Ord No. 45-17 i
ORDINANCE NO. 45-17
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35,
"EMPLOYEE POLICIES AND BENEFITS," SECTION 35.089,
"DEFINITIONS"; AMENDING SECTION 35.093, "CREDITED
SERVICE FOR FORMER EMPLOYEES AND EMPLOYEES
WHO WERE EXCLUDED FROM PARTICIPATION IN THE
PLAN"; AMENDING SECTION 35.094, "PURCHASE OF
ADDITIONAL CREDITED SERVICE FOR PRIOR MILITARY
OR GOVERNMENT EMPLOYMENT"; AMENDING SECTION
35.095, "CONTRIBUTIONS OF PARTICIPANT AND CITY";
AMENDING SECTION 35.096, "EXPENSES OF
ADMINISTRATION"; AMENDING SECTION 35.097,
"RETIREMENT INCOME; BASIS, AMOUNT, AND
PAYMENT"; AMENDING SECTION 35.101, "BENEFITS
NONASSIGNABLE'; AMENDING SECTION 35.102,
"BENEFITS PAYABLE TO MINORS AND INCOMPETENTS";
AMENDING SECTION 35.103, "ABANDONMENT OF
BENEFITS"; AMENDING SECTION 35.105,
"ADMINISTRATION BY RETIREMENT COMMITTEE",
AMENDING SECTION 35.1051, "CLAIMS PROCEDURE";
AMENDING SECTION 35.106, "TRUST FUND AND
TRUSTEE";AMENDING SECTION 35.108,"AMENDMENT OF
PLAN"; AMENDING SECTION 35.109, "TERMINATION OF
PLAN"; PROVIDING CONFLICT CLAUSE,A SEVERABILITY
CLAUSE, AND AUTHORITY TO CODIFY; PROVIDING AN
EFFECTIVE DATE AND FOR OTHER PURPOSES.
WHEREAS,the City of Delray Beach General Employees' Retirement Plan was adopted by
the City Commission to provide retirement benefits to general employees of the City; and
WHEREAS, the General Employees' Retirement Plan is a qualified plan under Section 401
of the U.S. Internal Revenue Code, and is also subject to Part VII, Chapter 112, Florida Statutes;
and;
WHEREAS,the General Employees' Retirement Plan has not been reviewed for compliance
with changes in the Internal Revenue Code, IRS regulations and state law for many years; and
WHEREAS, the City Attorney, in consultation with the Retirement Committee which
administers the General Employees' Retirement Plan, recently engaged legal counsel to review
the Retirement Plan and recommend changes to comply with the Internal Revenue Code, IRS
regulations and state law; and
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Ord.45-17
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WHEREAS, to implement the recommended changes, it is necessary to adopt an ordinance
amending several sections of the City Code.
f
NOW THEREFORE IT IS HEREBY ORDAINED BY THE CITY COMMISSION OF
THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", Section 35.089,"Definitions",
of the Code of Ordinances of the City of Delray Beach is hereby amended to read as follows:
Sec. 35.089. —Definitions.
Actuarial (actuarially) equivalence (equivalent). Equality in value of the aggregate amounts
expected to be received under different forms of payment. For the purpose of determining the
actuarial equivalent value
of an optional benefit form an interest rate of 7.25% per annum compounded annually shall be
utilized with the following mortality tables:
(a) For heathy lives a 50%/50%blend of the following tables:
1 Male — the RP-2000 mortality table for annuitants with mortality improvements
projected to all future years after 2000 using Scale BB 50%annuitant white collar/50%annuitant
blue collar.
2 Female - the RP-2000 mortality table for annuitants with mortality iMprovements
projected to all future years after 2000 using Scale BB 100% annuitant white collar.
(b) For disabled lives: a 50%/50%blend of the followingtas bles:
1 Male-the RP-2000 mortality table for disabled annuitants with a four year set-back and
no provision being made for future mortality improvements.
2.Female-the RP-2000 mortality table for disabled annuitants with a two year set-forward
and no provision being made for future mortality improvements.
the 1983 group amRity mortality table, blended for males and females, v4th intuest at seven (7)
baek f of (4) years fegaf gess of gorao, For the purpose of converting DROP account balances
to an equivalent lifetime annuity as required under Section 415 of the Internal Revenue Code,
"actuarial equivalent" shall mean a benefit amount of equal value based upon the applicable
mortality table as provided under Section 415 of the Internal Revenue Code and an interest rate of
five and one-half percent per annum. For other purposes of actuarial equivalent adjustments
required under Section 415 of the Internal Revenue Code the statutory basis shall be used as
applicable. ,
plan tem34nafiefts in effea,off the aetaal date of plan tefmiftation.
Basic compensation. The compensation actually paid to a participant by the City, including
participant contributions picked up by the City in accordance with Section 35.095(A)(1) of this
subchapter, and exclusive of overtime pay, Commissions, bonuses, expense allowances, and all
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Ord.45-17
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other extraordinary compensation. An employee's earnings compensation or salary contributed as
employee-elective salary reductions or deferrals to any salary reduction deferred compensation, '
or tax-sheltered annuityprogram authorized under the Internal Revenue Code shall also be deemed
to be compensation the employee would receive if he or she were not participating in such program
and shall be treated as compensation for retirement purposes For any person who first becomes a
participant in any plan year beginning on or after January 1 1996 compensation for any plan year
shall not include any amounts in excess of the Internal Revenue Code section 401(a)(17)limitation,
which limitation shall be adjusted as required by federal law for qualified government plans and
shall be further adjusted for changes in the cost of living in the manner provided by Internal
Revenue Code Section 401(a)(1 7)(al
Beginning January 1 2009 to the extent required by Internal Revenue Code section
414(u (12) an individual receiving differential wageTpayments, as defined under Internal Revenue
Code section 3401(h)(2) from an employer shall be treated as employed bXthe City, and the
differential wage payment shall be treated as compensation for purposes of applying the limits on
annual additions under Internal Revenue Code section 415(c). This provision shall be applied to
all similarly situated individuals in a reasonablyquivalent manner.
Beneficiary. The person(or persons) designated in writing by a participant and filed with the
board who is entitled to receive benefits hereunder upon the death of the participant. If no such
designation has been made in writing by the participant or if no designated beneficiary is living
at the time of the participant's death the beneficiary is the participant's estate.
City. The City of Delray Beach,Florida.
Credited service. The period of continuous City employment from the employee's most recent
date of hire to the date of termination of City employment up to a maximum of thirty (30) years,
except as otherwise provided in Section 35.093 or Section 35.094 of this subchapter, a
to time. Credited service shall include all periods of paid leave, and unpaid leave up to and
including thirty (30) days in any calendar year. Unpaid leave in excess of thirty (30) days in any
calendar year shall be excluded from credited service, except as otherwise required by the
Uniformed Services Employment and Reemployment Rights Act of 1994(USERRA),as amended
from time to time. The credited service of any meter participant whose City employment is
terminated by reason of the participant's death within thirty(3 0) days prior to attaining
five (5) years of credited service shall be deemed to include the period between the participant's
death and the date on which the participant Membr would have attained five (5) years
of credited service.
A participant shall receive credited service for all purposes, including vesting, for the years or
fractional parts of years that he or she performs "Qualified Military Service" including voluntary or
involunta*y service un the armed forces of the United States as defined under USERRA, after
separation from employment with the City,to perform training or service, provided that:
(a) The participant returns to employment with the City within one(t)year following the date of
military discharge or release from active service.
(b) The participant is entitled to reemployment under the provisions of USERRA,
(c) The participant pays to the plan the amount he or she would have contributed to the plan as
pick-up contributions if his or her employment would have continued during the period of
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absence due to Qualified Military Service. Such payment must be made by the earlier of a f
period equal to three(3)times the period of absence or five(5)years.
(d) The maximum credit for military service pursuant to this paragraph shall be five(5)years.
(e) This section is intended to satisfy the minimum requirements of USERRA, as may be
amended from time to time. To the extent that this section does not meet the minimum
requirements of USERRA the provisions of USERRA shall govern.
If a participant dies on or after January 1, 2007 while performing Qualified Military Service
as defined by USERRA the participant's beneficiaries shall be entitled to any benefits to which the
participant would have been entitled had he or she resumed employment and then died while
emp oy 1 ed.
Credited service shall also include, for purposes of vesting and determining eligibility for
normal retirement only, the years and completed months of a participant's sfull-time
employment with the City as a police officer or firefighter subsequent to membership in this plan.
Such service shall not be considered in determining the amount of a participant's
benefits under this plan.
Employee. Any regular full-time employee of the City, except as otherwise provided herein.
(1) The term "employee" shall not include: City Commissioners; the City Manager (and
assistants); the City Attorney (and assistants); department heads upon their written
election not to participate in the plan; former department heads who have elected not to
participate in the plan; any person not classified by the City as a regular, full-time
employee; any participant who retires and receives early or normal retirement benefits
under the plan, is subsequently re-employed by the City, and elects to continue receiving
retirement income during the period of employment pursuant to Section 35.090(E) of this
subchapter; and firefighters and police officers employed by the City who participate in
another retirement plan.
(2) Effective January 7, 2003, the term "employee" shall include the City Manager (and
assistants) upon their written election to participate in the plan; the City Attorney (and
assistants)upon their written election to participate in the plan; department heads; and the
Sustainability Officer/Public Information Officer who previously elected not to
participate in the plan, upon their written election to participate in the plan. Such written
election shall be irrevocable.
Employment. Regular, full-time employment as a City employee.
Final monthly compensation. For participants who retire or terminate employment with five
(5) or more years of credited service prior to October 6, 2010, final monthly compensation means
the total basic compensation received by a participant during the highest-paid twenty-four (24)
consecutive months of the one hundred twenty (120) months immediately preceding the
termination of employment, divided by twenty-four (24). For participants who are employed on
October 5, 2010, and who retire or terminate employment with five (5) or more years of credited
service on or. after October 6, 2010, final monthly compensation means the total basic
compensation received by a participant during the highest-paid thirty-six(3 6) consecutive months
of the one hundred twenty (120) months immediately preceding the termination of employment,
divided by thirty-six (36). Notwithstanding the preceding sentence, in no event shall the average
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final compensation of any participant who is employed on October 5, 2010 be less than the total
basic compensation received by the participant during the highest-paid twenty-four (24) '
consecutive months of the one hundred twenty (120) months immediately preceding October 5,
2010,divided by twenty-four(24).For participants hired onor after October 6,2010,final monthly
compensation means the highest paid sixty (60) consecutive months of the one hundred twenty
(120) months immediately preceding the termination of employment, divided by sixty (60). In
computing final monthly compensation for a participant who has returned to active City
employment following an approved leave of absence, disability retirement or termination of
employment with a vested benefit, the period of leave of absence, disability retirement, or
following termination of employment shall be ignored in determining the highest paid twenty-four
(24), thirty-six (36) or sixty (60) consecutive months, as applicable, of the one hundred twenty
(120)months immediately preceding the subsequent termination of employment.Notwithstanding
any other provision of this paragraph, the definition of final monthly compensation contained in
the first sentence of this paragraph shall continue to apply to participants who are employed in a
position included in a bargaining unit on October 5, 2010, until such time as changes to the
definition are implemented through the collective bargaining process.
Normal retirement date. For participants who retire or terminate employment with five (5) or
more years of credited service prior to October 6, 2010, and for participants who are employed on
October 5,2010,and within ten(10)years of attaining age sixty(60)or thirty(3 0)years of credited
service as of that date,normal retirement date means the first day of the month coincident with or
next following the date a participant attains the age of sixty (60) and completes ten (10) years of
credited service, or the date on which a participant attains thirty (30) years of credited service,
regardless of age, whichever occurs first. Effective October 6, 2010, for participants who are
employed on October 5, 2010, and not within ten (10) years of attaining age sixty (60) or thirty
(30) years of credited service as of that date, normal retirement date means the first day of the
month coincident with or next following the date a participant attains the age of sixty-two(62) and
completes ten (10) years of credited service, or the date on which a participant attains thirty (3 0)
years of credited service,regardless of age,whichever occurs first. The normal retirement date for
participants hired on or after October 6,2010, shall be the date a participant attains the age of sixty-
five (65) and completes ten (10) years of credited service. A participant who terminates
employment with five (5) or more years of credited service prior to October 6, 2010, does not
receive a return of participant contributions in accordance with Section 35.095(A), and is
subsequently reemployed in a position covered by this plan, shall be entitled to receive a benefit
in two (2) parts as follows: the vested accrued benefit based on credited service prior to October
6, 2010, payable on the date the participant attains the age of sixty (60) and completes ten (10)
years of credited service; and the vested accrued benefit based on credited service on or after
October 6,2010,payable on the date the participant attains the age of sixty-five(65)and completes
ten (10) years of credited service. A participant may continue in the employ of the City and
continue to participate in the plan beyond the normal retirement date. Notwithstanding any other
provision of this paragraph,the definition of normal retirement date contained in the first sentence
of this paragraph shall continue to apply to participants who are employed in a position included
in a bargaining unit on October 5, 2010, until such time as changes to the definition are
implemented through the collective bargaining process.
Participant. An employee who is eligible to participate and who actually participates in the
plan.
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Retire (retired). To separate (be separated)from City employment with eli ig bility for
immediate receipt of benefits under the-plan and commence receipt of(be receiving)benefits.
Retirement. Either termination of City employment with immediate entitlement to receive
normal, early or disability retirement income under the plan, or entry into the Deferred Retirement
Option Plan("DROP")with immediate entitlement to receive normal retirement income from the
general employees retirement plan to the DROP.
Retirement Committee A five (5) member committee appointed by the City Commission,
responsible for the administration of the plan as provided herein(hereinafter"the Committee").
Spouse. The lawful 1,,,s7.a,-,.a ^N wife legal spouse as permitted under applicable law, of an
employee at the time of the employee's retirement or death,whichever is applicable.
Terminated participant. A plan participant with at least five (5) years of credited service
whose City employment is terminated for any reason other than death,early retirement or disability
retirement prior to the normal retirement date.
Section 2. That Chapter 35, "Employee Policies and Benefits", Section 35.093, "Credited
Service for Former Employees and Employees who were Excluded from Participation in the Plan",
of the Code of Ordinances of the City of Delray Beach is hereby amended to read as follows;
Sec. 35.093. -- Credited Service for Former Employees.and Employees who were Excluded from
Participation in the Plan.
(A)Former plan participants who have not begun to receive benefits under the plan and who are
reemployed by the City as eligible employees will be considered new employees with credited
service for all purposes calculated as such unless the former participants elect to pay back to
the plan the amount of any previous distribution received from the plan plus interest. The
amount of interest required will be calculated based upon a seven(7)percent per annum rate
for the period from date of original distribution to the date of repayment. Former plan
participants who elect to repay this amount will be granted the credited service awarded prior
to their previous termination of service.
