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78-93 ORDINANCES ~'IRST READING: COMMISSION ACTION: ~~~_~ ~5'--O SECOND READING: /~--/%/~ 3, COMMISSION ACTION: ~~ ~'--O NOTES: bg ORDINANCE NO. 78-93 AN ORDINANCE OP' THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35, "EMPLOYEE POLICIES AND BENEFITS", "RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING AND RESTATING SECTIONS 35.085 THROUGH 35. 109 AS SPECIFICALLY SET FORTH IN THE "AMENDMENT TO CITY OF DELRAY BEAC~ GENERAL EMPLOYEES ' RETIREMENT PLAN" ATTACHED HERETO AND INCORPORATED HEREIN; AMENDING SECTION 35.085 TO CHANGE THE TITLE OF THE PLAN TO: "CITY OF DELRAY BEACH GENERAL EMPLOYEES' RETIREMENT PLAN"; REPEALING SECTION 35. 086 "AUTHORIZATION"; AMENDING SECTION 35. 087 "PURPOSE"; AMENDING AND MERGING SECTION 35. 088, "EFFECTIVE DATE; APPLICABILITY OF FORMER PLAN", AND SECTION 35. 089, "INTRODUCTION"; CREATING A NEW SECTION 35. 089, "DEFINITIONS"; AMENDING AND RETITLING SECTION 35. 090, "PARTICIPATION"; AMENDING AND RETITLING SECTION 35. 091, "VESTING", AND REPEALING FORMER SECTION 35. 091, "SERVICE"; REPEALING SECTION 35. 092, "LEAVE OF ABSENCE"; AMENDING SECTION 35. 093, "CREDITED SERVICE FOR FORMER EMPLOYEES AND EMPLOYEES WHO WERE EXCLUDED FROM PARTICIPATION IN THE PLAN"; REPEALING SECTION 35. 094, "ACTUARIAL EQUIVALENCE"; AMENDING SECTION 35.095, "CONTRIBUTIONS OF PARTICIPANT AND CITY"; AMENDING SECTION 35.097, "RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT"; AMENDING SECTION 35. 098, "SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM BENEFITS"; AMENDING SECTION 35. 099, "PARTICIPANT TO FURNISH REQUIRED INFORMATION"; AMENDING SECTION 35.100, "BENEFICIARIES; CONTINGENCIES"; AMENDING SECTION 35..101, "BENEFITS NONASSIGNABLE"; AMENDING SECTION 35. 102, "BENEFITS PAYABLE TO MINORS AND INCOMPETENTS"; AMENDING SECTION 35. 103; "ABANDONMENT OF BENEFITS"; AMENDING SECTION 35. 105; "ADMINISTRATION BY RETIREMENT COMMITTEE"; CREATING A NEW SECTION 35.1051, "CLAIMS PROCEDURE"; AMENDING SECTION 35.106, "TRUST FUND AND TRUSTEE"; AMENDING SECTION 35. 108, "AMENDMENT OF PLAN"; AMENDING SECTION 35. 109, "TERMINATION OF PLAN"; PROVIDING A SAVINGS CLAUSE; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Delray Beach created a Retirement Plan for its general employees on January 1, 1965, and said Retirement Plan has been subsequently amended and restated on numerous occasions; and WHEREAS, the General Employees Retirement Committee has requested certain amendments to the Retirement Plan; and WHEREAS, the City Commission deems it to be in the best interests of the City and participants of the Retirement Plan to generally revise, update and restate the provisions of the Retirement Plan in a comprehensive manner; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Section 35.085, "Title", through Section 35.109, "Termination of Plan", inclusive, of the Code of Ordinances of the City of Delray Beach, Florida, are hereby amended and restated as set forth in the attached "Amendment to city of Delray Beach General Employees' Retirement Plan", consisting of 54 pages, and that said "Amendment to City of Delray Beach General Employees' Retirement Plan" is incorporated in this ordinance as if fully set forth herein. Section 2. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid such decision shall not affect the validity of the remainder hereof as a whole part thereof other than the part declared to be invalid. Section 3. That this ordinance shall take effect as to all eligible employees who are not included in any certified bargaining unit, and beneficiaries of such employees, upon adoption. This ordinance shall take effect as to all eligible 2 employees who are included in any certified bargaining unit, and beneficiaries of such employees, upon approval by the certified bargaining agent for such employees. PASSED AND ADOPTED in regular session on second and final reading on this the 7th day of December , 1993. Acting City Clerk First Reading: November 23, 1993 Second Reading: December 7, 1993 2/271/hhp AMENDMENT TO CITY OF DEL~AY BEACH GENEBAL EMPLOYEES, RETIREMENT PLAN 8ection 35.085 TITLE. The plan hereby created ~,,_~ +~_.._ ~{+,,__~ shall be known as the "City of Delray Beach General Employees' Retirement Plan'l for ~-~ ....... * +~ ~{*~'" (hereinafter referred to as the "plan") Ail the affairs and business of this plan shall be transacted in that name. ('80 Code, Sec. 18-66) (Ord. No. 13-74, passed 4/22/74) An a.-..unded and restated retirement plan ;~' authorized to bo ;~ authorizcd to bu admini~_tured + ...... ~ ~-~*{+~ {~ accordance the city. ('80 Code, Sec. 18-64) (Ord. No. 13-74, passed 4/22/74) Section 35.087 PURPOSE. The purpose of the plan is to provide benefits to~-~--a~ ~ city employees (as defined in Sec. 35..089(D)QgQq4%~ of this subchapter) and their beneficiaries upon the cccurrencc of retirement, death~ or disability ~ +~ .... ~ ..... or ..... ~{~ termination of employment of the employee, as provided herein. ('80 Code, Sec. 18-65) (Ord. No. 13-74, passed 4/22/74) Section 35.088 EFFECTIVE DATE; APPLICABILITY OF FORMER pLAN. /Ak The oriqinal plan cr~atcd ~a= cffectiv~ ms of took effect on January 1, 1965, and has been subsequently amended and restated~ ~x~cuticn cf +~- subchapter ('80 Code, Sec. 18-67) (Ord. No. 13-74, passed 4/22/74) pi · g ' (~) The plan as set forth herein is an amendment, restatement, and continuation of the superseded plan as in effect on April 22, 1974 and it is intended that there be no lapse either in time or effect between this plan and the superseded plan. (C~) Under the superseded plan, all benefits provided thereunder were funded through the medium of a trust fund established and maintained for the purposes of the superseded plan. Under the plan, all benefits will likewise be funded through the medium of a trust fund, established and maintained for the purpose of the plan, for the exclusive benefit of the employees covered under the plan, and their beneficiaries. (~) All covered employees will be treated alike under the plan; however, it is the desire and intention of the city to prese~e for the benefit of the employees covered under the superseded plan all benefits accrued to their credit thereunder as of April 22, 1974. The benefits provided under the plan for those employees, are at least e~al to the benefits being provided under the superseded plan, as in effect on April 22, 1974. Furthe~ore, no rights under the superseded plan as heretofore vested have been diminished. (E~) The plan is applicable to each employee of the city who is eligible to participate thereunder upon meeting the applicable eligibility retirements adopted by the city. Each employee who retires from .... ~ .... Jith thc city on or after April 23, 1974, in accordance with the te~s of the plan~ will be entitled to a 2 retirement benefit determined in accordance with the following provisions. Each employee whose service is terminated on or after April 23, 1974, but prior to ~ retirement hereunder will be entitled to the benefits described in Sec. 35.097(_DE) of this subchapter. Any employee of the city who was a participant in the superseded plan and w~--~ retired under the plan prior to'April 22, 1974, and who was not employed by ne !on,er ~ tkc ~ctivc~fu!!- timc .... ~-- cf the city 9n ~ that date shall continue to receive the benefits to which he was entitled under the superseded plan, and but shall not receive any additional benefits under this ~ plan, except supplemental retirement income and minimum benefits pursuant to Sec. 35,098. ('80 Code, Sec. 18-68) (Ord. No. 13-74, passed 4/22/74; Am. Ord. No. 107-82, passed 1/11/83) Bection 35.089 DEFINITIONS. (A) "Actuarial (actuarially) equivalence (equivalent)" means equality in value of the a~reaate amounts expected to be received under different forms of payment. Actuarial equivalent amounts under the plan will be determined utilizing the 1983 Group Annuity Mortality Table with interest at seven percent (7%), where the participant's age shall be set back one year and the beneficiary's age shall be set back four years regardless of gender. However, in the event of plan termination, actuarial equivalence will be based upon the interestand mortality assumptions prescribed by the Pension Benefit Guaranty Corporation for plan terminations in effect on the actual date of plan termination. CB) "Basic compensation" means the compensation actually paid to a participant by the city, including participant contributions picked up by the city in accordance with Sec. 35.095(A) (1) of this subchapter, and exclusive of overtime pay, commissions, bonuses, expense allowances, and all other extraordinary compensation. (C) "Credited service" means the period of continuous City employment from the employee's most recent date of hire to the date of termination of City employment up to a maximum of thirty (30) years, except as otherwise provided in Sec. 35.093 of this subchapter. Credited service shall include all periods of paid leave, and unpaid leave up to and includinq thirty (30) days in any calendar year. Unpaid leave in excess of thirty (30) days in any calendar year shall be excluded from credited service. (D) "Employee" means any regular full-time employee of the city, except as otherwise provided herein. The term "employee" shall not include: City Commissioners; the City Manager (and assistants); the City Attorney (and assistants); department heads upon their written election not to participate in the plan; former department heads who have elected not to participate in the plan; 3 any person employed fora temporary period or for a temporary job, or whose customary employment is for less than twenty (20) hours in any one week or less than five (5) months in any one calendar year; any participant who retires and receives early or normal retirement benefits under the plan, is subsequently re-employed by the City, and elects to continue receiving retirement income during the period of employment pursuant to Sec. 35.090(E) of this subchapter; and firefighters and police officers employed by the city who participate in another retirement plan. (E) "Employment" means regular, full-time employment as a city employee, - (F) "Final monthly compensation" means the total basic compensation received by a participant during the highest paid twenty-four (24) consecutive months of the one hundred twenty (120) months immediately preceding the termination of employment, divided by twenty-four (24). In computing final monthly compensation for a participant who has returned to active city employment following an approved leave of absence, disability retirement or termination of employment with a vested benefit, the period of leave of absence, disability retirement, or following termination of employment shall be ignored in determining the highest paid 24 consecutive months of the 120 months immediately preceding the subsequent termination of employment. (G) "Normal retirement date" is the first day of the month coincident with or next following the date a participant attains the age of 60 and completes ten years of credited service. A participant may continue in the employ of the city and continue to participate in the plan beyond the normal retirement date. (H) "Participant" means an employee who is eligible to participate and who actually participates in the plan. (I) "Retirement" means termination of city employment with immediate entitlement to receive normal, early or disability retirement income under the plan. (J) "Spouse" means the lawful husband or wife of an employee at the time of the employee's retirement or death, whichever is applicable. (K) "Terminated Participant" means a plan participant with ten ¢10~ or more years of credited service whose city emDloymen~ is ~erminated for any reason other than death, early retirement or disability retirement prior to the normal retirement date. Section 35.090 ELI~I~_ILITY; PARTICIPATION. .~..~_~_n j Director of Envircnmcntxl Sc~zicc:/Pub!ic TJti!iti~= :nd A:ci=txnt (Ord. No. 51-90, passed 10/23/90) (A~) The date on which an ~ employee will bocome a participant in the plan shall be: (1) April 23, 1974, for each employee who was a participant in the superseded plan as of April 22, 1974; (2) April 23, 1974, for any ~ employee who was not a participant in the superseded plan but who had ~ completed one year of credited se~ice as of such date; (3) For employees hired ~ after April 22, 1974, the date as of which each such ctkcr employee has completed one year of credited se~ice. : ~ ...................... {~) Each ~uoh employee who participates in the plan ~;~;~;~___,______~ ...... __~____..._.__; ..... *- as set forth above shall, as a condition of continued city emplo~ent, make contributions to the plan as re~ired by Sec. 35.095(A), and shall b~com~ : p~*~;p~* in thc ~ be subject to all other provisions in the plan~ 5 (CD) Any employee who is absent from the active service of the city on the effective date of the plan by reason of a leave of absence granted by the city, or by reason of compulsory military service, will become a participant hereunder as of the date of ~ return to active city employment. (_DE) Each employee who participates in the plan shall become eligible for benefits as provided by this subchapter. -~+~4~.4- ~ ~- mubchz~ter (E) An employee who retires and begins to receive early or no~al retirement benefits under the plan, and who is subse~ently re-employed by the city in a position eligible for participation in the plan, shall elect one of the following options: (1) The employee may elect to continue receiving retirement income but not contribUte to or accrue additional benefits under the plan during the period of re-emplo~ent; or (2) The emplo~e may elect to have retirement income pa~ents suspended during the period of re-emplo~ent, and rejoin the plan as a contributing participant. If this option is elected, the participant's prior credited se~ice will be added to the credited se~ice earned during the period of re-emplo~ent, and upon subse~ent retirement the participant's retirement income will be adjusted based on total credited se~ice and final monthly compensation as of the date of subse~ent retirement (ignoring the prior period of retirement). In no event will the participant's adjusted monthly retirement income be less than that received during the prior period of retirement. (F) Upon the written election of a department head not to participate in the plan, the emplo~ent of the department head shall be deemed te~inated for purposes of the plan. Any person who te~inates participation in the plan under this division shall not thereafter be eligible to receive plan benefits while actively employed by the city. ('80 Code, Sec. 18-79) (Ord. No. 13-74, passed 4/22/74; ~. Ord. No. 67-84, passed 9/25/84; ~. Ord. No. 105-84, passed 1/15/85; Am. Ord. No. 45-87, passed 5/26/87; Am. Ord. No. 51-90, passed 10/23/90) Section 35.091 VESTING. Participants shall become entitled to normal retirement benefits under the plan in accordance with the followinq vestinq schedule: Complete Years of Vested Credited Service: Percentaqe: ~ 5O% ~ 60% ! .70% ~ 8O% ~ 90% !0 100% of t.~inatien of his extendcd retirement o~ ~= 092 of thi= ('80 Code, Sec. 18-79) (Ord. No. 13-74, passed 4/22/74; Am. Ord. No. 67-84, passed 9/25/84; Am. Ord. No. 105-84, passed 1/15/85; Am. Ord. No. 45-87, passed 5/26/87) 7 p! y ' ('80 Code, Sec. 18-81) (Ord. No. 13-74, passed 4/22/74) Section 35.093 CREDITED SERVICE FOR FORMER EMPLOYEES ANDEMPLOYEES WHO WERE EXCLUDED FROM PARTICIPATION IN THE PLAN. ,,-, p"rp"'"" of =ez";ic~- c~-!c'_'!ation cxccod the total n,_'m_~er cf yexr= of permznont emp!cs~cnt with tho city. 8 (AE) Former plan participants who have not bequn to receive benefits under the plan and who are re-employed by the city as eligible employees will be considered new employees with credited service for all purposes calculated as such unless the former participants elect to pay back to the plan the amount of any previous distribution received from the plan plus interest.~ The amount of interest required will be calculated based upon a seven percent (7%) per annum rate for the period from date of original distribution to the date of repayment. Former plan participants who elect to repay .this amount will be granted the credited service awarded prior to their previous termination of service. (_BC) Current employees, or employees who left the employ of the city on or after ~ January 1, 1984, who participated in the plan and who were excluded from further participation in the plan during employment due to being over the then-existing maximum age provisions, but who never received_~ 6i-_tributicn ,_~'~-- retirement ~ income or withdrawal of participant emp~ contributions~ from the plan, shall have credited service for purposes of benefit calculation equal to the period of participation before exclusion plus one year, plus whatever time they elect to buy back under divisions (C~) and (_DC) of this section, plus the time after September 25, 1984, during which they contributed to, and participated in the plan. If an employee who was excluded from further participation in the plan received retirement income or a withdrawal of participant contributions, received ~-- +~ .... ~ ..... then credited service for purposes of benefit calculation shall be equal to the number of years the employee elects to buy back under divisions (C~) and (_D(;) of this section, plus one year, plus the time after September 25, 1984, during which the employee contributed to and participated in the plan. Employees in this category may buy back both those years for which they have received a withdrawal of participant contributions a di~-tributicn and the years during which they were excluded from the plan. In no event shall this credited service calculation exceed the total number of years of full-time ~ employment with the city. ccr. pu!scry p p 9 · ' i (~) (1) Eligible employees who had previously been excluded from plan participation due to being over the then-existing maximum allowable age for participation at hire, or were excluded from the plan due to being over the then-existing maximum age at ann time during their employment with the city, will have their credited service calculated in accordance with division= '~ (B), '~ ~ ,n, of this section. Eligible employees who wish to buy back any time they were excluded from the plan shall be required to make payment in accordance with----~----7~ ~-- division (_DG), which payment shall be equal to an amount which represents the employee contributions they would have made to the plan had they always participated, b~cn c!igib!