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12-74 ORDINANCE NO'. 12-74. AN ORDINANCE OF THE CITY OF DELRAY BEACH, FLORIDA, ENACTING INTO LAW AN AMENDED PENSION PLAN FOR POLICE OFFICERS, AND VOLUNTEER AND REGULAR FULL-TIME FIRE- MEN; PROVIDING FOR AN ORDERLY TRANSFER OF FUNDS TO THE NEW FUND~ PROVIDING FOR THE ELECTION OF NEW TRUSTEES~ PRESERVING ALL ACCRUED BENEFITS TO DATE FOR THE POLICE OFFICERS, AND VOLUNTEER AND REGULAR FULL-TIME FIREMEN; PROVIDING A SAVING CLAUSE; RE- PEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Delray Beach presently provides, under Chapters 175 and 185, F.S.A. pension plans and related benefits for City Police and Firefighters which are of major importance as fringe benefits of City employment; and, WHEREAS, City Council is desirous of updating the Policemen's Pension Plan and the Firemen's Pension Plan; and, WHEREAS, City Council is desirous of having one pension system to be known as The City of Delray Beach Police and Firefight~ers Retire- ment System for its Policemen and Firemen; and, WHEREAS, C.ity Council, the City Administration, the Trustees of the M,l~cip~l Do!ice O~~,~ ~~ m~ ~,~ =~ ~ m .... ~ of the Municipal Firemen's Pension Trust Fund upon extensive examina- tion of the present plan and the proposed City of Delray Beach Police and Firefighters Retirement System are desirous of adopting the pro- posed Retirement System; and, ~EREAS, the proposed R'etirement System preserves all benefits accrued to date under the present Trust Funds, NOW, T~FO~, BE IT O~AINED BY ~ CI~ CO~CIL OF ~ CI~ OF DE~Y B~CH, FLOR~A, AS FOLLOWS: SECTION 1. ~at the following sections of Chapter 19 "Pensions" of the Code of Ordinances of the City of Delray Beach, as amended, are hereby rescinded and repealed. (a) Sec. 19-31 "Increased Pension Benefits for Firemen" (b) Sec. 19-32 "Increased Pension Benefits for Policemen" SECTION 2. That Chapter 19 "Pensions" of the Code of Ordinances of the City of Delray Beach, as amended, be further amended to read as follows: Section 1. DEFINITIONS. As used herein, unless otherwise de- fined or required by the context, the following words and phrases shall have the meaning indicated: 1. City means City of Delray Beach, Florida. 2. Aqreement means this written instrument setting forth the provisions of the Retirement System. 3. System means the City of Delray Beach Police and Firefighters Retirement System as contained herein and all amendments thereto. 4. Fund means the Trust Fund established herein as part of the System. 5. Board means the Board of Trustees, which shall administer and. manage.the System herein pro- vided and serve as Trustee of the Fund. 6. Employee shall mean all employees of the'City classi- fied as full-time sworn Police Officers, as defined on the Effective Date in Section 185.02, Chapter 185 F.S.A., or volunteer or regular full-time Firemen, as defined on the Effective Date in Section 175.032, Chapter 175 F.S.A., but shall exclude all civilian members of the Police and Fire Departments. 7. Member means an Employee who fulfills the prescribed participation requirements. 8. Continuous means uninterrupted service by a Member Service (expressed as years and completed months), from the date he last entered employment as an Employee until the date his employment shall be terminated by death, disability, retirement, resignation, or discharge, pro- vided however, the Continuous Service of any Member shall not be deemed to be interrupted by: a. Any authorized leave of absence or vaca- tion, provided that all Members similarly situated in similar circumstances shall be treated alike pursuant to uniform, non-discriminatory rules. b. Any service, voluntary or involuntary in the Armed Forces of the United States, provided the Member is legally entitled to re-employment under the provisions of the Universal Training and Service Act, and any amendments thereto, or any law applicable to such re-employment, and provided further, that said Member shall apply for re-employment within three (3) months following termination of such service. However, provided further., no credit for benefit eligibility or compu- tation purposes under the System shall .be allowed for any such period of leave of absence or military service. Nothing of the aforementioned shall serve to re- .duce the accrued accredited services of the members on the effective date of the plan. -2- Ord. No. 12-74. 9. Earninqs means basic wages paid to a Member, excluding overtime, bonuses, and any other non-regular payments. 10. Average Monthly means 1/24th of the 'arithmetic average Earnings of Earnings for the highest consecutive 24 month period preceding the actual retirement or termination of a Member. 11. Beneficiary means the person or persons entitled to receive benefits hereunder at the death of a Member who has or have been desig- nated in writing by the Member and filed with the Board. If no such 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. 