(B) Current employees, or employees who left the employ of the City on or after January 1, 1984,
who participated in the plan and who were excluded from further participation in the plan
during employment due to being over the then-existing maximum age provisions, but who
never received retirement income or withdrawal of participant contributions from the plan,
shall have credited service for purposes of benefit calculation equal to the period of
participation before exclusion plus one year, plus whatever time they elect to buy back under
divisions (C) and (D) of this Section, plus the time after September 25, 1984, during which
they contributed to and participated in the plan.If an employee who was excluded from further
participation in the plan received retirement income or a withdrawal of participant
contributions, then credited service for purposes of benefit calculation shall be equal to the
number of years the employee elects to buy back under divisions (C) and (D) of this Section,
plus one year,plus the time after September 25, 1984,during which the employee contributed
to and participated in the plan. Employees in this category may buy back both those years for
which they have received a withdrawal of participant contributions and the years during which
00857521-1 - Page 6
Ord.45-17
they were excluded from the plan. In no event shall this credited service calculation exceed
the total number of years of full-time employment with the City.
(C) (1) Eligible employees who had previously been excluded from plan participation due to
being over the then-existing maximum allowable age for participation at hire, or were
excluded from the plan due to being over the then-existing maximum age at any time
during their employment with the City, will have their credited service calculated in
accordance with division (B) of this Section. Eligible employees who wish to buy back
any time. they were excluded from the plan shall be required to make payment in
accordance with division (D), which payment shall be equal to an amount which
represents the employee contributions they would have made to the plan had they always
participated,plus interest. The amount of interest required will be calculated based upon
a seven(7)percent per annum rate for the period from which the money would otherwise
have been paid into the plan to the date of repayment.Those employees who elect to make
this payment will be granted credited service for purposes of benefit calculation in
accordance with division (B). Employees will be required to buy back the most recent t
years first. All new participants will receive credited service for the purpose of
determining their normal retirement date whether or not the optional payment is made.
(2) The repayment provisions of division(C)(1) shall also be available to former employees
who retired from the City on or after January 1, 1984, and who were excluded from the
plan due to being over the then-existing maximum age, thereby being prevented from
accruing ten(10) years of credited service.
(D) The repayment of a previous distribution plus interest under division(A)of this Section or the
payment of employee contributions plus interest under division (C) of this Section will be
payable in a lump sum within ninety (90) days after reemployment or on or before July 1,
1985, whichever is later. However, persons who are employees of the City as of January 16,
1985, at 5:01 p.m.may elect to pay the amount required in installments.If this option is used,
one thousand dollars ($1,000.00) will be due on or before April 15, 1985, with subsequent
payments of the lesser of one thousand dollars ($1,000.00) or the balance due payable every
three(3)months after the initial payment. If any type of benefit payment under the plan begins
prior to the full payment of employee contributions or a previous distribution plus interest,the
outstanding balance will be deducted from the benefit payments as they become due. The
Retirement Committee shall have the authority to waive the repayment deadlines set forth
herein, upon a finding by the Retirement Committee of extenuating circumstances upon
individual request which shall be submitted not later than nine (9) months following the
expiration of the applicable deadline.
(E) Employees who were previously excluded from the plan who elect to participate in the plan
pursuant to Section 35.089(D)(2) shall earn credited service from the date of their election to
participate in the plan. Such employees may also purchase credited service under the plan, in
years and tenths of a year, for all or a portion of the period of their prior employment with the
City, by paying into the plan the full actuarial cost of such credited service, as determined by
the plan actuary. Such payment must be made in full prior to entering the DROP or separation
from City employment, whichever occurs earlier, and in the event full payment is not made
prior to such date, the participantmembef shall receive only the amount of credited service,
as determined by the actuary, for which the payment made, excluding interest, is the full
actuarial cost. A participant purchasing such additional credited service must pay the full cost
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of any actuarial calculations required. Payment for the purchase of credited service pursuant
to this subsection may be made using any one or a combination of the following options:
1. [Cash Payment.]Cash lump sum payment.
2. [Direct Transfer, Rollover.]Direct transfer or rollover of an eligible rollover distribution
from a qualified plan, in accordance with Sec. 35.097(L).
3. Time Payment Plan. Under this option the participant membe- may elect to pay any
remaining balance due for the purchase of credited service through payroll deduction on
a time payment plan over a period of not more than five (5) years, as approved by the
Retirement Committee. Interest on such payments shall be paid based on the assumed
rate of return of the plan. Payments deducted from an employee's pay shall be designated
as employer contributions pursuant to Section 414(h) of the Internal Revenue Code.
Section 3. That Chapter 35, "Employee Policies and Benefits", Section 35.094, "Purchase of
Additional Credited Service for Prior Military or Government Employment", of the Code of
Ordinances of the City of Delray Beach is hereby amended to read as follows:
Sec. 35.094. -- Purchase of Additional Credited Service for Prior Military or Government
Employment.
A participant with at least five (5) years of credited service based on City employment who
has not entered the DROP may purchase up to three(3) additional years of credited service,in full
years and tenths of a year, at any time before retirement for a like period of previous full-time
employment with the Federal government, including military service, or any State, county, or city
government other than the City of Delray Beach; provided the participant has paid into the plan
the full actuarial cost of such credited service as determined by the plan actuary. A participant
purchasing such additional credited service must pay the full cost of any actuarial calculations
required, and must provide proof of the prior government employment to the City. No additional
service credit will be allowed if the participant is receiving or will receive any other retirement
benefit based on the prior government service. Payment for the purchase of credited service for
prior government employment pursuant to this Section must be made in full prior to entering the
DROP or separation from City employment, whichever occurs earlier. In the event full payment
is not made prior to such date, the participant me-mb€r shall receive only the amount of credited
service, as determined by the actuary, for which the payment made, excluding interest, is the full
actuarial cost. Payment for the purchase of credited service pursuant to this subsection may be
made using any one or a combination of the following options:
1. [Cash Payment.]Cash lump sum payment.
2. [Direct Transfer, Rollover.]Direct transfer or rollover of an eligible rollover distribution
from a qualified plan, in accordance with Sec. 35.097(L).
3. Time Payment Plan. Under this option the participantiReffiber may elect to pay any
remaining balance due for the purchase of credited service through payroll deduction on
a time payment plan over a period of not more than five (5) years, as approved by the
Retirement Committee. Interest on such payments shall be paid based on the assumed
rate of return of the plan, and the credited service purchased shall not be credited until all
008s7521-1 Page 8
Ord.45-17
installments are paid. Payments deducted from an employee's pay shall be designated as
employer contributions pursuant to Section 414(h) of the Internal Revenue Code. r'
Section 4. That Chapter 35, "Employee Policies and Benefits", Section 35.095,
"Contributions of Participant and City", of the Code of Ordinances of the City of Delray Beach is
hereby amended to read as follows:
Sec. 35.095. -- Contributions of Participant and City.
(A)Participant's Contribution Account.
(1) [Tax-Deferred Contributions.]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) Participants'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 (41/2) 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(2.5) percent of basic compensation. Beginning with
the first pay period after October 6, 2010, participants who are not included in a
bargaining unit shall contribute three and five one-hundredths (3.05) percent 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
00857521-1 Page 9
Ord.45-17
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 Applicability to Bargaining Unit Employees. Participants who are members of the
( ) pp tJ' g g
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
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 participant
membr shall be required to contribute more than four and one-half(41/2)percent of basic
compensation unless the City and union agree to a greater participant contribution.
Notwithstanding the foregoing, effective November 13, 2004, employees who are
members of the bargaining unit represented by the National Conference of Firemen and
Oilers shall contribute two and one-half(21/2)percent of their gross pay to fund the City's
defined benefit pension plan. If an actuary selected by the Pension Board determines that
additional monies are required to properly fund the plan, employees shall contribute at
the same rate as all other nonrepresented employees who are participants members of the
defined benefit pension plan. However, in no event shall employees contribute less than
two and one-half(21/2)percent nor more than four and one-half(41/2)percent of their gross
pay, unless the union and the City bargain for a lesser or greater percentage.
Notwithstanding the foregoing, employees who are included in a bargaining unit shall
contribute three and five one-hundredths (3.05) percent of basic compensation upon
implementation of this change through the collective bargaining process.
(5) Effective September 24, 2010, each 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 employment with the City.
(d) Date the participant attains thirty (30) years of credited service under the plan. Any
participant who attained thirty (30) years of credited service under the plan on or
after September 24, 2010 shall receive a refund of participant contributions for the
period commencing on the date the participant memo attained thirty (30)years of
credited service.
(B) City's Contributions.
(1) The City intends to make contributions as are required, together with contributions of
participants and earnings on investment of.fund assets, to maintain the Trust Fund
established for the purposes of the plan on a sound actuarial basis, as determined by the
actuary employed by the City in accordance with Section 35.105(e) of this subchapter.
(2) The City shall have no right,title, or interest in the Trust Fund or in any part thereof, and
no contributions made thereof shall revert to the City except that part of the Trust Fund,
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if any, which remains therein after the satisfaction of all liabilities to persons entitled to
benefits under the plan, as described in Section 35.106(E) of this subchapter with respect
to termination of the plan.
Section 5. That Chapter 35 "Employee Policies and Benefits" Section 35.096,"Expenses of
p
� p
Administration",of the Code of Ordinances of the City of Delray Beach is hereby amended to read
as follows:
Sec. 35.096. --Expenses of Administration.
The City may pay all expenses incurred in the administration of the plan, iftel, i g e
„ria fes of the trustee,but it shall not be obligated to do so, and any expenses and fees not so paid
by the City shall be paid from the Trust Fund.
Section 6. That Chapter 35, "Employee Policies and Benefits", Section 35.097, "Retirement
Income; Basis, Amount, and Payment", of the Code of Ordinances of the City of Delray Beach is
hereby amended 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,
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. Notwithstanding the
foregoing provisions of this paragraph, the normal form of benefit for participants who
are employed in a position not included in a bargaining unit on October 5, 2010, and not
within ten (10) years of attaining the normal retirement date in effect on that date, shall
be a single life annuity. The normal form of benefit provided in the third and fourth
sentences of this paragraph shall continue to apply to participants who are employed in
positions included in a bargaining unit on October 5, 2010, until such time as changes to
the normal form of benefit are implemented through the collective bargaining process.
00857521-1 Page 11
Ord.45-17
(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 (5 5) 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) 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) Disability Retirement and Retirement Income.
(1) [Disability Retirement.] A participant may retire from the service of the City under the
plan if he or she becomes totally and permanently disabled, as defined in subsection
(C)(2)of this Section,on or after the effective date of this Section. This type of retirement
shall be referred to as disability retirement.
(2) Total and Permanent Disability. A participant will be considered totally disabled if, in
the opinion of the Retirement Committee, the participant is wholly prevented from
engaging in any occupation for wage or profit; and a participant will be considered
permanently disabled if, in the opinion of the Committee, the participant is likely to
remain so disabled continuously and permanently from a cause other than those specified
in subsection(C)(3) of this Section.
(3) Disqualifying Causes of Disability. A participant will not be entitled to receive any
disability retirement income if, in the opinion of the Committee,the disability is a result
of:
(a) The participant's excessive or habitual use of drugs, intoxicants, or narcotics;
(b) Injury or disease sustained by the participant while willfully and illegally
participating in fights, riots, civil insurrections, or while committing a felony;
(c) Injury or disease sustained by the participant while serving in any [of the] armed
forces;
°0857521-1 Page 12
Ord.45-17
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(d) Injury or disease sustained by the participant diagnosed or discovered after the
termination of city employment;
(e) Injury or disease sustained by the participant while working for anyone other than
the City, and arising out of such employment or
Injury or disease sustained b the participant as a result of an act of war, whether or
(� J Y Y p p
not the act arises from a formally declared State of war.
(4) Proof of Disability. The Committee, before approving the payment of any disability
retirement income, shall require satisfactory proof,in the form of a certificate from a duly
licensed physician selected or approved by the Committee, that the participant has
become disabled as provided herein. The Committee may require similar proof of the
continued disability of a participant after the commencement of disability retirement
income.
(5) Disability retirement income.
(a) Monthly income payable.
(1) Service-Connected Disability. The benefit payable to a participant who retires
from the service of the City due to total and permanent disability arising out of
and in the course of city employment and occurring prior to October 6, 2010,
shall be a monthly retirement income equal to seventy-five (75) percent of the
participant's final monthly compensation at the date of disability, subject to
offsets for Social Security and workers' compensation benefits in accordance
with subsection(C)(5)(a)(4) of this Section. The benefit payable to a participant
who retires from the service of the City due to total and permanent disability
arising out of and in the course of city employment and occurring on or after
October 6, 2010, shall be a monthly retirement income equal to sixty (60)
percent of the participant's final monthly compensation at the date of disability,
subject to offsets for Social Security and workers' compensation benefits in
accordance with subsection (C)(5)(a)(4) of this Section. Notwithstanding the
preceding sentence, the first sentence of this paragraph shall continue to apply
to participants who are employed in a position included in a bargaining unit on
October 5, 2010, until this benefit is changed through the collective bargaining
process.
(2) Nonservice-Connected Disability. The benefit payable to a participant who
retires from the service of the City due to total and permanent disability not
arising out of and in the course of city employment, after the completion of ten
(10) years of credited service, shall be an amount equal to two (2) percent of
final monthly compensation at the date of disability,multiplied by the years and
tenths of years of credited service, subject to a maximum monthly retirement
income of fifty (50) percent of final monthly compensation, and subject to
offsets for social security and workers' compensation benefits in accordance
with subsection(D)(5)(a)(4) of this Section.
(3) Optional Benefit. If a participant with greater than ten (10) years of credited
service is eligible to receive a nonservice disability benefit of less than fifty
dollars ($50.00) per month under subsection (C)(5)(a)(2) of this Section, the
00857521-1 Page 13
Ord.45-17
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participant may elect to receive an optional benefit payable commencing
according to the provisions of subsection (C)(6) of this Section and subject to
subsection(E) of this Section. This optional benefit will be equal to the product
of"a" and "b", where "a" is the number of years and tenths of years of credited
service at the date of disability,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. If this option is elected,the benefit payable will
not be subject to the provisions of subsection (C)(5)(b) of this Section, but will
be payable as a normal retirement benefit would be paid pursuant to subsection
(A)(2) of this Section, unless an optional form of payment is elected under
subsection(E)of this Section,in which case such election will define the period
of payment.
4. Reductions in benefits. The disability retirement income described above shall
be reduced by Social Security and workers' compensation wage-loss benefits
received by the participant,as follows.The reduction for Social Security benefits
shall be in the amount of the primary insurance amount only, not including any
family benefit. Any cost-of-living adjustments in the participant's Social
Security benefits shall not serve to reduce further the disability retirement
income payable from the plan. The reduction for Social Security disability
benefits shall terminate upon the retiree's attainment of age 65. Disability
retirement income payable from the plan shall be reduced by workers'
compensation wage-loss benefits received by the participant to the extent that
such benefits,when added to the participant's disability retirement income from
the plan (adjusted for Social Security benefits received, if applicable), exceed
the participant's final monthly compensation at the date of disability. Any cost
of living adjustments in the participant's workers' compensation benefits shall
`not serve to reduce further the disability retirement income payable from the
plan. In the case of a lump sum workers' compensation settlement,the disability
retirement income payable from the plan shall be adjusted as follows:
(a) The amount of the lump sum settlement shall be divided by the participant's
remaining life expectancy (in months), as determined using standard
actuarial tables approved by the plan actuary;
(b) If the number obtained in subsection (a), above, when added to the
participant's monthly disability retirement income from the plan, exceeds
the participant's final monthly compensation on the date of disability, the
amount of the excess shall be deducted from the participant's monthly
disability retirement income from the plan, for the duration of the
participant's remaining life expectancy as determined in subsection (a),
above.
