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Ord 56-02ORDINANCE NO. 56-02 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35, "EMPLOYEES POLICIES AND BENEFITS", SUBHEADING "RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING SUBSECTION C, "CREDITED SERVICE", OF SECTION 35.089, "DEFINITIONS", AND CREATING A NEW SECTION 35.0934 TO ~AI.I.OW PARTICIPANTS WITH AT LEAST FIVE YEARS OF CREDITED SERVICE TO PURCHASE UP TO THREE YEARS OF CREDITED SERVICE BASED ON PRIOR GOVERNMENTAL SERVICE; PROVIDING A GENERAL REPEALER CLAUSE; PROVIDING A VALIDITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DF.I.RAY BEACH AS FOLLOWS: Section 1. That Chapter 35, "Employee Policies and Benefits", subheading, "Retirement Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended by mending subsection (C), "Credited Service", of Section 35.089, "Definitions", to read as follows: Section 35.089 DEFINITIONS. (C) "(~r~dited service" means 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 Sec. 35.093 or Sec. 35.094 of this subchapter, and the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended from time 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 00) 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, as amended from time to time. Section 2. That Chapter 35, "Employee Policies and Benefits", subheading, "Retirement Plan", of the Code of Ordinances of the City of Dekay Beach is hereby amended by creating a new Section 35.094, "Purchase of Additional Credited Service", to read as follows: Section 35.094 PURCHASE OF ADDITIONOAL 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 member shall receive only the mount 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: Cash lump sum pa.vment. Direct transfer or rollover of an el'Lgible rollover distribution from a qualified plan. in accordance with Sec. 35.097(L). Time payment plan. Under this option the member 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 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. Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 4. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof. Section 5. That this ordinance shall become effective mediately upon its passage on second and final reading, except as to employees who are covered by a collective bargaining agreement. This ordinance shall become effective as to the excluded employees immediately upon 2 ORD. NO. 56-02 the date of ratification and execution of a collective bargaining agreement or memorandum of understanding that includes the provisions of this ordinance. the ~r PAStSjED AND ADOPTED in · day of 50~ ,200~. regular session on second and final reading on this MAYOR ~t~ Clerk First Reading Second Readine ~ · 3 ORD. NO. 56-02 MEMORANDUM TO: FROM: SUBJECT: DATE: MAYOR AND CITY COMMISSIONERS CITY MANAGER~ ORDINANCE NO. 56-02 POLICIES AND BENEFITS") - REGULAR MEETING OF JANUARY 7. 2003 (AMENDING CHAPTER 35, "EMPLOYEE JANUARY 3, 2003 This ordinance is before Commission for second reading and public hearing amending Chapter 35, "Employee Policies and Benefits", subheading "Retirement Plan", of the City Code of Ordinances by enacting a new Section 35.094 to allow participants in the General Employees Retirement Plan to purchase prior government service provided they have not entered the City's Deferred Retirement Option Plan. At the first reading on December 10, 2002, the City Commission passed this ordinance. This ordinance has been submitted to our actuaries for their review. We expect to receive their report on Monday. Recommend approval of Ordinance No. 56-02 on second and final reading; providing we have received the actuarial report and it is satisfactory. S:\C~ty Clerk\chevelle folder\agenda memo. Ord 56 02.1.07.03.doc CITY OF DELRrlV BErI£H CiTY ATTORNEY'S OFFICE 200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444 TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755 1993 DATE: TO: FROM: SUBJECT: Writer's Direct Line: 561/243-7091 MEMORANDUM December 4, 2002 City Commission Susan A. Ruby, City Attorney General Employees' Pension Plan Revisions Attached are revisions to the General