Ord 20-99 ORDINANCE NO. 20-99
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35,
"EMPLOYEES POLICIES AND BENEFITS", SUBHEADING
"RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF THE
CITY OF DELRAY BEACH BY AMENDING SECTION 35.098,
"SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM
BENEFITS", TO PROVIDE CERTAIN ELIGIBLE MEMBERS AND
THEIR BENEFICIARIES WHO RETIRED UNDER THE GENERAL
EMPLOYEES PENSION PLAN WITH ENHANCED BENEFITS,
INCLUDING AN INCREASED MINIMUM BENEFIT FOR
PARTICIPANTS WITH TEN OR MORE YEARS OF CREDITED
SERVICE; PROVIDING A GENERAL REPEALER CLAUSE, A
SAVING CLAUSE, AND AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Delray Beach desires to enhance certain
retirement benefits for certain retirees covered under the General Employee's Pension Plan.
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
35.098, "Supplemental Retirement Income and Minimum Benefits", to read as follows:
Section 35.098. SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM
BENEFITS
Effective as of January l, 1993, all participants or beneficiaries of participants who
were receiving benefits under the plan prior to January l, 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. In addition, effective August l, 1999, all participations or beneficiaries of
participants who were receiving benefits under the plan prior to September 30, 1993 shall have the
monthly amount of retirement income increased by five percent (5%) over the gross amount they
were receiving in August of 1993 provided; however, this increase effective July 1, 1999 shall not
exceed one hundred dollars ($100.00)per month. Pr_"¥:'~e~, h~v.'e~.'er, Effective August l, 1999, all
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 the participant's normal
retirement income, regardless of the participant's retirement date, shall receive benefits based on a
minimum monthly normal retirement income mount of at least $40~. five hundred dollars ($500)
per month.
Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same
are hereby repealed.
Section 3. 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 4. That this ordinance shall become effective immediately upon its passage on
second and f'mal reading.
PASSED AND ADOPTED in regular session on second and final reading on this the
6th day of July , 1999.
ATTEST:
City Clerk
First Reading June 15, 19 9 9
Second Reading July 6, 19 9 9
2
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: CITY MANAGER~
SUBJECT: AGENDA ITEM #/0~- REGULAR MEETING OF JULY 6~ 1999
ORDINANCE NO. 20- 99 (RETIREMENT BENEFIT ENHANCEMENT FOR
RETIREES OF THE GENERAL EMPLOYEES PENSION PLAN)
DATE: JUNE 30, 1999
This is second reading and a public hearing for Ordinance No. 20-99
which amends Chapter 35, "Employee Policies and Benefits",
Subheading "Retirement Plan", of the City Code by amending Section
35.098, "Supplemental Retirement Income and Minimum Benefits", to
provide certain eligible members and their beneficiaries who retired
under the General Employees pension plan with enhanced benefits,
including an increased minimum benefit for participants with ten or
more years of credited service.
The ordinance provides for a five percent (5%) increase (not to
exceed over $100.00 per month), effective August 1, 1999, for
general employees who retired prior to September 30, 1993. The
minimum normal retirement pension has been increased from $400.00 to
$500.00 per month.
An actuarial impact statement is attached. The end result is that
the proposed change in benefits would have no effect on the required
employer contribution.
At first reading on June 15, 1999, the City Commission passed the
ordinance by unanimous vote.
Recommend approval of Ordinance No. 20-99 on second and final
reading.
Re~:~memo~5.0rd.20-99.Gen. Emp.
07/01799 THI_! 14:32 FAX 9545250083 CABRIEL,ROEDER,SMITH&C0. ~007
GABRIEL. ROEDEIL SMITH & COMPANY
301 East L~s Olas B~tl. · S~te 200 * Ft. Lauderdale, FL 33301 * 954-r-J27-1616 · FAX 954-5~
July 1, 1999
Mr. Charles Slavin, Actuary
Bureau of Local Retirement Systems
Division of Re§rement
Cedars Executive Center, Bldg. C
2639 North Monroe Street
Tallahassee, Florida 32399-1560
Re: Actuarial Impact Statement for the Retirement Plan for Employees
of the City of Delray Beach
Dear Mr. Slavin:
Please review the enclosed ordinance which would provide a one-time increase in benefits for
those reared before September 30, 1993 and which would also raise the minimum monthly benefit
from $400 to $500 for those who have at least ten years of service.
It is being proposed that this change in benefits would be funded from unrecognized investment
gains. In other words, the actuarial value of assets would be increased by an amount equal to the
present value of benef'~ attributable to the change. At September 30, 1998, the amount of
unrecognized investment gains was $8,069,140. The value of benefits attributable to the
proposed change is $346,953. Therefore, unrecognized gains would be reduced by $346,953
thereby increasing the actuarial value of assets by a like amount. The end result-is.that the
change in benefits would have no effect on the required employer contri~ti°n.
