13-74 ORDINANCE NO. 13-74.
AN ORDINANCE OF THE CITY OF DELRAY BEACH,
FLORIDA, ENACTING INTO LAW AN AMENDED PEN-
SION PLAN FOR THE GENERAL EMPLOYEES OF THE
CITY; ~PROVIDING FOR AN INCREASE IN BENE-
FITS; ADDITIONAL EMPLOYEE CONTRIBUTION;
PRESERVING ALL ACCRUED BENEFITS; PROVIDING
A SAVING CLAUSE; REPEALING ALL ORDINANCES
AND RESOLUTIONS IN CONFLICT; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Delray Beach presently provides for
a pension plan and related benefits to its general employees as
established in Resolution No. 1489 as amended by Resolutions No.
73-70 and No. 25-71 which are of major importance as fringe bene-
fits of City employment, and
WHEREAS, City Council, the City Administration and the Re-
tirement Committee of the Retirement Plan for Employees of the
City of Delray Beach upon extensive examination of the present
plan are desirous of updating the plan, and
WHEREAS, the new updated plan preserves all benefits ac-
crued to date under the present retirement plan,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DELRA¥ BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. That Chapter 19 "Pensions" of the Code of Or-
dinances of the City of Delray Beach, as amended, be further
amended to read as follows:
RETIREMENT PLAN FOR EMPLOYEES OF
CITY OF DELRAY BEACH
Table of Contents
CREATION
1.1 Authorization
1.2 Purpose
1.3 Name
1.4 Effective Date
1.5 Introduction
ELIGIBILITY: 'PARTICIPATION: SERVICE
2.1 Eligibility: Participation
2.2 Service
2.3 Leave of Absence
2.4 Credited Service
MISCELLANEOUS PROVISIONS REGARDING THE PLAN
3.1 Participant's-Contribution Account
3.2 Contributions
3.3 Expenses of Administration
3.4 City's Contributions Irrevocable
3.5 Amendment of Plan
3.6 Termination of Plan
BASIS, kMOUNT, AND PAYMENT OF RETIREMENT INCOME
4.1 Basis of Retirement Income
4.2 Normal Retirement and Retirement Income
4.3 Early Retirement and Retirement Income
4.4 Disability Retirement and Retirement Income
4.5 Benefits Other Than on Retirement
4.6 Optional Forms of Retirement Income
4.7 Lump-Sum Payment of Small Retirement Income
4.8 Limitation on Pa~yment of Retirement Income
4.9 Termination of Service for Dishonesty
4.10 Funding of Benefits Through Purchase of Life InsuIance
Contract or Contracts
4.11 Technical Provisions Required by the Internal RevEnue
Code and Treasury Department Regulations
Ord. No. 13-74.
RETIREMENT PLAN FOR EMPLOYEES OF
CITY OF DELRAY BEACH
Table of Contents
(Continued)
MISCELLANEOUS PROVISIONS REGARDING PARTICIPANTS
5.1 Participants to Furnish Required Information
5.2 Beneficiaries
5.3 Contingent Beneficiaries
5.4 Participant's Rights in Trust Fund
5.5 Benefits Not Assignable
5.6 Benefits Payable to Minors and Incompetents
5.7 Conditions of Employment Not Affected by Plan
5.8 Abandonment of Benefits
ADMINISTRATION
6.1 Administration by Retirement Committee
6.2 Officers and Employees of Retirement Committee
6.3 Action by Retirement Committee
6.4 Rules and Regulations of Retirement Committee
6.5 Powers of Retirement Committee
6.6 . Liability of Retirement Committee
6.7 Actuary
6.8 Applicable Law
TRUST FUND A~ID TRUSTEE
7.1 Trustee
7.2 Purpose of Trust Fund
7.3 Benefits Supported Only by Trust Fund
7.4 Trust Fund Applicable Only to Payment of Benefits
7.5 Termination of Plan and Distribution of Trust Fund
Signature Page
-3- Ord. No. 13-74.
ARTICLE 1 - CREATION
Section 1.1 - AUTHORIZATION
An amended and restated retirement plan is hereby authorized to
be adopted and the existing retirement trust together with said plan is
authorized to be administered to provide benefits in accordance with the
provisions of this ordinance. The currently appointed committee is authorized
and directed to take the necessary steps for putting the plan into effect, and
if deemed desirable by the city attorney the submitting of the necessary documents
to obtain approval of the plan by the Internal Revenue Service as a qualified
plan under Sections 401(a) and 501(a) of the Internal Revenue Code, make any
amendments required by the Internal Revenue Service to obtain such approval
and administer the plan as provided herein, provided such amendments do not
increase the cost of the plan to the City.
-4- Ord. No. 13-74.
Section 1.2 - PURPOSE
The purpose of the plan is to provide benefits to regular and
permanent employees of the City, as the term "employee" is defined herein,
and their beneficiaries upon the occurrence of retirement, death, or disability
of the employee or upon his termination of employment as provided herein.
-5- Ord. No. 13-74.
Section 1.3 - NAME
The plan hereby created by the City of Delray Beach (hereinafter
referred to as the "City") shall be known as the RETIREMENT PLAN FOR
EMPLOYEES OF THE CITY OF DELRA¥ BEACH (hereinafter referred to as the "plam").
Ail the affairs and bu$imess of such plan shall be transacted in such name.
-6- ·Ord. No. 13 -74.
Section 1.4 - EFFECTIVE DATE
The plan hereby created was effective as of January 1, 1965 and
subsequently amended and restated shall be again amended and restated effective
as of the date of execution of this ordinance as set forth on the Signature
Page.
-7- Ord. No. 13-74.
Section 1.5 - INTRODUCTION
The plan will be administered by a committee, as more fully
described in Section 6.1 of the plan. In conjunction with the amemdment
and restatement of the plan, the City will Continue the trust fund pursuant
to an agreement which is known as the RETIREMENT TRUST FOR EMPLOYEES OF THE
CITY OF DELRAY BEACH (which trust agreement, as it is orginially written and
as it may hereafter be amended, is hereinafter referred to as the "trust
agreement"), with The Sun First National Bank of Delray Beach as trustee (here-
inafter referred to as the "trustee"), and the funds contributed by the City and
the employees for the purpose of providing the benefits specified in the plan
will be held in the trust fund and administered by the trustee in accordance
with the provisions of the trust agreement.
The trust agreement, and any future amendments thereto, shall form
a part of the plan and any amendments hereto, in the same manner as if all terms
and provisions thereof were copied here in detail; the terms and provisions of
the plan, and any future amendments hereto, shall form a part of said trust
agreement as from time to time it may be amended, in the same manner as if the
same were copied in said trust agreement in detail.
The plan as set forth herein is an amendment, restatement and continu-
ation of the superseded plan as in effect on~fk ~ , 1974, and it is intended
that there be no lapse either in time or effect between this plan and such super-
seded plan.
Under the superseded plan, all benefits provided thereunder were
fun~ed through the medium of a trust fund established and maintained for the
purposes of the superseded plan. Under the plan, all benefits will likewise be
funded through the medium of a trust fund, established and maintained for the
-8- Ord. No. 13-74.
purpose of the plan, for the exclusive benefit of the employees covered under
the plan, and their beneficiaries.
All covered employees will be treated alike under the plan; however,
it is the desire and intention of the City to preserve for the benefit of the
employees covered under the superseded plan all benefits accrued to their credit
thereunder as of~p~l£ ~/~, 1974. The benefits provided under the plan for
such employees, are at least equal to the benefits being provided undDr the super-
seded plan, as in effect on ~P/V/A ~.lz, 1974. Furthermore, no rights under the
Superseded plan as heretofore vested have.been diminished.
The plan is applicable to each employee of the City who is eligible
to participate thereunder upon meeting the applicable eligibility requirements
adopted by the City. Each such employee who retires from service with the City
on or after~f~/L ~-~, 1974 in accordance with the terms of the plan will be
entitled to a retirement benefit determined in accordance with the following
provisions. Each employee whose service is terminated on or after ff~fL %3.,
1974 but prior to his retirement hereunder will be entitled to the benefits
described in Section 4.5.hereof. Any employee of the City who was a participant
in. the superseded plan and who had retired under such plan prior to~f/Vfk %~
1974, and who was no longer in the active full-time service of the City as of
such date shall continue to receive the benefits to which he was entitled under
the superseded plan but shall not receive any additional benefits under the plan.
-9- Ord. No. 13-74.
ARTICLE II
ELIGIBILITY: PARTICIP~ION: SERVICE
Section 2.1 - 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 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 pro-
vided for in Chapters 175 and 185 of the Florida. Statutes or other applicable
city ordinances shall not become participants in the plan. The pronouns "he",
"him", and "his", 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) FF~/L ~3., 1974, for each employee who was a participant in
the superseded plan as of~P~/L ~--, 1974:
(b) ~?~/L ~ ~ , 1974, for each other employee who'was not a participant
in the superseded plan but who has completed one (1) year of
credited service as of such date; provided, however, any person
employed by the City after January 1, 1965, but prior to
~/L ~ , 1974, whose attained age at his date of employment
was 60 years, shall not become a participant in the plan;
-10- Ord. No. 13-74.
(c) The date after~P~/L ~ , 1974 as of which each other
employee has completed one (1) year of credited service;
provided, however, that any person employed by the City
on or after ~P~L.~, 1974 who has attained the age of
55 years as of the date of his employment shall not become
a participant in the plan.
