Ord 17-02ORDINANCE NO. 17-02
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH, FLORIDA, AMENDING CHAPTER 35, "EMPLOYEE POLICIES
AND BENEFITS", SUBHEADING "RETIREMENT PLAN", OF THE CODE
OF ORDINANCES OF THE CITY OF DELRAY BEACH BY AMENDING
SECTION 35.095, "CONTRIBUTIONS OF PARTICIPANT AND CITY",
SUBSECTION 35.095(A), "PARTICIPANT'S CONTRIBUTION ACCOUNT",
TO PROVIDE FOR CHANGES TO CERTAIN PARTICIPANT
CONTRIBUTIONS; PROVIDING A GENERAL REPEALER CLAUSE, A
SAVING CLAUSE, AND AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Delray Beach desires to clarify the
contributions of NCF&O employees in accordance with the collective bargaining agreement.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading, "Retirement
Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended by amending
Section 35.095, "Contributions of Participant and City", Subsection 35.095(A), "Participants
contribution account" to read as follows:
Section 35.095 CONTRIBUTIONS OF PARTICIPANT AND CITY.
(A) Participant's contribution account.
(1) For the purpose of this section "PARTICIPANT'S CONTRIBUTION
ACCOUNT" will consist of tax deferred participant contributions. Effective the first pay period
beginning on or after October 1, 1989, employee contributions will be picked up by the city and
shall be treated as employer contributions for tax purposes. However, for all purposes of
determining benefits under the plan, they will be considered participant contributions.
(2) Each participant will contribute toward the cost of the plan an amount equal
to three percent 0%) of the first $4,800 of his basic annual compensation, and six percent (6%) of
basic annual compensation in excess of $4,800 until the beginning of the first pay period after
September 25, 1984. Beginning with the first pay period after September 25, 1984, each participant
will contribute toward the cost of the plan an amount equal to six percent (6%) of basic
compensation. Effective as of the first pay period beginning on or after October 1, 1989,
participant contributions will be equal to four and one-half percent (4.5%) of basic compensation on
a mx-deferred basis. Beginning with the first pay period after September 1, 1999, participants shall
Ord. No. 17-02
not be required to contribute to the plan, except those participants described in paragraph (4) of this
Section.
(3) 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 participant, who is
terminated, elects to withdraw participant contributions, the participant will be entitled to the return
of participant contributions with interest, in lieu of all other benefits payable under the plan.
Effective September 1, 1999, if a participant has ten (10) or more years of credited service under the
plan a non-compounded simple interest rate of five (5%) percent per year shall be applied to the
principal balance of the participant's contribution as accrued on December 31 of each year.
Effective September 1, 1999, if a participant has less than ten (10) years of credited service under the
plan a non-compounded simple interest rate of three (3%) percent shall be applied to the principal
balance of the participant's contribution as accrued on December 31 of each year. Participant
contributions cannot be withdrawn while a participant remains in the employ of the city or after the
payment of benefits under the plan has commenced.
(4) Applicability to Bargaining Unit Employees. Participants who are members
of the bargaining unit represented by the National Conference of Firemen & Oilers shall not be
required to contribute to the plan unless a written actuarial valuation indicates that contributions are
required to properly fund the plan in an actuarially sound manner. If an actuary selected by the
Retirement Committee determines that additional contributions are required to properly fund the
plan, the City and bar~g unit members shall equally share such contributions on a percentage of
payroll basis; provided that no member shall be required to contribute more than four and one-half
percent (4.5%) of basic compensation unless the City and union agree to a greater participant
f th f tS co"ccd
Section 2. That should any section or provision of this ordinance or any portion thereof,
any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such
decision shall not affect the validity of the remainder hereof as a whole or part thereof other than
the part declared to be invalid.
Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same
are hereby repealed.
Ord. No. 17-02
Section 5. That this ordinance shall become effective immediately upon its passage on
second and final reading.
PASSED ~D ADOPTED in regular session on second and final reading on this the
day of~ ,2002.
City Clerk
First Reading
Second Readmg~
MAYOR
Ord. No. 17-02
II&AL Nm
DAY ~ PROVWE THAT
I~,GETATIVE W&~I'E MAY NOT gE
~E~', ~ ~ ~
~ ~ 51 71,
BI~ ~ ~ILY, ~
~Y ~NDiNO ~
~, TO ~
~ ~E~ ~P~-
MEMORANDUM
TO:
FROM:
SUBJECT:
MAYOR AND CITY COMMISSIONERS
CITY MANAGER ~
AGENDA ITEM # lo ~ - REGULAR MEETING OF IUNE 4, 2002
ORDINANCE NO. 17-02 {AMENDING CHAPTER $5 "EMPLOYEE
POLICIES AND BENEFITS")
DATE: MAY 31, 2002
This ordinance is before Commission for second reading and public hearing to amend Chapter 35
"Employee Policies and Benefits" of the Code of Ordinances, Section 35.095(A)(4).
Section 35.095(A)(4) currently provides that bargaining unit employees shall not be required to
contribute to the pension plan. The modification will allow the NCF & O employees to contribute to
the pension plan in accordance with the collective bargaining agreement.
At the first reading on May 21, 2002, Commission unanimously approved this ordinance.
Recommend approval of Ordinance No. 17-02 on second and final reading.
