105-84 ORDINANCE NO. 105-84
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY
BEACH, FLORIDA, AMENDING CHAPTER lg, "PENSION AND RETIRE-
MENT", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY
BEACH, FLORIDA, BY AMENDING ARTICLE IV~ "PENSIONS FOR GENERAL
EMPLOYEES," DIVISION 2, "ELIGIBILITY; PARTICIPATION; SERVICE", BY
REPEALING SECTION 18-79, "ELIGIBILITY; PARTICIPATION", AND
ENACTING A NEW SECTION 18-79, "ELIGIBILITY; PARTICIPATION", WHICH
DEFINES "EMPLOYEE"; SETS FORTH THE DATE OF PARTICIPATION FOR
EACH EMPLOYEE IN THE PENSION PLAN; MAKES THE PLAN MANDA-
TORY, BUT PROVIDES THAT CERTAIN EMPLOYEES SHALL HAVE AN
OPTION OF WHETHER TO PARTICIPATE IN THE PLAN; PROVIDES THAT
PARTICIPANTS MAY UNDER CERTAIN CIRCUMSTANCES BE ENTITLED TO
DISABILITY BENEFITS AND THAT THE BENEFICIARIES OF CERTAIN
PARTICIPANTS MAY BE ENTITLED TO DEATH BENEFITS; THAT SECTION
18-g0, "SERVICE", IS REPEALED AND A NEW SECTION lg-g0, "SERVICE", IS
ENACTED TO DEFINE "SERVICE" FOR PURPOSES OF BENEFIT CALCU-
LATIONS AND TO PROVIDE THAT THE PERIOD OF SERVICE MAY BE
MODIFIED BY THE PARTICIPANT'S BUYING BACK CERTAIN PERIODS OF
UNEMPLOYMENT OR EXCLUSION FROM THE PLAN; BY AMENDING SEC-
TION 18-82, "CREDITED SERVICE", TO DEFINE CREDITED SERVICE FOR
PURPOSES OF CALCULATING NORMAL RETIREMENT DATE; TO DEFINE
CREDITED SERVICE FOR PURPOSES OF BENEFIT CALCULATION; TO
ALLOW FOR THE REPURCHASE OF PREVIOUS EMPLOYMENT PERIODS AS
WELL AS ANY TIME PERIODS DURING WHICH AN EMPLOYEE OR FORMER
EMPLOYEE WHO RETIRED FROM THE CITY DURING THE PAST YEAR WAS
EXCLUDED FROM THE PLAN; PROVIDING A SAVING CLAUSE; PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Delray Beach, Florida, deems it to be in the
best interests of the current and future members of the general employees' pension plan to ensure that
any efforts made to eliminate age and/or sex discrimination do not result in further hardships to
present or recent members of the plan.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Section 18-79, "Eligibility; participation", of the Code of Ordinances of the
City of Delray Beach, Florida~ is hereby repealed.
Section 2. That a new Section 18-79, "Eligibility; participation", of the Code of Ordinances
of the City of Delray Beach, Florida, is enacted to read as follows:
Sec. 18-79. Eligibility; participation.
The word "employee" as used herein means any person in the regular full-time service of the
city; provided, however~ that such term shall not include city council members, the city attorney (and
assistants), judge, prosecutor (and assistants) or any person employed for a temporary period or for a
temporary job, or whose customary employment is for less than twenty (20) hours in any one week or
for less than five (5) months in any one calendar year. Also those firemen and policemen employed by
the city who are participants in retirement plans as provided for in Chapters 175 and 185 of the Florida
Statutes or other applicable city ordinances shall not become participants in the plan. The pronouns
'qae", 'q~im", and 'q~is", used in this plan, shall also refer to similar pronouns of the feminine gender
unless otherwise qualified by the context.
The date on which each such employee will become a participant in the plan-shall be:
(a) April 23~ 197#, for each employee who was a participant in the superseded plan as of April
22, 197t~;
(b) April 23, 197~, or the date after April 23, 197g~ as of which each employee not a participant
in the superseded plan completed one year of credited service' since his last employment
date provided that the employee made payments to the plan beginning on the first
anniversary of his last employment date. Any employee who was excluded from making
payments into the new plan by virtue of being over the then-existing maximum age
provisions shall be considered a participant for each year after the first year of credited
service he elects to buy back under the procedures provided in Section 18-82, plus whatever
participation time he accrues after September 25, 1984, but before termination. Re-
employed persons may receive credit for participation based upon a previous employment
period provided that they buy back that time as provided in Section 18-82.
