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hereby repealed, and the subsequent subsections of Section 35.097 are relettered accordingly.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
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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