12. Effective Date means the date on which this Ordinance and System become effective. 13. Spouse shall mean the lawful wife or husband of a Member at time of retirement &nd death. Section 2. MEMBERSHIP~ ~ 1. Conditions of Eligibility. a. Employees, as defined herein, who are covered under the retirement program provided under Chapters 175 and 185, F.S.A., as of the Effective Date, shall become Members of this System. b. Any Employee, as defined herein, who is a Member of the City's Retirement Plan for General Employees at the time of adoption of this Retirement System may become a Member of this System provided he elects to transfer his employee contribu= tion account from the Retirement Plan for General Employees to this System, which he is authorized to do by this Ordinance, and provided he also deposits to the Fund, on the basis of procedures established by the Board, an amount equal to the additional monies he would have contributed had he always been covered under Chapters 175 and 185, plus interest in an amount to be determined by the Board. c. Any other Employee, as defined herein, shall as a condi- tion of employment become a Member upon such employment, provided that: 1. Such Employee satisfactarily completes all required medical examinations for an employee of his classifica- tion, including any such examination prescribed by the Board, and, 2. Such employee meets all requirements of the Civil Service Board of the City. Provided further, however, that for purposes of disability benefits hereunder, th~ Board may declare anyone becoming a Member under this -3- Ord. No. 12-74. paragraph "c" to be permanently ineligible, but only at the time of initial Membership, and only in the event that any medical examination under "1" above re- veals a condition of symptom which has previously been determined by the Board to render Members not eligible for disability. Such a determination by the Board as to~ disqualifying conditions and symptoms must be re- flected in prior Board Minutes, and such a declaration of a Member's ineligibility must be recorded in the Board's Minutes and noted on the Member's application form o 2. Application. Each eligible Employee shall complete an appli- cation form covering the following points, as well as such other points or items as may be prescribed by the Board: a. Such Employee's acceptance of the terms and conditions of the Retirement System, including an initialling of any declaration of ineligibility for disability benefits, and, b. Such Employee' s' designation of a Beneficiary or Bene- ficiaries, and, c. Authorizing a Six Percent '(6%) payroll deduction payable to the System. 3. Change in Designation of Beneficiary. A Member may from time to time change his designated Beneficiary by written notice to the Board upon forms provided by the Board. Upon such change, the rights of all previously designated Beneficiaries to receive any benefit under the System shall cease. Section 3. BENEFIT AMOUNTS AND ELIGIBILITY. 1. Normal Retirement Date. a. A Member may elect to retire on the first day of any month if coincident with, or following the attainment of his fifty-second (52nd) birthday and the completio'n of twenty (20) years of Continuous Service; provided, however, Employees who are eligible to and become Members as of the Effective Date of this System shall be eligible to retire, as above, upon the attainment of his fifty-second (52nd) birthday, regardless of the number of years of Continuous Service. b. All members shall retire not later than their sixty-fifth (65th) birthday; provided, however, that a Member shall be required to retire earlier, if eligible, upon the determina- tion by the Member's Departmental Chief and the City Manager that the Member is no longer physically or mentally capable of satisfactorily performing his duties. 2. Normal Retirement Benefit. a. Durationt survivor benefits. A Member retiring hereunder on his Normal Retirement Date shall receive a monthly benefit which shall commence on his Normal Retirement Date and be continued thereafter during his lifetime.; upon his death the full Retirement benefit shall be continued to his Spouse for One (1) Year and sixty per cent (6~/o) of said amount continued thereafter until the earlier of death or remarriage. -4- Ord. No. 12-74. b. Amount. Two and one-half per cent (2~/o) of Average Monthly Earnings, for each.year of Continuous Service, sub- ject in any event to a Maximum of Seventy-five per cent (75%) of Average Monthly Earnings, provided~ however, ~iembers as of the Effective Date shall receive at their Normal Retire- ment Date (age 52 regardless of years of service) the greater of the ben'e'fit provided by the formula above or fifty per cent (5~/~) of Average Monthly Earnings. 3. Early Retirement Date. A Member may retire on the first day of any. month following the completion of twenty (20) years of Continuous Service. 