All previously employed persons who had been excluded from the plan due to being over the
then-existing maximum age provisions and who chose not to buy back any previous years
shall become a plan participant on the first day after September 25, 19g~, on which they
have been continuously employed for one year. Persons who were previously excluded from
the plan due to being over the maximum age and who choose not to buy back shall have the
option of not becoming a plan participant.
~ employee except those exempted under subsection (c) above who meets the eligibility
:nfs as set forth above shall, as a condition of continued employment, make contributions to
is required by Section 15-93 hereof, and shall become a participant in the plan subject to all
lisions.
employee who is absent from the active service of the city on the effective date of the plan
of a leave of absence granted by the city, or by reason of compulsory military service, will
participant hereunder as of the date of his return to active employment.
~ participant will be retired under the plan and entitled to a retirement income upon
,t from service with the city by reason of his age, subject to any minimum service
:nfs herein. Each such participant whose employment is terminated because of mental or
lisability in accordance with section 18-112 shall be entitled to disability benefits. Upon the
I participant, his beneficiaries will be entitled to death benefits as prescribed in section 18-113
~ny participant whose service is terminated for any reason other than retirement, disability
t or death will be entitled to benefits upon termination of service as provided in section
Section 3. That Section lg-g0, "Service", of the Code of Ordinances of the City of Delray
)rida, is hereby repealed.
Section 4. That Section lg-80, "Service", of the Code of Ordinances of the City of Delray
~rida, is enacted to read as follows~
Service
term "service" means that period of continuous, uninterrupted employment with the city
)articipant's last date of employment, subject to buy back credits described in Section
, absence from the active service of the city, including but not limited to absences by reason
]e or resignation, which are not deemed a leave of absence as defined in Section lg-gl
I be considered a termination of service.
Section 5. That Section 18-82, "Credited service", of the Code of Ordinances of the City of
ch, Florida, is hereby amended to read as followsJ
Credited service.
The credited service of each eml~leyee-~ participant for purposes of calculatinl~ normal
retirement date will be the total period of his service as defined in Section lg-80 hereof, in
completed months, from this last date of employment, subject to reemployment credits as
described in subsection ~ (e) until his date of termination of employment, except as
provided in Section l(~=79-1g-g2(c) af~.~e~-~.~(b} below.
Credited service for purpose of calculatinK pension benefits shall be the same as subsection
(aY abovet provided that the employee became a plan participant on the first anniversary
his last employment date and continued to participate until termination of employment.
Any eml)loyee who was excluded from becomin~ a participant in the plan due to beinl~ over
2 ORD. NO. 105-84
the then-existing maximum age provisions shall have credited service for purposes
benefit calculation which is equal to the years of participation he elects to buy back under
subsections (f) and (~) plus .one yeart plus a.ny time after Septembe. r,2~t 1984 the employee
remains-in the employ, of the city and a,.pa.,rticipant of the plan. In no event shall this
credited service calculation exceed the total number of years of permanent employment
with the city.
(c_~) Current employee% or emptoy,ees who .left the employ of the city since 3anu,ary l~ 195% who
participated in the plan and who were excluded from further participation in the ,plan
du, ring employment due to being over the then-existing maximum age provision% but who
never received a distribution (by retirement pension income or withdrawal of employee
contributions) from the plant sha.l! have., ,, credlted service for ,purposes of benefit calculation
equal to the pe. riod of participa.ti0n before exclusion plus one yeart plus whatever time they
elect to buy back Under subsections (f) and (~) below~ plus the time after September 2,~.~
Iog~ during which they, ,contributed tot and participated in the plan. If a distribution was
received by the employeet then c,redited service for purposes of benefit calculation shall be
equal to the number of years the employee elects to buy back under subsections (f) and
plus one year~ plus, the time after September 25t logq during which the employee
contributed to and participated in the plan. Employees in thi,s, category may buy back both
those years fOr, which they have received a distribution and the years during which they
were excluded from the plan. In no event shall this credited service calculation exceed the
total number of years of permanent employment with the city.
