Ord 36-03ORDINANCE NO. 36-03
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 D~JRAY 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 amend the
employee contributions under the General Employees Retirement Plan.
NOW THEREFORE, BE IT ORDAINED BY TIE CITY COMMISSION OF
THE CITY OF D1RI.RAY BEACH AS FOLLOWS:
Section 1. That Chapter 35, "Employee Policies and Benefits", subheading,
"Retirement Plan", of the Code of Ordinances of the City of Delmy Beach is hereby amended by
mending 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 (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 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
contxibutions 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 not
be required to contribute to the plan, except those participants described in paragraph (4) of this
Section. Beginning with the first pay period after September 30, 2003, participants who are not
included in the bargaining unit specified in para~aph (3) shall contribute two percent (2°/5) of basic
compensation.
(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
texminated, elects to withdraw participant contributions, the participant will be entitled to the remm
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 contxibufion as accrued on December 31 of each year.
Effective September 1,1999, ifa participant has less than ten (10) years of credited service under the
plan a non-compounded simple interest rate of three 0%) 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 and 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 any 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 unless the City and union agree to a greater participant
contribution.
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.
Section 4. That this ordinance shall become effective immediately upon its
passage on second and final reading.
2 ORD. NO. 36-03
thc
PASSED AND ADOPTED in reg. l~r session on second and final reading on this
of ~. 2003.
day
City Clerk
First Reading
Second Reading ~~t~
3 ORD. NO, 36=03
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
MAYOR AND CITY COMMISSIONERS
CITY MANAGER ~
AGENDA ITEM #~- REGULAR MEETING OF SEPTEMBER 23. 2003
ORDINANCE NO. 36-03 (AMENDING CHAPTER 35,, "EMPLOYEE
POLICIES AND BENEFITS")
SEPTEMBER 19, 2003
This ordinance is before Commission for second reading and public heating mending Chapter 35,
"Employee Policies and Benefits", subheading "Retirement Plan", of the City Code of Ordinances to
increase the contribution requirement for general employees from zero to 2% of their basic
compensation.
At the first reading on September 9, 2003, the City Commission passed Ordinance No. 36-03.
Recommend approval of Ordinance No. 36-03 on second and final reading.
S:\City Clerk\agenda raemos\Ord 364)3.Employee Contibutions.9.23.03
rlT¥ OF DELRrI¥ BEI:II:H
CITY ITTORNEY'S OFFICE 200 Nw ,st AVENUE.DEL.AY BEACH. FLOR,DA 33444
TELEPHONE 561/243-7091') o FACSIMILE 561/278-4755
pE, L o~Y.
TO:
FROM:
SUBJECT:
Writer's Direct Line: 561/243-7091
MEMORANDUM
August 29, 2003
City Commission
David Harden, City Manager
Susan A. Ruby, City Attorney
Ordinance No. 36-03 - Revisions to General Employee Pension Plan
Ordinance No. 36-03 revises the contribution requirement for employees
previously paying zero to 2% of their basic compensation.
Please place this item on the September 9, 2003 agenda for first reading.
Cc arito, City Clerk
Joe Safford, Finance Director
Sherry Muehlberg, Administrative Manager
James W. Linn, Esq.
James Tabeek, Fire Inspector Lt.
ORDINANCE NO. 36-03
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),
"PARTICIPANTS 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 amend the
employee contributions under the General Employees Retirement Plan.
NOW THEREFORE, BE IT ORDAINED BY TIE 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
mending 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 "PARTICIPANTS 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 (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 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 not
be required to contribute to the plan, except those participants described in paragraph (4) of this
Section. Beginning with the first pay period after September 30. 2003. participants who are not
included in the bargaining unit specified in paragraph (/4) shall contribute two percent (2%) of basic
(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 w'fll be entitled to the remm
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°/o) 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 and 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 any actuary selected by the
Ret. rement Committee determines that additional contributions are required to properly fund the
plan, the City and bargaining unit members shall equally share such conuibufions 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
contribution.
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.
Section 4. That this ordinance shall become effective mediately upon its
passage on second and final reading.
PASSED AND ADOPTED in regnlar session on second and final reading on this
day of ., 2003.
A'I'I'EST:
MAYOR
City Clerk
First Reading
Second Reading