Ord 10-13ORDINANCE NO. 10 -13
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 33,
"POLICE AND FIRE - RESCUE DEPARTMENTS "; AMENDING
SECTION 33.62, "BENEFIT AMOUNTS AND ELIGIBILITY";
AMENDING SECTION, "33.64, "CONTRIBUTIONS ";
PROVIDING A SAVING CLAUSE, A GENERAL REPEALER
CLAUSE, AND AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Chapter 33, "Police and Fire - Rescue Departments ", Section 33.62,
Benefit amounts and eligibility ", of the Code of Ordinances of the City of Delray Beach is
hereby amended to read as follows:
(B) Normal Retirement Benefit.
(3) Optional Enhanced Multiplier.
(a) Notwithstanding any provision of the System to the contrary, a member who is
actively employed by the City on March 15, 2004, but who is not participating in the deferred
retirement option plan (DROP), may elect a normal retirement benefit in the amount of three and
one -half (3.5) percent of average monthly earrings for each year of continuous service if the
member attains twenty (20) or more years of continuous service, subj ect to a maximum of
eighty -seven and one -half (87.5) percent of average monthly earnings. Members electing this
enhanced multiplier shall thereafter contribute three (3) percent of eaaxaings to the Trust Fund in
addition to the member contribution specified in Section 33.64(A), and shall receive the
enhanced multiplier for all periods of continuous service. An election under this subparagraph
must be on or before April 15, 2004.
(b) Notwithstanding any provision of the System to the contrary, a member who is
actively employed by the City on March 15, 2004, but does not elect the enhanced multiplier in
accordance with subparagraph (a), above, and who is not participating in the deferred retirement
option plan (DROP), may thereafter elect a normal retirement benefit in the amount of three and
one -half (3.5) percent of average monthly earnings for all future continuous service after making
such election if the member attains twenty (20) or more years of continuous service, subject to a
maximum of eighty -seven and one -half (87.5) percent of average monthly earnings. Members
electing this enhanced multiplier shall thereafter contribute three (3) percent of earnings to the
Trust Fund in addition to the member contribution specified in Section 33.64(A). Such member
ORD. NO. 10 -13
may also elect to purchase the enhanced multiplier for some or all periods of continuous service
prior to the date of the election, by paying the full actuarial cost of the enhanced multiplier, plus
the full cost of any actuarial or other professional services required.
(c) Notwithstanding any provision of the System to the contrary, a member who is hired
after March 15, 2004 and before April 9, 2013, and who is not participating in the deferred
retirement option plan (DROP) may elect a normal retirement benefit in the amount of three and
one -half (3.5) percent of average monthly earnings for all future continuous service after making
such election if the member attains twenty (20) or more years of continuous service, subject to a
maximum of eighty -seven and one -half (57.5) percent of average monthly earnings. Members
electing this enhanced multiplier shall thereafter contribute three (3) percent of earnings to the
Trust Fund in addition to the member contribution specified in Section 33.64(A). Such member
may also elect to purchase the enhanced multiplier for some or all periods of continuous service
prior to the date of the election, by paying the full actuarial cost of the enhanced multiplier, plus
the full cost of any actuarial or other professional services required. Members hired on or after
April 9, 2013 shall not be eligible for the optional enhanced multiplier provided in this paragraph
(d) The election to receive the enhanced multiplier under this paragraph must be made in
writing on a forin provided by the City. Such election shall be irrevocable. If an eligible member
does not elect an optional enhanced multiplier under this paragraph, or if an eligible member
elects the enhanced multiplier for only a portion of his total continuous service, then the benefit
provided iur paragraph (2) shall be used to calculate the benefit for all continuous service to
which the enhanced multiplier does not apply. If an eligible member elects the enhanced
multiplier and attains more than ten (10) but less than twenty (20) years of continuous service,
the member's benefit shall be determined in accordance with paragraph (2), and the member shall
receive a refund of all additional contributions and amounts paid for the enhanced multiplier,
without interest. In no event shall a member's total benefit be less than two (2) percent of average
monthly earnings for each year of continuous service.
Section 2. That Chapter 33, "Police and Fire - Rescue Departments ", Section 33.64,
"Contributions ", of the Code of Ordinances of the City of Delray Beach is hereby amended to
read as follows:
See. 33.64. - CONTRIBUTIONS.
(A) Member Contributions.
(1) Effective the first pay period after September 1, 1999, members of the retirement
system shall make regular contributions to the Trust Fund at a rate equal to three (3) percent
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 twenty -five (25) years of continuous service at which time member
contributions are no longer required.
