Ord 58-02Rev. 1-3-03
ORDINANCE NO. 58-02
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AMENDING
CHAPTER 33, "POLICE AND FIRE DEPARTMENTS",
SUBHEADING "PENSIONS", OF THE CODE OF
ORDINANCES OF THE CITY OF DEI.RAY BEACH,
FLORIDA, BY AMENDING SECTION 33.60,
"DEFINITIONS", REVISING THE DEFINITION OF
"CONTINUOUS SERVICE" TO PERMIT A FIREFIGHTER
WITH AT LEAST FIVE YEARS OF CONTINUOUS
SERVICE TO PURCHASE UP TO THREE ADDITIONAL
YEARS OF SERVICE FOR PRIOR EMPLOYMENT AS A
POLICE OFFICER OR FIREFIGHTER; AMENDING
SECTION 33.70, "DIRECT TRANSFERS OF ELIGIBLE
ROLl. OVER CONTRIBUTIONS", TO PROVIDE FOR
ROLLOVERS OR TRANSFERS INTO THE FUND FOR THE
PURCHASE OF CONTINUOUS SERVICE; PROVIDING A
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 33, "Police and Fire Departments", subheading, "Pensions",
of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section
33.60, "Definitions", to read as follows:
Section 33.60 DEFINITIONS.
For the purpose of this subchapter, the following definitions shall apply
unless the context clearly indicates or requires a different meaning.
"ACTUARIAL EQUIVALENCE" or "ACTUARIALLY EQUIVALENT".
This term shall mean that any benefit payable under the terms of the pension fund in
a form other than the normal retirement pension shall have the same actuarial
present value on the date payment commences as the normal retirement pension.
For purposes of establishing the actuarial present value of any form of payment, all
future payments shall be discounted for interest and mortality by using 7% interest
and the 1983 Group Annuity Mortality Table for Males, with ages set ahead five
years in the case of disability retirees.
"AGREEMENT". The written instrument setting forth the provisions of
the retirement system.
"AVERAGE MONTHLY EARNINGS". One thirty-sixth of the
arithmetical average for the highest consecutive 36-month period preceding the
actual retirement or termination of a member; provided, however, the benefit
derived shall not be less than the benefit that would have been paid based on a
definition of average monthly earnings of one twenty-fourth of the arithmetical
average for the highest consecutive 24-month period, as calculated prior to the
effective date of this ordinance.
"BENEFICIARY." The person entitled to receive benefits hereunder at the
death of a member who has been designated in writing by the member and filed with
the Board of Trustees. If no designation is in effect at the time of death of the
member, or if no person so designated is living at that time, the beneficiary shall be
the estate of the member.
"BOARD." The Board of Trustees which shall administer and manage the
system herein provided and serve as Trustee of the Trust Fund.
"CONTINUOUS SERVICE."
(1) Uninterrupted service by a member (expressed as years and
completed months) from the date he last entered employment as an employee until
the date his employment is terminated by death, disability, retirement, resignation or
discharge.
(2) However, the continuous service of any member shall not be
deemed to be interrupted by:
(a) Any authorized leave of absence or vacation,
provided all members similarly situated in similar circumstances shall be treated alike
pursuant to uniform, nondiscriminatory rules. No credit for benefit eligibility for
computation purposes under the system shall be allowed for any such period of leave
of absence.
2 ORD. NO. 58-02
Co) Any service, whether voluntary or involuntary, in the
armed forces of the United States, provided the member is legally entitled to
reemployment under the provisions of the Uniformed Services Employment and
Reemployment Rights Act of 1994 and any amendments thereto, or any law
applicable to such reemployment, and provided that a member shall apply for
reemployment within three months following termination of such service, or as
otherwise allowed by the Uniformed Services Employment and Reemployment
Rights Act of 1994, and any amendments thereto. Nothing aforementioned shall
serve to reduce the accrued accredited services of the members on the effective date
of the plan.
(3) Continuous service shall also include, for reemployed
members, those years and completed months for which the reemployed member had
withdrawn his contributions to the Trust Fund, where the reemployed member
repays into the Fund the contributions he had withdrawn, with interest based upon
the plan's annual total rate of return for the pension funds, as computed by the
actuaries or the City, for those years and completed months, within 90 days after his
reemployment date. A reemployed member may also repay only a portion of the
withdrawn funds with interest and receive a like credit for continuous service;
however, repayments, whether partial or total, shall only be permitted once within
the 90-day limit.
