07-26-71 113
JULY 26, 1971.
A regular meeting of the City Council of the City of Delray Beach,
was held in the Council Chambers at 7:30 P.M., with Mayor J. L. Saunders
in the Chair, City Manager J. E!don Mariott, C~ty Attorney G. Robert
Fellows and Council Members Grace S. Martin, James H. Scheifley and O. F.
Youngblood being present and Leon M, Weekes being absent.
1. The Opening Prayer was delivered ]Dy Rev. Marvin Sweat.
2. The Pledge of Allegiance to the Flag of the United States of America
was given.
3. The minutes of the regular meeting of July 12, 1971, were unanimous-
ly approved, as amended, on motion' by Mrs. Martin and seconded by Mr.
Youngblood.
4. Mr. Scheifley reported that he had received several complaints re-
garding the location of the "No Right Turn" sign at S. E. 6th and
Atlantic Avenues and asked that th[_s sign be relocated near the Corner.
He said he had been asked why a "No.Right Turn" sign is necessary
at A1A anal Atlantic Avenue during the revetment repairs. The City Man-
ager reported that he had been asked the same question and that the
'traffic division of the Police Department is checking that out now.
6.a. The representative of the State of Florida Department of Trans-
portation did not appear to give their presentation in defining a new
Federal-Aid Highway Program.
6.b. The City Manager reported that the construction of 1-95 through
Delray Beach requires the rerouting of certain electric lines by
Florida Power & Light Company in the vicinity of Southwest 7th Street
and Southwest 15th Avenue and that the revamping of lines brings about
the need for an easement from the City for the purpose of installing
guy wires to anchor a pole, with said easement, which is adjacent to
the North side of Southwest 7th Street and West side of Southwest 15th
Avenue, being approximately 10 feet by 60 feet.
He further reported that the easement is located on County-owned
land on which the County gave the City a "Use Dedication" in 1948 in
return for the City's dedication of right-of-way for future construction
of State Road 9 (I-95).
He recommended approving said easement contingent upon Florida
Power & Light Company paying for the relocation of a ball field, which
will be necessary upon installation of 'the guy wires, at a cost of ap-
proximately $1,500.
The granting of an easement to Florida Power & Light Company and
the relocation of the ball park by Florida Power & Light Company, in
the amo~nt of $1,500, was unanimously approved on motion by Mr.
Youngblood and seconded by Mrs. Martin.
6.c. City Manager Mariott reported that in order to provide a more
direct route for traffic on S. W. 10tt~ S~reet to reach Carver Junior
High School and to eliminate use of the sand road across the property
on whicb t-.he Catherine Strong Cen'her is !ocat. ed, Council, on March 8,
i[971, autl~orized the paving of that porti_on of S. W. 17th Ave~}ue lying
botween S. w. 7th and 10th Stree~_s to a widt'h of ]..2 feet and between
S.'W. 6th and 7th Streets to a 'wid~t',~ of 24 feet. He said that the
fc!l.ewing bids for said paving were :~ecei. ved on Ju!l, 14, 197]., and rec-
omme.n~ed that the contract be awarded to Hardri¥'es of Dct~.~ay Inc.,
in tl~e amo'~nt of $15,300, representing a bid figure of $i5:800 minus
$500 for permitting tNe contractor to remove excess fill maheri+.~! from
the construction site and that funds to cover the cost of same be taken
from the Special Assessment Fund.
-1- 7-~26--7 !
ttardrives of Delray Inc.,
Delray Beach, Florida $15,800'
Rowe Cons~ruct~.on Company,
Fort Lauderdale, F!ori. da $17,250
Johnston Road Builders,
Fort Lauderdale, Florida $19,250
(*Deduct $500 from amount bid for allowing the contractor to re-
move excess fill material from the site.)
Mr. Scheif!ey moved that the contract be awarded to Hardrives of
Delray Inc., in the ~mount of $15,300, with the funds to cover the cost.
of same being taken from the Special Assessment Fund. The motion was
seconded by Mr. Youngblood and unanimously carried.
6.d. Regarding a request from Mr. Stan A. Grazdiel, General Manager
of the Spanish River Inn, 1111 E. Atlantic Avenue, for permission to
erect a Quality Mo{zel Sunburst sign at the main entrance to the motel,
said sign being 3 feet 6 inches by 8 feet long, with the ma~_n area be-
ing 5 feet by 10 feet, the City Manager recommended that same be referr-
ed to the Planning and Zoning Board for study and recommendation.
Said request was unanimously referred to the Planning and Zoning
Board with a special request that they consult with the Beautification
Committee concerning same, on motion by Mr. Scheifley and seconded by
Mrs. Martin.
6.e. City Manager Mariott reported that the City has been requested
to sell a tract of city-owned land, approximately 1 acre, located in
Section 21-46-43 on the South side of S. E. 10th Street approximately
150 feet West of S. E. 5th Avenue. He sai. d the prospective purchaser
wishes to add this tract to adjacent land for the purpose of providing
a site for commerci~.l development.
Mr. Arthur Sprott of Gracey Brothers Realty, representing the
prospective purchaser, was present.
After general discussion, said request was unanimously referred
to the Planning and. Zoning Board for study and recommendation, on mo-
tion by Mr. Scheif!ey and seconded by Mr. Youngblood.
7.a. Council was informed that a rezoning application has been received
from Burnup & Sims, Inc.~ of West Palm Beach, Florida, signed by its
President, James Graham, requesting a change in zoning from C-2 to C-3
(Wholesale & Light Industrial District) of a parcel of land in part of
Lot 1, Block 1, Section 21-46-43 located on the West side of Florida
East Coast Railway Company 'tracks between S. E. 4th and 5th Streets.
The City Manager recommended that same be referred to the Planning and
Zoning Board for study and reco~endation.
Said request for rezoning was unanimously referred to the Planning
and Zoning Board for study and recon~nendation, on motion by Mr. Youngblo,~
and seconded by Mrs. Martin.
7.b. This item regarding the opening and paving of part of N. W. 1st
Avenue was deleted from 'the Agenda.
7.c. City Manager Mariott reported that a req~est has been received
from Mr. James W. B~nnett for a gratis Occup~t~.onal License for the pur-
pose of solicit±ng s~]_es ~or ba%'h guard rails. Further, in view of Mr.
Bennet'l;.:s having f~.~.rnished sat~_sfactory evidence of be.~ng over 65 years
of age, 'his bir~i;hdate being April 5, ].898, and ot;herwise complying wit]]
requirements for such exemption as set forth in SecLion 16..--4 of the Code
of Ord'i.nances, he recommended '[;hat said request be granted.
Said request for a gratis license was ~]nar;imously approved, on mo-
tion by Mr. Scheif].ey and seconded by Mrs. Martin.
-2-~ 7-.26-71
8.a. The City Manager presented ORDINANCE NO. 18-71.
AN ORDINANCE OF T~[E CITY OF DELRAY BEACH RELATING
TO [3UILDING CODE, ~.dMENDING SECTION 105.4 PLOT
AGRAM, OF SECTIO~ 9--[1..2, CHAPTER 9 OF THE CODE OF
ORDIN~NCES WHICH IS A REVISION OF SECTION 105.4
OF THE SOUTHE~iN STANDARD BUiLD][[.q'G CODE BY ADDING
A REQUIREMENT FOR RECORDING A UNITY OF TITLE DEC-
LARATION AS A PREREQUISITE TO T[qE OBTAINING OF A
BUILDING PER}4IT, FOR A I¢'UILDING SITE }.~tDE UP OF
SEPARATE LOTS, PI.OTS, PARCELS OR PORTIONS THEREOF.
(Copy of Ordinance No. 18-71 is attached to the offic~at copy of
these minutes.) See pages ll8-A-B.
A Public Hearing having been legally advertised in compliance with
the laws of the State of Florida and the Charter of the City of Delray
Beach was held, and there being no objection to Ordinance No. 18-71,
said Ordinance was passed and adopted on this second and final reading,
on motion by Mr. Youngblood and seconded by Mr. Scheifley. Upon call
of to1! Mr. Scheifley, Mr. Youngblood and Mayor Saunders voted ~n
favor of the motion and [~[~:s. Martin was opposed.
8.b. City Manager Mariott presented RESOLUTION NO. 25-71.
A RESOLUTION OF THE CiTY COUNCIL OF THE CITY OF
DELP~\Y BEACH~ DELRAY BEACH, FLORIDA, PERTAINING
TO THE AMENDMENT A~ND RESTATEMENT OF A RETIREMENT
PLAN FOR CERTAIN EMPLOYEES OF T~IE CITY, AS SET
FORTH IN RESOLUTIONS NO. 1489 AND NO. 73-70; AND
PROVIDING FOR THE CONTINUATION OF THE PETIREMENT
TRUST SET FORTH IN RESOLUTION NO. 1489.
(Copy of Resolution No. 25-71 is attached to the official copy of
these minutes.) See pages ll8-C-FFF.
The City Attorney explained that this Resolution amends the General
Employees Pension Plan to comply with Internal Revenue Service require-
ments.
Resolution No. 25-71 was unanimously passed and adopted on first
and final reading, on motion by Mrs. Martin and seconded by Mr.
Youngblood.
9.a. The City Manager reported that Council, at its June 28th meeting,
referred a request for annexation of a 143.07 acre tract in Section 30-
46-43, located South of Germantown Road and bound by the Seaboard Air-
line Railroad and E-4 and C-15 Canals, to the Planning and Zoning Board
for study and recommendation. Further, said request was submitted sub-
ject.to obtaining RM-1A zoning on 123.05 acres and C-2 zoning on 20.02
acres and contingent upon mutually satisfactory arrangements being
worked out with the City with respect to installation of water and sewer
service to serve the area.
He fur%her reported that at its July 20th meeting, the Planning
and Zoning Board, unanimously recom~ended annexation of the eh.tire
143.07 acre tract s~bjeCt to RM-1A zon.i.ng and %hat Mr. Roy Gl{sson,
the petitioner's repcesen[:ative, was present at said meet[_ng and con-
cuffed with the action taken.
q?he Ci'ky M~nager said that Ordi_nance. No. 22-71 has been prepared
if Council w.i. shes to sustain the. reconur~endation of bhe Planning and
Zoning I'-}oard, and [:hat prior to passage of said Orc]inance on second an.d
final, reading, water a:,.~d sewer arrangements should be agreed upon or'
this contingency, which was communicated to [i-~e City by the applicant's
engineer, si}auld be withdrawn by the applicant.
--3-. 7-26-71
ORDINANCE NO. 22-71.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF DELRAY BEACH, FLORIDA, ANNEXING TO THE
CITY OF DEi,I~AY BEACH CERTAIN LANDS LYING IN
SECTION 30, TOWNSHIP 46 SOUTI~, RANGE 43 EAST,
WHICH LANDS ARE CONTIGUOUS TO EXIS'i'ING MUNICI-
PAL LIMITS OF SAID CITY; REDEFINING THE BOUNDA-
RIES OF SAID CITY TO INCLUDE SAID LANDS; PRO-
VIDING FOR THE RIG?[~i'S AND OBLIGATIONS OF SAID
LANDS; AND PROVIDING FOR THE ZONING THEREOF.
Ordinance No. 22--71 was unanimously placed on first reading, on
motion by Mr. Scheifley and seconded by Mrs. Martin.
10.a. Beery & Brown Agency, Inc., was unanimously reappointed as the
City's Insurance Agent of Record for a three-year term expiring on
June 30, 1974, on motion by Mrs. Martin and seconded by Mr. Scheifley.
10.a. The City Manager reported t~at the City had determined the need
for a 12-foot Utility Easement across a portion of the Sudan Subdivision
property to install u'ti!ities to serve High-Point and other nearby areas
an'd had requested an Easement Deed for same. Said Deed for a 12-foot
Easement across the South side of Lots 7, 8, 9, 10 and part of 11, Sec-
tion 18-~46-43, has been received and he reco~unended that the City accept
and record same.
Acceptance of said Easement Deed and recording of same was unanimous-
ly authorized, on motion by Mr. Youngblood and seconded by Mrs. Martin.
10.a. Regarding paving of the 16-foot alley in Bl$ck 1, Rosemont Park,
to a width of 16 feet, approved by Council in April, 1971, the City
Manager submitted the following bids:
Rowe Construction Company,
Fort Lauderdale, Florida $5,180.
Hardrives of Delray Inc.,
Delray Beach, Florida $5,438.
He recommended 'that the contract be awarded to Rowe Construction
Company in the amount of $5,180. with funds to cover the cost of
same being taken from the Special Assessment Fund.
Said contract for paving of the 16-foot alley was unanimously award-
ed to Rowe Construction in the amount of $5,180, with funds to cover
the cost of same being taken from the Special Assessment Fund, on motion
by Mr. Youngblood and seconded by Mrs.. Martin.
10.a. Concerning the p'aving of a portion of S. W. 6th Street between
S. W. 5th and 8th Avenues, which lies south of and adjacent to Rosemont
Gardens, Unit "B", '[:he City Manager informed Council that Mr. Emil Danciu
of Irving Stuart, Inc., i.n talking with the City Engineering Department
said 'that it had been his understanding that the City weuld pay half
the cost of paving said street, with the developer of the subdivision
paying for .the half of the street abutting hi.s s~,~bdivision.
It was po.i~nted out that the property on the South side of S. W.
6th Street between 5th and 8%~h Avenues is owned by six different indi-
viduals, and that there ~'~ay be a possibility of this improvement being
made on an asssessment basis.
