Ord 15-07f ~
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ORDINANCE NO. 15-07
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AMENDING
CHAPTER 35, "EMPLOYEE POLICIES AND BENEFITS",
SUBHEADING "RETIREMENT PLAN", OF THE CODE OF
ORDINANCES OF THE CITY OF DELRAY BEACH,
FLORIDA, BY AMENDING SECTION 35.097, "RETIREMENT
INCOME; BASIS, AMOUNT, AND PAYMENT", TO PROVIDE
AN ALTERNATIVE METHOD FOR PURCHASING THE
OPTIONAL ENHANCED MULTIPLIER FOR PERIODS OF
PRIOR CITY EMPLOYMENT; PROVIDING A GENERAL
REPEALER CLAUSE; PROVIDING A VALIDITY CLAUSE;
AND PROVIDING AN EFFECTNE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading,
"Retirement Plan", of the Code of Ordinances of the City of Dekay Beach is hereby amended by
amending section 35.093, "Retirement Income; Basis, Amount and Payment", to read as follows:
Sec. 35.097. RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT.
(1~ Optional Enhanced Multiplier.
(1) Notwithstanding any provision of the plan to the contrary, an eligible participant may
elect a normal retirement benefit or early retirement benefit equal to three percent (3%) of
final monthly compensation multiplied by credited service, expressed in years and tenths of a
year, up to a maximum of thirty (30) years. Participants electing this enhanced multiplier
shall thereafter contribute three and forty-five one-hundredths percent (3.45%) of earnings
to the Plan in addition to the participant contribution specified in Section 35.095, and shall
receive the enhanced multiplier for future periods of credited service only. Such participants
may also elect to purchase the enhanced multiplier for some or all periods of continuous
service prior to the date of the election, by paying into the Plan the full actuarial cost of the
enhanced multiplier, plus the full cost of any actuarial or other professional services required.
Such payment may be made by cash lump-sum payment or by a direct rollover of an eligible
rollover distribution or a member contribution of an eligible rollover distribution from an
individual retirement account described in Section 408(a) of the Internal Revenue Code, an
individual retirement annuity described in Section 408(6) of the Internal Revenue Code
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Section 2. 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 3. That this ordinance shall become effective immediately upon its passage
on second and final reading, except as to plan participants who are covered under a collective
bargaining agreement. This ordinance shall become effective as to the excluded employees
immediately upon the date of ratification and execution of a collective bargaining agreement or
memorandum of understanding that includes the provisions of this ordinance.
Internal Revenue Code, a qualified trust described in Section 401 (a) of the Internal Revenue
Code Section or an annuity contract described in Section 403(6) of the Internal Revenue
Code. Alternatively a participant who also~articipates in a Section 457(61 plan mTv
purchase additional credited service in an amount sufficient to provide an additional benefit
etc ual to the benefit produced by a~pTg the enhanced multiplier provided- in this
subsection to some or all~eriods of continuous service prior to the date of the election, by
paying into the Plan the full actuarial cost of such additional benefit plus the full cost of any
actuarial or other~rofessional services recluired• with payment for such alternative purchase
made by a direct transfer from the participant's 457(6) account.
PASSED AND ADOPTED in regular session on second and final reading on this 17~' day
of ~, 2007.
ATTEST: ~\
- ~ • \~'
Ciry Clerk, CMC
First Reading ~ ~ O~
Second Reading ~ ~~ ~~
1II`~ ~ •
MAYOR
ORD. NO. 15-07
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: CITY MANAGER
SUBJECT: AGENDA ITEM # ~ • ~ -REGULAR MEETING OF APRIL 17, 2007
ORDINANCE NO.15-07
DATE: APRIL 13, 2007
ITEM BEFORE COMMISSION
This ordinance is before Commission for second reading to amend Chapter 35, "Employee Policies
and Benefits", Subheading "Retirement Plan", of the Code of Ordinances of the City of Delray
Beach, Florida, by amending Section 35.097, "Retirement Income; Basis, Amount, and Payment', to
provide an alternative method for purchasing the optional enhanced multiplier for periods of prior
city employment.
BACKGROUND
At the first reading on Apri13, 2007, the Commission passed Ordinance No. 15-07.
FUNDING SOURCE
N/A
RECOMMENDATION
Recommend approval of Ordinance No. 15-07 on second and final reading.