(4) For members who are employed by the City. on or
after the effective date of this ordinance who have five (5) or more years of
continuous service based on City employment, continuous service shah also include
up to three (3) years of active service in the U.S. armed forces or full-time
employment as a police officer or fire fighter with another governmental entity prior
to employment by the City, purchased by the member in accordance with this
paragraph; provided the member has not received and will not receive a benefit from
another retirement plan based on such prior employment. Such a member may
purchase continuous service under the plan, in years and tenths of a year, for all or a
portion of the period of their active service in the U.S. armed forces or full-time
employment as a police officer or fire fighter with another governmental entity prior
to employment by the City, by paying into the plan the full actuarial cost of such
continuous service, as determined by the plan actuary. Such payment may be made at
any time after employment by the City, and 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 amount
of continuous service, as determined by the actuary, for which the payment made,
excluding interest, is the full actuarial cost. In the event a member makes payment for
additional continuous service in accordance with this paragraph prior to attaining five
years of continuous service based on City employment, and separates from City
3 ORD. NO. 58-02
employment before attaining five years of continuous service based on City
employment, such member shall receive a full refxmd of all payments made, plus
interest based on the assumed rate of return of the plan. A member purchasing such
additional continuous sen, ice must pay the full cost of any actuarial calculations
required. Payment for the purchase of continuous service pursuant to this para~aph
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
from a qualified plan, in accordance with Sec. 33.70.
Time payment plan. Under this option the member may dect
to pay any remaining balance due for the purchase of
continuous service through payroll deduction on a me
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. Payments deducted from an employee's pay shall b.e
designated as employer contributions pursuant to Section
414(h) of the Internal Revenue Code.
and
"EARNINGS." Basic wages paid to a member, excluding overtime, bonuses
any other non-regular payments.
"EFFECTIVE DATE." April 22, 1974.
"EMPLOYI3..E." All employees of the City classified as full-time sworn
police officers, as defined on the effective date in F.S. Sec. 185.02, or classified as
police officers in training, or classified as volunteer or regular full-time firefighters, as
defined on the effective date in F.S. Sec. 175.032, but shall exclude all civilian
members of the Police and Fire Departments, and the Police Chief and Fire Chief
upon their written election not to participate in the system.
"FUND." The Trust Fund established herein as part of the system.
"MEMBER." An employee who fulfills the prescribed participation
requirements.
"SPOUSE." The lawful wife or husband of a member at time of retirement
and death.
"SYSTEM." The City Police and Firefighters Retirement System as
contained herein and all amendments thereto.
4 ORD. NO. 58-02
Section 2 That Chapter 33, "Police and Fire DeparLments", subheading, "Pensions",
of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section
33.70, "Direct Transfers of Eligible Rollover Contributions", to read as follows:
Section 33.70 DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS
(A) General. This section 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 section, 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 roliover.
03) Definitions.
(1) Eligi~'ble rollover distribution. An eligible rollover distribution is 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.
(2) Eligfi'ble 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 408C0) 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, an eli~ble deferred compensation plan described in section
457(b) of the Internal Revenue Code which is maintained by an eli~ble 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.
(3) Distributee. A 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.
5 ORD. NO. 58-02
(4) Direct rollover. A direct rollover is a payment by the plan to the eligible
retirement plan specified by the disuibutee.
(C) Rollovers or Transfers into the Fund. On or after the effective date of this
ordinance, the fund will accept member roliover cash contributions and/or direct cash rollovers of
distributions for the purchase of continuous service as authorized under the plan, as follows: the
fund will accept either a direct rollover of an eligible rollover distribution or a member 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 eligi~'ble 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.
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 operate to invalidate the remainder hereof.
Section 5 That this ordinance shall become effective immediately upon its passage
on second and final reading.
the 7
PAS~I~D A.ND .ADOPTED in regular session on second and final reading on this
. day of 5gl/tl/2O.J/.q~ ,200~
MAYOR
City Clerk
First Reading
Second Rea&g ·
6 ORD. NO. 58-02
Helping Shape
Florida's Future®
ATTORNEYS
LONGMAN
AT LAW
&WALK[R, PA
REPLY To: TALLAXO~S~.