~, plus interest. The amount of interest required will be calculated based upon a seven percent (7%) per annum rate for the period from which the money would otherwise have been paid into the plan to the date of repayment. Those employees who elect to make this payment will be granted credited service for . purposes of benefit calculation in accordance with division (B)~ ~_~ '~,_, . Employees will be required to buy ~a~ back the most recent years first. All ~ new participants will receive credited service for the purpose of determining their normal retirement date whether or not the optional payment is made. (2) The repayment provisions of division (~)(1) shall also be available to former employees who ~ retired from the city on or after ~q~e January 1, 1984, and who were excluded from the plan due to being over the then-existing maximum age~ thereby being prevented from accruing ten years of credited service. ~rticip~ticn.. (_DG) The repayment of a previous distribution plus interest under division (AE) of this section or the payment of employee contributions plus interest under division (C_~) of this section will be payable in a lump sum within ninety (90) days after reemployment or on or before July 1, 1985, whichever is later. However, persons who are employees of the city as of January 16, 1985, at 5:01 p.m. may elect to pay the amount required in installments. If this option is used, $1,000 will be due on or before April 15, 1985, ............... ~~ ~ ~ .... ~"~~ ~" ~ ~'- ~~ with subsequent payments of the lesser of $1,000 or the balance due payable every three months after the initial payment. If any type of benefit payment under the plan begins prior to the full payment of employee contributions or a previous distribution plus interest, the outstanding balance will be deducted from the benefit payments as they become due. The Retirement Committee shall have the authority to waive the 94~ repayment deadline~ set forth herein, upon a finding by the Retirement Committee of extenuating circumstances upon individual request which shall be submitted not later than 10 nine (9) months following the expiration of the applicable ~ deadline. ('80 Code, Sec. 18-82) (Ord. No. 13-74, passed 4/22/74; Am. Ord. No. 82-79, passed 12/10/79; Am. Ord. No. 67-84, passed 9/25/84; Am. Ord. No. 105-84, passed 1/15/85; Am. Ord. No. 50-89, passed 8/22/89) · ' dat. of plan termination. ('80 Code, Sec. 18-83) (Ord. No. 67'84, passed 9/25/84) Section 35.095 CONTRIBUTION8 OF P~RTICIP~NT ~ND CITY. (A) Participant's contribution account. (1) For the purpose of this division "PARTICIPANT'S CONTRIBUTION ACCOUNT" will consist of tax deferred participant contributions. Effective the first pay period beginning on or after October 1, 1989, employee contributions r~Taired cf ~m~lcyccs will be picked up by the city and shall be treated as employer contributions for tax purposes. However, for all purposes of determining benefits under the plan, they will be considered participant contributions. (2) Each participant will contribute toward the cost of the plan an amount equal to three percent (3%) of the first $4,800 of his basic annual compensation~ ~ defined in Scc. 35.097(A) and six percent (6%) of ~ basic annual compensation in excess of $4,800 until the beginning of the first pay period after September Beginning with the first pay period after September 25, 1984, ~e ~;~*;~- ~; ~;~ =ubcha;tur, each participant will contribute toward the cost of the plan an amount equal to six percent (6%) of 11 kis basic compensation. =~ ~,~ ~ e~ ~= n~,~ ~ ~ -,.~-~~ Effective as of the first pay period beginning on or after October 1, 1989, participant contributions will be equal to four and one-half percent (4.5%) of ki~ basic compensation a~ dcfina~ in ~^- ~ n~,~ 0 on a tax-deferred basis (3) Each participant shall continue to contribute to the plan until the earliest to occur of the following datesf (a)o Date the participant retires under the plan. (b) Date of death of the participant. (c) Date of termination of the participant's employment ~ with the city. (~) Date the participant attains thirty (30) years of credited service under the plan. (4) Anything in the plan to the contrary notwithstanding, the total benefits payable under the plan to, or with respect to, a participant shall not be less than the benefits that can be provided by the participant's contributions, and further provided, if a terminated participant '~ ~-~ ~ e-- 35.~'~_. ~_, ~ ......... ~ .... ~.._~___~~, elects to withdraw participant ~ contributions prior to the ~ normal retirement date, the participant ~ will be entitled only to the return of participant ~ contributions without interest, in lieu of all other benefits payable under the plan. Participant ~ontributions cannot be withdrawn while a participant remains in the employ eea=~i~e of the city or after the payment ~f benefits under the plan has commenced. ('80 Code, Sec. 18-93) (Am. Ord. No. 67-84, passed 9/25/84; Am. Ord. No. 48-89, passed 8/8/89) (B) City's contributions. (1) The city intends to make contributions as are required, together with contributions of participants and earninqs on investment of fund assets, to maintain the trust fund established for the purposes of the plan on a sound actuarial basis, as determined by the actuary employed by the ~_city Ccm~.i~icn in accordance with Sec. 35.105(E) of this subchapter. ('80 Code, Sec. 18-94) (2) The city shall have no right, title, or interest in the trust fund or in any part thereof, and no contributions made thereof shall revert to the city except that 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 12 described in Sec. 35.106(E) of this subchapter with respect to termination of the plan. ('80 Code, Sec. 18-96) Section 35.096 EXPENSES OF ~DMINISTI~%TION. The 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 expenses and fees not so paid by the city shall be paid from the trust fund. ('80 Code, Sec. 18-95) Section 35.097 RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT. 13 O~ of ta~inxticn ~ ' (A~) No~al retirement znd r~tir~m~nt income. (1) ~c~x! r~t!r:m=nt ~t~. Thc cf c~ck participant will bc th~ fir:t dzy cf tkc mcntk ccinci~cnt with, cr n~xt fo!!c~'ing, tk~ ~t~ k~ bctk =ttain: tk~ ag~ cf 59 tici~ ' ' ar ncaa! rctircmcnt date and rat.irc on ~n cztcn~c~ ~ ..... ~ ~atc (~) ~ount of no~al retirement income. The monthly ~ retirement income payable to a participant who rotires on or after his nomal rotiro~nt dato shall two and one-half percent (2 5%) ~ .... ~,,.+ '~a" ~ 2-1/2% of final monthly compensation: anti "b" ig y~rg ~n~ .... a~ ~+~ ~ mu led credited so.ice, ~ expressed in years and tenths of a year, up to a maximum of thirty (30) years. A participant who has attained the aqe of sixty and retires with five (5) or more years of credited se~ice, but less than ten (10) years of credited se~ice, shall ,be entitled to monthly retirement income in an amount e~al to two and one-half percent (2.5%) of final monthly compensation multiplied by credited se~ice expressed in years and tenths of. a year, multiplied by the participant's vested percentage as set forth in Sec. 35-091. ,~ ~~A ~ ..... ~ ~ ~ a~t~nd~d retirement 14 ~"~* ~ "~" ~ "~" '"~ "~" ~ 2-1/2% ~ ~ ~ ~ monthly (~) Payment of normal retirement income. The monthly retirement income payable in the event of normal or oztcndod retirement will be payable on the first day of each month. The first payment will be made effective on the participant's normal or aztandcd retirement date., (or on the first day of the month ~~* .-.~ ..... * following, ~- actual retirement, if later)~ and shall be continued thereafter during the participant's hi~ lifetime._+ ~ U_pon the participant's ~ death the full ~ same monthly benefit shall be continued to his or her spouse for one year~ and sixty percent (60%) of ~e that amount shall be continued to the spouse thereafter until the earlier of the spouse's death or remarriage. ('80 Code, Sec. 18-110) (Am. Ord. No. 82-79, passed 12/10/79; Am. Ord. No. 67-84, passed 9/25/84) (_B~) Early retirement and retirement income. Early retirement under the plan is retirement from the service of the city, with thc consent cf thc city, ~s of th~ fir=t d~y cf ~ny month prior to the participant's normal retirement date but subsequent tol the d~to ~ of ,:~hich he hoc both zttainod th~ age of attainment of a~e 55 y____ and .... ~.,,~_____~ __~ _____~-~ the completion of 15 years of credited service£ or the completion of 20 years of credited service, reqardless of aqe. --'~ ~ ..... ~ .... ~ ~ ~ ~ ~ ...... ~ ............. , p Rayment of early retirement income will be governed by the following provisions of this section: (1) Early retirement date. The early retirement date will be the first day of the month coincidcnt witk or ncxt following the date a participant retires from the service of the city under the provisions of this section prior to his normal retirement date. (2) Amount of early retirement income. The monthly amount of sarly retirement income payable to a participant of thic divicion shall b~ mn zmount equal ~ the product of "a" and "b" where "a" is the_.. ........ _...__.._* .... _=___" *~__ ..__h~ number of years and tenths of a year of credited service, mzxim;am cf ~9 ya~rc, at the his early retirement date multiplied by two and one-half percent (2.5%) ~-~ of his final monthly compensationl r and "b" is the applicable actuarial reduction factor to take into account the participant's younger age and the earlier commencement of retirement income payments. The factor to be used in "b" above · -'~..___ __~ is equal to one minus five-twelfths of one percent '"~,_., for 15 each month that the early retirement date precedes the normal retirement date. (3) Payment of early retirement income. 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 effective on the participant's early retirement date and shall be continued thereafter during the participant's U_pon the participant's ~i~ death the full rctircment same monthly benefit shall be continued to his or her spouse for one year~ and sixty percent (60%) of that ~ amount shall be continued to the spouse thereafter until the earlier of the spouse's death or remarriage. ('80 Code, Sec. 18-111) (Am. Ord. No. 67-84, passed 9/25/84) (~) Disability retirement and retirement income. (1) A participant may retire from the service of the city under the plan if he or she becomes totally and permanently disabled, as defined in division (~)(2) of this section, on or after the effective date of this section but prior to the kis normal retirement date. This type of retirement from thc uc_~-icc cf the city shall hercin be referred to as disability retirement. (2) Total and permanent disability. A participant will be considered totally disabled if, in the opinion of the Retirement Committee, the participant ~e is wholly prevented from engaging in any occupation for wage or profit; and a participant will be considered permanently disabled if, in the opinion of the Committee, the participant is likely to remain so disabled continuously and permanently from a cause other than those specified in division (~)(3) of this section. (3) Disqualifyinq Ncn~dmi=sib!c causes of disability. A participant will not be entitled to receive any disability retirement income if, in the opinion of the Committee, the disability is a result of: (a) The participant's E 9xcessive o__ra4%4habitual use by ~_.._ .... ~_~~~_~_=_.._ of drugs, intoxicants, or narcotics; (b) Injury or disease sustained by the participant while willfully and illegally participating in fights, riots, civil insurrections, or while committing a felony; (c) Injury or disease sustained by the participant while serving in any armed forces; (d) Injury or disease sustained by the participant diagnosed or discovered ~,-~ ...... ~ ~ ~ ~ ~ after the termination of city employmentl has 16 (e) Injury or disease sustained by the participant while working for anyone other than the city, and arising out of such employment; or (f) Injury or disease sustained by the participant as a result of an act of war, whether or not the act arises from a formally declared state of war. (4) Proof of disability. The Committee, before approving the pay~.ent of any disability retirement income, shall require satisfactory proof, in the form of a certificate from a duly licensed physician selected or approved by the Committee, that the participant has become disabled as provided herein. ~ ~ ...... ~" ~ The Committee may ~ require similar proof of the continued disability of ~ ~h~ participant after the commencement of disability retirement income. (5) Disability retirement income. (a) Monthly income payable prior to normal retirement date. 1. Service-connected disability. The benefit payable to a participant who retires from the service of the city due to total and permanent disability arising out of and in the course of city employment shall be a monthly retirement income equal to seventy-five percent (75%) of the participant's final monthly compensation at the date of disability, subject to offsets for social security and workers' compensation benefits in accordance with division (C_~)(5)(a)4. of this section. ~ ' ti 2. Nonservice-connected disability. The benefit payable to a participant who retires from the service of the city due to total and permanent disability not arising out of and in the course of city employment, after the completion of ten (10) years of credited service, shall be an amount equal to two percent (2%) of final monthly compensation at the date of disability, multiplied by the years and tenths of years ~ cz!~ndar mcntks of credited service, subject to a maximum monthly retirement income of fifty percent (50%) of final monthly compensation, and subject to offsets for social security and workers' compensation benefits in accordance with division lC~) (5) (a)4. of this section. .---~ ......... -..~ ~__..-_~ ........ ~ ______~ ~ ~zcurity ~__ ............ ~ ............................... ~ ...... ~ .... mzy receive. 3. If a participant with greater than ten (10) years of credited service is eligible to receive a nonservice disability benefit of less than $50 per month under division (C_~)(5) (a)2. of this section, the participant may elect to receive 17 an optional benefit payable commencing according to the provisions of division (~) (6) of this section and subject to division (~) of this section. This optional benefit will be equal to the product of "a" and "b", where "a" is _.~ ........ _...v_~._~ .... ~=___~ ~_~ ~..__ the number of years~ and tenths of years of credited service~--~K-i~AAm ~ ~n ...... at the ~- date of disability~ multiplied by two and one-half percent (2.5%) ~-~ of ~i~ final monthly compensation, and "b" is the applicable actuarial reduction factor to tak~ into account the participant's younger age and the earlier commencement of retirement income payments. If this option is elected, the benefit payable will not be subject to the provisions of division (~)(5)(b) of this section,~ but will be payable as a normal retirement benefit would be paid ~pursuant to division '~'=~ of this section), unless an optional form of payment is elected under division (~) of this section, in which case such election will define the period of payment. ~ 4. The disability retirement income described above shall be reduced by social security and workers' compensation wa~e-loss benefits received by the participant, as follows. The reduction for social security benefits shall, be in the amount of the primary insurance amount only, not including any family benefit. Any cost of living adjustments in the participant's social security benefits shall not serve to reduce further the disability retirement income payable from the plan. The reduction for social security disability benefits shall terminate upon the retiree's~ attainment of age 65. Disability retirement income payable from the plan shall be reduced by workers' compensation wage-loss benefits received by the participant to the extent that such benefits, when added to the participant's disability retirement income from the plan (adjusted for social security benefits received, if applicable), exceed the participant's final monthly compensation at the date of disability. Any cost of living adjustments in the participant's workers' compensation benefits shall not serve to reduce further the disability retirement income payable from the plan ..... In the case of a lump sum workers' compensation settlement, the disability retirement income payable from the plan shall be adjusted as follows: a., The amount of the lump sum settlement shall be divided by the participant's remaining life expectancy (in months), as determined usinq standard.actuarial tables approved by the plan actuary; b~ If the number obtained in subparagraph a., above, when added to the participant's monthly disability retirement income from the plan, exceeds the participant's final monthly compensation on the date of disability, the amount of the excess shall be deducted from the participant's monthly disability retirement income from .the plan, for the duration of the participant's remaining life expectancy as determined in subparagraph a., above. 18 C, If the number obtained in subparagraph a., above, when added to the participant's monthly disability retirement income from the plan does not exceed the participant's final monthly compensation on the date of disability, there shall be no reduction of the participant's disability retirement income from the plan. (b) Monthly income commencing on normal retirement date. If a participant is receiving monthly disability retirement income from the plan upon attaining the normal retirement date as defined in this paragraph, disability retirement income shall be discontinued and normal retirement income shall commence in accordance with this paragraph. For the purpose of this paragraph, a participant's credited service for the purpose of determining the normal retirement date shall include all periods of credited service as defined in sec. 35.089 and 35.093 of this subchapter, and all years and tenths of years during which the participant received disability retirement income from the plan. Disability retirement income paid to a participant shall cease effective upon the participant reaching the ..normal. retirement date. Also effective on the participant ' s normal retirement date, the participant shall begin receiving monthly retirement income computed in the same manner as for normal retirement in accordance with division (A)(1) of this section, based upon the participant's credited service as defined in this paragraph, and projected rate of final monthly compensation at the normal retirement date (as defined in this paragraph, below).' The participant's projected rate of final monthly compensation at the normal retirement date shall be determined in accordance with Sec. 35.059(E) of this subchapter, but based on the assumption that the participant's rate of monthly basic compensation at the date of termination of City employment due to disability would have continued without change to the normal retirement date. ~ .... *~. ; ..... ~ *~ ....... ~ ' ' ity dztc cf tc~inaticn cf h~s ....... duc to disabi! tc..__~- nc~al 19 basic ccmp~_nsaticn p~ to the datc cf t~rminaticn cf..__~ ..... ~ ncrma! rctir~_mcnt dat~. (6) Pa~ent of disability retirement income. The monthly retirement income payable upon tc '-'h~ .... ~~ ~ entitled in the event cf his disability retirement will be payable on the first day of each month. The first pa~ent will be made effective on the first day of the month ~~_~_..~___.._ -.'~..__.., ~__ n~t following the latcr tc ccc'ar of the date on ~ which hiu the particiDant's disability has existed for five months, or ~ the date on ~ which app!iczticn ~ ~ ~...__~ ~ writing _~'- the participant submits a written application for disability ~ ...... + ~ +~ retirement income, whichever is later ~ ...... ~ .-,~ ~ ~ Disability retirement income will continue to be paid durinq the participant's lifetime., and in lieu of any other retirement income under the plan, except as follows: (a) If the participant recovers from ~ disability prior to the hiu no~al retirement date, the last disability retirement income pa~ent will be the pa~ent due next preceding the date of tho recover. (b) If the participant dies prior to the his no~al retirement date without recovering from his disability, the last pa~ent will be the pa~ent due next preceding the date of ~ death. (c) If the participant attains the no~al retirement date while receiving disability retirement income, disability retirement income shall be discontinued and no~al retirement income co~enced in accordance with division (C)(5)(b) of this section. (7) Recove~ from disability. If the Co~ittee finds that a participant who is receiving a ~isa~ility retirement inmome is, at any time ~rior to the ~ nomai retirement date, no ionger disabled, as provided herein, the Co~ittee shaii ~iremt that the retirement income be discontinued. Recovery from disability as use~ herein sh~ii mean the ~ilit~ of th~ p~rtimip~nt to ~n~g~ in a~y occupatio~ for wage or profit. However, any participant who recovers from disability and whose disabiIity retirement income is dismontinued by the Co~ittee and who, as of the date of 20 termination of city employment ~ due to disability, had completed twenty (20) years of credited service or who had both attained the age of 55 years and completed at least fifteen (15) years of credited service ~ ~l~ ~ ~ ~ ,~ ....... cr~it~ .... ~ shall, if not re-employed by h~ ~c~ nct rccntcr tkc .... ~-- cf the city, be entitled to tkc early retirement income er tko ve~tc~ dcfcrr~ r~tircmcnt inccm~ as provided in division~ (B) ...... ~"~'~ based on the ~m~ ~ ,~ ~ of this section, __~ ...... participant's ki~ final monthly compensation and ki~ credited service as of th~ date of termination of city employment ki~ ~ due to disability and upon the participant's kis ~ttzin~d age as of the date of recovery from disability~ ,___~"~ of early ~e retirement income "p_ ..... _.. __~_~ .... ____~_..._.._~ ..... ~ --'~..