67-84 ORDINANCE NO. 67-84
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY
BEACH, FLORIDA, AMENDING CHAPTER 18, "PENSION AND
RETIREMENT", OF THE CODE OF ORDINANCES OF THE CITY OF
DELRAY BEACH, FLORIDA, BY AMENDING ARTICLE IV,
"PENSIONS FOR GENERAL EMPLOYEES," DIVISION 2, "ELIGIBIL-
ITY; PARTICIPATION; SERVICE", SECTION 18-79, "ELIGIBILITY;
PARTICIPATION", TO ELIMINATE MAXIMUM AGE RESTRICTIONS
FOR ELIGIBILITY; BY AMENDING SECTION 18-80, "SERVICE", TO
ALLOW SERVICE CREDIT FOR PARTICIPATION AT ANY AGE; BY
AMENDING SECTION 18-89., "CREDITED SERVICE", TO ALLOW
REPAYMENT UNDER CERTAIN CIRCUMSTANCE; BY ENACTING A
NEW SECTION 18-83, "ACTUARIAL EQUIVALENCE", TO DEFINE
ACTUARIAL EQUIVALENCE; BY AMENDING DIVISION 3, "MISCEL-
LANEOUS PROVISION REGARDING THE PLAN", SECTION 18-93,
"PARTICIPANT'S CONTRIBUTION ACCOUNT", TO ALLOW CONTRI-
BUTIONS FOR PARTICIPATION AT ANY AGE; BY AMENDING
DIVISION 4, "BASIS, AMOUNT AND PAYMENT OF RETIREMENT
INCOME", TO COUNT SALARY EARNED FOR PARTICIPATION AT
ANY AGE; BY AMENDING SECTION 18-110, "NORMAL RETIREMENT
AND RETIREMENT INCOME", TO REFLECT CREDITED SERVICE
AFTER AGE 60; BY AMENDING SECTION 18-111, "EARLY RETIRE-
MENT AND RETIREMENT INCOME", TO INTRODUCE NEW EARLY
RETIREMENT FACTORS; BY AMENDING SECTION 18-113(A),
"BENEFIT ON TERMINATION OF SERVICE AND ON DEATH AFTER
TERMINATION OF SERVICE", TO CHANGE METHOD OF CALCU-
LATION OF VESTING BENEFIT; BY AMENDING SECTION 18-115,
"LUMP-SUM PAYMENT OF SMALL RETIREMENT INCOME", TO
RECOGNIZE NEW DEFINITION OF ACTUARIAL EQUIVALENCE;
PROVIDING A SAVING CLAUSE; PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Delray Beach, Florida, deems it to
be in the best interests of the current and future members of the general employees'
pension plan to eliminate any possibility of age and/or sex discrimination, to allow a
buy back of service for previously excluded and reemployed employees, and make other
miscellaneous changes.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Section 18-79, "Eligibility; participation", of the Code of
Ordinances of the City of Delray Beach, Florida, is hereby amended to read as follows:
Sec. 18-79. Eligibility; participation.
The word "employee" as used herein means any person in the regular full-time
service of the city; provided, however, that such term shall not include city council
members, the city attorney (and assistants), judge, prosecutor (and assistants) or any
person employed for a temporary period or for a temporary job, or whose customary
employment is for less than twenty (20) hours in any one week or for less than five (5)
months in any one calendar year. Also those firemen and policemen employed by the
city who a~e participants in retirement plans as provided for in Chapters 175 and 185 of
the Florida Statutes or other applicable city ordinances shall not become participants in
the plan. The pronouns "he", "him", and "his", used in this plan, shall also refer to
similar pronouns of the feminine gender unless otherwise qualified by the context.
The date on which each such employee will become a participant in the plan shall
be:
(a) April 23, 1974, for each employee who was a participant in the superseded
plan as of April 22, 1974;
(b) April 23, 1974, for each other employee, excluding those hired after
January 1, 1965 but prior to April 23, 1974 whose attained a~e at hire was
sixty (60) or over, WhO was not a participant in the superseded plan but who
has completed one year of credited service as of such date; pt'e~ded-,--hew-
eve~, - -a~y'- l~.~m~- -em~le~.~l- -by- -~e- -e~- -a~t~.- -~am~ a~ -1~ - -1-966-,- -bu+ - p~Ier - ,e
(c) The date after April 22, 1974, as of which each other employee~
those hired on Or after April 23,. 1974 but prior to the adoption
Ordinance by the city council whose attained a{~e at hire was fifty-five (55)
or over, has completed one year of credited service;
(d) The ben. inning of the first ~.a¥ period commencing after the date of adoption
of this Ordinance by the c~ty counCil 'for each employee who had t~e~n ~re'-"
viously excluded from' the plan due to being over the' 'stated maximum
participation age at ~re.
