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Re-Employment After Retirement (PER-22, Rev.1)CITY OF DELRAY BEACH A D M IN IS TR ATIVE POLICIES AND PROCEDURES DEPARTMENT: SUBJECT: REVISION: APPROVED BY: PURPOSE Human Resources Reemployment After Retirement POLICY NUMBER:PER-22 SUPERSEDES:-0- EFFECTIVE DATE:July 10,2023 Terrence Moore,City Manager The purpose of this policy is to establish guidelines for re-employment of retirees from the City of Delray Beach per the General Employees Retirement Plan section 35.090 (E)and Police and Fire Pension Plan 2015 Ordinance. DEFINITIONS 1.General Employees -All City employees other than those who are part of the police or fire pension plan. 2.Pre-arrangement -The City and the employee cannot have any type of agreement in place that assures the retiree a position prior to their retirement.In the case of this policy,the retiree must follow the steps required of all applicants in order to be rehired into a full or part-time position,i.e. submit application for a posted position,complete the interview,sign an offer letter,complete pre- employment background screening,physical with tobacco screening and applicable drug tests. POLICY A.General Employee Pension Plan Requirements Section 35.090 (E)Re-employment 1.An employee who retires and begins to receive early or normal retirement benefits under the General Employees Retirement Plan,and who is subsequently re-employed by the City in a position eligible for participation (full-time positions)in the same pension plan,shall elect one of the following options: a)The employee may elect to continue receiving retirement income but not contribute to or accrue additional benefits under the plan during the period of re-employment;or b)Eligible employees may elect to have retirement income payments suspended during the period of re-employment and rejoin the plan as a contributing participant.If this option is elected,the participant's prior credited service will be added to the credited service earned during the period of re-employment,and upon subsequent retirement the participant's retirement income will be adjusted based on total credited service and final monthly compensation as of the date of subsequent retirement (ignoring the prior period of retirement).In no event will the participant's adjusted monthly retirement income be less Re-employment After Retirement PER-22 Rev.1 Page 2 of 2 than that received during the prior period of retirement.Employees who retired with thirty (30)years of service are NOT eligible for this option per Section 35.091 of the plan. 2.An employee who retires may not be re-employed into a full-time or part-time position by the City within 180 days of retirement,and there must not have been any pre- arrangement for the retiree to be rehired prior to retirement. B.Police and Fire Employees Retirement Plans -Re-employment Requirements per 2015 Ordinance 1.An employee who retires and begins to receive early or normal retirement benefits under the Police or Fire Employees Retirement Plans,and who is subsequently re-employed by the City in a position eligible for participation (full-time positions)in the General Employees Retirement Plan,shall be permitted to continue to receive their Police or Fire pension plan benefits while re-employed,and begin participating in the General Employees Retirement Plan. 2.An employee who retires may not be re-employed into a full-time or part-time position by the City within 180 days of retirement,and there must not have been any pre-arrangement for the retiree to be rehired prior to retirement. PROCEDURE A.Prior to permitting a retiree to be re-employed by the City,the department head desiring to re-employ the retiree must obtain approval from the Human Resources Department to: 1.Assess whether the retiree is eligible for re-employment;and 2.If the retiree is eligible for re-employment,under PER -22.1,the Human Resources Department will advise the retiree of their obligation to elect one of the two options listed in PER -22.1 (options 1 and 2)and include the retiree's selected option as a stipulation in their offer letter. B.If the retiree signs and accepts the offer letter,the Human Resources Department will notify the City Pension Administrator via email so that the Pension Administrator may process the retiree's elected option accordingly.