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Ord 59-02ORDINANCE NO. 59-02 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DF.r,RAY 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" FOR CERTAIN PURPOSES TO INCLUDE PREVIOUS SERVICE AS A GENERAL EMPLOYEE; CREATING A NEW SECTION 33.71, "COORDINATION OF RETIREMENT BENEFITS", PROVIDING FOR COORDINATION OF BENEFITS FOR MEMBERS WHO HAVE PREVIOUS SERVICE AS A GENERAL EMPLOYEE; AMENDING SECTION 33.70, "DIRECT TRANSFERS OF ELIGIBLE ROLLOVER 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 Depatm:ents", subheading, "Pensions", of the Code of Ordinances of the City of Delray Beach is hereby amended by mending 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 EQUWALENT". 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 enfided 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. (b) 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 2 ORD. NO. 594)2 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) Continuous service shall also include, for purposes of vesting and determining eli~bility for normal retirement only, the years and completed months of a member's full-time employment with the City in a position not eligi~'ble for membership in this p!ao~ prior to the member's employment as a police officer or firefighter. Such service shall not be considered in determining the amount of a member's benefits under this plan. "EARNINGS." Basic wages paid to a member, excluding overtime, bonuses and any other non-regular payments. "EFFECTIVE 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 firefighters, as defined on the effective date in F.S. Sec. 175.032, but shall exclude all civilian members of the Police and Fire Depaxunents, 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. 3 ORD. NO. 59-02 "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. Section 2. That Chapter 33, "Police and Fire Depaxm~ents", subheading, "Pensions", of the Code of Ordinances of the City of Delray Beach is hereby amended by creating a new Section 33.71, "Coordination of Benefits", to read as follows: Section 33.71 COORDINATION OF RETIREMENT BENEFITS. (A) In the event a member of this plan who was employed by the City in a position covered by the City of Delray Beach General Employees' Retirement Plan prior to the member's employment as a police officer or fire fighter, becomes eligible for normal retirement benefits under this plan, the member's benefit shall consist of the sum of the following benefits: (1) The member's benefit determined in accordance with Section 33.62 (A), but based on the member's credited service under the City of Delray Beach General Employees' Retirement Plan; provided the member has not and will not receive a benefit from the General Employees' Retirement Fund; and further provided that the full actuarial cost of the such benefit is paid by a transfer of an amount equal to the full actuarial value of such member's accrued benefit under the General Employees' Retirement Fund, but without re.rd to the member's vested percentage under said Fund, from the General Employees' Retirement Fund to the City Police and Firefighters Retirement System Trust Fund, and if additional payment is necessary, by payment from the member in accordance with subsection (B), below. (2) The member's benefit determined in accordance with Section 33.62 (A). based on the member's continuous service under this Plan. (13) 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 full-time employment by the City in a position covered by the City of Delray Beach General Employees' Retirement Plan prior to the member's employment as a police officer or firefighter, by paying into the plan the full actuarial cost of such 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 member 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 member purchasing such additional service 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: 4 ORD. NO. 59-02 Cash lump sum pa.vment. Direct transfer or rollover of an elig?e rollover distribution from a a?alified phn. 