Eric Ash
Krisfln Bennett
W. O. Birehfield
Jody Lane Brooks
Wffiiam G. Capko
Beth Ann Carlson
Michelle 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
Meliasa Gross-Arnold
Kevin S. Hennessy
R. Steven Lewis
Terry E. Lewis
James W. Linn
Anne Longman
G. Stephen Manning
David E. Ramba
Kenneth G. Spillias
Edwin A. Steiumeyer
Glenn E. Thomas
Stephen A. Walker
www.llw-law.com
$~cksonv///e Office
9428 Baymeadows Road
Suite 625
Jacksonville, Florida 322S6
{904) 737-2o2o
Faz: (904)
Tallahassee Office
Post Office Box 10788 (32302)
125 South Gadsden Street
Suite 300
Tallahassee, Florida 32301
(850) 222-S?02
Fax: (850) 224-9242
West PMm Beach Oj~ce
1700 Palm Beach Lakes
Boulevard, Suite 1000
West Palm Beach, Florida
33401
¢60 64o-o~o
Fax: (~61) 640-8202
MEMORANDUM
TO:
Susan Ruby, City Attorney
City of Dclray Beach
FROM:
Jim Linn and Glenn Thomas
DATE: January 7, 2003
Ordinances Amending the Police Officers' and Firefightcrs'
Retirement Plan
This responds to thc comments made at the police/fire pension board meeting
of December 18, 2002 concerning proposed ordinances 58-02 and 59-02, as
summarized in Terrill Pybum's December 20 memo. Our response to each
comment follows:
1. Some board members apparently took issue with the applicability of the
prior service/military service purchase option contained in Section 1 of
Ordinance 58-02. As the ordinance was originally drafted, the purchase option
applied to members initially employed by the City on or at~er the effective date
of the ordinance, and not to current employees. However, the City
subsequently determined that the purchase option should apply to all current
and future employees who arc members of the plan. Accordingly, we have
revised Section 1 of the ordinance to delete the word "initially." As revised,
thc prior service/military service purchase option applies to all plan members
who arc in the City's employ on the effective date of the ordinance, as well as
all future members.
2. Board members apparently expressed some uncertainty over the refund
mechanism contained in the prior service/military service purchase option in
Section 1 of Ordinance 58-02. Thc ordinance provides for a refund of
payments made by members who terminate City employment prior to attaining
five years of service with the City. Thc point was made that eligibility for the
buy-back could simply be delayed until the member has reached the five-year
mark, thus eliminating thc need for refunds. However, thc rationale for
allowing members to pay for additional service prior to attaining five years of
continuous service is to permit a member to usc contributions refunded from
another pension plan to purchase additional service under the City plan, without
January 7, 2003
Page 2
incurring interest charges. We recommend retaining the refund provision as it
appears in Section 1 of Ordinance 58-02.
3. Board members apparently expressed concern that passage of Ordinances 58-02 and 59-
02 would result in two different subsections numbered (4), under Section 33.60 (Definitions),
which could cancel each other out. We have revised the directory language of Ordinance 59-02
to ensure that this does not happen.
4. Board members questioned the provision in Section 2 of Ordinance 59-02, which
provides for additional payment from the member, if necessary, to pay the full actuarial cost of
the benefit. However, the Division of Retirement has indicated that the benefit based on prior
service as a general employee contained in Section 2 of the ordinance does not comply with the
Division's interpretation of Chapters 175 and 185, Florida Statutes. Accordingly, we
recommend that the ordinance be revised to eliminate Sections 2 and 3, which will also eliminate
the basis for the board's concern. There are may be other ways to provide a benefit based on the
prior service of police officers and firefighters as general employees, which can be considered in
the future.
Please call us if you have any questions concerning these matters.
Helping Shape
Florida's Future*
ATTORNEYS
LONGMAN
AT LAW
&WALKER, PA
REPLY TO: T~ASS~
Erie Ash
Krisfln Bennett
W. O. Birehfield
Jody Lane Brooks
William G. Capko
Beth Ann Carlson
Michelle 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
Kenneth G. Spillias
Edwin A. Steinmeyer
Glenn E. Thomas
Stephen A. Walker
www.llw-law.com
TO:
FROM:
DATE:
RE:
Susan Ruby, City Attorney
City of Delray Beach
Jim Linn
January 7, 2003
Ordinance 58-02 - Meaning of"Active Service"
You have asked that we respond to a question that has been raised about the
meaning of the phrase "active service" in Section 1 of Ordinance 58-02. This
ordinance allows members of the police/fire pension plan with five or more
years of service under the plan to purchase up to three years of additional
service credit for time spent in "active service" in the U.S. armed forces, or
prior service as a police officer or firefighter in another jurisdiction. The term
"active service" is defined at 10 United States Code section 101(d) as service
on active duty in the U.S. armed forces or full-time National Guard duty.