___ payable in this circumstance shall be actuarially reduced to take into account the participant's younger age and the earlier commencement of retirement income payments as provided in division (_B~) of this section. Any participant who recovers from disability and whose disability retirement income is discontinued by the Committee and who, as of the date of termination of city employment due to disability had completed at least five (5) years of credited service shall, if not re-employed by the city, be entitled to vested deferred retirement income as provided in division (D) of this section. (8) Reemployment by the city. If a ~ participant recovers from disability and is re-employed by rccntcr~ thc ~ the city, the participant's city employment ~&~--~e~c3~e will be deemed to have been continuous and k~ -;:i!! rcc~iva credited service under the plan will be qranted for the period of disability, fcr ('80 Code, Sec. 18-113) (Am. Ord. No. 15-78, passed 2/27/78; Am. Ord. No. 82-79, passed 12/10/79) (_DE) Benefits other than on retirement. (1) Benefit on termination of service and on death after termination of service: (a) If a participant's city employment is terminated after completion of five (5) years of credited service bu~ before the normal retirement date, and the termination of employment is for any reason other than the participant's death, early retirement as described in division (B) of this section, or disability retirement as described in division (C) of this section, the participant shall, if then living, be entitled to a deferred monthly retirement income commencing on the normal retirement date. The amount of the deferred monthly retirement income shall be computed in the same manner as normal retirement income under 21 division (B) 2 of this section, based upon the terminated participant's vested percentaqe, credited service and final monthly compensation at the date of termination of city employment. A participant who terminates city employment after completion of five (5) years of credited service may alternatively elect, in lieu of any other plan benefits, to withdraw participant contributions without interest. Such election to withdraw participant contributions shall be irrevocable, and the participant sha~l not thereafter be entitled to any credited service under the plan for the period of City employment relevant to the contributions withdrawn, regardless of future employment with the City. (b) In the event a te~inated participant dies prior to the co~encement of deferred ~ retirement income and without having received a lump sum benefit in accordance with division (G) of this section or a withdrawal of participant contributions, ................................ , ................ the participant's designated beneficiary shall will receive the monthly retirement income, payable for ten years certain and life thereafter and effective__=~-~-~_...._..= on the date of the participant's death, which can be provided by the single-sum value of the participant's acc~ed deferred monthly retirement income as of the date of te~ination of the participant's emplo~ent, accumulated at interest from the date of such te~ination of tk~ ~ ' ' ' ip ..... ~ ........ to the date of the partic ant's ~ death. ~c) If a te~inated participant who has not received a withdrawal of participant contributions or any other retirement benefit or income from the plan is re-employed by the city in a position eligible for participation in the plan, the participant shall retain the prior credited se~ice, and earn additional credited se~ice as a contributing participant during the period of re-emplo~ent, in lieu of the deferred retirement income provided in division (D) (1) (a) of this section. The monthly retirement income payable to such a participant following the 22 subsequent termination of employment, and commencinq on or after the normal retirement date, shall not in any event be less than the amount to which the participant was entitled under division (D) (1)(a) of this section prior to re-employment by the city. ( ) p ' ±~ nt '~' ~ lieu of tko bcncfit~ tc '-'~ ~ ....... ~~ ~ ~ ~ .... ~ retirement datc :k:!! nct bc !ec: tkzn ~ ....... ~ ~ .... ~4.~ ~ ...... ( ' 992) ' ' (d) The provisions of division (E~) of this section relating to optional fo~s of retirement income are applicable to the benefits provided under division (~)(1)(a) of this section. (e) Except as provided in division (AB) of this section with respect to no~al retirement, division (~) of this section with respect to disability retirement, and division (~) of this section with respect to death, a ~ participant whose emplo~ent ~ is te~inated prior to the completion of five credited se~ice shall be entitled only to the return of participant his contributions without interest. (f) Except as othe~ise provided in division (D) of this section and Sec. 35.093(C.), any participant who te~inates city emplo~ent and is subse~ently re-employed by the city in a position eligible for participation in the plan will be treated as a new participant in all respects, with date of particiDation and credited se~ice dete~ined on the basis of the participant's most recent date of emplo~ent. (2) Benefit payable in the event of participatinq employee's death on or before the 9-~-- to no~al retirement datel (a) Death benefit - se~ice-connected death. If thc se~zice cf a participant's city emplo~ent is te~inated by reason of ~ death~ on~ or before the = ...... , .... retirement date, and the death arises out of or in the course of city emplo~ent, there shall be payable the following: 23 1. TO the participant's spouse~ or other designated beneficiary or beneficiaries, as the case may be, a lump-sum payment of $10,000~,vvv,~= ~- plus 2. To the participant's spouse, until the earlier of his or her death or remarriage, '-~-~....~..~._. __~- a--.ica=.c~r~ =~ , a monthly income equal to seventy-five percent (75%) of the participant's final monthly compensation at the date of death; or to a designated beneficiary or beneficiaries other than the spouse, until death, a monthly income equal to the actuarial equivalent of a lifetime benefit payable to the participant in the amount of seventy'five percent (75%) of the participant's final monthly compensation at the date of death; ~lus 3. For each child of the participant until he or she attains=..---..~ ~ ~..---vt ~teac..=_= ~ the age of eighteen (18) years,_ and for each child from age 18 until age 22 who is a full-time student in an accredited school, there shall be payable an additional monthly income equal to seven and one-half ~ercent ( 7.5% ) q~ of the participant ' s final monthly compensation. The maximum monthly income for the participant's spouse and children combined shall not exceed ninety percent (90%) of the participant's final monthly compensation at the date of death. _A T.kc nonstudent~e child's monthly income shall terminate effective e~ the first day of the month next preceding thc =---r.i=r =~ the child's death, marriage, or the attainment of age 18, whichever occurs first; the monthly income of a child who is a full-time student shall terminate effective e~ the first day of the month next preceding thc c-~-rlicr =f the child's death, marriage, or the attainment of age 22. whichever occurs first. Legally adopted children shall be eligible for a monthly income in the same manner as biological ~ children. (b) Death benefit - nonservice-connected death. If thc =crvicc -~ a participant's'city employment is terminated by reason of - ..is actual retirement date, death on~ or before the participant's = ...... , and benefits are not payable pursuant to Sec. 35.097(D)(2)(a), there shall be payable the following: 1_~. If the participant has at least one year of crc_i.c_ =crvicu but less than five years of credited service, a lump-sum payment of $5,000, =-="~=-=z ~ to the ~articipant's spouse, or other designated beneficiary or beneficiaries. 2_~. If the participant has five or more years of credited service, there shall be payable: 24 a. A lump-sum payment of $10,000 $~rOOO ~ to the spouse or other designated beneficiary or beneficiaries; plus b. To the participant's spouse, 'until the earlier of his or her death or remarriage, .............. =-~=~ a monthly income equal to sixty-five percent (65%) of the participant's normal retirement income which has accrued to the date of death;-subject to a minimum of twenty percent (20%) of the participant's final monthly compensation at the date of death; or to a designated beneficiary or beneficiaries other than the spouse, until death, a monthly income equal to the actuarial equivalent of a lifetime benefit payable to the participant in the amount of sixty-five percent (65%) of the participant's normal retirement income which has accrued to the date of death; plus c. For each child of the participant until he or she attains shall have rcackcd the age of eighteen (18) years~ and for each child from age 18 until age 22 who is a full- time student in an accredited school, there shall be payable an additional monthly income of seven and one-half percent (7.5%) ~- 1/2% of the participant's final monthly compensation. The maximum monthly income for the spouse and children combined shall not exceed fifty percent (50%) of the participant's final monthly compensation at the date of death. A Thc nonstudent~ child's monthly income shall terminate effective ~ the first day of the month next preceding thc car!icr cf the child's death, marriage, or the attainment of age 18, whichever occurs first; the monthly income of a child who is a full-time student shall terminate on the first day of the month next preceding thc c:r!icr cf the child's death, marriage, or the attainment of age 22, whichever occurs first. Legally adopted children shall be eligible for a monthly income in the same manner as bioloqical ~ children. (c) The minimum death benefit payable to the designated beneficiary or beneficiaries under division (D) (2) of this section shall be an amount equal to the death benefit that would have been payable under the terms of the superseded plan based on the assumption that the employee had died on the effective date of this section. In the event more than one beneficiary is designated by the participant, the death benefits provided herein shall be equally apportioned among the beneficiaries. ('80 Code, Sec. 18-113) (Am. Ord. No. 82-79, passed 12/10/79; Am. Ord. No. 67-84, passed 9/25/84; Am. Ord. No. 103-87, passed 12/22/87) 25 (E~) Optional forms of retirement income. (1) In lieu of the amount and form of retirement income payable in the event of normal retirement, early retirement, or termination of service as specified in divisions (A). (B), (C) and (D) +~ (1) of this section, a participantm~ or a terminated patti ip nt may A~A 4~ A4..~ ,~ ,~ ~ ~ .... ~ C a , ~s .................... ~-, ~-, ............... , upon written re~est to the Co~ittee submitted prior t~ the receipt of retirement income or benefits under the plan, ~ to the approval of the Co~ittee, ~ elect to receive a retirement income or benefit co~encing on the date specified in divisions CA). (B) , (C) and ~'~,_, (1) of this section, whichever is applicable, of e~ivalent actuarial value payable in accordance with one of the following options: ' (a) Option 1. A retirement income of a modified monthly amount, payable to the participant for his life~i4ae, except that in the event the participant dies before receiving ky ~i~retirement income~ae~for a period of ten years, the same monthly benefit will be paid to the beneficiary designated by the participant for the balance of the ten-year period. (b) Option 2. 1. A retirement income of a modified monthly amount payable to the participant during the joint lifetime of the participant and a desiqnated joint pensioner ~~A ~, ~ and following the death of either of them, two-thirds of the monthly amount payable to the survivor for the lifetime of the survivor. ~ The monthly income payable under this option to the participant and a joint pensioner dcsign=tcd un~er A~--~-~-- '~(~'~ ~ -~ ~- =ecticn, shall not be less than the monthly income that would be payable under a payments certain to age 85 years and life thereafter form. (c) Option 3. Any other amount and form of retirement income ~ or benefits that a~, in the opinion of the Retirement Committee, will best meet the circumstances of the 26 participant. However, if the form is other than a joint and survivor form of retirement income ...... ~ or benefits, the monthly income payable to a participant under that form shall not be less than the monthly income that would be payable under a payments certain to age 85 years and life thereafter form. (2) A participant, upon electing any option under this section, shall designate the joint pensioner or beneficiary to receive the benefit, if any, payable under the plan in the event of the participant's death, on a form provided by the Committee. The participant may revoke or change the designation of a joint pensioner or beneficiary at any time prior to the commencement of retirement income or benefits, by submitting such change in writing on a form provided by the Committee. A participant may also change the designation of a joint pensioner or beneficiary after the commencement of retirement income or benefits, subject to approval by the Committee, and in accordance with the following: a_~. The participant must pay the full cost of determining the ec~ivalent actuarial value of the benefit payable. b~ The consent of a participant's joint pensioner or beneficiary to any chan~e in such designation shall not be required. c. The amount of retirement income payable to the participant upon the designation of a new joint pensioner shall be actuarially redetermined, taking into account the benefits already received by the participant, and the age and sex of the former joint pensioner, the new joint pensioner and the participant. d_~. Each designation of a joint pensioner or beneficiary shall be made in writing on a form provided by the Committee. e_~. In the event that no designated beneficiary survives the participant, the benefits payable in the event of the participant's death subsequent to retirement shall be paid as provided in Sec. 35.100(A) of this subchapter. ti ip pti -~' ' ' 27 ~ ~ ' , , (3) Retirement income pa~ents will be made under the option elected in accordance with the provisions of this division and will be subject to the following limitations: (a) If a participant dies prior to his retirement under the plan, or if a te~inated participant dies prior to the co~encement of..~_~ ....... ~_j.._..*~__ _~*_ ..__~ no~al retirement income no benefit will be payable under the option to any person, but benefits will be payable as provided in division (~) of this section. (b) If a participant's tko designated beneficiary or joint pensioner dies before the participant's retirement under the_ an~ or ..... = ........ = ...... = option elected will he cancelled automatically and . retirement income in ~ the no~al fo~ and amount will be payable to the participant upon ~ retirement ~ ~ ~ ~~ at hi~ no,x! r~tircm~nt d~t~ as if the election had not been made, unless a new election is made in accordance with the provisions of this section~ or unless a new beneficiary or joint pensioner is designatod by the participant prior to kiz retirement or joint p.ncioncr. (c) If both the pa~icipant and desiqnated beneficiary ~;-~-*~ ~" ~;~ die after the date ~ the participant's retirement income co~ences under the plan, but before the full actuarial value of benefits under ...... ~ ~" ~"~ division (~)(1)(a) or (c) has been received, the Co~ittee may, in its discretion, direct that the co~uted value of the remaining pa~ents be paid in a lump sum and in accordance with, Sec. 35. 100 (B) . ('80 Code, Sec. 18-114) (F~) Lump-sum pa~ent of small retirement income. Notwithstanding any provision of the plan to the contras, if the monthly retirement income payable to any person entitled to any benefit hereunder is less than $50 ~ cf tk~ ~ztc cf ki~ ~-~ ..... ~ ~ ~~~ ~ .... ~ ..... ~ ..... ~ .... ~~ the Retirement co~ittee may, in the exercise of its discretion, specify that the actuarial e~ivalent of the retirement income be paid in a lump sum or in monthly installments for a period certain of not more than sixty (60) months. ('80 Code, Sec. 18-115) (~. Ord. No. 67-84, passed 9/25/84) ~ Limitaticn ........ ~ ~ ~ ~ ..... ~ ~ ..... ' should ' ' ~_..t.._~ ............................ , ......... , ................. (1) If a participant's city emplo~ent ~c~zicc is te~inated because of dishonest conduct injurious to the city, or if dishonest conduct injurious to the city co~itted by a participant is dete~ined by the city during the lifetime of the participant but within one year after ~ se~ice with the city is te~inated or within one year after hi= retirement under the plan, the Retirement Co~ittee, .......-~-.. ..-~"~__-- __~_.. ~_.._ Cc~.is=icn, may te~inate a participant's interest and benefits under the plan and trust fund. ( 2 ) The dishonest conduct inj ur ious to the city co~itted by a participant shall be dete~ined and decided by the Co~ittee only after a full investigation of the alleged dishonest conduct and an opportunity has been given the participant to appear before the Co~ittee to present testimony and evidence. ~ 29 The Committee or the City Manager may conduct an investigation pursuant to this section. The decision made by the Committee in those cases shall be final and binding on all participants or other persons affected by the decision. ('80 Code, Sec. 18-117) ~ (~_~) Funding of benefits through purchase of life insurance contract or contracts. (1) In lieu of paying benefits from the trust fund to a participant or his beneficiary, and upon direction of the Retirement Committeew with specific prior authorization by the city, the trustee shall purchase, with funds in the trust, an individual retirement income or retirement annuity contract from an insurance company which, as far as possible, provides benefits equal to (or actuarially equivalent to) those provided in the plan for that participant or beneficiary, whereupon the contract shall thereafter govern the payment of the amount of benefit, if any, represented by that contract which is payable under the plan upon the participant's normal retirement, early retirement, death, or termination of service, and the liability of the trust fund and of the plan will cease and terminate with respect to those benefits that are purchased and for which the premiums are duly paid. The individual retirement income or retirement annuity contract may be purchased by the trustee on a single-premium basis or on the basis of annual premiums payable over a period of years, as directed by the Committee and as agreed upon by the insurance company; the individual retirement income or retirement annuity contract may be purchased, as directed by the Committee, at any time~ on~ or after~ the participant's date o~ retirement to provide the benefits due under the plan to the participant or his beneficiary~, Ch, or (2) With specific prior authorization by the city, the Committee may direct the trustee to enter into 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 benefits, on an individual or group basis, in a manner and in a form as may be deemed appropriate by the Committee, as provided for in the plan, and further provided the insurance benefit will be no greater than 100 times the participant's anticipated monthly retirement income commencing at normal retirement date. The amount of the anticipated monthly retirement income commencing at normal retirement date shall be computed as for normal retirement in division (A~) (1_~) of this section. (3) The participant's projected final monthly compensation at normal retirement date shall be determined in ~.4~ ,~ of accordance with Sec. 35.089(E) of this subchapter, ......... ,.., 3O ~_.