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41-95 ORDINANCE NO. 41-95 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35, "EMPLOYEE POLICIES AND BENEFITS", "RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING SUBSECTION (C), "CREDITED SERVICE", OF SECTION 35.089, "DEFINITIONS"; REPEALING SUBSECTION (K), "COMMENCEMENT OF BENEFITS", OF SECTION 35.097, "RETIREMENT INCOME; BASIS, AMOUNT AND PAYMENT"; AMENDING SECTION 35.098, "SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM BENEFTrS"; AMENDING SECTION 35.105, "ADMINISTRATION BY RETIREMENT COMMI~EE"; CLARIFYING THE INVESTMENT AUTHORITY OF THE RETIREMENT COMMITTEE; AMENDING SECTION 35.106, "TRUST FUND AND TRUSTEE"; PROVIDING A SAVINGS CLAUSE; PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Subsection (C), "Credited Service", of Section 35.089, "Definitions", of the Code of Ordinances of the City of Delray Beach, Florida, is hereby amended to read as follows: Section 35.089 DEFINITIONS. (C) "Credited service" means the period of continuous City employmem from the employee's most recent date of hire to the date of termination of City employment up to a maximum of thirty (30) years, except as otherwise provided in Sec. 35.093 of this subchapter, and the Uniformed Services Emplo_vment and Reemployment Rights Act of 1994. as amended from time to time. Credited service shall include all periods of paid leave, and unpaid leave up to and including thirty (30) days in any calendar year. Unpaid leave in excess of thirty (30) days in any calendar year shall be excluded from credited service, except as otherwise required by the Uniformed Services Employment and Reemployment Rights Act of 1994. as amended from time to time .. ~ That Subsection (K), "Commencemem of Benefits", of Section 35.097, "Retirement Income; Basis, Amount and Payment", of the Code of Ordinances of the City of Delray Beach, Florida, is hereby repealed, and the subsequent subsections of Section 35.097 are relettered accordingly. Section 3. That Section 35.098, "Supplemental Retirement Income and Minimum Benefits," is amended to read as follows: Section 35.098 SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM BENEFrrS. Effective as of January 1, 1993, all ~ ~ or beneficiaries of who were receiving benefits under the plan prior to January 1, 1991, shall have the monthly amount of retirement income increased by five percent (5 %) over the gross amount they were receiving in December of 1990. Provided, however, that all employees participants with ten (10) or more years of credited service, and designated beneficiaries of such participants who receive plan benefits that are based on or derived from a the participant's normal retirement income, regardless of the participant's retirement date, shall receive benefits based on a minimum monthly normal retirement income amount of at least $400. ~ That Section 35.105, "Administration By Retirement Committee, of the Code of Ordinances of the City of Delray Beach, Florida, is hereby amended to read as follows: Section 35.105 ADMINISTRATION BY RETIREMENT COMMITTEE. (A) (1) The plan will be administered by the Retirement Committee (herein referred to as the Committee) appointed by the City Commission, consisting of a chairperson and four additional members. Each member may, but need not, be an official or employee of the city, and each member shall be appointed by the City Commission to serve until a successor is appointed in like manner. (2) An individual member of the Committee may resign by delivering his written resignation to the City Commission and to the other members of the Committee. The City Commission may remove an individual member of the Committee by so notifying the member and other Committee members, if any, in writing. Vacancies on the Committee shall be filled by City Commission appointment. (B) The Committee may appoint a secretary who may, but need not, be a member of the Committee. The city shall employ or retain any agents, clerical and other services, legal counsel, accountants, investment counselors, and actuaries, as may be required to administer the plan. 2 ORD NO. 41-95 i: (1) 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. (2) Committee meetings shall be noticed and open to the public. Meetings shall be conducted in accordance with roles adopted by the Committee, or by Roberts Rules of Order if the Committee has not adopted roles. 