Ord 36-01ORDINANCE NO. 36-01
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 33,
"POLICE AND FIRE DEPARTMENTS", SUBHEADING
"PENSIONS", OF THE CODE OF ORDINANCES OF THE CITY
OF DELRAY BEACH, FLORIDA, BY AMENDING SECTION
33.685, "DEFERRED RETIREMENT OPTION PLAN";
AUTHORIZING THE PENSION BOARD TO SELECT A THIRD
PARTY ADMINISTRATOR TO PROVIDE A SELF-DIRECTED
INVESTMENT PROGRAM FOR DROP ACCOUNTS;
PROVIDING A VALIDITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. Subsection (E) of Section 33.685, "Deferred Rettrement Option Plan", is amended
to read:
(E) A Deferred Retirement Option Plan account shall be estabhshed for each employee
who elects to parttcipate m the Deferred Retirement Optton Plan in accordance with tins sectton.
During the period of the employee's pamcipation in the Deferred Retirement Opuon Plan, the
employee's normal renrement benefit, calculated in accordance with Sectton 33.6203) based on average
monthly earnings and continuous service as of the effective date of the employee's elecuon to
parttcipate m the Deferred Rettrement Option Plan, shall be paid into the employee's Deferred
Retirement Optton Plan account. The employee's Deferred Reurement Opuon Plan account shall be
invested by the Board of Trustees and crechted w~th interest equal to the overall net rate of return on
Retirement Fund assets during the period the employee parncipates m the Deferred Retirement Opuon
Plan. Effective July 1, 2001, the Board of Trustees, in its sole discretton, may select a third party
adrmmstrator and estabhsh a separate plan for DROP accounts to be invested by participating
employees in accordance with an agreement between the parncipating employee and the thtrd party
administrator. Employees who are parttcipatmg m the DROP as of July 1, 2001 may elect to
parttcipate ~n the self-chrected investment program. Employees who elect to paruc~pate m the
DROP after July 1, 2001 shall be required to paruc~pate m the self-chrected investment program as a
condiuon of parttc~patmg m the DROP. The Board of Trustees may adopt any necessary, rules to
administer the DROP m accordance w~th apphcable provisions of the Internal Revenue Code and
regulations adopted thereunder.
Sectton 2. That should any section or promsion of thts ordinance or any pomon thereof, any
paragraph, sentence or word be declared by a court of competent junschcuon to be invalid, such
decxsion shall not operate to invalidate the remainder hereof.
Section 3. That thss ordinance shall become effective ten (10) days after ~ts passage on second
and final reading.
(~__////~PASSED AND ADOPTED in regular session on second and final reading this /~ of ,2001.
MAYOR
Acung C~ty Clerk
First Reading
Second Reading
ORD. NO. 36-01
MEMORANDUM
TO:
FROM:
SUBJECT:
MAYOR AND CITY COMMISSIONERS
CITY MANAGER ~
AGENDA ITEM #
ORDINANCE NO. 36-01
DEPARTMENTS
DATE: JUNE 15, 2001
- REGULAR MEETING OF JUNE 19, 2001
(AMENDING CHAPTER 33 POLICE AND FIRE
This is second reading and public hearing for Ordinance No. 36-01 which amends Chapter 33,
"Police and Fire Departments" by amending Section 33.685 "Deferred Retirement Option Plan"
authorizing the Pension Board to select a third party administrator.
The Police and Fire Pension Board currently administers the Deferred Retirement Option Plan
(DROP) Account. The Board, however, is desirous of hiring a third party to administer the DROP
accounts to allow for more flexibility in investments. This will have no adverse effect on the City.
At the first reading, Commission unanimously approved this ordinance. Recommend approval of
Ordinance No. 36-01 on second and final reading.