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 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. Payments deducted from an employee's pay shall be des'~LLmated as employer contributions pursuant to Section 414(h) of the Internal Revenue Code. Section 3. That Chapter 33, "Police and Fire Depaxmxents", 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 ~'~.T~'~D T~ I T~I'~T~"~'~,TC~ 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 direcdy to an eligible retirement plan spedfied by the distributee in a direct rollover. (B) Definitions. (1) Eli~dble 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 disttibutee or the joint lives (or joint life expectancies) of the distdbutee 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) Eli~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 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, an eligible deferred compensation plan described in section 457(b) of the Internal Revenue Code which is maintained by an e~gible employer described in section 457(e)(1)(A) of the Internal Revenue Code, or an annuity contract described in section 5 ORD. NO. 59-02 403(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. (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 distributions for the purchase of continuous service as authorized under the plan, as follows: the fund will accept either a direct rollover of an eligi~'ble rollover distribution or a member contribution of an eli~ble 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 eligfi'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 4 That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 5 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 6 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 ,200~. ATTEST: MAYOR City Clerk First Reading ~ Second Reading ,Q~4,- 6' 6 ORD. NO. 59-02 Helping Shape Florida's Future* Ltw $, I.&WALr[} , mx ATTORNEYS AT LAW REPLY TO: Eric Ash Krisfln Bennett W. O. Birchfield 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 Feagtn Roslynn M. Fergumn Wayne E. Flowers John W. Forehand Walter E. Forehand Mclissa 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-iaw.com .lacksonvllte O.~ce 9428 Baymeadows Road Suite 625 Jacksonville, Florida 32256 (904) 7Y/-2820 Fax: (904) 737-3221 Tol~assee O~O~ee Post Office Box 10788 (32~02) 125 South Gadsden Street Suite 300 Taliahassee, Florida 32301 (8~0) 222-5702 Fax: ($50} 224-9242 West Pahn Beach O.~ice 1700 Palm Beach Lakes Boulevard, Suite I000 West Palm Beach. Florida ¢560 64o-o~o Fax: (561) 640-8202 MEMORANDUM TO: Susan Ruby, City Attorney City of Delray Beach FROM: Jim Lima and Glenn Thomas DATE: January 7, 2003 RE: 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 stmunarized in Ten'ill Pyburn'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 after 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 are members of the plan. Accordingly, we have revised Section 1 of the ordinance to delete the word "initially." As revised, the prior service/military service purchase option applies to all plan members who are 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. 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 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 fi.om 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 RF_~LY TO: TALLAHAS$~ Eric Ash Kristin Bennett W. O. Birehfleld Jody Lane Brooks William G. Cnpko Beth Ann Carlson Michelle Diffenderfer Robert P. Diffenderfer Kenneth W. Dodge Amy M. Dukes Brenna Malouf Durden Laura Jacobs FeagJn 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-iaw.com TO: Susan Ruby, City Attorney City of Delray Beach FROM: Jim Linn DATE: 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 conceming this term. Jacksom, llte Offic~ 9428 Baymeadows Road Suite 625 Jacksonville, Florida 32256 (904) 737-2020 Fax: (904) 73%3221 T~!~assee Office Post Office Box 10788 12fi South Gadsden Street Suite 300 Tallahassee, Florida 32301 (850) 222-5702 Fax: (850) 224-9242 Wear P~m Be~ck 1700 Palm Beach Lakes Boulevard, Suite 10(N) West Palm Beach, Florida 334O1 (561) 64o-o820 Fax: (561) 6408202 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. Diffenderfer Kenneth W. Dodge Amy M. Dukes Brenna Malouf Durden Laura Jacobs Feagin Roslynn M. Ferguson Wayne E. Flowers John ~,. Forehand Walter E. Forehand Melissa Gross-Arnold Kevin S. Hennes~ R. Ste, en Lewis Tort3' E. Lewis James W. Linn Anne Longman G. Stephen Manning David E. Ramba Kenneth G. Spillias Edwin A. Stcinmeyer Glenn E. Thomas Stephen A. Walker www.llw-law.com Jacksorn,tlle 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 Tallaha~ee, Florida/12301 (850) 222-5702 Fax: (850) 224-9242 West Palm Beach Office 1700 Palm Beach Lakes Boulevard, Suite 1000 We~t Palm Beach, Florida 334O1 (561) 640-0820 Fax: (561) 640-8202 LEWIS, LONGMAN ATTORNEYS AT LAW WALKER, P.A. 