S'\Ctty Clerk\chevelle folder\agenda memo. Ord 17.02EmployeePohctes 06 04.02.doc
CITY I)F DELRI:IY BEflgH
CITY ATTORNEY'S OFFICE
200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444
TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755
Writer's Direct L~ne' 561/243-7091
1993 DATE: May 16, 2002
MEMORANDUM
TO:
FROM:
David Harden, City Manager
Brian Shutt, Assistant City Attorney
SUBJECT: Modifications to Chapter 35
In November of 2001 a Collective Bargaining Agreement was executed with the
NCF&O (blue collar union) for the period from October 1, 2001 to September 30,
2004. Under Article 13, Section 4, of the Agreement, no contribution from an
employee shall be required for the pension plan unless an actuarial evaluation
indicates that contributions are required to properly fund the plan. Section 4
further provides that if contributions are required, the City and the bargaining unit
members shall equally share such contributions on a percentage of payroll basis;
provided that no member shall be required to contribute more than 4.5% of basic
compensation unless the City and union agree to a greater participant contribution.
Section 35.095(A)(4) of the Code of Ordinances provides that bargaining unit
employees shall not be required to contribute to the pension plan.
This modification to Section 35.095(A)(4) allows the NCF&O employees to
contribute to the pension plan in accordance with the collective bargaining
agreement.
If this modification to Section 35.095 meets with your approval please place it on
the May 21, 2002 City Commission agenda. Please call if you have any
questions.
Attachment
CC;
Barbara Garito, City Clerk
Joe Safford, Finance Director
Ned Gusty, Human Resources Director
ORDINANCE NO. 17-02
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH, FLORIDA, AMENDING CI-IAPTER 35, "EMPLOYEE POLICIES
AND BENEFITS", SUBHEADING "RETIREMENT PLAN", OF THE CODE
OF ORDINANCES OF THE CITY OF DELRAY BEACH BY AMENDING
SECTION 35.095, "CONTRIBUTIONS OF PARTICIPANT AND CITY",
SUBSECTION 35.095(A), "PARTICIPANT'S CONTRIBUTION ACCOUNT",
TO PROVIDE FOR CHANGES TO CERTAIN PARTICIPANT
CONTRIBUTIONS; PROVIDING A GENERAL REPEAI.RR CLAUSE, A
SAVING CI AUSE, AND AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Delray Beach desires to chrify the
contributions of NCF&O employees in accordance with the collective bargaining agreement.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading, "Retirement
Plan", of the Code of Ordinances of the City of Delray Beach is hereby amended by amending
Section 35.095, "Contributions of Participant and City", Subsection 35.095(A), "Participants
contribution account" to read as follows:
Section 35.095 CONTRIBUTIONS OF PARTICIPANT AND CITY.
(A) Participant's contribution account.
(1) For the purpose of this section "PARTICIPANT'S CONTR/BUIION
ACF__OUNT' will consist of tax deferred participant contributions. Effective the first pay period
beginning on or after October 1, 1989, employee contributions will be picked up by the city and
shall be treated as employer contributions for tax purposes. However, for all purposes of
determining benefits under the plan, they will be considered participant contributions.
(2) Each participant will contribute toward the cost of the plan an amount equal
to three percent (3%) of the first $4,800 of his basic annual compensation, and six percent (6%) of
basic annual compensation in excess of $4,800 until the beginning of the first pay period after
September 25, 1984. Beginning with the first payperiod after September 25, 1984, each participant
will contribute toward the cost of the plan an amount equal to six percent (6%) of basic
compensation. Effective as of the first pay period beginning on or after October 1, 1989,
participant contributions will be equal to four and one-half percent (4.5%) of basic compensation on
a tax-deferred basis. Beginning with the first pay period after September 1, 1999, participants shall
Ord. No. 17-02
not be required to contribute to the plan, except those participants described in paragraph (4) of this
Section.
(3) 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 participant, who is
terminated, elects to withdraw participant contributions, the participant will be entitled to the return
of participant contributions with interest, in lieu of all other benefits payable under the plan.
Effective September 1, 1999, if a participant has ten (10) or more years of credited service under the
plan a non-compounded simple interest rate of five (5%) percent per year shall be applied to the
principal balance of the participant's contribution as accrued on December 31 of each year.
Effective September 1, 1999, if a participant has less than ten (10) years of credited service under the
plan a non-compounded simple interest rate of three (3%) percent shall be applied to the principal
balance of the participant's contribution as accrued on December 31 of each year. Participant
contributions cannot be withdrawn while a participant remains in the employ of the city or after the
payment of benefits under the plan has commenced.
(4) Applicability to Bargaining Unit Employees. Participants who are members
of the bargaining unit represented by the National Conference of Firemen & Oilers shall not be
required to contribute to the plan unless a written actuarial valuation indicates that contributions are
required to properly fund the plan in an acmarially sound manner. If an actuary selected by the
Retirement Committee determines that additional contributions are required to properly fund the
plan, the City and bargaining unit members shall equally share such contributions on a percentage of
payroll basis~ provided that no member shall be required to contribute more than four and one-half
percent (4.5%) of basic compensation un_less the City and union agree to a greater participant
g
.................... 15 "'"' "" "" 1-' ............................. ,..,,.,.,..,.,. ~.o F ....... J '""'"1''''''~'''''''
"'" ..... 0"~ ............ F ........ '-'""'"'"" ..... 2' .................. ~...,..,~.,..~.~ ,.,~.u.,,. ,....,.,.,.,.. ........... 7 ~'
Section 2. That should any section or provision of this ordinance or any portion thereof,
any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such
decision shall not affect the validity of the remainder hereof as a whole or part thereof other than
the part declared to be invalid.
Section 3. That all ordinances or parts of ordinances in conflict herewith be, and the same
are hereby repealed.
Ord. No. 17-02
Section 5. That this ordinance shall become effective immediately upon its passage on
second and final reading.
PASSED AND ADOPTED in regular session on second and final reading on this the
__ day of ,2002.
ATTEST
MAYOR
City Clerk
First Reading.
Second Reading
Ord. No. 17-02