Ord 61-04 ORDINANCE NO 61-04
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AMENDING
CHAPTER 35, "EMPLOYEE POLICIES AND BENEFITS",
SECTION 35.095, BY AMENDING SUBSECTION (A)(2),
"PARTICIPANT CONTRIBUTIONS", TO PROVIDE FOR
AN INCREASED EMPLOYEE CONTRIBUTION;
PROVIDING A SAVING CLAUSE, A GENERAL
REPEALER CLAUSE, AND AN EFFECTIVE DATE.
WHEREAS, the City has a duty to make sure the "City of Delray Beach Employees
Retirement Plan is actuarially sound; and
WHEREAS, the City has contributed 8.07% of payroll for Fiscal Year 2003 and is required
to contribute 9.10% of payroll in fiscal year 2004 in order to make sure the pension plan is
actuarially sound; and
WHEREAS, it is the determination of the City that it is necessary to increase the employee
contribution by one-half of one percent (0.5%) in order to make sure that the plan is actuarially
sound.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA:
Section 1. That Tide 3, "Administration", Chapter 35, "Employees Policies and Benefits",
subsection 35.095, "Contributions of Participant and City", subsection (A), "Participants
Contribution Account", subsection (A)(2), "Participants' Contribution", to read as follows:
Sec. 35.095. CONTRIBUTIONS OF PARTICIPANT AND CITY.
(A) Participant's Contribution Account.
(1) [Tax-Deferred Contribntions.] For the purpose of this Section "Participant's
Contribution Account" will consist of tax deleted participant contributions.
Effective the first pay period beginning on or after October 1, 1989, employee
contributions will be picked up by the City and shall be txeated as employer
contributions for tax purposes. However, for all purposes of determining benefits
under the plan, they will be considered participant contributions.
(2) [Partidpants' ConMbutions. J Each participant will contribute toward the cost of the
plan an amount equal to three (3) percent of the first four thousand eight hundred
dollars ($4,800.00) of his basic annual compensation, and six (6) percent of basic
annual compensation in excess of four thousand eight hundred dollars ($4,800.00)
until the beginning of the first pay period after September 25, 1984. Beginning with
the first pay period after September 25, 1984, each participant will contribute toward
the cost of the plan an amount equal to six (6) percent of basic compensation.
Effective as of the first pay period beginning on or after October 1, 1989, participant
contributions will be equal to four and one-half (4 1/2) percent of basic
compensation on a m-deferred basis. Beginning with the first pay period after
September 1, 1999, participants shall not be required to contribute to the plan,
except those participants described in paragraph (4) of this Section. Beginning with
the first pay period after September 30, 2003, participants who are not included in
the bargaining unit specified in paragraph (4) shall contribute two (2) percent of basic
compensation. Beginning with the first pay period after November 1, 2004,
participants who are not included in the bargaining umt specified in Para~aph (4)
shall contribute two and one-half percent (2.5%) of basic compensation.
(3) (Total Benefits Payable.] Anything in the plan to the contrary notwithstanding, 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 participant, who is terminated, elects to withdraw participant
contributions, the participant will be entitled to the return of participant
contributions with interest, in lieu of all other benefits payable under the plan.
Effective September 1, 1999, if a participant has ten (10) or more years of credited
service under the plan a noncompounded simple interest rate of five (5) percent per
year shall be applied to the principal balance of the participant's contribution as
accrued on December 31 of each year. Effective September 1, 1999, if a participant
has less than ten (10) years of credited service under the plan a noncompounded
simple interest rate of three (3) percent shall be applied to the principal balance of
the participant's contribution as accrued on December 31 of each year. Participant
contributions cannot be withdrawn while a participant remains in the employ of the
City or after the payment of benefits under the plan has commenced.
(4)/tpplicabili~y to Bargaining Unit Employees. Participants who are members of the
bargaining unit represented by the National Conference of Firemen and Oilers shall
not be required to contribute to the plan unless a written actuarial valuation indicates
that contributions are required to properly fund the plan in an actuafially sound
manner. If an actuary selected by the Retirement Committee determines that
additional contributions are required to properly fund the plan, the City and
bargaining unit members shall equally share such contributions on a percentage of
payroll basis; provided that no member shall be required to contribute more than
four and one-half (4 1/2), percent of basic compensation unless the City and union
agree to a greater participant contribution.
2 ORD NO 61-04
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 affect the validity of the remainder hereof as a whole or part thereof
other than the part declared to be invalid.
Section 3. That all ordinances or parts of ordinances in conflict herewith, be and the
same are hereby repealed.