(c) If the number obtained in subsection (a), above, when added to the
participant's monthly disability retirement income from the plan does not
exceed the participant's final monthly compensation on the date of
disability, there shall be no reduction of the participant's disability
retirement income from the plan.
00857521-1 Page 14
Ord.45-17
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(b) Normal Retirement Income Commencing on the Cessation of Disability Retirement
Income. If a participant's monthly disability retirement income from the plan ceases
pursuant to subsection (C)(6)(c) of this Section, normal retirement income shall
commence in accordance with this paragraph For the purpose of this subsection, a
participant's credited service shall include all periods of credited service as defined
in Section 35.089 and Section 35.093 of this subchapter; and all years and tenths of
years during which the participant received disability retirement income from the
plan. Upon the cessation of disability retirement income pursuant to subsection
(C)(6)(c) of this Section, the participant shall begin receiving monthly retirement
income computed in the same manner as for normal retirement in accordance with
subsection (A)(1) of this Section, based upon the participant's credited service as
defined in this paragraph, and projected rate of final monthly compensation (as
defined in this paragraph, below). The participant's projected rate of final monthly
compensation shall be determined in accordance with Section 35.089(E) of this
subchapter, but based on the assumption that the participant's rate of monthly basic
compensation at the date of termination of city employment due to disability would
have continued without change to the date disability retirement income ceased.
(6) Payment of Disability Retirement Income. The monthly retirement income payable upon
disability retirement will be payable on the first day of each month. The first payment
will be made effective on the first day of the month following the date on which the
participant's disability has existed for five(5)months, or the date on which the participant
submits a written application for disability retirement income, whichever is later.
Disability retirement income will continue to be paid in lieu of any other retirement
income under the plan,until the earliest of the following occurrences:
(a) If the participant recovers from disability, the last disability retirement income
payment will be the payment due next preceding the date of recovery.
(b) If the participant dies without recovering from disability,the last payment will be the
payment due next preceding the date of death.
(c) For participants who become disabled at age sixty (60) or less, disability retirement
income shall cease upon the date the participant attains age sixty-five (65). For
participants who become disabled after age sixty (60), disability retirement income
shall cease five(5)years after the commencement of benefits. Upon the cessation of
disability retirement income under this subparagraph (c), payment of normal
retirement income shall commence in accordance with subparagraph(C)(5)(b)of this
Section.
(7) Recovery from Disability. If the Committee finds that a participant who is receiving
disability retirement income is, at any time, no longer disabled as provided herein, the
Committee shall direct that the retirement income be discontinued. Recovery from
disability as used herein shall mean the ability of the participant to engage in any
occupation for wage or profit.However,any participant who recovers from disability and
whose disability retirement income is discontinued by the Committee and who, as of the
date of termination of City employment due to disability, had completed twenty (20)
years of credited service or who had both attained the age of fifty-five (55) years and
completed at least fifteen (15) years of credited service shall, if not reemployed by the
00857521-1 Page 15
Ord. 45-17
City, be entitled to early retirement income as provided in subparagraph (B) of this
Section,based on the participant's final monthly compensation and credited service as of
the date of termination of city employment due to disability and upon the participant's
age as of the date of recovery from disability. The amount of early retirement income
payable in this circumstance shall be actuarially reduced to take into account the
' earlier commencement of retirement income payments
participant's younger age and the ar p y
as provided in subparagraph (B) of this Section. Any participant who recovers from
disability and whose disability retirement income is discontinued by the Committee and
who, as of the date of termination of city employment due to disability had completed at
least five (5)years of credited service shall, if not reemployed by the City, be entitled to
vested deferred retirement income as provided in subparagraph(D) of this Section.
(8) Reemployment by the City. If a participant recovers from disability and is reemployed by
the City, the participant's city employment will be deemed to have been continuous and
credited service under the plan will be granted for the period of disability.
(D) Benefits Other than on Retirement.
(1) Benefit on Termination of Service and on Death After Termination of Service:
(a) If a participant's city employment is terminated after completion of five (5)years of
credited service but before the normal retirement date, and the termination of
employment is for any reason other than the participant's death, early retirement as
described in subparagraph(B)of this Section, or disability retirement as described in
subparagraph(C) of this Section,the participant shall, if then living,be entitled to a
deferred monthly retirement income commencing on the normal retirement date. The
amount of the deferred monthly retirement income shall be computed in the same
manner as normal retirement income under subparagraph (B)(2) of this Section,
based upon the terminated participant's vested percentage, credited service and final
monthly compensation at the date of termination of city employment. A participant
who terminates city employment after completion of five(5)years of credited service
may alternatively elect, in lieu of any other plan benefits, to withdraw participant
contributions in accordance with Section 35.095(A).
(b) In the event a terminated participant dies prior to the commencement of deferred
retirement income and without having received a lump sum benefit in accordance
with division (G) of this Section or a withdrawal of participant contributions, the
participant's designated beneficiary shall receive the monthly retirement income,
payable for ten (10) years certain and life thereafter and effective 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 employment, accumulated at interest from the date of such termination
to the date of the participant's death.
(c) If a terminated participant who has not received a withdrawal of participant
contributions or any other retirement benefit or income from the plan is reemployed
by the City in a position eligible for participation in the plan, the participant shall
retain the prior credited service,and earn additional credited service as a contributing
participant during the period of reemployment, in lieu of the deferred retirement
income provided in division (D)(1)(a) of this Section. The monthly retirement
00857521-1 Page 16
Ord.45-17
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I
income'payable to such a participant following the subsequent termination of
employment, and commencing on or after the normal retirement date, shall not in
any event be less than the amount to which the participant was entitled under
subparagraph(D)(1)(a) of this Section prior to reemployment by the City.
(d) The provisions of subparagraph (E) of this Section relating to optional forms of
retirement income are applicable to the benefits provided under subparagraph
(13)(1)(a) of this Section.
(e) Except as provided in subparagraph (A) of this Section with respect to normal
retirement, subparagraph(C)of this Section with respect to disability retirement,and
subparagraph (D) of this Section with respect to death, a participant whose
employment is terminated prior to the completion of five(5)years of credited service
shall be entitled only to the return of participant contributions in accordance with
Section 35.095(A).
(f) Except as otherwise provided in subparagraph (D) of this Section and Section
35.093(C), any participant who terminates city employment and is subsequently
reemployed by the City in a position eligible for participation in the plan will be
treated as a new participant in all respects, with date of participation and credited
service determined on the basis of the participant's most recent date of employment.
(2) Benefit Payable in the Event of Participating Employee's Death on or Before the Normal
Retirement Date:
(a) Death benefit—Service-Connected Death. If a participant's city employment is
terminated by reason of death on or before the normal retirement date, and the death
arises out of or in the course of city employment,there shall be payable the following:
(1) To the participant's spouse or other designated. beneficiary or beneficiaries, as
the case may be,a lump-sum payment of ten thousand dollars($10,000.00);plus
(2) To the participant's spouse, until the earlier of his or her death or remarriage, a
monthly income equal to sixty 60) percent of the participant's final monthly
compensation at the date of death; or to a designated beneficiary or beneficiaries
other than the spouse, until death, a monthly income equal to the actuarial
equivalent of a lifetime benefit payable to the participant in the amount of sixty
(60)percent of the participant's final monthly compensation at the date of death;
plus
(3) For each child of the participant until he or she attains the age of eighteen (18)
years, and for each child from age eighteen(18) until age twenty-two (22) who
is a full-time student in an accredited school,there shall be payable an additional
monthly income equal to seven and one-half(7.5) percent of the participant's
final monthly compensation.The maximum monthly income for the participant's
spouse and children combined shall not exceed seventy-five (75)percent of the
participant's final monthly compensation at the date of death. A nonstudent
child's monthly income shall terminate effective the first day of the month next
preceding the child's death, marriage, or the attainment of age eighteen (18),
whichever occurs first;the monthly income of a child who is a full-time student
shall terminate effective the first day of the month next preceding the child's
00857521-1 Page 17
Ord.45-17
j f
death, marriage, or the attainment of age twenty-two (22), whichever occurs
first.Legally adopted children shall be eligible for a monthly income in the same
manner as biological children.
Notwithstanding the provisions of subparagraph(2) above,participants who are
employed in a position included in a bargaining unit on October 5, 2010, shall,
if their employment is terminated by reason of death on or before the normal
retirement date, and the death arises out of or in the course of city employment,
be entitled to the following benefit payable to the participant's spouse until this
benefit is changed through the collective bargaining process: to the participant's
spouse, until the earlier of his or her death or remarriage, a monthly income
equal to seventy-five (75) percent of the participant's final monthly
compensation at the date of death; or to a designated beneficiary or beneficiaries
other than the spouse, until death, a monthly income equal to the actuarial
equivalent of a lifetime benefit payable to the participant in the amount of
seventy-five (75)percent of the participant's final monthly compensation at the
date of death.
(b) Death Benefit—Nonservice-Connected Death. If a participant's city employment is
terminated by reason of death on or before the participant's actual retirement date,
and benefits are not payable pursuant to Section 35.097(D)(2)(a), there shall be
payable the following:
(1) If the participant has at least one year but less than five (5) years of credited
service, a lump-sum payment of five thousand dollars ($5,000.00) to the
participant's spouse, or other designated beneficiary or beneficiaries.
(2) If the participant has five (5) or more years of credited service, there shall be
payable:
(a) A lump-sum payment of ten thousand dollars ($10,000.00)to the spouse or
other designated beneficiary or beneficiaries;plus
(b) To the participant's spouse,until the earlier of his or her death or remarriage,
a monthly income equal to sixty-five(65)percent of the participant's normal
retirement income which has accrued to the date of death; subject to a
minimum of twenty (20) percent of the participant's final monthly
compensation at the date of death; or to a designated beneficiary or
beneficiaries other than the spouse, until death, a monthly income equal to
the actuarial equivalent of a lifetime benefit payable to the participant in the
amount of sixty-five (65) percent of the participant's normal retirement
income which has accrued to the date of death; plus
(c) For each child of the participant until he or she attains the age of eighteen
(18) years, and for each child from age eighteen (18) until age twenty-two
(22)who is a full-time student in an accredited school,there shall be payable
an additional monthly income of seven and one-half(7:5) percent of the
participant's final monthly compensation. The maximum monthly income
for the spouse and children combined shall not exceed fifty (50)percent of
the participant's final monthly compensation at the date of death. A
00857521_1 Page 18
Ord.45-17
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nonstudent child's monthly income shall terminate effective the first day of
the month next preceding the child's death, marriage, or the attainment of
age eighteen (18), whichever occurs first; the monthly income of a child
who is a full-time student shall terminate on the first day of the month next
preceding the child's death marriage, or the attainment of age twenty-two
p g � g � g ty
(22),whichever occurs first.Legally adopted children shall be eligible for a
monthly income in the same manner as biological children.
(c) The minimum death benefit payable to the designated beneficiary or beneficiaries
under subsection(D)(2) of this Section shall be an amount equal to the death benefit
that would have been payable under the terms of the superseded plan based on the
assumption that the employee had died on the effective date of this Section. In the
event more than one beneficiary is designated by the participant, the death benefits
provided herein shall be equally apportioned among the beneficiaries.
(E) Optional Forms of Retirement Income.
(1) In lieu of the amount and form of retirement income payable in the event of normal
retirement, early retirement, or termination of service as specified in subparagraphs (A),
(B) and(D)(1)of this Section, a participant or a terminated participant may,upon written
request to the Committee submitted prior to the receipt of retirement income or benefits
under the plan, and subject to the approval of the Committee, elect to receive a retirement
income or benefit commencing on the date specified in subparagraphs(A),(B)and(D)(1)
of this Section, whichever is applicable, of equivalent actuarial value payable in
accordance with one of the following options:
(a) Option 1. A retirement income of a modified monthly amount, payable to the
participant for life, except that in the event the participant dies before receiving
retirement income for a period of ten (10) years, the same monthly benefit will be
paid to the beneficiary designated by the participant for the balance of the ten-year
period.
(b) Option 2 . A retirement income of a modified monthly amount payable to the
participant during the lifetime of the participant and following the participant's death,
one hundred (100) percent, seventy-five (75) percent, sixty-six and two-thirds
(66.66) percent or fifty (50) percent of the participant's modified monthly benefit
shall be payable to the joint pensioner for life. Election of this option shall be null
and void if the designated joint pensioner dies before the participant's retirement,
unless the participant designates another joint pensioner in accordance with
subsection 35.097(E)(2). Except where a participant's joint pensioner is his/her
spouse, the present value of payments to the participant shall not be less than fifty
(50) percent of the total present value of the payments to the participant and the
participant and the joint pensioner. In addition, the participant may elect to add a
"pop-up feature" to such joint and survivor option. If the participant elects to add a
"pop-up feature"to the j oint and survivor option,then upon the death of his/her j oint
pensioner, the amount of the participant's monthly payment will be increased to the
amount of a straight life annuity and such amount will be payable as of the first day
of each month after the death of the joint pensioner for the remainder of the
participant's lifetime. The monthly benefit payable to the participant under this
00 85 75 21-1 Page 19
Ord.45-17
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Option 2 shall be actuarially reduced to take into account the addition of the pop-up
feature.
(c) Option 3. In lieu of the other optional forms enumerated in this Section, and upon
the request of a participant,retirement benefits may be paid in any form approved by
the Board so long as actuarial equivalence with the benefit otherwise payable is
maintained.
(2) A participant, upon electing any option under this Section, shall designate the joint
pensioner or beneficiary to receive the benefit,if any,payable under the plan in the event
of the participant's death, on a form provided by the Committee. The participant may
revoke or change the designation of a joint pensioner or beneficiary at any time prior to
the commencement of retirement income or benefits, by submitting such change in
writing on a form provided by the Committee. A participant may also change the
designation of a joint pensioner or beneficiary after the commencement of retirement
income or benefits, subject to approval by the Committee, and in accordance with the
following:
(a) The participant must pay the fall cost of determining the equivalent actuarial value
of the benefit payable.
(b) The consent of a participant's joint pensioner or beneficiary to any change in such
designation shall not be required.
(c) The amount of retirement income payable to the participant upon the designation of
a new joint pensioner shall be actuarially redetermined, taking into account the
benefits already received by the participant, and the age and sex of the former joint
pensioner,the new joint pensioner and the participant.
(d) Each designation of a joint pensioner or beneficiary shall be made in writing on a
form provided by the Committee.
