Ord 18-05
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ORDINANCE NO. 18-05
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRA Y BEACH, FLORIDA, AMENDING
CHAPTER 35, "EMPLOYEES POLICIES AND BENEFITS",
SUBHEADING "RETIREMENT PLAN", OF THE CODE OF
ORDINANCES OF THE CITY OF DELRA Y BEACH,
FLORIDA, BY AMENDING SECTION 35.097, "RETIREMENT
INCOME; BASIS, AMOUNT, AND PAYMENT", TO PROVIDE
FOR AN OPTIONAL ENHANCED MULTIPLIER;
PROVIDING A GENERAL REPEALER CLAUSE; PROVIDING
A VALIDITY CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRA Y
BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading,
"Retirement Plan", of the Code of Ordinances of the City of Deltay Beach is hereby amended by
amending section 35.093, "Retirement Income; Basis, Amount and Payment", to read as follows:
See. 35.097. RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT.
(A) Normal Retirement Income.
(1) Amount of Normal Retirement Income. The amount of retirement income payable
to a participant who retires on or after his normal retirement date shall be an amount
equal to two and one-half (2.5) percent of final monthly compensation multiplied by
credited service, expressed in years and tenths of a year, up to a maximum of thirty
(30) years. A participant who has attained the age of sixty (60) and retires with five
(5) or more years of credited service, but less than ten (10) years of credited service,
shall be entided to monthly retirement income in an amount equal to two and one-
half (2.5) percent of final monthly compensation multiplied by credited service
expressed in years and tenths of a year, multiplied by the participant's vested
percentage as set forth in Section 35.091.
(2) Pqyment of Normal Retirement Income. The monthly retirement income payable in
the event of normal retirement will be payable on the first day of each month. The
first payment will be made effective on the participant's normal retirement date (or
on the first day of the month following actual retirement, if later), and shall be
continued thereafter during the participant's lifetime. Upon the participant's death
the same monthly benefit shall be continued to his or her spouse for one year, and
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sixty (60) percent of that amount shall be continued to the spouse thereafter until the
earlier of the spouse's death or remarriage. The normal form of benefit for a
participant who is not married at the time of retirement is a single life annuity. If a
participant who is not married at the time of retirement later marries, the spousal
benefit provided in this paragraph shall not apply unless the participant requests an
actuarially adjusted benefit.
(B) EarlY Retirement and Retirement Income. Early retirement under the plan is retirement
from the service of the City prior to the participant's normal retirement date but subsequent
to: the attainment of age fifty-five (55) and the completion of fifteen (15) years of credited
service; or the completion of twenty (20) years of credited service, regardless of age.
Payment of early retirement income will be governed by the following provisions of this
Section:
(1) EarlY Retirement Date. The early retirement date will be the first day of the
month following the date a participant retires from the service of the City under the
provisions of this Section prior to his normal retirement date.
(2) Amount of EarlY Retirement Income. The monthly amount of early retirement
income payable to a participant shall equal the product of "a" and "b" where "a" is
the number of years and tenths of a year of credited service at the early retirement
date multiplied by two and one-half (2.5) percent of final monthly compensation;
and "b" is the applicable actuarial reduction factor to take into account the
participant's younger age and the earlier commencement of retirement income
payments. The factor to be used in "b" above is equal to one minus five-twelfths of
one percent for each month that the early retirement date precedes the normal
retirement date.
(3) Pf!)ment of EarlY Retirement Income. The retirement income payable in the event
of early retirement will be payable on the first day of each month. The first payment
will be made effective on the participant's early retirement date and shall be
continued thereafter during the participant's lifetime. Upon the participant's death
the same monthly benefit shall be continued to his or her spouse for one year, and
sixty (60) percent of that amount shall be continued to the spouse thereafter until the
earlier of the spouse's death or remarriage.
(C) Optional Enhanced Multiplier.
(1) Notwithstanding any proVisIOn of the plan to the contrary. an el.igjble
participant may elect a normal retirement benefit or early retirement benefit equal to
three percent (3%) of final monthly compensation multiplied by credited service.
expressed in years and tenths of a year. up to a maximum of thirt;y (30) years.