4. Early Retirement Benefit. A Member retiring hereunder on his Early Retirement Date shall receive either a deferred or an immediate monthly retirement benefit as follows: a. A deferred monthly retirement benefit which shall commence on his earliest Normal Retirement Date and shall be continued on the first day of each month thereafter during his lifetime. The amount of such deferred monthly retirement benefit shall be determined in the same manner as for retirement at his Normal Retirement Date except that Continuous Service.and Average Monthly Earnings shall be determined as of his Early Retirement Date; orr. b. Subject to Board approval, an immediate monthly retirement benefit which shall commence on his Early Retirement Date or any date prior to Normal Retirement Date as requested by the Member and shall be continued on the first day of each month thereafter-during his lifetime. The benefit payable shall be as determined in subparagraph "a" above, but reduced · actuarially so that only actuarially equivalent benefits shall be payable. c. Early Retirement shall have applicable to it the same survivorship benefit percentages as for Normal Retirement. · 5. Disability. a. Service Incurred. Any Member who receives a service connected injury, disease.or disabili$~., which injury, disease or disability permanently incaPacitateS him, physically or mentally from regular and continUous duty as a Firefighter or Police Officer, shall receive in equal monthly installments -an amount equal to seventy-five per cent (75%) of Average Monthly Earnings in effect at date of disability. The benefit shall be paid until the earlier of death or recovery from dis- ability. b. Non-Service Incurred. Any Member with ten (10) years of Continuous Service who receives .a non-service connected in- jury, disease or disability, and which injury, disease or disability, permanently incapacitates or shall in the future permanently incapacitate him physically or mentally from regular and continuous duty as a Firefighter or Police Offi- cer, shall receive in equal monthly installments an amount equal to two per cent (2%) of his Average Monthly Earnings for each year of Continuous Service, subject in any event to -5- Ord. No. 12-74. a Maximum of fifty per cent (5~/o) of Average Monthly Earnings at the time of disability. The benefit shall be payable until the earlier of death or recovery from disability. c. Determination of Disability. All questions relating to eligibility for initial payment or continuance of disability benefits sh'all be determined by the Board of Trustees, taking into consideration the recommendations of the Medical'Board, and based upon the methods and procedures established by the Board of Trustees. d. Benefit Offsets. The Service Incurred and Non2Service Incurred disability benefits described herein shall be reduced or offset by the regular monthly amounts to which the disabled Member is entitled under Workmen's Compensation and under the primary, that is non-family, benefit provision of Social Security. e. Service and Non-Service Disability shall have applicable to it the same survivorship benefit percentages as for Normal Retirement. 6. Pre-Retirement Death. a. Service Incurred. A death benefit shall be payable on behalf of any Member who dies as a' direct result of an occur- rence arising in the performance of service. These benefits are not to be limiting to other benefits available under State law. The benefits shall be payable as follows: 1. To-the Spouse, until the earlier of death or re- marriage, a monthly benefit equal to fifty per cent (50%) of the Member's Average Monthly Earnings plus, 2. For each unmarried child until he or she shall have reached the age of eighteen (18) years, and for each unmarried child from age eighteen (18) until age twenty- two (22) who is a full time student in a fully accredited high school, college, or university, there shall be paid in equal monthly installments, an amount equal to five per cent (5%) of the Average Monthly Earnings subject to an overall limitation of a total of sixty per cent (6~/o) of Average Monthly Earnings for the Spouse and children combined. The non-student child's pension shall terminate on the earlier of death, marriage or the attainment of age 18; the pension of a child who is a student shall termin- ate on the earlier of death, marriage, or the attainment of age 22. Legally adopted children shall be eligible the same as natural children. Upon remarriage or death of the spouse, the five per cent (5%) child allowance shall be increase to ten per cent (1~/o) for each child, not to exceed a combined total of thirty-five per cent (35%) of the Member's Average Monthly Earnings. The trusteeship an~ disbursements of the pension to any child or children shall be determined by the Board of Trustees. -6- Ord. No. 12-74. b. Non-Service Incurred. If any Member shall die in active service from causes not attributable to active duty or ser- vice, a death benefit shall be payable as follows: 1. With less than one (1) year of Continuous Service - A single sum amount of $2,500.