Enclosed tables show the actuarial impact of this proposal. With the exception just noted, this
Statement has been prepared using the same member data, asset information, and actuarial
assumptions and methods as were used in the October 1, 1998 Actuarial Valuation Report.
In our opinion, the changes are in compliance with Part VII, Chapter 112, Florida Statutes and
Section 14, Article X of the State Constitution.
Respectfully submitted,
For the Board of Trustees
As Plan Administrator
~r j. Stephen Palmquist, ~)A, MAAA, MCA
Enrolled Actuary No. 9cJ~1560
07/01/99 TlR! 14:32 FAX 9545250083 GABRIEL.ROEDER,SMIT/t&C0. ~008
.i il i':i'.::!:::i:* .:.'.' "*" *'"':'. ~::::',"i:::: ':i'. ." i:'": 'i.'SUMMAR¥'O~':¥ALUATIONiRESULTS:.I '..: ...::'~"~:~f:October'ii'l~," .,:.."*, '.i,}:ii .'~.','::"" * "*"* ':*::"': ":i:i'"' :...
Before After
Changes Changes
A. Number Included in the Valuation
1. Active Members 350 350
2. Inactive Members 137 137
B. Covered Annual Payroll $10,830,498 $10,830,498
'"!.L.:"~i~!'.~i~' CosT..~.'.:'?i"~:::~"~' '?'",:i'. ::,,. ', ". ,', ,. ~?,,:.',!,,~:~?'i ~.;::: :': ,:, ', ;:"::~:i:'!::,::.',~::i?;, :::";' ': '"?: :',.";..~:"."~:,' '..". ',
C. Actuarial Present Value of Projected Benefits 43,871,021 44,235,974
D. Actuarial Value of Assets 43,376,078 43,741,031
E. Actuarial Present Value of Future Contributions
1. Total: C-D 494,943 494,943
2. Portion Assigned to Unfunded Actuarial
Accrued Liability (UAAL) 0 0
3. Portion Assigned to Future Normal Costs 494,943 494,943
~N ':~~~T..:,.:..[.,.::.i ' ............;:....:.:.:.:.,:....,.,. ........::::...:...-...'.
F. Annual Payment Needed to Amortize UAAL 0 0
As%ofB -- --
G. Annual Employer Normal Cost (409,927) (409,927)
As % of B (3.78)% (3.78)%
H. Interest on F and G from Valuation Date to
Contribution Date(s) (39,856) (39,856)
As % of B (0.37)% (0.37)%
I. Required Employer Contribution: F + G + H (449,783) (449,783)
As % of e (4.15)% (4.15)%
J.. Year to Which Contributions Apply
1. Plan Year Ending 9/30/99 9/30/99
2. Employer Fiscal Year Ending 9/30/00 9/30/00
3. Assumed Date(s) of Employer Contributions 12/31/99 12/31/99
. 07'/0~/99 THI_T 14:33 FAX 9545250083 GABRIEL,ROEDER,SMITH&CO. ~009
Before Alter
Changes Changes
A. Actuarial Present Value of Projected
Benefits for
1. Active Members
a. Normal Retirement Benefits $ 29,240,186 $ 29,240,186
b. Vesting Benefits 1,111,016 1,111,016
c. Disability Benefits 1,270,964 1,270,964
d. Preretirement Death Benefits 1,914,593 1,914,593
e. P, eturn of Member Contributions 35,456 35,456
f. Other 0 0
g. Total 33,582,215 33,582,215
2. Inactive Members
a. Service Retirees and Beneficiaries 8,710,442 9,075,395
b. Disability Retirees 198,919 198,919
c. Terminated Vested Members 1,379,445 1,379,445
d. Total 10,288,806 10,653,759
3. Total for All Members 43,871,021 44,235,97'4
B. Actuarial Value of Assets 43,376,078 43,741,031
C. Unfunded Actuarial Accrued Liability 0 0
D. Actuarial Present Value of Projected Member
Contributions 4,321,759 4,321,759
E. Actuarial Present Value of Projected
Employer Normal Costs: A3 - B - C - D (3,826,816) (3,826,816)
F. Actuarial Present Value of Projected
Covered Payroll 96,039,100 96,039,100.