2
()rdinance ~o. 18-05
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Participants electing this enhanced multiplier shall thereafter contribute three and
forty-five one-hundredths percent (3.45%) of earnings to the Plan in addition to the
participant contribution specified in Section 35.095. and shall receive the enhanced
multiplier for future periods of credited service only. Such participants may also
elect to purchase the enhanced multiplier for some or all periods of continuous
service prior to the date of the election. by payin,g into the Plan the full actuarial cost
of the enhanced multiplier. plus the full cost of any actuarial or other professional
services required. Such payment may be made by cash lump sum payment or by a
direct rollover of an eligible rollover distribution or a member contribution of an
eligible rollover distribution from an individual retirement account described in
Section 408(a) of the Internal Revenue Code. an individual retirement annuit;y
described in Section 408(1)) of the Internal Revenue Code (other than an endowment
contract). an annuit;y plan described in Section 403(a) of the Internal Revenue Code.
a qualified trust described in Section 401 (a) of the Internal Revenue Code Section or
an annuit;y contract described in Section 403(1)) of the Internal Revenue Code.
(2) The election to receive the enhanced multiplier under this Section must be
made in writing on a form provided by the Cit;y. Such election shall be irrevocable.
If an eligible participant does not elect the optional enhanced multiplier under this
Section. or if an eligible participant elects the enhanced multiplier for only a portion
of his total continuous service. then the benefit provided in paraw:aph (1) shall be
used to calculate the benefit for all continuous service to which the enhanced
multiplier does not apply.
(3) For the purpose of this subsection (C). an eligible participant is any plan
participant who is employed by the City on or after the effective date of this
ordinance. who has not entered the DROP. and who is not a member of a certified
bargaining unit. At such time as the Cit;y and the union representing participants in a
bargaining unit enter into a collective bargaining aw:eement that includes the optional
enhanced multiplier provided in this paraw:aph. such participants who otherwise
meet the eligj.bilit;y criteria shall become eligible participants for the purpose of this
subsection.
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.
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()rdinance ~o. 18-05
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r4-PASSE~ ADOPTED in regular session on second and final reading on this the
~ day of ~ , 2005.
~y~ 4.
ArrEST:
~_L~~ S).~\~
City Clerk
First Reading 3 \ \~ \ ()C)
Second Reading 4\ r:!., \ 'fD
4
()rdinance No. 18-05
1\
MEMORANDUM
SUBJECT:
MAYOR AND CITY COMMISSIONERS
CITY MANAGER ~
AGENDA ITEM # \ a c- - REGULAR MEETING OF APRIL 5, 2005
ORDINANCE NO. 18-05 (AMENDING CHAPTER 35. "EMPLOYEE
POLICIES AND BENEFITS")
TO:
FROM:
DATE:
APRIL 1, 2005
This ordinance is before Commission for second reading and public hearing to amend Chapter 35,
"Employee Policies and Benefits", subheading "Retirement Plan", Section 35.097, "Retirement
Income; Basis, Amount, and Payment", of the City Code of Ordinances to provide for an option of a
3% multiplier.
At the first reading on March 15,2005, the Commission passed Ordinance No. 18-05.
Recommend approval of Ordinance No. 18-05 on second and final reading.
S:\Clty Clerk\agenda memo Ord 18-05 General Employee Pension Plan 04 05 05
3/15/05
ORDINANCE NO. 18-05
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF DELRA Y BEACH, FLORIDA, AMENDING CHAPTER 35,
"EMPLOYEES POLICIES AND BENEFITS", SUBHEADING
"RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF
THE CITY OF DELRA Y BEACH, FLORIDA, BY AMENDING
SECTION 35.097, "RETIREMENT INCOME; BASIS,
AMOUNT, AND PAYMENT", TO PROVIDE FOR AN
OPTIONAL ENHANCED MULTIPLIER; PROVIDING A
GENERAL REPEALER CLAUSE; PROVIDING A VALIDITY
CLAUSE; AND PROVIDING AN EFFECTNE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRA Y
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 35.093, "Retirement Income; Basis, Amount and Payment", to read as
follows:
Sec. 35.097. RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT.
(A) Normal Retirement Income.
(1) Amount of Normal Retirement Income. The amount of retirement income
payable to a participant who retires on or after his normal retirement date shall be
an amount equal to two and one-half (2.5) percent of final monthly compensation
multiplied by credited service, expressed in years and tenths of a year, up to a
maximum of thirty (30) years. A participant who has attained the age of sixty (60)
and retires with five (5) or more years of credited service, but less than ten (10)
years of credited service, shall be entitled to monthly retirement income in an
amount equal to two and one-half (2.5) percent of final monthly compensation
multiplied by credited service expressed in years and tenths of a year, multiplied
by the participant's vested percentage as set forth in Section 35.091.