The Ci'hy Manager .~ecem'.~ended that the City not pay for paving the
~.}ther half of the s'treet as he believed J.t would be contrary %o City
t~olicy and would be se%tii.ng a pre¢~edent. Further, if the developer has
t.l~e time to wai'h for ±f~e special assessment procedure to be followed he
bet'kew{~d it could be done ~nd certainly should be done. Also, that a
full street is better titan half a street ~ni~ch wou].d benefiit the property
-4- 7-26-71
117
owners on the South side and would be more equitable than irving Stuart,
Inc., paying for paving the entire cost of the full street, or leav~_ng
the street only half paved.
During discuss~.on, Mr. Mintzer said that his firm would be willing
to contract for pavi. ng the whole street pending the outcome of the
special assessment to the property owners on the South side, on a reim-
bursement bas~s.
The City Manager said this could not be done on a reimbursement
basis and said that he believed there are two choices: that the develop-
er would pave h~s half of the street and the City will ahtempt to go
the special assessment route for tile other half ef the street; or that
the developer can pave it all at h~s expense.
Mr. Danciu said 'that the developer would wait to see what happens
with the other side of the street before they go ahead with paving.
Hr. Sche[fley moved to follow the recom~.eendation of tile City Man-
agar concerning hhe paving of said streee, the motion being seconded
by Mr. Youngblood and unanimously carried.
Mr. Danciu reported that they have 110 applications for PHA hous-
ing and that only two are not DelNay Beach residents, one being from
Boynton Beach and one from Lake Worth, but that the FHA has not given
approval to any of the applications as of this date.
Following a question by Mr. Scheifley, Mr. Danciu reported that
of the 66 residents in the path of 1-95, 28 have applied to them for
FHA housing.
X. ~.4r. Scheifley con'~nented on the $300,000 that the County Commission
allocated for Beach Erosion next year and co~aended the City Manager for
his part in this program.
X. P{ayor Saunders announced that Councilman Weekes is not present
night as he is out of town.
10.b. The following Bills for Approval were unanimously approved for
pe~nment, on motion by Mr. Sche~fley and seconded by Mr. Youngblood.
General Fund $639,653.34
Water Operating & Maintenance Fund 7,750.47
Water Revenue Fund 222,664.92
Utile_ties Tax Revenue Fund 35,020.24
Refundable Deposits Fund 1,286.55
Improvement Fund 14,944.50
Cigarette Tax Fund 40,000.00
Capital Improvements Construction Fund 9,486.50
The meeting adjourned at 8:25 P.M.
HALLIE E. YATES
City Clerk
A P PROVED:
MAYOR
l18-A
ORDINANCE NO. 18-71.
AN ORDINANCE OF THE CITY OF DELILAY BEACH RELATING
TO BUILDING CODE, AMENDING SECTION 105.4 PLOT DI-
AGt~AM, OF SECTION 9-1.2, CHAPTER 9 OF THE CODE OF
ORDINANCES ~ICH IS A REVISION OF SECTION ].05.4
OF THE SOUTHERN STANDARD BUILDING CODE BY ADDING
A REQUIREMENT FOR RECORDING A UNITY OF TITLE DEC-
LARATION AS A PREREQUISITE TO THE OBTAINING OF A
BUILDING PE~4IT,' FOR A BUILDING SITE MADE UP OF
SEPARATE LOTS, PLOTS, PARCELS OR PORTIONS THEREOF.
WHEREAS, the City Council of the City of Delray Beach has deter-
mined that it is in the best interest of the City of Delray Beach to
require the recording of a document to be known as a Unity of Title
Declaration, as a prerequisite to obtain a building permit for a
building site which is made up of separate lots, plots, parcels or
portions thereof;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. That Section 105.4 Plot Diagram of Section 9-1.2,
Chapter 9. of the Code of Ordinances of the City of Delray Beach be
~nended to read as follows:
"SEC. 105.4 PLOT DIAGRAM.
The Supplement, hereinabove referred to, is hereby
amended by adding thereto, under Article I, Section
105.4 of the Southern Standard Building Code ~]ended to
read as follows:
105.4 Plot Diagram.
(A) Bef~)re a building permit shall be issued, the
building department shall be supplied with the follow-
ing:
(1) Drawings to scale showing the location of the pro-
posed building or structure and of every existing
building or structure on the site or lot.
(2) A certified sketch prepared by a Florida registered
land surveyor or a Florida registered engineer,
showing the boundary line survey of said lot or site
and existing buildings and/or structures, if any.
(3) Unity of Title Declaration. Where it is found nec-
essary in order to obtain a building site of suf-
ficient size and dimension to meet the minimum yard
requirements, setback distances or plot area appli-
o~nh]~, thereto, chat separate lots, plots, parcels
or portion~ ~hereof must be combined, added or join-
ed to the whole or portion of any other recorded lot,
parce.1, or acreage, the applicant for such building
permit shall first place on file or record as a pub-
lic document in the official records in the office
of the Clerk of the Circuit Court of Palm Beach
County, an instrument hereinafter referred to as a
Unity of Title Declaration. Such Unity of Title
Declaration shall be in a form and content sufficient
to unequivocally state that the aforesaid combina'Izion
· of separate lots, plots, parcels, acreage, or
thereof shall be regarded as unified under one '[~itle
as a indivisible building site.
Page 2. Ordinance No. 18-71.
(B) Before slab inspection or prior to fram].ng the
building deparlmenh shall be supplied a certified sketch
by a Florida registered land surveyor or a Florida reg-
istered engineer showing setback distances from each
proper~hy line to the stem wa]_ls or sills of the building
or structure under construction.
(C) Any violations found by the building inspectors
at this stage of cons%ruction must be corrected before
the construction may proceed and before other inspections
are made."
SECTION 2. Ail ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 3. Specific authority to,codify this ordinance in the
City's Code is hereby granted.
PASSED AND ADOPTED in regular session on this secon~ and final
reading on this the 26th day of J[.~ly , 1971.
MAYOR
ATTEST:
First Reading July 12, 197]..
Second Reading July 26, 1971.
118-C
DECLARATION OF UNITY OF TITLE
ICNOW ALL MEN BY TItESE PRESENTS, that pursuant to the ordi-
nances of the City of Delray Beach pertaining to the issuance
of building permits and regulating building construction activ-
ities, the undersigned, being the fee owners of the following
described real property situated in the City of Delray Beach,
County of Palm Beach and State of Florida, to-wit:
do hereby make the following declarations of condition, limita-
tion and restriction on said lands, hereinafter to be known and
referred to as a DECLARATION OF UNITY OF TITLE, as to the fol-
lowing particulars:
1. That the aforesaid plot or combi~nation of separate lots,
plots, parcels, acreage o~ portions thereof, shall here-
inafter be regarded and is hereby declared to be unified
under one title as an indivisible building site.
2. That the said property shall be henceforth be considered
as one plot or parcel of land, and that no portion there-
of shall be sold, assigned, transferred, conveyed or de-
vised separately except in its entirety as one plot or
parcel of land.
The undersigned further agree that this declaration of Unity
of Title shall constitute a covenant to run with the land, as
provided by law, and shall be binding upon the undersigned, their
heirs, successors and assigns, and all parties claiming under them
until such time as the same may be released in writing under the
order of the Chief Building Official of the City of' Delray Beach.
If the release is not given by the Chief Building Official, an
appeal from such determination may be taken to the Board of Adjust-
ment. The undersigned also agrees that this instrument shall be
placed of record in the office of the Clerk of the Circuit Court
of Palm Beach County, Florida.
Signed, sealed, witnessed and acknowledged this
day of , 19 __, at Delray Beach, Florida.
WITNESS:
(SEAL)
(SEAm)
STATE OF FLORIDA
COUNTY OF PAI24 BEACH
I HEREBY CERTIFY that on this day of .,
19 __, before me personally appeared
and to me known to be 'the persons de-
Scribed in and who executed the foregoing instrume~.t and they ac-
knowledged to me the execution thereof to be their free act and
deed for the uses and purpose herein mentioned.
WITNESS my signature and official seal at Delray Beach in the
County and State aforesaid.
PLEASE RETURN TO: NOTARY PUBLIC
l18-D
EJ~HIB._T A
RETIREMENT PLAN FOR EMPLOYEES OF
THE CITY OF D~:JLY~\Y BEACH
As Amended and Restated
E£fective
J anuar~_ 1_3__1~ 1__ ....
_Ci__t~ of Deiray Beach
Delray Beach, Flor~ da
l18-E
E)UIIBIT A
RETII{L~4E]~T PLAN FOR >D~PLOYEES OF
THE Citify OF DELRAY BEACt[
T~.blc'~ ~ of Contents
OPdPINANCE
Section
ARTICLE I - CR~hTION
1.1 - Authorization ' 1-a
1.2 - Purpose .......................... 1-a
]-.3 - Name ............................ 1-a --
1.4 - Effective Date ........................ 1-a
1.5 - Introduction ........................ 1-b
~TICLE ii - ELIGIBILITY: PARTICIPATION: SERVICE:
2.]. - Elicibility: Participation ................ 2-a
2.2 - Service ...........................
2.3 Leave of Absence ~ . . . 2-c
2.4 - Credited Service ............. , ......... 2-d
ARTICLE III - MISCELLANEOUS PROVISIONS REGARDING THE PLAN
3.1 Participant's Contribution Account .............. 3-a
3.2 - Contributions ................... . ..... 3-a
3.3 - Expenses of Administration ..................
~.4 - City's Contributions Irrevocable ...............
3.5 - Amendment of Plan 3-b
3.6 - Te~nination of Plan . . .' ..................
AHTICLE IV - BASIS~_ Ab:Ogl'~ Ai'~D .n~r.,.~ I OF ,,~,~_,~ INCOME
14.1 - Basis of Retirement Income ..................
4.2 - No~nal Retirement and Retirement Income ...........
~.3 - Early Retirement and Retirement Income ............. 4-d
4.4 - Disability Retirement and Retirement Income . . . 4-e
4.5 - Benefits Other Than on Retirement .............. 4-j
4.6 - Optional Forms of Retirement Income .............
4.7 - Lump-sum payment of Small Retirement Income .........
4.8 - Limitation on Pa~aent of Retirement Income ' 4-r
4.9 - Termination of Service for Dishonesty . .. ..........
4.10 - Funding of Benefits Through Purchase of Life Insurance
Contract or Contracts ........... ....... . . 4-s
4.11 - Forfeitures and Dividends ' 4-~
4.12 - Temporary Limitations on Benefits Required by the Internal
Revenue Service .......... i ............ 4-v
it 98
l18-F
i-h'~;Pi]~Ei.2~i~f 1t~.. FOR E~.PLOYEE$ OF
T]IE CITY OF DELRAY BEACH
Table of Conte.nt~n (continued)
ARTICLE V },,.ISCEL, fP. NEOUS PROVISIONS ......... t[I,,;O
5.1- ~,~ .... ~i,~,'-~{ ..... ~o to Furnish Re%~red information. . . . , . . .' ~-a
~.2 - Beneficiaries .......................
5.3 .- Contingent Beneficiaries ....... · ...........
5.4 ~ ..... ~ ~, o-~ .... in ........ .
- ~ olc~p~n~ s ~len~o Trust Pund .....
5-5 - Benefits Not Assigna]}le .................. 5-d , .
5.6 - Benefits Payable to ~,~nors and Incompetents ....... · ·
5.7 - Conditions of-~n~,=~o~ontj.,.~ Not Affected by Plan · · · · · ·
5.8 - Ab~naoPs.~n~ of Benefit 5-f
6.1 - Administration by Retirement Co~,~:~'~'=~ ~ee. . ...... . 6-a
6.2 - Officers and >l~p!oyces of Retirement Comsmittee ...... .
6.3 - Action by R~omre~:~,~ Cor~nzooe~..
6.4 - Rules and Reg~ations of Retirement CoP~ttee ....... 6-c
6.5 Powers of Retirement Co~zm~o~=e ............... 6-c
6.6 - Liability of ~=~
n= o=r=meno Co:mnittee .............
6.7 - Actuary ..........................
6.8 - Applicable ~w ....................... 6-e
7~2{T!CLE VII - TRUST PNfD AND TRUSTEE'
. - =.uoo=e .................... . . . . . . 7-a
7.2 - ~pose of Trust Fund ................... 7-a
, , und 7- a
7.3 - Benefits Supeorted 0nly by Trust w ............
7.4 - ~" ~ - '
~us~ Fund Applicable Only to Payment of Benefits ..... 7-a
7.5 - Termination of Plan and Distribution of Trust P~nd. . ·
7.6 - Benefits i0%~ Vested if Plan is Terminated or Contributions
Permanen~_y Discontinued. 7- d
96Z
l18-G
~ES0!,UTION 1{0. 2 5- 71 .
.L~, CiTY COUNCIL 0F .... ~
CITi' OF N~LTb%Y ~ ........ "~ ....
OF A ' .............. _~..L ~OR
OF ~'}~ C_[tz~ AS SE? t, 0~,1,{ i(N RESOLUT!ONS
NO. 1489 A!TD i';0. 73-70; AND ',-~-,,o~ ........ ~.u,..~,,~-'~ ..... ~R
SET ~'O~d.,~ ~'~ t~JSOi(13T!ON 1]0. 1)~9.