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. Official Committee action shall be by majority vote of a quorum of the Committee. (3) The Committee may invest and reinvest the assets of the retirement mast fund in any investment in which assets of the Florida Retirement System may be invested pursuant t0 Section 215.47. Florida Statutes. as that statute may be mended from time to time. or in accordance with written investment policies adopted by the Committee and approved by the City. Commission. The committee may retain such professional consultants, advisors and investment managers as it deems advisable to carry, out its responsibilities under this section.sF~!! ~:"~ *~ *~'~ "-'~'~ ....... .'~-~ ~'"-~': ....~ ~' "~ ~'~-': ...... :-~'~ "~- *~-~' * .... ~ (4) A member of the Committee may not vote or decide upon any matter relating solely to that member, or vote in any case in which the member's individual right or claim to any benefit under the plan is involved. If a Committee member is required to abstain and the remaining members of the Committee are unable to decide the matter, the City Commission may appoint a temporary substitute member to the Committee. (D) The Committee shall have the authority to make those rules and regulations and to take any 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 decisions shall be conclusive and binding on all parties. The Committee may delegate administrative, clerical, professional and other plan-related functions as it deems necessary and prudent. (E) 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 reconcile and correct any errors or inconsistencies, and to make equitable adjustments for any mistakes or errors made in the administration of the plan. 3 ORD NO. 41-95 (F) No member of the Committee shall be liable for any loss unless resulting from that member's fraud or willful misconduct, and no member shall be personally liable upon or with respect to, any agreement, act, transaction, or omission made in good faith as a member of the Committee. No member of the Committee shall be liable for the actions of other members, or the actions of any agent, representative, or employee of the Committee. The Committee and any individual member of the Committee and any agent thereof shall be entitled to rely on the advice of professional consultants and advisors employed or retained by the city, including but not limited to attorneys, accountants, investment advisors and actuaries. (G) (1) The actuary will do any technical and advisory work as the city 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 valuation showing the financial condition of the plan, a statement of the contributions to be made by the city for the ensuing year, and any other informatiOn as may be required by the Committee. (2) The actuary shall be appointed by the city to serve as long as it is agreeable to the city 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 those 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, those assumptions as are decided upon jointly by the actuary and the Committee as being reasonable at the time the calculations are made. The actuarial assumptions and the computations made therefrom adopted by the Committee shall be conclusive and binding on all persons. The Committee, city and trustee shall not be liable for any mistakes or errors in any computations made in good faith. (H) The plan will be construed, enforced and administered according to the laws of the State of Florida. ~ That Section 35.106, "Trust Fund and Trustee", is hereby amended to read as follows: Section 35.106 TRUST FUND P_NL2 TP. USTEE. iI 4 ORO NO. 41-95 ,~-~°x A Trust Fund will be created and maintained for the purpose of the plan, and Trust Fund assets shall will be invested in accordance with investment policies adopted by the Committee and approved by the City Commission "-... '~"~.... *"'~'...o~.~, ..... ..._:'~' ,~.._ r,~_-:,.~,................. ~ ......... ..vt'.".