(2) Payment of Normal Retirement Income. The monthly retirement income
payable in the event of normal retirement will be payable on the first day of each
month. The first payment will be made effective on the participant's normal
retirement date (or on the first day of the month following actual retirement, if
later), and shall be continued thereafter during the participant's lifetime. Upon the
participant's death the same monthly benefit shall be continued to his or her
spouse for one year, and sixty (60) percent of that amount shall be continued to
the spouse thereafter until the earlier of the spouse's death or remarriage. The
normal form of benefit for a participant who is not married at the time of
retirement is a single life annuity. If a participant who is not married at the time of
retirement later marries, the spousal benefit provided in this paragraph shall not
apply unless the participant requests an actuarially adjusted benefit.
(B) Early Retirement and Retirement Income. Early retirement under the plan is
retirement from the service of the City prior to the participant's normal retirement date
but subsequent to: the attainment of age fifty-five (55) and the completion of fifteen (15)
years of credited service; or the completion of twenty (20) years of credited service,
regardless of age. Payment of early retirement income will be governed by the following
provisions of this Section:
(1) Early Retirement Date. The early retirement date will be the first day of the
month following the date a participant retires ITom the service of the City under
the provisions ofthis Section prior to his normal retirement date.
(2) Amount of Early Retirement Income. The monthly amount of early
retirement income payable to a participant shall equal the product of "a" and ''b''
where "a" is the number of years and tenths of a year of credited service at the
early retirement date multiplied by two and one-half (2.5) percent of final
monthly compensation; and "b" is the applicable actuarial reduction factor to take
into account the participant's younger age and the earlier commencement of
retirement income payments. The factor to be used in "b" above is equal to one
minus five-twelfths of one percent for each month that the early retirement date
precedes the normal retirement date.
(3) Payment of Early Retirement Income. The retirement income payable in
the event of early retirement will be payable on the first day of each month. The
first payment will be made effective on the participant's early retirement date and
shall be continued thereafter during the participant's lifetime. Upon the
participant's death the same monthly benefit shall be continued to his or her
spouse for one year, and sixty (60) percent of that amount shall be continued to
the spouse thereafter until the earlier of the spouse's death or remarriage.
(C) ODtional Enhanced Multiplier.
(1 ) Notwithstanding any nrovision of the plan to the contrarY. an elilrible
particinant mav elect a normal retirement benefit or earlv retirement benefit equal
to three percent (3%) of final monthly compensation multiplied by credited
service. exnressed in years and tenths of a year. un to a maximum of thirty (30)
years. Participants electing this enhanced multiplier shall thereafter contribute
three and forty-five one-hundredths nercent (3.45%) of earnings to the Plan in
addition to the participant contribution specified in Section 35.095. and shall
receive the enhanced multinlier for future periods of credited service only. Such
participants may also elect to nurchase the enhanced multiplier for some or all
periods of continuous service prior to the date of the election. by paving into the
2
Plan the full actuarial cost of the enhanced multiplier. plus the full cost of any
actuarial or other professional services required. Such payment may be made by
cash lump sum payment or by a direct rollover of an eligible rollover distribution
or a member contribution of an eligible rollover distribution from an individual
retirement account described in Section 408(a) of the Internal Revenue Code. an
individual retirement annuity described in Section 408(b) of the Internal Revenue
Code (other than an endowment contract). an annuity plan described in Section
403(a) of the Internal Revenue Code. a qualified trust described in Section 401(a)
of the Internal Revenue Code Section or an annuity contract described in Section
403(b) of the Internal Revenue Code.
(2) The election to receive the enhanced multiplier under this Section must be
made in writing on a fonn provided by the City. Such election shall be
irrevocable. If an eligible participant does not elect the optional enhanced
multiplier under this Section. or if an eligible participant elects the enhanced
multiplier for only a portion of his total continuous service. then the benefit
provided in paragraph (1) shall be used to calculate the benefit for all continuous
service to which the enhanced multiplier does not apply.
(3) For the puroose of this subseetion (C). an eligible participant is any plan
participant who is employed by the City on or after the effective date of this
ordinance. who has not entered the DROP. and who is not a member of a certified
bargaining unit. At such time as the City and the union ret>resenting participants
in a bargaining unit enter into a collective bargaining agreement that includes the
optional enhanced multiplier provided in this paragraph. such participants who
othelWise meet the eligibility criteria shall become eligible participants for the
purpose of this subsection.
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.
PASSED AND ADOPTED in regular session on second and final reading on this the
_ day of ,2005.