~ 2. ·With one (1) but less than five (5) years of Contin- uous Service - A single, sum amount of $5,000. 3. With five (5) or more years of Continuous Service - (i) A single sum amount of $5,000 plus (ii) To the Spouse until remarriage or death in equal monthly payments, a pension equal to sixty-five per cent (65%) of such Member's accrued pension as of date of death, subject to a minimum of twenty per cent (20%) of Average MonthlY Earnings, plus (iii) To the child or children of such deceased Member, the same benefits as are payable by reason of Service Incurred Death, subject however, to a maximum combined limitation of monthly payments to the Spouse and child- ren of fifty per cent (50%) of Average Monthly Earnings and thirty-five per cent (35%) after remarriage or death of Spouse. 7.. Vestinq. If a Member terminates his employment with the Police or Fire Departments, either voluntarily or by lawful dis- charge, and is not eligible for any other benefits under this System, he shall be entitled to the following: a. With less than ten (10) years of Continuous Service - Refund of Member contributions. With ten (10) or more years of Continuous Service - 1. The pension benefit accrued to his date of termina- tion, payable commencing at his otherwise earliest Normal Retirement Date, provided he does not elect to withdraw his Member contributions qr~ 2. Refund of Member contributions. Any member of this System who, for whatever reason, has his em- ployment with the City as a Police Officer or Firefighter termin- ated, but who remains with or was previously employed by the City in some other capacity so that his total period of employment with the City is ten (10) years or more, shall have all benefits accrued under this System preserved, provided he does not elect to withdraw his Member contributions. Such accrued benefits shall be payable at his otherwise Normal Retirement Date, in accordance with the provisions of this System. For purposes of determining Normal Retirement Dat~ under this Vesting provision, Continuous Service shall include all continuous employment with the City as an Employee as .herein defined as well as the period of time sub- sequent to termination as a Member of this System; provided further, however, that benefits shall not be payable under this System during any period of continued employment by the City. -7- 'Ord. No. 12-74. Section 4. OPTIONAL FORMS OF BE~EFITS. Each member entitled to a Normal, Early, or Disability Re- tirement benefit shall have the right at any time prior tO his actual retirement to elect to have his benefit payable under any one of the Options hereinafter set forth in lieu of the benefits otherwise provided herein, and to revoke any such elections and make a new election at any time prior to actual retirement. The value of optional benefits shall be actuarially equivalent to the value of benefits otherwise payable. The Member shall make such an election by written request to the Board, such request being retained in the Board's files. OPTION 1 - Joint and Last Survivor Option. A retiring Member may elect to receive a retirement benefit during his lifetime and have such retirement benefit (or a designated fraction thereof) continued after his death to and during the lifetime of his Spouse or a relative other than his Spouse. The election of Option 1 shall be null and void if the designated Beneficiary dies before the Member's retirement. OPTION 2 - 10 Years Certain and Life Thereafter. A retiring Member may elect to receive a retirement bene- fit with 120 monthly payments guaranteed. If, after retiring, the Member should die before said 120 monthly payments are made, payments are then continued to his designated Benefi- ciary until 120 payments in all have been made, at which time benefits cease. After expiration of the 120 monthly payments guaranteed, should the retired Member be then alive, payments shall be continued during his remaining lifetime. OPTION 3 - Other. In lieu of the other optional forms enumerated in this Section, retirement benefits may be paid in any form approved by the Board so long as actuarial equivalence with the benefits otherwise payable is maintained. Section 5. CONTRIBUTIONS. 1. Member Contributions. Members of the Retirement System shall make regular contributions to the Trust Fund at a rate equal to Six Per Cent (6%) of their respective annual Earnings. Eligible Employees, as a condition of membership, shall agree in writing upon becoming a Member to make the contribution specified herein. Said Contributions shall be deducted from said Earnings before the same are paid, until the Member has completed thirty (30) years of Continuous. Service at which time payments stop. 2. State Contributions. Any monies received or receivable by reason of laws of the State of Florida, for the express pur- pose of funding and paying for retirement benefits for Police and Firemen of the city shall be deposited in the Trust Fund comprising part of this System. -8- Ord. No. 12-74. 