"Active duty" is defined as full-time duty in the active military service of the
United States, and includes training duty while in active military service.
Please call me if you have further questions concerning this term.
Joc~on~llle O~O~ce
94~ Baymeadows Road
Suite 625
Jacksonville, Florida 31256
(9O4) ?Y/-2020
Fax: (904) '37-3221
T~!!ahassee O.O~ce
Post Offlee Box 10788 02302)
125 South Gadsden Street
Suite ~
Tallahasaee, Florida 32301
(SSO) 222-S702
Fa-,: (8.q0) 224-9242
Wes~ P~0n Bench O.0/ee
1700 Palm Beach Lakes
Boulevard, Suite
West Palm Beach, Florida
33401
¢s61) 640-0~0
Fax: (561) 640-8202
Helping Shape
Florida's Future®
Eric Ash
Kristin Bennett
W. O. Birchfield
Jody Lane Brooks
William G. Capko
Beth Ann Carlson
Michelle Diffenderfer
Robert P. Diffendcrfer
Kenneth W. Dodge
Amy M. Dukes
Brenna Malouf Dorden
Laura Jacobs Feagin
Roslynn M. Ferguson
Wayne E. Flowers
John W. Forehand
Walter E. Forehand
Melissa Gross-Arnold
Kevin S. Hennessy
R. Sleven Lewis
Terry' E. Lewis
James W. Linn
Anne l.ongman
G. Stephen Manning
David E. Ramba
Kenneth G. Spillias
Edwin A. Steinmeyer
Glenn E. Thomas
Stephen A. Walker
www.llw-law.com
Jac~som, ille Office
9428 Baymeadows Road
Suite 625
Jacksonville, Florida 32256
(904) 737-2020
Fax: (904) 737-3221
Tallahassee Office
Post Office Box 10788 (32302)
125 South Gadsden Street
Suite 300
Tallahassee, 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
LEWIS, LONGMAN -WALKER, P.A.
ATTORNEYS AT LAW
RECEIVED
JAN 3 - 2003
CITY MANAGER
MEMORANDUM
REPLY TO: TALLAHASSEE
TO:
Susan Ruby, City Attorney
City of Delray Beach
FROM:
Jim Linn and Glenn Thomas
DATE: January 3, 2003
Ordinances Amending the Police Officers' and Firefighters'
Retirement Plan
This responds to the comments made at the police/fire pension board meeting
of December 18, 2002 concerning proposed ordinances 58-02 and 59-02, as
summarized in Terrill Pybum's December 20 memo. Our response to each
comment follows:
1. Some board members apparently took issue with the applicability of the
prior service/military service purchase option contained in Section 1 of
Ordinance 58-02. The purchase option applies to members who are initially
employed by the City on or after the effective date of the ordinance, and not to
current employees. This reflects the City's intent that the buy-back provision
be used as a recruiting tool for attracting qualified police officers and
firefighters to the City. We recommend retaining this provision as it appears
in Section 1 of ordinance 58-02.
2. Board members apparently expressed some uncertainty over the refund
mechanism contained in the prior service/military service purchase option in
Section 1 of Ordinance 58-02. The ordinance provides for a refund of
payments made by members who terminate City employment prior to attaining
five years of service with the City. The point was made that eligibility for the
buy-back could simply be delayed until the member has reached the five-year
mark, thus eliminating the need for refunds. However, the rationale for
allowing members to pay for additional service prior to attaining five years of
continuous service is to permit a member to use contributions refunded from
another pension plan to purchase additional service under the City plan, without
incurring interest charges. We recommend retaining the refund provision as it
appears in Section 1 of Ordinance 58-02.
loc
January 3, 2003
Page 2
3. Board members apparently expressed concern that passage of Ordinances 58-02 and 59-
02 would result in two different subsections numbered (4), under Section 33.60 (Definitions),
which could cancel each other out. We have revised the directory language of Ordinance 59-02
to ensure that this does not happen.
4. Board members questioned the provision in Section 2 of Ordinance 59-02, which
provides for additional payment from the member, if necessary, to pay the full actuarial cost of
the benefit. However, the Division of Retirement has indicated that the benefit based on prior
service as a general employee contained in Section 2 of the ordinance does not comply with the
Division's interpretation of Chapters 175 and 185, Florida Statutes. Accordingly, we
recommend that the ordinance be revised to eliminate Sections 2 and 3, which will also eliminate
the basis for the board's concern. There are may be other ways to provide a benefit based on the
prior service of police officers and firefighters as general employees, which can be considered in
the future.