Section 4. That this ordinance shall become effective immediately upon its passage on
second and final reading.
e,x_~A~SSED AND ADOPTED in regular session on second and final reading on this ~ay
of ~ ,2004.
AT'FEST:
ACTING CITY CLERK
First Reading
Second Reading
3 ORD NO 61-04
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: CITY MANAGER
SUBJECT: AGENDA ITEM # ~ ~ e... - REGULAR MEETING OF OCTOBER 19, 2004
ORDINANCE NO. 61-04 (AMENDING CHAPTER 35, "EMPLOYEE
POLICIES AND BENEFITS")
DATE: OCTOBER 15, 2004
This ordinance is before City Commission for second reading and public hearing to amend Chapter
35, "Employee Policies and Benefits" of the City Code of Ordinances, Section 35.095, by amending
Subsection (A)(2) "Participant Contributions", to provide for an increased employee contribution.
At the first reading on October 5, 2004, the Commission passed Ordinance No. 61-04.
Recommend approval of Ordinance No. 61-04 on second and final reading.
S:\City Clerk\agenda rnemo. Ord 61.04. General Empl Pension Plan. 10.19.04
I:ITY OF DELRI:IY BEI11:H
CITY ATTORNEY'S OFFICE ~°°
TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755
Writer's Direct Line: 561/243-7091
DELRAY BEACH
~ City MEMORANDUM
~m~ DATE: September 28, 2004
TO: City Commission
David Harden, City Manager
FROM: Susan A. Ruby, City Attorney
SUBJECT: Ordinance Increasing General Employees Pension Plan
Contributions by One-Half of One Percent
The attached ordinance increases the amount that City Employees contribute to
the General Employees Pension Plan by one-half of one percent.
Please place the ordinance on the City Commission agenda for October 5, 2004
for first reading.
Attachment
Cc: Chevelle Nubin, Acting City Clerk
Harry Hamilton, Director of Human Resources
Joe Safford, Finance Director
Department Heads
ORDINANCE NO 61-04
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AMENDING
CHAPTER 35, "EMPLOYEE POLICIES AND BENEFITS",
SECTION 35.095, BY AMENDING SUBSECTION (A)(2),
"PARTICIPANT CONTRIBUTIONS", TO PROVIDE FOR
AN INCREASED EMPLOYEE CONTRIBUTION;
PROVIDING A SAVING CLAUSE, A GENERAL
REPEALER CLAUSE, AND AN EFFECTIVE DATE.
WHEREAS, the City has a duty to make sure the "City of Delray Beach Employees
Retirement Plan is actuafially sound; and
WHEREAS, the City has contributed 8.07% of payroll for Fiscal Year 2003 and is required
to contribute 9.10% of payroll in fiscal year 2004 in order to make sure the pension plan is
actuarially sound; and
WHEREAS, it is the determination of the City that it is necessary to increase the employee
contribution by one-half of one percent (0.5%) in order to make sure that the plan is actuarially
sound.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA:
Section 1. That Title 3, "Administration", Chapter 35, "Employees Policies and Benefits",
subsection 35.095, "Contributions of Participant and City", subsection (A), "Participants
Contribution Account", subsection (A)(2), "Participants' Contribution", to read as follows:
Sec. 35.095. CONTRIBUTIONS OF PARTICIPANT AND CITY.
(A) Participant's Contribution Account.
(1) [Tax-Deferred Contffbutions.] For the purpose of this Section "Participant's
Contribution Account" will consist of tax deferred participant contributions.
Effective the first pay period beginning on or after October 1, 1989, employee
contributions will be picked up by the City and shall be treated as employer
contributions for tax purposes. However, for all purposes of determining benefits
under the plan, they will be considered participant contributions.
(2) [Pa~idpants' Contributions.] Each participant will contribute toward the cost of the
plan an amount equal to three (3) percent of the first four thousand eight hundred
dollars ($4,800.00) of his basic annual compensation, and six (6) percent of basic
annual compensation in excess of four thousand eight hundred dollars ($4,800.00)
until the beginning of the first pay period after September 25, 1984. Beginning with
the first pay period after September 25, 1984, each participant will contribute toward
the cost of the plan an amount equal to six (6) percent of basic compensation.
Effective as of the first pay period beginning on or after October 1, 1989, participant
contributions will be equal to four and one-half (4 1/2) percent of basic
compensation on a tax-deferred basis. Beginning with the first pay period after
September 1, 1999, participants shall not be required to contribute to the plan,
except those participants described in paragraph (4) of this Section. Beginning with
the first pay period after September 30, 2003, participants who are not included in
the bargaining unit specified in paragraph (4) shall contribute two (2) percent of basic
compensation. Beginning with the first pay period after November 1, 2004,
participants who are not included in the bargaining unit specified in Paragraph (4)
shall contribute two and one-half percent (2.50/o) of basic compensation.