3. City Contributions. So long as this System is in effect, the City shall make an annual contribution to the Trust Fund in an amount equal to the difference in each year as between the total of aggregate Member contributions for the year plus State contributions for the year and the total cost for the year as shown by the most recent actuarial valuation and Report for the System. The total cost for any year shall be defined as the total of ~ormal Cost plus the additional amount sufficient to amortize the Unfunded Accrued Past Ser- vice Liability over a forty (40) year period commencing with the Effective Date of this System. 4. Guaranteed Refund of Member Contributions. All benefits payable under this System are in lieu of a refund of Member contributions. In any event, however, each Member shall be guaranteed the payment of benefits at least equal in total amount to his accumulated contributions. 5. Miscellaneous. a. All monies which have been funded by the Member~ contri- butions and the City's contributions, and monies from all outside sources such as private contributions or those con- tributions made by the State of Florida or any other Firms or Corporations or Companies invested into any basic or secondary pension plan for the retirement of any employee who shall be included in this F~nd, including any interest gathered by these monies, shall be transferred into this Fund to be known as "The Delray Beach Police and Firefighters' Retirement Fund". b. All Beneficiaries and Retired Members presently receiving benefits under Chapters 175 and 185, F.S.A., shall continue to receive said benefits under this system. Section 6. ADMINISTRATION. 1. The general administration and responsibility for the proper operation of the Retirement System and for making effective the provisions of this Ordinance are hereby vested in a Board of Trustees consisting of nine (9) persons as follows: a. The Mayor of the City of Delray Beach. b. Two public members to be appointed by City Council as hereinafter provided; c. The Fire Chief d. The Police Chief e. Two members of the Fire Department to be elected as hereinafter provided; and f. Two members of the Police Department to be elected as hereinafter provided. 2. The term of office of each appointed and ~lected Trustee shall be three (3) years except that the initial terms within each category above shall be for two and three years. The initial terms shall commence on the Effective Date of this System. Initially in each elective category, the Trustee receiving the most votes shall serve a three (3) year term, the second most votes a two (2) year term. The City Council shall deter- mine the term of office of each appointive Trustee. -9- Ord. No. 12-74. 3. The elective Trustees shall .be elected in the following manner, to-wit: By vote of all active members of each of said respective departments who come within' the purview of this Ordinance at meetings to be held at places designated .by the City Manager, of which meetings all qualified members entitled to vote shall be notified in person or by mail ten days in advance of said meeting. The candidate receiving the highest number of votes for each office shall be declared elected and shall take office immediately upon commencement of the term of office for which elected or as soon thereafter as he shall qualify therefor. An election shall be held not more than thirty (30) and not less than ten (10) days prior to the commencement of the terms for which Trustees are to .be elected. The City Manager shall establish the election procedure for the initial election. Thereafter, it shall be the duty of the Board of Trustees. The Board of Trustees shall meet, organize, and elect one of their members as Chairman and one member as Vice Chairman, within ten days after Trustees are elected and duly qualified. 4. If a vacancy occurs in the office of Trustee, the vacancy shall .be filled for the unexpired term in the same manner as the office was previously filled. 5. The Trustees shall serve without compensation, but they may be reimbursed from the Fund for all necessary expenses which they may actually expend through service on the Board. 