Please call us if you have any questions concerning these matters.
Harden, David
Page 1 of 1
From: Weaver, Jo
Sent: Friday, January 03, 2003 11:21 AM
To: Harden, David
Cc: Nubin, Chevelle
Subject: Police & Fire Pension Ord. No. 58-02
Attached is the ordinance revised by ,Tim Linn which now covers current and previous
employees as to their prior militam/service. ~[t was accomplished by deleting the word
"initially" in front of the word "employed".
Please call me if you have any questions.
Susan Ruby x709!
1/3/2003
Rev. 1-3-03
ORDINANCE NO. 58-02
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AMENDING
CHAPTER 33, "POLICE AND FIRE DEPARTMENTS",
SUBHEADING "PENSIONS", OF THE CODE OF
ORDINANCES OF THE CITY OF DELRAY BEACH,
FLORIDA, BY AMENDING SECTION 33.60,
"DEFINITIONS", REVISING THE DEFINITION OF
"CONTINUOUS SERVICE" TO PERMIT A FIREFIGHTER
WITH AT LEAST FIVE YEARS OF CONTINUOUS
SERVICE TO PURCHASE UP TO THREE ADDITIONAL
YEARS OF SERVICE FOR PRIOR EMPLOYMENT AS A
POLICE OFFICER OR FIREFIGHTER; AMENDING
SECTION 33.70, "DIRECT TRANSFERS OF ELIGIBLE
ROLLOVER CONTRIBUTIONS", TO PROVIDE FOR
ROI.I.OVERS OR TRANSFERS INTO THE FUND FOR THE
PURCHASE OF CONTINUOUS SERVICE; PROVIDING A
REPEALER CLAUSE; PROVIDING A VALIDITY CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DF. LRAY
BEACH AS FOLLOWS:
Section 1. That Chapter 33, "Police and Fire Depasunents", subheading, "Pensions",
of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section
33.60, "Definitions", to read as follows:
Section 33.60 DEFINITIONS.
For the purpose of this subchapter, the following definitions shall apply
unless the context clearly indicates or requires a different meaning.
"ACTUARIAL EQUWALENCE" or "ACTUARIALLY EQUIVALENT".
This term shall mean that any benefit payable under the terms of the pension fund in
a form other than the normal retirement pension shall have the same actuarial
present value on the date payment commences as the normal retirement pension.
For purposes of establishing the actuarial present value of any form of payment, all
future payments shall be discounted for interest and mortality by using 7% interest
and the 1983 Group Annuity Mortality Table for Males, with ages set ahead five
years in the case of disability retirees.
"AGREEMENT". The written instrument setting forth the provisions of
the retirement system.
"AVERAGE MONTHLY EARNINGS". One thirty-sixth of the
arithmetical average for the highest consecutive 36-month period preceding the
actual retirement or termination of a member; provided, however, the benefit
derived shall not be less than the benefit that would have been paid based on a
definition of average monthly earnings of one twenty-fourth of the arithmetical
average for the highest consecutive 24-month period, as calculated prior to the
effective date of this ordinance.
"BENEFICIARY." The person entitled to receive benefits hereunder at the
death of a member who has been designated in writing by the member and filed with
the Board of Trustees. If no designation is in effect at the time of death of the
member, or if no person so designated is living at that time, the beneficiary shall be
the estate of the member.
"BOARD." The Board of Trustees which shall administer and manage the
system herein provided and serve as Trustee of the Trust Fund.
"CONTINUOUS SERVICE."
(1) Uninterrupted service by a member (expressed as years and
completed months) from the date he last entered employment as an employee until
the date his employment is terminated by death, disability, retirement, resignation or
discharge.
(2) However, the continuous service of any member shall not be
deemed to be interrupted by:
(a) Any authorized leave of absence or vacation,
provided all members similarly situated in similar circumstances shall be treated alike
pursuant to uniform, nondiscm-ninatory rules. No credit for benefit eligibility for
computation purposes under the system shall be allowed for any such period of leave
of absence.
2 ORD. NO. 58-02
(b) Any sen, ice, whether voluntary or involuntary, in the
armed forces of the United States, provided the member is legally entitled to
reemployment under the provisions of the Uniformed Services Employment and
Reemployment Rights Act of 1994 and any amendments thereto, or any law
applicable to such reemployment, and provided that a member shall apply for
reemployment within three months following termination of such service, or as
otherwise allowed by the Uniformed Services Employment and Reemployment
Rights Act of 1994, and any amendments thereto. Nothing aforementioned shall
serve to reduce the accrued accredited services of the members on the effective date
of the plan.