2 ORD. NO. 10 -13
(2) Effective the first pay period starting after May 3, 2011, members of the retirement
system employed as firefighters shall make regular contributions to the Trust Fund at a rate
equal to six (6) percent 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 twenty -five (25) years of
continuous service at which time member contributions are no longer required.
(3) Effective the first pay period starting after October 4, 2011, members of the retirement
system employed as police officers shall make regular contributions to the Trust Fund at a
rate equal to six (6) percent 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 twenty -five (25) years of
continuous service at which time member contributions are no longer required.
(4) Notwithstanding any other provision of this section 34.64, members of the retirement
system hired on or after April 9, 2013 shall make regular contributions to the Trust Fund at
a rate equal to nine (9) percent 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 twenty -five (25) years of
continuous service at which time member contributions are no longer required.
f5) The City shall pick up the member contribution required by subsections (A)(1), (A)(2)1
and (A)(3) and (A)(4) above. The contributions so picked up shall be treated as employer
contributions 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 subdivision shall be treated for purposes of making a refined of member
contributions, and for all other purposes 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
subdivision. The intent of this subdivision is to comply with Section 414(h)(2) of the
Internal Revenue Code.
Section 3. 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 4. That all ordinances or parts of ordinances in conflict herewith be, and the
same are hereby repealed.
3 ORD. NO. 10 -13
Section 5. That this ordinance shall become effective i=ediately upon passage on
second and final reading.
PASSED AND ADOPTED in regular session on second and final reading on this the 4th
day of June, 2013.
AYOR
ATTEST:
.� :
City Clerk
First Reading r�, )z
Second Reading Tcc yl-f 4 F )"c 13
4 ORD. No. 10 -13
Coversheet
MEMORANDUM
TO: Mayor and City Commissioners
FROM: R. Brian Shutt, City Attorney
DATE: May 2, 2013
SUBJECT: AGENDA ITEM 11.A. - REGULAR COMMISSION MEETING OF MAY 7, 2013
ORDINANCE NO. 10 -13
ITEM BEFORE COMMISSION
Page 1 of 1
The item before the City Commission is Ordinance No. 10 -13 which provides for modifications to the
Police /Fire Pension Ordinance.
BACKGROUND
This Ordinance provides that persons hired as police officers or firefighters after April 9, 2013 would
not be eligible for the optional enhanced multiplier, where it would raise the pension multiplier from 3%
after 20 years to 3.5 %. The Ordinance also provides that the contribution rate for police officers and
firefighters, hired after April 9, 2013, shall be 9 %. Currently the contribution rate is 6% for those
employees who are not seeking the optional enhanced multiplier.
RECOMMENDATION
Approve Ordinance 10 -13.
http: // agendas. mydelraybeach .com /Bluesheet.aspx ?ItemID= 6756 &MeetingID =447 5/29/2013
ORDINANCE NO. 10 -13
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 33,
"POLICE AND FIRE - RESCUE DEPARTMENTS "; AMENDING
SECTION 33.62, `BENEFIT AMOUNTS AND ELIGIBILITY ";
AMENDING SECTION, "33.64, "CONTRIBUTIONS ";
PROVIDING A SAVING CLAUSE, A GENERAL REPEALER
CLAUSE, AND AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Chapter 33, "Police and Fire - Rescue Departments ", Section 33.62,
Benefit amounts and eligibility ", of the Code of Ordinances of the City of Delray Beach is
hereby amended to read as follows:
(B) Normal Retirement Benefit.
(3) Optional Enhanced Multiplier.
(a) Notwithstanding any provision of the System to the contrary, a member who is
actively employed by the City on March 15, 2004, but who is not participating in the deferred
retirement option plan (DROP), may elect a normal retirement benefit in the amount of three and
one -half (3.5) percent of average monthly earnings for each year of continuous service if the
member attains twenty (20) or more years of continuous service, subject to a maximum of
eighty -seven and one -half (87.5) percent of average monthly earnings. Members electing this
enhanced multiplier shall thereafter contribute three (3) percent of earnings to the Trust Fund in
addition to the member contribution specified in Section 33.64(A), and shall receive the
enhanced multiplier for all periods of continuous service. An election under this subparagraph
must be on or before April 15, 2004.