Ref.Agmemo21.Ord 36-01PohceFlrePensxonPlan 06.19 01
CITY OF DELRrlY BEI:II:H
CiTY ATTORNEY'S OFFICE ~oo ,~w ,~, ^v,~,,,~. ,~,~,~,,^¥ ,,~^~., ,~,~o,,,~,^ ..4
TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755
1993
DATE:
TO:
FROM:
SUBJECT:
Writer's D~rect L~ne' 561/243-7091
MEMORANDUM
May 23, 2001
City Commission
Susan A. Ruby, City Attorney
Ordinance No. 36-01 - Police/Fire Pension Plan
The Chairman of the Police and Fire Pension Board, Bill Adams, has requested that the
attached ordinance be considered by the City.
The Police and Fire Pension Board currently administers the Deferred Retirement Option
Plan (DROP) Accounts. The Board, however, is desirous of hiring a third party to
administer the DROP accounts.
By copy to David Harden, City Manager, please place this ordinance on the June 5, 2001
ion_~agenda for City Commission consideration.
SAR:ci
Attachment
CC:
David Harden, City Manager
Barbara Garito, Acting City Clerk
Joe Safford, Finance Director
Bill Adams, Chairman, Police and Fire Pension Board
Steve Cypen, Esq.
James W. Linn, Esq.
POLICE AND
Board of Trustees
CITY OF DELRAY BEACH
FIREFIGHTERS RETIREMENT
I OO N. W. lst Avenue
Delray Beach, Florida 33444
SYSTEM
February 26, 2001
Dear Mr. Harden:
As you know, the pension ordinance for the Police and Firefighters Retkement
System contains provisions for a DROP. According to the present wording in the
ordinance, the only investment vehicle for the DROP participants is the pension fund
itself. At the February meeting of the Pension Board, a motion was passed directing me
to request that the City consider amending the ordinance to change the investment vehicle
used for the DROP participants.
The Board recommends that a third party administrator who offers a selection of
mutual funds in various asset classes be utilized. The General Employees Retirement
Plan presently offers this option. Our intent is that participants presently in the DROP
would be given the option of converting to the third party administrator or leaving their
contributions in the pension fund. However, new participants in the DROP would be
required to invest their contributions in the mutual funds offered by the third party
administrator.
This change would offer advantages to the City as well as to the participants. It
would reduce the work-load of the Finance Department, because they would no longer
have to supervise the calculation of investment returns for DROP participants. For the
participants it offers a variety of investment options to meet their individual retirement
needs.
The Board has had preliminary discussions with two possible vendors who offer
this service, ICMA, and Gabriel, Roeder, Smith. The ICMA representative has been
asked to attend the March meeting to answer additional concerns and issues that members
have raised.
Would you please give this request your consideration? If you feel that an
ordinance change is desirable, the board would appreciate the opportunity to have input
in its construction. Please feel fi-ee to contact me if you need additional information.
Sincerely,
Bill Adams, Chairman
ORDINANCE NO. 36-01
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORDA, AMENDING CHAPTER 33, "POLICE AND
FIRE DEPARTMENTS", SUBHEADING "PENSIONS", OF THE CODE OF
ORDINANCES OF THE CITY OF DELRAY BEACH, FLORDA, BY
AMENDING SECTION 33.685, "DEFERRED RETIREMENT OPTION
PLAN"; AUTHORIZING THE PENSION BOARD TO SELECT A THIRD
PARTY ADMINISTRATOR TO PROVIDE A SELF-DIRECTED
INVESTMENT PROGRAM FOR DROP ACCOUNTS; PROVIDING A
VALDITY CLAUSE; AND PROVIDING AN EFFECTWE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. Subsection (E) of Section 33.685, "Deferred Retirement Option Plan", is amended to read:
(E) A Deferred Retirement Option Plan account shall be established for each
employee who elects to participate in the Deferred Retirement Option Plan in accordance with this section.