(e) In the event that no designated beneficiary survives the participant and the participant
did not elect to add a "pop-up feature" in accordance with subsection (1)(b) above,
the benefits payable in the event of the participant's death subsequent to retirement
shall be paid as provided in Section 35.100(A) of this subchapter.
(3) Retirement income payments will be made under the option elected in accordance with
the provisions of this division and will be subject to the following limitations:
(a) If a participant dies prior to his retirement under the plan, or if a terminated
participant dies prior to the commencement of normal retirement income,no benefit
will be payable under the option to any person, but benefits will be payable as
provided in subparagraph(D) of this Section.
(b) If a participant's designated beneficiary or j oint pensioner dies before the participant's
retirement under the plan, the option elected will be canceled automatically and
retirement income in the normal form and amount will be payable to the participant
upon retirement as if the election had not been made,unless a new election is made
in accordance with the provisions of this Section, or unless a new beneficiary or joint
pensioner is designated by the participant prior to retirement.
00857521_1 Page 20
Ord.45-17
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(c) If both the participant and designated beneficiary die after the date the participant's
retirement income commences under the plan, but before the full actuarial value of
benefits under the provisions of subparagraph(E)(1)(a) or (c)has been received,the
Committee may, in its discretion, direct that the commuted value of the remaining
payments be paid in a lump sum and in accordance with Section 35.100(B).
(F) Lump-Sum Payment of Small Retirement Income. Notwithstanding any provision of the plan
to the contrary,if the monthly retirement income payable to any person entitled to any benefit
hereunder is less than fifty dollars ($50.00),the retirement committee may, in the exercise of
its discretion, specify that the actuarial equivalent of the retirement income be paid in a lump
sum or in monthly installments for a period certain of not more than sixty (60) months;
provided, if the actuarial equivalent of the monthly retirement income is greater than one
thousand dollars ($1,000.00),payment of the benefit in a lump sum shall be made only upon
the written request of a participant membe or designated beneficiary,
4iP City, er if rl' b. est Fi ,�y e LYYe City eammi#ed b a "uift�ieipuiit is
plan,de4enn4ied by the City durj-ag the lifetime of the paftieipapA but wig4ft one year- after
and TMst F',,, a
Mefm4iied and deeided by tl+e Ce=ittee only after- a full in-vestigatioa of the alleged
dishonest eond-uet and an oppoftunity has been giveft the pa-Aieipant to appeaf before the
eandiaet an investigation pufsuant to this Seetion. The deeisieff made by the Gonuni
thee d
ixx�ccc>viiion.
Forfeiture of pension.
(1) Any_participant who is convicted of the following offenses committed prior to retirement,
or whose employment is terminated by reason of his admitted commission aid or
abetment of the following specified offenses shall forfeit all rights and benefits under
this plan except for the return of his accumulated contributions as of the date of
termination. Specified offenses are as follows:
(a) The committing aiding or abetting of an embezzlement of public funds;
(b) The committing aiding or abetting of any theft by a public officer or employee from
employer;
(c) Bribery in connection with the employment of a public officer or employee;
(d) Any felony specified in chapter 838, Florida Statutes, except
sections 838.15 and 83 8.16,Florida Statutes;
(e) The committing of an impeachable offense;
00857521-1 Page 21
Ord.45-17
I
�f) The committing of any felony by a public officer or employee who, willfully and
with intent to defraud the public or the public agency for which the public officer or
employee acts or in which he or she is employed of the right to receive the faithful
performance of his or her duty as a public officer or employee realizes or obtains,
or attempts to realize or obtain a profit gain or advantage for himself or herself or
for some other person through the use or attempted use of the power, rights,
privileges duties or position of his or her public office or employment position; or
(g) The committing on or after October 1 2008 of any.felony defined in section 800.04,
Florida Statutes against a victim younger than 16 years of age or any felony defined
in chapter 794 against a victim younger than 18 years of age,by a public officer or
employee through the use or attempted use of power, rights, privileges, duties, or
position of his or her public office or employment position.
(2) "Conviction" shall be defined as an adjudication ofwg It by a court of competent
jurisdiction; a plea of�ty or nolo contendere; fury verdict of guilty when adjudication
of guilt is withheld and the accused is placed on probation; or a conviction by the Senate
of an impeachable offense.
(3) "Court" shall be defined as any state or federal court of competent jurisdiction which is
exercising its jurisdiction to consider a proceeding involving the alleged commission of
a specified offense.
(4) Prior to forfeiture the board shall hold a hearing on which notice shall be given to the
participant whose benefits are being considered for forfeiture. Said participant shall be
afforded the right to have an attorney present. No formal rules of evidence shall apply,
but the participant shall be afforded a full opportunity to present his case against
forfeiture.
(5) Any participant who has received benefits from the system in excess of his accumulated
contributions after such participant 's rights were forfeited shall be required to paw
to the fund the amount of the benefits received in excess of his accumulated
contributions The board may implement all legal action necessary to recover such funds.
(H) Funding of Benefits Through Purchase of Life Insurance Contract or Contracts.
(1) In lieu of paying benefits from the Trust Fund to a participant or his beneficiary, and upon
direction of the Retirement Committee with specific prior authorization by the City, the
shall purchase, with funds in the trust, an individual retirement income or retirement
annuity contract from an insurance company which, as far as possible, provides benefits
equal to (or actuarially equivalent to) those provided in the plan for that participant or
beneficiary,whereupon the contract shall thereafter govern the payment of the amount of
benefit, if any, represented by that contract which is payable under the plan upon the
participant's normal retirement, early retirement, death, or termination of service, and the
liability of the Trust Fund and of the plan will cease and terminate with respect to those
benefits that are purchased and for which the premiums are duly paid. The individual
retirement income or retirement annuity contract may be purchased by the Committee
t-Fas-tee on a single-premium basis or on the basis of annual premiums payable over a
period of years, as directed by the Committee and as agreed upon by the insurance
company; the individual retirement income or retirement annuity contract may be
I
00857521-1 Page 22
Ord. 45-17
purchased, as directed by the Committee, at any time on or after the participant's date of
retirement to provide the benefits due under the plan to the participant or his beneficiary.
(2) With specific prior authorization by the City, the Committee may 4ifeet the trustee to
enter into a contract or contracts with one or more life insurance companies for the
purchase of retirement annuities, five-year renewable term life insurance, one-year
renewable term life insurance or other form of life insurance or other benefits, on an
individual or group basis, in a manner and in a form as may be deemed appropriate by
the Committee, as provided for in the plan, and further provided the insurance benefit
will be no greater than one hundred (100) times the participant's anticipated monthly
retirement income commencing at normal retirement date. The amount of the anticipated
monthly retirement income commencing at normal retirement date shall be computed as
for normal retirement in subparagraph(A)(1) of this Section.
(3) The participant's projected final monthly compensation at normal retirement date shall be
determined in accordance with Section 35.089(E) of this subchapter, and shall be
determined as of the participant's normal retirement date, based on the assumption that
the participant's rate of monthly compensation as of his date of death had been continued
without change to his normal retirement date. Specifically,those retirement annuities and
other benefits as may be provided for in the plan may be purchased under one or more
deposit administration type group annuity contracts.
(4) No insurance company which may issue any contract pursuant to this sectionupon-the
applieatio, of the trustee- shall be required to take or permit any action contrary to the
provisions of that contract; or be bound to allow any benefit or privilege to any person
interested in any contract it has issued which is not provided in the contract;or be deemed
to be a party to this plan for any purpose; or be responsible for the validity of this plan;
or be required to look into the terms of this plan; or question any act of the Committee
*'��e tfustec hereunder; or be required to see that any action of the Go .41teetrustee is
authorized by this plan. Any issuing company shall be fully discharged from any and all
liability for any amount paid to the plan ste€; or in accordance with theits direction of
the Committee; and no issuing company shall be obligated to see to the application of any
moneys so paid by it.Any issuing company shall be fully protected in taking or permitting
any action on the faith of any instrument executed by the Committee'- stee i its r, ne
as trustee, and shall incur no liability for so doing.
(5) Upon termination of employment, a participant may receive the retirement income or
annuity policies which are being purchased for him at the date of his termination, in lieu
of any other benefit which he may be entitled to receive,upon payment to thel�antiistee
of the difference between the cash value of the policies and the amount that the participant
is entitled to receive as a benefit upon termination of his service.
(I) Technical Provisions Required by the Internal Revenue Code and Treasury Department
Regulations.
(1) TenTerary Limitations on Benefitsfor the AveHty Five (25) highest Paid Employees.
(a) Qas-s Restrieted, Subparagr-aph (1)(1) of this See4ion is applieable only to those 4
the twenty fwe (25) highest paid employees of the City, detennined whose monthly
retiremeHt ineome upon normal Fetirement date would axeeed one hUftElfed tWeffty-
00857521_1 Page 23
Ord.45-17
r
4
five dollars The tufa "
as used in this subseetion sha,41 in&lude
all persons in the einpleymeiA of the City who are partieipaRts in the plan and
other per-sons in the employm- ent of the City oB 4:14 date who ay later beeeme
partieipants in the plan,
(1)—t ubjeet @tilt'to the +:n,,n eoi:Aained i subparagraph `1ji1 j of this
Seetion, and no#A4thstanding any provisions of the plaa to the eontfary, the
amount of benefits 1V1 any
J provide
partieipant to whom subpragraph (1)(1) of this Seetion applies whieh may�4e
feeeived prior to the end of the ten year period that nex4 follows the effeetive
date of the plan shall Hot exeee an amoupA whieh is equal in value to (of whie-h
is ae-.ti—mri-allyequi-,7alent—to) the larger- of the folio`vTri Twenty
+maxra-sT`�2 ,nnn nm, .far=o,intequal
to.:(a) Twenty (20) Yere€it of the
4eirpus's average --a-a ---r---- +•-retiremepA --
date,r-eeeived from the Q-f6f the five(5)years iffirnediately pfeeeding the date
Of the dete_R.ni.:,tiA:n dAte of terinination of employment or the nernial
fespeetively, for a partieipartl ,
date,who has retired prior-to the norinal retifenimA date or who has aRained
norinal retirement plan;t he has r-etired uncler the
(l,) T thousand dollars (Q 10,000.00), w hielieyer is smaller, „l+;r.lie 1.«the
ntmi-be-r of years between the date of the establishnient of the plan and th-e-
earliest of-- the date of termination of the plan; the date the benefit of an
employee, yAo is &stung the twenty fi;LP (25) highest paid whose
.l,
V JL
dellafs ($1,c, n�beeomes payable; the date of t1, failure to meet+l,
fall eurrent eests Vf the In in the ease of ..n employee deseribed in
subparagraph(7)(1)(n) of this Con+;.,,,
(2) However, if the ftffl eurrent eosts of the plan have not been met at the end of the
ten year peried that ne)A follows the eff-eetive date of the pla-H, the abov
restrietions v411 eefftiniae to apply until the full euffent eests are Amded for the
first tinie.
rn�-c-Lmxe.
(1) The foregoing eoi3:ditions �A411 not festriet the paym&PA of the fWl benefits to
benefieiafy after the death of a partieipant whose benefits are subljea to the
p-e-isions of this subparagraph(1)(1) of this
th-
> >Sectionif >
+1_:plaj3isi f4411 ---khe AiR eurrent eosts thereof have not been met.
(2) The previsions of this s4paragraph (1)(1) of this Seetien�AQI not app�y to the
retirement ineeme payable in the normal form of tinder any optienal form whieb
does Rot provide a larger- menthly ineeme than the ineeme payable fop life to
is in fall eff-eet and the fWl etfff&l#eosts thereof have been met.
00857521-1 Page 24'
Ord.45-17
(3) The limi4atiens of this subparagraph (1)(1) of tbis Seetien will not app�y to the
ifleeme with Eleeeased
1 to LL11Y N N
J J r i
-Fet4fed par-tie-i-pant who dies prior-to the termination of the plan and while th
etuTf ees4 +11 -1, b. t
(d) �FutmreAniendniem� If the plan is amended so as to produee a substantial iner-ease ifl
benefits aetiaa4ly payable, in t4e event of the subsequent temakhAien of the plan or
the subseq#enl diseentk+uanee of 7
the provisions of this subpar-ag-rap
(1)(1) of this Seetion shall be applied to the ifler-ease in benefits uRder,the plan a
amended as though the mer-ease e benefits undef a new p1m established en the-
of this Seetion that the tffffesbieted ame-1-4:4. of eity eefyti�iifiens on be-half of
employee� least +vt' +r) the fld dollafs ($20,000.00) i. YY
aggregate amount ee 'l=te by theCity on b, l,.,lf .,-f that empleyee she
efkDe4ve date of the plan, and fer the ptupese of detefmining if the employe
twenty five—demos ($125.00) pmonth, both the City o'A-F >,u e s on
employee's behalf prieF to the effeeti-ve Elate of the amendment of the plan and thes
expeeted to be made on bis behalf swubsequei4 to the offeetive date of the amendmepA
of the plan (based ofl the employee's rate of eompensatieft on the effeeti-ve date-9
that ame-ndmepA) afe to be taken into aeeount.
.f Funds R�� of Other EnTleyees. 951
terminatieff of the plan while the lkn4ations of this subpafagfaph (4)(1) of th
eantributions made by the City with fespeet to these of its employees f.0 -4:1-A-m-
Of torch i b. p (1)(1)(b) of this Seelie willappoi4iaiied to its other b.P
> ineluding its retired partieipants,
in aeear-danee
with the f C etion 35.109 of 44s-scaehaptP However, if there eo
asset value after the full apportiep,.-aent speeified in Seetion 35.109 of
eaeh employee to-Aem the provisions ef this subpafagraph(1)(1) of this Seetion are
on his behalf under Seetion 35.109 of this subehaptff to wbieh he is Rot epAitled by
feasen of the lim4atiopis of this subparagraph (1)(1) of this Seelien, and pr-evided
A-fft4e-r that,if the remamimg asset value be less gian the aggregate of those ame
this s ubehapter so that the aggregate ef tho se r-edueed ameurAs :,A411 be equal to
et value.
W(2) Forfeitures. Forfeitures shall not be used to increase the benefits that any employee
would otherwise receive under the plan at any time prior to the termination of the plan or
the complete discontinuance of contributions to the plan, but shall be anticipated in
determining the costs under the plan. Likewise, any dividends under any contract issued
in accordance with subsection(H)of this Section shall not be used to increase the benefits
that any employee would otherwise receive under the plan.
00857521-1 Page 25
Ord.45-17
G
f
Q{3} Benefits Nonforfeitable if Plan is Terminated or Contributions Permanently
Discontinued. Any provisions of the plan to the contrary notwithstanding, in the event
that the plan is terminated or contributions to the trust are completely discontinued, the
rights of each participant in the plan to benefits accrued to the date of termination or
discontinuance,to the extent then funded, shall be nonforfeitable and those benefits shall
be determined and distributed as provided in Section 35.109.
(J) Maximum Pension.