S:\City Clerk\AGENDA COVER MEMOS\Ordinance Agenda Memos\Ord 15-07 Amend Chptr 35 Empbyee Policies and Benefim Retirement Plan 2nd Reading.04.13.07.doc
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CITY ATTORNEY'S OFFICE ~`,"~ ~~ Fi~~y~ ~5 ~` rk, `,';~, K_.~ ;~3~~.` - AFL°R D ~755~~
DELRAY BEACH
All-America City
' 'DATE:
1993 TO:
2001
FROM:
MEMORANDUM
March 29, 2007
City Commission
David Harden, City Manager
Susan A. Ruby, City Attorney
Writer's Direct Line: 561/243-7091
SUBJECT: Ordinance 15-07
This ordinance amends the General Employee Pension Plan and has the effect of
permitting people to use 457 plan monies to purchase an increased multiplier
benefit by buying additional credited service.
This ordinance will not apply to persons covered by the unions until the impact is
bargained.
Ple a place th' ordinance on the City Commission agenda of April 3, 2007.
SA
Attachment
Cc: Doug Smith, Assistant City Manager
Joe Safford, Finance Director
Karen Schell, Pension Coordinator
Bruce Koeser, Human Resources Director
James W. Linn, Esq.
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,-
ORDINANCE NO. 15-07
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35,
"EMPLOYEE POLICIES AND BENEFITS", SUBHEADING
"RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF
THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING
SECTION 35.097, "RETIltEMENT INCOME; BASIS,
AMOUNT, AND PAYMENT", TO PROVIDE AN
ALTERNATIVE METHOD FOR PURCHASING THE
OPTIONAL ENHANCED MULTIl'LIER FOR PERIODS OF
PRIOR CITY EMPLOYMENT; PROVIDING A GENERAL
REPEALER CLAUSE; PROVIDING A VALIDITY CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading,
"Retirement Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended by
amending section 35.093, "Retirement Income; Basis, Amount and Payment", to read as
follows:
Sec. 35.097. RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT.
(N) Optional Enhanced Multiplier.
(1) Notwithstanding any provision of the plan to the contrary, an eligible participant
may elect a normal retirement benefit or early retirement benefit equal to three percent
(3%) of final monthly compensation multiplied by credited service, expressed in years
and tenths of a year, up to a maximum of thirty (30) years. Participants electing this
enhanced multiplier shall thereafter contribute three and forty-five one-hundredths
percent (3.45%) of earnings to the Plan in addition to the participant contribution
specified in Section 35.095, and shall receive the enhanced multiplier for future periods
of credited service only. Such participants may also elect to purchase the enhanced
multiplier for some or all periods of continuous service prior to the date of the election,
by paying into the Plan the full actuarial cost of the enhanced multiplier, plus the full cost
of any actuarial or other professional services required. Such payment may be made by
cash lump-sum payment or by a direct rollover of an eligible rollover distribution or a
member contribution of an eligible rollover distribution from an individual retirement
account described in Section 408(a) of the Internal Revenue Code, an individual
retirement annuity described in Section 408(b) of the Internal Revenue Code (other than
an endowment contract), an annuity plan described in Section 403(a) of the Internal
Revenue Code, a qualified trust described in Section 401(a) of the Internal Revenue Code
Section or an annuity contract described in Section 403(b) of the Internal Revenue Code.
Alternativelyparticipant who also participates in a Section 457(b) plan may purchase
additional credited service in an amount sufficient to provide an additional benefit equal
to the benefit produced by applying the enhanced multiplier provided in this subsection to
some or all periods of continuous service prior to the date of the election, by pa n~ng into
the Plan the full actuarial cost of such additional benefit, plus the full cost of any actuarial
or other professional services required; with payment for such alternative purchase made
by a direct transfer from the participant's 457 b) account.
Section 2. 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 3. That this ordinance shall become effective immediately upon its
passage on second and final reading, except as to plan participants who are covered under a
collective bargaining agreement. This ordinance shall become effective as to the excluded
employees immediately upon the date of ratification and execution of a collective bargaining
agreement or memorandum of understanding that includes the provisions of this ordinance.
PASSED AND ADOPTED in regular session on second and final reading on this the
day of , 2007.
MAYOR
ATTEST:
City Clerk
First Reading
Second Reading
ORD. NO. 15-07