During the period of the employee's participation in the Deferred Retirement Option Plan, the employee's
normal retirement benefit, calculated in accordance with Section 33.62(B) based on average monthly earnings
and continuous service as of the effective date of the employee's election to participate in the Deferred
Retirement Option Plan, shall be paid into the employee's Deferred Retirement Option Plan account. The
employee's Deferred Retirement Option Plan account shall be invested by the Board of Trustees and credited
with interest equal to the overall net rate of return on Retirement Fund assets during the period the employee
participates in the Deferred Retirement Option Plan. Effective July 1, 2001, the Board of Trustees, in its sole
discretion, may select a third party administrator and establish a separate plan for DROP accounts to be
invested by participating employees in accordance with an agreement between the participating employee
and the third party administrator. Employees who are participating in the DROP as of July 1, 2001 may
elect ..t..q participate in the self-directed investment program. Employees who elect to participate in the
DROP after July 1, 2001 shall be required to participate in the self-directed investment pro,am as a
condition of participating in the DROP. The Board of Trustees may adopt any necessary rules to
administer the DROP in accordance with applicable provisions of the Internal Revenue Code and
regulations adopted thereunder.
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 ten (10) days after its passage on second and
final reading.
PASSED AND ADOPTED in regular session on second and final reading this
,2001.
of
MAYOR
ATTEST:
City Clerk
First Reading
Second Reading
ORD. NO. 36-01
[IT¥ 0[: DELRI:T BEFIEH
CITY ATTORNEY'S OFFICE
1993 DATE: May 23, 2001
TO:
FROM:
SUBJECT:
200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444
TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755
Writer's Direct Line: 561/243-7091
MEMORANDUM
City Commission
Susan A. Ruby, City Attorney
Ordinance No. 36-01 - Police/Fire Pension Plan
The Chairman of the Police and Fire Pension Board, Bill Adams, has requested that the
attached ordinance be considered by the City.
The Police and Fire Pension Board currently administers the Deferred Retirement Option
Plan (DROP) Accounts. The Board, however, is desirous of hiring a third party to
administer the DROP accounts.
By copy to David Harden, City Manager, please place this ordinance on the June 5, 2001
genda for City Commission consideration.
SAR:ci
Attachment
CC:
David Harden, City Manager
Barbara Garito, Acting City Clerk
Joe Safford, Finance Director
Bill Adams, Chairman, Police and Fire Pension Board
Steve Cypen, Esq.
James W. Linn, Esq.
POLICE AND
Board of Trustees
CITY OF DELRAY BEACH
FIREFIGHTERS BETIREMENT
IOO N. W. lstAvenue
Delray Beach, Florida 33444
SYSTEM
February 26, 2001
Dear Mr. Harden:
As you know, the pension ordinance for the Police and Firefighters Retirement
System contains provisions for a DROP. According to the present wording in the
ordinance, the only investment vehicle for the DROP participants is the pension fund
itself. At the February meeting of the Pension Board, a motion was passed directing me
to request that the City consider amending the ordinance to change the investment vehicle
used for the DROP participants.
The Board recommends that a third party administrator who offers a selection of
mutual funds in various asset classes be utilized. The General Employees Retirement
Plan presently offers this option. Our intent is that participants presently in the DROP
would be given the option of converting to the third party administrator or leaving their
contributions in the pension fund. However, new participants in the DROP would be
required to invest their contributions in the mutual funds offered by the third party
administrator.
This change would offer advantages to the City as well as to the participants. It
would reduce the work-load of the Finance Department, because they would no longer
have to supervise the calculation of investment returns for DROP participants. For the
participants it offers a variety of investment options to meet their individual retirement
needs.
The Board has had preliminary discussions with two possible vendors who offer
this service, ICMA, and Gabriel, Roeder, Smith. The ICMA representative has been
asked to attend the March meeting to answer additional concerns and issues that members
have raised.
Would you please give this request your consideration? If you feel that an
ordinance change is desirable, the board would appreciate the opportunity to have input
in its construction. Please feel free to contact me if you need additional information.