(1) Basic Limitation. Notwithstanding_any other provisions of this plan to the contrary, the
participant contributions paid to and retirement benefits paid from, the plan shall be
limited to such extent as may be necessary to conform to the requirements of Code
Section 415 for a qualified retirement plan. Subject to the adjustments hereinafter set
forth, the maximum amount of annual retirement income payable with respect to a
participant member under this plan shall not exceed the maximum limitation amount
provided by Section 415(b) of the U.S. Internal Revenue Code, as that Section may be
amended in the future, adjusted for increases in the cost-of-living pursuant to Section
415(d) of the Internal Revenue Code.
For purposes of applying the above limitation, benefits payable in any form other than a
straight life annuity with no ancillary benefits shall be adjusted, as provided by Treasury
Regulations, so that such benefits are the actuarial equivalent of a straight life annuity.
For purposes of this Section,the following shall not be taken into account:
(a) Any ancillary benefit which is not directly related to retirement income benefits;
(b) Survivor benefits payable to a surviving spouse under a qualified joint and survivor
annuity to the extent such benefits would not be payable if the participant's benefit
were paid in another form;
LcLAny other benefit not required under Section 415(b)(2)of the Internal Revenue Code
and regulations thereunder to be taken into account for purposes of the limitation of
Section 415(b)(1) of the Internal Revenue Code.
(2) Participation in other Defined Benefit Plan. The limitation of this Section with respect to
any participant mcmbewho at any time has been a member in any other defined benefit
plan(as defined in Section 4140) of the Internal Revenue Code) maintained by the City
shall apply as if the total benefits payable under all defined benefit plans in which the
participant membef-has been a participant m€mbe--r-were payable from one plan.
(3) Adjustments in Limitations for Form of Bene at.
(a) If the form of benefit is other than the annual benefit defined in subsection (1), the
benefit shall be adjusted so that it is the equivalent of the annual benefit using factors
prescribed in Treasury Regulations. If the form of benefit without regard to any
automatic benefit increase feature is not a straight life annuity or a qualified joint and
survivor annuity then the preceding sentence is applied by either reducing the Code
Section 415(b) limit applicable at the annuity starting date or by gdjusting the form
of benefit to an actuarially equivalent amount determined using the assumptions
specified in 26 CFR 1.415(b)-1 that takes into account the additional benefits under
the form of benefit as follows:
00857521-1 Page 26
Ord.45-17
f
I
+I
1. Benefit Forms Not Subject to § 417(e)(3): The straight life annuity that is
actuarially equivalent to the participant's form of benefit shall be determined
under this subsection if the form of a participant's benefit is either a non-
decreasing annuit�(other than a straight life annuity)payable for a period of not
less than the life of the Employee (or in the case of a qualified pre-retirement
survivor annuity the life of the survivingspouse),pouse), or an annuity that decreases
during the life of the participant merely because of(a) the death of the survivor
annuitant (but only if the reduction is not below 50% of the benefit payable
before the death of the survivor annuitant), or (b) the cessation or reduction of.
Social Security supplements or qualified disability paMents(as defined in Code
Section 401(a)(11). For a benefit paid in a form described in this subsection,the
actuarially equivalent straight life annuity is equal to the greater of-
a. The annual amount of the straight life annuity (if any) payable to the
participant under the plan commencing at the same annuity starting date as
the participant's form of benefit, or
b. the annual amount of the straight life annuity commencingi at the same
annuity starting date that has the same actuarial present value as the
participant's form of benefit computed using a 5 percent(5%)interest rate
assumption and the applicable mortality tables described in Code Section
417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue Service
guidance implementing Code Section 417(e)(3)(B); or
2. Benefit Forms Subject to § 417(e)(3): If a form of participant's benefit is other
than a benefit form described in subsection (3)(a)l, the actuarially equivalent
straight life annuity benefit that is the greatest o£
a. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form
of benefit payable computed using the interest rate and mortality table, or
tabular factor, specified in the plan for actuarial experience;
b. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form
of benefit payable computed using a five and one-half percent interest
assumption for the applicable statutory interest assumption and Cl)for years
prior to January 1 2009 the applicable mortality tables for the distribution
under 26 CFR 1.417(e)-l(d)(2) (Revenue Ruling 2001-62 or any
subsequent Revenue .Ruling modifying the applicable provisions of
Revenue Ruling 2001-62) and (ii) for years after December 31, 2008 the
applicable mortality_ tables described in Code Section 417(e)(3)(B) (Notice
2008-85 or any subsequent Internal Revenue Service guidance
implementing Code Section 417(e) 3)(B); or
c. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form
of benefit payable computed using the applicable interest rate for the
distribution under 26 CFR 1.417(e)-1(d)(3)the 30-year Treasury rate prior
00857521-1 Page 27
Ord.45-17
to January 1 2007 using the rate in effect for the month prior to retirement
and on and after January 1 2007 using the rate in effect for the first day of
the plan year with a one-year stabilization period and (i) for years prior to
January 1 2009 the applicable mortality tables for the distribution under
26 CFR 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling
2001-62 or any subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 2001-62) and (ii) for years after December
31 2008 the applicable mortality tables described in Code Section
417(e)(3)(B) (Notice 200885 or any subsequent Internal Revenue Service
guidance implementing Code Section 417(e)(3)(13)), divided by 1.05.
3.. The actuary may adjust the 415(b) limit at that annuity starting date in
accordance with paragraphs 1 and 2 above.
4 Other Adjustments in Limitations.
(a) In the event the participant's member's retirement benefits become payable before
age sixty-two (62), the limitation prescribed by subsection (1) of this Section shall
be reduced in accordance with regulations issued by the Secretary of the Treasury
pursuant to the provisions of Section 415(b) of the Internal Revenue Code so that
such limitation (as so reduced) equals an annual benefit (beginning when such
retirement income benefit begins) that is equivalent to the maximum annual benefit
beginning at age 62.
(b) The reductions provided in the preceding subparagraphs shall not be applicable to
disability benefits paid pursuant to Section 35.097(0) preretirement death benefits
paid pursuant to Section 35.097(D).
(c) If the participant's name's retirement benefit becomes payable after age sixty-five
(65), for purposes of determining (1) herein, such benefit shall be adjusted so that it
is actuarially made using an assumed interest rate of five (5) percent and shall be
made in accordance with the regulations promulgated by the Secretary of the
Treasury or his delegate so that such limitation (as so increased) equals an annual
benefit(beginning when such retirement income benefit begins)which is equivalent
to the maximum annual benefit beginning at age sixty-five (65).
(d) If the participant's retirement benefit becomes payable after age sixty-five
(65), for purposes of determining whether this benefit meets the limitation set forth
in Section [(J)](1)herein, such benefit shall be adjusted so that it is actuarially made
using an assumed interest rate of five (5) percent and shall be made in accordance
with the regulations promulgated by the Secretary of the Treasury or his delegate.
(e) In the event the participant's benefit is based on at least fifteen(15)years of credited
service as a full-time police officer or firefighter, the adjustments provided for in
(4)(a) above shall not apply.
fD{4� Less than Ten (10) Years of Service. The maximum retirement benefits payable
under this Section to any participant me-mbe who has completed less than ten(10) years
of credited service with the City shall be the amount determined under subparagraph
ADW of this Section multiplied by a fraction, the numerator of which is the number of
the participant's member's years of credited service and the denominator of which is ten
00857s21-1 Page 28
Ord.45-17
II
(10). The reduction provided by this section cannot reduce the maximum benefit below
10%of the limit determined without regard to this subsection. This reduction shall not be
applicable to disability benefits paid pursuant to Section 35.097(C)or preretirement death
benefits paid pursuant to Section 35.097(D).
C6)(54 Ten Thousand Dollar ($10,000.00) Limit. Notwithstanding the foregoing, the
retirement benefit payable with respect to a participant meffibr shall be deemed not to
exceed the limitations set forth in this Section of the benefits payable with respect to such
participant mer under this plan and under all other qualified defined benefit pension
plans to which the City contributions do not exceed ten thousand dollars($10,000.00) for
the applicable plan year and for any prior plan year and the City has not at any time
pp
maintained a qualified defined contribution plan in which the participant member-
participated;
emparticipated• provided however,that if the participant has completed less than ten years
of credited service the limit under this subsection shall be a reduced limit equal to ten
thousand dollars($10,000)multiplied by a fraction the numerator of which is the number
of the participant's years of credited service and the denominator of which is ten.
{,6}
any defifted benefit plans in whieh he paAieipated, sueh r-e"etien to be made first with
respeet to the plan in wbieh he most reeen4y aeerued benefits and thereafter- ift sueh
priority as shall be detenninedby the Tiustees of sueh othef plans, and next,by r-edueffiig
m&mber-paAieipated, sueh r-eduetion to be made first with respeet to the plan in Whieh
most fee&ntly aeerued benefits and thefeafter- in sueh priority as sha4l be established b
the Tfustees for- sueh other-plans, provided, however-, that neeessafy re"etions ma��
made 41 a digment mapfier- afld priority pufsiaant to the agreement of the trustees of all
(7) Cost-of-living adjustments. The limitations as stated in subsections (1), (2),0 (3) and
7Q(6)herein shall be adjusted to the time payment of a benefit begins in accordance with
any cost-of-living adjustments prescribed by the secretary of the treasury pursuant to
Section 415(d) of the Internal Revenue Code. For purposes of applying the limits under
Section 415(4) of the Internal Revenue Code (the "Limit") the following will apply:
(a) A participant's applicable limit will be applied to the participant's annual benefit in
the first limitation year of benefit payments without regard to any automatic cost of
living adjustments;
(b) thereafter,in any subsequent limitation year, a participant's annual benefit including
any automatic cost of living increases shall be tested under the then applicable
benefit limit including any adjustment to the Code Section 415(b)(1)A) dollar limit
under Code Section 415(d), and the regulations thereunder; but
(c) in no event shall a participant's benefit payable under the plan in any limitation year
be greater than the limit applicable at the annuity starting date, as increased in
subsequent years pursuant to Code Section 415(d) and the regulations thereunder.
(8) Service Credit Purchase Limits.
00857521-1 Page 29
Ord.45-17
(a) Effective for permissive service credit contributions made in limitation years
beginning after December 31 1997 if a participant makes one or more contributions
to purchase permissive service credit under the plan then the requirements of this
section will be treated as met only if
1 the requirements of Code Section 415(b) are met determined by treating the
accrued benefit derived from all such contributions as an annual benefit for
purposes of Code Section 415(b), or
2 the requirements of Code Section 415(c)are met determined by treating all such
contributions as annual additions for purposes of Code Section 415(c).
3. For oses of a 1 in sub ara a h a 2 the plan will not fail to meet the
purp pp Y � p gr p O
reduced limit under Code section 415(b)(2)(C) solely by reason of this
subparagraph and for purposes of applying subparagraph (a)2 the plan will not
fail to meet the percentage limitation under Section 415(c)(1)(B) of the Code
solely y reason of this subpara arg ph 3.
(b) For purposes of this subsection the term "permissive service credit" means service
credit-
1
redit1 recognized by the plan for purposes of calculating a participant's benefit under
the plan.
2. which such participant has not received under the plan, and
3 which such participant may receive only making a voluntary additional
contribution in an amount determined under the plan which does not exceed the
amount necessary to fund the benefit attributable to such service credit.
Effective for permissive service credit contributions made in limitation years beginning
after December 31 1997 such term may, if otherwise provided by the plan include
service credit for periods for which there is no performance of service, and,
notwithstanding clause (9)(b) may include service credited in order to provide an
increased benefit for service credit which a participant is receiving under the plan.
(c) For purposes of applying the limits in this subsection (9) only and for no other
purpose the definition of compensation where applicable will be compensation
actually paid or made available during a limitation year, except as noted below and
as permitted by Treasury Regulations located in 26 CFR 1.415(c)-2 or successor
regulations Unless another definition of compensation that is permitted by Treasury
Regulations Section 1.415(c)-2 or successor regulation, is specified by the plan,
compensation will be defined as wages within the meaning of Code Section 3401(a)
and all other payments of compensation to a participant by a City for which the City
is required to furnish the participant a written statement under Code Sections 6041(d),
6051(a)(3) and 6052 and will be determined without regard to any rules under Code
Section 3401(a)that limit the remuneration included in wages based on the nature or
location of the employment or the services performed (such as the exception for
agricultural labor in Code Section 3401(a)(2).
1. However,for limitation years beginning after December 31, 1997, compensation
will also include amounts that would otherwise be included in compensation but
D0857521-1 Page 30
Ord.45-17
for an election under Code Sections 125(a) 402(e)(3) 402(h)(1)(B), 402(k), or
457(b) For limitation years beginning after December 31, 2000, compensation
will also include any elective amounts that are not includible in the gross income
of the participant by reason of Code Section 132(fl(4).
2 For limitation years beginning on and after January 1 2007, compensation for the
limitation year will also include compensation paid by the later of 21/2 months
after an participant's severance from employment or the end of the limitation year
that includes the date of the participant's severance from employment if:
a the payment is regular compensation for services during the participant's
regular working hours or compensation for services outside the participant's
regular working hours (such as overtime or shift differential), commissions,
bonuses or other similar payments and absent a severance from employment
the payments would have been paid to the participant had the participant
continued in employment with the City; or
b the payment is for unused accrued bona fide sick vacation or other leave that
the participant would have been able to use if employment had continued.
3 Back pay,within the meaning of Treasury Regulations Section 1.415(c)-2(g)(8),
shall be treated as compensation for the limitation year to which the back pay
relates to the extent the back pqy represents wages and compensation that would
otherwise be included under this definition.
(d) Notwithstanding any other provision of law to the contrary,the Board may modify a
request by a participant to make a contribution to the plan if the amount of the
contribution would exceed the limits provided in Code Section 415 by using the
following methods:
1 If the law requires a lump sum payment for the purchase of service credit the
Board may establish a periodic payment deduction plan for the participant to
avoid a contribution in excess of the limits under Code Sections 415(c)or 415(n).
2 If payment pursuant to subparagraph(d) will not avoid a contribution in excess
of the limits imposed by Code Section 415(c) the Board may either reduce the
participant's contribution to an amount within the limits of that section or refuse
the participant's contribution
(e) If the annual additions for any participant for a plan Year exceed the limitation under
Code Section 415(c) the excess annual addition will be corrected as permitted under
the Member Plans Compliance Resolution System (or similar IRS correction
program).
(fl For limitation years beginning on or after January 1 2009 a participant's
compensation for purposes of this subsection shall not exceed the annual limit under
Code Section 401(a)(17 .
Additional Limitation on Pension Benefits. Notwithstanding anything herein to the
contrary:
00857521-1 Page 31
Ord.45-17
P,
(a) The normal retirement benefit or pension payable to a retiree who becomes a
participant me.mbff of the plan and who has not previously participated in such plan,
on or after January 1, 1980,shall not exceed one hundred(100)percent of his average
final compensation. However, nothing contained in this Section shall apply to
supplemental retirement benefits or to pension increases attributable to cost-of-living
increases or adjustments.
(b) No participant mete of the plan who is not now a participant me,�of such plan
shall be allowed to receive a retirement benefit or pension which is in part or in whole
based upon any service with respect to which the participant member is already
receiving, or will receive in the future, a retirement benefit or pension from a
different employer's retirement plan or system. This restriction does not apply to
Social Security benefits or Federal benefits under Chapter 1223 67, Title 10, U.S.