(b) Notwithstanding any provision of the System to the contrary, a member who is
actively employed by the City on March 15, 2004, but does not elect the enhanced multiplier in
accordance with subparagraph (a), above, and who is not participating in the deferred retirement
option plan (DROP), may thereafter elect a normal retirement benefit in the amount of three and
one -half (3.5) percent of average monthly earnings for all future continuous service after making
such election if the member attains twenty (20) or more years of continuous service, subject to a
maximum of eighty -seven and one -half (87.5) percent of average monthly earnings. Members
electing this enhanced multiplier shall thereafter contribute three (3) percent of earnings to the
I ORD. NO. 10 -13
Trust Fund in addition to the member contribution specified in Section 33.64(A). Such member
may also elect to purchase the enhanced multiplier for some or all periods of continuous service
prior to the date of the election, by paying the full actuarial cost of the enhanced multiplier, plus
the full cost of any actuarial or other professional services required.
(c) Notwithstanding any provision of the System to the contrary, a member who is hired
after March 15, 2004 and before April 9, 2013, and who is not participating in the deferred
retirement option plan (DROP) may elect a normal retirement benefit in the amount of three and
one -half (3.5) percent of average monthly earnings for all future continuous service after making
such election if the member attains twenty (20) or more years of continuous service, subject to a
maximum of eighty -seven and one -half (87.5) percent of average monthly earnings. Members
electing this enhanced multiplier shall thereafter contribute three (3) percent of earnings to the
Trust Fund in addition to the member contribution specified in Section 33.64(A). Such member
may also elect to purchase the enhanced multiplier for some or all periods of continuous service
prior to the date of the election, by paying the full actuarial cost of the enhanced multiplier, plus
the full cost of any actuarial or other professional services required. Members hired on or after
April 9, 2013 shall not be eligible for the optional enhanced multiplier provided in this paragraph
(d) The election to receive the enhanced multiplier under this paragraph must be made in
writing on a form provided by the City. Such election shall be irrevocable. If an eligible member
does not elect an optional enhanced multiplier under this paragraph, or if an eligible member
elects the enhanced multiplier for only a portion of his total continuous service, then the benefit
provided in paragraph (2) shall be used to calculate the benefit for all continuous service to
which the enhanced multiplier does not apply. If an eligible member elects the enhanced
multiplier and attains more than ten (10) but less than twenty (20) years of continuous service,
the member's benefit shall be determined in accordance with paragraph (2), and the member shall
receive a refund of all additional contributions and amounts paid for the enhanced multiplier,
without interest. In no event shall a member's total benefit be less than two (2) percent of average
monthly earnings for each year of continuous service.
Section 2. That Chapter 33, "Police and Fire - Rescue Departments ", Section 33.64,
"Contributions ", of the Code of Ordinances of the City of Delray Beach is hereby amended to
read as follows:
Sec. 33.64. - CONTRIBUTIONS.
(A) Member Contributions.
(1) Effective the first pay period after September 1, 1999, members of the retirement
system shall make regular contributions to the Trust Fund at a rate equal to three (3) percent
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 twenty -five (25) years of continuous service at which time member
2 ORD. NO. 10 -13
contributions are no longer required
(2) Effective the first pay period starting after May 3, 2011, members of the retirement
system employed as firefighters shall make regular contributions to the Trust Fund at a rate
equal to six (6) percent 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 twenty -five (25) years of
continuous service at which time member contributions are no longer required.
(3) Effective the first pay period starting after October 4, 2011, members of the retirement
system employed as police officers shall make regular contributions to the Trust Fund at a
rate equal to six (6) percent 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 twenty -five (25) years of
continuous service at which time member contributions are no longer required.
(4) Notwithstanding any other provision of this section 34.64, members of the retirement
system hired on or after April 9, 2013 shall make regular contributions to the Trust Fund at
a rate equal to nine (9) percent 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 twenty -five 25) years of
continuous service at which time member contributions are no longer required.
The City shall pick up the member contribution required by subsections (A)(1), (A)(2)z
(A)(3) and A)(4) above. The contributions so picked up shall be treated as employer
contributions 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 subdivision shall be treated for purposes of making a refund of member
contributions, and for all other purposes 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
subdivision. The intent of this subdivision is to comply with Section 414(h)(2) of the
Internal Revenue Code.
Section 3. 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 4. That all ordinances or parts of ordinances in conflict herewith be, and the
same are hereby repealed.
3 ORD. NO. 10 -13
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
_ day of , 2013.