Each such employee who meets the e~igibility requirements as set forth
above shall, as a condition of continued employment, make contributions to the plan
as required by Section 3.1 hereof, and shall become a participant in the plan and
will be subject to all other provisions in the plan beginning on such date.
Any employee who is absent from the active service of the City on
the effective date of the plan by reason of absence'granted by the City, or by
reason of compulsory military service, will become a participant hereunder as of
the date of his return to active employment.
Each participant will be retired un'er the plan and entitled to a
retirement income upon retirement from service with the City by reason of his
age, subject to any minimum service requirements herein. Each such participant
whose employment is terminated because of mental or physical disability in
.accordance with Section 4.4 shall be entitled to disability benefits. Upon
the death of a participant, his beneficiaries will be entitled to death benefits
as prescribed in Section 4.5 hereof. Any participant whose service is terminated
for any reason other than retirement, disability retirement or death will be
entitled to benefits upon termination of service as provided in Section 4.5 hereof.
--11- Ord. No. 13-74.
2-c ~,
Section 2.2 - SERVICE
The term service means that period of continuous, uninterrupted
employment with the City from the employge's or participant's last date of
employment to the earlier of the date of termination of his service and his
normal retirement date or extended retirement date, whichever is applicable,
as herein described. Any absence from the active service of the City,-in-
cluding but not limited to absences by reason of discharge or resignation,
which is not deemed a leave of absence as defined in Section 2.3 hereof, will
be considered a termination of service.
-12- Ord. No. 13-74.
Section 2.3 - LEAVE OF ABSENCE
Absence from the active service of the City. by reason of leave of
absence granted by the City because of illmess or military service, or for any
other reason, wili not terminate an employee's or participant's service provided
he returns to the active employment of the City at or prior to the expiration of
his leave or, if not specified therein, within the period of time which accords
with the City's policy with respect to permitted absences. If the employee or
participant does not return to the active employment of the City at or prior to
the expiration of his leave of absence as above defined, his service will be
considered terminated as of the date on which his leave began.
Absence from the active service of the City because of compulsory
engagement in military service will be considered a leave of absence granted
by the City and will not terminate the service of an employee or a participant
if he returns to the active employment of the City within the period of time
during which he has re-employment rights under any applicable Federal Law or
within 60 days from and after discharge or separation from such compulsory
engagement if no Federal Law is applicable. No provision of this paragraph or
in this plan shall require re-employment of any employee or participant whose
active service with the City was terminated by reason of military service.
Ail participants under similar circumstances shall be treated alike
with regard to this Section.
-13- Ord. No. 13-74.
Section 2.4 - CREDITED SERVICE
The credited service of each employee-or participant will be the
total period of his service as defined in Section 2.2 hereof, computed in
completed months, from his last date of employment until his normal retirement
date or.extended retirement date, whichever is applicable, or, if earlier,'his
dateof actual retirement or termination of employment, except as provided in
Section 2.1 and the following paragraph.
The period of any absence of 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 30 days or less will be included. The first two 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 ~y 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.
-14- Ord. No. 13-74.
3-a
ARTICLE III
MISCELLANEOUS PROVISIONS REGARDING THE PLAN
Section 3.1 - PARTICIPANT'S CONTRIBUTION ACCOUNT
The "participant's contribution account" will consist of mandatory
participant contributions.
Each participant will contribute toward the cost of the plan an
amount equal to 3% of the first $4,800 of his basic annual compensation as defined
in Section 4.1, and 6% of his basic annual compensation in excess of $4,800 until
the beginning of the first pay period after the adoption of this ordinance by the
City Council. Beginning with the first pay period after the adoption of this
ordinance each participant will contribute toward the cost of the plan an amount
equal to 6% of his basic compensation as defined in Section 4.1.
Each participant shall continue to contribute to the plan until the
earliest to occur of the following dates:
(i) Date the participant retires under the plan.
(ii) Date of death of the participant.
(iii) Date of termination of the participant's service with the
City.
(iv) The participant's normal retirement date, unless
extended as provided in Section 4.2 (A).
(v) The attainment of age 65.
Anything in the plan to the contrary notwithstanding, the total
benefits payable under the plan to, or with respect to,.a participant shall
not be less than the benefits that can be provided by the participant's
contributions, and further provided, if a terminated participant (as defined
-15- Ord. No. 13-74.
in Section 4.5) elects to withdraw his contributions prior to his normal
retirement date, he will be entitled only to the return of his contributions in
lieu of all other benefits payable under the plan. Contributions cannot be
withdrawn While a participant remains in the service of the City or after the
payment of benefits under the plan has, commenced.
-16- Ord. No. 13-74.
Section 3.2 - CONTRIBUTIONS
The City intends to make such contributions as are required,
together with contributions of participants, to maintain the trust fund
established for the purposes of the plan on a sound actuarial basis, as
determined by the actuary employed by the City Council im accordance
with Section 6.7 hereof.
-17- Ord. No. 13-74.
Section 3.3 - EXPENSES OF ADMINISTRATION
The City may pay all expenses incurred in the administration of
the plan, including expenses and fees of the trustee, but it shall not be
obligated to do so, and any such expenses and fees not so paid by the City
shall be paid from the trust fund.
-18- Ord. No. 13-74.
Section 3.4 - CITY'S CONTRIBUTIONS IRREVOCABLE
The City shall have no right, title, or interest in the trust fund'
or in any part thereof' and no contributions made thereof shall revert to the
City except such part of the trust fund, if any, which remains therein after
the satisfaction of all liabilities to persons entitled to benefits under the
plan, as described in Section 7.5 hereof with respect to termination of the plan.
-19- Ord. No. 13-74.
Section 3.5 - AMENDMENT OF PLAN
The plan may be amended by the City from time to time in any respect
whatever, by ordinance by the City Council of Delray Beach, specifying such
amendment, subject only to the following limitations:
(A) Under no condition shall such amendment result in
or permit the return or repayment to the City of
any property held or acquired by the trustee here-
under or the proceeds thereof or result in or
permit the distribution.of any such property for
the benefit of anyone other than the participants
and their beneficiaries or joint, pensioners, except
to the extent provided by Section 3.3 and Section
7.5 hereof with respect to expenses of administratiom
and termination of the plan, respectively.
(B) Under no condition shall such amendment change the
duties or responsibilities of the trustee hereunder
without its written consent.
Subject to the foregoing limitations, any amendment may be made
retroactively which, in the judgment of the committee, is necessary or advis-
able provided that such retroactive amendmant does not deprive a participant,
without his consent, of a right to receive benefits hereunder which have
already fully vested and matured in such participant, except.such modification
or amendment as shall be necessary to comply with any laws or regulations of
the United States'or of any state to qualify this as a tax-exempt plan and trust.
-20- Ord. No. 13-74.
37g
Section 3.6 - TERMINATION OF PLAN
The plan may be terminated by the City at any time by delivering
to the trustee in writing an ordinance of the City Council of Delray Beach,
duly certified by an offical of the City, specifying that (a) the plan is being
terminated or (b) contributions thereunder are being permanently discontinued.
The plan shall automatically terminate only upon adjudication by a court of
competent jurisdiction that the City is bankrupt or imsolvent (whether such
proceedings be voluntary or involuntary), upon dissolution of'the City or
upon its liquidation, merger or consolidation without provisions being made
by its successor, if any, for the continuation of the plan.
-21- Ord. No. 13-74.
4-a
ARTICLE IV
BASIS~ AMOUNT~ AND PAYMENT OF RETIREMENT INCOME
Section 4.1 - BASIS OF RETIREMENT INCOME
The monthly retirement income payable on retirement will be based
on the participant's final monthly compensation and on his credited service.
The term "final monthly compensation" means the participant's average
monthly rate of compensation from the City for the 24 successive months out of
the 120 months next preceding the earlier of (i) the date on~hich his service
with the City terminates for any reason, and (ii) his normal retirement date,
or extended retirement date, whichever is applicable, as hereinafter described,
which give the highest average monthly rate of compensation for the participant.
The participant's average monthly rate of compensation will be deter-
mined by dividing the total basic compensation received by him during Such 24
month period by the number of months for which he received compensation from
the City in such 24 month period. The number of months for which he received
compensation from the City will be computed, to the extent he was paid on other
than a monthly basis, by determining the number of pay periods ending within such
24 months for which he received compensation from the City, and converting such
pay periods into months by dividing the number thereof, if weekly, by 4-1/3, if
bi-weekly, by 2-1/6, and if semi-monthly, by 2.
In computing "final monthly compensation" for a participant who has
returned to the active service of the City following a leave of absence granted
by the City during which he did not receive regular compensation from the City,
or following a period of disability retirement or termination of service with a
vested benefit, as described in Sections 4.4(H) and 4.5(A)(3) hereof, respectively,
the period during which he was on leave of absence, or during which he was on
-22- Ord. No. 13-74.
disability retirement, or during which his service was terminated, shall be
ignored, or excluded, in determining the 24 months preceding a subsequent
date of termination of service or his date of early, normal, or extended
retirement.
The term "basic compensation" means the compensation actual-ly paid
to a Participant by the City, exclusive of overtime pay, commissions, bonuses,
expense allowances and all other extraordinary compensation.
-23- Ord. ,No. 13-74.
Section 4.2 - NOR~[ALRETIREMENT AND RETIREMENT INCOME
Normal retirement under the plan is retirement from the service
of the City on, or after, the normal retirement date. In such event, payment
of retirement income will be governed by the following provisions of this
section.