Code.
(c) Notwithstanding any other provision of this plan to the contrary, the annual benefit
to which a participant membe is entitled under the plan shall not, in any limitation
year, be in an amount which would exceed the applicable limitations under Section
415 of the Internal Revenue Code and the regulations issued thereunder.If the benefit
payable under the plan would(but for this Section) exceed the limitations of Section
415 of the Code by reason of a benefit payable under another defined benefit plan
aggregated with this plan under [Internal Revenue] Code Section 415(f), the benefit
under this plan shall be reduced only after all reductions have been made under such
other plan. As of January 1 of each calendar year commencing on or after January 1,
2008, the dollar limitation as determined by the Commissioner of the Internal
Revenue Service for that calendar year shall become effective as the maximum
permissible dollar amount of benefit payable under the plan during the limitation
year ending within that calendar year.
(K) Distribution of Benefits. Notwithstanding any other provision of this plan to the contrary, a
form of retirement income payable from this plan after the effective date of this ordinance,
shall satisfy the following conditions:
(1) If any retirement income is payable before the participant's m&mbff's death: f
(a) It shall either be distributed or commence to the participant meter not later than
April 1 of the calendar year following the later of the calendar year in which the
participant membe-fattains age seventy and one-half(70V2)years or the calendar year
in which he retires.
(b) The distribution shall commence not later than the calendar year defined in
subparagraph(A) above and(1) shall be paid over the life of the participant memb€
or over the lifetimes of the participant m€mbe and his spouse, issue or dependent,
or (2) shall be paid over the period extending not beyond the life expectancy of the j
participant member and his spouse, issue or dependent.
Where a form of retirement income payment has commenced in accordance with the
preceding paragraphs and the participant member dies before his entire interest in the
plan has been distributed, the remaining portion of such interest in the plan shall be
00857521-1 Page 32
Ord.45-17
distributed no less rapidly than under the form of distribution in effect at the time of
the participant's death.
(2) If the participant dies before distributions begin the participant's entire interest will be
distributed or begin to be distributed no later than as follows:
(a) If the participant's surviving spouse is the participant's sole designated beneficiary,
then distributions to the surviving spouse will begin by December 31 of the calendar
year immediately following the calendar year in which the participant died, or by
December 31 of the calendar year in which the participant would have attained age
701/2, if later.
(b) If the participant's surviving spouse is not the participant's sole designated
beneficiary then except as provided in the adoption agreement distributions to the
designated beneficiary_will begin by December 31 of the calendar year immediately
following the calendar year in which the participant died.
(c) If there is no designated beneficiary as of September 30 of the year following the
year of the participant's death the participant's entire interest will be distributed by
December 31 of the calendar year containing the fifth anniversary of the
participant's death.
(d) If the participant's surviving spouse is the participant's sole designated beneficiary
and the surviving spouse dies after the participant but before distributions to the
surviving spouse are required to begin this section(2) other than subsection(2)(a),
will apply as if the surviving spouse were the participant. For purposes of this
section unless subsection(2)(d)applies distributions are considered to begin on the
participant's required beginning date. If subsection (2)(d) applies, distributions are
considered to begin on the date distributions are required to begin to the surviving
spouse under section (2)(d). If distributions under an annuity meeting the
requirements of this article commence to the participant before the participant's
required beteg date (or to the participant's surviving spouse before the date
distributions are required to begin to the surviving spouse under section (2)(a), the
date distributions are considered to begin is the date distributions actually
commence.
If the member's death oeetb-,s before the distribufion of his intefest in the plafl has 7
his entire intff est in the plan shall be distr4buted wi4iift&e (5) years of bis uFAess
7
it is to be distributed in aeeor-danee v4h the fellowiiag rules:
�a� payable spouse,
issue or-
€p€ndent-,
spouse,(b) The remaining interest is to be distributed oveF the life of the
issue or-
sue or-depcndent; and
spouse, issue or- dependent shall reeeive the remaiiiiiig intffest in whieh ease
distributioft need not begin before the date on wbieh the member would have attain
age seventy and one half 1 and if the issue or depmdent dies
years, spouse,
00357521-1 Page 33
Ord.45-17
spouse,befoFe the Elistributioii to the spouse,issue or dependei4 begins,this Seetion shall b-e-
issue
(L) Direct Transfers of Eligible Rollover Contributions.
(1) General. This subsection applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the system to the contrary that would otherwise limit a
distributee's election under this subsection, a distributee may elect, at the time and in the
manner prescribed by the Board,to have any portion of an eligible rollover paid directly
to an eligible retirement plan specified by the distributee in a direct rollover.
(2) Definitions.
Eligible rollover distribution. Any distribution of all or any portion of the balance to
the credit of the distributee, except that an eligible rollover distribution does not include:
any distribution that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for life (or life expectancy) of the distributee or the joint
lives (or joint life expectancies) of the distributee and the distributee's designated
beneficiary, or for a specified period of ten (10) years or more; any distribution to the
extent such distribution is required under Section 401(a)(9)of the Internal Revenue Code;
and the portion of any distribution that is not includable in gross income.
Eligible retirement plan. An eligible retirement plan is 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), and annuity plan described in Section 403(a) of the Internal
Revenue Code, qualified trust described in Section 401(a) of the Internal Revenue Code,
an eligible deferred compensation plan described in Section 457(b) of the Internal
Revenue Code which is maintained by an eligible employer described in Section
457(e)(1)(A) of the Internal Revenue Code, or an annuity contract described in Section
403(b) of the Internal Revenue Code, that accepts the distributee's eligible rollover
distribution.
A portion of a distribution shall not fail to be an eligible rollover distribution merely
because the portion consists of after-tax employee contributions which are not includible
in gross income. However, such portion may be transferred only to (1) a traditional
individual retirement account or annuity described in § 408(a) or b) of the Code (a
traditional IRA) or a Roth individual retirement account or annuity described in § 408A
(a Roth IRA); or (2) to a qualified defined contribution, defined benefit, or annuity
described in § 401(a) or § 403(a) or to an annuity contract described in § 403(b), if such
plan or contract provides for separate accounting for amounts so transferred (including
interest thereon), including separately accounting for the portion of such distribution
which is includible in gross income and the portion of such distribution which is not so
includible.
Distributee. Includes an employee or former employee. In addition, the employee's
or former employee's surviving spouse is a distributee with regard to the interest of the
spouse.
Direct rollover. A payment by the plan to the eligible retirement plan specified by
the distributee.
00857521-1 Page 34
Ord.45-17
(3) Rollovers or Transfers into the Fund. On or after the effective date of Ordinance No. 57-
02 [Jan. 7, 2003], the fund will accept participant m€mb rollover cash contributions
and/or direct cash rollovers of distributions for the purchase of credited service pursuant
to Section 35.093(E), as follows:the plan will accept either a direct rollover of an eligible
rollover distribution or a participant mfr contribution of an eligible rollover
distribution from a qualified plan described in Section 403(a) of the Internal Revenue
Code,from an annuity contract described in Section 403(b)of the Internal Revenue Code,
or from an eligible plan under Section 457(b) of the Internal Revenue Code, which is
maintained by a State, political subdivision of a State, or any agency or instrumentality
of a State or political subdivision of a State.
(4) Direct Rollover to an IRA by Nonspouse Beneficiary. In accordance with Section 829 of
the Pension Protection Act of 2006, on and after the effective date of this subsection the
plan will allow a designated nonspouse beneficiary to make a direct rollover of a
distribution from the plan to an individual retirement account or annuity described in
Section 408(a) or (b) of the Internal Revenue Code. Also, in this case, the determination
of any required minimum distribution under§401(a)(9)that is ineligible for rollover shall
be made in accordance with Notice 2007-7, Q&A 17 and 18, 2007-5 I.R.B. 395.
(M)Early Retirement Incentive.
(1) Effective October 1, 2002, an early retirement incentive program shall be provided in
accordance with this Section.The availability of the early retirement incentive in any plan
year shall be determined by the City. The City shall provide all eligible employees with
at least thirty (3 0) days advance notice that the early retirement incentive will be offered.
The early retirement incentive program shall be voluntary for all eligible employees.
(2) Employees who are one hundred (100) percent vested and within two (2) years of their
earliest normal retirement date during the period that the early retirement incentive is
offered shall be eligible for the early retirement incentive.In the period in which the early
retirement incentive is offered, eligible employees shall be given an opportunity to elect
the early retirement incentive within sixty (60) days following receipt of notice that the
early retirement incentive is being offered. The employee's election shall be made in
writing on a form provided by the City, and shall be irrevocable.
(3) Eligible employees who elect the early retirement incentive shall have their retirement
benefit calculated in accordance with Section 35.097(A), based on credited service and
final monthly compensation as of the last day of employment. There shall be no actuarial
reduction as defined in Section 35.097(B)(2). Employees who elect the early retirement
incentive shall immediately retire and terminate City employment.
(4) Effective September 1, 2007, through September 30, 2007, any eligible employee who
elects the early retirement incentive and any employee age fifty-eight (58) or older who
elects to terminate City employment and retire on or before September 30, 2007, shall
receive up to one additional year of credited service, at no cost to the employee, for the
purpose of calculating the employee's normal retirement income; provided, in no event
shall any employee's credited service exceed thirty(30)years. Effective August 1,2008,
through September 30, 2008, any eligible employee who elects the early retirement
incentive and any employee age fifty-eight (58) or older who elects to terminate City
employment and retire on or before September 30,2008,shall receive up to one additional
00857521-1 Page 35
Ord.45-17
year of credited service, at no cost to the employee, for the purpose of calculating the
employee's normal retirement income; provided, in no event shall any employee's
credited service exceed 30 years.
(5) An employee who elects to receive the early retirement incentive under this subsection
cannot also participate in the Deferred Retirement Option Plan under Section 35.110.
(N) Optional Enhanced Multiplier.
(1) Notwithstanding any provision of the plan to the contrary, an eligible participant may
elect a normal retirement benefit or early retirement benefit equal to three (3) 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. Participants electing this enhanced
multiplier shall thereafter contribute three and forty-five one-hundredths (3.45) percent
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
P
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 paying into the plan 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 participant memb
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.
Alternatively, a participant who also participates in a Section 457(b) plan may purchase
additional credited service in an amount sufficient to provide an additional benefit equal
to the benefit produced by applying the enhanced multiplier provided in this subsection
to some or all periods of continuous service prior to the date of the election, by paying
into the plan Plan the full actuarial cost of such additional benefit, plus the full cost of
any actuarial or other professional services required; with payment for such alternative
purchase made by a direct transfer from the participant's 457(b) account.
(2) The election to receive the enhanced multiplier under this Section must be made in writing
on a form 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 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 City and the union representing participants in a bargaining unit enter into a
collective bargaining agreement that includes the optional enhanced multiplier provided
in this paragraph, such participants who otherwise .meet the eligibility criteria shall
become eligible participants for the purpose of this subsection.
00857521-1 Page 36
Ord.45-17
3
t,
I t
(0) Deminimus Payments. If the present value of any non-forfeitable accrued benefit is less than
five thousand dollars ($5,000.00), at the participant's or beneficiary's request the Committee
may direct that such benefit be distributed in a lump sum, and such lump sum payment shall
fully discharge all liability of the plan with respect to such benefit. rU,,.,, Sum n; P-,ibut;,,n
in&eess of One Thobffmid Delkw±s 1,000.00). Netwithstandii�g any prov4sieii of the plan to
(P) Qualification of Plan. It is intended that this plan shall constitute a qualified public pension
plan under the applicable provisions of the Internal Revenue Code fora qualified plan under
Code Section 401(a) and a governmental plan under Code Section 414(d), as now in effect
and as may be amended from time to time. AU modification or amendment of this plan may
be made retroactively, if necessary or appropriate to maintain qualification.
(Q) Prohibited Transaction. The Board may not engage in any transaction prohibited under
Section 503(b) of the Internal Revenue Code.
Section 7. That Chapter 35, "Employee Policies and Benefits", Section 35.101, "Benefits
Nonassignable", of the Code of Ordinances of the City of Delray Beach is hereby amended to read
as follows:
Sec. 35.101. -- Benefits Nonassignable.
(A) No benefits, rights or accounts shall exist under the plan which are subject in any manner to
voluntary or involuntary anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge and any attempt so to anticipate, alienate, transfer, assign, pledge,
encumber or charge the same shall be void; nor shall any benefit, right, or account be in any
manner liable for or subject to the debts, contracts, liabilities, engagements, torts, or other
obligations of the person entitled to that benefit, right or account, except as specifically
provided in the plan; nor shall any benefit, right or account under the plan constitute an asset
in case of the bankruptcy,receivership, or divorce of any person entitled under the plan.
(B) If a participant or any other person entitled to benefits under the plan becomes bankrupt or
makes an assignment for the benefit of creditors or in any way suffers a lien or judgment
against his personal assets, or in any way attempts to anticipate, alienate, sell, assign,pledge,
encumber, or charge a benefit, right or account, except as specifically provided in the plan,
then that benefit,right or account in the discretion of the Committee may cease and terminate;
and in that event the tmstee—shall, t the difeetion of the-Retirement Committee shall;hold or
apply funds equal in value to that terminated account in the interest of the participant. This
shall include not only distributions directly to the participant at the Committee's discretion but
to or for the benefit of the participant's spouse, children, or other dependents where the
Committee determines this to be appropriate. (See Section 35.102(A)(1) through (3) of this
subchapter for permissible methods of distribution.)
00857521-1 Page 37
Ord.45-17
Section 8. That Chapter 35, "Employee Policies and Benefits", Section 35.102, "Benefits
Payable to Minors and Incompetents", of the Code of Ordinances of the City of Delray Beach is
hereby amended to read as follows:
Sec. 35.102. --Benefits Payable to Minors and Incompetents.
(A) Whenever any person entitled to benefits under this plan is a minor or legally incompetent,
the Committee may,in the exercise of its discretion,direct all or any portion of those payments
to be made in any one or more of the following ways:
(1) To the parent, lawfully appointed legal guardian, or legal representative of the person
entitled to benefits under the plan;
(2) To the spouse,child or other blood relative to be expended on behalf of the person entitled
to benefits under the plan or that person's dependents;
(3) To a recognized charity or nonprofit organization to be expended for the benefit of the
person entitled to benefits under the plan or that person's dependents.
(B) The decision of the Committee will, in each case,be final and binding upon all persons. Any
payment made pursuant to the power herein conferred upon the Committee shall operate as a
complete discharge of the obligations of the ti-astee a Committee.
Section 9. That Chapter 35, "Employee Policies and Benefits", Section 35.103,
"Abandonment of Benefits", of the Code of Ordinances of the City of Delray Beach is hereby
amended to read as follows:
Sec. 35.103. --Abandonment of Benefits.
(A) All participants and any other persons entitled to plan benefits shall keep the Retirement
Committee informed.of their current mailing address at all times.All changes of address shall
be promptly submitted in writing to the Committee. All checks and correspondence will be
sent to the current address on file with the Committee. The�`T����e Committee nor- the
Estee shall not be obliged to search for or ascertain the location of any person.