(4~L (d__~) The period of any absence of thirty-one (31) days or more will be excluded from an
employee's or a participant's credited service unless he receives regular compensation from
the city during such absence and except as otherwise provided below. Any absence of
thirty (30) days or less will be included. The first two (2) years of any absence after the
effective date of the plan due to the employee's or participant's engagement in military
service will be included in his credited service if such absence is covered by a leave of
absence granted by the city or is by reason of compulsory military service. An employee or
a participant who was absent prior to the effective date of the plan because of his
engagement in military service will be credited for the full period of such absence if such
absence was covered by a leave of absence granted by the city or was by reason of
compulsory military service~ provided such period would otherwise have been included as
credited service if the employee or participant had been in the active service of the city.
(e__~) Former plan participants who are reemployed by the city as eligible employees wiIi be
considered new employees with credited service for all purposes calculated as such unless
the former participants elect to pay back to the plan the amount of any previous
distribution received from the plan plus interest. The amount of interest required will be
calculated based upon a seven percent (7%) per annum rate for the period from date of
original distribution to the date of repayment. Former plan participants who elect to repay
this amount will be granted the credited service awarded prior to their previous
termination of service.
(~L (f.)) Eligible employees who had previously been excluded :[rom plan participation due to being
over the maximum s~eted allowable age :[o,r ,participation at hirer or, were excluded from
the plan due to being over the then-existing maximum are at any time during their
employment with the city~ aed-whe ~h=~.l-be~~~~f-~'.: ~ .... !_..
c-~.~:~--:~ ~.c'~'
r~':.' cm~.:~-:c: =: e~-~he~lete-e~-~c::!~-qf~e will have their credited service calculated
in accordance with subsections (a)~ (b)~ (c.)~ and (d) of this subsection. Eligible employees
who wish to buy back any time they were excluded from the plan shall be required to make
payment according to subsection (~:), which payment shall be ,equal to ufl4e~-these-Rew
p=r*.~!~:.~:c cL:c~--t~-pe~-~e--the-~:~.:~ an amount which represents the employee contri-
butions they would have made to the plan had they always been eligible, plus interest. The
amount of interest required will be calculated based upon a 7% per annum rate for the
period-fr~-wha~ ...... ~v~aeen-the4~-pr: ..... ~-~*-. d=*.~_ :[rom which the money
would otherwise have been paid into the plan to the date o:[ repayment. Those
Pee~ieil~e~~ who elect to make this payment will be granted credited service
~-4he-~~~r-~late-e~.hk-e ~or purposes o:[ benefit calculation in accordance
with subsections (b) or (c). Employees will be required to pay back the most recent year, s
fir, st. All of the new participants will receive credited service for the purpose
determining their norma~ retirement date whether or not the optional payment is made.
3 ORD. NO. 105-84
The repayment provisions of this subsection shall also be available to former employees
who have retired from the city since 3anuary 1~ 198&~and who were excluded from the plan
due to beinj~ over the maximum are thereby bainK prevented from accruinR ten (10) years of
participation.
(~ (g) The repayment of a previous distribution plus interest under subsection (~ (e__) above or the
payment of employee contributions plus interest under subsection ~) (f) above will be
payable in a lump sum within ninety (90) days after reemployment or on~r before 3uly 1~
1985 af, t~-~-~~-~~~.~.= O~=.ncr, cc I~~~-~ew~J) whichever is ~J later.
However, persons who are employees of the city as of 3anuary 16) l~)g~ at 5:01 p.m. fl~e-d~te
e~-a~J~e~-~O~i~ee~-~~may elect to pay the amount required in
installments. If this option is used, one thousand dollars ($1,000) will be due within ninety
(90) days of the date of adoption of this Ordinance by the city council with subsequent
payments of the lesser of one thousand dollars ($l,000) or the balance due payable every
three (3) months after the initial payment. If any type of benefit payment under the plan
begins prior to the full payment of employee contributions or a prev.~.ous distribution plus
interest, the outstanding balance will be deducted from the benefit payments as they
become due.
Section 6. 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 iurisdiction to be invalid, such
decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the
part declared to be invalid.
Section 7. That this ordinance shall become effective immediately after its passage on
second and final reading.
PASSED AND ADOPTED in regular session on second and final reading on this the
15th day of January , 19S5.
MAYOR
ATTEST:
First Reading December 11, 1984
Second Reading January 15, 1985
ORD. NO. 105-84