__ .... _v__--..,~" 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. Specifically, those retirement annuities and other benefits as may be provided for in the plan may be purchased under one o~ more deposit administration type group annuity contracts. (4) No insurance company which may issue any contract upon the application of the trustee shall be required to take or permit any action contrary to the provisions of that contract; or be bound to allow any benefit,or privilege to any person interested in any contract it has issued which is not provided in the contract; or be deemed to be a party to this plan for any purpose; or be responsible for the validity of this plan; or be required to look into the terms of this plan; or question any act of the Committee or the trustee hereunder; or be required to see that any action of the trustee is authorized by this plan. Any issuing company shall be fully discharged from any and all liability for any amount paid to the trustee; or in accordance with its direction; and no issuing company shall be obligated to see to the application of any moneys so paid by it. Any issuing company shall be fully protected in taking or permitting any action on the faith of any instrument executed by the trustee in its name as trustee, and shall incur no liability for so doing. (5) Upon termination of employment, a participant may receive the retirement income or annuity policies which are being purchased for him at the date of his termination, in lieu of any other benefit which he may be entitled to receive, upon payment to the trustee of the difference between the cash value of the policies and the amount that the participant is entitled to receive as a benefit upon termination of his service. ('80 Code, Sec. 18-118) (Am. Ord. No. 82-79, passed 12/10/79) ~,i(J_K) Technical provisions required by the Internal Revenue Code and treasury department regulations. (1) Temporary limitations on benefits for the 25 highest-paid employees. (a) Class restricted. ~ ~ivision (~) (1) of this section is applicable only to those of the 25 highest-paid employees of the city, determined whose monthly retirement income upon normal retirement date would exceed $125. The term"EMPLOyEE" as used in this division shall include all persons in the employment of the city who are participants in the plan and all other persons in the employment of the city on that date who may later become participants in the plan. 31 (b) Restrictions. 1.''~ Subject only to the specific exceptions contained in division (~K)(1) of this section~ and notwithstanding any provisions of the plan to the contrary, the amount of city contributions which may be used ~to provide benefits for any participant to whom ~i~ division (~)(1) of this section applies is ~-~- which may be received prior to the end of the ten- year period that next follows the effective date of the plan shall not exceed an amount which is equal in value to (or which is actuarially equivalent to) the larger of the following amounts: $20,000; or an amount equal to: a. Twenty percent (20%) of the participant's average regular compensation received from the city for the five years immediately preceding the date of the determination~r-3&h~date of termination of employment~l~i~e or the normal retirement date, respectively, for a participant whose service is terminated, who has retired prior to the kis normal retirement date or who has attained the kis normal retirement date, a~e~ whether or not he has retired under the plan, or b. $10,000, whichever is smaller~ multiplied by the number of years between the date of the establishment of the plan and the earliest of: the date of termination of the plan; the date the benefit of an employee, who is among the 25 highest paid whose anticipated annual retirement income exceeds $1,500 becomes payable; or the date of the failure to meet the full current costs of the plan, in the case of an employee described in division (_~q4) (1)(a)~,_,_._. ~ of this section. 2. However, if the full current costs of the plan have not been met at the end of the ten-year period that next follows the effective date of the plan, the above restrictions will continue to apply until the full current costs are funded for the first time. (c) Exceptions. 1. The foregoing conditions will not restrict the payment of the full benefits to a beneficiary after the death of a participant~.whose benefits are subject to the provisions of this division (~) (1) of this section, if, at the time of the death, the plan is in full effect and the full current costs thereof have not been met. 2. The provisions of this division (~)(1) of this section will not apply to the retirement income payable in the normal form or under any optional form which does not provide a larger monthly income than the income payable for life to any participant retiring or receiving benefits during any period in 32 which the plan is in full effect and the full current costs thereof have been met. 3. The limitations of this division (~K) (1) of this section 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 met. (d) Future amendment. If the plan is amended so as to produce a substantial increase in benefits actually payable, in the event of the subsequent termination of the plan or the subsequent discontinuance of contributions, the provisions of this division3(J_~) (1) of this section shall be applied to the increase in benefits under the plan as amended as though the increase were benefits under a new plan established on the effective date of that amendment. However, the provisions in division~_~) (1) (b) of this section that the unrestricted amount of city contributions on behalf of any employee is at least $20,000 is applicable to the aggregate amount contributed by the city on behalf of that employee from the effective date of the plan, and for the purpose of determining if the employee's anticipated normal monthly retirement income produces in excess of $125 per month, both the city contributions on the employee's behalf prior to the effective date of the amendment of the plan and those expected to be made on his behalf subsequent to the effective date of the amendment of the plan (based on the employee's rate of compensation on the effective date of that amendment) are to be taken into account. (e) Use of funds after rights of other employees satisfied. In the event of the termination of the plan while the limitations of this dlvlslon~)(1) of this section are in effect, that portion of the assets of the trust fund arising from contributions made by the city with respect to those of its employees to whom the provisions of this division ~J_~) (1) of this section are applicable which is in excess of the limitations set forth in division~_~)(1)(b) of this section will be apportioned to its other participants, including its retired participants, in accordance with the provisions of Sec. 35.109_6 of this subchapter; however, if there be any asset value after the full apportionment specified in Sec. 35.109~'~'~_v,v,,_, tkrcugk (5) of this subchapter, apportionment shall be made in a nondiscriminatory manner, prior to the apportionment specified in Sec 35 109¢B) (2) ~ ~'~'~ of this subchapter with respect to each employee to whom the provisions of this division~_~K)(1) of this section are applicable in the amount required to provide that portion of the allocation provided on his behalf under Sec. 35.10~(C) of this subchapter to which he. is not entitled by reason of the limitations of this division~K)(1) of this section, and provided further that, if the remaining asset value be less than the aggregate of those amounts, the amounts shall be proportionately reduced as contemplated by 33 Sec. 35 109~'m~ of this subchapter so that the aggregate of those reduced amounts will be equal to the remaining asset value. (2) Forfeitures. Forfeitures shall not be used to increase the benefits that any employee would otherwise receive under the plan at any time prior to the termination of the plan or the complete discontinuance of contributions to the plan~ but shall be anticipated in determining the costs under the plan. Likewise, any dividends under any contract issued in accordance with division (~$) of this section shall not be used to increase the benefits that any employee would otherwise receive under the plan. (3) Benefits nonf~rfeitable if plan is terminated or contributions permanently discontinued. Any provisions of the plan to the contrary notwithstanding, in the event that the plan is terminated or contributions to the trust are completely discontinued, the rights of each participant in the plan to benefits accrued to the date of termination or discontinuance, to the extent then funded, shall be nonforfeitable and those benefits shall be determined and distributed as provided in Sec. 35.109_6. ('80 Code, Sec. 18-119) Section 35.098 SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM BENEFITS. Effective as of January 1', 1993, all employees or beneficiaries of employees who were receivinq benefits under the plan ~ prior to January 1, 1991, shall have the monthly amount of retirement income increased by five percent (5%) over the gross amount they were receiving in December of 1990. Provided, however, that all employees and desiqnated beneficiaries who receive plan benefits that are based on or derived from a participant's normal retirement income, regardless of the participant's retirement date~ shall receive benefits based on a minimum monthly normal retirement .income amount of at least $400. (Ord. No. 48-86, passed 8/12/86; Am. Ord. No. 65-92, passed 12/8/92) Section 35.099 PARTICIPANT TO FURNISH REQUIRED INFORMATION. (A) Each participant will furnish to the Retirement Committee such information as the Committee considers necessary or desirable for the purpose of administering the plan, and the provisions of the plan respecting any payments thereunder are conditional upon the participant's furnishing promptly such a4%~ true, full, and complete information as the Committee may request. 34 (B) Each participant will submit proof of his age (and, in the case of his election of Sec. 35.097(F)(1) (b) or (c) of this subchapter, proof of the age of the joint pensioner selected by him) to the Committee at that time as required by the Committee. Thc ~++__._.._____ .....____~, _~ _If ~ proof of age is not submitted by a participant as required, the Committee may defer action on the participant's request for retirement benefits or rely on other available information to determine aqe. u=e ag ccnc!usivc ~-'~ .... rcgzrd!ess cf thc ~curce cf the infermz+~___... Any adjustment required by reaso~ of lack of proof or misstatement of the age of persons entitled to benefits hereunder, by the participant or otherwise, will be in a manner as the Committee deems equitable. (C) Any notice or information which, according to the terms of the plan or the rules of the Committee, must be filed with the Committee shall be deemed so filed if addressed and either delivered in person or mailed to the Committee, in care of the city. ('80 Code, Sec. 18-130) Section 35.~00 BENEFZCZARZES; CONTZNGENC[ES. (A) (1) If a participant dies without havinq desiqnated a joint pensioner or beneficiary in accordance with Sec. 35.097(E)(2), or if the joint pensioner or beneficiary designated __..__~""~"~_____~ .._...__"=-"~ by a deceased participant predeceases the participant, the death benefit, if any, which may be payable under the plan with respect to the deceased participant may be paid, in the discretion of the Committee, either to: (a) Any one or more of the persons comprising the group consisting of the participant's spouse, the participant's descendants, the participant's parents, or the participant's heirs- at-law, and the Committee may pay the entire benefit to any member of that group or apportion the benefit among any two or more of them in those shares as the Committee, in its sole discretion, shall determine; or (b) The estate of the deceased participant. 35 (2) u ......... ~ ...... ~ *~ ........ * The Committee, in its sole discretion, may direct that the commuted value of the remaining monthly income payments be paid in a lump sum. (3) Any payment made to any person pursuant to the power and discretion conferred upon the Committee by the provisions of this section shall operate as a complete discharge of all obligations under the plan with respect to the deceased participant and shall -~* ~- ~u oct tc __.i_~ ~ ......... ~"~ -~ be final, binding, and conclusive on all persons ever interested hereunder. ('80 Code, Sec. 18-131) (B) (1) In the event of the death of a beneficiary who survives the participant and who, at the beneficiary's death, is receiving benefits under Sec. 35.097(_DE) or (~) of this subchapter for a specified period of time (not the lifetime of the beneficiarv~ ...~ .~ ~ y~, ,~ ~~ ~,~ ...~ ~p~ p=rticipant'~_ ~=*~____.., the same amount of monthly retirement income which the beneficiary was receiving shall be payable for the ' remainder of the specified___..~ *__.. ........ ~___ ,'-~_~ other) period to a person designated by the participant to receive the remaining death benefits, if any, payable in the event of a contingency or, if no person was so named, then to a person designated by the beneficiary of the deceased participant to receive the remaining death benefits, if any, payable in the event of the contingency. However, if no person so designated is living at the t~me the beneficiary dies, upon *~ ............. ~ *~ .... *~ ....... then the remaining death benefits, if any, shall be payable for the remainder of the specified .... ~ ~-~- * ........ '-- ~*~--~ period, at in the discretion of the Committee, either to: (a) Ail or any one or more of the persons comprising the group consisting of the participant's spouse, the beneficiary's spouse, the participant's descendants, the bene- ficiary's descendants, the participant's parents, the beneficiary's parents, the participant's heirs-at-law, or the beneficiary's heirs-at-law; or (b) The estate of the deceased beneficiary._+ (2) Whenever the Committee exercises its discretion to effect the payment of death benefits upon the death of a participant's designated beneficiary, the Committee may direct that the commuted value of the monthly retirement income payments due for the remainder of the specified period be paid in a lump sum. Any payments made to any person pursuant to the power and 36 discretion conferred upon the Committee by the provisions of this section shall operate as a complete discharge of all obligations under the plan with respect to the deceased beneficiary and shall ........ ___ binding, and ......... 2 ~nycnc ...... be final, conclusive on all persons ever interested hereunder. ('80 Code, Sec. 18-132) Section 35.101 BENEFITS NONABSIGNABLE. (A) No benefits, rights or accounts shall exist under the plan which are subject in any manner to voluntary or involuntary anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge and any attempt so to anticipate, alienate, transfer, assign, pledge, encumber or charge the same shall be void; nor shall any benefit, right, or account be in any manner liable for or subject to the debts, contracts, liabilities, engagements, torts, or other obligations of the person entitled to that benefit, right or account, except as specifically provided in the plan; nor shall any benefit, right or account under the plan constitute an asset in case of the bankruptcy, receivership, or divorce of any person entitled under the plan. (B) If a participant or any other person entitled to benefits under the plan becomes bankrupt or makes an assignment for the benefit of creditors or in any way suffers a lien or judgment against his personal assets, or in any way attempts to anticipate, alienate, sell, assign, pledge, encumber, or charge a benefit, right or account, except as specifically provided in the plan, then that benefit, right or account in the discretion of the Committee may cease and terminate; and in that event the trustee shall, at the direction of the Retirement Committee, hold or apply funds equal in value to that terminated account in the interest of the participant. This shall include not only distributions directly to the participant at the Committee's discretion but to or for the benefit of the participant's spouse, children, or other dependents where the Committee determines this to be appropriate. ~ *~ ~--~**~ ~ ~*~'-~ (See Sec. 35.102(A) (1)'~ through '~ of this subchapter for permissible methods of (3) ,., distribution.) ('80 Code, Sec. 18-134) Section 35.102 BENEFITS PAYABLE TO MINORS AND INCOMPETENTS. (A) Whenever any person entitled to benefits ~ under this plan i__s~ha=N-l--be a minor or leqally incompetent, ~ 37 Committee may, in the exercise of its discretion, direct all or any portion of those payments to be made in any one or more of the othcr duly .... ;~4-~ ~ =hz!! b~_ mzdc to 4-_he -~p ..... (1) To the parent, lawfully appointed leqal guardian, or legal representative of the person entitled to benefits under the plan; Dircct!y 4-~ 4-~4- ......... (2) To the spouse, child~r~ or other blood relative to be expended on behalf of the person entitled to benefits under the plan or that person's cn bchz!f cf those dependentsl (3) To a recognized charity or non-profit orqanization to be expended for the benefit of the person entitled to benefits under the plan or that person's fcr tkc benefit cf tkc=c dependents_ as 4- .... ~ 4-~ p ..... ~-- 4-~- ~"4-" ~ ....... ~' or (iB) The decision of the Committee wi11, in each case, be final and binding upon all persons_ ~_~, ~ Any payment made pursuant to the power herein conferred upon the Committee shall operate as a complete discharge of the obligations of the trustee and of the Committee. ('80 Code, Sec. 18-135) Bection 35.103 ABANDONMENT OF BENEFITS. (A) ~c~All participant~ and any other person~ entitled to plan benefits ~ shall keep ~ the Retirement Committee informed of their current ma~lin~ address at all times. Ail changes of address shall be promptly submitted in writing to the Committee. Ail checks and correspondence will be sent to the current address on file with the Committee. ~- ~-~ ~ ~-~ ~ 38 Committee nor the trustee shall be obliged to search for or ascertain the location of any person. (B) If the Committee, for any reason, is in doubt as to whether retirement income payments are being received by the person entitled thereto, it shall, .,by registered mail addressed to the person concerned at the ~ address last known to the Committee, notify the person that: (1) All unmailed and future retirement income payments shall be henceforth withheld until the person ~e provides the Committee -:~'itk evidence of kix continued life and/or correct ~ ~ mailing address; and (2) A participant's I~ right to receive ~ retirement · -'~'~ ........ ~-~ at the option of the Committee, be income may, ................. , cancelled forever if the participant does not respond or otherwise contact the Committee within three (3) years followinq the date payments are withheld pursuant to division (B) (1) of this section.-r ('80 Code, Sec. 18-137) Section 35.104 CONDITIONS OF EMPLOYMENT NOT AFFECTED BY PL~Iq. The establishment and maintenance of the plan will not be construed as conferring any legal rights upon any participant to the continuation of his employment with the city, nor will the plan interfere with the rights of the city to discipline, lay off, or discharge any participant. ('80 Code, Sec. 18-136) 39 Sect'Ion 35.105 ADMTN'rSTI1ATZON BY ~TZREHE~ CO~ITTEE. (A) (1) The plan will be administered by the Retirement co~ittee (herein referred to as the Co~ittee) appointed by the city Co~ission, consisting of a chairperson and dditi ' ~ .... ~ four a onal me. erst, z .... : ............. , __ _ ~-'~"~ ~ Each me~er may, but need not, be an official or employee of the city, and each me~er, -~_ ~_.._ ........ ___=_____ -~~ ~- ~ ~ ~- ~~-- shall be appointed by the City Co~ission to se~e until a ~ successor is ~ appointed in like manner. (3) An individual me~er of the Co~ittee may resign by delivering his written resignation to the City Co~ission and to the other me~ers of the Co~ittee. ~ ...... *- .... ~** ..... ~"-*~ *~ ~ ~-~~ The City Co~ission may remove an individual me~er of the Co~ittee by so notifying the me~er and other Co~ittee me~ers, if any, in writing~~ cf one or r. crc individu~lc, v ~acancies on the co~ittee shall be filled by mction of th~ City Co~ission appointment. ('80 Code, Sec. 18-148) (B) The Co~ittee may appoint a secretary who may, but need not, be a me, er of the Co~ittee. The city ~ shall employ or retain any agents, clerical and other se~ices, legal counsel, accountants, investment counselors, and ~ actuaries, as may be re~ired to administer___~-~ *~_.._ .......... =__=___ __~ ndminictcring the plan. ('80 Code, Sec. 18-149) (C) Action by Committee. (1) A majority of the me,ers of the Co~ittee shall constitute a ~o~m for the transaction of business and shall have full power to act hereunder. 40 (2) Committee meetings shall be noticed and open to the public. Meetings shall be conducted in accordance with rules adopted by the Committee, or by Roberts Rules of Order if the pt - ° ' Committee has not ado ed rules. ~ ....... ~ ......... ~ ........ ~ ~" a,-,-therizc~ tc zct cn behz!f cf thc ~~ ~ ~ .... ~ .... Minutes of all meetings of the Committee and a record of any action taken by the Committee shall be kept in written form and such record shall be kept by the secretary appointed by the Committee. Official Committee' action shall be by majority vote of a quorum of the Committee. (3) The Committee shall give to the trustee~ any order, direction, consent, or advice, required under the terms of the trust agreement, and the trustee shall be entitled to rely on any instrument delivered to it and signed by the secretary or any authorized member of the Committee as evidencing the action of the Committee. (4) A member of the Committee may not vote or decide ' upon any matter relating solely to that member, himsclf or vote in any case in which the member's h3=~ individual right or claim to any benefit under the plan is~_~;~"~"_~___~_~ involved. If, in which ~n individuz! ~ Committee member is required to abstain and the remaining members of the Committee are unable to decide the ~ the City Commission may wi-l-t appoint a temporary substitute member to the Committee. ~ .... ~ ~ ~ ~ .......... ~ ('80 Code, Sec. 18-150) (D) The Committee shall have the authority to make those rules and regulations and to take any action as may be necessary to carry out the provisions of the plan and will, 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 Committee may delegate administrative, clerical, professional and other plan-related functions ~y ~-~ -~ ;~ .... ~W~ .... ~ ~11~;~= as it deems necessary and prudent. ~ ('80 Code, Sec. 18-151) (E) In order to effectuate the purposes of the plan, the Committee shall have the power to construe the plan, to supply any omissions therein, to reconcile and correct any errors or inconsistencies, and to make equitable adjustments for any mistakes or errors made in the administration of the plan. All acticn= cr 41 (~$0 Code, Sec. 18-15~) (F) No member of the Committee shall be liable for an~ loss unless resulting from that member's ~ fraud or willful misconduct, and no member shall be personally liable upon or with respect to, any agreement, act, transaction, or omission made in good faith ~v .... ~ .... ~ as a member of the Committee~ ~ ~ ....... ~ ..... ~ No member of the Committee shall be liable for the actions of other members, or the actions of any agent, representative, or employee of the Committee. The Committee and any individual member of the Committee and any agent thereof shall be entitled to rely on fully prctccted ~_--~,,~__=_..= ....... _=_.. the advice of ~-_.._ fe!!cwing professional consultants and or advisors employed or retained by the city, includinq but not limited to attorneys, accountants, investment advisors and actuaries. ~--~--¢~- are cencerncd, zny investment ccun=e!cr inscf:r us inve~tmen~ ('80 Code, Sec. 18-153) (G) (1) The actuary will do any technical and advisory work as the city ~ may request, including analysis of the experience of the plan from time to time, the preparation of actuarial tables for the making of computations thereunder, and the submission of an actuariaI report as of the anniversary date of the plan each year to the city and the Committee, which report shall contain an actuarial valuation showing the financial condition of the plan, a statement of the contributions to be made by the city for the ensuing year, and any other information as may be required by the Committee. (2) The actuary shall be appointed by the city Comm. i~sien to serve as long as it is agreeable to the city Cem~iesien and the actuary. In computing benefits to which a participant may be entitled upon early retirement, upon the exercise of optional forms of retirement income, or upon termination of the plan, and in all other instances in which actuarial computations are required, the actuary shall use those assumptions of mortality and interest rates as were employed in the most recent actuarial valuation of the plan, or, at the option of the Committee, those assumptions as are decided upon jointly by the actuary and the Committee as being reasonable at the time the calculations are made. The actuarial assumptions and the computations made therefrom adopted by the Committee shall be conclusive and binding on all persons~ whcnscc-;cr. Neither thc The Committee~a~r-4~aecity and trustee shall not be liable for any 42 mistakes or errors in any computations made in good faith._~--~a4-~a~ ('80 Code, Sec. 18-154) (H) The plan will be construed~a4~enforced and administered according to the laws of the ~tate~ of Florida. ('80 Code, Sec. 18-155) Section 35.~05~ CI~IMS PROCEDURE. (A) Claims of Affected Persons. (1) The Committee shall grant an initial hearing upon receipt of a written request ("Claim"), on matters which affect the substantial riqhts of any person ("Claimant"), includinq participants, active or retired, beneficiaries, or any person affected by a decision of the Committee. (2) The Committee shall review the Claim at an initial hearing and enter an order within sixty (60) days from the date of receipt of the Claim and, in the case of disability claims, receipt by the Committee of a completed application and signed authoriza- tion for the release of medical records on a form approved by the Committee. The Committee may extend the time for entering the order at an initial hearing for an additional forty-five (45) days if it determines such time is necessary for full discovery and adequate review. The Committee and the Claimant may stipulate to further extensions of time. (B) Initial Hearing (1) At the initial hearing, the only evidence to be considered by the Committee shall be documentary evidence contained in the Claimant's pension file, including but not limited to, correspondence, medical records and ~eDorts of treating physicians and/or examininq physicians and evidence received pursuant to paragraph 2. (2) Other than questions from the Committee, there will be no taking of additional evidence at. the initial hearing, except that the Claimant and/or his representative will be afforded fifteen (15) minutes to make a presentation, which shall be limited to comments and/or arguments as to the evidence or information already contained in the Claimant's pension file, including the report of the examining physician. 43 (3) Upon completion of the review of the Claim at the initial hearing, the Committee shall enter an order setting forth its findings and conclusions on the Claim. The written order shall be provided to the Claimant. The order shall include: (a) The specific findings and conclusions Of the Committee, including specific references to pertinent provisions of the System on which such conclusions are based; (b)o A description of any additional material or information that the Committee may deem necessary for the Claimant to perfect his Claim, together with the reasons why such material or information is necessary; and (c) An explanation of the Claimant's right to a full hearing on the Claim and the time limit in which a full hearing must be requested in writing. (4) The decision of the Committee at the initial hearing shall not be final until after the time has expired to request a full hearing or, if a full hearing is requested, until the Committee makes a decision at the conclusion of the full hearing. (C) Full Hearing (1) Any Claimant may request a full hearing on the issues presented to the Committee at an initial hearing and upon which the Committee has entered an order as provided in subsection (B), paragraph (3), of this section. '~ (2) A full hearing must be requested by the Claimant within thirty (30) days of the receipt of the Committee's order. The order will be deemed received three (3) days following the date it is mailed to Claimant at the address provided to the Committee by Claimant. (3) Upon receipt of the request for a full hearing and considering the amount of discovery which might be conducted, the Committee shall establish a date for the full hearing and cause notice to be given to the Claimant. The full hearing shall be held within ninety (90) days from the receipt of the request from the member. The full hearin~ may be postponed, if necessary and with the consent of the Claimant, to permit full discovery of the facts. (4) Copies of all documents to be offered into evidence at the full hearing, includin~ depositions, and a complete witness list with names and addresses of witnesses expected to be called, shall be furnished to the Committee by the Claimant at least twenty (20) days prior to the full hearinq. Documents not furnished to the Committee within the prescribed time limit may be excluded from evidence at the full hearing if a reasonable explanation is not provided for the delay in providing the documents. 44 (5) A Claimant or the committee may obtain discovery by deposition and/or interrogatories Prior to the full hearing. Written notice of any depositions and/or interrogatories shall be given to the Committee and the Claimant. (6) The costs of any discovery, except discovery requested by the Committee, the appearance of witnesses at the hearing, and the making of a verbatim record of the proceedings shall be the responsibility of the Claimant. (7) Th~ Claimant shall be responsible for the appearance of any witnesses called to testify by the Claimant at the hearing. (8) Testimony at the full hearing may be submitted in the form of a deposition. Since it will give the Committee more time for review and consideration, the Committee prefers that testimony be submitted by deposition. Depositions timely submitted will be part of the record before the Committee at the full hearing and will not be read in totality at the full hearing; provided, however, that this does not preclude the Claimant or the Committee from reading parts of depositions at the full hearinq. ' (9) Irrelevant and unduly repetitious evidence shall be excluded. (10) The file maintained by the Committee, including but not limited to various medical reports therein, is part of the record before the Committee at the full hearing. (11) All.proceedings of the Committee shall be conducted in public. (12) In cases concerning an application for pension benefits, including applications for disability retirement benefits, the burden of proof, except as provided by law, shall be on the member seeking to show entitlement to such benefits. (13) In cases concerning termination of pension benefits including re-examination of members receiving disability retirement benefits, the burden of proof shall be on the Committee. (14) Except as to those records which are exempted from the provisions of Chapter 119. Florida Statutes, Florida's Public Record Law, records maintained by the Committee are open for inspection and/or copying during normal business hours at a reasonable cost for the copying. (15) Should a Claimant requesting an initial or full hearing decide to appeal any decision made by the Board, with respect to any matter considered at such hearing, the Claimant requesting an initial or full hearing will need a record of the proceedings and may need to assure that a verbatim record of the 45 proceeding is made. The Claimant requesting an initial or full hearing will be responsible for obtaining a court reporter or otherwise making a record of the proceeding before the Committee. (16) The decisions of the Committee after the rec~.ested full hearing shall be final and binding. (17) Within fifteen (15) days after making a decision at the full hearing, the Committee shall enter a final order setting forth its findings and conclusions and a copy of the order shall be provided to the Claimant. (18) Judicial review of decisions of the Committee shall be sought by the filing of a timely petition for writ of certiorari with the Appellate Division of the Circuit Court for Palm Beach County. (D) Conduct of the Full Hearing. (1) The Committee Chairman shall preside over the hearing and shall rule on all evidentiary, procedural, and other legal questions that arise during the hearinq. The Chairman's rulings shall stand unless overruled bv all other members present. The Chairman shall open the full hearing by explainin~ the procedures to be followed. (2~. The Claimant shall have the right to be represented by counsel or be self-represented. The City Attorney shall advise the Committee. (3) The Claimant shall be allowed to make an opening statement not to exceed ten (10) minutes. (4) Testimony of witnesses shall be under oath or affirmation. Depositions or affidavits shall be admissible if aqreed uDon by the Claimant and the committee or the City Attorney. (5) The Chairman, any member, the City Attorney, the Claimant or the Claimant's counsel, upon recognition by the Chairman. may direct questions to any witness during the proceedings. (6) The Claimant and the City Attorney shall have th~ right to present evidence relevant to the issues, to cross examin~ witnesses, to imDeach witnesses and to respond to the evidenc~ presented. (7) The Claimant shall be permitted a closing argument not to exceed fifteen (15) minutes. 46 (8) The Committee shall deliberate and reach a decision following closing argument, and thereafter enter a written order as provided herein. (E) Disability Claims -- Additional Procedures (1) All applications for disability pensions shall be in writing. Forms for such applications may be provided by the Committee. The disability ClaSmant shall also be required to submit a completed, authorization for release of medical records on a form provided by the Committee. (2) Upon receipt of the properly completed application and authorization for release of medical records, the Committee may request medical records from all relevant treating physicians, personnel records from the employer, copies of relevant workers' compensation records, and copies of other records deemed to be relevant to the Claim. The Committee shall pay the cost of any medical examinations required by the Committee and for copies of medical records. (3) Upon the Committee's receipt of all requested medical records concerning the Claimant, an independent medical examination (IME) may be scheduled with an appropriate physician who will be asked to render an opinion about the Claimant's medical condition as it relates to the claimed disability. (4) Upon receipt of the'IME report from the examining physician, the City Attorney will provide all records of treating physicians, relevant workers' compensation claims records, the independent medical evaluation, and all other relevant documents to the Committee for inclusion in the Claimant's pension file, and the Committee shall then schedule the initial hearinq. Section 35.106 TRUST FUND AND TRUSTEE. (A) For the purpose of this section, a "TRUSTEE" shall mean the trustee appointed by the city to administer the Trust Fund created for the purposes of the plan or any other trustee as the city may designate from time to time. ('80 Code, Sec. 18-166) (B) A Trust Fund will be created and maintained for the purpose of the plan, and Trust Fund assets shall tko moneys tkcrccf · ~:i!! be invested in accordance with investment policies adopted by the Committee or the trustee, with the Committee's approval. ~h~ ~__ ~_..- ~__...-~-~ All contributions will be paid into the Trust Fund, 47 and all plan benefits under the plan will be paid from the Trust Fund. ('80 Code, Sec. 18-167) (C) 3my person having any claim under the plan will' look solely to the assets of the Trust Fund for satisfaction. .In no event will the city or any of its officials, empl 6yees, Commissioners, or agents be liable in their individual capacities to any person whomsoever, under the provisions of the plan or of the trust agreement. ('80 Code, Sec. 18-168) (D) 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 diverted to, purposes other than for the exclusive benefit of participants and other persons ~ entitled to plan benefits, except to the extent provided in Sec. 35.096 and . division (E) of this section with respect to expenses of administration and termination of the plan, respectively· ('80 Code, Sec. 18-169) 48 49 Section 35.107 PJ~RTICIPi%NT'S RIGHTS TN TRUST FUND. No participant or other,person shall have any interest in or any right in, to or under the Trust Fund, or any part of the assets thereof, except as and to the extent expressly provided in the plan. ('80 Code, Sec. 18-133) Section 35.~08 ~ENDMENT OF PLAN. (A) The plan may be amended by the city from time to time in any respect whatever, by ordinance by the Commission specifying the amendment, subject only to the following limitations: (1) Under no condition shall the amendment 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 property for the benefit of anyone other than the participants and their beneficiaries or joint pensioners, except to the extent provided by Sec. 35.096 and Sec. 35.106(E) of this subchapter with respect to expenses of administration and termination of the plan, respectively. (2) Under no condition shall the amendment change the duties or responsibilities of the trustee unless the trustee is qiven advance notice of and an opportunity to comment on the chanqe, k~roun~cr -~ithout it= -:~ritt~n ccn£ent. (B) Subject to the foregoing limitations, any amendment may be made retroactively which, in the judgment of the Commission Rotircmont Ccm~ittoo, is necessary or advisable provided that the retroactive amendment does not deprive a participant, witkcut con=cnt, of the & right to receive plan benefits ~o which the participant is otherwise entitled, kor~un~cr -~kick havc z!rcz~y ful~ ...... ~ znd ~ .... ~ ~ ~ ~~;~=~ except for mc~ific=ticn or amendments that are a~-~k~-~necessary to comply with any laws or regulations of the United States or the 51 ~tate of Florida, or to qualify the plan ~i~ as a tax-exempt plan and trust. ('80 Code, Sec. 18-97) Bec~ion 35.109 TEI~IN~TION OF PLAN,. (A) The plan may be terminated by the city at any time by delivering to the Committee and trustee in writing an ordinance of the Commission, duly certified by an official of the city, specifying that the plan is being terminated or contributions thereunder are being permanently discontinued. The plan shall otherwise____..._~"~~'______~ terminate only upon adjudication by a court of competent jurisdiction that the city is bankrupt or insolvent (whether the proceedings be voluntary or involuntary), u~cn 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. ('80 Code, Sec. 18-98) (B) Upon termination of the plan for any reason, or upon written notice to.the trustee that contributions thereunder are beinq permanently discontinued, or upon discontinuation of contributions for other than a temporary period, the TrUst Fund shall be apportioned and distributed in accordance with the followinq procedure: (1) The Retirement Committee, subject to approval of the Commission, shall determine the date of distribution and the asset value to be distributed, after taking into account the expenses of that distribution. (2) The Committee, subject to approval of the Commission, shall determine the method of distribution of plan assets, and shall apportion those assets as follows: (a) An amount equal to each participant's contribution less the aqqreqate of any retirement income payments made to that participant will be determined, and that amount will be apportioned from the asset value. The asset value, if insufficient to provide that amount in full, will be apportioned amonq those participants in proportion to the amounts determined with respect to them. ~b) Apportionment will next be made with respect to each retired participant receivin~ a retirement income through the plan on the plan termination date, each person receiving a retirement income on that date on account of a deceased part$cimant or a retired (but since deceased) participant, and each participant who has, by that date, become eliqible for normal retirement but 52 has not yet retired, in the amount required to provide the retirement income; provided that, if the asset value is less than the aggregate of those amounts, the amounts will be proportionately reduced so that the aggregate of the reduced amounts will be equal to the asset value. .