D ~ _~ a y
I'~[ERFAS~ the City Council of the City of ~'-
Beach, Deb'ay Beach, Florida, has the power to establish
a retirement plan fo~' the city employees by virtue of
Section 25(c) o£ the Charter of the City of DeLroy Beach;
and
i',5}3RFAS~ the City Com~ci.]. has determined that it is
in the best interests of the citizens of this city to amend
and restate the retirement plan £or ce;%ain of the city
employees;
NOW~ THF. P&t~.X)RE~ BE iT RESO!.,~ED:
1-a . l18-H
ARTICLE ! - Ct~EATION
Section 1.1 - AUTHORIZj~TION
An amended and restated retirement plan is hereby authorized to be
adopted and the existing retirer~,ent trust together with said plan is authorized
to be administered to provide benefits in accordance with the provisions of this
resolution. The currently appointed retirement co~_ittee is authorized and
directed to take the necessary steps for putting the pIan into effect, sub-
m~ttins the necessary doc~,~,ents to obtain approval of the plan by the Internal
Revenue Service as a qualified plan under Sections 401(a) and 501(a) of the
Internal Revenue Code, make any e~nent~ents required by the Internal Revenue
Service to obtain such approval and administer the elan as provided herein,
provided such mmendhments do not increase the cost of the plan to the City.
Section 1.2 - PURPOSE
The purpose of the plan is to provide benefits to regular and
permanent employees of the City, as the term "employee" is defined herein,
and their beneficiaries upon the occurrence of retirement, death, or disability
of the employee or upon his termination of employment as provided herein.
Section 1.3 - NA~.E
R~e plan hereby created by the City of Delray Beach (hereinafter
referred to as the "City") shall be kno~n as the RETIREMElfP PLAN FOR EI,~LOYEE$
OF THE CITY OF DELRAY BEACH (hereinafter referred to as the "plan"). Ail the
affairs and business of such plan shall be transacted in such name.
Section 1.4 - EFFECTIVE DATE
The plan hereby created was effective as of January 1, 1965 and
shall be mmended and restated effective as of January 1, 1971.
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Section ].5 - I~TRODUCTION
The plan will be administered by a retirement conm~ittee, as more
fully described in Section 6.1 of the plan. In conjunction with the ~m~endment
and restatement of the plan, the City will continue the trust fund p~suant to
an agreement %~hich is known'as the RETIREMENT TRUST FOR EMPLOYEES OF THE CITY
OF DELRAY BEACH (which trust agreement, as it is originally written and as it
may hereafter be ~mended, is ~ereinafter referred to as the "trust agreement"),
with ~e First ~ational Bank of Delra:j Beach, Delray Beach, Florida, as trustee
(hereinafter referred to as the "trustee"), and the funds contributed by the
City and the employees for the purpose of providing the benefits specified
in tl]e plan will be held in the trust fund and administered by the trustee in
accordance with the provisions of the trust agreement.
The trust agreement, and any future amendments thereto, shall
form a part of the plan and any amen~aents hereto, in the same manner as if
all terms and provisions thereof were copied here in detail; the terms and pro-
visions of the plan, and any future amendn~ients hereto, shall form a part of said
trust agrec~iient as from time to time it may be amended, in the same manner as
~f the s~ae were copied in said trust a~reement in detail.
The plan as set forth herein is an amendment, restatement and
continuation of the superseded plan as in effect on December 31, 1970, and
it is intended that there be no lapse either in time or effect between this
plan and such superseded plan.
Under the superseded plan, all benefits provided thereunder were
funded through the medium of a t~st fund established and maintained for the
purposes of the superseded p!an; under the plan, all benefits will likewise
be funded throug~ the medi~ of a trust fund, established and maintain~
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the purpos~_~s of the plan, for the exclusive benefit of the employees covered
unae~ the pi. an, and their beneficiaries.
w~l.~ be treated alike under ~-~ ;
All covered employees ' ~ ~L~ plan how--
ever, it is the desire and intention of the City to preserve for the benefit
of the employees covered under the superseded plan all benefits accrued to
their credit thereunder as of December B1, 1970. The benefits provided under
the olan for such emo~ovees~ are at least equal to the benefits b~ orovided
under the superseded p~an, as in effect on December 31, 1970. Furthermore, no
rights under the superseded o!an as heretofore vested have been diminished.
~]e plan is applicable to each employee of the City who is eligible
to participate thereunder upon meeting the applicable eligibility requirements
adopted by the City. Each such employee ~zho retires from service with the
City on or after January 1, 1971 in accordance with the terms of the plan
will be entitled to a retirement benefit determined in accordance with the
following provisions. Each employee whose service is terminated on or after
Januarys!, 1971 but prior to his retirement hereunder will be entitled to the
benefits described in Section 4.5 hereof. Any employee of the City who was a
Participant in the superseded plan mhd who had retired under such plan prior
to January 1, 1971, and who was no longer in the active full-time service of
the City as of such date shall continue to receive the benefits to which he
was entitled tmder the superseded plan but shall not receive any additional
benefits under the plan.
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Section 2.1 - EL!G~{!i.,I?Z: !%~.RgiCIt:ATION
The ~-,~ord "cmi~ioyee" as used herein means any person in the reg,J.l~.r
f~ltime service of t.he City; providod~ howaver~ that such term shall not
include city com.~.ci33~en~ the city attornay~ judge~ prosecutor (and a ....... t~nts)
or any parson employed for a temporary period or for a t~?orary job~ or
,nose co.~gomar~ emp!oymen% ms for less ~han 20 ho~rs in ~ one week or for
leas %hzn five (5) months ~ say one calendar ~ear. ~so those firemen an4
policemen employed by the City ~;ho are partieipcnts in retirement plans as
provided for in Chapters 175 and 185 of the Florida State, res or other app!i-
cable State statutes shall not become participants ~ the plan. The pronooms
"he~" "hJ~n, and "his~ used in this plan~ sas)_ also refer to similar pro-
no~s of the feminine gender omless other~¢ise qualified by the context.
The date on which each such employee will. become a participant in
the plan shall be:
(A) January 1, 1971, for each' employee who was a participant in
the saperseded plan as of December 31~ 1970:
(B) January 1, 1971, for each other emsp!oyee who was not a
participant in the superseded ~tan but who has completed
one (1) year of credited service as of st~ch date; provided~
however~ a~y l~erson employed by the City after January
!965~ bmr prior to J~m~y 1, 1974 ~;hose attained age a%
his date of mnploymant ~.~as 60 years~ shall not become a
participant in the
(C)The date after g~mary 4 1971 as or w~ich each other employee
coz~koleted one (i) ye~ of oreo. it.d service~ ~''~
pro~mmed~ how-
ever~ tha~; any person employed by the City on
January 1~ 1971 who has attained the age of 60 ye,.rs as of
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the date of his ~ I ~ o~.~1 ~ ~'
e~.p_.oymen~ ....... not become a p~r~lcipant
in the plan.
Each such e~p!oyce who meets the eligibility requiren~cnts as set
fort}] above shall, as a condition of continued emplot~'nent, make contribubions
to the plan as required by Section 3.1 hereof, and shall beconase a participant
in the plan and %~ill be subject to all other provisions in the plan beginning~
on such date.
Any e.~nployee %'ho is absent from the active service of the City on
the effective date of the plan by reason of leave of absence granted by the
City~ or by reason of compulsory military service, %~ill become a participant
hereunder as of (a) or (b), whichev~er is later, -~here (a) is the date of his
return to active employ~nent and (b) is the date as of which he completes one
(1) year of credited service. ~.
Each participant %~ill be retired under the s)~stem and entitled to
a retire.~nent income upon retirement from service with the City by reason of
his age, subject to any minim%un] service re~:uirements herein. Each such parti-
cipant whose employment is terminated because of mental or physical disability
in accordance %~ith Section ~.4 zhs,ll be entitled to dise~i!ity benefits. Upon
the death of a participant, his beneficiaries will be entitled to death benefits
as prescribed in Section 4.5 hereof. Any participant whose service is terminated
for any reason other than retirement, disability, retirement or death will be
entitled to benefits upon termination of service as provided in Section h.5
hereof.
Section 2.2 - S]!~VICE
The term service means that period of continuous, uninterrupted
employment with the City from the eu~ployee's or participant's last date of
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emplo.~m_..o to the earlier of the date of termins, tion of his service and
his normal retirement date, as herein described. Any absence from the
]_~.~.~oed to absences by reason
active service of the City, including but not '~''
of discharge or resignation, which is not deemed a leave of absence as defined
in Section 2,3 hereof, wi].l'be considered a termination of service.
Section 2.3 - LEAVE OF ABSENCE
Absence from the active service of the City by reason of leave of
absence granted by the City because of illness or military service, or for
any other reason, will not terminate an employee's or participant's service
provided he returns to the active emplo~nnent of the City at or prior to the
expiration of his leave or, if not specified therein, within the period of
time which accords with the City's policy with respect to permitted absences.
If the employee or participant does not return to the active emplo~nnent of the
City at or prior 'to the expiration of his leave of absence as above defined,
his service will be considered terminated as of the date on which his leave
began; provided, however, that except for absence because of military service,
if such employee or participant is prevented from his timely return to the
active employment of the City because of his total and permanent disability or
his death, he shall, nevertheless, be entitled 6o any disability benefit as
proFided in Section 4.4 hereof or to any death benefit as provided in Section
415 hereof, whichever is applicable, as though he returned to active emplo~.nent
J. mmediately preceding the date of his total, and oermanent disability or his
death.
Absence from the active service_~f__~the City because of compulsory
engagement in military service will be considered a leave of absence granted by
the City and will not terminate the service of an employ.ce or a participant if
he returns to the active employment of the City '-:*~'-' ' '
,~,,~ the period of t-~me during
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which he has re-employment rights under any applicable Federal law or within
60 days from and after discharge or separation from such compulsory engagement
if no Federal law is applicable. No provision of this paragraph or in this plan
shall require re-employment of any employee or participant whose active service
with the City was terminated by reason of military service.
Ail participants under similar circumstance shall be treated alike
with regard to this Section.
Section ~.4 - CREDITED SERVICE
The credited service of each employee or participant will be the
total period of his service as defined in Section 2.2 hereof, computed in
completed months, from his last date of employment until his normal retirement
date or, if earlier, his date of actual retirement or termination of employ-
ment, except as provided in Section 2.1 and the following paragraph.
The period of any absence of 31 days or more will be excluded from
an employee's or a participant's credited service unless he receives regular
compensation from the City during such absence and except as otherwise provided
below. Any absence of 30 days or less ~ill be included. The first two years
o'f any absence after the effective date of the plan due to the employee's or
participant's engagement in military service will be included in his credited
service if such absence is covered by a leave of absence granted by the City
or is by reason of compulsory military service. An employee or a'participant
who was absent prior to the effective date of the plan because of his engagement
in military service will be credited for the full period of such absence if
such absence was covered by a leave of absence granted by the City or was by
reason of compulsory military service, provided such period would otherwise
have been included as credited service if the employee or participant had been
in the active service of the city.
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ARTICLE III
MIS£'.ELLA]~EOUS ?ROVISIONS REGA~!)I~'~G THE PI,AN
Section 3.1 - i~AI~TICIP/'~NT'S CONTRIEUTION ACCOUI'~T
%%~e "participant's contribution account" will consist of mandatory
participant contributions.
Each participant will contribute toward the cost of the system an
amount equal to 3~ of the first ~;~,800 of his basic ann~al compensation as
fined in Section h.!, and 6~{ of his basic annual compensation in excess of
$~ ,800.
Each participant shall continue to contribute to the system' until
the earliest to occur of the following dates:
(i) Date the participant retires under the plan.
(ii) Date of death of the participant.
(iii) Date of termination of the participant's.service with vhe City.
(iv) ~e participant's normal retirement date.
Anything in the plan to the contrary notwithstanding, the total
benefits pays~b!e under the plan to, or ~.zith 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 terminated participant (as defined in Section ~.5)
elects to withdraw his contributions prior to his normal retirement date, he
will be entitled only to the return of his contributions in lieu of all other
benefits payable under the plan. Contributions cannot be withdrawn while a
participant remains in the service of the City or after the pa~ent of benefits
under the plan has commenced.
Section 3.2 - CONTRIBUTIONS
The City ~ntends to ~ake such contributJ, ons as are required: together
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with contributions of participants, to maintain the trust fund established
for the purposes of the plan on a sound actuarial basis, as determined by the
actuary employed by thc City Council in accordance with Section 6.7 hercof.
Section 3.3 - EXPENSES OF ADMINISTRATION
~e City may pay' all expenses incurred in the administration of
the plan, including expenses and fees of the trustee, but it shall not be
obligated to do so, and any s~ch expenses and fees not so paid by the City
shall be paid from the trust fund.
Section 3.4 - CITY'S CONTRIBUTIONS IRREVOCABLE
The City shall have no right, title, or interest in the trust fund
or in any part thereof, and no contributions made thereto shall revert to the
City except such part of the trust fund, if.any, which remains therein after
the satisfaction of all liabilities to persons entitled to benefits under the
plan, as described in Section 7.5 hereof with respect to te~mination of the
plan.