(A) Normal Retirement Date:
The normal retirement date of each participant will be the
first day of the month Coincident with, or next following the date he both
attains the age of 60 and completes 10 years of credited service; provided,
however, that a participant may continue in the service of the City beyond
his normal retirement date with the consent of the City, but no longer than
the the first day of the month coincident with or next following the date
as of which he attains the age of 65. A participant who meets the requirements
of this Section 4.2 (A) shall be 100% vested.
(B) Amount of Retirement Income:
(1) To Participant Who Retires On Normal Retirement Date:
The monthly amount of retirement income payable to a participant who retires
on his normal retirement'date shall be an amount equal to the product of (a)
and (b) where:
(a) is 2%% (.025) of final monthly compensation;'and
(b) is years and completed calendar months or credited
service, maximum of 30 years.
(2) To Participant Who Retires On Extended Retirement Date:
(Retirement Between Age 60 and Age 65 With 10 Years of
Credited Service)
-24- Ord. No. 13-74.
The monthly amount of retirement income payable to
a participant who retires on his extended retirement date shall
be an amount equal to the product of (a) and (b) where:
(a) is 2~o (.025) of final monthly compensation;
and
(b) is years and completed calendar months of
credited service, maximum of 30 such years.
(C) Payment of Retirement Income:
The monthly retirement income payable in the event
of normal retirement will be payable on the first day of each
month. The first payment will be made on the participant's normal
retirement date (or on the first day of the month coincident with,
or next following, his actual retirement, if later), and continued
thereafter during his lifetime; upon his death the full retirement
benefit shall be continued to.his spouse for one (1) year and
s'ixty per cent (60%) of said amount continued thereafter until the
earlier of death or remarriage.
-25- Ord. No. 13-74.
Section 4.3 - EARLY RETIREMENT ANqD RETIREMF~NT INCO~V.~.
Early retirement under the plan is retirement from
the service of the City, with the consent of the City, as of the
first day of any month prior to the participant's normal retirement
date but subsequent to the date as of which he has both attained
the age of 55 years and completed at least 15 years of credited
service or the completion of 20 years of credited service, which-
ever is applicable. In the event of early retirement, payment of
retirement income will be governed by the following provisions of
this section.
(A) Early Retirement Date: The early retirement date
will be the first day of the month coincident with or next follow-
lng the date a participant retires from the service of the City
under the provisions of this section prior to his normal retire-
ment date.
(B) Amount of Retirement Income: The monthly amount
of retirement income payable to a participant who retires prior
to his normal retirement date under the provisions of this section
shall be an amount equal to the product of (a) and (b), where (a)
is an amount equal to his number of years of credited service,
maximu~ of 30 such years, at his early retirement date multiplied.
by 2~/o (.025) of his final monthly compensation., and (b) is the
applicable actuarial reduction factor to take in. to account the
-26- Ord. No. 13-74.
4-e-1,
participant's younger age and the earlier commencement of retire-
ment income payments.
The factor to be used in (b) above will be based
on the participant's attained age, computed to the nearest month,
at early retirement date.
(C} .Payment of Retirement Income: The retirement
income payable in the event of early retirement will be payable
on the first day of each month. The first payment will be made
on the participant's early retirement date and 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 (60~) of said amount continued thereafter until the earlier
of death or remarriage.
-27- Ord. No. 13-74.
Section 4.4 - DISABILITY RETIREMENT AND RETIREMENT INCOME
(A) Definition: A participant may retire from the service of the
· City under the plan if he becomes totally and permanently disabled, as defined
in Paragraph (B) of this Section 4.4, on or after the effective date of this
ordinance but prior to his normal retirement date. Such retirement from the
service of ~the City shall herein be referred to as disability retirement.
(B) Total and Permanent Disability: A participant will be consid-
ered totally disabled if, in the opinion of the'committee, he is wholly pre-
vented from engaging in any occupation for wage or profit; and a participant
will be considered permanently disabled if, in the opinion of the committee,
such participant is likely to remain so disabled continuously and permanently
from a cause other than specified in Paragraph (C) of this Section 4.4.
(C) Nonadmissible Causes of Disability: A participant will not be
entitled to receive any disability retirement income if, in the opinion of the
committee, the disability is a result of:
(1) Excessive and habitual use by the participant
of drugs, intoxicants or narcotics;
(2) Injury or disease sustained by the participant
while willfully and illegally participating in
fights, riots, civil insurrections or while
committing a felony;
(3) Injury or disease sustained by the participant
while serving in any armed forces;
(4) Injury or disease sustained by the participant
diagnosed or discovered subsequent to the date
his employment has terminated;
-28- Ord. No. 13-74'.
(5) Injury or disease sustained by the participant
.. while working for anyone other than the City,
and arising out of such employment; or
(6} Injury or disease sustained by the participant
as a result of an act of war, whether or not
such act arises from a formally declared state
of war.
(D) Proof of Disability: The committee, before approving the pay-
ment of any disability retirement income, shall require satisfactory proof,
~n the form of a certificate from a duly licensed physician selected by the
committee, that the participant has become disabled as provided herein. Every
six months after commencement of disability retirement income, or more frequent-
ly, the committee may similarly require proof of the continued disability of the
participant.
(E) Disability Retirement Income:
(1) Monthly Imcome Payable Prior to Normal Retirement Date
Service Connected Disability:. The benefit payable to a
participant who retires from the service of the City due to total and permanent
disability shall be a monthly retirement income equal to 75% of the participamt's
final monthly compensation at the date of disability less any primary Social
Security and/or workmen's compensation benefits which the participant may re-
ceive.
Non-Service-Connected DisabilitM: The benefit payable to a
participant who retires from the service of the City due to total and permanent
disability, after the completion of 10 years of credited service, shall be an
amount equal to 2% of final monthly compensation at the date of disability,
-29- Ord. No. 13-74.
multiplied by the years and completed calendar months of credited service, sub-
Ject to a maximum monthly retirement income of 50% of final monthly compensation,
less any primary Social Security and/or workmen's compensation benefits which' the
participant may receive.
The minimum monthly income payable shall be an amount equal to the
monthly income payable under the terms of the superseded plan based on the as-
sumption the employee had become disabled on the effective date of this ordinance.
(2) Monthly Income Commencing on Normal Retirement Date
The monthly income in.the amount described in Section 4.4(E)(1)
above, unless previously discontinued in accordance with Section 4.4(H) belgw,
shall cease with the last such payment being due on the first day of the month
~mmediately preceding the disabled participant's normal retirement date. Com-
mencing on the disabled participant's normal retirement date, his monthly disa-
bility retirement income shall be an amount computed as of for normal retirement
in accordance with Section 4.2(B)(1) hereof, based upon the disabled participant's
anticipated number of years of credited service at his normal retirement date (as
defined below) and his projected rate of final monthly compensation at his normal
retirement date (as defined below). The participant's anticipated number of years
of credited service at his normal retirement shall be equal to that number which
he would have accrued at such date in accordance with Section 1.4 hereof, limited
to a maximum of 30 such years as set forth in Section 4.2(B)(1), if his employ-
ment with the City had not been terminated but had continued uninterrupted from
the date of termination of his service due to disability to his normal retirement
date. The participant's projected rate of final monthly compensation at his
normal retirement date shall be determined in accordance with Section 4.1 hereof
-30- Ord.· No. 13-74.
and shall be determined as of the participant's normal retirement date based on
the assumption that the participantTM last regular rate of monthly basic com-
pensation prior to the date of termination of his service due to disability
would have been continued without change to his normal retirement date.
(F) Payment of Disability Retirement Income: The monthly, retirement
income to which a participant is entitled in the event of his disability retire-
ment will be payable-on the first day of each month. The first payment will be
made on the first day of the month coincident with, or next following the later
to'occur of (a) the date as of which hi~ disability has existed for five months
and (b) the date as of which application is made in writing by the participant
for the payment of such retirement income. The last payment will be as follows:
(i) If the participant recovers from the disability prior to his normal
retirement date, the last payment wilt be the payment due next preceding the date
of such recovery.
(ii) If the participant dies prior'to his normal retirement date
without recovering from his disability, 'the iast ~Yment'~Will be the payment
due next-preceding the date of his death.
(iii) If the participant attains his normal retirement date while _still
disabled, the last payment will be the payment due next preceding the disabled
Participant's death.
(G) Recovery from Disability: If the committee finds that a partici-
pant who.is receiving a disability retirement income is, at any time prior to
his normal retirement date, no longer disabled, as provided herein, the Committee
shall direct that the retirement income be discontinued. Recovery from disability
as used herein shall mean the ability of the participant to engage in any occupa-
tion for wage or profit. However, any such participant who recovers from disa-
bility and whose retirement income is discontinued by the committee and who, as
-31- Ord. No. 13-74. ;
of the date of termination of his service due to disability, had completed 20
years of credited service or had both attained the age of 55 years and com-
pleted at least 15 years of credited service or completed at least 10 years of
credited service shall, if he does not re-enter the service of the City, be
entitled to the early retirement income or the vested deferred retirement in-
come as provided in Sections 4.3 and 4.5(A) hereof, respectively, based on his
final monthly compensation and his credited service as of the date of termina-
tion of his service dUe to disability and upon his attained age as of the date
of recovery from disability, but early retirement will be subject to Consent of
the City, and the amount of the retirement income upon early retirement will be
actuarially reduced to take into account the participant's younger age and the
earlier commencement of retirement income payments as provided in section 4.3
hereof.