(3) Continuous service shall also include, for reemployed
members, those years and completed months for which the reemployed member had
withdrawn his contributions to the Trust Fund, where the reemployed member
repays into the Fund the contributions he had withdrawn, with interest based upon
the plan's annual total rate of remm for the pension funds, as computed by the
actuaries or the City, for those years and completed months, within 90 days after his
reemployment date. A reemployed member may also repay only a portion of the
withdrawn funds with interest and receive a like credit for continuous service;
however, repayments, whether partial or total, shall only be permitted once within
the 90-day limit.
(4) For members who are employed by the City on or
after the effective date of this ordinance who have five (5) or more years of
continuous service based on City employment, continuous service shall also include
up to three (3) years of active service in the U.S. armed forces or full-time
employment as a police officer or firefighter with another governmental entity prior
to employment by the City, purchased by the member in accordance with this
paragraph; provided the member has not received and will not receive a benefit from
another retirement plan based on such prior employment. Such a member may
purchase continuous service under the plan, in years and tenths of a year, for all or a
portion of the period of their active service in the U.S. armed forces or full-time
employment as a police officer or firefighter with another governmental entity prior
to employment by the City, by paying into the plan the full actuarial cost of such
continuous service, as determined by the plan actuary. Such payment may be made at
any time after employment by the City, and must be trade 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 amount
of continuous service, as determined by the actuary, for which the payment made,
excluding interest, is the full actuarial cost. In the event a member makes payment for
additional continuous service in accordance with this paragraph prior to attaining five
years of continuous service based on City employment, and separates from City
3 ORD. NO. 58~02
emplo.vment before attaining five years of continuous service based on City
employment, such member shall receive a full refund of all payments made, plus
interest based on the assumed rate of return of the plan. A member purchasing such
additional continuous service must pay the full cost of any actuarial calculations
required. Payment for the purchase of continuous service pursuant to this paragraph
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
from a qualified plan, in accordance with Sec. 33.70.
Time payment plan. Under .this option the member may elect
to pay any remaining balance due for the purchase of
continuous service through payron 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
desigo, ated as employer contributions pursuant to Section
414(h) of the Internal Revenue Code.
and
"EARNINGS." Basic wages paid to a member, excluding overtime, bonuses
any other non-regular payments.
"EFFECTWE DATE." April 22, 1974.
"EMPLOYEE." All employees of the City classified as full-time sworn
police officers, as defined on the effective date in F.S. Sec. 185.02, or classified as
police officers in training, or classified as volunteer or regular full-time ftrefighters, as
defined on the effective date in F.S. Sec. 175.032, but shall exclude all civilian
members of the Police and Fire Departments, and the Police Chief and Fire Chief
upon their written election not to participate in the system.
"FUND." The Trust Fund established herein as part of the system.
"MEMBER." An employee who fulfills the prescribed participation
requirements.
"SPOUSE." The lawful wife or husband of a member at time of retirement
and death.
"SYSTEM." The City Police and Firefighters Retirement System as
contained herein and all amendments thereto.
4 ORD. NO. 58-02
Se¢tion 2 That Chapter 33, "Police and Fire Departments", subheading, "Pensions",
of the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section
33.70, "Direct Transfers of Eligible Rollover Contributions", to read as follows:
Section 33.70 DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS
(A) General. This section 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 section, 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.
(B) Definitions.
(1) Eligible rollover distribution. An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the distributee, except that an eligible
rollover chstributaon 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.
(2) 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 4080>) 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, an eligible deferred compensation plan described in section
4570>) 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
4030>) of the Internal Revenue Code, that accepts the distributee's eligible rollover distribution.
(3) Distributee. A 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.
5 ORD. NO. 58-02
(4) Direct rollover. A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
(C) Rollovers or Transfers into the Fund. On or after the effective date of this
ordinance, the fund will accept member rollover cash contributions and/or direct .cash rollovers of
.di.'stribufions for the purchase of continuous service as authorized under the plan, as follows: the
fund will accept either a direct rollover of an eligible rollover distribution or a member 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 e~gible 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.
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 operate to invalidate the remainder hereof.
Section 5 That this ordinance shall become effective immediately upon its passage
on second and final reading.