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ATTEST:
City Clerk
First Reading
Second Reading
4
MAYOR
..
4
[ITY DF DELRA' BEA[H
CITY ATTORNEY'S OFFICE
~()() '\\\ 1'1 -\VE'\ilT· DELRAY REACH. FLORIDA 33'+·H
II LEPHO'\l 561!~-!.;-'()l)I)· F'l.CSI\IILL 561/278-'+755
DELRAY BEACH
f LOR I D ...
DaI:III
All-America City
, 1111: DATE:
1993 TO:
2001
Writer's Direct Line: 561/243-7091
MEMORANDUM
March 8, 2005
City Commission
David Harden, City Manager
FROM:
Susan A. Ruby, City Attorney
SUBJECT:
General Employees Pension Plan Ordinance No. 18-05, Providing
for a 3% Multiplier Option
Ordinance No. 18-05 provides for an option of a 3% multiplier instead of a 2 %%
multiplier. The election to have a 3% multiplier is purely voluntary and may be
elected for past or future service. The payment for past service is to be made by a
person on an actuarial sound basis. Further, if a person elects a 3% multiplier
going forward, they must pay an additional 3.45% into the plan over and above the
current cost.
This ordinance applies to general employees who participate in the plan, except
that those general employees who are covered under a collective bargaining
agreement shall be eligible to participate if a collective bargaining agreement
provides for the benefit.
Please place this ordinance on the March 15, 2005 City Commission agenda.
~
Attachment
cc: Chevelle Nubin, City Clerk
Department Heads
James W. Linn, Esq.
\~
Kucmerowski, Carolanne
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Subject:
Ruby, Susan
Tuesday, March 15,200510:51 AM
Kucmerowski, Carolanne; Nubin, Chevelle; Harden, David
Levinson, Jon; Perlman, Jeff; McCarthy, Alberta; Archer, Patricia; Bob Costin (Business Fax);
Inglese. Cathy
FW: General Pension Ordinance - Revised
From:
Sent:
To:
Cc:
Importance:
High
~
Gen Ord Enhanced
Mutt 3-15-05....
I have received just this minute a revised ordinance 18-05 that is on tonight
for first reading. The revisions clarify that the enhanced multiplier applies to early
retirements as well as normal retirements and expressly provides that those in the Drop
plan are not eligible. Please place this substitute ordinance on the City Commission
agenda tonight. Thanks.
Susan A. Ruby
-----Original Message-----
From: Jim Linn [mailto:jlinn@llw-Iaw.com]
Sent: Tuesday, March IS, 2005 10:42 AM
To: Ruby, Susan
Subject: General Pension Ordinance - Revised
Susan - the revised ordinance, which applies the enhanced multiplier to early as well as
normal retirement is attached. Also - the eligibility language in paragraph (C) (3) has
been revised to state that the enhanced multiplier is available to current and future
employees who are not in the DROP. Please call me if you have any questions.
Jim
James W. Linn
Lewis, Longman & Walker, P.A.
Post Office Box 10788
Tallahassee, FL 32302
(850) 222-5702
(850) 224-9242 (Facsimile)
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PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE OR E-MAIL AND DELETE THIS MESSAGE. THANK YOU.
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26 Boca RatonJDekay Beach News - Thursday, March 241Fr1day. March 25. 2005 · www.bocanews.com
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LEGAL NOTICES t.:EGAL NOTICES
AN UHUINANI..;I: (k IHt CIIY COM-
MISSION Of THE CITY OF DElRAY
BEACH, R.ORIDA, AMENDING CHAP-
TER 35, "EMPlOYEES POLICIES AND
BfNERTS". SUIlHEAOING "RETIRE-
MENT PlAN", OFlHE CODE OF ORDI-
NANCES OF THE CI1Y OF DElRAY
BEACH, R.ORIDA. BY AMENDING
SECTION 35.og7. "RETIREMENT
INCOME; BASIS, AMOUNT, AND PAY-
MENT", TO PROVIDE FOR AN
OI'OONAL ENIWIŒD MUlTlI'I..IER,
PROVIDING A GENERAl REPEALfR
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ClAUSE. NIO PROVIDING AN EffEC-
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NI ORDINNIΠOf THE CI1Y COM-
MISSION OF THE CITY Of DElRAY
BEACH, R.ORIOA, AMENDING CffAP-
TEll 35. "EMPLoYEEs POI.ICtES AND
IIENEFITS". SUBHfAO NG "RETlRE-
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