(H) Re-employment by the City: If the participant recovers from disa-
bility and re-enters the service of the City, his service will be deemed to have
been continuous and he will receive credited service under the plan for that
period during which he was ¢onsidered'totally and permanently disabled as pro-
vided herein.
-32- Ord. No. 13-74.
Section 4.5 - BENEFITS OTHER THAN ON RETIREMENT
(A) Benefit on Termination of Service and on Death After
Termination of Service:
(1) In the event of the termination of a participant's service
prior to his normal retirement date for any reason other than his death, early
retirement with the consent of the City as described in Section 4.3 hereof, or
disability retirement as described in Section 4.4 hereof, after he has completed
10 years of credited service (such participant is hereinafter referred to as a
"terminated participant"), he will be entitled to a monthly retirement income
to commence on his normal retirement date, if he shall then be living, in an
amount which can be provided by the single-sum value of his deferred monthly
retirement income beginning at his normal retirement date which has accrued to
the date of termination of his service, accumulated at interest from the date of
termination of his service to his normal 'retirement date. The amount of such
accrued deferred monthly retirement income shall be computed as for normal re-
tirement under Section 4.2(B)(1), based upon the~terminated participant's number
of years of credited service and final monthly compensation at the date of ter-
mination of his service.
(2) In the event a terminated participant dies prior to the com-
mencement of his retirement income at his normal retirement date (without having
received, in accordance with Section 4.7, the value of the benefit in Section
4.5(A)(1) above), his beneficiary (or beneficiaries) will receive the monthly
retirement income, payable for 10 years certain and life thereafter and beginning
on the date of the participant's death, which can be provided by the single-sum
value of the participant's accrued deferred monthly retiremen~ income as of the
date of termination of the participant's service, accumulated at interest from
-33- . Ord, lqo, 13-74,
the date of termination of the participant's service to the date of his death.
{3) If a participant's service with the City is terminated while
he is entitled to the retirement income described in Section 4.5(A)(1) above and
he subsequently re-enters the service of the City, he will be entitled, upon such
re-entry, to the credited service he had on the date of termination of his service
in lieu of .the benefits to which he was entitled on such date under Section 4.5
(A)(1); provided, however, that the monthly retirement income payable to such par-
ticipant commencing at normal retirement date shall not be less than the amount to
which he was entitled under Section 4.5(A}(1) prior to his re-entry into the serv-
ice of the City. Except as provided in Section 4.4 hereof with respect to disa-
bility retirement, any other participant will, on re-entry into the service of the
City (unless he has been on leave of absence pursuant to the provisions of Section
2.3 hereof), be treated as if he then first entered the service of the City.
{4) The provisions of Section 4.6 hereof relating to optional
forms of retirement income are applicable to the benefits provided under Section
4.5(A) (1) hereof. ~
(5) Except as provided in Section 4.2~with respect to normal re-
tirement, Section 4.4 with respect to disability retirement and Section 4.5 with
respect to death, the participant whose service is terminated prior to the date
as of Which he has completed at least 10 years of credited service shall be en-
titled only to the return of his contributions without interest.
(B) Benefit Payable in the Event of Death on or Prior to Normal
Retirement Date While in Service:
(1) Death Benefit:
Service Connected Death: If the service of a participant is
terminated by reason of his death, on, or prior to, his normal retirement date,
there shall be payable the following:
-34- Ord. No. 13-74.
(A) To the spouse, or other designated beneficiary (or
beneficiaries), as the case may be, a lump-sum pay- ·
ment of $5,000; plus
'(B) To the spouse, until the earlier of his or her death
or remarriage, whichever is applicable, a monthly in-
come ~qual~to 75% of the participant's final monthly
compensation at'the date of death; plus '
(C) For each child until he or she shall have reached the
age of eighteen (18) years and for each child from age
eighteen (18) until age twenty-two (22) who is a full-
time student in an accredited school~ there shall be
payable an additional monthly income equal to 7½% of
the participant's final monthly compensation. The max-
imum monthly income for the spouse and children com-
bined shall not exceed 90% of the participant's final
monthly compensation at the date of death. The non-
student's monthly income shall terminate on the first.
day of the month next preceding the earlier of the
child's death, marriage or the attainment of age 18;
the monthly income of a child who is a fUll-time student
shall terminate on the first-day of the month next pre-
ceding the earlier of. the child's death, marriage or
the attainment of age 22. Legally adopted children shall
be eligible for a monthly income in the same manner as
natural children.
-35- Ord. No. 13-74.
Non-Service Connected Death: If the service of a partici-
pant is terminated by reason of his death, on, or prior to, his normal retire-
ment date, there shall be payable the following:
(A) If the participant has less than one (1) year of cred-
ited service, a lump-sumpayment of $2,500, payable to
the spouse or other designated beneficiar~ (or bene-
ficiaries).
(B) If the participant has one (1) year of credited service
but less than five (5) years of credited service, a
l~mp-sum payment of $5,000, payable to the spouse, or
other designatedbeneficiary (or beneficiaries).
(C) If the participant has five (5) or more years of cred-
ited service, there shall be payable;
(i) A lump-sum payment of $5,000 payable to the spouse
or other designated beneficiary (or beneficiaries);
plus
(ii) To theSpouse, until the earlier of his or her
death or remarriage, whichever is applicable, a
monthly income equal to 65% of the participant's
mormal retirement income which has accrued.to the.
date of death; subject to a minimum of 20% of the
participant's final monthly compensation at the
date of death; plus
(iii) For each child until he or she shall have reached
the age of eighteen (18) years and for each child
from age eighteen (18) until age twenty-two (22)
-36- Ord. No. 13-74.
who is a full-time student in an
accredited school, there shall be pay-
able an additional monthly income of
7~ of the participant's final monthly
compensation. The maximum monthly income
'for the spouse and children combined
shall not exceed 5~ of the participant's
final monthly compensation at the date of
death. The n~n-student's monthly income
shall terminate on the first day of the
month next preceding the earlier of the
child's death, marriage or the attainment
· of age 18; the monthly income of a child
who is a full-time student shall terminate
on the first day of the month next pre-
ceding the earlier of the child's death,
marriage or the attainment of age 22.
Legally adopted children shall be eligible
for a monthly income in the same manner
as natural children.
The minimum'death benefit payable to the designated
beneficiary (or beneficiaries) shall be an amount equal to the
death benefit that would have been payable under the terms of the
superseded plan based on the assumption that th~ employee had died
-37- Ord. No. 13-74.
on the effective date of this ordinance.
The term spouse as used throughout this plan shall
mean the lawful wife or husband of the employee at the time of
the retirement and death of the employee.
-38- Ord. No. 13-74.
Section 4.6 - OPTIONAL FORMS OF RETIRemENT INCOME
In lieu of the amount and form of retirement income payable in the
event of normal retirement, early retirement, 'or termination of service as spec-
ified in Sections 4.2, 4.3 and 4.5(A) hereof,-a participant, or a terminated par-
ticipant as defined in Section 4.5(A) hereof, upon written request to the commit-
tee and submission of evidence of go~d health (except that such evidence will not
be required if such request is made at least one year prior to the date of com-
mencement of retirement income - or by the first day of the sixth month following
the date as of which the formal announcdment of the plan is mare to the employees
of the City, if on the effective date of this ordinance, less than one year
remains prior to the participant's anticipated retirement date) and subject to the
approval of the committee, may elect to receive a retirement income or benefit
co~z~_.encing on the date specified in Sections 4.2, 4.3 or 4.5(A), whichever is
applicable, of equivalent actuarial value payable in accordance with one of the
following options:
Option 1: A retirement income of a modified monthly amount,
payable to the participant for his lifetime,
except that in the event the .participant dies
before he has received retirement benefits for
a period of 10 years, the same monthly benefit
will be paid to the beneficiary designated by
the participant for the balance of the 10-year
period.
· pption 2: A retirement income of a modified monthly amount
payable to the participant during the joint life-
time of the participant and a joint pensioner des-
ignated by him, and following the death of either
-39- ' Ord. No. 13-74.
ii Il
of them, 2/3 of such monthly'amount payable to
the survivor for the lifetime of the survivor.
The joint pensioner designated by a participant
~n accordance with this Option shall be either
(a) the spouse of such participant or (b) any
other person. The monthly income payable under
this Option to the participant and a joint pen-
sioner designated under (b) above, shall not be
less than the monthly income that would be payable
under a payments certain to 'age 85 years and life
thereafter form.
Option 3: Such other amount and form of retirement payments
or benefits as, in the opinion of the retirement
committee, will best meet the circumstances of
the participant; provided, however, that if such
form is other than a joint and survivor form of
retirement payments or benefits, the monthly in-
come payable to a participant under such form
shall not be less than the monthly income that
would be payable under a payments certain to age
85 years and life thereafter form.
The participant, upon electing any option of this section, will desig-
nate the joint pensioner or beneficiary (or beneficiaries) to receive the bene-
fit, if any, payable under the plan in the event of his d~ath and will have the
power to change such designation from time to time, but any such change shall be
-40- Ord. No. 13-74.
deemed a new election and will be subject to approval by the committee. Such
designation will name a joint pensioner or one or more primary beneficiaries'
where applicable. If a participant has elected an option with a joint pensioner
or beneficiary (or beneficiaries) and his retirement income benefits have com-
menced, he may thereafter change his designated joint pensioner or ~eneficiary
(or beneficiaries) but only if the committee consents to such change and, in the
case where the designation to be changed is one involving a joint pensioner, if
the joint pensioner last previously designated by him is alive when he files with
the committee his request for such change. The consent of a participant's joint
pensioner or beneficiary (or beneficiaries) to any such change shall not be re-
quired. The committee may request such evidence of the good health of the joint
pensioner that is being removed as it may require, and the amount of retirement
income payable to the participant upon the designation of a new joint pensioner
shall be actuarially redetermined, taking into account the age and sex of the
former joint pensioner, the new joint pensioner and the participant. Each such
designation will be made in writing on a form prepared by the committee. In the
event that no'designated beneficiary survives the participant, such benefits as
are payable in the event of the death of the participant subsequent to his re-
tirement shall be paid as provided in Section 5.2 hereof.