G, Employer Normal Cost Rate: 100 x E/F (3.98)% (3.98)%
H. Annual Payroll of Active Members Below 10,830,498 10,830,498
I.. Employer Normal Cost: G x H (431,054) (431,054)
J. Assumed Amount of Administrative Expenses 21,127 21,127
K. Total Employer Normal Cost: I + J (409,927) (409,927)
~A'PUBLIC h'EA~l'l N G will be held o~
follovv~ proposed ordinances a 7:~
~.m..on Tm~, Ju~ 6,1~ (or
~co~n~ion of such ~ing
~ is ~ ~'~ ~i~ion), in
~ C~ ~ion ~m,
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~ ORDI~ OF ~E C~ ~M-
M~SSION ~ THE CI~ OF DEL~Y
..~H, ~OR~ ~ENDING ~P-
~R ~, "EM~O~ES POLICIES AND
BENEFffS", SUS~I~ "R~IRE-
ORDf~CES ~ ~ C~ OF
~Y ~H BY ~ENDING
35.~, "SUP~ME~
,ME~ INC~E ~D MINIMUM BEN-
~OVIDE CE~AIN
EFffS",
TO
8~ MEMBERS AND ~EIR BENEFi-
CI~IES ~0 R~IRED UNDER THE
~NE~ EMPLOYS ~NSION
~ W~ EN~CED BENEF~S
I~ING ~I~R~ED MINI-
'~M BENEFE~R P~IClP~5
~ ~N O~ORE ~RS OF
~D~ S~ICE; PR~IOING A
~ REaR C~USE, A
ION ~ ~E C~ ~ ~L~Y
H, ~0~ ~E~I~ C~P-
~R ~. "~LICE ~D FIRE ~EPA~-
~E~S"; SU~ING, "~N-
SIONS" SE~ION 33.~,
ME~.R~ME~ I~OME AND
~I~MUM ~F~ mR MEMBERS
~0 R~RED PRI~ TO A ~RTAIN
~A~", ~ ~ECODE OF
~CES ~ ~E C~ ~ DEL~Y
~H BY ~DING SE~ION
~ION ~.~C); TO PROVIDE ELi-
~ MEMBERS AND ~EIR BENE-
~RtES WHO R~R~ UNDER
~ *~LI~ ~D FIRE ~ION
~" W~ ~AIN EN~
~NE~S ~D S~ING A MINI-
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Publish: June 25~ 1~
[ITY OF DELRI:IY BEI:I[H
CiTY ATTORNEY'S OFFICE ~00 ~w ~, ~.v~. ~.^¥ .~^~.~ ~o.,~^ ~.~
TELEPHONE 561/243-7090. FACSIMILE 561/278-4755
DELRAY BEACH
Writer's Direct Line: 561/243-7091
Ali. America City
DATE: June 11, 1999
1993
TO: City Commission
FROM: Susan A. Ruby, City Attorney
SUBJECT: Ordinance 20-99 and 21-99 Applying A Retirement Benefit Enhancement
for Retirees of the Police and fire Pension Plan and General Employees
Pension Plan
Ordinance 20-99, provides for a 5% increase (not to exceed over $100.00 per month,
effective August 1, 1999 for general employees who retired prior to September 30, 1993.
The minimum normal retirement pension has been increased from $400 to $500 per
month.
Ordinance 21-99 provides a 5% increase (not to exceed $100 per month) effective august
1, 1999 for police and fire pension plan members who retired prior to September 30,
1993. Only participants with ten or more years of credited service shall receive a
minimum normal retirement benefit of at least $500 per month. Please call if you have
any questions.
By copy to David Harden, City Manager, our office requests these ordinances be placed
in the June 15, 1999 agenda.
Attachment ~0~ 5/./0
CC: David Harden, City Manager ~\~o%~~2
Alison Harty, City Clerk
/~7. N.
ORDINANCE NO. 20-99
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35,
"EMPLOYEES POLICIES AND BENEFITS", SUBHEADING
"RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF THE
CITY OF DELRAY BEACH BY AMENDING SECTION 35.098,
"SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM
BENEFITS", TO PROVIDE CERTAIN ELIGIBLE MEMBERS AND
THEIR BENEFICIARIES WHO RETIRED UNDER THE GENERAL
EMPLOYEES PENSION PLAN WITH ENHANCED BENEFITS,
INCLUDING AN INCREASED MINIMUM BENEFIT FOR
PARTICIPANTS WITH TEN OR MORE YEARS OF CREDITED
SERVICE; PROVIDING A GENERAL REPEALER CLAUSE, A
SAVING CLAUSE, AND AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Delray Beach desires to enhance certain
retirement benefits for certain retirees covered under the General Employee's Pension Plan.
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
35.098, "Supplemental Retirement Income and Minimum Benefits", to read as follows:
Section 35.098. SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM
BENEFITS
Effective as of January 1, 1993, all participants or beneficiaries of participants 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. In addition, effective August 1, 1999, all participations or beneficiaries of
participants who were receiving benefits under the plan prior to September 30, 1993 shall have the
monthly amount of retirement income increased by five percent (5%) over the gross amount they
were receiving in August of 1993 provided; however, this increase effective July 1, 1999 shall not
exceed one hundred dollars ($100.00) per month. Pre:4ded, hewever, Effective August 1, 1999, all
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 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 $409. five hundred dollars ($500)
per month.
Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same
are hereby repealed.
Section 3. 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 4. 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 ,1999.
MAYOR
ATTEST:
City Clerk
First Reading
Second Reading