(3) (Total Benefits Payable.] Anything in the plan to the contrary notwithstanding, 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 participant, who is terminated, elects to withdraw participant
contributions, the participant will be entitled to the return of participant
contributions with interest, in lieu of ali other benefits payable under the plan.
Effective September 1, 1999, if a participant has ten (10) or more years of credited
service under the plan a noncompounded simple interest rate of five (5) percent per
year shall be applied to the principal balance of the participant's contribution as
accrued on December 31 of each year. Effective September 1, 1999, if a participant
has less than ten (10) years of credited service under the plan a noncompounded
simple interest rate of three 0) percent shall be applied to the principal balance of
the participant's contribution as accrued on December 31 of each year. Participant
contributions cannot be withdrawn while a participant remains in the employ of the
City or after the payment of benefits under the plan has commenced.
(4) Applicability to Bargaining Unit Employees. Participants who are members of the
bargaining unit represented by the National Conference of Firemen and Oilers shall
not be required to contribute to the plan unless a written actuarial valuation indicates
that contributions are required to properly fund the plan in an actuarially sound
manner. If an actuav,~ selected by the Retirement Committee determines that
additional contributions are required to properly fund the plan, the City and
bargaining umt members shall equally share such contributions on a percentage of
payroll basis; provided that no member shall be required to contribute more than
four and one-half (4 1/2), percent of basic compensation unless the City and union
agree to a greater participant contribution.
2 ORD NO 61-04
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 affect the validity of the remainder hereof as a whole or part thereof
other than the part declared to be invalid.
Section 3. That all ordinances or parts of ordinances in conflict herewith, be and the
same are hereby repealed.
Section 4. That this ordinance shall become effective immediately upon its passage on
second and final reading.
PASSED AND ADOPTED in regular session on second and final reading on this ~ day
of ., 2004.
MAYOR
ATTEST:
ACTING CITY CLERK
First Reading
Second Reading
3 ORD NO 61-04
www.bocanews.com · Boca Raton/Delray Beach'News - Saturday, October 9, 2004 25
LEGAL NOTICES
PUBLISH: Saturday, October §, 2004
Ad #117556
100
ANNOUNCEMENTS
LEGAL NOTICES
sion), in ~e City Commission Chain-.
ORDINAJiCE NO. 61,.04
AMENDINGSUBSECTION (A) 2
by the Cit~' Commission ,.,v ~h respect to
Cheveile D. Nubia
www.bocaratonnews.com ® Boca Raton/Delray Beach News - Thursday, October 71Friday, October 8, 2004 31
100
ANNOUNCEMENTS
~aAL NoTIcES
NOTIC~ 0~ INJBLIC #F. ANN0
A PUBUC HEARING will be held on the
/ollowing proposed ordinance at 7.~0
p.m. on TUESDAY, OCTOBER 19.
2004 or at any continuation of such
meeting which is set by the Commis-
sion), in the City Commission Cham-
bers, 100 N.W 1st Avenue, Delray
Commission will consider its adoption.
ordinance may be
a~ City Hall, 100 N.W. 1st Avenue, Del-
of 8:00 a.m. and 5:{~0 p.m., Monday
~rough Friday, except holidays. NI
interested par~s ~re invitod to attend
ORI~IL~I{;[ NO. 61-o4
AN ORDINANCE OF THE CITY COM-
MISSION OF THE CiTY OF DELRAY
BEACH. FLORIDA. AMENDING CHAP-
'I[R 35. 'I~IPLOYEE POUCIES AND
TRIBUTIONS O~ PARRCIPANT AND
CFi'Y". SUBSECTION (A), ~PARTICI-
PANTS CONTRIB UTATION
ACCOUNT". BY AMENDING SU8SEC-
TlOfl (A)(2), "PARTICIPANT CONTRI-
BUTIONS", TO PROVIDE FOR AN
INCREASED EMPLOYEE CONTRIBU-
TION; PROVIDING A SAVING CLAUSE.
A GENERAL REPEALER CLAUSE
Please be advised that if a person
that a verba~m record includes the tes-
timony and evidence upon which the
appoal is to be based. Tbe City d~es
not provide nor p~pare s~h record.
Pursuant to F.S. 286.0105.
CI'P( OF DELP~Y BEACH
Cbevelle D. Nu~in
/~ng C~y Clerk
PUBLISH: Thursday, October 7, 2004
6oca Rato~ray Beach Nev~s
Ad~17514