Retirement income payments will be made under the option elected in
accordance with the provisions of this section and will be subject to the follow-
ing limitations:
(A) If a participant dies prior to his retirement under the plan, or
if a terminated participant dies prior to the commencement of his payments at
his normal retirement date, no benefit will be payable under the option to any
-41- Ord. No. 13-74.
person, but benefits will be payable as provided im Section 4.5 hereof.
(B) If the designated beneficiary (~r beneficiaries) or joint pen~
sioner dies before the participant's retirement under the plan or subsequent to
a terminated participant's'date of termination of service but prior to his normal
retirement da~e, the option elected will be cancelled automatically and a retire-
ment income of the normal form and amount will be payable to the participant upon
his retirement or to the terminated participamt at his normal retirement date as
~f the election had not been made, unless a ~ew election is made in accordance
with the provisions of this section or unless a new beneficiary (or beneficiaries)
or Joint pensioner is designated by the participant prior to his retirement or by
the terminated participant prior to his normal retirement date and within 90 days
after the death of the prior beneficiary (or beneficiaries) or joint pensioner.
(C) If both the participant and the beneficiary (or beneficiaries)
designated by him die after the date that~the participant's retirement income com-
mences under the plan but before the full payment has been effected under any
option providing for payments for a period certain and life thereafter, made pur-
suant to the provisions of Option 1 or Option 3, the committee may, in its discre-
tion, direct that the commuted value of the remaining payments be paid in a lump
sum and in accordance with Section 5.3 hereof.
-42- Ord. No. 13-74'o
Section 4.7 - LUMP-SUM PAYMENT OF SMALL RETIREMENT INCOME
Notwithstanding any provision of the plan to the contrary, if the
monthly retirement income payable to any person entitled to any benefit here-
under is less than $50 as of the date of his retirement or termination of serv-
ice, whichever is applicable, the committee may, in the exercise of its discre-
tion, specify that the actuarial equivalent or. such retirement income be paid
in a lump-sum or in monthly installments for a period certain of not more than
60 months, such actuarial equivalent to be based upon the mortality and interest
assumptions used as a basis for the las~ preceding valuation of the plan.
-43- Ord. No. 13-74.
Section 4.8 - LIMITATION ON PAYMENT OF RETIREMENT INCOME
Notwithstanding the fact that the monthly retirement income is payable
'for life, if any person receiving a monthly retirement income should receive or
become entitled to receive any compensation for personal services currently per-
formed under substantially full-time continuous employment by the City of Delray
Beach at the regular compensation, the monthly'retirement income shall cease
during the period .for which such compensation is payable. Such monthly retire-
ment income shall, however, be resumed again at the same rate when such compensa-
tion thereafter ceases to be payable.
-44- Ord. No. 13-74.
Section 4.9 - TERMINATION OF SERVICE FOR DISHONESTY
If a participant's service is terminated because of dishonest conduct
injurious to the City, or if dishonest conduct injurious to the City committed
by a participant is determined by the City during the lifetime of the partici-
pant but within one year after his service with the City ~s terminated or within
one year after his retirement under the plan, the committee, upon notice from the
City Council of Delray BRach, may terminate such a participant's interest and
benefits under the plan and trust fund.
The dishonest conduct injurious to the City committed by a participant
shall be determined and decided by the committee only after a full investigation
of such alleged dishonest conduct and an opportunity has been given the partici-
pant to appear before the committee to present his case. The decision made by
the con~ittee in such cases shall be final and binding in all participants or
other persons affected by such decision.
-45- Ord. No. 13-74.
Section 4.10 - FUNDING OF BENEFITS THROUGH PURCHASE OF LIFE INSURANCE CONTRACT
OR CONTRACTS
In lieu of paying benefits from the trust fund to a participant or. his
beneficiary, upon direction of the committee, with specific prior authorization
by the City, the trustee shall purchase, with funds in the trust, an individual
retirement income or retirement annuity contract from an insurance ~ompany which,
as far as possible~ provides benefits equal to (or actuarially equivalent to)
those provided in the plan for such participant or beneficiary, whereupon such
contract shall thereafter govern the payment of the amoUnt of benefit, if any,
represented by such contract which is payable under the plan upon the partici-
pant's normal retirement, early retirement, death, or termination of service, and
the liability of the trust fund and of the plan will cease and terminate with
respect to such benefits that are purchased and for which the premiums are duly
paid. Such individual retirement income or retirement annuity contract may be
purchased by the trustee on a single-premium basis or on the basis of annual
premiums payable over a period of years, ~as directed by the committee and as
agreed upon by the insurance company; and such individual retirement income or
retirement annuity contract may be purchased, as directed by the committee, at
any time, on, or after, the participant's date of retirement to provide the bene-
fits due under the plan to the participant or his beneficiary, on,~or after, the
date of such purchase.
With specific prior authorization by the City, the committee may direct
the trustee to enter into a contract or contracts with one or more life insurance
companies for the purchase of retirement annuities, five-year renewable term life
~nsurance, one-year renewable term life insurance or other form of life insurance
-46 Ord. No. 13-74.
or other benefits, on an individual or group basis, in such manner and in such
form as may be deemed appropriate by the committee, as provided for in the plan,
'and further provided the insurance benefit will be no greater than one hundred
(100) times the participant's anticipated monthly retirement income commencing
at normal retirement date. The amount of such anticipated monthly retirement'
income commencing at normal retirement date shall be computed as for normal re-
tirement in Section 4.2(B)(1).
The participant's projected final monthly compensation at normal re-
tirement date shall be determined in accordance with Section 4.1 hereof, and
shall be determined as of the participant's normal retirement date, based on the
assumption that the participant's rate of monthly compensation as of his date of
death had been continued without change to his normal retirement date. Specifi-
cally, such retirement annuities and other benefits as may be provided for in the
plan may be purchased under one or more deposit administration type group annuity
contracts.
No insurance company which may issue any contract upon the application
of the trustee shall be required to take or permit any action contrary to the
provisions of such contract; or be bound to allow a~y benefit or privilege to any
person interested in any contract it has issued which is not provided in such con-
tract; or be deemed to be a party to this plan for any purpose; or be responsible
for the validity of this plan; or be required to look into the terms of this plan;
or question any act of the committee or the trustee hereunder; or be required to
see that any action of the trustee is authorized by this plan. Any such issuing
company shall be fully discharged from any and all liability for any amount paid
to the trustee; or in accordance with its direction; and no issuing company shall
° -47- Ord. No. 13-74'.
be obligated to see to the application of any monies so paid by it. Any such
issuing company shall be fully protected in taking or permitting any action on
the faith of any instrument, executed by the trustee in its name as trustee, and
shall incur no liability for so doing.
Upon termination of employment, a participant may receive ~he retire-
ment income and/or annuity policies which are being purchased for ~im at the date
of his termination, in lieu of any other benefit which he may be entitled to re-
ceive, upon payment to the trustee of the difference between the cash value of the
policies and the amount that the participant is entitled to receive as a benefit
upon termination of his service.
-48- Ord. No. 13-74. ,
Section 4.11 - TECHNICAL PROVISIONS REQUIRED BY THE INTERNAL REVENUE CODE AND TREASURY DEPARTMENT REGULATIONS
(A) Temporary .Limitations on Benefits for the 25 Hi8.hest-Paid
Employees:
(1) Class Restricted: This Section 4.11(A) is applicable only
to those of the 25 highest-paid employees of the City, determined whose monthly
retirement income upon normal retirement date would exceed $125. The term "em-
ployee'' as used in this Section 4.11(A) shall include all persons in the employ-
ment of the City who are participants in the plan and all other persons in the
employment of the City on such date who may later become participants in the plan.
(2) Restrictions: Subject only to the specific exceptions con-
tained in this Section 4.11(A) and notwithstanding any provisions of the plan to
the contrary, the amount of City contributions which may be used to'provide bene-
fits for any participant to whom this Section 4.11(A) is applicable which may be
received prior to the end of the 10-year period that next follows the effective
date of the plan shall not exceed.an amount which is equal'in value to (or which
~s actuarially equivalent to) the larger of the following amounts:
(a) $20,000.00; or.
(b) An amount equal to (i) 20% of the participant's average
regular compensation received from the City for the five
(5) years immediately preceding the date of such deter-
mination or the date of termination of service or the
normal retirement date, respectively, for a participant
whose service is terminated, who has retired prior to his
normal retirement date or who has attained his normal re-
tirement age, whether or not he has retired under the plan,
-49- Ord. No. 13-74.
or (ii) $10,000.00, whichever is smaller multiplied by
the number of years between the date of the establish-
ment of the plan and the earliest of:
the date of termination of the plan;'
(ii) The date the benefit of an emPloyee, who is among
the twenty-five highest paid whose anticipated
annual retirement income exceeds $1,500, becomes
payable; or
(iii) the bate of the failure to meet the fnll current
costs of the plan, in the case of an employee de-
scribed in (ii) above.