(c) If there is any asset value remaining ~after the apportionment under division (B)(2) (a) and Cb) of this se6tion. apportionment shall next be made with respect to each participant or former participant who has both attained the age of 55 years and completed at least 15 years of credited service, or has completed 20 years of credited service, but has not yet begun to receive retirement income under the plan. Apportionment shall be made to such participants and former participants in the amount required to provide the actuarial equivalent of the retirement income accrued to the plan termination date; provided that, if the remaining asset value is less than the aggreaate of the amounts to be apportioned, those amounts shall be proportionately reduced so that the aggregate of the reduced amounts will be equal to the remaining asset value. (d) !.f there is any asset value remainina after the apportionments under division (B)¢2)(a), (b), or (c) of this section, apportionment shall next be made with respect to each participant in the service of the city on that date who is not entitled to an apportionment under division ¢B)(2) (a), (b), or (c) of this section, but who has completed at least five (5) years of credited service, in the amount required to provide the actuariallv equivalent single-sum value of the vested deferred retirement income accrued to the date of plan termination. However, if the remaining asset value is less than the aggregate of the amounts apportioned, the latter amounts to be shall be proportionately reduced so that the aggregate of those reduced amounts will be equal to the remaining asset value. (e) If there is any asset value remaining after the apportionments under divisions (B)(2)(a) through (d) of this section, apportionment 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 under d~vision ~B)(3)(a), or (d) of this section, in the amount required to provide the actuarially equivalent single-sum value of the nonvested deferred retirement income accrued to the date of plan termination. If the remaining asset value be less than the aggregate of the amounts to be apportioned hereunder, those latter amounts shall be proportion- ately reduced so that the aggregate of the reduced values will be equal to the remaining asset value. if) ~n the event that there is asset Va~ue remaining after the full apportionments specified in divisions (B) ¢2)(a~ through (e) of this section, and under the provisions of 53 Sec. 35.097(J) of this subchapter, the excess shall be returned to the city. (3) The order of priorities for, and the amounts of, distribution set forth in division ¢B)(2) of this section shall be subject to the limitations provided by Sec. 35.097(J)~ o~ this subchapter, and to the distributions not beinq determined to be otherwise discriminatory by the Internal Revenue Service. ~n the event either the limitations under Sec. 35.097(J)'> of this subchapter become-effective or the Internal Revenue Service rules that the distributions are otherwise discriminatory, adjustment may be made in the priorities and amounts of distribution as may be required to satisfy the requirements of Sec. 35.097(J)~of this subchapter or the Internal Revenue Code. (4) As soon as practicable after receiDt by the city of a determination letter from the Internal Revenue Service statinq that the method of distribution in this section will not adversely affect the continued qualified status of the plan, the Retirement Committee shall direct the trustee to distribute, in accordance . with the manner of distribution determined by the Committee, the .~mounts apportioned under division (B~ (2~ or (3) of this section, or as may otherwise be required by law. ('80 Code, Sec. 18-170) 2/218/hhp 54 TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER ~ SUBJECT: ~ENDA ITEM ~ /~ ~ - MEETING OF DECEMBER 7. 1993 ORDINANCE NO. 78-93 DATE: December 5, 1993 This is the second reading of an ordinance amending the Code of Ordinances with respect to the General Employees Pension Plan. A detailed summary of the proposed amendment has been prepared by the - City Attorney's office and is attached as backup material for this item. Most of the changes are technical in nature or necessary to clarify existing language. On first reading I recommended that Paragraph (b) 1, "Death Benefit - nonservice connected death" be changed to eliminate the $2,500 death benefit for employees with less than one year service. The General Employees Retirement Committee unanimously recommended approval of the amendment. At first reading on November 23rd, Ordinance No. 78-93 passed with a 5 to 0 vote. Recommend continuation of Ordinance No. 78-93 until December 14th in order to allow more time to review ~he change with the IBF&O. MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER~ SUBJECT: AGENDA ITEM ~ /~ ~ - MEETING OF NOVEMBER 23J 19~$ ORDINANCE NO, 78-93 DATE: November 19, 1993 This is the first reading of an ordinance amending the Code of Ordinances with respect to the General Employees Pension Plan. A detailed summary of the proposed amendment has been prepared by the City Attorney's office and is attached as backup material for this item. Most of the changes are technical in nature or necessary to clarify existing language. Please see Page 24, paragraph (b) I, "Death Benefit - nonservice connected death". I recommend that the $2,500 death benefit for employees with less than one year service, an existing benefit, be eliminated. An employee with less than one year of service is not a participant in the plan; therefore, neither the employee nor the City has contributed to the plan on the employees behalf. We do provide life insurance which would pay a death benefit of $15,000 to $30,000 depending on salary level. In my view, this is not an appropriate pension fund item. The General Employees Retirement Committee unanimously recommended approval of the amendment. Recommend approval of Ordinance No. 78-93 on first reading. £1TY OF DELl:lAY BEACH CITY ATTORNEY'S OFFICE ~,~ ~w ~ ~,~. ~^~ ~, ~o~^ ~4~4 FACSIMILE 407/278-4755 Writer's Direct Line (407) 243-7091 MEMORANDUM Date: December 8, 1993 To: City Clerk's Office From: Susan A. Ruby, City Attorney Subject: General Employees Retirement Plan Ordinance Attached please find the corrected and final ordinance re g .ard.i~ General Employees Retirement Plan. Attachment cc: Joseph safford, F±nan¢o Director Ned Gusty, Human Rosoure~s Diroctor gerp.sar RECEIVED CITY CLERK [lTV OF DELRI:I¥ BEI:I[H CITY ATTORNEY'S OFFICE (40'";') MEMORANDUM Date: November 2, 1993 To: City Commission David Harden, City Manager From: Susan A. Ruby, City Attorney Subject: General Employees Retirement Plan Ordinance Amendment The General Employees Retirement Plan Ordinance Amendment is attached for your consideration. Also enclosed is a summary of the changes, most of which are technical in nature or necessary to clarify language in the existing ordinance. The most significant changes are highlighted in the summary to facilitate your review. By copy of this memorandum, Ordinance No. 78-93 and the summary of the ordinance to David Harden, City Manager, our office requests that this ordinance be placed on the City Commission Agenda for consideration. Sincerely, OFF~CE OF ?.E C~ A??OR.E~ ~ C~T~'~DELRAY BEA~. FLORIDA / BY:~ SA CityAttorney /R:ds ~ cc: Joe Safford, Finance Director ORDINANCE NO. 78-93 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 35, "EMPLOYEE POLICIES AND BENEFITS", "RETIREMENT PLAN", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING AND RESTATING SECTIONS 35.085 THROUGH 35.109 AS SPECIFICALLY SET FORTH IN THE "AMENDMENT TO CITY OF DELRAY BEACH GENERAL EMPLOYEES' RETIREMENT PLAN" ATTACHED HERETO AND INCORPORATED HEREIN; AMENDING SECTION 35.085 TO CHANGE THE TITLE OF THE PLAN TO: "CITY OF DELRAY BEACH GENERAL EMPLOYEES' RETIREMENT PLAN"; REPEALING SECTION 35. 086 "AUTHORIZATION"; AMENDING SECTION 35. 087 "PURPOSE"; AMENDING AND MERGING SECTION 35. 088, "EFFECTIVE DATE; APPLICABILITY OF FORMER PLAN", AND SECTION 35. 089, "INTRODUCTION"; CREATING A NEW SECTION 35. 089, "DEFINITIONS"; AMENDING AND RETITLING SECTION 35. 090, "PARTICIPATION"; AMENDING AND RETITLING SECTION 35. 091, "VESTING", AND REPEALING FORMER SECTION 35.091, "SERVICE"; REPEALING SECTION 35.092, "LEAVE OF ABSENCEs"; AMENDING SECTION 35.093, "CREDITED SERVICE FOR FORMER EMPLOYEES AND EMPLOYEES WHO WERE EXCLUDED FROM PARTICIPATION IN THE PLAN"; REPEALING SECTION 35. 094, "ACTUARIAL EQUIVALENCE"; AMENDING SECTION 35.095, "CONTRIBUTIONS OF PARTICIPANT AND CITY"; AMENDING SECTION 35.09'7, "RETIREMENT INCOME; BASIS, AMOUNT, AND PAYMENT"; AMENDING SECTION 35.098, "SUPPLEMENTAL RETIREMENT INCOME AND MINIMUM BENEFITS"; AMENDING SECTION 35. 099, "PARTICIPANT TO FURNISH REQUI~TED INFORMATION"; AMENDING SECTION 35. 100, "BENEFICIARIES; CONTINGENCIES"; AMENDING SECTION 35. 101, "BENEFITS NONASSIGNABLE"; AMENDING SECTION 35.102, "BENEFITS PAYABLE TO MINORS AND INCOMPETENTS"; AMENDING SECTION 35. 103; "ABANDONMENT OF BENEFITS"; AMENDING SECTION 35.105; "ADMINISTRATION BY RETIREMENT COMMITTEE"; CREATING A NEW SECTION 35.1051, "CLAIMS PROCEDURE"; AMENDING SECTION 35.106, "TRUST FUND AND TRUSTEE"; AMENDING SECTION 35. 108, "AMENDMENT OF PLAN"; AMENDING SECTION 35. 109, "TERMINATION OF PLAN"; PROVIDING A SAVINGS CLAUSE; PROVIDING AN EFFECTIVE DATE ~ WHEREAS, the City of Delray Beach created a Retirement Plan for its general employees on January 1, 1965, and said Retirement Plan has been subsequently amended and restated on numerous occasions; and WHEREAS, the General Employees Retirement Committee has requested certain amendments to the Retirement Plan; and WHEREAS, the City Commission deems it to be in the best o interests of the City and participants of the Retirement Plan to generally revise, 7update and restate the provisions of the Retirement Plan in a comprehensive manner; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Section 35.085, "Title", through Section 35.109, "Termination of Plan", inclusive, of the Code of . Ordinances of the City of Delray Beach, Florida, are hereby amended and restated as set forth in the attached "Amendment to City of Delray Beach General Employees' Retirement Plan", consisting of 54 pages, and that S~id "Amendment to City of Delray Beach General Employees' Retirement Plan" is incorporated in this ordinance as if fully set forth herein. Section 2. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid such decision shall not affect the validity of the remainder hereof as a whole part thereof other than the part declared to be invalid. Section 3. That this ordinance shall take effect as to all eligible employees who are not included in any certified bargaining unit, and beneficiaries of such employees, upon adoption. This ordinance shall take effect as to all eligible 2 employees who are included in any certified bargaining unit, and beneficiaries of such employees, upon approval by the certified bargaining agent for 'such employees. PASSED AND ADOPTED in regular session on second and final reading on this the day of , 1993. MAYOR Attest: City Clerk First Reading: Second Reading: 2/271/hhp SUMMARY OF PROPOSED AMENDMENT TO CITY OF DELRAY BEACH GENERAL EMPLOYEES' RETIREMENT PLAN (10/18/93 Draft) Section 35.085 (Title) -- Changes title to: "City of Delray Beach General Employees' Retirement Plan," to more specifically identify the employees covered by the plan (current title "is: "Retirement Plan for Employees of the City"). Section 35.086 (Authorization) -- This section is eliminated; the language is outdated and no longer necessary. Section 35.087 (Purpose) -- Technical changes only; no change in substance or intent. Section 35.088 (Effective Date; Applicability of Former Plan) -- This section is merged with provisions of current Section 35.089 (Introduction). New Division (A) contains technical changes only, with no change in substance or intent. The current section heading of Section 35.089, and current Divisions (A) and (B) under that heading are eliminated. The language in division (A) is duplicative of other provisions, in the plan regarding the Retirement Committee (pension boar~) and the Retirement Trust Fund. Division (B), which incorporates by reference the plan trust agreement and states that the trust agreement shall form part of t~ plan, is eliminated. It is not legally necessary or appropriate~for the trust agreement to be incorporated into the pension ordinance. All other divisions of this section are relettered and transferred to Section 35.088. There are several technical, non-substantive changes in division (E), including a clarification at the end of the last sentence concerning supplemental retirement income and minimum benefits. The clarification reflects the City's practice of extending retirement cost of living increases and the $400 minimum monthly benefit to all City retirees, including those who retired under prior City pension plans. e~ ? ' . ~ -- Several key words and phrases ~ in different sections of the plan have been reorganized in a single definitions section. The substance and intent of the definitions are the same as in the current plan, except as follows: 1. The definition of~"~e~ited serV~uc~#~t (C) is revised to include continuous~t~employme~t from most recent date of hire, with a maximum of 30 years. Ail paid leave, and unpaid leave up. to 30 days per year, is included in the revised definition of credited service. Provisions of the current plan concerning leaves of absence are confusing and sometimes contradictory (see sections 35.091, 35.092 and 35.093(D) of the current plan). 2. The definition of "employee" is revised to clarify the exclusion of the City Manager and Assistant City Managers from the plan, and to reflect that a participant who retires, begins receiving retirement benefits, and 'is subsequently re-employed by the City, will not be considered an "employee"-for pension purposes if he elects to continue receiving retirement income during the period of subsequent employment. The City-Attorney (and assistants), and department heads who elect not to participate in the plan continue to be excluded from the revised definition of "employee." Section 35.090 (Participation) -- The title of this section has been revised to reflect the transfer of eligibility provisions, including the definition of "employee," to other sections of the plan. A number of non-substantive, technical changes have been made in this section. Additionally, the following substantive changes have been made: 1. A new division (E) is added, providing that an employee who retires and begins to receive early or normal retirement benefits, and who is subsequen~.~y re-employed by the City, must elect one of the following options: (a)- The employee may elect to continue receiving retirement income but not contribute to or accrue additional ~b~nefits under the plan during the period of re- employment; or (b) The employee may elect to have retirement income payments suspended during the period of re-employment, rejoin the plan as a contributing participant, and earn additional benefits under the plan. Under this option, the participant's retirement benefits would be adjusted to reflect the additional period of employment after the employment is terminated. ~' ~ ~'~'- ':-- This section replaces the current ~~"service" (the definition of "credited service" has been transferred to Section 35.089). The new Section 35.O9i recommendati~.~.~@~d'.~~'~~~~~e ~/rre~:~e~~'~'~V~o~. Underthe Current plan, a participant is fUllY '(100%) ~vested after ten years of service. Under the new vesting schedule, a participant who completes five years of credited service will have a 50% vested percentage in 2 normal retirement benefits under the plan. With each complete year of credited service thereafter, the participant will earn an additional 10% vested percentage until 100% vesting is attained after ten years of credited service. Under the new graduated vesting schedule, a participant who reaches age 60 with five years of credited service may retire with 50% of the normal retirement income that would be payable after ten years of service. Although the graduated vesting schedule will allow participants to retire earlier'and receive a reduced retirement income, the definition of "normal retirement date" (age 60 with ten years of credited service) remains unchanged. Requirements for early retirement (age 55 with 1~ years of service, or 20 years of service regardless of age) and disability retirement are also unchanged. Section 35.092 (Leave of Absence) -- This section is eliminated; relevant provisions have been transferred to the definition of "credited service" in Section 35.089. ' Section 35.093 (Credited Service for Former Employees and Employees Who Were Excluded From Participation in the Plan -- Divisions (A), (B) and (D) of this section concerning credited service are eliminated; relevant provisions have been transferred to the definition of "credited serviCe'' in Section 35.089. The remaining portions of this section concerning re-employed participants and employees who were excluded from participation in the plan due to being over the then-existing maximum age provisions,~are carried forward with technical changes only. Section 35.094 (Actuarial Equivalence) -- This section is eliminated; pertinent language has been transferred to the definition of "actuarial equivalence'' in Section 35.089. Section 35.09S ~Oo~~tiono of Paztie~mm2:'~and City) -- No change in the substance or intent of this section as previously interpreted ~nd applied by the City, except that~participant contribut~_i~~ when the participant attaX~s 30 years of credi%.~:.:~ Section 35.096 (Expenses of Administration) -- No change. -- The definitions of "basic compensation" and "final monthly compensation" have been transferred to Section 35.089, and are eliminated here. ~'E~e'i~,~~r~Df.~[~~'.'~.5.097 contains 3 technical changes only, with no cha~ges in substance or intent, except as follows:' 1. At Division (A) (1) (amount of normal retirement income), a provision has been added concerning participants who ha~e attained the age of 60 and retire with five or more years of credited service. This provision is intended to mesh with the new vesting schedule in Section 35.091. 2. Also at Division (A) (1), the current provision limiting credited service to a maximum of 30 years is retained. However, member contributions will cease when a participant attains 30 years of credited service (see Section 35.095). New language is added to implement the graduated vesting schedule. 