Each such employee who meets the eligibility requirements as set forth above shall,
as a condition of continued employment, make contributions to the plan as required by
section 18-93 hereof, and shall become a participant in the plan and will be subject to
all other provisions in the plan beginning on such date.
Any employee who is absent from the active service of the city on the effective
date of the plan by reason of absence granted by the city, or by reason of compulsory
military service, will become a participant hereunder as of the date of his return to
active employment.
Each participant will be retired under the plan and entitled to a retirement income
upon retirement from service with the city by reason of his age, subiect to any mini-
mum service requirements herein. Each such participant whose employment is termi-
nated because of mental or physical disability in accordance with section 18-112 shall be
entitled to disability benefits. Upon the death of a participant, his beneficiaries will be
entitled to death benefits as prescribed in section 18-113 hereof. Any participant
whose service is terminated for any reason other than retirement, disability retirement
or death will be entitled to benefits upon termination of service as provided in section
18-113 hereof.
Section 2. That Section 18-80, "Service", of the Code of Ordinances of the
City of Deiray Beach, Florida, is hereby amended to read as follows:
Sec. 18-80. Service.
The term "service" means that period of continuous, uninterrupted employment
with the city from the employee's or participant's last date of employment, .subiect to
reemployment credits described in section 18-82(c), to the--ea~Her--~f the date of
termination of his service a~d-'~ri~--t~"twa~-retit'ement-ds~e-et'-~-t-e~it'eme~-~l~t~,
~,t~-ie--~t~pHe~ble~, as herein described. Any absence from the active service of
the city, including but not limited to absences by reason of discharge or resignation,
which is not deemed a leave of absence as defined in section 18-81 hereof, will be
considered a termination of service.
Section 3. That Section 18-82, "Credited service', of the Code of Ordinances
of the City of Delray Beach, Florida, is hereby amended to read as follows:
Sec. 18-82. Credited service.
(a) The credited service of each employee or participant will be the total period
of his service as defined in section 16-80 hereof, in completed months, from
his last date of employment, sublect to reemployment credits described .bel°w.
in subsection (c) until his date of termination of employment
2 ORD. NO. 67-84
st~,~p-tq~t-4~lt*thd~,-~f-~lqte~, except as provided in section 18-79 and t~lte
f~le~~~ph subsection (b) below.
(b) The period of any absence of thirty-one (31) days or more will be excluded
from an employee*s or a participant's credited service unless he receives
regular compensation from the city during such absence and except as other-
wise provided below. Any absence of thirty (30) days or less will be
included. The first two (2) years of any absence after the effective date of
the plan due to the employee's or participant's engagement in military service
will be included in his credited service if such absence is covered by a leave
of absence granted by the city or is by reason of compulsory military.
service. An employee or a participant who was absent prior to the effective
date of the plan because of his engagement in military service will be credited
for the full period of such absence if such absence was covered by a leave of-
absence granted by the city or was by reason of compulsory military service,
provided such period would otherwise have been included as credited service
if the employee or participant had been in the active service of the city.
(c) Former plan participants who are reemployed by the city as eligible employees
will be considered new employees with credited service, for all purposes .cal-
culated as such unless the former participants elect to pay back to the plan
the amount of any previous distribution received from the plan plus {nterest.
The amount of interest recAuired will be, calculated based upon .a seven, per-'cent
(7%)per annum rate. for thepereriod from date of original distribution to the
date of repya ment. Former plan participants who elect to repay this amount.
will be ~ranted the credited service awarded prior to their previous termina-
tion of service.
(d) Eligible employees who had previously been excluded from. plan participation
due to bein~ over the maximum stated allowable a~e at hire and who shall
become participants as of the date of ado~.tion of this Ordinance by the 'city
council will be considered new employees 'with credited servi~e' for all pur-
poses except determinin~ their normal retirement date calculated as if they.
were new employees as of their date of p~rticipation un[ess these new partici"
pants elect to p.ya to the plan an amount which ...represents the em~l.oyee._
contributions they would have made to the plan had they always been eligible,
plus interest. The amount of interest required will be calchlated based
a 7% per annum rate for the period from what would 'have been their prewous
eligibility date to the date of repayment. Those new participants who elect to
make th{s payment will be ~ranted credited service ~nd~ t[x~ Plan from thei~
date of hire. All of the new participants will receive credited service for the
purpose of determining their normal retirement date whether or not the
optional payment is made.