Provided, however, if the full current costs of the plan have
not been met at the'end of the 10-year period that next follows the effective date
of the plan, the above restrictions will continue to apply until the full current
costs are funded for the first time.
(3) Exceptions: The foregoing conditions will not restrict the
payment of the full benefits to a beneficiary after the death of a participant
whose benefits are subject to. the provisions Of this.Section 4.11 (A) if, at the
time of such death, the plan is in full effect and the full current costs thereof
have not been met.
The provisions of this Section 4.2(A) will not apply to the
retirement income payable in the normal form or under any optional form which does
not provide a larger monthly income than the income payable for life to any par-
ticipant retiring or receiving benefits during any period in which the plan is in
· full effect and the full current custs thereof have been met.
The limitations of this Section 4~1 (A) will not apply to the
payment of any survivorship income with respect to any deceased participant or
retired participant who dies prior to the termination of the plan and while the
· full current costs thereof have been met.
-50- Ord. No. 13-74.
4-bb
(4) Future Amendment: If the plan is amended so as to.produce a
substantial increase in benefits actually payable, in the event of the subsequent
termination of the plan or the subsequent discontinuance of contributions, the
provisions of this Section 4.11 (A) shall be applied to such increase in benefits
under the plan as amended as though the increase were benefits under a new plan
established on the effective date of such amendment. However, the ~rovisions in
Subsection 4.11(A)(2) that the unrestricted amount of City cOntributions on be-
half of any employee is at least $20,000 is applicable to the aggregate amount
contributed by the City on behalf of such employee from the effective date of the
plan, and for the purpose of determining if the employee's anticipated normal
monthly retirement income produces in excess of $125 per month, both the City con-
tributions on the employee's behalf prior to the effective date of the amendment
of the plan and those expected to be made on his behalf subsequent to the effective
date of the amendment of the plan (based on the employee's rate of compensation on
the effective date of such amendment) are to be taken into account.
(5) Use of Funds After Rights of Other Employees Satisfied: In
the event of-the termination of the plan while the limitations of this Section
4.!l(A) are in effect, that portion of the assets of the trust fund arising from
contributions made by the City with respect to those of its employees to whom the
provisions of this Section 4.11(A) are applicable which is in excess of the limi-
tations set forth in Subsection 4.11(A)(2) above will be apportioned to its other
participants, including its retired participants, in accordance with the provi-
sions of Section 7.5 hereof; provided, however, if there be any asset value after
the full apportionment specified in Subsections 7.5(C)(1), ?.5(C)(2), 7.5(C)(3),
7.5(C)(4), and 7.5(C)(5), apportionment shall be made in a nondiscriminatory
-51- Ord. No. 13-74.
4-cc
manner, prior to the apportionment specified in Section 7.5(C)(6) with respect
to each employee to whom the provisions of this Section 4.11(A) are applicable
~n the amount required to provide that portion of the allocation provided on
his behalf under Section 7.5(C) to which he is not entitled by reason of the
limitations of this Section 4.11 (A), and provided further that, if such remain-
ing asset value be less than the aggregate of such amounts, such a~ounts shall be
proportionately reduced as contemplated by Section 7.5(C) so that the aggregate
of such reduced amounts will be equal 'to such remaining asset value.
(B) Forfeitures:
Forfeitures shall not be used to increase the benefits that any
employee would otherwise receive under the plan at any time prior to the termina-
tion of the plan or the complete discontinuance of contributions to the plan but
shall be anticipated in determining the costs under the plan. L~kewise, any
dividends under any contract issued in accordance with Section 4.10 shall not be
used to increase the benefits that any employee would otherwise receive under the
plan.
(C) Benefits Nonforfeitable if Plan is Terminated or Contributions
Permanently_Discontinued:
Any provisions of the plan to be contrary notwithstanding, in the
event that the plan is terminated or contributions to the trust are completely
discontinued, the rights of each participant in the plan to benefits accrued to
such date of termination or discontinuance, to the extent then funded, shall be
nonforfeitable' and such benefits shall be determined and distributed as provided
in Section 7.5 hereof.
-52- Ord. No. 13'74.
5-a
ARTICLE V
MISCELLANEOUS PROVISIONS REGARDING PARTICIPANTS
Section 5.1 PARTICIPANTS TO FURNISH REQUIRED INFORMATION
Each participant will furnish to the committee such information as
the committee considers necessary or desirable for the purpose of administering
the plan and the provisions of the plan respecting any payments thereunder are
conditional upon the participant's furnishing promptly such true, full and com-
plete information as the committee may request.
Each participant will submit proof of his age (and, in the case of
his election of Option 2 or Option 3 pursuant to the provisions of Section 4.6
hereof, proof of the age of the joint pensioner selected by him).to the committee
at such time as required by the committee. The committee will, if such proof of
age is not submitted as required, use as conclusive evidence thereof, such infor-
mation as is deemed by it to be reliable, regardless of the source of such infor-
mation. Any adjustment required by reason of lack of proof or misstatement of
the age of persons entitled to benefits hereunder, by the participant or other-'
wise, will be in suCh manner as the committee deems equitable.
Any notice or information which, according to the terms of the plan or
the rules of the committee, must be filed with the committee shall be deemed so
filed if addressed and either delivered in person or mailed to the committee, in
care of City of Delray Beach, Delray Beach, Florida.
-53- Ord. No. 13-74.
Section 5.2 - BENEFICIARIES
Each participant may, on a form provided for that purpose, signed and
filed with the committee designate a beneficiary (or beneficiaries) to receive
the benefit, if any, which may be payable, in the event of his death, pursuant
to the provisions of Sections 4.5 or 4.6 hereof,'and each designation may be
revoked by such participant by signing and filing with the committee a new desig-
nation of beneficiary form. Ifa deceased participant failed to name a benefi-
ciary in the manner above prescribed or if the beneficiary (or beneficiaries)
named by a deceased participant predeceases the participant, the death benefit,
if any, which may'be payable under the plan with respect to such deceased partici-
pant may be paid, in the discretion of the committee, either to (a) any one or more
of the persons comprising the group consisting of the participant's spouse, the
participant's descendants, the participant's parents, or the participant's heirs-
at-law, and the committee may pay the entire benefit to any member of such group or
apportion such benefit among any two or more of them in such shares as the commit-
tee, in its sole discretion, shall determine, or (b) the estate of such deceased
participant; provided,'however, that in any of such cases, the committee, in its
sole discretion, may direct that the commuted value of the remaining monthly income
payments be paid in a lump sum. Any payment made to any person pursuant to the
power and discretion conferred upon the committee by the provisions of this Section
5.2 shall operate as a complete discharge of all obligations under the plan with
respect to such deceased participant and shall not be Subject to review by anyone
but shall be final, binding and conclusive on all persons over interested hereunder.
-54- Ord. No. 13-74.
Section 5.3 - CONTINGENT BENEFICIARIES
In the event of the death of a bemeficiary who survives the participant
and who, at the beneficiary's death, is receiving benefits under Sections 4.5, or
4.6 hereof within the 10-year (or other) period with respect to which death bene-
fits are payable under the plan after the participant's death, the same amount of
monthly retirement income which the~benefici~ry was receiving shall be payable for
the remainder of such 10-year (Or other) period to a person designated by the par-
ticipant to receive the remaining death benefits, if any, payable in the event of
such contingency or, if no person was sd named, then to a person designated by the
beneficiary of the deceased participant to receive the remaining death benefits,
if any, payable in the event of such contingency; provided, however, that if no
person so designated be living upon the occurrence of such contingency, then the
remaining death benefits, if~any, shall be payable for the remainder of such ap-
plicable 10-year (or other) period, in the discretion of the committee, either to
(a) all or any one or more of the persons comprising the group consisting of the
participant's spouse, the beneficiary's spouse, the participant's descendants, the
beneficiary's descendants, the participant's parents, the beneficiary's parents,
the participant's heirs-at-law, or the beneficiary's heirs-at-law or (b) the estate
of such deceased beneficiary; provided further, that in amy of such cases the com-
mittee may, in its discretion, direct that the commuted value of the monthly re-
tirement income payments due for the remainder of the applicable 10-year (or other)
period be paid in a lump sum. Any payments made to any person pursuant to the power
and discretion conferred upon the committee by the provisions of this Section 5.3
shall operate as a complete discharge of all obligations under the plan with re-
spect to such deceased beneficiary and shall not be subject to review by anyone but
shall be final, binding and conclusive on all persons ever interested hereunder.
-55- Ord. No. 13-74.
Section 5.4 - PARTICIPANT'S RIGHTS IN TRUST FUND
No participant or other person shall have any interest in or any right'
in, to or under the trust fund, or any part of the assets thereof, except as and
to the extent expressly provided in the plan.
-56- Ord. No. 13-74.
Section 5.5 - BENEFITS NOT ASSIGNABLE
No benefits, rights or accounts shall exist under the plan which are
subject in any manner to voluntary or involuntary anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance or charge and any attempt so to anti-
cipate, alienate, transfer, assign, pledge, encumber or charge the same shall be
void; nor shall any such benefit, right, or account be in any manner liable for
or subject to the debts, contracts, liabilities, engagements, torts or other obli-
gations of the person entitled to such benefit, right or account, except as spe-
cifically provided in the plan; nor shall any benefit, right or account under the
plan constitute an asset in case of the bankruptcy, receivership or divorce of
any person entitled under the plan.