(B) If the Committee, for any reason, is in doubt as to whether retirement income payments are
being received by the person entitled thereto, it shall, by Registered mail addressed to the
person concerned at the address last known to the Committee, notify the person that:
(1) All unmailed and future retirement income payments shall be henceforth withheld until
the person provides the Committee evidence of continued life and/or correct mailing
address; and
(2) A participant's right to receive retirement income may, at the option of the Committee,
be canceled forever if the participant does not respond or otherwise contact the
Committee within three (3) years following the date payments are withheld pursuant to
subsection(B)(1) of this Section.
00857521-1 Page 38
Ord.45-17
k
Section 10. That Chapter 35, "Employee Policies and Benefits", Section 35.105,
"Administration by Retirement Committee", of the Code of Ordinances of the City of Delray
Beach is hereby amended to read as follows:
Sec. 35.105. --Administration by Retirement Committee.
(A) Retirement Committee Established.
(1) The plan will be administered by the Retirement Committee (herein referred to as the
Committee) appointed by the City Commission, consisting of five (5) members. One
member shall be the Chief Financial Officer of the City. If the Chief Financial Officer
cannot serve for any reason,the Treasurer of the City will take his or her place. The City
members,three 3 of whom may,but need
Commission shall appoint four(4) additional O y,
not,be employees of the City and one that may, but need not be an employee of the City
or the Mayor or City Commissioner.Each appointed member shall serve until a successor
is appointed in like manner.
(2) An individual member of the Committee may resign by delivering his written resignation
to the City Commission and to the other members of the Committee. The City
Commission may remove an individual member of the Committee by so notifying the
member and other Committee members, if any, in writing_ Vacancies on the Committee
shall be filled by City Commission appointment.
(B) Secretary. The Committee may appoint a secretary who may, but need not, be a member of
the Committee. The City shall employ or retain any agents, clerical and other services, legal
counsel, accountants, investment counselors, and actuaries, as may be required to administer
the plan.
(C) Action by Committee.
(1) A majority of the members of the Committee shall constitute a quorum for the transaction
of business and shall have full power to act hereunder.
(2) Committee meetings shall be noticed and open to the public.Meetings shall be conducted
in accordance with rules adopted by the Committee, or by Robert's Rules of Order if the
Committee has not adopted rules.Minutes of all meetings of the Committee and a record
of any action taken by the Committee shall be kept in written form and such record shall
be kept by the secretary appointed by the Committee. Oficial Committee action shall be
by majority vote of a quorum of the Committee.
(3) The Committee may invest and reinvest the assets of the Retirement Trust Fund in any
investment in which assets of the Florida Retirement System may be invested pursuant to
F.S. § 215.47, as that statute may be amended from time to time, or in accordance with a
written investment policy adopted by the Committee in accordance with F.S. _ 1� 12.66,
as that statute may be amended from time to time. The Committee may retain such
professional consultants, aetaffies, advisors and investment managers as it deems
advisable to carry out its responsibilities under this Section.
(4) A member of the Committee may not vote or decide upon any matter relating solely to
that member, or vote in any case in which the member's individual right or claim to any
benefit under the plan is involved. If a Committee member is required to abstain and the
00857521-1 Page 39
Ord.45-17
remaining members of the Committee are unable to decide the matter, the City
Commission may appoint a temporary substitute member to the Committee.
(D) Authority. The Committee shall have the authority to make those rules and regulations and to
take any action as may be necessary to carry out the provisions of the plan and will, subject j
to the provisions of the plan,decide any questions arising in the administration,interpretation,
and application of the plan, which decisions shall be conclusive and binding on all parties.
The Committee may delegate administrative, clerical, professional and other plan-related
functions as it deems necessary and prudent.
(E) Additional Powers. In order to effectuate the purposes of the plan, the Committee shall have
the power to construe the plan, to supply any omissions therein,to reconcile and correct any
errors or inconsistencies, and to make equitable adjustments for any mistakes or errors made
in the administration of the plan.
(F) Liability. No member of the Committee shall be liable for any loss unless resulting from that
member's fraud or willful misconduct,and no member shall be personally liable upon,or with
respect to, any agreement, act,transaction, or omission made in good faith as a member of the
Committee.No member of the Committee shall be liable for the actions of other members, or
the actions of any agent, representative, or employee of the Committee. The Committee and
any individual member of the Committee and any agent thereof shall be entitled to rely on the
advice of professional consultants and advisors employed or retained by the City, including
but not limited to Attorneys, accountants, investment advisors and actuaries.
(G) Actuary's Responsibilities.
(1) The actuary will do any technical and advisory work as the Committee may request,
including analysis of the experience of the plan from time to time, the preparation of
actuarial tables for the making of computations thereunder, and the submission of an
actuarial report as of the anniversary date of the plan each year to the City and the
Committee, which report shall contain an actuarial valuation showing the financial
condition of the plan, a statement of the contributions to be made by the City for the
ensuing year, and any other information as may be required by the Committee.
(2)
fetifement ineome, of upon termination of the plan, and in all other instanees in v��e
aeWarial eoinputations are requi-red,gie aetuafy shall use these assumptions of mortality
and interest fates as weFe employed in the most r-eeent actua-rial vaIuafion of the plan, ar-,
at the opfion of the S
those ass:u�tions as are deeided upon jointly by
aetuafy and the Gomnai#ee as being reaseRable at the time the ealculations afe made. The
actuarial assumptions and the computations made therefrom adopted by the Committee
shall be conclusive and binding on all persons. Neither theme Cornrnittee nor the; City
arae shall no4 be liable for any mistakes or errors in any computations made in
good faith.
(I� State Law. The plan will be construed, enforced and administered according to the laws of the
State of Florida.
00657521-1 Page 40
Ord.45-17
- f
i
f
Section 11. That Chapter 35, "Employee Policies and Benefits", Section 35.1051, Claims 4
Procedure"; of the Code of Ordinances of the City of Delray Beach is hereby amended to read as
follows:
Sec. 35.1051. --Claims Procedure.
(A) Claims ofAffected Persons.
(1) The Committee shall grant an initial hearing upon receipt of a written request("Claim"),
on matters which affect the substantial rights of any person ("Claimant"), including
participants, active or retired, beneficiaries, or any person affected by a decision of the
Committee.
(2) The Committee shall review the Claim at an initial hearing and enter an order within sixty
(60)days from the date of receipt of the Claim and,in the case of disability claims,receipt
by the Committee of a completed application and signed authorization for the release of
medical records on a form approved by the Committee. The Committee may extend the
time for entering the order at an initial hearing for an additional forty-five (45) days if it
determines such time is necessary for full discovery and adequate review.The Committee
and the Claimant may stipulate to further extensions of time.
(B) Initial Hearing.
(1) At the initial hearing, the only evidence to be considered by the Committee shall be
documentary evidence contained in the Claimant's pension file,including,but not limited
to, correspondence,medical records and reports of treating physicians and/or examining
physicians and evidence received pursuant to paragraph(2).
(2) Other than questions from the Committee, there will be no taking of additional evidence
at the initial hearing, except that the Claimant and/or his representative will be afforded
fifteen (15) minutes to make a presentation, which shall be limited to comments and/or
arguments as to the evidence or information already contained in the Claimant's pension
file, including the report of the examining physician.
(3) Upon completion of the review of the Claim at the initial hearing, the Committee shall
enter an order setting forth its findings and conclusions on the Claim. The written order
shall be provided to the Claimant. The order shall include:
(a) The specific findings and conclusions of the Committee, including specific
references to pertinent provisions of the system on which such conclusions are based;
(b) A description of any additional material or information that the Committee may deem
necessary for the Claimant to perfect his Claim,together with the reasons why such
material or information is necessary; and
(c) An explanation of the Claimant's right to a full hearing on the Claim and the time
limit in which a full hearing must be requested in writing.
(4) The decision of the Committee at the initial hearing shall not be final until after the time
has expired to request a full hearing or, if a full hearing is requested,until the Committee
makes a decision at the conclusion of the full hearing.
(C) Full Hearing.
00857521-1 Page 41
Ord.45-17
(1) Any Claimant may request a full hearing on the issues presented to the Committee at an
initial hearing and upon which the Committee has entered an order as provided in
subsection(B)paragraph(3) of this Section.
(2) A full hearing must be requested by the Claimant within thirty(3 0) days of the receipt of
the Committee's order. The order will be deemed received three (3) days following the
date it is mailed to Claimant at the address provided to the Committee by Claimant.
(3) Upon receipt of the request for a full hearing and considering the amount of discovery
which might be conducted, the Committee shall establish a date for the full hearing and
cause notice to be given to the Claimant. The full hearing shall be held within ninety(90)
days from the receipt of the request from the participant m€-mb€ . The full hearing may
be postponed,if necessary and with the consent of the Claimant,to permit full discovery
of the facts.
(4) Copies of all documents to be offered into evidence at the full hearing, including
depositions, and a complete witness list with names and addresses of witnesses expected
to be called, shall be furnished to the Committee by the Claimant at least twenty(20)days
prior to the full hearing. Documents not furnished to the Committee within the prescribed
time limit may be excluded from evidence at the full hearing if a reasonable explanation
is not provided for the delay in providing the documents.
(5) A Claimant or the Committee may obtain discovery by deposition and/or interrogatories
prior to the full hearing. Written notice of any depositions and/or interrogatories shall be
given to the Committee and the Claimant.
(6) The costs of any discovery,except discovery requested by the Committee,the appearance
of witnesses at the hearing, and the making of a verbatim record of the proceedings shall
be the responsibility of the Claimant.
(7) The Claimant shall be responsible for the appearance of any witnesses called to testify by
the Claimant at the hearing.
(8) Testimony at the full hearing may be submitted in the form of a deposition. Since it will
give the Committee more time for review and consideration, the Committee prefers that
testimony be submitted by deposition. Depositions timely submitted will be part of the
record before the Committee at the full hearing and will not be read in totality at the full
hearing; provided, however, that this does not preclude the Claimant or the Committee
from reading parts of depositions at the full hearing.
(9) Irrelevant and unduly repetitious evidence shall be excluded.
(10)The file maintained by the Committee, including but not limited to various medical
reports therein, is part of the record before the Committee at the full hearing.
(11)All proceedings of the Committee shall be conducted in public.
(12)In cases concerning an application for pension benefits, including applications for
disability retirement benefits,the burden of proof, except as provided by law, shall be on
the participantmembe seeking to show entitlement to such benefits.
00857521-1 Page 42
Ord.45-17
(13)In cases concerning termination of pension benefits including reexamination of E
participants members receiving disability retirement benefits, the burden of proof shall
be on the Committee.
(14)Except as to those records which are exempted from the provisions of F.S. Chapter 119,
Florida's Public Record Law, records maintained by the Committee are open for
inspection and/or copying during normal business hours at a reasonable cost for the
copying.
(15)Should a Claimant requesting an initial or full hearing decide to appeal any decision made
by the Committee, with respect to any matter considered at such hearing, the Claimant
requesting an initial or full hearing will need a record of the proceedings and may need
to assure that.a verbatim record of the proceedings is made. The Claimant requesting an
initial or full hearing will be responsible for obtaining a court reporter or otherwise
making a record of the proceeding before the Committee.
(16)The decisions of the Committee after the requested full hearing shall be final and binding.
(17)Within fifteen (15) days after making a decision at the full hearing, the Committee shall
enter a final order setting forth its findings and conclusions and a copy of the order shall
be provided to the Claimant.
(18)Judicial review of decisions of the Committee shall be sought by the filing of a timely
petition for writ of certiorari with the Appellate Division of the Circuit Court for Palm
Beach County.
(D) Conduct of the Full Hearing.
(1) The Committee Chairman shall preside over the hearing and shall rule on all evidentiary,
procedural,and other legal questions that arise during the hearing.The Chairman's rulings
shall stand unless overruled by all other members present. The Chairman shall open the
fall hearing by explaining the procedures to be followed.
(2) The Claimant shall have the right to be represented by counsel or be self-represented. The
City Attorney shall advise the Committee.
(3) The Claimant shall be allowed to make an opening statement not to exceed ten (10)
minutes.
(4) Testimony of witnesses shall be under oath or affirmation. Depositions or affidavits shall
be admissible if agreed upon by the Claimant and the Committee or the City Attorney.
(5) The Chairman, any member, the City Attorney, the Claimant or the Claimant's counsel,
upon recognition by the Chairman, may direct questions to any witness during the
proceedings.
(6) The Claimant and the City Attorney shall have the right to present evidence relevant to
the issues, to cross examine witnesses, to impeach witnesses and to respond to the
evidence presented.
(7) The Claimant shall be permitted a closing argument not to exceed fifteen(15)minutes.
(8) The Committee shall deliberate and reach a decision following closing argument, and
thereafter enter a written order as provided herein.
008s7521-1 Page 43
Ord.45-17
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(E) Disability Claims Additional Procedures.
(1) All applications for disability pensions shall be in writing. Forms for such applications
may be provided by the Committee. The disability claimant shall also be required to
submit a completed authorization for release of iredical records on a form provided by
the Committee.
(2) Upon receipt of the properly completed application and authorization for release of
medical records, the Committee may request medical records from all relevant treating
physicians, personnel records from the employer, copies of relevant workers'
compensation records, and copies of other records deemed to be relevant to the Claim.
The Committee shall pay the cost of any medical examinations required by the Committee
and for copies of medical records.
(3) Upon the Committee's receipt of all requested medical records concerning the Claimant,
an independent medical examination (IME) may be scheduled with an appropriate
physician who will be asked to render an opinion about the Claimant's medical condition
as it relates to the Claimed disability.
(4) Upon receipt of the IME report from the examining physician, the City Attorney will
provide all records of treating physicians,relevant workers'compensation claims records,
the independent medical evaluation, and all other relevant documents to the Committee
for inclusion in the Claimant's pension file, and the Committee shall then schedule the
initial hearing.
Section 12. That Chapter 35, "Employee Policies and Benefits", Section 35.106, "Trust Fund
and Trustee",of the Code of Ordinances of the City of Delray Beach is hereby amended to read as
follows:
Sec. 35.106. —Trust Fund an ate.
(A) A Trust Fund will be created and maintained for the purpose of the plan,and Trust Fund assets
will be invested in accordance with investment policies adopted by the Committee and
approved by the City Commission. All contributions will be paid into the Trust Fund and all
plan benefits under the plan will be paid from the Trust Fund.
(B) Any person having any Claim under the plan will look solely to the assets of the Trust Fund
for satisfaction. In no event will the City or any of its officials, employees, Commissioners,
or agents be liable in their individual capacities to any person whomsoever, under the
provisions of the plan or of the trust agreement.
(C) The Trust Fund will be used and applied only in accordance with the provisions of the plan,
to provide the benefits thereof, and no part of the corpus or income of the Trust Fund will be
used for, or diverted to,purposes other than for the exclusive benefit of participants and other
persons entitled to plan benefits, except to the extent provided in Sections 35.096 and 35.109
with respect of this subchapter with respect to expenses of administration and termination of
the plan, respectively.