Section 3.5 - 3%~'~ENDME~,]T OF PLAN
The plan may be amended by the City from time to time in any
respect whatever, by resolution of the City Council of Delray Beach, specify-
ing such ~mendment, subject only to the following limitations:
(A) Under no condition shall such a~.endment result in or
permit the return or repayment to the City of any
property held or acquired by the trustee hereunder
or the proceeds thereof or result in or permit the
distribution of any such property for the benefit
of anyone other than the participants and their
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beneficiaries or joint pensioners~ except, to
the e~[tent pro~.?idcd by Section 3-3 and Section
7.5 hereof %.:ith respect to expenses of admini-
stration and termination of the plan~ respectively.
(B) Under no condition shall such amcn~hnent change
the duties or responsibilities of the trustee
hereunder without ils ~ritten consent.
Subject to the foregoing tir~ita~.ions~ any amendment may be made
retroactively which~ in Lhe judjnen'~ of the retirement co~ittee~ is necessary
or advisable provided that such retroacLive amendment docs not deprive a ~arti-
cipant~ without his consent, of a right to receive benefits hereunder which
have already f~ly vested and matured~' in such participant~ except such modifi-
cation or amen~huent as shall be necessa~j 'to~ comply with any laws or reg'~lations
of the UDited States or of any state to qualify this as a tax-exempt plan and
trust.
Section 3.6 - TE~gNATION OF P~&N
5~ne plan may be ter~'~]inated by the City at any time by delivering to
the trustee in writing an ordinance of the City Cou~ncil of Delray Beach, duly
certified by an official of the Ci'ty~ specifying that (a) the plan is being
terminated or (b) contributions thereunder are being permanently discontinued.
The plan shall auLomatically terminate only upon adjudication by a court of
competent j~isdiction ~hat the City is bankrupt or insolvent (whether such
proceedings be voluntary or involu~tary)~ upon dissolution of the City or upon
its liquidation~ merger or Consolidation without provisions being made by its
successor: if any: for the continuation of the plan.
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BASIS~_ AHOUIiT~ AND t-'AY!.IEH'? OF RA~]2iEi.iE!~_~ Ii~CO~,~
Thc monoh].y retirement income oavab]e on retirement will be based
on the participant's final monthly compensation and on his credited service.
~e tem~ "final monthly compensation" means thc participant's average
monthly rate of compensation from the City for the 5 successive calendar years
out of the 10 calendar years next preceding the earlier of (i) the date on
which his service with the City te~z~inates for any reason~ a~d (ii) his normal
retirement date~ as hereinafter described~ which give the highest average
monit~y rate of compensation for the participant.
~e participant's average monib~y rate of compensation will be deter-
mined by dividing the total basic compensation received by hi~. during such 5
calendar-year period by the nmmber of months for which he received compensation
from the City in such 5 calendar-year period. The nmmber of months for which
he received compensation from the City will be computed~ to the extent he was
~id on other than a monthly basis~ by detect, thing the number of pay periods
ending within such 5 calendar years for which he received compensation from
the City¢ and converting such pay periods into months by dividing the mm~ber
thereof¢ if %~eel~y, by 4-!/3~ if bi-weekd.y¢ by 2-1/6~ and if sem/-montkly, by 2.
In computing "final monthly compensation" for a participant who has
ret~ned to 2he active service of the City following a leave of absence granted
by the City dua-ing which he did not receive regular com2;ensation from thc City¢
or roi!owing a period of disability retirement or termination of service with a
vested benefit~ as described in Sections 4.4(H) and 4.5(A)(3)
n~'eo~ ¢ respectively¢
the period during which he was on leave of absence, or during which he was on
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d~sability retirement, or during which his service was tcrlninated, shall be
ignored, or excluded, in determining the !O ca!encYst years preceding a subse-
quent date of termination of service or his date of early or norm.~l retirement.
The term "basic co~Fcnsation" ~cans the compensation actually paid
to s participant by t[~e City, e>:clusivc of commissions, bonuses, overtime pay,
expense allowances and all other e:~treordinary compensation.
Section /~,2 - NORMAL
Normal retirement under the plan is retirement from the service of
the City on~ or after, the normal retirement date. In such event~ payment of
retirement income will be gowerned by the following provisions of this section.
(A) Normal Retirement Date:
R'he nor~ml retirement date of each participant will be the
first day of the month coincident~with~ or next following the date he both
attains the age of 65 and completes 10 yeyrs of credited service; provided~
however~ that a participant may continae in the service of the City beyond his
normal retirement date with the consent of the City~ whic[~ consent, although
renewable~ will be for no longer than a year at a time. A participant -~ho meets
the requirements of this Section 4.2(A) shall be 10~ vested.
(B) Amount of Retirement Income:
The monthly amount of retirement income payable to a
participant who retires on his normal retirement date sha~ be the sum of (~)
~nd (b) where:
(~) is one-twelfth (1/12) of the annual retirement income
as of December 31~ 1970 which has accrued to the participant ~der
the provisions of the superseded plan; and
(~)
(~)
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monthly co-~
~zI ..nsation;
(ii) is 1-1/2~g (.015) of final ~onthly compensation
in excess of $400; and
(iii) is yeers and completed months of credited service
from January !, 1971 to the participant's normal
retirement date.
(2) To Particioant l~o Retires After Normal
~.e~ ........ ent Date
A participant ~.;ho retires after his normal retirement
date will, upon actual retirement, be entitled to receive a monthly retirement
income, or, if an optional form of payment is in effect pursuant to Section 4.6
belo~.~, a retirement benefit, the single-sum value of which, at his actual retire-
merit date, equals the s~ of (i) the single-sum value of the normal monthly re-
tirement income (computed as of his normal retirement date in accordance with
Section 4.2(B)(1) above) to which he was entitled on his normal retirement date,
and (ii) the snount of interest on such single-s~ in (i) above, where the
interest is compounded annually from the participant's no:~al retirement date
to his actual retirement date, and all computations are on the basis of the
interest and mortality assumptions used for the actuarial valuation coincident
with or next preceding his normal retirement dat~.
(C) P~a~ment of Retirement Income: The monthly retirement income
payable in the event of normal retirement will be payable on the first day of
each month. The first pasm~ent will be made on the participant's normal retire-
ment date (or on the first day of the month coincident with, or next following,
his actual retirement, if later) and the last payment will be the payment due
next preceding the retired participant's death.
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Section 4.3 - £ARLY }{E']'IR~.iMEt~T A!,]D R~;'I!IRE>L~;~T Ii'~CO~.~E
Early retirc~r, ent under the plan is retirement from the service of
the City, with the consent of the City, as of the first day of any month prior
to the participant's normal retirement date bt~t subsequent to the date as of
which he has both attained the age of 55 years and completed at least 15 years
of credited service. In the event of early retirement, pa)v.aent of retirement
income will be governed by the following, provisions of this section.
(A) Early Retirement Date: The early retirement date will be the
first day of the ~.~onth coincident with or next following the date a participant
retires from 'the service of the City under the provisions of this section
prior to his normal retirement datq~.
(B) Amount of Retirement Income: The monthly amount of retirement
income payable to a participant who retires prior to ]tis normal retirement date
under the provisions of this section shall k;e an amount equal t$ the stun of
(a) and (b) multiplied by (c) where:
(a) is one-twelfth (1/12) of the annual retirement income
as of December 31, 1970 which has accrued to the participant
under the provisions of the superseded plan; and
(b) is (i) plus (ii) multiplied by (iii) where:
(i) is 1~ (.010) of the first $400 of final
monthly compensation;
(ii) is 1-1/2% (.015) of final monthly compensation
in excess of $400; and
(iii) is years and completed months of credited
service from January 1, 1971 to the participant's
early retire~ent date; and
(c) is the applicable factor set forth in the Table of
Factors below:
TABLE OF FACTORS
Years Prior to h"or~'aal Retirement Age 65
Age of. Age of
Part i_c ~_~pant Years Factor Particioant Years Factor
55 10 .5000 60 5 .6667
5~ 9 .5333 61 h .7333
57 8 .5667 62 3 .8000
58 7 .6000 63 2 .8667
59 6 .6333 64 1 .9333
The factor to be used in (b) above will be based on the participant's
attained age, computed to the nearest .~nonth~ at his early retirement date; and
shall be computed by interoo!ation, if the age of the paritcipant so computed
is other than one of the whole ages shown above.
(C) Payment of Retirement Inco~e: The retirement income payable in
the event of early retirement will be payable on the first day of each month.
The first payment will be made on the participant's early retirement date and
the hast pa)m~ent will be 'the payment due next preceding the retired participant's
death.
Section 4.4 - DISABILITY RETIREMENT AND RETIRF~MENT INCOME
(A) Definition: A participant may retire from the service of the
City under the plan if he becomes totally and permanently disabled, as defined
in Paragraph (B) of this Ssction 4.4, on or after the effecti've date of the plan
but prior to his normal retirement date. Such retirement from the service of
the City shall herein be referred to as disability retirement.
(B) Total and Permanent Disabil~t~v_: A participant will be considered
'totally disabled if, in the opinion of the retirement co~mnittee, he is wholly
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prcventc~l £ro::. enLaCfn~ in an)- occui3a%ion for %mL~c or !~rofi%3 [~nd a i~a~t!c~pant
%,~il! be considcrcC% !oc~anently disabled lf~ in the oi~inion of the retirc~I~n%
co]~iZ%cc~ such particip~3~nt is ~ikel~ %o re~3~ain so ~!is~d~lef~ continuously,' and
pcr~:ancntly f~om ~ cause o~hcr th~n s!~ccifia~i in ?ar'a~raph (C) of this Section ~.~.
(C) },]onad~mi. ssible Causes of Disaioi~lity: A participant ~.~ili not be
entitled %o reccivc any (tisabitiLb~ retirement income if~ in the opinion of the
retirement ' ' ~-~
coi:~:u~uoce~ the disabili~ is a resul~ of:
(i) )~ccssive an(1 habiLual use by thc pa~-tici?snt of
drugs~ intoxicants or
In~ur~ or ~lisease sustained by %he ?ar%icipan6
while wi].tf~].~' and i].le~all~~ participating
in fights~ riots{ civil insurrections or
%.~hile co:~m~ittf_n~ a felon~;
(3) Injury or disease sustained b>~ the particiI~ant
%zhile servin~ in any armecl forces3
Injum~y or disease sustained by the ~articipant
diagnosed or discoverect subse~f~en't to the date
his emplot~uent has tern%ina-ted;
(~) Injury or disease sus'taincd by the paz'4icii~ant
while %,lorking for anyone other than the City~
and arising out of such enA~lo~%en%~ or
(6) Inj~u'y or disease sustained by the participant
as a res~t of an act of ~.zar~ ~.~hether or not
such act arises from a formally declared state
of
(D) ~oof of Disability: The retirement co~]i-htce~ before ap?roving
the pa~u:~en% of any disability retirement income~ shall require satisfactory _
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l18-X
proof, in the form of a certificate from a duly licensed physician selected
by the retirement committee, that the participant has become disabled as pro-
vided herein. Evenly six ~aonths after commencement of disability retirement
income, or more frequently, the retirement co:r~mittee may similarly require proof
of the continued disability of the participant.
(E) Disab~!ity Retirement Income: The benefit payable to a par-
ticipant who retires from 1]he service of the City due to total and permanent
disability is the monthly retirement income, determined actuarially, payable
for 10 years certain and life thereafter, which can be provided by (a) or (b),
whichever is greater, where (a) is the single-s~m value (computed as of the
participant's date of termination of service due to disability) of his deferred
monthly retirement income beginning at his normal retirement date which has
accrued to the date of te~.nination of his service due to disability, and (b)
is ].2 times his rate of basic monthly compensation as of the January 1st which
is coincident with, or i~nediate!y precedes, the date of te~m~ination of his
service due to disability. The monthly amount computed using (b) above
shall not exceed 60~ of the participant's anticipated monthly retirement
income commencing at normal retirement date. The ~mount of such accrued
deferred monthly retirement income shall be computed as for normal retirement
under Section 4.2(B)(1), based on the participant's n'~mber of years of credited
service and final monthly compensation at the date of termination of his service
due to disability. The amount of anticipated monthly retirement income com-
mencing at no~al retirement date above shall be computed as for normal re-
tirement under Section 4.2(B)(1), based on his anticipated n~mber of years of
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~-h
credited service at bis normal retirement date and his final monthly compen-
sation at the date of ter~.~ination of hms service due to disability.
participant's ~anticipated n~er of yemrs of credited service at his nor~al
retirement date shall be determined in oceordance with Section 2.4 hereof,
based on the assumption that his employment with the City would have
continued uninterrupted from his date of termination of his service due to
disability to his nor.real retirement date.
(F) Payment of DisebititM Retirement income: The monthly re-
tire~:ent income to which a participant is entitled in the event of his
disability retire~ent will be pa?s?ole on the f~rs ~ day each month.
first payment will be made on the first'day of the month coincident with,
or next following, the l~_te_ to occur of (a) the date on which the disabi
has existed for six months or (b) the date as of which application is ~,~ade
in writing by the participant for the payment of such retirement income.
The last payment will be either (i), if the participant recovers from
the disability prior to his normal retirement date, the payment due next
preceding the date of such recovery or (ii), .if the partzcmp~no dies
without recoverin~ from his disability or attains his normal retirement
date while still disabled, the 120th pa~nnent or the pa~aent d~e next
preceding his death, whichever is later,. Any monthly retirement income
psyments due after the death of a disabled participant shall be paid to
the participant's designated beneficiary (or beneficiaries) as provided
in Sections 5.2 e~nd 5.3.
l18-Z
a participant who is receiving a disability retired, lent income is, at s, ny time
prior to his normal retir¢_~ent date~ no !o~ger disabled, as provided he.rein~
the retirement committee sha.Ll direct that the retJa'e~ent inco~e be discontinued.