If a participant or any other person entitled under the plan becomes
bankrupt or makes an.assignment for the benefit of creditors or in any way suffers
a lien or judgment against his personal assets, or in any way attempts to antic-
ipate, alienate, sell, assign, pledge, encumber or charge a benefit, right or
account, except as specifically provided in the plan, then such benefit, right or
account in the discretion of the committee may cease and terminate; and in that
event the trustee shall, at the direction of the committe~, hold or apply funds
equal in value to such terminated account in the interest of such participant.
This shall include not only distributions directly to the participant at the com-
mittee's discretion but to or for the benefit of the participant's spouse, child-
ren or other dependents Where the committee determines this to be necessary for
the participant to discharge his duty of support to such persons, the distribution
to be in such manner and in such proportion as the committee shall determine.
(See Section 5.6, Subsections (B), (C), and (D) below for permissable methods of
distribution). '
-57- Ord. No. 13-74.
5-f
Section 5.6 - BENEFITS PAYABLE TO MINORS AND INCOMPETENTS
Whenever any person entitled to payments under this plan shall be a
minor or under other legal disability or in the sole judgment of the committee
shall otherwise be unable to apply such payments to his own best interest and
advantage (as in the case of illness, whether mental or physical, or ~here the
person not under legal disability is unable to preserve his estate for his own
best interest), the committee may, in the exercise of its discretion, direct
all or any portion of such payments to be made in any one or more of the fol-
lowing ways unless claim shall have been made therefor by an existing and duly
appointed guardian, conservator, committee or other duly appointed legal rep-
resentative, in which eVent payment shall be made to such representative:
(A) Directly to such person unless such person shall be a minor or
shall have been legally adjudicated incompetent at the time of the payment;
(B) To the spouse, child, parent or other blood relative to be
expended on behalf of the person entitled or on behalf of those dependents as
to whom the person entitled has ~he duty of support;
(C) To a recognized charity to be expended for the benefit of the
person entitled or for the benefit of those dependents as to whom the person has
the duty of support; or
(D) By the committee itself receiving and expending or directing the
expenditure of the same for the benefit of the person entitled or for the benefit
of those dependents as to whom the person has the duty of Support.
The decision of the'committee will, in each case, be final and binding
upon all persons and, except in the case of (D) above, the committee shall not be
-58- Ord. No. 13-74.
obliged to see to the proper application or expenditure of any payments so made.
Any'payment made pursuant to the power herein conferred upon the committee shall
operate as a complete discharge of the obligations of the trustee and of the com-
mittee.
-59' Ord. No. 13-74.
5-h
Section 5.7 - CONDITIONS OF EMPLOYMENT NOT AFFECTED BY PLAN
The establishment and maintenance of the plan will not be construed as
conferring any legal rights upon any participant to the continuation of his em-
ployment with the City, nor will the plan interfere with the rights of the City
to discipline, lay off or discharge any participant.
-60- Ord. No. 13-74.
5-i
Section 5.8 - ABANDONMENT OF BENEFITS ~
Each participant and other person entitled to benefits hereunder shall
file with the committee from time to time, in writing, his post office address
and each change o£ post office address, and any check representing payment herei
under and any communication addressed to a participant, a former participant, a
beneficiary or a pensioner hereunder at his last address filed with t~e committee
(or, if no such address has been filed, then at his last address as indicated on
the records of the City) shall be binding on such person for all purposes of the
plan, and neither the committee nor the trustee shall be obliged to search for or
ascertain the location of any such person.
If the committee, for any reason, is in doubt as to whether retirement
income payments are being received by the person entitled thereto, it shall, by
registered mail addressed to the person concerned at his address last known to the
committee, notify such person that:
(A) Ail unmailed and future retirement income payments shall be hence-
forth withheld until he provides the committee with evidence of his continued life
and his proper mailing address; and
(B) His right to any retirement income whatsoever ahall, at the option
of the committee, be cancelled forever if, at the expiration of three years from
the date of such mailing, he shall not have provided the committee with evidence
of his continued life and his proper mailing address.
(C) Upon legal determination of death, or other evidence satisfactory to
the committee, a participant's retirement income payable under any provision of the
plan will be paid to his designated beneficiary. If, howeve~~, no designated bene-
ficiary is recorded with the committee, it will be paid first to his spouse, if
living, and if not, to his surviving children in equal shares.
-61- Ord. No. 13-74.
ARTICLE VI
ADMINISTRATION
Section 6.1 - ADMINISTRATION BY RETIREMENT COMMITTE~
The plan will be administered by the Retirement Committee (herein re-
ferred to as the "committee") appointed by the City Council of Delray Beach,
consisting of (a) a chairman and at least ~ne but not more than four additional
members, (b) a single individual or (c) a corporate trustee. Where the committee
consists of one or more individuals, each member may, but need not,' be an official
or employee of the City, and each such member, or the corporate trustee selected
to act as the committee, shall be appointed by the City Council.of Delray Beach
to serve until his (or its) successor shall be appointed in like manner. Where the
committee is a corporate trustee which at the same time is serving as trustee of
the plan, such corporate trustee shall function separately in its two capacities
insofar as the plan and trust are concerned; as the committee it may deal with it-
self as trustee and as trustee it may deal with itself as the committee, and the
records maintained by such corporate trustee for the purposes of the plan and
trust shall show clearly the capacity in which such corporate trustee is acting in
any action taken by it. An individual member of the committee may resign by deliv-
ering his written resignation to the City Council of Delray Beach and to the
other members of the committee. A corporate trustee serving as the committee may
resign from such capacity by delivering its written r~signation to the City Coun-
cil. The City Council of Delray Beach may remove an~individual member of the
committee by so notifying the member and other committee members, if any, in writ-
ing and may remove a corporate trustee serving as the committee by so notifying
such corporate trustee in writing. Where the committee consists of one or more
individuals, vacancies on the committee shall be filled by action of the City
Council'of Delray Beach.
-62- Ord. No. 13-74.
Section 6.2 - OFFICERS AND EMPLOYEES OF RETIREMENT COMMITTEE
The committee may appoint a secretary who may, but need not, be a mem
bet of the committee. The CityCouncil shall employ such agents, clerical and
other services, legal counsel, accountants, investment counselor and actuaries,
as may be required for the purpose of administering the plan.
-63- Ord. No. 13-74.
Section 6.3 - ACTION BY RETIREMENT COMMITTEE
A majority of the members of the committee shall constitute a quorum
for the transaction of business and shall have full power to act hereunder. Any
written memorandum signed by the secretary or any member of the committee who has
been authorized to act on behalf of the committee shall have the same force and
effect as a formal resolution adopted in open meeting. Minutes of all meetings
of the committee and a record of any action taken by the committee shall be kept
in written form and such record shall be kept by the secretary appointed by the
committee. The committee shall give to the trustee, any order, direction, con-
sent, or advice, required under the terms of the trust agreement, and the trustee
.shall be entitled to rely on any instrument delivered to it and signed by the sec-
retary or any authorized member of the committee as evidencing the action of the
committee. A member of the committee may not vote or decide upon any matter
relating solely to himself o~ vote in any case in which his individual right or
claim to any benefit under the plan is particularly involved. If, in any case
in which an individual committee member is so disqualified to act, the remaining
members cannot agree, then the City Council of Delray Beach will'appoint a tem-
porary substitute member to exercise all of the powers of a qualified member con-
cerning the matter in which the disqualified member is not qualified to act.
-64- Ord. No. 13-74.
Section 6.7 - ACTUARY
The actuary will do such technical and advisory work as the City Council°
may request, including analysis of the experience of the plan from time to time~
the preparation of actuarial tables for the making of computations thereunder, and
the submission of an actuarial report as of the anniversary date of the plan each
year to the City and the committee, which report shall contain an actuarial valua-
tion showing the financial condition of the plan, a statement of the~contributions
to be made by the City for the ensuing year, and such other information as may be
required by the committee.
The actuary shall be appointed by the City Council to serve as long as
it is agreeable to the City Council'and the actuary. In computing benefits to
which a participant may be entitled upon early retirement, upon the exercise of
optional forms of retirement income, or upon termination of the plan, and in all
other instances in which actuarial computations are required, the actuary shall
use such assumptions of mortality and interest rates as were employed in the most
recent actuarial valuation of the plan, or, at the option of the committee, such
assumptions as are decided upon jointly by the actuary and the committee as being
reasonable at the 'time such calculations are made. The actuarial assumptions and
the computations made therefrom adopted by the committee shall be conclusive and
binding on all persons whomsoever. Neither the committee nor the City shall be
liable for any mistakes or errors in such computations made in good faith, and the
trustee shall not be liable for any such mistakes or errors in any event.
-68- Ord. No. 13-74.
6-f
Section 6.6 - LIABILITY OF RETIREMENT COMMITTEE
No members of the committee shall be liable for any loss unless result-
ing from his (or its) own fraud or willful misconduct, and no member shall be
personally liable upon, or with respect to, any agreement, act, tramsaction or
omission executed, committed, or suffered to be committed by himself as a member
of the committee or by any other membeK, agent, representative or employee of the
committee. The committee and any individual member of the committee and any agent
thereof shall be fully protected in relying upon the advice of the following pro-
fessional consultants or advisors employed"by the City Council: Any attorney inso-
far as legal matters are concerned, any accountant insofar as accounting matters
are concerned, any investment counselor insofar as investment matters are concerned,
and any actuary insofar as actuarial matters are concerned.
-67- Or_d. No. 13-74.