~-': All contributions will be paid into the Trust Fund, and all plan benefits under the plan will be paid from the 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, Commissioners, or agents be liable in their individual capacities to any person whomsoever, under the provisions of the plan or of the trust agreement. (.CD) 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 entitled to plan benefits, except to the extent provided in Sec. 35.096 and Sec. 35.109 of this subchapter with respect to expenses of administration and termination of the plan, respectively. ~ That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid such decision shall not affect the validity of the remainder hereof as a whole part thereof other than the part declared to be invalid. Section 7. That this ordinance shall take effect ten (10) days after second and final reading. PASSED AND ADOPTED in regular session on second and final reading on this the Sth day of August , 1995. City'Clerk First Reading : July 18, 1995 Second ReadLng:. August 8, 1995 5 ORD. NO. 41-95 MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER~ SUBJECT: AGENDA ITEM $ /0 D - MEETING OF AUGUST,~. 1995 SECOND READING AND PUBLIC HEARING FOR ORDINANCE NO. 41-95 (AMENDMENTS TO GENERAL EMPLOYEES PENSION PLAN) DATE: JULY 26, 1995 This is second reading and public hearing for Ordinance No. 41-95 which amends Chapter 35 of the City Code concerning the General Employees Pension Plan. The modifications are outlined in the attached memorandum from the City Attorney. At first reading on July 18, 1995, the Commission passed the ordinance by unanimous vote. Recommend approval of Ordinance No. 41-95 on second and final reading. ref:agmemol5 RECEIVED [lTV I]F DELHI:IV BEI:IgH """ CITY M. ~,~ .... ~. ? n~FiC,£ Writer's Dffcct LAc: (40'7) 243-'709] Clff/ffTORNE¥'$ OFFICE ~00 ~w .~ ^v~. ~^~ ~^c., ~o~,~^ ~. FACSIMILE 407/278-4755 DELRAY BEACH  MEMORANDUM Ali.America City 1993 TO: City Commission FROM: Susan A. Ruby, City Attorney SUBJECT: Ordinance - Amendment to the General Employees Pension Plan The attached ordinance modifies the General Employee Pension Plan in the following respects: 1. The term "credited service" is modified to include an exception for the Uniform Services Employment and Reemployment Act of 1994, to comply with Federal Law. 2. Subsection (k) of Section 35.097 regarding commencement of benefits which was later determined not to be required by Federal Law is repealed. 3. The ordinance clarifies that the minimum monthly normal retirement of $400 a month applies to participants with ten or more years of credited service. 4. Section 35.105(c)(3) is modified to clarify the General Employees Pension Committee's authority to invest funds. 5. Deletes outdated reference to "Trustees". As with most City pension plans, the investments will be handled based on the recommendations of professional investment advisors, rather than a corporate trustee. This change also provides that the funds will be invested according to policies adopted by the Committee and approved by the City Commission. By copy of this memorandum to David Harden, City Manager, our office requests that be placed on the City Commission July 18, 1995 agenda for first reading. cc: David Harden, City Manager Alison MacGregor Harty, City Clerk Joe Safford, Director of Finance Pdnted on Recycled Paper ~ [ WESt BROWA~D ~I~OI~ESS~ONAL ~]._ .' ............. ,~ , O'CO~OR AND LING ~c. JUN 2 6 1995 .............. NO~Th /CENtraL FLOriDA O~FICE 101 SOUTHEAST SECONO ~LACE. SUITE ~0I GA:NESV;LLE. FLO~iOA 3~60I FAX {904} 338 - i 5 I 3 June 21, 1995 James W. Linn, Esq. Lewis, Longman & Walker, P.A. Attorneys-At-Law 215 South Monroe Street, Suite 702 Tallahassee, Florida 32302 Re: Delray Beach General Employees Retirement Plan Dear Jim: We have reviewed the change in the proposed ordinance attached to your letter of June 15th. In our opinion, this change will have negligible actuarial impact on the Plan. Please contact us if there are any questions. Sincerely yours, J. Stephen Palmquist (-) ' JSP/or KRUSE, O'CONNOR AND LING ~c. FORT L^~OERO^~E 73~0 GRIFFIN ROAD, S~ITE ~00 FORT LAUDERDALE, FLORIDA 3331a NORTH /CENTRAL FLORIDA OFFICE GA~NESVILLE, ~LO~DA 3~01 -~ - TEL. (904) 37= -3800 HAY a0 1995 JLJ[.,..J ~2~'[.~ U L.~L~.- .¢.~Y TO FORT LAUD[RDAL[ May 22, 1995 James W. Linn, Esq. Lewis, Longman & Walker, P.A. Attorneys-At-Law 215 South Monroe Street, Suite 702 Tallahassee, Florida 32302 Re: Delray Beach General Employees Retirement Plan Dear Jim: We have reviewed the proposed amendment which would make several technical changes to the Plan. In our opinion, these changes would have no actuarial impact on the Plan. Please contact us if there are any questions. Sincerely yours, JSP/or