
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LEWIS, LfJNGMAN & WALKER, PA.
i2eez.Y "Dcx TACUate35t~
May 18, 2049
Ms. Susan A. Ruby
City Attanaey
City of Delray Beach
240 N.W.1~ Avenue
Delray Beech, FL 33444
Rec Aracndment to Cleneral Bmplayees. Pension Plan--"PuP-~r" i~pt%an
Dear Susan:
Attached is an ordinance ame~ading Chapter 3S of the City Code: "Bmplayee Policies and
Benefits' ;specifically, section 35.fl97, "Retirement Income; Basis, Amount, and Payment". The
revision would provide an additional, valtm~ary option far $enerai employees who select a joint
and survivor form of retii~emexat benefit.
Under a joint and survivor benefit, a member elects to receive an actuarially reduced monthly
pension far life, and if the member dies, a joint pensioner cantiwres to receive 75°l°, fi6.6fiiDlo, ar
SO°l° of the member's benefit (based an the member'"s election} far lijFe. Under the' "pap-up"
provision, the member's monthly benefit would be actuarially reduced (a further reduction of the
already reduced joint and survivor benefit}. Theirea#ter, if the rr~eta~ber's joint pensioner dies
before the member, the member's benefit would be increased to a slxsight life atmuity amaunt+
Because the benefit of any member electing the "pap-up" option is actuu~dly reduced, such
provisions are usually found #a have no cast impact,
Please call mre if you have any questions canaenaing these matters.
Sincerely,
Glenn 8. Thomas
Help~g Shape Floritdar's F'uture~
BRADENTaT't IACKSa1VYt3.[.L TALLAHASSEE WEST ~ALM,BEApi
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www.ilw-law.cont
ORDINANCE NO. 31-09
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"; AMENDING SECTION 35.100,
"BENEFICIARIES; CONTINGENCIES"; PROVIDING A
GENERAL REPEALER CLAUSE; A VALIDITY CLAUSE;
AND AN EFFECTIVE DATE.
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 C}rdinances of the City of Delray Beach is hereby amended by amending
section 35.097, "Retirement Income; Basis, Amount, and Payment", to read as follows:
Sec, 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)(l) of this Section, a participant ar a terminated participant may, upon written request
to the Committee submitted prior to the receipt of retirement income or benefits under the
p]an, 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
ane 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 (10) 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 lifetime of the participant and following the participant's
death, one hundred (l00) percent, seventy-five (75) percent, sixty-six and two-thirds
(66.66) percent or fifty (50) percent of the participant's modified monthly benefit
shall be payable to the joint pensioner for life. Election of this option shall be null and
void if the designated joint pensioner dies before the participant's retirement, un]ess
the participant designates another joint pensioner in accordance with Section
35.097{E)(2). Except where a participant's joint pensioner is hislher spouse, the
present value of payments to the participant shall not be less than fifty (50) percent of
the total present value of the payments to the participant and the participant and the
joint pensioner. In addition, the~aarticipant may elect to add a "pop_,,,pu feature" to
suchioint and survivor option. If the partic~ant elects to add a "ppop-up feature" to
the joint and survivor option, then upon the death of hislher 'o~ int .pensioner, the
amount of the participant's rnonthl~payment will be increased to the amount of a
straight life annuity and such amount wi11 be payable as of the first day of each month
after the death of the ioint pensioner far the remainder of the participant's lifetime.
(c) C?ptir~n 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, sha11 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.
(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 and
the participant did not elect to add a "~o~-up feature" in accordance with subsection
{I} b} above, 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.
2
Section 2. 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 section 35.100, "Beneficiaries; contingencies", to read as follows:
Sec. 35.1flfl. BENEFICIARIES; CONTINGENCIES,
{A) (1) if a participant dies without having designated a joint pensioner or beneficiary in
accordance with Section 35.09'7(E)(2}, or if the joint pensioner or beneficiary designated by a
deceased participant predeceases the participant and the participant did not elect to add a
`°pop-uRfeature" in accordance with section 35.097(E)tl)(b), the death benefit, if any, which
may be payable under the plan with respect to the deceased participant may be paid, in the
discretion of the Committee, either to:
{a} Any one or more of the persons comprising the group consisting of the
participant's spouse, the participant's descendants, the participant's parents, or the
participant's heirs-at-law, and the Committee may pay the entire benefit to any
member of that group or apportion the benefit among any two {2} or more of them in
those shares as the Committee, in its sole discretion, shall determine; or
(b) The estate of the deceased participant.
Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the
same are hereby repealed.
Section 4. That if any section, subsection, paragraph, sentence ar word or other
provision of this ordinance, or any portion thereof, or its application to any person or
circumstance, be declared by a court of competent jurisdiction to be invalid or unconstitutional,
such decision shall not affect the validity of any other section, subsection, paragraph, sentence or
word or provision or its application to other persons or circumstances and shall not affect the
validity of the remainder hereof as a whole or part thereof other than the part declared to be
invalid.
Section 5, That this ordinance shad become effective immediately upon passage on
second and final reading.
PASSED AND ADOPTED in regular session on second and final reading on this
the _ day of , 2009.
ATTEST:
MAYOR
City Clerk
First Read
Second Reading
l0A Boca Raton/Delray Beach News:-June 4-5, 2009 • www.bocanews.,com
NG1'ICps
i
100
ANNOUNCEIPIENT6
GTY OF DELpAY BEACH,FLOpIDA
NOTICE OFPUBLIC NFApINO
A PUBLIC IO:ARING wi4 tre Held an
the bBawing proposed ordWnca at
7:00 Rm. on TUESDAY, June I3,
2ooS (~ d airy aoriPonmtton of sum
meeting whlth le set ~ by Iha
CorsunieelonJ, b Iha ~Y Conaalssbn
Chambers, 100 N.YI Ist Meaue, DaF
rey Death, Fbotl$ at whkh Lore the
City Commisalon wN consider ils
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OADINAHCEt~9f-0p'.
AN ORDINANCE OF TFLE CITY COM•
MI5.410DI OF THE GTY OF DEIAAY
BEACH, FLORIDA, AMENDING
CHAPTER 35, 'EMPLOYEES POU•
GES ANO BENEFITS', SUBHFAP
WO RETEiEMEftT PLAN', OF THE
CODE OF ORDWANCE9 OF THE
CITY DF DELAAY BEACH FIffiilOA
AMOUNI; AND PAYMENT; AMEND.
INO SECTION 95,100,
'BENEFICIARIES; CONTINOEN•
CIES", PgOYIDWG A GENERAL pE•
PEALEq,CIAUSE; A VALIDITY
^C~LAUSE;. 'ANDi: AN!; EFFECTIVE
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