Recovery from disability as used horein sha]_], mean the ability of the participant
who recovers from disability and ~..~hose retirement income is discontinued by the
retirement committee and who~ as of the date of terra,ma. Sion of his service du_e
to disability~ had both attained the age of 55 years and completed at least 1~
years of credited se~vice shall, if he does not re-enter the service of the City
be entitled to the early retirement income or the Yested deferred retirement
income as provided in Section 4.3 and 4.5(A)~ hereof as of the date of termination
of his sea-vice due 'to disability and upon his attained age as of the date of his
recovery from disability, but early retirement will be subjedt to consent of the
City and the amount of the retirement income upon early retirement will be actu-
arially reduced to take into account the p~.rticipant's younger age and the earlier
commencement of retirement income payments as provided in Section 4.3 hereof.
(I{) Re-employment b~ the Cit~: If the participant recovers from
disability and re-enters the service of the City, his service will be deemed
to have been continuous, but the period begi~u~ing with the first month for
which he received a disability retiremont income paymont and ending with the
118-AA
date he re-entered the service of tike City ,.gill not be considered as credited
service for the purposes of thc plan.
(A) I~cnafit on Termination of Sar/ica and on Death After Tar'mi-
(1} In ~he event of the termination of a p~rticipant~s service
prior to his non~ia! retirement date for any reason other than his death~ early
retirement with the consent of the City as described in Section 4.3. hereof~
or disability retirement as described in Section 4.4 hereof~ after he bas both
attained the age of 55 years and completed !5 years of credited service (such
participant is hereinafter referred to as a "terminated parhicipant")~ he ~.~ill
be entitled to a monthly retirement income to conm~ence on his normal retirement
date~ if he shall then be living~ in'an amo~mt which can be provided by the
single-sum value of his deferred monthly retirement incorae beginning at t~s
normal retirement date which has accrued to the date of termination of his
service~ accumulated at interest from the date of ter~inalion of his service
to his non~%al retirement date. ~e amount of such accrued deferred monthly
retirement income shall be co:%~uted as for nominal retirement under Section 4.2
(B)(1)~ based upon the terminated participant's mm,bar of years of credited
service and final monthls compensation at the date of ten, nation of his service.
(2) In %ha event a terminated participant dies prior to the
aoE~nencemen't of his retirement income at his normal retirement date (withou~
having raaeived~ in accordance with Section 4.l~ the ~a!ue of ~he benefit in
monthly re%iremen~ inCome~ payable for l0 sears certain and life thereaS~eP and
beginning on ~ha date of the participant's death; w~.ah can be provided by the
singla-sul~ value of tho participant's accrued deferred monthly Fetiremen~ income
4- k 118-BB
as of the date of ter~dnation of the !~articit~ant's ser~ice~ acc~m~lated at
m~o~ from the date of te~nination of the p~rticipant's service to the ~]ate
(3) If a participant's service with the City is terminated
~..~lc he is e~o~led to z~etirement inco,~e described Jn Section 4.5(A)(1)
above and he subsequently re-enters the se~'wice of the Ci4y~ he ~-gll be entitled~
u]~on such re-on~ry, to the credited service he had on the date of te~n~natio~ of
his service in lieu of thc benefits to ~hich he was entitled on such date under
to such participant cor~m~encing at normal retirement date shall not be less than
the amount to wtich he ~;as entitled under Section 4.5(A)(1) prior to his re-entry
in'~o the service of the City. ~cept as t~rovided in Scct3on 4.4 hereof with
respect to omsab~._.mty retire~ent~ any other-participant will~ on re-ent~ into
the service of tho City (~mless he has been on leave of absence pursuant to ~he
provisions of Section 2.3 hercof)~ be treated as if he then ~irst entered the
service of the City.
(4) The provisions of Section 4.6 hereof relating to optional
fo~s of reomre.~e..t incense are applicable to the benefits provided under Section
(5) ~cept as provided in Section 4.2 with respect to normal
retiremont~ Section 4.4 wi~h respect to disability re~irer~ent and Section 4.5
with respect to death~ the participant whose service is te~inated prior to
the date as of which he has both attained t~e age of 55 years and completed
at least !5 years of credited service shall be entitled only to the reEurn of
his contributions.
118-CC
(B) Zenefit Payable in the Event of Death on or Prior
(i) If the service of a participant is teI~minatcd by reason
of his death, on, or prior to, his normal retirement date, there shall be pay-
able to the participant's designated beneficiary (or beneficiaries) the monthly
retire~ent inco::~e, beginning on the first day of the month coincident with or
next following the date of his death, which can be provided by (a) or (b),
whichever 'is greater, where (.a) is the single-sum value of his accrued deferred
monthly retirement i~.come commencing at his normal retirement date which had
accrued to the date of his death, Where this single-sum value will be calculated
in a manner similar to the way the reserve is accumulated under a typical retire-
ment income contract, (b) is (i) or (ii), whichever is smaller, where (i) is
12 times his rate of basic monthly 'compensation as of the January !st which is
coincident with, or i~r~ediately precedes, his date of death, and (ii) is 100
times the participant's anticipated monthly retirement incor]e co~p~.encing at
normal retirement date. The amount of such accrued deferred monthly retire-
ment income shall be computed as for normal retirement under Section 4.2(B)(1),
based upon the participant's number of years of credited service and final
monthly compensation at the date of his death. The e~.~.ount of anticipated
monthly retirement income con~mencing at normal retireraent date in (b)(ii) above
shall be computed as for normal retirement under Section 4.2(B)(1), based on
his anticipated munber of years of credited service at his normal retirement
date and his projected final monthly compensation at normal retirement date.
The participant's antieipa'ted number of years of credited service .at his
normal retirement date shall be determined in accordance with Section 1.4 here-
of, based on the asst~aption that his employment with the City would have con-
tinued uninterrupted from his date of death to his normal retirement date. The
participant's projected final monthly compensation at his normal retirement -
date shall be determined as of the participant's normal retirement date,
based on the assu~:ption that the participant's rate of monthly basic c~mpcnsa-
tion as of his d'atc of death would have continued, without change, to his
normal retirement date.
(2) Except as provided in Section 4.5(B)(3) below, the
monthly retirement income payments under this Section h.2(B) shall be payable
for the life of the beneficiary (or beneficiaries) designated or selected
nnder Section 5.2 to receive such benefit, and, in the ever~t of such benefi~
ciary's death within a period of 10 years after the participant's death~ the
same monthly amount shall be payable for the balance of such 10-year period in
the manner and subject to the provisions of Section 5.3.
(3) In lieu of the benefits payable in Section 4.2(B) (2)
above, the single-s~m value of such benefits may be paid to the participant's
designated beneficiary (or beneficiaries) in such other manner and form as the
particioant may elect and the retirement committee may approve, or, in the
event no election is made by the participant prior to his ~eath, as the bene-
ficiary may elect and the retirement co~Lmittee may approve.
(C) Benefit Payable in Event of Death ~.~ile
In Service After Normal Retirement Date
(1) If the service of a participant is terminated b~{ reason
of his death after his normal 'retirement date, there shall be payable to the
participant's designated beneficiary (or beneficiaries), the monthly retirement
income, determined actuarially, beginning on the first day of the month coincident
with, or next following, the date of his death, which can be provided by the sum
of (a) the single-sum value of the normal retirement income (computed as of the
participant's normal retirement date) to which he was entitled on his normal
retirement date, and (b) the ~ount of interest on such single-st~ value in (a)
above, where the interest shall be compounded annua].ly from the participant's
118-EE 4- n
normal retirement date to the date of his death, and all computations shall
be on the basis of the interest and mortality assumptions used for the
actuarial valuation coincident with or next preccdi~g his no~nal retire-
ment date.
(2) Except as provided in Section 4.5(C)(3) below, the
monthly retirement income payments under this Section 1~.5(C) shall be payable
for the life of the beneficiary (or beneficiaries) designated or selected
under Section ~.2 to receive such benefit, and, in the event of such benefi-
ciary's death within a period of 10 years after the participant's death, the
same monthly amount shall be payable for the remainder of such 10-year period
in the manner and S~Foject to the provisions of Section 5.3.
(3) In lieu of 'the benefits payable in Section 4.5(C)(2)
above, the single-s~uu value of such bene-~its may be paid to the participant's
designated beneficiary (or beneficiaries) in such other manner and form as the
participant may elect and the retirement committee may approve, or, in the eve:t
no election is made by the participant prior to his death, as the beneficiary
(or beneficiaries) may elect and the retirement committee may approve.
Section 4.6 - OPTIONAL FORMS OF RETIREMENT INCOME
In lieu of the amount and form of retirement income payable in the
e~ent of normal retirement, early retirement, or termination of service as
specified in Sections 4.2, 4.3 and 4.5(A) hereof, a participant, or a terminat~e~
participant as defined in Section 4.5(A) hereof, upon written request to the
retirement cormmittee and submission of evidence of good health (except that
such evidence will not be required if such request is made at least three years
orior to the date of commencement of retirement income - or by the first day of
the si'xtl~ month following the date as of which the formal announcement of the
olan is made to the employees of the City, if on January !, 1971, less than
ll8-FF
three years remain p~'ior to the particit~ant's ~nticipated retirement date)
and subject to the approval of the retirement co~mittee, m~y elect to rccciwe
a retirement income or b~-nefit co~.~mencing on the date specified in Sections 4.2,
4.3~ or 4.5(A)~ which~,vo.).' is a~pJ. icab!e~ of cqui%'alcnt actuarial value payable in
accordance %~ith one of the followingopulons:
~tion 1: A rctirc~ent inco~ne of a lesser month3~
payable to the partici!>snt for his lifetime, ex-
cept that in. the extent the ~' '
~ar~cmpan,~ dies before
he has ~cceived ~-'~ '~ ~
re~kze::~n~ benefits for a p~._od
of !0 years, the same month3~ benefit will be paid
to the beneficiary desi~ated by the participant for
the balance of the lO..year period.
~ion~: A retirement income of s modified monthly amount,
payable to the partlcipan{ during the joint life-
time of the participant and a joint pensioner
designated by him, and following the death of either
of them, 2/3 of such monthly amom~t payable to the
sum-river for the lifet~,ie of the survivor, The joint
pensioner designated by a participant in accordance
with this Option wha!l be either. (a) the spouse of
such participant or (b) al~ other person. The raonthly
income payable ~der this Option to the participant and
a joint pensioner desiD!ated under (b) above, sha~ not
be less than the monthly income that would be pa~ble
under a pa~aents certain to age 85. years and 3ifc there-
after form.
i'eul~ e,~ pay~nents or
~tion 3: Such other ~ount and form of .... - ....
benefits as~ in the opinion of the retirement committee,
will best meet the circmnstances of the pmrticipsnt
wided~ howewer, that if such form is other than a joint
llS-GG ~-p
$.nd survivor form of retirement payments or benefits,
the monthly inco~e payable to a Darticipant under such
form shall no't be less than the ~.~on'thly income that
would be payable under a payments certain to age 85
years and life thereafter form.
The Participant upon electing any option of this section will
designate the joint pensioner or beneficiary (or beneficiaries) to receive
the benefit, if any, payable under the plan in the event of his death and
will have the power to change such designation fromm time to time, but any
~ ~ election and will be subject to approval
such change shall be ae~.a~d to new
by the ret].rement comnittee. Such designation will name a joint pensioner
or one or more prir:ary beneficiaries where applicable. If a participant has
elected an option with a joint pensioner or beneficiary (oP beneficiaries)
and his retirement income benefits have commenced, he may thereafter change
his designated joint pensioner or beneficiary (or beneficiaries) but only
if the retirement committee consents to such change and, in the case where
the designation to be changed is one involving a joint pensioner, if the
Joint pensioner last previously designated by him is alive when he files
with the retirement co~mittee his request for such change. The consent of a
participant's joint pensioner or beneficiary (or beneficiaries) to any such
change shall not be required. The retirement co~aittee may request such
evidence of the good health of the joint pensioner that is being removed as
it may require, and the ~ount of retirement income payable to the participant
upon t%~e designation of a new joint pensioner shall be actuarially redetermined,
taking into account the age and sex of the former joint ~ensioner, the new
joint pensioner and the participant. Each such designation will be made in
l~ - q 118 -HH
writin~ on a form preparcd by the retirer~cnt co~ittee. In the event that
no designated beneficiary survives the participant, such benefits as are
payable in the event of the death of the p~rticii~ant subsequent to his
tire~,~ent shall be paid as provided in gect~ion 5.2 hereof.
Retirement ~nco~e pay~ents will be r~ade under the o~tion elected
in accordance with the provisions of this section ~,nd will be subject to the
follo~.~ing limitations:
(A) If a participant dies prior to his retire~ncnt under the plan,
or if a terminated participant dies pr~or to the co~]r~encement of his payments
at his normal retirement date, no benefit will be payable under the option
to any person, but benefits will b~ payable as provided ~n Section 4.5 hereof.