(e) The repayment of a previous distribution plus interest under subsection (c)
above or the payment of employee contributions plus interest under subsection
(d) above will be payable in'a lump sum within ninety (90) days after
reemployment or after the date of adoption of thtg Ordinance b'¥ the city
council, if later. However, ~ersons who are'employ'ecs of the cit~ as of the
date of adoption of this Ordinance by the city council ma), elect to pay the
amount required in installments. If t]xis option is used, one thousand dollars
($1,000) w~ll be due within ninety (90) days of the date of adoption of this
Ordinance b~ the [cit~ council with subsecluent payments of'"'the lesser of one
thousand dollars ($1,000) or the balance due ~a~rable.. ever~ three (3) months
after, the initial pa~nent. If. an. y t e of benefit p yma ent under the ~lan
begins prior to the full ayment o~eem lo ee contributions or a rev~ous
distribution plus interest, the outstandin~ balance will be deducted ~r~m the
benefit payments due.
Section 4. That a new Section 18-83, "Actuarial equivalence", of the Code of
Ordinances of the City of Delray Beach, Florida, is hereby enacted to read as follows:
ORD. NO, 67-84
Sec. 18-83. Actuarial equivalence.
The term "actuarial (actuarially) equivalence (equivalent)" means equality in value
of the aggregate amounts expected to be received under different forms of payment.
Actuarial equivalent amounts under the plan will be determined herein utilizing the 1951
Group Annuity Mortality Table projected by Scale C to 1965 with interest at seven
percent (7.00%), where the participant's age shall be set back one (1) year and the
beneflciary's age should be set back four (4) years regardless of the actual sex of such
individuals. However, in the event of plan termination, actuarial equivalence will be
based upon the interest and mortality assumptions prescribed by the Pension Benefit
Guaranty Corporation for plan terminations in effect on the actual date of plan termina-
tion.
Section 5. That Section 18-93, "Participant's contribution account", of the
Code of Ordinances of the City of Delray Beach, Florida, is hereby amended to read as
follows:
Sec. 18-93. Participant's contribution account.
The "participant's contribution account" will consist of mandatory participant
contributions.
Each participant will contribute toward the cost of the plan an amount equal to
three percent (3%) of the first four thousand eight hundred dollars ($4,800.00) of his
basic annual compensation as defined in section 18-109 and six percent (6%) of his basic
annual compensation in excess of four thousand eight hundred dollars ($4,800.00) until
the beginning of the first pay period after the adoption of this article by the city
council. Beginning with the first pay period after the adoption of this article each
participant will contribute toward the cost of the plan an amount equal to six percent
(6%) of his basic compensation as defined in section 18-109.
Bach participant shall continue to contribute to the plan until the earliest to occur
of the following dates:
(a) Date the participant retires under the plan.
(b) Date of death of the participant.
(c) Date of termination of the participant's service with the city.
seett~n- ~~.
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
terminated participant (as defined in section 18-113) elects to withdraw his contributions
prior to his normal retirement date, he will be entitled only to the return of his contri-
butions in lieu of all other benefits payable under the plan. Contributions cannot be
withdrawn while a participant remains in the service of the city or after the payment of
benefits under the plan has commenced.
Section 6. That Section 18-109, "Basis of retirement income", of the Code of
Ordinances of the City of Delray Beach, Florida, is hereby amended to read as follows:
Sec. 18-109. Basis of retirement income.
The monthly retirement income payable on retirement will be based on the partici-
pant's final monthly compensation and on his credited service.
4 ORD. NO. 67-84
The term "final mnnthly compensation" means the participant's average monthly rate
of compensation from the city for the twenty-four (24) successive months out of the one
hundred twenty (120) months next preceding t~he-~-o4--~) the date on which his
service with the city terminates for any
~s~mml--~etb-eme~t-~ia~,--~f--t~t~t% which give the highest average monthly rate of
compensation for the participant.
The participant's average monthly rate of compensation will be determined by
dividing the total basic compensation received by him during such twenty-four (24)
month period by the number of months for which he received compensation from the city
in such twenty-four (24) month period. The number of months for which he received.
compensation from the c!t-' will be computed, to the extent he was paid on other than a
monthly basis, by determining the number of pay periods ending within such
twenty-four (24) months for which he received compensation from the city, and'
converting such pay periods into months by dividing the number thereof, if weekly, by
four and one-third (4-1/3)), if biweekly, by two and one-sixth (2-1/6), and if semi-
monthly, by two (2).