3. At Division (C) (3) (disqualifying causes of disability) current language concerning a participant's "excessive and habitual use of drugs, intoxicants, or narcotics" is changed to: "excesSive or habitual use..." 4. At Division (C)(5)(a) (monthly disability income payable prior to normal retirement date), a revised formula for offsetting workers' compensation wage-loss benefits from disability retirement income is provided at subparagraph 4. The new offset formula will bring the plan into compliance with the Florida Supreme Court"s decision in Barraqan v. City of Miami, 545 So.2d 252 (Fla. 1989). In Barragan, the Supreme Court held that a city cannot reduce or offset an employee's disability pension benefits by the amount of worker~' compensation wage-loss benefits received by the employee, except to the extent that the two benefits together exceed 100% of the employee's average monthly wage prior.to the injury. The revised workers' compensation offset formula is identical to the formula in the police/firefighter pension plan. 5. At Division (C)(7) (recovery from disability), a new sentence is added to the end of this paragraph providing that any participant who recovers from disability but is not re-employed by the City, and who had at least 5 years of credited service at the time City employment was terminated due to the disability, shall be entitled to vested deferred retirement income calculated in the same manner as a participant whose City employment is terminated after 5 years of service. -6. At Division (D) (benefits other than on retirement), paragraph (1) (a) is revised to provide a deferred retirement benefit for participants whose City employment is terminated after 5 years of service. Under the current plan, a participant must have at least 10 years of service to be 4 eligible for a deferred benefit. The revised provision is intended to mesh with the graduated vesting schedule in Section 35.091. 7. Also at Division (D)(1) (a), a provision is added ~giving participants who terminate City employment with more than 5 years of service to withdraw their participant contributions without interest, in lieu of receiving any other plan benefits. With this provision, a participant who terminates City employment after 5 years of service will be able to elect either to receive a deferred retirement income commencing at age 60, or an immediate withdrawal of participant contributions without interest. The election to withdraw participant contributions is irrevocable, and a participant is not thereafter entitled to any credited service for the period of City employment relevant to the contributions withdrawn. 8. At Division (D) (1)(f), a new paragraph is added providing that any participant who terminates City employment and is subsequently re-employed by the City in a position eligible for participation in the plan will be treated as a new participant in all respects, except as otherwise provided in Division (D) (a terminated participant who does not withdraw participant contributions upon termination of employment and is later re-emp!~yed by the City retains the prior credited service, and earns additional credited service during the period of re-employment), and Section 35.093(C) (eligible employees who were previously excluded from_plan participation due to being over the then-existing maximu~ allowable age at hire, who buy back the time during which they were excluded). 9. At Division (D)(2) (benefit payable in the event of participating employee's death on or before the normal retirement date), the lump sum, service-connected death benefit payable to the participant's spouse is increased from $5,000 to $10,000. This increase was recommended by the pension board. 10. At Division (D)(2)(b) (death benefit -- nonservice-connected death), the lump sum benefit payable to the spouse of a deceased participant with 5 or more years of service is increased from $5,000 to $10,000. 11. At Division (E) (optional forms of retirement income), paragraph (2) is rewritten to provide that a participant may change the designation of a joint pensioner or beneficiary after the commencement of retirement benefits, subject to the pension board's approval, if the participant pays the full cost of determining the equivalent actuarial value of 5 the benefit payable, and the amount of retirement income payable to the participant is actuarially redetermined. 12. At Division (H) (termination of City employment for dishonesty), a provision concerning notice of termination for dishonesty from the City Commission is eliminated.. A provision is added authorizing the pension board or the CitY Manager to conduct an investigation concerning alleged dishonest conduct. A participant's interest and benefits under the plan cannot be terminated unless there has been a full investigation of_the alleged dishonest conduct and the participant has had an opportunity to appear before the pension board to present testimony and evidence. Section 35.098. (SuD~lement&l Retirement Xnoome an4 Minimum Benefits).-- The 5% increase in retirement benefits to employees and beneficiaries of employees who retired prior to January 1, 1991 (Ordinance No. 65-92) is clarified to state that the increase applies to those employees and beneficiaries who were receiving benefits under the plan prior to January 1, 1991. Ordinance No. 65-92 was apparently intended to apply only to those employees who had retired and were actually receiving benefits prior to January 1, 1991~and their beneficiaries, and not to employees who had terminated their City employment but had not yet begun to receive pension benefits prior to that date. This section is also modified to provide that the minimum monthly retirement income ($400 per month) is applicable to designated beneficiaries of participants, as well as employees and participant's. Again, this was apparently the intent of Ordinance No. 65-92. Section 35.099 CPart/alo~nt to Furnish Reauirement 2n~ozle~on) -- Division (B) is revised to provide that the pension board may defer action on a participant's request for retirement benefits if the participant does not submit proof of age as required by the board, or the board may rely on other available information to determine the participant's age. Section 35.100 (Beneficiaries; Contingencies) -- Technical changes only; no change in substance or intent. Section 35.101 (Benefits Nonassiqnable) -- Technical changes only; no change in substance or intent. Section 35.~02 (Benefits Payable to Minors and Incompetents) -- Division (A) is amended to eliminate the pension board's authority to determine whether a participant/beneficiary is "unable to preserve his estate for his own best interest." The phrase "legally incompetent" is substituted for the current language. The pension board is authorized to direct all or a portion of payments due to a minor or legally incompetent person to the parent, lawfully appointed legal guardian, or legal representative of ~he person entitled to plan benefits. Section 35.103 (Abandonment of Benefits) -- This section is amended to provide that if the pension board is in doubt as to whether retirement income payments are actually being received by the person entitled to them, it may notify the person that all future retirement income payments will be withheld until the person provides evidence of continued life and/or correct mailing address. Further, the section is revised to provide that a participant's right to receive retirement income may be canceled forever if the participant does not respond or otherwise contact the pension board within three years following the date payments are withheld. Division (B) (3), concerning benefits payable to a participant's beneficiary upon the participant's death, is eliminated. This provision duplicates language in other sections of the plan. Section 35.104 (Conditions of Employment Not Affected by Plan) -- No change. Section 35.105 (Administration by Retirement Committee) -- This section is revised to eliminate references to a "corporate trustee." The composition of the Retirement Committee (pension board) is unchanged, except for the elimination of a corporate trustee. The pension board consists of a "chairperson and at least one but not more than four additional members" appointed by the City Commission. Division (C) is revised to require that pension board, meetings be noticed and open to the public. Meetings shall be conducted in accordance with rules adopted by the pension board, or by Roberts Rules of Order if the pension board has not adopted rules. Official pension board action shall be taken by majority vote of a quorum of the board. Division (D) is amended to provide that the pension board may delegate administrative, clerical, professional and other plan- related functions as the board deems necessary and prudent. Division (F) is revised to provide that a pension board member shall not be held liable for actions taken in good faith, or 7 actions taken by other members of the board. Pension board members are entitled to rely on the advice of professional consultants and advisers employed or retained by the City, including but not limited to attorneys, accountants, investment advisors and actuaries. At paragraph 2, references to ~he "Commission" are changed to the "City." Section 35.1051 (c~aims Procedure) -- This is a new section which provides a detailed initial hearing and full hearing procedure for any person whose substantial rights are affected by a decision of the Pension Committee. Section 35.106 (Trust Fund and Trustee) -- Technical changes only to Divisions (A) through (D). Provisions of Division (E), concerning plan termination, are transferred to Section 35.109. Section 35.107 (Participant's Riqhts in Trust Fund) -- No change. Section 35.108 (~men4ment of Plan).-- The City Commission retains its authority to amend the pension plan. Paragraph (A) (2) is amended to provide that no amendment shall change the duties or responsibilities of the trustee unless the trustee is given advance notice of and an opportunity to comment on the change. Division (B) provides for retroactive plan amendments, when such amendments are deemed necessary or advisable by the City Commission. However, a retroactive amendment cannot deprive a participan~t~of the right to receive plan benefits to which he/she is otherwise entitled, except for amendments that are necessary to comply with federal or state law or to qualify the plan as a tax-exempt plan. Section 35.109 (Termination of Plan) -- Relevant provisions concerning the termination of the plan and distribution of trust fund assets have been transferred from Section 35.106. 2/228b/hhp 8 [IT¥ JIF [IELRII¥ BEII[H 100 N.W. 1st AVENUE · DELRAY BEACH, FLORIDA 33444 · 407/243-7000 1993 MEMORANDUM TO: Joseph M. Safford, Director of Finance FROM: David T. Harden, City Man'ager .//~/ SUBJECT: GENERAL EMPLOYEES PENSION ORDINANCE DATE: October 26, 1993 Please take the lead to ensure that the revised General Employees Pension Ordinance goes through the four steps outlined in Jim Linn's letter of October 18th. At the appropriate time after the preparatory steps have been taken, please forward the amendment to the City Clerk to have it placed on a City Commission agenda. DTH:mld c: Ned Gusty City Clerk ' RECEIVED /a /~ '7 /?.fl. . CITY CLERK THE EFFORT ALWAYS MATTERS Printed on Recycled Paper i:]T DF DELRI:I¥ Writer's Direct Line (407) 243-7091 MEMORANDUM DATE: October 25, 1993 TO: David Harden, City Manager Ned Gusty, Interim Director of Human Resources Joseph Safford, Director of Finance FROM: Susan A. Ruby, City Attorney SUBJECT: General Employees Pension Ordinance Enclosed please find the proposed amendment to the City of Delray Beach General Employees Retirement Plan, a summary, and a letter to me from Carson and Linn. Please review the materials for any final changes. Please ensure that the four steps outlined on Page 2 of Jim Linn's letter are implemented prior to City Commission action. Call if you have any questions. SAR: ci Enclosure pension5, sar CARSON, LINN & ADKINS LI~ONAI~D A. CARSON LAW~YERS MAHAN STATION JAMES W. LINN 1711- Dbl&HA/~ DRIVE C. ADKII~S LUCILLE E. TURNER TALLAHASSEE, FLORIDA 3~308 ROSA H. CARSON (904) 878-2057 FACSIMILE (904) 677-1000 October 18, 1993 Susan A. Ruby, city Attorney City of Delray Beach 200 N.W. First Avenue Delray Beach, Florida 33444 Re: General Pension Plan Revision Dear Susan: Enclosed is a further revised draft of the proposed amendment to the City's General Employees' Retirement Plan, containing the additional changes we discussed with the City Manager, Finance Director and Personnel Director. Also enclosed is a summary of the amendment reflecting the revisions. The enclosed amendment revises the June 30, 1993 draft in the following areas: 1. At page 3 (Section 35.089(C)), the definition of "credited~'~ervice'' is revised to include continuous City Employment from the employee's most recent date of hire to the date of termination of City employment up to a maximum of 30 years. All periods of paid leave, and unpaid leave of up to 30 days in any calendar year, are included in credited service. 2. At page 12 (Section 35.095(3)(d)), the plan is amended to provide that participant contributions shall cease once the participant attains 30 years of credited service under the plan. 3. At page 18 (Section 35.097(C)(5)(a)4), the reduction in disability retirement income for workers' compensation benefits is revised to specify ',wage-loss" workers' compensation benefits. 4. At page 25 (Section 35.097(D)(2)(b)), the monthly death benefits payable to the spouse of a participant with 5 or more years of credited service are unchanged from the current ordinance. 5. At page 40 (Section 35.105(A)), the composition of the Retirement Committee is revised to consist of a chairperson and four additional members appointed by the City Commission. Susan A. Ruby, city Attorney Page Two October 18, 1993 6. At page 42 (Section 35.1051), a new section is added providing a detailed hearing procedure for persons whose substantial rights are affected by a decision of the Retirement "Committee. Before the proposed amendment is submitted to the City Commission, the following actions should be taken: 1. The amendment should be submitted to the plan actuary (Steve Palmquist) for his review and comment. 2. The amendment should be reviewed by the Retirement Committee. 3. The amendment should be transmitted to the IBF&O for its review. Based on our previous discussions, it is my understanding that the City desires to move forward and adopt the amendment for non-bargaining unit employees, and implement it as to bargaining unit members once the union has signed off on it. This can be accomplished through the wording of the covering ordinance which will incorporate and be attached to the amendment. 4. Prior to the final City Commission hearing on the ordinance amendment, a copy will need to be submitted to the Division o~ Retirement together with an actuarial impact statement. Please let me know if you have any questions concerning the enclosed ordinance amendment or the procedures to be followed. With best personal regards, I am Sincerely, CARSON, LINN & ADKINS ~~~ ~. Linn JWL/hhp Enclosure cc (with enclosure): David Harden, City Manager Joe Safford, Finance Director Ned Gusty, Director of Human Relations CARSON, LINN & ADKINS LAW~'ERS SUMMARY OF PROPOSED AMENDMENT TO CITY OF DELRAY BEACH GENERAL EMPLOYEESt RETIREMENT PLAN (10/18/93 Draft) Section 35.085 (Title) -- Changes title to: "City of Delray Beach General Employees' Retirement Plan," to more specifically identify the employees covered by the plan (current title is: "Retirement Plan for Employees of the City"). Section 35.086 (Authorization) -- This section is eliminated; the language is outdated and no longer necessary. Section 35.087 (Purpose) -- Technical changes only; no change in substance or intent. Section 35.088 (Effective Date; Applicability of Former Plan) -- This section is merged with provisions of current Section 35.089 (Introduction). New Division (A) contains technical changes only, with no change in substance or intent. The current section heading of Section 35.089, and current Divisions (A) and (B) under that heading are eliminated. The language in division (A) is duplicative of other provisions in the plan regarding the Retirement Committee (pension board) and the Retirement Trust Fund. Division (B), which incorporates by reference the plan trust agreement and states that the trust agreement shall form part of th.~plan, is' eliminated. It is not legally necessary or appropriate~for the trust agreement to be incorporated into the pension ordinance. Ail other divisions of this section are relettered and transferred to Section 35.088. There are several technical, non-substantive changes in division (E), including a clarification at the end of the last sentence concerning supplemental retirement income and minimum benefits. The clarification reflects the City's practice of extending retirement cost of living increases and the $400 minimum monthly benefit to all City retirees, including those who retired under prior City pension plans. Section 35.089 (Definitions) --'Several key words and phrases that were previously defined in different sections of the plan have been reorganized in a single definitions section. The substance and intent of the definitions are the same as in the current plan, except as follows: 1. The definition of "credited service" at (C) is revised to include continuous City employment from most recent date of hire, with a maximum of 30 years. All paid leave, and unpaid leave up to 30 days per year, is included in the revised definition of credited service. Provisions of the current plan concerning leaves of absence are confusing and sometimes contradictory (see sections 35.091, 35.092 and 35.093(D) of the current plan). 2. The definition of "employee" is revised to clarify the exclusion of the City Manager and Assistant City Managers from the plan, and to reflect that a participant who retires, begins receiving retirement benefits, and is subsequently re-employed by the City, will not be considered an "employee" for pension purposes if he elects to continue receiving retirement income during the period of subsequent employment. The City Attorney (an~ assistants), and department heads who elect not to participate in the plan continue to be excluded from the revised definition of "employee." Section 35.090 (ParticiDation) -- The title of this section has been revised to reflect the transfer of eligibility provisions, including the definition of "employee.," to other sections of the plan. A number of non-substantive, technical changes have been made in this section. Additionally, the following substantive changes have been made: 1. A new division (E) is added, providing that an employee who retires and begins to receive early or normal retirement benefits, and who is subsequently re-employed by the city, must elect one of the following options: (a) The employee may elect to continue receiving retirement enCOme but not contribute to or accrue additional efits under the plan during the period of re- employment; or (b) The employee may elect to have retirement income payments suspended during the period of re-employment, rejoin the plan as a contributing participant, and earn additional benefits under the plan. Under this option, the participant's retirement benefits would be adjusted to reflect the additional period of employment after the employment is terminated. Section 35.091 (Vesting) -- This section replaces the current Section 35.091 concerning "service" (the definition of "credited service" has been transferred to Section 35.089). The new Section 35.091 implements the pension board's recommendations for a graduated vesting schedule, to replace the current ten year vesting provision. Under the current plan, a participant is fully (100%) vested after ten years of service. Under the new vesting schedule, a participant who completes five years of credited service will have a 50% vested percentage in 2 normal retirement benefits under the plan. With each complete year of credited service thereafter, the participant will earn an additional 10% vested percentage until 100% vesting is attained after ten years of credited service. Under the new graduated vesting schedule, a participant who reaches age 60 with five years of credited service may retire with 50% of the normal retirement income that would be payable after ten years of service. Although the graduated vesting schedule will allow participants to retire earlier and receive a reduced retirement income, the definition df "normal retirement date" (age 60 with ten years of credited service) remains unchanged. Requirements for early retirement (age 55 with 15 years of service, or 20 years of service regardless of age) and disability retirement are also unchanged. Section 35.092 (Leave of Absence) -- This section is eliminated; relevant provisions have been transferred to the definition of "credited service" in Section 35.089. Section 35.093 (Credited Service for Former Employees and Employees Who Were Excluded From Participation in the Plan -- Divisions (A), (B) and (D) of this section concerning credited service are eliminated; relevant provisions have been transferred to the definition of "credited service" in Section 35.089. The remaining portions of this section concerning re-employed participants and employees who were excluded from participation in the pl~ due to being over the then-existing maximum age provisions, are carried forward with technical changes only. Section 35.094 (&ctuarial Equivalence) -- This section is eliminated; pertinent language has been transferred to the definition of "actuarial equivalence" in Section 35.089. Section 35.095 (Contributions of Participant and City) -- No change in the substance or intent of this section as previously interpreted and applied by the City, except that participant contributions will cease when the participant attains 30 years of credited service. Section 35.096 (Expenses of Administration) -- No change. Section 35.097 (Retirement Income; Basis, Amount, and Payment} -- The definitions of "basic compensation" and "final monthly compensation" have been transferred to Section 35.089, and are eliminated here. The remainder of Section 35.097 contains 3 technical changes only, with no changes in substance or intent, except as follows: 1. At Division (A)(1) (amount of normal retirement income), a provision has been added concerning participants who have attained the age of 60 and retire with five or more years of credited service. This provision is intended to mesh with the new vesting schedule in Section 35.091. 