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
6 ORD. NO. 58-02
01/06/03 13:03 FAX
~ 011/011
GABRIEL, ROEDER, SMITH & COMPANY
Con~ultant~ & Actuaries
.301 ~a.~ ! as Olas Bird · Su~to 200 · Ft Laudordal~ FI 33301-22~ · 954 527-1616 ~f~ 954 ~25-~0R3
January 6, 2003
Mr. Charles Slavin, Actuary
Bureau of Local Retirement Systems
Division of Retirement
Cedars ~×ecut~ve Center, Bldg. C
2639 Nodh Monroe Street
Tallahassee, Flodda 32399-1.560
Ms. Patricia Shoemaker
Bureau of Municipal Police Officers'
and Firefighters' Pension Funds
Divisfon of Retirement
Building B, Room 252
Post Office Box 3010
Tallahassee, Florida 32315-3010
Actuarial Impact S~atement for the Delray Beach Police and Firefighters
Rebrement System
Dear Sir and Madam'
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 active military service or full4ime employment as a police officer or hrefightcr
with another employer. The proposed ordfnance also technically amends the Plan regarding
roffovers and the purchase of service credit using transfers and rollovers from other retirement
plans The ordinance provides that the member must pay the full actuarial cost of the addihonal
service.
In our opinion, this ordinance will have no actuarial impact on the Fund.
Respectfully submitted,
For the Board of Trustees
As Plan Administrator
100
ANNOUNCEMENTS
LmiA~ NOTmis
k PLIBL~C HEARING ~ ~ ~ on t~e
ordmanoes at 7'00
JANUAFIY 7 2003
(or al any c0~nualmn of such meeting
Clly Commission O~lanl~ers 100NW
~'~et t~mr aclol~on The
m. between ~e hours of 8 00 a.m ~0
$'00 pm Monaay tr~x~ Friday
AN ORDINANCE OF 'THE crry
MISSION 0Ir THE ~ O~ O[LRA¥
~,aZ~H FLORIDA AMENDING CHAP-
~ 3,5 'EMPLOYEES POLICIES AND
~NEFIT$ SUBHEADING ~RETIRE-
MENT PLAN O~ THE CODE CF 0RDI-
~ULNCES OF THF CITY OF DELRAY
BEACH I:LORIDA BY AMENDING
SUBSECTION C "CREDITED SER-
VICE', OF ~fl~l~l ~ 089 "DERNI-
TIO~S ', AND CREATING A NEW SEC-
TION 35 0934 TO ALLOW PAPTICI-
PAINTS WITH AT LEAST FIV~ YEARS
OF CREDh-ED SERVICE TO PUR-
CHASE UP TO THREE YEARS OF
CREDITED SERVICE BASED ON
PRIOR GOVERNMENTAL SERVICE,
Pf~N'IDING A GENERAL REPEALER
CLAUSE PRDVIDIN('; A VALIDITY
C~AUSE AND I=~OVIDING AN ER:EC-
TIVE DATE
AN ORDINANCE OF THE CITY COM-
MISSION CF THE CITY OF DELRAY
TER aS 'EM~O'f~S POLICES
BENEF~S SUBflEAD~NG -RET~E-
MB~ PLAN" CF THF. COOl OF OROf
#N~"ES CF THE CITY OF DELRA¥
BEACH FLORIDA. BY AMENDING
~CTION 35 0~lg. 'DEFINITIONS
REVISING THE DEFINITION OF
"'B~PLDYEF' TO IRCLUDE CERTAIN
~REVIOU~.Y F. XCL~ POSITIONS.
MNDING SECTION 35(~3
ri'ED SERVICE FOR FORMER
~MR'LOYEES AND EMPLOYEES Wh~
~ EX~U[~O FROM
CERTAIN PREVIOUSLY EXCLUDED
~MPLO~.S TO ~JRCHA~ CREDIT-
AMENDING SECTION S5
"RETIREMENT INCOME, BASIS.