Sincerely,
Bill Adams, Chairman
ORDINANCE NO. 36-01
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AM. ENDING CHAPTER 33, "POLICE AND
FIRE DEPARTMENTS", SUBHEADING "PENSIONS", OF THE CODE OF
ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY
AMENDING SECTION 33.685, "DEFERRED RETIREMENT OPTION
PLAN"; AUTHORIZING THE PENSION BOARD TO SELECT A THIRD
PARTY ADMINISTRATOR TO PROVIDE A SELF-DIRECTED
INVESTMENT PROGRAM FOR DROP ACCOUNTS; PROVIDING A
VALIDITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
DELKAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. Subsection (E) of Section 33.685, "Deferred Retirement Option Plan", is mended to read:
(E) A Deferred Retirement Option Plan account shall be established for each
employee who elects to participate in the Deferred Retirement Option Plan in accordance with this section.
During the period of the employee's participation in the Deferred Retirement Option Plan, the employee's
normal retirement benefit, calculated in accordance with Section 33.62(B) based on average monthly earnings
and continuous service as of the effective date of the employee's election to participate in the Deferred
Retirement option Plan, shall be paid into the employee's Deferred Retirement Option Plan account. The
employee's Deferred Retirement Option Plan account shall be invested by the Board of Trustees and credited
with interest equal to the overall net rate of remm on Retirement Fund assets during the per/od the employee
participates in the Deferred Retirement Option Plan. Effective July 1, 2001, the Board of Trustees, in its sole
discretion, may selec(a third party administrator and establish a separate plan for DROP accounts to be
invested by participating employees in accordance with an agreement between the participating employee
and the third party administrator. Employees who are participating in the DROP as of July !, 2001 may
elect tO participate in the self-directed investment program. Employees who elect to participate in the
DROP after July 1, 2001 shall be required to participate in the self-directed investment program as a
condition of participati.ng in the DROP. The Board of Trustees may .adopt any necessary rules to
administer the DROP in accordance with applicable provisions of the Internal Revenue Code and
regulations adopted thereunder.
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 ten (10) days after its passage on second and
final reading.
PASSED AND ADOPTED in regular session on second and final reading this
,2001.
of
ATTEST:
MAYOR
City Clerk
First Reading
Second Reading
ORD. NO. 36-01
MyRodda.com
www MyFIorida.com
· ~ Division of Retirement
.Municipal Police Offcers' and Firefighters'
Retirement Trust Funds Office
D£PARTML~NT OF MANAGEML=NT Post Office Box 3010
Tallahassee, FL 32315-3010
SERVICES
Fax: 850-921-2161
JEB BUSH, GOVI~RNOR
CYNTHIA A HENDERSON, SECRETARY.
August 30, 2001
Chief William S. Adams, Chairman
Delray Beach Police Officers' & Firefighters' Pension Fund
501 West Atlantic Avenue
Delray Beach, Florida 33444
Dear Chief Adams:
This is to acknowledge receipt of final ordinances #16-01, g36-01 and g44-01, for the Delray Beach Police and
Firefighter Retirement Plan.
We would like to invite the board members and others involved in the administration of your plan to the
Division's 33~ Annual Police Officers' and Firefighters' Pension Conference on October 24, 25 & 26, 2001. It will
be held at the Sheraton Safari Hotel in Orlando. The first'~lay is designed for new u-ustees and the next two days
represent the regular program. This program is offered as a public service by the Division of Retirement to help
keep the Board members, plan participants and others involved in the administration of the plans up to date on
issues and concerns specific to the Chapters 175 and 185 pension plans. Check out our website at
www.frs.state.fl.us/frs/mpf to find a copy of the Conference program and reservation information.
Thank you for your cooperation and assistance in this matter. If you have any questions, please contact our office
at (850) 922-0667.
Sincerely,
Patficia F. Shoemaker
Benefits Administrator
Municipal Police Officers' and
Firefighters' Retirement Trust Funds
PFS/mjm
CC:
v/Barbara Garito, City Clerk
Susan A. Ruby, City Attorney
Stephen H. Cypen, Plan Attorney
J. Stephen Palmquist, Plan Actuary
Charles Slavin, Actuary, Division of Retirement
RECEIVED
CffY CLERK