6. Each Trustee shall, within ten (10) days after his appointment or election, take an oath of office .before the City Clerk of the City, that so far as it develops upon him he will dili- gently and honestly administer the affairs of the said Board, · and that he will not knowingly violate or willingly permit to .be violated any of the provisions of the law applicable to the Retirement System. Such oath shall .be subscribed to by the members making it and certified by the said Clerk and filed in the office of the City Clerk. · 7. Each Trustee shall .be entitled to one vote on the Board. Five affirmative votes shall be necessary for a decision by the Trustees at any meeting of the Board. The Chairman shall have the right to one vote only. 8. Subject to the limitations of this Ordinance, the Board of Trustees shall from time to time establish uniform rules .and regulations for the administration of funds created by this Ordinance and for transactions of its business, includin? provisions for expulsion due to non-attendance of its members which could result in a vacancy. 9. The Board of Trustees shall by majority vote of its members appoint a Secretary who may, but need not be, one of its members. It shall engage such actuarial and other services as shall .be required to transact the business of the Retire- ment System. The compensation of all persons engaged by the Board of Trustees and all other expenses of the Board neces- sary for the operation of the Retirement System shall be paid at such rates and in such amounts as the Board of Trustees shall agree. Funds may be disbursed by the City Finance -10- Ord. No. 12-74. Department or other disbursing agent as determined by the Board, only upon written authorization by the Board of Trustees. 10. Any Trustee who neglects the duties of his office as deter- mined by the Board, may be removed by.seven concurring votes among the Board of Trustees. 11. The duties and responsibilities, of the Board of Trustees shall include, but not necessarily be limited by, the fo 1 lowing: ao To construe the provisions of the System and determine ail questions arising thereunder. b. To determine all questions relating to eligibility and participation. c. To determine and certify amount of all retirement allow- ances or other benefits hereunder. d. To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the System. e. To distribute at regular intervals to employees, infor- mation concerning the System. f. To receive and process all applications for participation and benefits. g. To authorize all payments whatsoever from the Fund and to notify in writing, the disbursing agent of approved benefit payments and other expenditures arising through operation of the System and Fund. h. To have performed actuarial Studies and annual actuarial valuations, and make recommendations regarding any and all changes in the provisions of the System. i. To perform such duties as are specified in this Ordinance. Section 7. FINANCES AND FI/ND MANAGEMENT. Establishment and Operation of Fund. 1. As part of the System there is hereby established the Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the System. 2. The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board of Trustees. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent on authorization from the Board. 3. The Board may hire and appoint such persons, agents or entities (including.corporate fiduciaries) as in its discretion may be required or advisable to enable it to perform custodial and investment duties hereunder; provided further, the Board may -11- Ord. No. 12-74. enter into agency, investment advisory and custodial agree- ments for the purpose of securing investment and custodianship services for the System and Fund. 4. Ail funds and securities of the System may be commingled in the Fund, provided that accurate records are maintained at all times refl%'cting the financial composition of the Fund, in- cluding accurate current accounts and entries as regards the following: a. Current amounts of accumulated contributions of Members on both an individual and aggregate account basis, and Receipts and disbursements, and c. Benefit payments, and d. Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to contributions and de- posits from the City, and e. Ail interest, dividends and gains (or losses) whatsoever, and f. Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund. An annual report shall be made by the CPA firm performing the City's annual audit. 5. The Board of Trustees shall have the followinq investment powers and authority: a. The Board of Trustees shall be vested with full legal title to said Fund; subject however and in any event to the authority and power of the City Council to amend or terminate this Trust; provided that no amendment or Fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this System. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its Agent in the Fund and the Board shall not be required to segregate or invest separately any portion of the Fund. The Board of Trustees may invest and reinvest the assets of the Trust F~und in bonds, stocks or other evidences of indebtedness issued or guaranteed by a corporation organ- ized under the laws of the United States, any state or organized territory of the United States or the District of Columbia, provided: 1. The corporation is listed on any one or more of the recognized national stock exchanges and holds a rating in one of the three highest classifications by a major rating service; -12- Ord. No. 12-74. 