(B) If the designated beneficiary (or beneficiaries) or joint
pensioner does before the participant's retirement under the olan or subsequent
to a terminated participant's date of termination of service but pre. or to
his normal retirement date, the~option elected will be cancelled auto~atieally
and a retirement income of the normal fo~m~ and s~nount will be payable to the
participant upon his retirement or to the terminated participant at his
normal retirement date as if the election had not been made, unless a new
election is made in accordance ~ith the provisions of this section or unless
a new beneficiary (or beneficiaries) or .joint pensioner is designated by
the participant prior to his retirement or by the terminated participant
prior to his normal retirement date and within 90 days after the death of
the prior beneficiary (or beneficiaries) or joint pensioner..
118-Ii
(C) If both %he partici!mP.% and the bcne_{'icia:-y (or beneficiaries)
designated by bin die after %he dale that the parl, icipan%'s i'ctircmcnt inco~e
cormtences under 'the plan l_~a~ before the full pay~nent has be,an u~._~c~ed under
any op~sien providing for p?.yments for a period certain and life thereafi, cr~
ma~, pursuant %o the provisions of Option 3~ thc i'etircnien% comlnittee may~ in
its discretion~ direct that the caricatured value of 'the~'~'~'e~a~_n_ne ~ ~ '~ parchments, be
paid in a !tamp sum and in accordance ~,~ith Section ~.3 hereof.
Section 4.7 - LU!.P-Sb].~ PAYi,Ii}iNT OF S~&ILL NET!RE~,O~Yf iNCO}.5"]
NoiR.~iths~.andin6 any pro'vision of the plan to the contrar3r~ if the
~'aon%hly retirement income payaulu to any person entitled te any ' ~'~
under is less 'than Si0 as of the date of his retirement or termination of
service, whichever is applicable, thg retirement committee may~ in the
exercise of its discretion~ specify that the actuarial equivalent of such
retirement income be paid in a lump sum or in monthly installments for a
period certain of not more than 60 months, such actuarial eqgivalent to be
based upon the mortality and interest assumptions used as a basis for the last
preceding ~aluation of the plan.
Section 4.8- LL,,~if...~.IOn'~ ' "~ :" 0N PAYI,~NT OF Rr~.r"'IR~.~xl~n~.~'~-~ ~'~"'~
Notwithstanding the Fact that the monthly retirement income is payable
for life; if any person receiving a monthly retirement income shotuld receive or
become entitled to receive any compensation for personal services currently per-
fo~.,~d '~dar substantially i'll ~-'"' _
~' ~_~,e continuous em~olo~,ent by %he City of Delray
at the regular compensation~ the monthly retirement income sha].l cease during
the period for which such compensation is payable. ~ '" '
ouch monthly retirement income
shal!~ however~ be rest~aed asain at the s~.e rate ~.~hen such compensation there-
after ceases to be payable. _
1~ -s ll8-JJ
Section 4.9 - TEI-[!.~!}ATtOi} OF SEidViCE FOR
If a p~.~.~cmn~no's service is ~c~:_~lna~ed because ofal''~'n~rk~k.~'~-~ cond~.~,:t
injurious to qbe City~ or if dishonest conduc, t inj'.e-ious to %he City co:m'~ittcd
by a !~rticipant is deter~nined by the City during thc lifetime of the
but within one year after his service with thc City is terminated or within
year after his retirement under the p!an~ the retirement conr~ttee~ upon notice
from the City Council of De!ray Beach, may terminated such a participant's inter,.
and benefits under the plan and trust f~knd.
?ne dishonest conduct injurious to the City co~m~itted by a participant
shall be dctcn~kined and decided b~~ the retirement corurittee only after a f%~l
investigation of such alleged dishonest conduct and an opport~ity has been
given the participant to appear beforg the retirement co~%mittee to present his
case. The decision made by the retirement cqnmnittce in such cases shall be
final and binding in ~_! participants or other eersons ~,~.ec~ea by such decision.
Section 4.10 - FN,;DiNG 0F Bi~'{NPiTS THROUGH PURC~;~SE 0F LINE iNSUi%;d~CE
OR C ONTPU~CTS
In lieu of paying benefits from the trust fu~d to a participant or his
beneficiary~ upon direction of the retirement coF~mittee~ with specific prior
aughorization by the City~ the trustee shall purchase~ with funds in the trust~
an individual retirement income or retirement ann~ty contract from an ins~-ance
company which~ as far as possib!e~ provides benefits equal to (or actuarially ·
e%uiva!ent to) those provided in the plan for such participant or beneficial,
whereupon such contract shall thereafter govern the pa}~ent of the ~.o~t of-
bencfit~ if any~ represented by such contract which is payable under the plan
upon the participant's normal retireNent~ early retirement~ death~ or termination
of scrvice~ and the liability of the trust fund and of the plan will cease and
%end,hate with respect to such benefits that are purchased and fop which the
ll8-KK ~-t
premiums are duly .paid. Such ~ndividual retirement income or retirer~ent
annuity contract n~ty be purchased by the trustee on a single-prc~'~ium basis
or on the basis of annual pre~i~]s payable over a period of years~ as directed
by the retire?:ent committee and as a~rced upon by the insurance company; and such
individual ~eo.zr .... ant income pr retirc~ncnt annuity contract may be ourchased,
as directed by the retirement cor~nittee, at any ~"'~:~e, on,. or after, the
participant's date of retirement to provide the benefits due under the plan to
the participant or his beneficiary, on, or after, the date of such purchase.
With specific prior authorizaticn by the City, the retirement'
cormnittce may direat the trustee to enter fnto a contract or contracts with one
or more life insurance companies for the purchase of retirement annuities, five-
year renewable term life insurance, one-year renewable term life insurance or
other form of life insurance or other benefi, ts, on an individual or group basis,
in such manner and in such form as ~nay be dee~r~ed appropriate by the retirement
co~mittee, as provided for in the plan, and further provided the insurance
benefit will be no greater than one hundred (100) times the participant's
anticipated monthly retirement income co~nencing at normal retirer~:ent date. The
s~ount of such anticipated monthly retirement income co~tencing at not,hal retire-
ment date shall be computed as for normal retirement in Section 4.2(B)(1).
The participant's projected final, monthly compensation at normal
retirement date shall be determined in accordance with Section 4,1 hereof, and
shall be determined as of the participant's normal retirement date, based on
the assumption that the participant's rate of monthly compensation as of his
date of death had been continued without change to his normal retirement date.
ll8-LL
Specifically, sucil rctJ. rcment a~]nuities and other benefits as ~i~O, be provided
for ~i the plan may be purchased under one o!~ more deposit adzcinistration type
g:coup annaity contracts.
~.~,~,~.nce company ~,~bich ~y issue any con~ract upon the app].ication
of the tzo. stee sho~ be >.'eqaired to toke or permit any action contraz, y to the
C0t15~8. C ~;
provisions of such ' ~ be bout!d to a]_~ow shy benefit or privilege
any pc~-son interested in any co~]tract it has issucd %:hich is not p~-ovided in
such contract; o~' be deemed to .be a pa~-ty to this plan for ant~ p'~pose; or
responsible for the validity of this plan; or be required to look into the terms
of this plan; el- question any act of the retirsment committee or the trustee
hereunder; or be l'equired to see that any action of the trustee is authorized by
this plan. Any such issuin[~ company shall be fu.],~ discharged from any
liability for a~'~ amount paid to the ~trustee; o~- in accel-dance with its direction;
and no issuing compmny shall be obligated to-see to the application of any monies
so paid. by it. Any such issuing company shall be fury protected in taking
pel~mitting am.y action on the faith of any instru3nent executed by the trustee in
its name as trustee~ and shall inc~ no liability for so doing.
Upon %e)~mi~,tion of cmplo~en%~ a participant may receive the l-etil-e-.
men't income and/or am~uity policies ~d~ich are being
pua-c~,ased for h~a at the
date of his te~mination~ in lJ.e~% of a~ othe:c benefit ~.zhich he
%o receive, uDon payment %o the trustee of the difference bet%,~een the cash valme
amounu that the pa~'ticiuant is entitled to l-eceived as
of the policies and the ~ ~ _
a benefit upon termination of his service.
Section 4.11 - FORfeITURES A]~ D~IDEI~S
ForfeitLu'es shall not be used to incl'ease the benefits that any em-
ployee %~ou~d otherwise receiwe under the plan at any time prio~~ to the termination
of the plan or the complete discontinuance of contrJ.'bmtions to the plan but shall
be antici~ted in determining the
~ cosuo under the plan, L~;.e'~J.se any diwidends
~der any contract issued in accordance %.~ith Section ~,10 shall not be used to
ll8-MM
increase the benefits that any em?!oyee would otherwise receive und~..~r the plan
but shall bo anticipated in dcte:-mining the costs under thc plan.
Section ~.12 -
The term '~emp!oyee" as used in %his Section ~.!2 shall include
all e~holo~ees of the City %,~ho are particiioants in the plan on tlm effective
date prod all oth~r employees ~n the service of the City who m~y later become
participants ~] the plan.
~{ot~:ithstanding any provision of any other section of the plan
to the contrary~ the amomnt of City contributions ~;bich nay be used to provide
benefits for any pa~ticipant within the app.!icable g~oup of the 25 highest-
paid employees ~'hose monthly retirement income ~pon normal retirement would
exceed $3.2~.00~ shall not exceed an amou~nt which is equal in value to (or which
is actuariatly equivalent to) the largest of the following amounts:
(!) The an~DmD, t of City contribu, tions %~bich would have been
applied to provide the benefits for such parJicipant if the supe~seded plan,
as in effect on December 31, 1~0 had been continued without change;
(3) The stun of:
(a) The amount of City contributions which would have
been applied to provide the benefits accrued to the participant
under' the superseded p~n on December 31, 1970; and
(b) An amount computed by nu~tiplying the nu3aber of years
e~psed since January 1~ 1965 f0~- ~.~hich the f~_l cu,-rent costs
of the t~!aa have been met by the s~a]_!er of the following amounts:
(i) $ .0 oo0;
(ii) An amoua~t equal to 2~ of the participant's average
4 - w 118 -NN
regular annu~:l compensation received fro?n the City
for the five years ~m. Tnodiate!y precedin~ the date
of such deter.mination or, if earlier, the date of
termination of service of a terminated participant,
.the date of retire~.~ent of a oarticipant who }]as
retired prior to his norms! retire~,]ent date or the
nor]ual ret.~re~ent date of a participant who
attained his normal retire:~ent age whether or not
he has retired under the plan.
Provided, ho~..?ever, if the full current costs are not met at the end of the 10-year
period that next follows the effective date of the plan, the above restrictions
will continue to appl.v until the full current costs are funded for the first time.
The foregoin~ conditions will not restrict tn_ ~s,$c~ent of the f~l!
benefits to a beneficiary after the death of a participant whose benefits are
subject to the provisions of this Section 4.12, if, at the time of such death, the
plan is in full effect and the full current costs thereof have been met.
The provisions of this Section 4.12 will not apply to the retirement
income payable in the normal form or under any opt~ona! form which does not provide
a larger monthly income than the normal form to any participant retiring or re-
Ceiling benefits during any period in 'which the plan is in full effect and the
full current costs thereof have been met.
The limitations will not apply to the payment of any survivorship
income with respect to any deceased participant or retired participant who dies
prior to the termination of the plan and while the full current costs thereof
have been
In the event of the termination of the plan-%.~hile the ].mm~oations
of this Section 4.12 are in effect, that portion of the assets of the trust fund
118-00 )~ - '~
arising, from contributions m[~de by the City with re,:peet to %.hose participants
to whom the !)rovisions of this Section ]~.12 are [~pp].iczd~le w]~]ich is in e>~cess
of the foregoing, limi%[~'~ions will be apportioned to the other pear%lc[pants,
inc.].uding retired po°.rticip,.'~.ts, in e. ccord, c~.nce wigh the provi,~ions con~.ined in
Section Y.5 hereof.
ll8-PP
~ar~z~.p~.n~ ?~i!l fumnish to the retirer,~ent col, zn_~toce such infof
marion as the retirement co::z::ittee considers necessary or desi. rable for the
p~'pose of a~s.u.n~st~z~n~''-" ~ ~ '{ ~ thc plan and the ,nz'ovisions of the plan respecting
any- na}~nents, thereunder are co:iditional upon the paz .... o~c._p~.n~i ~ ~-'s furnishing
promp~lo, such true~ fu!]. and comp.aev~ information as the retirement committee
may request,
Finch participant ~.:il! submit proof of his age (and~ in the case of
his election of Ontion~ . 2 or Option 3 puzsuan~ to the provisions of o~ ~..
hereof~ proof of the age of the joint pensioner selected by him) to the retire-
c o~,~.~ t ~ee. The
ment con~t'tce at such time as required by the retirement ~' ~
retf. remen% cor~mit~ee %.;i11~ if such prcof of age is not s~mitted as req~red~
u~e as conclusive evidence thereof~ ~ucn infonuation as is deemed o~, it to be
relf_ab!e~ regardless of the sourc~ of such info~.ation. Any adjustment required
by reason of lack of proof or misstatement of the age of persons entitled to
benefits hercumder~ by the participan~ or other%~ise.~ will be in such manner as
the retirement con~mittee deems equitable.
Any notice or information ~hich~ accoramn~ to the te~s of the plan
or ~he r'~es of the retirement co~ittee~ must be filed with ~he retirement
co~uittee shall be deemed so filed if addressed and either delivered in person
or mailed to the retire]~]en% coz[u~ttee~ in care of City of Delray Beach, Delray
Beach: Florida.