00857521-1 page 44
Ord. 45-17
f
Section 13. That Chapter 35, "Employee Policies and Benefits", Section 35.108,
"Amendment of Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended
to read as follows:
Sec. 35.108. --Amendment of Plan.
(A) The plan may be amended by the City from time to time in any respect whatever,by ordinance
by the Commission specifying the amendment, subject only to the following limitations:
(1) Under no condition shall the amendment result in or permit the return or repayment to the
City of any property held or acquired by the plantniste& ,.,v,. ufi4er-, or the proceeds
thereof, or result in or permit the distribution of any property for the benefit of anyone
other than the participants and their beneficiaries or joint pensioners, except to the extent
provided by Sections 35.096 and 35.109 of this subchapter with respect to expenses of
administration and termination of the plan,respectively.
(2) Under no condition shall the amendment change the duties or responsibilities of the
Committee#p&stee unless the Committeetrxstee is given advance notice of and an
opportunity to comment on the change.
(B) Subject to the foregoing limitations, any amendment may be made retroactively which, in the
judgment of the Commission, is necessary or advisable provided that the retroactive
amendment does not deprive a participant of the right to receive plan benefits to which the
participant is otherwise entitled,except for amendments that are necessary to comply with any
laws or regulations of the United States or the State of Florida, or to qualify the plan as a tax-
exempt plan and trust.
Section 14. That Chapter 35, "Employee Policies and Benefits", Section 35.109,
"Termination of Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended
to read as follows:
Sec. 35.109. -- Termination of Plan.
(A) The plan may be terminated by the City at any time by delivering to the Committee andtrustee
in writing an ordinance of the Commission,duly certified by an official of the City, specifying
that the plan is being terminated or contributions thereunder are being permanently
discontinued. The plan shall otherwise terminate only upon adjudication by a court of
competent jurisdiction that the City is bankrupt or insolvent (whether the proceedings be
voluntary or involuntary), dissolution of the City or upon its liquidation, merger, or
consolidation without provisions being made by its successor, if any, for the continuation of
the plan.
(B) Upon termination of the plan for any reason, or upon written notice to the Committeet€e
that contributions thereunder are being permanently discontinued, or upon discontinuation of
contributions for other than a temporary period, the Trust Fund shall be apportioned and
distributed in accordance with the following procedure:
(1) The Retirement Committee, subject to approval of the Commission, shall determine the
date of distribution and the asset value to be distributed, after taking into account the
expenses of that distribution.
00857521-1 Page 45
Ord.45-17
(2) The Committee, subject to approval of the Commission, shall determine the method of
distribution of plan assets, and shall apportion those assets as follows:
(a) An amount equal to each participant's contribution less the aggregate of any
retirement income payments made to that participant will be determined, and that
amount will be apportioned from the asset value. The asset value, if insufficient to
provide that amount in full, will be apportioned among those participants in
proportion to the amounts determined with respect to them.
(b) Apportionment will next be made with respect to each retired participant receiving a
retirement income through the plan on the plan termination date, each person
receiving a retirement income on that date on account of a deceased participant or a
retired (but since deceased) participant, and each participant who has, by that date,
become eligible for normal retirement but has not yet retired,in the amount required
to provide the retirement income; provided that, if the asset value is less than the
aggregate of those amounts,the amounts will be proportionately reduced so that the
aggregate of the reduced amounts will be equal to the asset value.
(c) If there is any asset value remaining after the apportionment under subdivision
(13)(2)(a) and (b) of this Section, apportionment shall next be made with respect to
each participant or former participant who has both attained the age of fifty-five(55)
years and completed at least fifteen (15) years of credited service, or has completed
twenty (20) years of credited service, but has not yet begun to receive retirement
income under the plan.Apportionment shall be made to such participants and former
participants in the amount required to provide the actuarial equivalent of the
retirement income accrued to the plan termination date; provided that, if the
remaining asset value is less than the aggregate of the amounts to be apportioned,
those amounts shall be proportionately reduced so that the aggregate of the reduced
amounts will be equal to the remaining asset value.
(d) If there is any asset value remaining after the apportionments under divisions
(13)(2)(a), (b) or(c) of this Section, apportionment shall next be made with respect to
each participant in the service of the City on that date who is not entitled to an
apportionment under divisions (13)(2)(a), (b) or (c) of this Section, but who has
completed at least five(5)years of credited service,in the amount required to provide
the actuarially equivalent single-sum value of the vested deferred retirement income
accrued to the date of plan termination. However, if the remaining asset value is less
than the aggregate of the amounts apportioned, the latter amounts shall be
proportionately reduced so that the aggregate of those reduced amounts will be equal
to the remaining asset value.
(e) If there is any asset value remaining after the apportionments under divisions
(13)(2)(a)through(d) of this Section, apportionment shall next be made with respect
to each participant in the service of the City on such date who is not entitled to an
apportionment under division(13)(2)(a), (b), (c) or (d) of this Section, in the amount
required to provide the actuarially equivalent single-sum value of the nonvested
deferred retirement income accrued to the date of plan termination. If the remaining
asset value be less than the aggregate of the amounts to be apportioned hereunder,
00857521-1 Page 46
Ord.45-17
1
I
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those latter amounts shall be proportionately reduced so that the aggregate of the
reduced values will be equal to the remaining asset value.
(f) In the event that there is asset value remaining after the fall apportionments specified
in divisions (B)(2)(a)through(e) of this Section,and under the provisions of Section
35.097(I) of this subchapter,the excess shall be returned to the City.
(3) The order of priorities for, and the amounts of, distribution set forth in division(B)(2) of
this Section shall be subject to the limitations provided by Section 35.097(I) of this t
subchapter, and to the distributions not being determined to be otherwise discriminatory u
by the Internal Revenue Service. In the event either the limitations under Section
35.097(I) of this subchapter become effective or the Internal Revenue Service rules that
the distributions are otherwise discriminatory, adjustment may be made in the priorities
and amounts of distribution as may be required to satisfy the requirements of subsection
35.097(I) of this subchapter or the Internal Revenue Code.
(4) As soon as practicable after receipt by the City of a determination letter from the Internal
Revenue Service stating that the method of distribution in this Section will not adversely
affect the continued qualified status of the plan, the Retirement Committee shall &et
the+,. stee t distribute, in accordance with the manner of distribution determined by the �
Committee, the amounts apportioned under divisions (B)(2) or (3) of this Section, or as
may otherwise be required by law.
Section 15. That Chapter 35, "Employee Policies and Benefits", Section 35.110, "Deferred
Retirement Option Plan", of the Code of Ordinances of the City of Delray Beach is hereby
amended to read as follows:
Sec. 35.110. --Deferred Retirement Option Plan.
(A) Beginning with the first pay period after September 1, 1999, any employee who is eligible for
normal retirement, as defined in Section 35.089(G), may elect to participate in the Deferred
Retirement Option Plan ("DROP"), except as provided in Section 35.110(L), in accordance
with this Section.An employee is considered retired for pension plan purposes upon entering
into the DROP plan.
(B) An election to participate in the DROP plan must be made in writing and shall become
effective thirty (30) days following the date it is received by the Retirement Committee or
pension plan administrator, or on a later date if specified by the employee.
(C) An employee who elects to participate in the DROP plan may participate in such plan for a
maximum of sixty(60)months.
(D) An employee's credited service and accrued benefit under the system shall be determined on
the effective date of the employee's election to participate in the DROP plan. An employee
shall not accrue any additional benefit under the plan after entering the DROP plan, except as
afforded other eligible retirees under the plan. After entering the DROP plan, a participant
shall not be eligible for disability or pre-retirement death benefits under the retirement plan.
(E) A DROP plan account shall be established for each employee who elects to participate in the
DROP plan in accordance with this Section.During the period of the employee's participation
00857521_1 Page 47
Ord.45-17
r
in the DROP plan,the employee's normal retirement benefit shall be paid into the employee's
DROP plan account. The employee's DROP plan account shall be invested by the Retirement
Committee and credited with interest equal to the overall net (earning less costs) investment
rate of return on the retirement plan assets during the period of the employee's participation
in the DROP plan. Provided, however, the Committee, in its sole discretion, may establish a
separate plan for DROP accounts that would be invested by the retiree and for which special
rules may be applied consistent with Internal Revenue Service regulations.
(F) At the conclusion of the retiree's participation in the DROP plan, and as a condition of
participating in such plan, the retiree will continue his retirement and terminate City
employment. The retiree will thereafter receive a normal retirement benefit at the same rate
as previously calculated but the monthly amount will be paid to the retiree and not deposited
in the DROP plan account. The retiree's DROP plan account will thereafter be distributed to
the retiree in a cash lump sum,unless the retiree elects an alternative distribution as described
below:
(1) Payments in approximately equal quarterly or annual installments over a period
designated by the retiree not to exceed the life expectancy of the retiree or the joint life
expectancy of the retiree and the retiree's designated beneficiary. In the event that the
retiree dies before all installments have been paid, the remaining balance in the DROP
plan account shall be paid in an immediate cash lump sum to the retiree's designated
beneficiary; or
(2) The purchase of a nonforfeitable fixed annuity payable in such form as the employee may
elect. Elections shall be in writing and shall be made at such time or in such manner as
the Retirement Committee shall determine. If the annuity form selected is not a qualified
joint and fifty (50) percent survivor annuity with the retiree's spouse as the beneficiary,
the annuity payable to the retiree and thereafter to the retiree's beneficiary shall be subject
to the incidental death benefit rule as described in Section 401(a)(9)(G) of the Internal
Revenue Code and applicable regulations.
(G) Notwithstanding the provisions of paragraph (F), if a retiree dies before distribution of the
retiree's DROP plan account commences, the account balance shall be paid to the retiree's
designated beneficiary in such optional form as the beneficiary may select. Notwithstanding
the provisions of paragraph (F), if the Retirement Committee adopts a separate plan in
accordance with Section 35.110(E), distribution in accordance with rules established by the
Retirement Committee under such separate plan will apply.
(H) Except as otherwise provided in this Section, distribution of an employee's DROP plan
account shall begin as soon as administratively practicable following the employee's
termination of employment. A retiree may, in accordance with such procedures as the
Retirement Committee may prescribe, elect to defer distribution of the DROP plan account
until the first day of any month coincident with or following the termination of the retiree's
City employment; provided, however, distribution shall be made before the distribution date
elected by the employee to the extent necessary to comply with the Internal Revenue Code
and regulations thereunder. Any amounts in a retiree's DROP plan account shall continue to
be invested by the Retirement Committee and shall be credited with the net investment return
on the Retirement Fund until the balance of the DROP plan account is fully distributed to the
retiree or the retiree's beneficiary. Provided,however,if the Committee establishes a separate
00857521-1 Page 48
Ord.45-17
plan as set forth in Section 35.110(E), the earnings will be invested and distributed pursuant
to the rules of the separate plan.
(I) In no event shall the provisions of this Section operate so as to allow the distribution of a
retiree's DROP plan account to begin later than April I following the later of the calendar year
in which the retiree terminates city employment or attains age seventy and one-half(70V2).
(J) Notwithstanding any other provisions of this Section,all distributions from retiree DROP plan
accounts shall conform to applicable provisions of the Internal Revenue Code and regulations
issued thereunder and as provided under a separate plan if adopted by the Retirement
Committee.
(K) Notwithstanding any provision of this Section to the contrary, a retiree or beneficiary
receiving distributions from a DROP plan account may elect, at the time and in a manner
prescribed by the Retirement Committee, to have any portion of an eligible rollover
distribution paid directly from the DROP plan account to an eligible retirement plan specified
by the retiree or beneficiary in a direct rollover; provided, however, if the Committee
establishes a separate plan as set forth in Section 35.110(E), the eligible rollover distribution
of the DROP plan allotment will be distributed pursuant to the rules of the separate plan. The
following defmitions apply to the terms used in this paragraph:
(1) Eligible Rollover Distribution. Any distribution of all or any portion of the balance to the
credit of the distributee under the DROP plan, except that an eligible rollover distribution
does not include any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually)made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and the
distributee's designated beneficiary, or for a specified period of ten (10) years or more,
any distribution to the extent such distribution is required under Section 401(a)(9) of the
Internal Revenue Code, and the portion of any distribution that is not includable in gross
income.
(2) Eligible Retirement Plan. 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, an annuity plan described in Section 403(a) of the
Internal Revenue Code, or a qualified trust described in Section 401(a) of the Internal
Revenue Code, that accepts the distributee's eligible rollover distribution. However, in
the case of an eligible rollover distribution to the surviving spouse, an eligible retirement
plan is an individual retirement account or individual retirement annuity.
(3) Distributee. An employee or former employee. In addition, the employee's or former
employee's surviving spouse is a distributee with regard to the interest of the spouse.
(4) Direct Rollover. A payment by the DROP plan to the eligible retirement plan specified
by the distributee. The direct rollover may be accomplished by any reasonable means
.determined by the Retirement Committee.
(L) The DROP is not a separate retirement plan; it is part of the plan. Upon termination of
employment, a participant is entitled to a lump sum distribution of his or her DROP account
balance or may elect a rollover. The DROP account distribution is in addition to the
participant's monthly benefit.
00857521-1 Page 49
Ord.45-17
I'
(M) Notional account The DROP account established for such a participant is a notional account,
used only for the purpose of calculation of the DROP distribution amount. It is not a separate
account in the plan.
(N) No employer discretion The DROP benefit is determined pursuant to the provisions of this
section which do not involve employer discretion.
(0) IRC limit The DROP account distribution along with other benefits payable from the
system is subject to limitation under Internal Revenue Code Section
the City shall 3aot be allowed to paAieipate in the DROP plan. Should the City and the affeete
pa-AieipaHts sh-a4l be allewed to ei#er- into the DROP plan as of the date 4ie eelleetive
Section 16. Severability. The provisions of this Ordinance are declared to be severable
and if any section, sentence, clause or phrase of this Ordinance shall for any reason be held to be
invalid or unconstitutional, such decision shall not affect the validity of the remaining sections,
sentences, clauses, and phrases of this Ordinance but they shall remain in effect, it being the
legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part.
Section 17. Inclusion in the Code. It is the intention of the City Commission, and it is
hereby ordained that this Ordinance shall become and be made a part of the City of Delray Beach
City Code;that the sections of this Ordinance may be renumbered or relettered to accomplish such
intention; and that the word "Ordinance" shall be changed to "Section" or other appropriate word.
Section 18. Effective Date. That this Ordinance shall be effective immediately upon its
passage on second and final reading.
PASSED AND ADOPTED in regular session on second and final reading on this the 5"' day of
December, 2017.
m
t
MAYOR w
Attest:
�. 'V
'Y
City Clerk
00657521-1 Page 50
Ord.45-17
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First Reading:November 20, 2017
Second Reading: December 5, 2017
APPROVED AS TO FORM
LEGAL SUFFI CY �
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R/Max Lolftn6l,City Attorney
D0857521-1 Page 51
Ord.45-17