Employees' Pension Plan. Also attached is a memorandum summarizing these changes. By copy of this memorandum to David Harden, City Manager, we are requesting that these ordinances be placed on the December 10, 2002 City Commission agenda. If you have any questions, please feel free to contact me. SAR:jw~~~- Attachments CC: David Harden, City Manager Barbara Garito, City Clerk ATTORNEYS AT LAW Helping Shape Florida's Future® REPLY TO: TALLAHASSEE Erie Ash Kristin Bennett W. O. Birchfleld Jody Lane Brooks William G. Capko Beth Ann Carlson Micbelle Diffenderfer Robert P. Diffenderfer Kenneth W. Dodge Amy M. Dukes Brenna Malouf Durden Laura Jacobs Feagin Roslynn M. Ferguson Wayne E. Flowers John W. Forehand Walter E. Forehand Melissa Gross-Arnold Kevin S. Hennessy R. Steven Lewis Terry E. Lewis James W. Linn Anne Longman G. Stephen Manning David E. Ramba Kepneth G. Sp,ilias Edwin A. Steinmeyer Glenn E. Thomas Stephen A. Walker www.llw-law.com Jacksonville Office 9428 Baymeadows Road Suite 625 Jacksonville, Florida 32256 (904} 737-2020 Fax: (904) 737-3221 Tallaha.¢see Office Post Office Box 10788 (32302} 125 Snuth Gadsden Strec! Suite 300 Tnllaha~ee. Florida 32301 (850) 222-5702 Fax: (850) 224-9242 West Palm Beach Office 1700 Palm Beach Lakes Boulevard, Suite 1000 West Palm Beach. Florida 33401 (561) 640-0820 Fax: (561) 640-8202 MEMORANDUM TO: Susan Ruby, City Attorney City of Delray Beach FROM: James W. Linn DATE: November 21, 2002 Ordinances Amending the General Employees' Retirement Plan This memo summarizes the attached draft ordinances amending the General Employees' Retirement Plan. 1. Purchase of Prior Government Service Under the General Pension Plan--This ordinance creates a new Section 35.094 which would allow a participant in the General Employees' Retirement Plan who has at least five years of credited service based on City employment and who has not entered the DROP to purchase up to three additional years of credited service, in years and tenths of a year, for a like period of previous full-time employment with a federal, state or local government agency (other than the City of DeLray Beach). The participant would have to pay the full actuarial cost of such credited service and the cost of any required actuarial calculations. No service credit would be allowed if the participant will receive any other retirement benefit based on the prior government service. Payment for the credited service could be made in a lump sum, by a direct transfer or rollover from a section 403(b) or 457 plan, or through installment payments deducted fi'om the employees' pay over a maximum period of five years. 2. Participation in General Pension Plan of Previously Excluded Persons--Amends the General Employees' Retirement Plan to allow certain employees who were previously excluded from the plan to participate in the plan by making a written election to do so. The affected employees are the city manager (and assistants), city attorney (and assistants), and department heads who previously elected not to participate in the plan. An employee who wants to participate in the plan would have to submit a written election within 90 days following adoption of the ordinance, or within 90 days following their date of employment in one of these positions, whichever is later. The written election to participate in the plan is irrevocable. Any employee who does not November 21, 2002 Page 2 submit a timely written election to participate in the plan shall not participate in the plan for as long as he or she is employed by the City in one of the identified positions. The ordinance also allows previously excluded employees who join the plan to buy credited service under the plan, in years and tenths of a year, for some or all of their previous City employment. Employees choosing this option will be required to pay the full actuarial cost of the credited service and the cost of any required actuarial calculations. Payment could be made in a lump sum, by a direct transfer or rollover from a section 403(b) or 457 plan, or through installment payments deducted from the employees' pay over a maximum period