Section 5.2- B~'~]~ZCIARIES
Fnch participemt may~ on a form provided for that purpose: signed and
118
· .c~.~.~._n~ co~.::u[ttco~ designate a bencfic.~ry (or beneficia~'ic.j~
to receive the bcncfit~ if.any~ which ;nay be payable, in thc event of his c~ ..... ~t~:.
pursuant to the provisions of Section ~;.2~ 4 3, 4.4~ or 4.~ he. coz: and each-
dcs2gnation :nay be revoked by such pal'b~.Clp~,hV by si~ning and filing with the
retirement cont~ittee a new designation of beneficiarx form. If a ~tcccasc~
pa.~kcx~.nt failed to name a beneficiary in the maimer above prescribed or if
the beneficiary (or beneficiaries) na~ncd by a deceased partl '-~ ~
c~n ~ l~rcdeceases
the partici-oant~ the death ' ~ ~'~ , '
. oune~ if any~ which may be ~ayable ~de~' the
%~i'th respect to such deceased ~rticipant may be iJaid~ in theo.~oc~c~on"~ ' =~ of tm~
retirement co]ru~ittec~ either to (a) any one or more of the persons comprising
the group consisting of the varticipant's s~ouse~ the participant's
Da~lc~.n~. parents~ or the participant's hcirs-at-law~ and the retircme~:s
core, tree may ~y the entire benefit to any member of such group om apportion
such bc.~u~m~ ~nong any two or more of them in such shares as the ~ ='
. e ~_remen ~
co~ttee: in ~ts so~.e discretion~ shall, determine~ or (b) the ....
eo~a~= of s~ch
deceased ~rticilm. nt3 provided~ however~ that in any ofsuch .... eases the
co~.~:=~eu: in its discretion~ may direct thst the commuted value of ~ne ~e~. ~n~.~:~
monthly income pay%~ents be paid in a !~mlp s~am. Any payment made to any person
p~suan'c to the power and Aiscretion conferre~ uuon the uetirement ~'-~ ~
the provisions of %his Section ~.2 shall operate as a ~mple%e discharce of
ooll~=~ons ~]der the plan with respect to such deceased ·participant and sba!!
not b~ subSect to review by anyone but shall be final~ bindi~ and conclusive
all persons ever interestea hereunder.
In the event of the death of a beneficiary who s~vives the particip~
and who~ al the beneficiary's death~ is receiving benefits under Sections ~[.2.~
... ~ or 4.~6 hereof , ~-~' ~' ].O-~ear (or other) period with respect to
lt8-RR
death benefits are payable under thc plan after thc participant's deaLh~ the
~nc~,.?.~ which .~ne beneficiary was receiving
same amount of monthly ret;[foment ~' ~"~'~ ~-'
shall be payable for the remainder of such 10--yc~ar (or other) 'period to a
person designated by the participant to receive the remainin6 death Lcuefits~ i.f
any~ payable in the event of such contingency or~ if no person was so named,
ti[eh to a person designated by the beneficiary of thc deceased participant to
receive the remaining death benefits~ if any~ payable in the Svent of such
contingency; provided~ however~ that if no person so designated be living upon
the occ~k~rence of such contin[~ency~ Zhen the remaining death banefiqs~ if any,
shall be payable for the remainder of such applicable 10-year (or other) period~
in the discretion of the ~'~-'-~'~ Shy
co:.~ .... ~bee~ e~tner to (a) all or one or
more of the persons comprising the group consisting of the participant's spouse~
the beneficiary's spouse~ the participant's descendants~ the beneficiary's
descendants~ the participant's parents~ the beneficiary's parents~ the partici-
pant's heirs-a2-iaw~ or the beneficiary's heirs-at-law or (b) the estate of such
deceased beneficiary; provided further~ that in any of such cases the retirement
committee may: in its discretions' direct that the corm?~ted value of the monthly
retirement income payments due for the remainder of the applicable 10-year
(or other) period be paid in a l%m~p s~. Any payments made to any person pursuant
to the power and discretion conferred upon the retirement com~ittee by the pro-
visions of this Section 5.3 shall operate as a complete discharge of ail obligations
~der the plan with respect to such deceased beneficiary and shall not be st~bject
to review by anyone but shall be fina].~ binding and conclusive on all persons
ever interested here~mder.
Section 5.4 - PARTICIPA~?f'S RIG}iTS iN TRUST FUND
No participant or other person shall have any interest in or any right
~.n, to or under the 'trust fund~ or any part of the assets'-thereof~ except as and
5-d
118-SS
to the c:..;%ent c×'~,resslv i. rcvided in thc ~i~
No ber,,:~s~ rJ. ghts or aacounts o]~q e:,:ist undor t}~e plan which are
s~fl~jcct in any n~mnner Lo voluntary or involur~tary anticipation~ alienation~ sate~
transfer~ assignment~ pledge~ encumbrance or charge and any attempt so %o anti-
..... e .... ve~ transfer, assign~ p].edge~ encu~'faer or charse the same shall be
void~ nor shall any such benefit~ right or account be in any manner liable for
....... !iabilities~ e~:gagcments~ torts or other
or subject to the debts:
obligatio~s of the merson entmt_ed to such benefit, rxgno or account~ except as
specifically provided in tho plan; nor shall any
the plan cons~_~ute an asset in case of thc bankruptcy~ receivership or divorce
of any person e.~t.~.~lea 'render the Plan.
If a participant or any other person entitled under the plan. becomes
~' ..... ~',~ ~ for the benefit oC creditors or in any way suffers
bankrumt or makes an a .... !a,~ .... n~
a lien or judgment against his personal assets, or in any way ~utem,3u~ to
anticipate~ aliena-~e~ se!l: assign~ pl. cd~e~ enc~mber or charge a benefit: right
or account~ except as smecifically provided in the plan~ then such benefit: right
" -~ ~ ' of the retirement co~:~t, tee may cease .... d terminate;
or account in the o. msc_.e~_.on
and in that event the ........ =
u].~suce shal!~ at thc
ho].d or apply funds equal in value to such terminated account in the in~cerest of
~h~, shall include not only d .... ~r~butmons directly to the
such participant, m ~ ~ ~ ~ ....
participant at the retirement conu~ttee's discretion but to or for the benefit o'f
de ~ena~n~o where ~ne retirement
the .... * -:~'~ ~ ~ +
p ....... p~n~'s spouse~ children or other
con~mutee determines this to be necessa~, for the p~.ru].c].p~..n~, to a~ocnarge his
duty of support to such persons~ the d~.~u~.~b.~t.,on to be in such manner and in
such proportion as the r~tzremenu committee shall dete~ne, (~ee Section 5.6:
'~-c
ll8-TT
$oc'Ision .5 .B - ~EN]_;2i'IT$ R&Y/,,M;E '£0 I.'ii]IORS AND INCOi.iPiiTk'.'S2$
~,£f.,enever an~' person entitled %o pa~m~cnt, s (ruder this ~]an sim].! be
a minor or under other legal disab:Llity or in 'the sole jud[;:::an% of tho retire-
mcnt co::~mi'tl;ce shall otherwise be unable to apply such payments to h~.s o~n
best interest and advanta6e (as in the case of il]_ness~ ~.~hether mental or
or ~,~hcre tho person not under legal, disabi.!it)~ is unab].e %o mrescrve bis estate
for his ovm best interest)~ the retirement ccm~ittee mc%y in the exercise
discretion direct all or any portion of such pa}i:~ents to be made in any one oP
more of the fei.]_owing ~.zays unless cl~im sh~}.ll have been m~de therefor by an
existing a~ld d'~].b, appointed g~ardian~ consez'vator~ coi}u~;[%tee or other dul}~
appointed legal representative~ in vzhich evcnq pa2m:en% shall be made %o such
repros entative:
(A) Mrecqty 2o stroh person unless such person shall be a minor or
shall h~ve been legal].~~ adjudicated incompetent aq the time of the
(B) To the spouse~ chil.d~ parent or other blood relative to be expended
on behalf of the person entitled or on belnalf of those dependents as %o whom the
person entitled has the duty of support~
(C) To a rece[g~ized chari~3), to be expo}fried for the benefit of the
person entitled or for the benefit of those depend~nqs as to ~.~he~l the person
has the du'ty of s~eporq; or
(D) By the retirement co~nitqee itself receiving and expending or
directing the expenditure of the smme for the benefit of tile person entitled
or for the benefit of %hose dependents as 2o ~.~hom %he person has the dut)' of
s u. ppor ~.
~e decision of %he retirement coPm~itqee ~,~ill~ in each case~ be final
and binding upon all persons and~ except in the case of (D) abo,ze~ the retire-
ment committee she. ll not be obliged %0 see %o the proper e. pp!ica15ion or expenditure
ll8-UU
of ~.uy e::,;~ents so ]a~de. '
~,]~ ~-~'~ ~ ' ~, the power h~ra:inco',~''~.~.e~ed
~ co].~.].~c~ shall p ......
upon ~he reLiremcnt ~"~
O~.~a~c ~S a co:~p~cLc atJsch~I-Se of the
%'',~'-~' ~-' of the trustee and of She z_~..~ ..... n~ co::z.?]ittce
Sect. ion. 5.7 - CONDiTIOi~S nw,~. ~x O'-~,q~'~~.~ .~ ..~..~:.,: N,3%} .~3PFC_Ti]D !~',v__ PLAN
The establishn~cnt and mainLcnance of %he plan }~ill not be construed as
cenferrin6 any legal rights upon anb .... ~'-' ~ ~ _
p~r~mpmn~ to the continuation of his
emlo!o}a~cn~ %.~ith the Ci%}'~ nor ~{ill the plan interfere with the ~lgn~ of the City
to discip!ine~ lay off or discharge any participant.
..... paIo3, c~p=n~ and ooheI person entitled to benefits hereunder shall
wr~!ne~ his -oos% office
address and each chan~e of post office addPess~ and any cheek representinE
i. eh~ hcreuxder and any cor~R~nication digressed to a pa~ elCl~nu; e for]let
participant: a benefic~ar.j oPa pensioner hereunder at his last address filed
~i%h %he retire~ien% conu~ittee (or~ if no such address lies been
his last address as iniicatea on the records of the City) shall be bindin~ on
such person for a!l purposes of the p!an~ and neither the retirement coNtmittee
nor ~he trustee shall b$ ob!iSed to ~earcn for ou ascertain ~.nc lecation of any
such carson.
If the retirement comlai%tee~ for any reason~ is in doubt as %o whether
retirement income ~ =s
p=}~,en~ are being received by the person eh%it!ed there%o~
shall~ by registered mail addressed %o the person concerned at his address last
known to there"-~_~men'-~ co~nit%ae~ notify such person that:
(A) All umr~ailed and future retirement income permanents shall be hence-
~eor~-~h -"~,m~hneld ~- ' until he ~erovides the retf. re~]ent coN:~ttee ~./ith' evidence of his
continued life and his proper mailing address~ and
llS-W
(B) Iiis ri&bt to r_-ny retirement income whatsoever shal!~ at the
option of the retJremenl; commit-~ee~ be cauce!ied ~c~er if~ at the expi:,:ation
~,~ .... nc date of such ma-i.!in~;~ he shall not '- ' Ia'ovidcd the
retirement com::~ittee with evidence of his contir,,ucd life and his !~roper '..uailing
address.
(C) Upon legal determination of '~ -'
a,_atn~ or other evidence sat!sffactory
to the retirement cozra:~i5%ee~ a participant's retirement income payable m~,der any
provision oF the plan will be paid to bis designated bene£iciary. _~f~ however~
no designated beneficiary is recorded with the retirement coz~rit'Oee~ it will be
paid fi~'st to his spouse~ if !iving~ and if not~ to his sin:riving children in
equal shares.
118-WW 6- a
ARTICLE VI
The plan will be ac~inistered by thc Netirement Co::n!'ttce (herein
referred to as the "retire:'z~nt committee"} appointed by the City Coz-;cil of Del-
ray Beach, con~istins of (a} a chairman and at least one but not more than
four additional mcr:foots, (b) a single individual or (c) a corporate trustee.
~.~ere the reZirement co~t~nittee consists of one or more individuats~ each member
may~ but need not~ be an official or employee of the Ci%y~ and each such Nember~
or the corporate trustee selected to act as the retirement committee~ shall be
appointed by the City Council of Delray Beach to serve until his (or its) success:,:'
shall be appoinLed in like manner, l'Fr:ere the retirement cot::aittee is a corporat~
trustee which at the same time is serving as Lrus~ee of the p!an~ such corporate
trustee shall function sepa?ate!y in its tw~ capacities insofar as the plan and
trust are concerned; as the retirement co~nittee it may deal with itself as
trustee and as trustee it may deal with itself as the retirement comP~ttee~ and
the records maintained by such corporate trustee for the purposes of the plan
and ~rust shall show clearly the capacity in which such corporate trustee is
acting in any action taken by it. An individual me~ser of the retirement
con~ttee may resign by delivering his written resignation to the City Council ~
Delray Beach and to the other me:~oers of the retirement cotm::ittee. A corporate
trustee serving as the retirement comr:zitt~e may resign from such capacity by
delivering its written resignation to the City Council. The City Council at Del--
ray Beach -:a~ remove an individual member of the re~mrem_n~ con~mittee by so
notifying the me:t~er and other retirement coz:~ittee menffoers~ if any~ in writing
and may remove a corporate trustee serving as the retirement co;;m~ttee by so
not~fying such corporate trustee in writing. ¥~cre the retirement co~m~i, tee
consists of one or more individua!s~ ,~acancies on the retirement ce~:~mittce sh~il
be filled by action of the City Council o~ Delray Beach.
