Ord 32-99 PULLED FROM AGENDA - AUGUST 18, 1999
ORDINANCE NO. 32-99
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AMENDING CHAPTER 33, "POLICE AND
FIRE DEPARTMENTS", SUBHEADING "PENSIONS", OF THE CODE OF
ORDINANCES OF THE CITY OF DELRAY BEACH BY AMENDING
SECTION 33.62, "BENEFIT AMOUNTS AND ELIGIBILITY", TO
PROVIDE THAT CURRENT EMPLOYEES WHO ARE ENROLLED IN THE
DEFERRED RETIREMENT OPTION PLAN AS OF THE EFFECTIVE
DATE OF THIS ORDINANCE SHALL BE ENTITILED TO THE 3%
MULTIPLIER STARTING WITH THOSE MONTHLY RETIREMENT
PAYMENTS ISSUED AFTER OCTOBER 1, 1999; PROVIDING A
GENERAL REPEALER CLAUSE, A SAVING CLAUSE, AND AN
EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Delray Beach desires to allow
employees who are currently enrolled in the Deferred Retirement Option Plan, ("DROP plan")
to be entitled to the 3 % multiplier.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH AS FOLLOWS:
Section 1. That Chapter 33, "Police and Fire Departments", subheading, "Pensions",
of the Code of Ordinances of the City of Delray Beach is hereby amended by amending
Section 33.62, "Benefit Amounts and Eligibility", Paragraph F, "Application of section", to
read as follows:
Section 33.62 BENEFIT AMOUNTS AND ELIGIBILITY.
(F) Application of section. The provisions set forth herein shall be applicable to all
current and future members of the plan, except those members who retired, entered the DROP
plan, or terminated employment prior to the effective date of this ordinance. Members who
retired, entered the DROP plan, or terminated employment prior to the effective date of this
ordinance shall receive benefits in accordance with the plan provisions in effect on the date of
their retirement, entry into the DROP plan, or termination, whichever is earliest. However, a
member of the plan who is enrolled in the DROP plan as of the effective date of this ordinance
shall be entitled to the 3 % multiplier as provided for by Section 33.6203)(2). This multiplier
shall only be applied to those monthly retirement payments issued after October 1, 1999.
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and the same are hereby repealed.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
Ord. No. 32-99
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
Ord. No. 32-99
MEMORANDUM
RECEIVED
1 3 1999
To: David T. Harden, City Manager CITY MANAGER
From: Joseph M. Sa~~nce Director
Date: August 13, 1999
Subject: Actuarial Cost of the I.A.F.F. Request (DROP Plan Retirees)
As you know, the International Association of Firefighters is attempting to have the
present pension plan revisions, in particular the 3% multiplier for years of service, apply
to persons currently in the DROP Plan and thus have retired from the City for pension
plan purposes.
The extensive changes being made in the pension plan for Police and Fire have reduced
the balance in the "Unrecognized Gains" account by $8,590,691 leaving a balance of
$3,293,696. These changes would have an impact on all current 255 active plan
participants and all 50 retirees prior to 1993 would receive a retirement benefit
enhancement.
The actuarial cost of this additional benefit change would further reduce the
"Unrecognized Gains" balance by $986,097 leaving a revised balance of $2,307,599.
This change would impact only 14 active employees who have retired from the City
using the DROP Plan.
Please contact this office if any further information is required.
GABRIEL, RO-~DER, SMITH & COMPANY
301 East Las ~ Elvd. · Suite 200 · Ft. ~uGerdale, FL 33301 · 954-527-1618 * FAX 9.54-525-(}083
July 3(', 1999
Mr. Bil~' Adams, Secretary
Delray Beach Police and Firefighters
Pen;: ion Board
609 H~ ,mewood Boulevard
Delray Beach, Florida 33445
Dear [! ill:
We h~ ce determined the cost impact of allowing those in the DROP to be subject to the proposed
3% m~ ~ltiplier. In preparing these calculations, we did not include the six DROP participants who
have ~..ft the DROP since October 1, 1998. The remaining 14 DROP participants have been
includ,,. ~d.
If all 't 4 were granted the 3% multiplier, the present value of their benefits would increase by
$986,( e7 which in turn would raise the required annual contribution by $93,590.
Pleas,~. contact us if you have any questions.
~;, ,u,~ ~l.y ~.,~'~.,
!
J. Ste )hen Palmquist
JSP/c'
[lTV OF DELI:II:IV BEREH
CITY ATTORNEY'S OFFICE~°° ~TM^~' ~^~'~^~" ~o~,~^ ~
TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755
DELRAY BEACH Writer's Direct Line: 561/243-7091
Ali.America City
DATE: August 11, 1999
1993
TO: City Commission ~..-~
FROM: Brian Shutt, Assistant City Attorney
SUBJECT: Ordinance No. 32-99 (Police and Fire Drop Plan)
At the Commission meeting of August 3, 1999, the Commission discussed the issue of
whether current members of the DROP plan should be eligible for the 3 % multiplier.
Our office has drafted Ordinance No. 32-99 which provides for inclusion of current
DROP plan members.
By copy of this memorandum to David Harden, City Manager, our office requests that
this ordinance be placed on the City Commission agenda of August 17, 1999 for first
reading. Please call if you have any questions.
Attachments
cc: David T. Harden, City Manager
Alison MacGregor Harty, City Clerk
James W. Linn, Esq.
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: (~CITY MANAGER
SUBJECT: AGENDA ITEM #J~ - REGULAR MEETING OF AUGUST 17, 1999
ORDINANCE NO. 32-99 (POLICE & FIRE DROP PLAN)
DATE: AUGUST 13, 1999
It has been brought to my attention that the Police and
Firefighters Pension Board did not initiate the action set out in
Ordinance No. 32-99 nor has the board reviewed the proposal, its
impacts, etc.
In view of this, I am recommending that the City Commission take
no action with respect to Ordinance No. 32-99 until the Police
and Fire Pension Board has had the opportunity to review same.
Ref :Agmemol3. Ord.No. 32-99. DROP