In computing "final monthly compensation" for a participant who has returned to
the active service of the city following a leave of absence granted by the city during
which he did not receive regular compensation from the city, or following a period of
disability retirement or termination of service with a vested benefit, as described in
sections 18-112(h) and 18-113(A)(3) hereof, respectively, the period during which he
was on leave of absence, or during which he was on disability retirement, or during
which his service was terminated, shall be ignored, or excluded, in determining his
twenty-four (24) months preceding a subsequent date of termination of service or his
date of early, normal or extended retirement.
The term "basic compensation" means the compensation actually paid to a partici-
pant by the city, exclusive of overtime pay, commissions, bonuses, expense allowances
and all other extraordinary compensation.
Section 7. That Section 18-110, "Normal retirement and retirement income",
of the Code of Ordinances of the City of Delray Beach, Florida, is hereby amended to
read as follows:
Sec. 18-110. Normal retirement and retirement income.
Ngvrmad--t-et~~ .tt~tder- ~he- l~ait= ~s - reti~ement -Et'om- ~ h~- -set-'~ee- of- ~he- cf, t 3~ ~ ~ -or
a~e~r ~ -~erme~ -retfreme~ -el nee r - -f~ -sue~- ,~,-em~-,- -pay men*- ~f- ~-etfrem e~ - ½neeme- -~fl~ -b e
(a) Normal Retirement Date: The normal retirement date of each participant will
be the first day of the month coincident with, or next following, the date he
both attains the age of sixty (60) and completes ten (lO) years of credited
service; provided, however, that a participant may continue in the service of
the city beyond his normal retirement date and retire on an extended retire-
ment date as defined in paragraph (c) of this section.
(b) Amount of Normal Retirement Income: The monthly amount of retirement
income payable to a participant who retires on his normal retirement date shall
be an amount equal to the product of (a) and (b), where (a) is two and
one-half percent (2~%) of final monthly compensation; and (b) is years and
completed months of credited service, maximum of thirty (30) years.
(c) Extended Retirement Date: The extended retirement date of a participant will
be the first day of the next month past normal retirement date after actual
termination of service.
(d) Amount of Extended Retirement Income:
$ ORD. NO. 67-84
ered~led-seevlee. The monthly amount of retirement income payable to
such a participant who retires on his extended retirement date shall be
an amount equal to the product of (a) and' (b) where (a) is two and
one-half percent (23%) of final monthly compensation; and (b) is years
and completed months of credited service, maximum of thirty (30) such
years.
ae~u al- -eetHe emefl~ ~Let~,
reHremen~ -date ;- -Lf- ~te~.
(e) Payment of Retirement Income: The monthly retirement income payable in the
event of normal or extended retirement wiU be payable on the first day of
each month. The first payment will be made on the participant's normal or
extended retirement date (or on the first day of the month coincident with,
or next foliowing, his actual retirement, if later), and continued thereafter
during his lifetime; upon his death the full retirement benefit shall be con-
tinued to his spouse for one (1) year and sixty percent (60%) of said amount
continued thereafter until the earlier of death or remarriage.
Section 8. That Section 18-111, "F. arly retirement and retirement income", of
the Code of Ordinances of the City of Delray Beach, Florida, is hereby amended to
read as foliows:
Sec. 18-111. Early retirement and retirement income.
Barly retirement under the plan is retirement from the service of the city, with
the consent of the city, as of the first day of any month prior to the participant's
normal retirement date but subsequent to the date as of which he has both attained the
age of fifty-five (55) years and completed at least fifteen (15) years of credited service
or the completion of twenty (20) years of credited service, whichever is applicable.
the event of early retirement, payment of retirement income will be governed by the
following provisions of this section:
(a) Early retirement date: The early retirement date will be the first day of the
month coincident with or next following the date a participant retires from the
service of the city under the provisions of this section prior to his normal
retirement date.
(b) Amount *of retirement income: The monthly amount of retirement income
payable to a participant who retires prior to his normal retirement date under
the provisions of this section shall be an amount equal to the product of (a)
and (b), where (a) is an amount equal to his number of years of credited
service, maximum of thirty (30) such years, at his early retirement date
multiplied by two and one-half percent (2½%) of his final monthly compen-
sation, and (b) is the applicable actuarial reduction factor to take into
account the participant's younger age and the earlier commencement of retire-
ment income payments. The factor to be used in (b) above will be beoed-~
6 ORD. NO. 67-84
t~-~-~ ec~ual to one (1) minus five-twelfths (5/12) of one (1) percent for
each month that. ,the early retirement date precedes the normal retirement
date.