2. The corporation has paid cash dividends for a period of seven fiscal years next preceding the date of acquisition. 3. The corporation fulfills either of the following standards: Over the period of the seven fiscal years immediately preceding purchase the corporation must have earned after federal income taxes, an average amount per annum, at least equal to two times the amount of the yearly interest charges upon its bonds, notes or other evidences of indebtedness of equal or greater security outstanding at date of purchase, and earned after federal income taxes, an amount at least equal to two times the amonnt of such interest charges in each of the three fiscal years immediately pre- ceding purchase; or the corporation over the period of seven fiscal years immediately preceding purchase must have earned after'federal income taxes, an average amount per annum at least equal to six per cent (6%) of the par value of its bonds, notes or other evi- dences of indebtedness of equal or greater security outstanding at date of purchase, and earned after federal income taxes, an amount at least equal to six per cent (6%) of the par value of such obligation in each of the three (3) fiscal years immediately preceding purchase. No investment shall be made under this paragraph upon which any interest obligation is in default or which has been in default within the immediately preceding five (5) year period. 4. The Board of Trustees shall not invest more than five per cent (5%) of its assets in the common stock or capital stock of any one issuing company, nor shall the aggregate investment in any one issuing company exceed three per cent (3%) of the outstanding capital stock of that company; nor shall the aggregate of its investments under this section at cost exceed fifty per cent (5~) of the Fund's assets. Co The Board may retain in cash or unproductive of income such amount of the Fund as it may deem advisable, having regard for the cash requirements of the System. d. Neither the Board nor any person or entity shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Fund, except that due to his or its own negligence, willful misconduct or lack of good faith. e. The Board may cause any investment in securities held by it to be registered in or transferred into its name as Trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Fund. f. The Board is emp'.wered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, -13- Ord. No. 12-74. association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar trans- actions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee or with the Trustees or with depositaries designated thereby; to amortize or fail to amortize any part or all of the premium or discount re- sulting from the acquisition or disposition of assets; and generally, to exercise any of the powers of an owner ' with respect to stocks, bonds, or other investments, comprising the Fund which it may deem to be to the best interest of the Fund to exercise. g. The Board shall not be required to make'any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power herein contained. h. Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as Trustee under this Ordinance, can reasonably be taken or performed only after receipt by it from a.Member, the City or any other entity of specific information, certification, direction or instructions, the Board shalI be free of liability in failing to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it. i. Any overpayments or underpayments from the Fund to a Member of Beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board. Overpayments shall be charged against payments next succeeding the correction. Under- payments shall be made up from the Trust Fund. j. The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided for and shall be under no obligation to inquire into the sufficiency of the payments made into the Fund by the City. k. In any application to or proceeding or action in the courts, only the City and the Board shall be necessary parties, and no Member or other person having an interest in the Fund shall be entitled'to any notice of service or process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. 6. Any of the foregoing powers and functions'reposed in the Board may be performed or carried out by the Board through duly authorized Agents, provided that the Board at all times main- tain continuous supervision over the acts of any such Agent; provided further, that legal title to said Fund shall always remain in the Board of Trustees. 