Sect!on 6.2 - OF/;UfC]'E~S AND
r~=,~,~ .... ~ co~}m~ittee ~ay appoint a secretary who may~ but need no%~
be a ~nember of the rctirencnt coa~r~ittce. The City Council shall employ such
agents~ clerical and other scrvices~ legal counsel~ accountants~ and actuaries~
as Nay be required for the purpose of ad:':~inistering the plan.
~'Ynere the retire:lent conm%ttee consists of eno or :::ore individual, sC
a majority of the men:burs of the reLircx:ent conr2it-hee shall, cons-tirE;to a %uoru~
for %he transaction of business and shall have full power to act here,~der¢ and
any coroorate trustee serving as the retircP, ent com3~tf3ee shall have full power
to act hereunder. Any ~¢ritten memorand'em signed by the secretary or any member
of the ret&foment com~aittee of one oP more individuals ~,~ho has been authorized
to act on behalf of thc retirement co~aittee shall have ~he same force and effect
as a fon'aal resolution adopted in open meeting. YHnutes of all ~neetings of the
retirement committee and a record of any action taken by the retirement co~%~i'4tee
shall be kept in written form¢ and in the case of a retirement committee of
individuals, such record shall be kept by the secre%a~ appointed by the retire-
ment co~i~tee. The retirement com,.tree shall give ~o the trus~ee~ any ordure
direc~ion¢ consent¢ or advice¢ req~red ~der the to~.s o~ the trus~ agree~ent¢
and the ~rustee shall be entitled ~o rely on any instrument delivered to i~ and
signed by the secre~ars or any authorized meraber of the retirement con~nlit~ee as
evidencing 'the action of the retirement com~ittee.
}Chore ~he retirement cormmittee consists of one or more individuals¢
90g
6-c
ll8-YY
a n~e~:ber of the retirement co~::it'tec ~ay not vote or decide utc, on an~j matter
re!at~ng solely to himself or vote in any case in which his individual ri~;ht
or claim to any benefit ~der the plan is particularly involved. If~ in any
case in which an ~ndividual retirement cor~m]ittee member is so disqualified to
aci~ the remaining members cannot agree or if there is only one individual
me~;~er of thc retirement co~ittee~ the City Co%mci! of De!ray Beach will appoint
a temporary substitute member to exercise all of the powers of a qualified
member concerning the matter in which the d~squalified meraber is not qualified
to act.
Section 6.4 - R~ES ~D REGL~ATiONS OF R~flRE~.~}'~T CO~v2.~TTEE
The retirement comni'ttee shall have the authority to make such rules
and reg~ations and to take such action as may be necessary to carry out the
provisions of the plan and wi].l~ subject to the provisions of the plan~ decide
any questions arising in the administration~ interpretation and application of
the plan, which decisions shall be conclusive and binding on all parties. The
retirement co]mnittee may delegate any part of its authority and duties as it
deems expedient.
Section 6.5 - PO~,~ERS 0F RETIRE~,~NT C0~',iITTEE
In order to effectuate the purposes of th~ p!an: the retirement co~ttee
shall have the power to construe the plan~ to supply any o~ssions therein~ to
reconcile and correct any errors or inconsistencies~ and to make equitable
~djus~men~s for any mistakes or errors made in the a~inistration of the plan,
and all such actions or dete~ina~ions made by the retirement co~m~ittee in good
faith shall not be subject to review by anyone.
Section 6.6 - LIAB~LZ'fZ 0F RETIRE~,~lff CO!.'~IS~EE
No member of the retirement committee shall be liable for any loss ~!ess
rest.ting from his (or its) own fraud or willf~, miscondt{ct: and no member shall
6- d
ll8-ZZ
be person:ally lia't~le upon~ or with .... -,.'.~ ........ o ~ act ~- - ~ '
or omission executed~ co;m-~itted~ or suffered to be committed by Yd~self as a
memoer' of the i~_t.~.c'~' '-; ~' -?,~h~°- co~:u:iit'tce or 'oy any other membor~ agent, reDrescntative
or employee of the retirement committee. The z'etiroment co;nmittee and any
individual mesmerizer of the retirement committee and any agent thereof shall be
fully protectcd in relying uvon the advice of ~h_ following profe~smonal consult-
ants or advisors employed by the City Council: any attorney insofar as
~..CcOt~u~o i~sofar as ~,CCOtl~i~ 12[tt%ol'S ~'O concorl-le~
matters are concerned~ any ~" ' ~ ......
and any actuary insofar as actuarial matters are concerned.
o~comon 6 7 -- ACTUARY
The actuary will do such technical and advisory work as the City Council
may request, including analysis of the experience o~_ the plan ~ro~ ~.me to time
the preparation of actuarial o~bles for thc ~'' ~ ...... p~
and oh._ submission of an actuarial report as of the anniversary date of the plan
each year to thc City and the retirement committee~ which report shall contain
' ~' ~ .... the
an actuarial valuation sno>,mng the financial co..dz~mon of p!an~ a statement
of the contributions to be made by the City for the ensming year~ and such other
info~m~ation as may be required by the retirement co~t~mttee'
The actuary shall be appointed by the City Council to serve as long as
it is agreeable to the City Council and the actuary. In computing benefits
which a participant may be entitled upon early retirement~ upon the exercise of
optional fo~ns of retirement income~ or upon te~m~inalion of the plan, and in all
other instances in ~¢hich ac oua~.ka]. ~omputations are required~ the actuary shall
use such ass~nnpo~ono of mortaliiy and interest rates as were employed' in the
most recent actuarial valuation of the p!an~ or~ at the option of the retire-
ment co~mmittee, such assumptions as are decided upon joint]_y by the ac-buary and
...... z e .... o~_~0_e at the time such calculations are
the reti~'ement co~toee as being .....
made. The actuarial. ~ ..... ~ +" ~ ~ ~,~_ez-~zrom ado~ed by
a ....... p~mo~o and the ~o~'mu. tations made ~'~ ~ ~
ll8-kkA
the retii~e.~ent co~lit-tce sha!], be con¢'.].usi',,~ and bindin.~] on ali l~orsons
]')either the rctire~cnt co:~it-tee nor the City sh~ll be lial~!e for anI ~nistakes
or cfi'ors in s~.ch cc~il)~tatJ_ons ~n[~de in good faith~ a]%d 'the i,r~}stee sT]all not be
liable for any [3~_tch mis'takes or errors in any event.
SectS. on 6.8 - P~P})L!C~.BLE LAW
Thc plan }~i].l be construed and enforced according to the !a~.~s of the
State of Flori~ia~ and al! provisions of the plan }~ill be a~inist~red according
to the la~.~s of the said State.
?-a I~8-BBB
A~.-, f I_ C LI; V ~[ I
TRUST ~' d~b A~I)
The term "~rustoc" ~-~eans the trustee appointed by the tity to ad~:d.~ister
the trust fund created for one purooces of ~h_ ~].an or such other trustee as the
City ~_ay designate from time to time.
Sec~mcn 7.2 - Pb~POSE OF TRUS~~
A trust fund will be created and raaintained for thc purposes of ~h,~ plan~
and the moneys thereof wfll be invested in accordance with the terms of the agree-
.,~en~ and declaration of trust which forms a part of the plan. All contributions
will be paid into the Crust fur:d~ and a].]. benefits under the plan will be paid
from the trust fund.
Section 7.3 - B~;E[etTS SUPPORTED 0~ BY
. unae~ the plan wi] ~ look sol.ely %o the
Any person having any claim ~
assets of the trust fund for satisfaction. In no event ,,~:!~ the Cmt~ or any
of its officiats~ employees~ members of its City Council or agents be liable
in their individual
c,;.i~ac~tles to any person whomsoever~ u~]der the provisions
of the~alan or of~-h~ ~ Crust agreement.
Section 7 4 TRUST FUND APPLICAB~ ONLY TO
The trust fund will be used and applied only in accordance with the
provisions of the plan~ to provide the benefits thereof, and no part of the
corpus or income of the trust fund will be used for~ or dive'ted to~ purposes
other than for the exclusive benefit of par,.~c~p~n~o and other persons there-
under entitled to benefits, except to the extent provided in Section 3.3 and
Section 7.5 h~reo~ with respect to exp=nses of a~nSnistration and te~5~i~ation
of the olan~ respec~ve.~y.
llS-CCC 7-b
· %:_.P21 TM ;!_P!i
Upon termination of the plan for any reason, or upon written notice to
the trustee that contributions 'thereunder are being per:.~:anently discontinued,
the trust fund shall be apportioned and distributed in accordance with 'the follow-
ing procedure:
(A) The retirement co}~?nittee, u2]der the direction of the City Council,
shall determine the date of distribution and the asset value to be distributed,
after taking into acco~unt the expenses of such distribution.
(B) The rctircr..~ent com:mittee, under the direction of the City Council,
shall determine the .~ethod of distribution of the asset value - that is, whether
distribution shall be by payment in cash, by the maintenance of another or
substituted trust fund, by the purchase of insured annuities, or in kind based
on the then ~narket value - for each class of participants and other persons
entitled to benefits under the plan, as specified in (C) below.
(C) The retirement committee, under the direction 'of the City Council,
shall apportion the asset value as of the date of termination of the plan in
the manner set forth below, on the basis that the ss'~ount required to provide
any given retirement income shall mean the actuariaily computed single-sum
value of such retirement income; except that, if the method of distribution
determined under (B) above involves the purchase of an insured annuity, the
amount required to provide the given retirement income shall mean the single
premium payable for such annuity.
(1) An ~mount equal to each participant's contributicns less
the aggregate of any retirement income pay~ents made with respect to such
participant will be determined, and such ~_mount will be apportioned from the
asset value. Such asset value, if insufficient to provide such amount in
full, will be apportioned among such particioants in pro!]ortion t~ the amounts
7-c . ll8-DDD
determined with respect to they'd.
(2) If there be any asset value remaining after apportionment
under (].) above, apportionment shall n~xt be ~.ade with respect to each re-
tired particip:-~nt receiving a retirement income hereunder on such date, each
person receiving a rctire:nent into]ne on such date on account of a deceased
participant or a retired (but since deceased) partici]pant an~] each partici-
pant who has, by such date, becone eligible for normal rctire~lant but has not
yet retired in the s3aount required to provide such retire]~ent income less any
apportionment in (!) aLove; provided~ however, that if the asset value be
less than the ac%gregate of such e~nounts, such amounts shall be proportionately
reduced so that the aggregate of such reduced ~.ounts will be equal to the
asset value,
(3) If there be any asset value remaining after the apportionment
~der (1) and (2) above: apportiomnent shall next be made with respect to each
participant in the service of the City on such date who is not entitled to an
apportionment '~nder (2) above but who has both attained the age of 55 years and
completed at ].east 15 years of credited service, in the amount required to provide
the actuarially equivalent single-sum value of his deferred retire~ent incon]e
accrued to the date of termination of the plan~ i.e., the actuarial].y equivalent
single-s~n value of the retirement income which he would have been entitled to
receive had he retired early on the date of termination of the plan, less any
apportionment made in (1) above, and to each former participant then entitled
6o a benefit under the provisions of Section 4.5(A) hereof who has not, by such
date: reached his normal retirement date, in the amount required to provide the
actuarially equivalent single-sum value of the accrued deferred retirement income
to which he is entitled under Section 4.5(A) hereof less any apportiomnent made
in (1) above; provided, however~ that if such remaining a~set value be less
00 ,
ll8-EEE 7-d
than the .. -.~ _
ag~,ru/~,-.~e of the ~,~ounts tl]us apportioned her'eunder, such latter
amounts shall be pro~>ort~onatcly reduced so that t?,e af~/~ega, te of such re-
duced ~oun'ts will be equal to the remaining asset value.
(1~) If there be any asset value remaining after th~ apportionments
under (1), (2), and (3) above, apportionr.~ent shall la~t!y be made with respect
to ~ach participant in the service of the City on such date who is not entitled
to an apportionment under (2) or (3) above, in the amount required to provide
the actuaria!!y eq~:~l .... single-sum value of h~s deferred retirement income
accrued to the date of termination of the plan, less any apportionment made in
(1) above; provided, however, that if such remaininfj asset value be less than
the aggregate of the ~ounts apportioned hereunder, such latter amounts shall
be proportionately reduced so that t~e aggregate of such reduced s3nounts will
be equal to such remaining asset value. '
(5) In the event that there be asset value remaining after the
full apportionments specified in (1), (2), (3)~ and (4) above, such excess
shall be returned to the City.
(D) The retirement co]?.mittee, under the direction of the City Council,
shall direct the trustee to distribute, in accordance with the manner of distri-
bution determined under (B) above, the amounts apportioned under (C) above.
Section 7.6 - BE~EFITS 100~ VESTED IF PLAN IS TEEM!NATED OR
CONTRIBUTIOI,[S PER!';~NENTLY DISCONTINUED
In the event that the plan is terminated or contributions to the trust
are per~,~anently discontinued, the benefits of each participant in the plan on
such date of termination or discontinuance shall be 100% re'StUd to the extent
then funded, where such vested benefits shall be determined and distributed as
provided in Section 7.5 hereof.
ll8-FF]
.... z. 26th ~.
to b,3 cffccti%~e as of Jan,3_a. ry 1~ 1~?1.
AT?EST:
APPR0~ED AS TO
Attorney