6-e
Section 6.5 - POWERS OF RETIREMENT COMMITTEE
In order to effectuate the purposes of the plan, the committee shall
have the power to construe the plan, to supply any omissions therein, to recon-
cile and correct any errors or inconsistencies, and to make equitable adjustments
for any mistakes or errors made in the administration of the plan, an~ all such
actions or determinations made by the committee in good faith shall not be subject
to review by anyone.
-66- Ord. No. 13-74.
Section 6.4 - RULES AND REGULATIONS OF RETIREMENT COMMITTEE
The committee shall have the authority to make such rules and regulations
and to take such action as may be necessary to carry out the provisions of the plan
and will, subject to the provisions of the plan, decide any questions arising in
the administration, interpretation and application of the plan, which ~ecisions
shall be conclusive and binding on all parties. The committee may delegate any part
of its authority and duties as it deems expedient.
-65- (~rd. No. 13-74.
Section 6.8 -APPLICABLE LAW
The plan will be construed and enforced according to the laws of the
State of Florida, and all provisions of the plan will be administered according
to the laws of the said State.
-69- Ord. No. 13-74.
7-a
ARTICLE VII
TRUST FUND AND TRUSTEE
Section 7.1 - TRUSTEE
The term "trustee" means the trustee appointed by the City to administer
the trust fund created for the purposes of the plan or such other trustee as the
City may designate from time to time.
-70- Ord. No. 13-74.
Section 7.2 - PURPOSE OF TRUST FUND
A trust fund will be created and maintained for the purpose of the
plan, and the monies thereof will be invested in accordance with the terms of
the agreement and declaration of trust which forms a part of the plan. Ail con-
tributions will be paid into the trust fund, and all benefits under the plan will
be paid from the trust fund.
-71- Ord. No. 13-74.
Section 7.3 - BENEFITS SUPPORTED ONLY BY TRUST FUND
Any person having any claim under the plan will look solely to the
assets of the trust fund for satisfaction. In no event will the City or any
of its officials, employees, members of its City Council or agents be liable
in their individual capacities to any person whomsoever, under the provisions
of the plan or of the trust agreement.
-72- Ord. No. 13-74.
7-d
Section 7.4 - TRUST FUND APPLICABLE ONLY TO PAYMENT OF BENEFITS
The trust fund will be used and applied only in accordance with the
provisions of the plan, to provide the benefits thereof, and no part of the
corpus or income of the trust fund will be used for, or diverted to, purposes
other than for the exclusive benefit of participants and other persons there-
under entitled to benefits, except to the extent provided in Section 3.3 and
SeCtion 7.5 hereof with respect to expenses of administration and termination
of the plan, respectively.
-73- Ord. No. 13-74.
Section 7.5 - TERMINATION OF PLAN AND DISTRIBUTION OF TRUST FUND
Upon termination of the plan for any reason, or upon written notice
to the trustee that contributions thereunder are being permanently discontinued,
or upon discontinuation of contributions for other than a temporary period, the '
trust fund shall be apportioned and distributed in accordance with the following
procedure:
(A) The committee, under the direction of the City Council, shall~de-
termine the date of distribution and the~asset value to be distributed, after
staking into account the expenses of such distribution.
(B) The committee, under the direction of the City Council,.shall de-.
termine the method of distribution of the asset value, that is, whether distribu-
tion shall.be by payment in cash, the maintenance of another or substituted trust
fund, by the purchase of insured annuities, or in kind based on the then market
value, for each class of participants and other persons entitled to benefits under
the plan, as specified in (C) below.
(C) The committee, under the direction of the City Council, shall, ap-_-
portion the asset value as of the date of termination in the manner set forth.
below, on the basis that the amount required to provide 'any given retirement income
shall mean the actuarialiy computed single-sum value of such retirement income, ex-
cept that if the method of distribution determined under (B) above involves the
purchase of an insured annuity, the amount required to provide the given retirement
income shall mean the single premium payable for such annuity:
(1) An amount equal to each participant's contribution less the aggre-
gate of any retirement income payments made with respect to' such
-74- Ord. No. 13-74.
participant will be determined, and such amount will be apportioned
from the asset value. Such asset value, if insufficient to provide
such amount in full, will be apportioned among such participants in
proportion to the amounts determined with respect to them.
(2) Apportionment will next be made with respect to each retired par-
ticipant receiving a retirement income hereunder on such date, each
person receiving a retirement income on such date on account of a
deceased participant or a retired (but since deceased) participant,
and each participant who has, by such date, become eligible for
normal retirement, but has not yet retired, in the'amount required
to provide such retirement income; provided that, if the asset value
be less than the aggregate of such amounts, such amounts will be
proportionately reduced so that the aggregate of such reduced amounts
will be equal to the asset value.
(3) If there be any asset value remaining after the apportionment under
(1) and (2) above, apportionment shall next be made with respect to
each participant in the service.of the City on such date who has
both attained the age of 55 years and completed at least 15 years of
credited ~ervice, or has completed 20 years of credited service,
whichever is applicable, and each former participant who as of his
date of termination of service had both attained the age of 55 years
and completed at least 15 years of credited service or completed 20
years of credited service and who is entitled to a benefit under the
provisions of Section 4.5 (A) hereof and who has not by such date
-75- Ord. No. 13-74.
reached his normal retirement date, in the amount required to pro-
vide the actuarial equivalent of the retirement income accrued to
the date of termination; provided that, if such remaining asset
value be less than the aggregate of the amounts thus apportioned
hereunder, such latter amounts shall be proportionately reduced
so that the aggregate of such reduced amounts will be equal to the
remaining asset value.
If there by any asset value remaining after the apportionments under
{1), (2) and (3) above, apportionment shall next be made with re-
spect to each participant in the service of the City on such date
who is not entitled to an apportionment under (1), (2) or (3) above,
but who has completed at least 10 years of credited service, in the
amount required to provide the actuarially equivalent single-sum
value of his v~sted deferred retirement income accrued to the date
of termination of the plan - i.e., the actuarially equivalent sin-
gle-sum value of the retirement income which he would have been en-
titled to receive had his service been terminated on the date of
termination of the plan, and to each former participant who is not
entitled to an apportionment under (3) above, then entitled to a
benefit under the provisions of Section 4.5(A) hereof who has not~
by such date, reached his normal retirement date, in the amount re-
quired to provide the actuarially equivalent single-sum value of
the accrued deferred retirement income to which he is entitled un-
der Section 4.5(A) hereof; provided, however, that if such remaining
asset value be less than the aggregate of the amounts apportioned
-76- Ord. No. 13-74.
hereunder, such latter amounts shall be Proportionately reduced
so that the aggregate of such reduced amounts will be equal to
such remaining asset value.
(5) If there be any asset value remaining after the apportionments
under (1), (2), (3) and (4) above, apportionment shall next be
made with respect to each participant in the service of the City
on such date who is not entitled to an apportionment under
(2) and (3) above, in the amount required to provide the actu-
arially equivalent single-sum Value of his non-vested deferred
retirement income accrued to the date of termination of the plan
(i.e., the single-sum value of his deferred retirement income ac-
crued to the date of termination of the plan less any apportion-
ment under (4) above); provided that, if such remaining asset
value be less th~n the aggregate of the amounts apportioned here-
under, such latter amounts shall be proportionately reduced so
that the aggregate of such reduced values will be equal to such
remaining asset value.
(6) In the event that there be asset value remaining after the full
apportionments specified in (1), (2), (3), (4) and (5) above, and
under the provisions of Section 4.11(A), subsection (5), such ex-
cess shall be returned to the City.
-77- Ord. No. 13-74.
(D) The order of priorities for, and the amounts of, distribution set
forth in (C) above shall be subject (i) to the limitations provided by Section
4.11 of the plan and (ii) to such distributions not being determined to'be other-
wise discriminatory by the Internal Revenue Service. In the event either the
limitations under Section 4.11 becomes effective or the Internal Revenue Service
rules that the distributions are otherwise discriminatory, adjustment may be made
in the said priorities and amounts of distribution as may be required to satisfy
the requirements of Section 4.11 or of the Internal R~venue Service, as the case
may be.
(E) As soon as.practicable after receipt by the City of a determina-
tion letter from the Internal Revenue Service stating that the method of distri-
'bution in this Section 7.5 will not adversely affect the continued qualified
status of the plan, the committee shall direct the trustee to distribute, in ac-
cordance with the manner of distribution determined under (B) above, the amounts
apportioned under (C) or (D), as the case may be, above.
-78- Ord. No. 13-74.
SECTION 2. That the present retirement committee of the
Retirement Plan for Employees of the City of Delray Beach shall
continue to serve in such capacity until changed by the City
Council.
SECTION 3. That the Sun First National Bank of Delray
Beach shall continue to act as Trustees pursuant to the agree-
ment heretofore entered into between the City of Delray Beach
as settlor and employer and the First National Bank of Delray
Beach (now known as Sun First National Bank of Delray Beach) as
Trustee dated November 13, 1964.
SECTION 4. Specific authority is hereby granted to codi-
fy and incorporate this ordinance in the existing code of the
city.
SECTION 5. All ordinances or parts of ordinances in con-
flict herewith 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 in-
valid, such decision shall not affect the validity of the remain-
der hereof as a whole or part thereof other than the part to be
declared invalid.
PASSED AND ADOPTED in regular session on the second and
final reading on this the 22nd day of April , 1974.
A TTE$ m..-
City Clerk
First Reading ~/~ ~,//_
Second Reading April 22, 1974.
-79-
Ord. No. 13-74.