AMOUNT, AND PAYMENT'. StJ~SE~-
TION (L) 'OIR~CT ~S
ELIGIBLE ROLLOVER OI~TRIBU-
WHO ~ I;N~'VIOUS LY EXCLUDED
FRO~I PART/CIPAT/ON IN TH~ PLAN
ELtBtBLE ROLLOV~R DISTRibU-
TIONS TO PURCHASE CREOrrEC
SERVICE UN~R THE PLAN, PROVID-
ING A GERERAL REPEALER CLAUSE,
PROVIDING A VALIDITY CLAUSE
AND PROVIDING AN EFFECTIVE
DATE
/iN ORDII~INCE OF THE CITY COM-
MISSION OF THE CITY OF DEl-RAY
BEACH, FLORIDA AMENDING CHAP-
TER 3~ "POLICE AND RRE DEPART
OF THE COOE OF ORDINANCES CF
THE CITY CF D~LRAY BEACH, FLOR~-
DA BY AMENDING SECTION 3360
~DEFINFrlONS' REVISING THE DEFb
NITION OF 'CONTINUOUS SERVICE
"TO I~RM~ A FIREFIGHTER WFt~ AT
LEAST FIVE YEARS OF CONTINUOUS
~ERVICE TO PURCHASE UP TO
THREE ADDITIONAL YEARS CF SER-
VICE FOR PRIOR EMPLOYMENT AS A
POLICE ORclCER OR FIRERGHTER
AMENDII~ SECTION 33 70 "DIRECT
TRANS~RS OF ELiGiBLE ROLLDVER
COI~Rt~TIONS" TO PROVIDE FOR
G0~rlNUOUS SERYJCE PROVIDING
A REPEALER CLAUSE PROVIDING
VALIDr~ CLAUSE AND PROVIDING
AN EFFECTIVE DAl~
AN ORDINANCE OF THE cn'Y
MISSION OF THE CITY C~: DELRAY
BEACH FLORIDA, AMENDING CI-~P-
TER 33 'POLICE AND FIRE DEPART-
MENTS ~EADING *PENSioNS,
OF THE CODE CF ORDINANCES CF
THE CITY OF DELRA¥ BEACH FLORi-
DA. BY AMENDING SECTION 33 60
"DBqNITIONS". REViSiNG THE DEFI-
NITION OF %'~NTINUOUS SERVICF
FOR CERTAIN PURPOSES 'TO
INCLUDE PREVIOUS SERVICE ~
(~IERA~ EMPLOYEE CREATING A
NEW SECTION 33 ;'1 "COORDINA-
TION OF RETIREMENT BENEFITS
PROVIDING FOR COORDINATION CF
BENEFITS FOR MEMBERS WHO
PREVIOUS SER¥1CE AS A GENERA:.
EMPLOYEE, ANIENOI'NG SECTION
33 ?O 'OtREC'r TRN~SFERS OF ELI-
SIBLE ROLLOVER CONTRIBUTIONS
TO PROVIDE FOR ROLLO~ERS OR
TRANSFERS INTO THE RJND FOR
TIE PURCNASE OF CONTINUOUS
~'RVIC[. PROVIDING A REPEALFR
C4.,AUSE PROVIDING A VALIDITY
CLALL~ AND PROVIDING AN EF~C-
TNE DATE
AN ORDt#ANC~ OF THE Crl'Y COM-
~ ~, 'FIRE SAFETY AND EMER-
g~ 66 'EMERGENCY MEDICAL
TRANSPORTAT'rON FEES", SUBSEC*
TtO~ g666tA), TO AOJUST THE FEE
SSHEOULE FO~ EMERGENCY MED-
~ TRAN,~:'ORTATION IN ACCOR-
DANOE WlT~ THE NATIONAL AMERb
CAN ~ SGI'IEDULE, PROVIDING A
GENERAL REPEALER P~LAUSE A
DATE
any mal~ cerm~mld M ~e Imar-
~ to be bared The Cay ~loes
not florae nor ff~are su~ record
Purau~l Io F S 2860105
POBLISH Rlday Oecemt~r 27 2002
A~ g6~64
MISSION ~ 'THE gtTY OF OELRAY
i~H FLORIOA, AMENDING SEC
'TlOfl 4Gg .CF~STREET pARKiNG
REGULATIONS suBSECTION
4 6 CJ(E), "(~FI~OI4 OF PAR~,NG
SPACES. _AI~D DE~-LOP'
WENT REGULATION__!)~T~ Ct~ OF
~y ~CH 10 pROVI~ FOR
~ISEO IN L~U ~ p~KI~ REGU
~Tt~S ~OVIDING A GENE~L
RE~ C~E A ~VING
~ AND ~ ~F~ DA~
~EAG~, RJ:)RIDA, At~NUlN~
'~E CODE OF ORDINANCES OF ~E
~ ~ ~L~Y ~ BY ~ENU-
~ ~R 11%
~ R~LtNG SECTION 111 16,
~1~ -~ IN
~1~ ~DI~ ~t u~
~ ~S", ~O~ A ~
~,A~E~ ~