of five years. Please call me if you have any questions concerning the attached ordinances. JWL/es Attachments ORDINANCE NO. 56-02 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35, "EMPLOYEES POLICIES AND BENEFITS", SUBHEADING "RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING SUBSECTION C, "CREDITED SERVICE", OF SECTION 35.089, "DEFINITIONS", AND CREATING A NEW SECTION 35.0934 TO ALLOW PARTICIPANTS WITH AT LEAST FIVE YEARS OF CREDITED SERVICE TO PURCHASE UP TO THREE YEARS OF CREDITED SERVICE BASED ON PRIOR GOVERNMENTAL SERVICE; PROVIDING A GENERAL REPEALER CLAUSE; PROVIDING A VALIDITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH AS FOLLOWS: Section 1. That Chapter 35, "Employee Policies and Benefits", subheading, "Retirement Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended by amending subsection (C), "Credited Service", of Section 35.089, "Definitions", to read as follows: Section 35.089 DEFINITIONS. (C) "Credited service" means 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 Sec. 35.093 or Sec. 35.094 of this subchapter, and the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended from time 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, as amended from time to time. Section 2. That Chapter 35, "Employee Policies and Benefits", subheading, "Retirement Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended by creating a new Section 35.094, "Purchase of Additional Credited Service", to read as follows: Section 35.094 PURCHASE OF ADDITIONOAL CREDITED SERVICE FOR PRIOR MILITARY OR GOVERNMENT EMPLOYMENT. A participant with at least five (5) years of credited service based on Ci_ty 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, coun _ty, or ci_ty 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 Ci _ty. 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 Ci_ty employment, whichever occurs earlier. In the event full payment is not made prior to such date, the member shall receive only the mount 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: Cash lump sum payment. Direct transfer or rollover of an eligible rollover distribution fi'om a qualified plan, in accordance with Sec. 35.097(L). Time payment plan. Under this option the member 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 remm of the plan, and the credited service purchased shall not be credited until all 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. Section 3. That all ordinances or parts of ordihances in conflict herewith be, and the same are hereby repealed. Section 4. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof. Section 5. That this ordinance shall become effective immediately upon its passage on second and final reading, except as to employees who are covered by a collective bargaining agreement. This ordinance shall become effective as to the excluded employees 2 ORD. NO. 56-02 immediately upon the date of ratification and execution of a collective bargaining agreement or memorandum of understanding that includes the provisions of this ordinance. the PASSED AND ADOPTED in regular session on second and final reading on this day of ., 2002. MAYOR ATTEST: City Clerk First Reading Second Reading 3 ORD. NO. 56-02 01/06/03 13:02 FAX id] tJl/~,'ll 11 GABRIEL, ROEDER. SMITH & COMPANY Con~ultan~ & Actuarie~ 301 East Las Otas Blvd · Suite 200 · F! L~uderdale, FL 33301..2254 - 954 527 1616 · FAX 9~-~4-h2.',-00It3 January 6, 2003 Mr. Charles Slav~n, Actuary Bureau of Local Retirement Systems Division of Retirement Cedars Executive Center, Bldg. C 2639 North Monroe Street Tallahassee, Florida 32399-1560 Re. Actuarial Impact Statement for the Retirement Plan for Employees of the City of Delray Beach Dear Mr. Slawn. Please review the enclosed ordinance that allows a member of the Plan who has at least five years of continuous service to purchase up to three additional years of credited service, for a hke period of previous full-time employment with another federal, state or local government agency The ordinance provides that the member must pay the full actuarial cost of the additional service In our opinion, this ordinance