7. No change in any of the administrative provisions of the Sy's- tem shall be made without the approval of a majority of the Board of Trustees. -14- Ord. No. 12-74. Section 8. MISCELLANEOUS. ~ 1. Medical Board. The Board of Trustees shall designate a Medical Board to be composed of three (3) physicians who shall arrange for and pass upon all medical examinations required under the provisions of this Ordinance, shall investi- gate all e's'sential statements or certificates made by or on behalf of a Member in connection with an application for disability or retirement and shall report in writing to the Board of Trustees its conclusions and recommendations upon all matters referred to it. The payment for such services shall be determined by the Board of Trustees. 2. Discharqed Members. Members entitled to a pension shall not forfeit the same upon dismissal from the Department, but shall be retired as herein described. 3. Recovery from Disability. In the event a Member who has been retired on a disability benefit regains his health and is able to perform his duties in the Police Department or Fire Depart- ment, the Board shall require the said Member to resume em- ployment with the respective Department and discontinue the pension; provided however, that if such Member shall after re- suming his position pay into the Fund an amount equal to the aggregate contributions plus interest at a rate to be deter- mined by the Board (computed upon his annual Earnings at the time of his disability retirement) he would have been required to make hereunder, as determined by the Board, during the period of his disability retirement had he not been retired, such Member shall receive creditable service for the period of such disability retirement. In any event, such Member shall retain credit for the period of Continuous Service prior to ' the date of disability. 4. Non-Assignability. No benefit provided for herein shall be assignable or subject to garnishment for debt or for other legal process. · 5. Duration of Benefits. Benefits granted to Members shall be paid to them for life and shall not be revoked nor in any way diminished except as provided in this Ordinance and the payments of the Member to this Fund shall cease upon his re- tirement and acceptance of a benefit or thirty (30) years of Continuous Service or Termination. 6. Pension Validity. The Board of Trustees shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraud- ulently, or illegally for any reason. Said Board is empowered to purge the pension rolls of any person heretofore granted a pension under prior or existing .law or hereafter granted under this Ordinance if the same is found to be erroneous, fraudu- lent or illegal for any reason; and to reclassify any pensioner who has heretofore under any prior or existing law, or who shall hereafter under this Ordinance be erroneously, improperly or illegally classified. 7. Incompetents. If any Member or Beneficiary is a minor or is, in the judgment of the Board, otherwise incapable of personally -15- Ord. No. 12-74. receiving and giving a valid receipt for any payment due him under the System, the Board may, unless and until claims shall have been made by a duly appointed guardian or committee of such person, make such payment or any part thereof to such person's SpouSe, children or other person deemed by the Board to have incurred expenses or assumed responsibility for the expenses of such person. Any payment so made shall be a complete discharge of any liability under the System for such payment. 8. Miscellaneous. a. The Board will furnish the Actuary with all data required for n~cessary actuarial computations under the Plan. No payment or any benefit, contribution, or other sum which would constitute a violation of any applicable wage control law shall be made hereunder. c. The benefits for any person who wa~ a member under Chap- ters 175 and 185, F.S.A., immediately prior to the Effective Date of this Ordinance shall not be less than those which he would have received under the Plan prior to the Effective Date based on his rate of Earnings in effect as of the Effective Date. SECTION 3. That upon ~he transfer of the assets and liabilities from the Trustees of the Municipal Police Officers' Retirement Trust Fund and the Trustees of the Municipal Firemen's Pension Trust Fund to the Delray Beach Police and Firefighters' Retirement System, the Board of Trustees of the Municipal Police Officers' Retirement Trust Fund and the Board of Trustees of the Municipal Firemen's Pension Trust FUnd are dissolved. SECTION 4. Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Delray Beach. SECTION 5. Ail Ordinances or parts of Ordinances in conflict herwith be and the same are hereby repealed. SECTION 6. This Ordinance shall take effect immediately upon passage on second and final reading. SECTION 7. That should any section or provision of this Ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part to be declared invalid. PASSED AND ADOPTED on second and final reading on this the 22nd day of April , 1974. ' -C~ty Cl~rk- ~ First Reading March 25, 19~4. Second Reading April 22, /974. -16- Ord. No. 12-74.