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 Pyburn'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 pemait a member to use contributions refunded fi:om 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. 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. ORDINANCE NO. 59-02 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DF.I.RAY 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" FOR CERTAIN PURPOSES TO INLCUDE PREVIOUS SERVICE AS A GENERAL EMPLOYEE; CREATING A NEW SECTION 33.71, "COORDINATION OF RETIREMENT BENEFITS", PROVIDING FOR COORDINATION OF BENEFITS FOR MEMBERS WHO HAVE PREVIOUS SERVICE AS A GENERAL EMPLOYEE; AMENDING SECTION 33.70, "DIRECT TRANSFERS OF ELEIGIBLE ROLLOVER 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 FOI.I.OWS: 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 meamng. "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 retixement 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. 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 2 ORD. NO. 59-02 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 tl~ee 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) Continuous service shall also include, for purposes of vesting and determining eligibility for normal retirement only, the years and completed months of a member's full-time employment with the City m a position not eligible for membership in this plan, prior to the member's employment as a police officer or firefighter. Such service shall not be considered in determining the amount of a member's benefits under this plan. "EARNINGS." Basic wages paid to a member, excluding overtime, bonuses and any other non-regular payments. "EFFECTIVE 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. 18S.02, or classified as police officers in training, or dassified as volunteer or regular full-time fire fighters, 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. 3 ORD. NO. 59-02 "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. Section 2. That Chapter 33, "Police and Fire Deparunents", subheading, "Pensions", of the Code of Ordinances of the City of Delray Beach is hereby amended by creating a new Section 33.71, "Coordination of Benefits", to read as follows: Section 33.71 COORDINATION OF RETIREMENT BENEFITS. (A) In the event a member of this plan who was employed by the City in a position covered by the City of Delray Beach General Employees' Retirement Plan prior to the member's employment as a police officer or fixefighter, becomes e~gible for normal retirement benefits under this plan, the member's benefit shall consist of the sum of the following benefits: (1) The member's benefit determined in accordance with Section 33.62 (A), but based on the member's credited service under the City of Delray Beach General Employees' Retirement Plan; provided the member has not and will not receive a benefit from the General Employees' Retirement Fund; and further provided that the full actuarial cost of the such benefit is paid by a transfer of an amount equal to the full actuarial value of such member's accrued benefit under the General Employees' Retirement Fund, but without regard to the member's vested percentage under said Fund, from the General Employees' Retirement Fund to the City Police and Firefighters Retirement System Trust Fund, and if additional payment is necessary, by payment from the member in accordance with subsection (I3). below. (2) The member's benefit determined .in accordance with Section 33.62 (A), based on the member's continuous service under this Plan. (B) 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 full-time employment by the City in a position covered by the City of Delray Beach General Employees' Retirement Plan prior to the member's employment as a pohce officer or firefighter, by paying into the plan the full actuarial cost of such 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 member 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 member purchastng such additional 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: 4 ORD. NO. 59-02 Cash lump sum payment. Direct transfer or rollover of an eligi~'ble 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 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(1!) of the Internal Revenue Code. Section 3. 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. 