will have no actuarial impact on the Fund. Respectfully submitted, For the Board of Trustees As Plan Administrator J~t~phe~n Palmquist, ASA, FCA Enrolled Actuary No. 02-1566 100 ANNOUNCEMENTS A PLI~LIC HENRING ~11 be i'~i o~ l~e mdlnances at 7 00 ~U~Y 7, (m at aW ~nu~on 1~ A~, ~ ~h ~ ~ ~ C~ ~ ~ll NW 1~ A~, ~1~ ~h, Rom 5~ pm, ~ ~m~h ~ ORDI~ ~ THE B~CH FLORIDA, ~ENDING ~R ~, ~MPLO~ES ~LiC/ES ME~ ~'. ~ THE CODE DF ~DI- ~S ~ THE C~ OF GEL~Y ~H, ~ORIOA BY AMENDING SUBSECTION C 'CREDI~D SER- ~NS", ~D ~TING A N~ SEC- ~ON ~ ~ TO ~OW PARTICF P~S WI~ AT ~T ~t~ ~S OF CREDITED SERVICE T0 C~E UP TO THREE Y~S 0F CREDITED SERVICE PRIOR GO~RNME~ SERVICE. ~DING A GENE~ REaR C~USE PROVIDING A VALIOI~ C~U~ ~D PR~IDING T~ DA~ ~ ~DI~CE ~ ~E CI~ COM- MINION OF THE Ci~ DF ~L~Y ~ 35 "EM~0~ES ~U~tES ~S' SUBH~tNG 'R~RE- ~ ~", ~ ~E ~DE OF ORDF ~ES DF ~E C~ OF GEL~Y B~CH, FLORIDA, BY ~ENDtNG SE~ION 35 ~g, "DEFINITIONS R~ISiNG ~E DEFINITION OF ~0~ TO ~UOE ~tOUSLY ~CLU~ SERVICE ~R ~MER ~S ~D ~S ~0 ~ ~t~ ~ P~A- ~TAIN ~IOUSLY ~LU~ lEU [5~:HVIL;I: UNUI:H I]'1[ PI-AN, AMEND{NG SECTION 35 0¢J7, "RETIREMENT INCOME, BASIS, AMOUNT, AND PAYMENT~. SUBSEC- TION (L), "DIRECT TRANS~RS OF ELIGIBLE ROLLOVER DISTRIBU- TIONS' TO ALLOW PARTI~PANTS WHO WERE PREVIOUSLY EXCA. UGED ER0~ PARTICIPATION IN THE PLA~ TO ND~KE A DIRECT TRANSFER O~ ELIBIBLE ROLLOVER DISTRIBU- TIONS TO PURCHASE CREDITED SERVICE UNDER THE PLAN, PRO~O- lNG A GENERAL REPEALER CLAUSE, PROVIDING A VALID/TY CLAUSE, AND PROVIDING AN EFFECTIVE DATE AN ORDINANCE OF THE CrW COM- MISSION 0E THE CITY OF DELRAV TER 33, *POUCE AND FIRE DEPART- MENTS'', SUBHEADING 'PENSIONS", DF THE CODE DF ORDINN~ICES OF THE CF~' OF DELRAY BEACH, FLORI- DA, BY AMENDING SECTION 3360 "DEFINITIONS", REVISING THE DEFI- NITION OF "CONTINUOUS SERVICE TO PERMIT A FIREFIGHTER WITH AT LEAST FIVE YEARS OF COik~TINUOUS SERVICE TO PURCHASE UP TO THREE ADDITIONAL YEARS Cf: SER- VICE FOR PRIOR EMPLOYMENT AS A POLICE OFFICER OR FIREFIGHTER, AMENDING S~CTION 33 70, "DIP~T TRANSFERS OF ELIGIBLE ROLLOVER CONTRIBUTIONS', TO PROVlGE FOR ROI-LOVERS OR TRANSFERS INTO THE FUND FOR THE PURCHASE OF CONTINUOUS SERVICE, PROVIDING A REPEALER CLAUSE_ PROVIDING A VALIDITY CLAUSE, AND PROVIDING AN EEFECTIVE DATE AN ORDINANCE OF THE CITY COM- MISSfON DF THE CITY DF DEI.RAY BEACH, FLORIDA, AMENOING CHAP- TER 33, 'POLICE AND FIRE DEPART- MENTS" SUBHEADING "PENSIONS", DF THE CODE O~ ORDINANCES OF THE CITY DF DELRAY BEACH, FLORI- DA, BY AMENDING SECTION 3360. 'DEFINITIONS". REVISING THE DEFI- NITION OF '~;ONTINUOUS SERVICE" FOR CERTAIN PURPOSES TO INCLUDE PREVIOUS SERVICE AS A GENERAL EMPLOYEE, CI:IEATIND A NEW SECTiON 33 71 'COORDINA* TION OF RETIREMENT BENERTS' PflOVIOING FOR COORDINATION OF BENEFITS FOR MEMBERS WHO HAV~ PREVIOUS SEI~/ICE AS A GENERAL EMPLOYEE. AMENOING SECTION 33 70 "DIRECT TRANSFERS OF ELI- GIBLE ROI. LOVER CONTRIBUTIONS TO P~0VIDE FOR ROLLOVERS OR TRANSFERS INTO THE FUND FOR THE PURCHASE OF CONTINUOUS SERVICE. PROVIDING A REPEALER CLAUSE, PROVIDING A VALIDITY CLNJSE, AND PROVIDING AN EF~C- TIVE DATE MISSION DF THE CITY DF DELRAy GENCY SERVICES". OF THE COGE OF LEadU. NOT. ES 96 66, ~EMEREENCY MEDICAL TRANSPORTATION FEES", SUBSEC- TION g686(A), TO ADJUST THE FEE SCHEOULE FOR EMERGENCY MEO* ICAL TRANSPORTATION IN ACCOR- DANCE WITN THE NATIONAL AMERI- CAN FEE SCHEDULE, PROVIDING A GENERAL REPEALER CLAUSE, A SAVING DLALKJE, AND AN EFFECTiVE DATE ~ates to al~eal my ~on made by~e City C~T. ,,;~,;On ~ n~oect to ~x~Iy and eWbe~e ulx~ w~ich tbe a,~oe~ m to be besad Tbe City does Pursuant to F S 2860105 PUBLISH Friday, December 27, 2002 Boca Raton/Dehay ~each I~vs A pUBLIC R~ING wll m herd ~7~ m o~ TuESDA ' P --~-~o~ ot soch meet)nO (or at any cp?.,~_- - C C~ at ~", .J ~-'.n~._s~EE'[ PARKING TION 4 ~ ~.,~''~ SUBSE~ION R~u~TiUNa , 46g{E 'LOCATION O~ pA~[NG ME~ R~U~TI~S OF IH~ U,,. R~%~O I~ Lieu u ~TIONS, ~OVIDING A G~NE~L ~SE ANU ~ ~'~B~E.o,NG SE~- ~.v- ,-- - ~ ~E LOTS , ~ 1 G~fll~l~ ~ ~RRED TO IN p~G~ ~. -~ ~U~TIONS~, U C~ ~ ~L~Y ~ BY ~END- ~ C~R 111. By REP~ING SEgTION111 18. ~1~1~1~ C~ME~I~ ~D ~c,~ ~oD,~s ,,~ ~ R~Ol~ ~E BY ~NG A N~ S~ 111 ~C~ ~DBI~S ~UC ~S", ~IDI~ A ~ - ~ ~ ~n~ ~n ~D~Y~