(c) Payment of 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 on the participant's early retirement date and continued
thereafter during his lifetime; upon his death the full retirement benefit shall
be continued to his spouse for one year and sixty percent (60%) of said
amount continued thereafter until the earlier of death or remarriage.
Section 9. That Section 18-113(A), "Benefit on termination of service and on
death after termination of service", ~f the Code of Ordinances of the City of Delray
Beach, Florida, is hereby amended to read as follows:
(A) Benefit on termination of service and on death after termination of service:
(1) In the event of the termination of a participant's service prior to normal
retirement date for any reason other than his death, early retirement with the
consent of the city as described in section 18-111 hereof, or disability retire-
ment as described in section 18-112 hereof, after he has completed ten (10)
years of credited service (such participant is hereinafter referred to as a
"terminated participant"), he will be entitled to a monthly retirement income
to commence on his normal retirement date, if he shall then be living, in an
amount which- - ea~- - ~--pee~/ded-- bT- -'~he- -s/v~le-s~m - -vahte- ~f- - h/~- ~te/eered
em~thi~-eet/re~-iew~we- ~n~n~ ~ ~i~ -e~qwa~ - r et/eee~ent - da~e - ~ithh--has
accrued to the date of termination of his servicev-aee~l~te~l--~t-in~erest-/eom
~he- ~lete--e~- termin~tio~ - ~f- -h/~- -,-~ee~/ee--t~- h/~ - e~-mal--~t-- dale. The
amount of such accrued deferred monthly retirement income shall be computed
as for normal retirement under section 1S-I10(b), based upon the terminated
participant's number of years of credited service and final monthly compen-
sation at the date of termination of his service.
(2) In the event a terminated participant dies prior to the commencement of his
retirement income at his normal retirement date (without having received, in
accordance with section 18-115, the value of the benefit in section
18-113(A)(1) above), his beneficiary (or beneficiaries) will receive the
monthly retirement income, payable for ten (10) years certain and life there-
after and beginning on the date of the participant's death, which can be
provided by the single-sum value of the participant's accrued deferred
monthly retirement income as of the date of termination of the participant's
service, accumulated at interest from the date of termination of the partici-
pant's service to the date of his death.
(3) If a participant's service with the city is terminated while he is entitled to
the retirement income described in section 18-113(A)(1) above and he subse-
quently reenters the service of the city, he will be entitled, upon such
reentry, to the credited service he had on the date of termination of his
service in lieu of the benefits to which he was entitled on such date under
section 18-113(A)(1); provided, however, that the monthly retirement income
payable to such participant commencing at normal retirement date shall not be
less than the amount to which he was entitled under section 18-113(A)(1)
prior to his reentry into the service of the city. Except as provided in
section 18-112 hereof with respect to disability retirement, any other partici-
pant will, on reentry into the service of the city (unless he has been on
leave of absence pursuant to the provisions of section 18-81 hereof), be
treated as if he then first entered the service of the city, except as indicated
in section 18-82(c).
(4) The provisions of section 18-114 hereof relating to optional forms of retire-
ment income are applicable to the benefits provided under section
18-113(A) (1) hereof.
7 ORD. NO. 67-84
(5) Except as provided in section 18-110 with respect to normal retirement,
section 18-112 with respect to disability retirement and section 18-113 with
respect to death, the participant whose service is terminated prior to the date
as of which he has completed at least ten (10) years of credited service shall
be entitled only to the return of his contributions without interest.
Section 10. That Section 18-115, "Lump-sum payment of small retirement
income", of the Code of Ordinances of the City of Delray Beach, Florida, is hereby
amended to read as follows:
Sec. 18-115. Lump-sum payment of small retirement income.
Notwithstanding any provisions of the plan to the contrary, if the monthly retire-
ment income payable to any person entitled to any benefit hereunder is less than fifty
dollars ($50.00) as of the date of his retirement or termination of service, whichever is
applicable, the committee may, in the exercise of its discretion, specify that the
actuarial equivalent of such retirement income be paid in a lump sum or in monthly
installments for a period certain of not more than sixty (60) months;-~-l~-~aat-iel
eqtetvale~tt -re-be- ~-upe~- -t4~e- -merteli~y- aw~ -ii, tercel- aeSaml~tteme- -t,sed- as- a- 4~ls- ~o~
Section 11. 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 12. 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 on this
the 25th day of September , 1984.
ATTEST:
}~. City Clerk '
First Reading August 28, 1984
Second Reading September 25, 19~4
8 ORD. NO. 67-84