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) 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, an annuity plan described in section 403(a) of the Internal Revenue Code, o~ 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 5 ORD. NO. 59-02 403C0) 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. (4) Direct rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. (C) Rollover~ 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 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 roliover 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, o.r from an eligible plan under section 457Co) 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 4 That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 5 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 6 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. ATTEST: MAYOR City Clerk First Reading Second Reading 6 ORD. NO. 59-02 01/06/03 13:02 FAX ~009/01l GABRIEL. ROEDER, SMITH & COMPANY Consultants & Actuaries 3(31 East Las Olas Bird · Suite 200 · Ft Ladderdale, FL 33301-~..54 · 954-527-1616 - FAX 95~.-52~00R3 Januaw 6,2003 Mr Charles Slavin, Actuary Bureau of Local Rebrement Systems Division of Retirement Cedars Executive Center, Bldg C 2639 Nodh Monroe Street Tallahassee, Flodda 32399-1560 Ms. Patricia Shoemaker Bureau of Municipal Police Officers' and Firefighters' Pension Funds Division of Retirement Building B, Room 252 Post Office Box 3010 Tallahassee, Flodda 32315-3010 Re: Actuarial Impact Statement for the Delray Beach Police and Firefighters Retirement System Dear Sir and Madam: Please review the enclosed ordinance that allows a member of the Plan who was previously a member of the City's general employee plan to be credited under this Plan with such general employee plan service for purposes of vesting and determining nom~al retirement eligibility. The ordinance further provides for the coordination of pension benehts for members of this Plan who also have pdor service as a general employee of the C~ty Finally, the proposed ordinance technically amends the Plan regarding rollovers and the purchase of service credit using transfers and rollovers from other retirement plans. In our opinion, th~s ordinance will have neghg~ble actuarial impact or] the Fund Respectfully submitled, By_ For the Board of Trustees As Plan Administrator J Stephen Palmquist, AS ,/y~AAA, FCA Enrolled Actuary No. 02-1560 t ' 100 ANNOUNCEMENTS LmlAL No'rmLs A PUBLIC HEARINC w~ ~ h~a o~ me on~nlnoes at 7'00 ~N~Y 7 (~at~c~n ~ ~ ~ I~NW ~r ~a~n NW 1~ A~, ~ ~, ~h FLORIDA ~END~NG C~- ~R ~ 'EMPLOYES ~L~IES ~P~ ~ THE CDDE O~ ~DI- ~ES ~ ~E ~ OF DEL~Y B~CH FgORIDA BY AMENDING ~S', ~O ~TtNG k N~ ~C- ~ ~ ~ TO ~ PAPTICF P~S WI~ AT ~ OF CRED}TED SERVIC~ TD ~R- C~E UP TO THREE Y~ OF CREDITED SERVICE ~ED ~l~ B~RNME~ SERVICE, C~S[ PROVIDING A VALIDI~ T~ DA~ M~ION ~ ~E CI~ ~CH ~lOA ~V ~NDING ~ION ~ ~g, 'DEFINITIONS R~SING ~E DEFINITION OF ~O~E TO ~E ~RTA~N ~D SERVICE ~ ~ ~ P~P~ ~TAiN ~t~SLY ~L~D AMENDING SECTION 3~. "RETIREMEI~q' INCOME. BASIS. AMOUN'T. AND PAYME~I"', ~- TI~ (L), '~RE~ ~ ELIGIB~ R0~D~R DI~IBU* T~' ~ ~ P~IP~ ~ ~E ~LY ~D ~ P~T~IPATI~ IN ~ ~ ~ ~ A DI~CT ~ ~IBI~ R~L~R DISTRIBU- TeS TQ PURC~E ~ ~R~, ~D- I~ A ~ R~ ~. ~ ~D~ ~ ~ C~ ~ ~H~ ~1~ ~NDI~ ~- ~ ~, '~LI~ ~D FI~ ~P~T- ~S~ ~1~ ~ TH~ COD~ ~ ~DI~C~S ~ C~ ~ ~L~Y B~H FL~- '~RN~tON5". R~ISI~ THE TO ~ A FIEFt~R W~ AT ~RVI~ TO P~C~ UP TO ~EE ~D~IO~ ~S ~ SER- ~ ~ ~1~ EMPL~E~ ~ A ~$ ~ ELIGIB~ RO~R V~D~ C~U$E ~D ~ ~1~ DA~ ~ ~ '~LIOE ~ FI~ ~PART- ~ ~E CODE ~ ~Dt~S ~E CI~ ~ OE~Y B~CH, ~- ~ ~Y ~ENDING SE~ION ~ ~ CErTAiN ~R~S TO ~ ~US ~E ~ A ~ ~1~ ~ 71 ~DI~ ~ ~ R~t~ME~ BENERTS' ~ ~ ~M~ WHO ~ ~I~S SE~I~ ~ A GENE~L E~LOYEE, ~ENDING SE~ION ~70 ~1~ ~RS ~ ELt- ~ ~R~E OF ~INUOUS ~, ~DING A REaR C~E ~OVIDING A V~IDI~ gib ~. 'EMERGENCY MEDICAL 'TRN~SPORTATIOfl lEES", SUI~EC ~ gO.DB(A), TO ADJUST THE FEE SCNEOULE FOR EMERGENCY MED- ICAL TRANSPORTATION IN ACCOR- DANCE WIT~ THE NATIONAL AMERI* CAN FEE S4~IEDULE, PROVIDING A GENERAL REREALER CLAUSE, A SAVING CI.AI.I~E, AND AN EFFECTIVE DATE by I'm Ct~y Cu. ,. ,~,,~e w~ m~mct to Pumua~*m F S 2~6 0106 PUBLISH Fr, day December 27 2002 ,N~ g6564 3~yO mt~on Crammers ~ u'J ~ "~ ~,~ ~,e ~)um Ol 8 00 a.m ~o ~ ~m ICE ~ ~ C~ ~ RID~ ~END~NG SEC ~s~E~ p~KtNG ~ 4 ~ NS SU5~CTION R~U~ ~AT,O. OF ~, ~ ~E ~D D)~LOF" ~RB I~ ~y ~H ~O p~O~OE FOR ~0 L~EU ~ p~Kl~ REGU- larS ~IDING A GENE~ RE~ C~USE A ~VING ~ ~O ~ E~~ OA~ ~H, .~NDiNG SEC' ~ ~ING SEXTON 111 1~ ~1~ ~ ~O