MAYOR
ATTEST:
City Clerk
First Readi
Second Reading
4 ORD. NO. 10 -13
Coversheet
MEMORANDUM
TO: Mayor and City Commissioners
FROM: Louie Chapman, Jr., City Manager
DATE: May 13, 2013
SUBJECT: AGENDA ITEM 10.A. - REGULAR COMMISSION MEETING OF MAY 21, 2013
ORDINANCE NO. 10 -13
ITEM BEFORE COMMISSION
Page 1 of 1
This ordinance is before Commission for second reading for an ordinance amending Chapter 33, "Police
and Fire - Rescue Departments ", Section 33.62, `Benefit Amounts and Eligibility ", and Section 33.64,
"Contributions ".
BACKGROUND
At the first reading on May 7, 2013, the Commission passed Ordinance No. 10 -13.
RECOMMENDATION
Recommend approval of Ordinance No. 10 -13 on second and final reading.
http:// itwebapp / Agendalntranet /Bluesheet.aspx ?ItemID =6791 &MeetingID =449 5/29/2013
FOSTER & FOSTER
May 31, 2013
Ms. Anne Woods
City of Delray Beach
609 Homewood Boulevard
Delray Beach, FL 33445
Re: City of Delray Beach Police Officers' and
Firefighters' Retirement Plan
Dear Anne:
We have reviewed the recently proposed Ordinance 10 -13 amending the plan to render
members hired after April 9, 2013 ineligible for the optional enhanced multiplier and to
set the contribution rate for these members at 9% of pensionable compensation.
As the proposed changes pertain to members hired after the valuation date, the impact
of these changes is not currently measureable, and therefore does not result in an
immediate change to the Plan's funding requirements.
Because these proposed changes do not result in a change in the valuation results, it is
our opinion that a formal Actuarial Impact Statement is not required in support of their
adoption. However, since the Division of Retirement must be aware of the current
provisions of all public pension programs, we recommend that you send a copy of this
letter and a copy of the fully executed Ordinance to each of the following offices:
Mr. Keith Brinkman
Bureau of Local Retirement Systems
Division of Retirement
P. O. Box 9000
Tallahassee, FL 32315 -9000
If you have any questions, please let me know.
Sincerely,
Bradley R. Heinrichs, FSA, EA, MAAA
Patricia Shoemaker
Municipal Police and Fire
Pension Trust Funds
Division of Retirement
P.O. Box 3010
Tallahassee, FL 32315 -3010
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 (239) 433 -5500 • Fax (239) 481 -0634 • www.foster- foster.com
E20 PALMBEACHPOST.COM I REAL NEWS STARTS HERE THE PALM BEACH POST
(561) 820 -4343 1 SATURDAY, MAY 11, 2013
Legal Notices
CITY OF DELRAY BEACH, FLORIDA
NOTICE OF PUBLIC HEARING
A PUBLIC HEARING will be held on
the following proposed ordinance on
TUESDAY, MAY21, 2013 pt 1:00 p.m. or
at apy continuation of such meeting
which is set by the Commission, in
the Commission Chambers, 100 N.W.
1st Avenue, Delray Beach, Florida, at
which time the City Commission will
consider its adoption. The proposed
ordinance may be inspected at the
Office of the City Clerk at City Hall,
100 'N.W- 1st Avenue, Delray Beach,
Florida, between 8:00 a.m, and 5:00
p.m., Monday through Friday,, except
holidays. Interested parties are invited
to attend and be heard with respect to
the proposed ordinance.
'ORDINANCE NO. 10 -13
AN ORDINANCE OF THE CITY
COMMISSION OF THE CITY OF DELRAY
BEACH, FLORIDA, AMENDING
CHAPTER 33,. "POLICE AND FIRE -
RESCUE DEPARTMENTS;'. AMENDING
SECTION 33.62, "BENEFIT AMOUNTS
AND ELIGIBILITY "; AMENDING
SECTION, "33.64, "CONTRIBUTIONS';
PROVIDING A SAVING CLAUSE, A
GENERAL REPEALER CLAUSE, AND AN
EFFECTIVE DATE. -
Please be advised that if a person
decides to appeal any decision made
by the City Commission with respect to
any matter considered at this hearing;
such person may need to ensure
that a verbatim record includes the
testimony and evidence upon which
the appeal is to be based. The City
does not provide nor, prepare such
record pursuantto F.S. 266.0105,
.CITY OF DELRAY BEACH
Chevelle D. Nubin, MMC
City Clerk
PUB: The Palm Beach Post
5 -10, 5, -11 !2013 #85316 -