2. Also at Division (A)(1), the current provision limiting credited service to a maximum of 30 'years is retained. However, member contributions will cease when a participant attains 30 years of credited service (see Section 35.095). New language is added to implement the graduated vesting schedule. 3. At Division (C) (3) (disqualifying causes of disability) current language concerning a participant's "excessive and habitual use of drugs, intoxicants, or narcotics" is changed to: "excessive or habitual use..." 4. At Division (C)(5)(a) (monthly disability income payable prior to normal retirement date), a revised formula for offsetting workers' compensation wage-loss benefits from disability retirement income is provided at subparagraph 4. The new offset formula will bring the plan into compliance with the Florida Supreme Court's decision in Barraqan v. City of Miami, 545 So.2d 252 (Fla. 1989). In Barraqan, the Supreme Court held that a city cannot reduce or offset an employee's disability pension benefits by the amount of workersTM compensation wage-loss benefits received by the employee, except to the extent that the two benefits together exceed 100% of the employee's average monthly wage prior to the injury. The revised workers' compensation offset formula is identical to the formula in the police/firefighter pension plan. 5. At Division (C)(7) (recovery from disability), a new sentence is added to the end of this paragraph providing that any participant who recovers from disability but is not re-employed by the City, and who had at least 5 years o'f credited service at the time .City employment was terminated due to the disability, shall be entitled to vested deferred retirement income calculated in the same manner as a participant whose City employment is terminated after 5 years of service. 6. At Division (D) (benefits other than on retirement), paragraph (1)(a) is revised to provide a deferred retirement benefit for participants whose City employment is terminated after 5 years of service. Under the current plan, a participant must have at least 10 years of service to be 4 eligible for a deferred benefit. The revised provision is intended to mesh with the graduated vesting schedule in Section 35.091. 7. Also at Division (D)(1)(a), a provision is added giving participants who terminate City employment with more than 5 years of service to withdraw their participant contributions without interest, in lieu of receiving any other plan benefits. With this provision, a participant who terminates City employment after 5 years of service will be able to elect either to receive a deferred retirement income commencing at age 60, or an immediate withdrawal of participant contributions without interest. The election to withdraw participant contributions is irrevocable, and a participant is not thereafter entitled to any credited service for the period of City employment relevant to the contributions withdrawn. 8. At Division (D) (1) (f), a new paragraph is added providing that any participant who terminates City employment and is subsequently re-employed by the City in a position eligible for participation, in the plan will be treated as a new participant in all respects, except as otherwise provided in Division (D) (a terminated participant who does not withdraw participant contributions upon termination of employment and is later re-employed by the City retains the prior credited service, and earns additional credited service during the period of re-employment), and Section 35.093(C) (eligible employees who were previously excluded from~lan participation due to being over the then-existing maximu~ allowable age at hire, who buy back the time during which they were excluded). 9. At Division (D)(2) (benefit payable in the event of participating employee's death on or before the normal retirement date), the lump sum, service-connected death benefit payable to the participant's spouse is increased from $5,000 to $10,000. This increase was recommended by the pension board. 10. At Division (D) (2) (b) (death benefit ~nonservice-connected death), the lump sum benefit payable to the spouse of a deceased participant with 5 or more years of service is increased from $5,000 to $10,000. 11. At Division (E) (optional forms of retirement income), paragraph (2) is rewritten to provide that a participant may change the designation of a joint pensioner or beneficiary after the commencement of retirement benefits, subject to the pension board's approval, if the participant pays the full cost of determining the equivalent actuarial value of 5 the benefit payable, and the amount of retirement income payable to the participant is actuarially redetermined. 12. At Division (H) (termination of City employment for dishonesty), a provision concerning notice of termination for dishonesty from the City Commission is eliminated. A provision is added authorizing the pension board or the City Manager to conduct an investigation concerning alleged dishonest conduct. A participant's interest and benefits under the plan cannot be terminated unless there has been a full investigation of the alleged di'shonest conduct and the participant has had an opportunity to appear before the pension board to present testimony and evidence. Section 35.098 (Supplemental Retirement Income and Minimum Benefits) -- The 5% increase in retirement benefits to employees and beneficiaries of employees who retired prior to January 1, 1991 (Ordinance No. 65-92) is clarified to state that the increase applies to those employees and beneficiaries who were receiving benefits under the plan prior to January 1, 1991. Ordinance No. 65-92 was apparently intended to apply only to those employees who had retired and were actually receiving benefits prior to January 1, 199~and their beneficiaries, and not to employees who had terminated their City employment but had not yet begun to receive pension benefits prior to that date. This section is also modified to provide that the minimum monthly retirement income ($400 per month) is applicable to designated beneficiar~s of participants, as well as employees and participants~ Again, this was apparently the intent of Ordinance No. 65-92. Section 35.099 (Participant to Furnish Requirement Information) -- Division (B) is revised to provide that the pension board may defer action on a participant's request for retirement benefits if the participant does not submit proof of age as required by the board, or the board may rely on other available information to determine the participant's age. Section 35.100 (Beneficiaries; 'Continqencies) -- Technical changes only; no change in substance or intent. Section 35.101 (Benefits Nonassiqnable) -- Technical changes only; no change in substance or intent. Section 35.102 (Benefits Payable to Minors and ~ncompetents) -- Division (A) is amended to eliminate the pension board's authority to determine whether a participant/beneficiary is "unable to preserve his estate for his own best interest." The phrase "legally incompetent" is substituted for the current language. The pension board is authorized to direct all or a portion of payments due to a minor or legally incompetent person to the parent, lawfully appointed legal guardian, or legal representative of the person entitled to plan benefits. $ Section 35.103 (Abandonment of Benefits) -- This section is amended to provide that if the pension board is in doubt as to whether retirement income payments are actually being received by the person entitled to them, it may notify the person that all future retirement income payments will be withheld until the person provides evidence of continued life and/or correct mailing address. Further, the section is revised to provide that a participant's right to receive retirement income may be canceled forever if the participant does not respond or otherwise contact the pension board within three years following the date payments are withheld. Division (B) (3), concerning benefits payable to a participant's beneficiary upon the participant's death, is eliminated. This provision duplicates language in other sections of the plan. Section 35.104 (Conditions of Employment Not Affected by Plan) -- No change. Section 35.105 (Administration by Retirement Committee) -- This section is revised to eliminate references to a "corporate trustee." The composition of the Retirement Committee (pension board) is unchanged, except for the elimination of a corporate trustee. The pension board consists of a "chairperson and at least one but not more than four additional members" appointed by the City Commission. Division (C) is revised to require that pension board meetings be noticed and open to the public. Meetings shall be conducted in accordance with rules adopted by the pension board, or by Roberts Rules of Order if the pension board has not adopted rules. Official pension board action shall be taken by majority vote of a quorum of the board. Division (D) is amended to provide that the pension board may delegate administrative, clerical, professional and other plan- related functions as the board deems necessary and prudent. Division (F) is revised to provide that a pension board member shall not be held liable for actions taken in good faith, or 7 actions taken by other members of the board. Pension board members are entitled to rely on the advice of professional consultants and advisers employed or retained by the City, including but not limited to attorneys, accountants, investment advisors and actuaries. At paragraph 2, references to the "Commission" are changed to the "City." Section 35.1051 (Claims Procedure) -- This is a new section which provides a detailed initial hearing and full hearing procedure for any person whose substantial rights ,are affected by a decision of the Pension Committee. Section 35.106 (Trust Fund and Trustee) -- Technical changes only to Divisions (A) through (D). Provisions of Division (E), concerning plan termination, are transferred to Section 35.109. Section 35. 107 (Participant,s Rights in Trust Fund) -- No change. Section 35.108 (Amendment of Plan) -- The City Commission retains its authority to amend the pension plan. Paragraph (A)(2) is amended to provide that no amendment shall change the duties or responsibilities of the trustee unless the trustee is given advance notice of and an opportunity to comment on the change. Division (B) provides for retroactive plan amendments, when such amendments are deemed necessary or advisable by the City Commission. However, a retroactive amendment cannot deprive a participan~t~of the right to receive plan benefits to which he/she is otherwise entitled, except for amendments that are necessary to comply with federal or state law or to qualify the plan as a tax-exempt plan. Section 35.109 (Termination of Plan} -- Relevant provisions concerning the termination of the plan and distribution of trust fund assets have been transferred from Section 35.106. 2/228b/hhp 8 ClES AND ~ENEFITS', ~RETIREMENT PLAN', OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORI. DA, BY AMENDING AND RESTAT- ING SECTIONS 35.1~5 THROUOH 1~.~09 AS SPEC~FI~LLY SET FORTH ~N T~E ~EN~ENT TO C~TY ~ DELRAY ~EACH GENER- AL EMPLOYEES~ RETIREMENT P~N' ATTACHED HERETO AND INC~RA~ED HEREIN I~G SECT d~,~ TO CHANGE THE T~TLE OF TEH P~A~ TO: · {TY OF DELRAY ~EACH GE~ER- A~ EM~OYEES' RETIREMENT PLA~; REPEALING SECTION "AUTHOR~TIO~; ~NDING SECTION ~,~ ~ENDI~ AND MERG{~ SEC- TI~ ~.~, ~FFECT~VE DATE; APPlICAbilITY OF FORMER P~, AND SECT}~ ~NTRO~CTIO~; ~EAT~NG NEW SECTION 'DEFINIT~S~; ~ND~NG AND RETITLING SECTION · ARTIO PATION~; ~ENDING AND RET{TLING~ECTIO~ ~EST~, AND REPEALfHG FORMER SECT~ ~.~1, ~ERV)C~; REPE~I~ SECTION ~.~ ~VE ~ ABSENCe: ~END~NG ~CTION ~.~3, · RE~TED ~RV~E FOR FOR~R EMP~Y~ A~D PL~EES ~ ~RE EXCLUDED E~V~ AMEND- ING 5ECT~(~N 'I~ENEF~CIARIF~, CONTINGEH. C~ESm; ~G SECTION 'BEflEFJT$NONASSIGflABLE'; AMENDING SECTION ' 'BE~FITS PAYABLE, TO ~NORS A~ )~PETENT$~; ~E~D~NG SECT~ ~,~; OF 8ENEFtTS'; AMEND~HG SEC* T}ON ~.1~; 'A~)NISTRAT)OH RETIREMENT CO~ITTEE'; AT~NG A NEW SECTION 35.10~1, ~AI~ PR~EDURE': AMEN~ ~NG SECTION 35.1~, 'TRUST FUND AND;TRUSTEE'; ~EHD~NG SEC- T;ON ~, 'AMENDMENT OF PLA~: AMEnDiNG SECTION 3;.;~, · ~ERMiNAT)ON OF P~N'; · ViDIHG A ~V)NGS CLAUSE: PRO- VID;~ AN EFFECTfVE OATE. ~R~CT MAP, ~ ~ ~), ~ ~ ~ 7, ~ P~N ~T~ tN THE GE~ RE~ER ~, A ~ ~ N,W, ~ ~ ~ PARCEL ~ ~O ~ ~E PAR* TIVE ~T~ ~~C~ TI~Ly ~1~ HER~H ~~i~ ~NTIAL IN PA~T ~0 ~ (J~ Hall )~ N.W. 1~ ~ ~ AL; ~10 ~ IS L~TED AT AN ORDINATE OF THE CITY BEACH. FLORIDA. .... P~.. ~y ~ Fr~. ~ S.E. ~H STREET; PROV~IgG FOR CHAPTER ~. ~MPLOYEE ~. NI i~ ~ ~ i~ EX~PTI~ FR~ THE TRAN~ CJE~ AND ~ ~ aff~ ~ ~ ~a wi~ r~ MITTAL~N~RC PR~ESS; ~ ~ETIR~ENT P~. ~ THE ~.t ~All ~ v I ~L~At IILILI I . ~ll v tt~ till IIL4~ II ~~i~B. VIDING A ~NER~ REPEALER CODE ~ ORDINANCES OF THE C~USE; A ~VING C~USE; AND CITY OF ~LRAY BEACH. ~~ AN EFFE~IVE ~TE. . DA. BY ~ENDI~ ANO ~ESTAT- lNG SECTIONS ~.~ THROUGH AN ORDINANCE OF THE CITY C~ ~ ~ ~ ~.1~ ~ SPECIFICALLY SET Ml~t~ OF THE CiTY OF ~L~Y FORTH IN THE '~EN~ENT TO Published Daily .~c., ;LO.I~, ~END,~ AN O.DINANCE O~ THE CITY CO~ CITY OF DEL"AY ~EAC" CHAPTER 4, ~ONING ~EGU~ MISSION OF THE CiTY OF DEL~AY AL EMPLOYEES' ~ETI~EMEHT "-J~on~y'----m~ouB. ~u~d~y TION~, SECTION ~,11 BEACH, FLORIDA, CORRE~ING P~ ATTACHED HERETO AND 'NEIGH~R~D C~ERCIAL THE ZONING C~IFICATION FOR INC~RATED HEREIN; fioc~ VELOPMENT REGU~TIONS OF TICU~RLY DESCRIBED HEREI~, THE TITLE OF TEH P~N Delray Beach, Palm Beach County, Florida ,,~ co~ 0F ORDiNA.CE$ 0F , ~,~ ~ (GENE,AL ,C~E"- ~ITY OF DE,RAY BEAt, GE"E". THE CITY ~ OELRAY ~[ACN, CIAL) D~STRICT TO N( AL E~LOYEE$' RETIrEmEnT TION 4.4,11[D), ~ONOITIONAL USES DISTRICT; ~tO ~ND ~EtNG L~ "AUTHORI~TION': ~ENDING AND STRUCTURES ALLOWEd, TO 3TED AT THE LE. CORNER ~ S. SECTION ~.~ PR~IOE FOR THE DtSP~Y AND FEDERAL HIGHWAY AND S.E. ~H ~ENDI~ AND MERGI~ SEC- J~ O~ ~O~Z~ ~ ~ ~w~ ~ue.~uat~ ST.ET; A.O ~.ECT~.O T~O. ~m. ~eCT~VE OAT~: ~YG~gO E~I~NT~ ~l~ ~P ~ ~L~Y BEACH. APPLI~ILITY OF CONOITI~L USE; TO ~LE~I GENERAL REPEALER C~USE, A 'INTRO~CTiON'; CREATING THE ~1~ OF G~I~E ~V~NG C~U~. AND AN EFFEC- NEW SECTION ~.~, ~efore the undersigned authority personally C~,~"EC'L' ,0 US~;' v~.,~O ~L.~ ~ '" ~,v~ o*,~. .*,,,,.o~''"'T'O"S'~ S.,~e'"G ~, ~------~ppu~'uu Michelle D..~w.~~-r--'''-'~, .v~ ~.~m~~'-r'--"-~ v~.,... ~.,c~s.s .c~ ~~ ...,c,P..,o.:~..,.~ DITI~AL USE; BY ~ENDI~ L RETITLING SECTI~ 3S~1, S~CT~ ~1~),; AN ORD]~E OF THE C~ C~ ~E~TING',AND REPEALING ~e~uice~ o~ ~e ~1~ ~R A ~Xl~ FL~ ~CH, FLORI~ CHA~i~ THE ~ERVIC~; RE~LI~ SECTION ~apers published in Boca Raton in Palm A., ~ s,.~L~ ,~.~ ~ C,~ ~ ~.., ~C. ~.0 ~ ~Uv~ ~ , Flee ~ ~ERViCE U~$ ~0 &l~ USE ~. ~T~ I~ ~ ~ENOI~ ~ECTIO~ ~.~, ~each County, Florida; that the attached GL~.,~,~E~m,~ C~E.S,U ~. '~ ' ~.~,T~ ~.v,cE ~opy Of advertisement was published in said .~A~. c~us~. A.o A. ~ ~L.~.,....~,.'"~ ac.., ~ ~. ~xcLu~ FE(TIVEOATE.' ~1~ ~E~I~ ~ESI~TIAL F~ P~TlClPATI~ iN THE ~ewspapers in the issues of: ~.~ ~ u,~ ,s L~.~.. ,~ ~ ~,.,.~ AN~DINANCE OF T~CITY ~ ~ C~ER ~ CE~ LE~; ~NDI~ SECTI~ T~ ~ AT ZE~R AVE. ~ ~RISUT~S OF PAR- ~IU~TKCITY~Y .~ NUE; ~GN ~ EX~ T~IPANT ~D CI~: ~NDIK CITY ~ DELRAY ~ ~D~~ T~ ~ ~1~ C~E; ~1~ ~,~D - - ' USE P~N ~SI~T~ iN T~ t~ & GE~ ' ~ MEN~; ~ENDI~G~ECT/ON ~UP~ENTAL RETIREMENT (~DI~I~TI~; ~ AN EF~I~ I~C~E AND MIMIMUM 8ENE* ~ID ~0 IS ~TEO'~ ~E ~~ ~AR~IPANT TO FURNISH ~E* AP~TELY ~ ~L ~ ~ AN ~E M ~ CI~ ~ ~ INF~TIO~; ~EN~ ~ ~ ~ ~ MI~.~ ~ ~ ~ ~Y I~ SECTION ~ ~. VI~ ~ EX~ F~ B~.~ F~ ~KT~ ~ENEFIOARIES; CONT~NGEN- CI~; ~ENDING SECTION ~.1GI. TflET~I~~ : THE~IH~FI~T~ ~ENEFITS NONAS$IGNABLE': Lffiant further says that The News is a ~ ~; A ~ : TIC~Y~I~I~ ~ITSPAYAeLETO~,.ORS ~ewspaper published in Boca Ra~on, m said DA~: ;- ~ ~NTi~~~.~; ~ ANO t~OM~ENTS', ~ENDING (C . ~" ?~ SECTION ~.~; 'ASAN~MENT p~~.~:] ~ BENEF,TS'; ,ENDI~ SEC. )aim Beaoh County, Florida, Monday ~~ j TI~}; ~ ~ ~.~'~ TION ~.1~; 'A~INtSTRATION d~E~T~CJTY~ ED ~ M.W. i~W~.~ ~ETIREMENT C~TTEE'; ekE. ,hrough ~u~d~y, and has bee~ ~ered as l,w~T,;c~Y ., A4~.A~W~ AT~ ~ .. ~ECT,O, ~,~. ;econd class matter at the pos~ office in Cl.~ ~Y~ ~ ~~'1- INGSECTION~.IM, ffRUSTFUNDT~STE~; WENDING AND SEC. P~EL~ND~E~ ~ ~ A ~V~.~! P~; AMENDING SECTION ~.1~, or aperiod ofoneyear next preceding the ~RLYOEKRIB~IEmW C~U~ ~ ~ EF~ i VE~MINATI~ OF PLA~; ~ANSlT~NAL TO ~NER~ ~ ~TL VIDING A SAVI~S (~USE: BE~EN N.E. ~H AVE~E AN~: i ~ ~ 1~ NORTH ~ GE~ B~ le has neither paidnor promised any SOULEVARO; ~1~ ~ ~- dl~ ~ Cl~ ~L~Y AN ORD}NAWCE OF THE C)TY EMPTI~ F~ THE ~N~TJ I~. ~ I~lSl~ THE MISSION OF THE CiTY OF DELRAY TAL ~C ~; ~VI~' Cl~ ~D ~ ~g ~1~ BEACH, FLORIDA, CORRECTING C~U~; A ~VI~ C~U~ ~O ~g ~ A P~L ~ ~ A PARCEL OF ~NO AS ~RE PAR- ,eb~te) commi~mon o~ :e[und [o~ Lhe pu:- ANEFFE~IVE~TE. ~E .P~T~U~LY ~. T~RLY ~RIBED HEIEIN ~RI~ED HEREIB FR~ ~DI~ FR~ GC AND R-1AA (SINGLE )O~e O[ SeC~J~g ~J8 Adve~se~e~: [or pub- ~~' 0~.s~ .S~OE.T~*~ ~...~ ~*.~ ~S~O~.~*~ ~0 ~D C~UNITY ~ACILITIES iN ~PROF~SSiO~AL 0FF CE) Jca~lon in said newspapers. AN OROINA~E OF THE CITY C~ PART~"E~VELOP~ENTA"~ Tn,CT SA'O ~A"O "~"G MiSSION OF T~ ClT~OF ~Y ~; ~10 ~ND IS L~TED ~ ED AT THE S E CO~qER FEDERAL HIGHWAY ANO S,E I~H, F~ ~ ~ ~ THE~TH Sl~ OF LINT~ ~ USE ~ ~ ~ T~' ~ P~IOI~ ~ ~- 'Z~ING ~P OF DELRAY BEACH. C~HE~I~ ~* ~R A ~ R~ THE T~IT- F~elD~ t~; PROVIOI~ A ~Y ~II~IN~ I~ ~. ~ ~VING C~USE, AND AN EFFEC- ~ ~1~. ~LT0 ~ : ~; A-~'~[ A~ TIVEOATE. ~DIU~ ~ l~ : AN ~F~I~ ~T~ , ',worn to and subscribed before me this ~- ~ '~i; ~~~,.,..~ ~.~AY~NOUSE T~I~~.~~ ~ ~ A' P~EL~~EP~ ~IDIN A ~ ~.~ ~ ~ ~ ~ ~ ~ TI~LY ~RIKD HEREIN day of {d A.D., 19 ER C~; A ~Vl~ ~'~[ T~LY ~ ~REJH F~ TR~IT~L TO ~ - ~O ~ EFFE~IVE DA~- ~- '1':' ~ ~TY RESI~IAL; I' --~:: ~M~ ~,. ~! I ~C~; FL~~ , .'.~ ~~ ~ A ~NE~ RE~ALER ~b ~ate of Florida at U~ ~-~ lB T~ ~ ~: A~ 3eal, Ilo, large) cM~ ~ ~ A EFFE~W~ [. ~ ~- ~ ~. ~ [ ~. ~E~ (I~S ~D USE ~ DESIGN~ ~E PARTICU~,RLY DE. ~llY F~ILITIIS; ~lD