Ord 17-04ORDINANCE NO. 17-04
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF DELl{AY BEACH, FLORIDA, AMENDING
CHAPTER 33, "POLICE AND FIRE DEPARTMENTS",
SUBHEADING "PENSIONS", OF THE CODE OF
ORDINANCES OF THE CITY OF DFJ.RAY BEACH,
FLORIDA, BY AMENDING SECTION 33.60,
"DEFINITIONS", REVISING THE DEFINITION OF
"EARNINGS" TO INCLUDE CERTAIN EDUCATIONAL
SUPPLEMENTAL INCENTIVE PAYMENTS AND TO
EXCLUDE CERTIFICATION PAY AND ALL OTHER
PAYMENTS; PROVIDING A REPEALER CLAUSE;
PROVIDING A VALIDITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH AS FOLLOWS:
Section 1. That Chapter 33, "Police and Fire Departments", subheading, "Pensions", of the
Code of Ordinances of the City of Delray Beach is hereby amended by amending Section 33.60,
"Definitions", to read as follows:
$¢¢0on 33.60 DEFINITIONS.
For the purpose of this subchapter, the follow'rog definitions shall apply
unless the context dearly indicates or requires a different meaning.
"ACTUARIAL EQUIVALENCE" or "ACTUARIALLY EOUIVALENT".
This term shall mean that any benefit payable under the terms of the pension fund in
a form other than the normal retirement pension shall have the same actuarial
present value on the date payment commences as the normal retirement pension.
For purposes of establishing the actuarial present value of any form of payment, all
future payments shall be discounted for interest and mortality by using 7% interest
and the 1983 Group Annuity Mortality Table for Males, with ages set ahead five
years in the case of disability retirees.
"AGREEMENT". The written instrument setting forth the provisions of
the retirement system.
"AVERAGE MONTHLY EARNINGS". One thirty-sixth of the
arithmetical average for the highest consecutive 36-month period preceding the
actual retirement or termination of a member; provided, however, the benefit
derived shall not be less than the benefit that would have been paid based on a
definition of average monthly earnings of one twenty-fourth of the arithmetical
average for the highest consecutive 24-month period, as calculated prior to the
effective date of this ordinance.
"BENEFICIARY." The person entided to receive benefits hereunder at the
death of a member who has been designated in writing by the member and filed with
the Board of Trustees. If no designation is in effect at the time of death of the
member, or if no person so designated is living at that time, the beneficiary shall be
the estate of the member.
"BOARD." The Board of Trustees which shall administer and manage the
system here'm provided and serve as Trustee of the Trust Fund.
"CONTINUOUS SERVICE."
(1) Uninterrupted serv/ce by a member (expressed as years and
completed months) from the date he last entered employment as an employee until
the date his employment is terminated by death, disahility, retirement, resignation or
discharge.
(2) However, the continuous service of any member shall not be
deemed to be interrupted by:
(a) Any authorized leave of absence or vacation,
provided all members similarly situated in similar circumstances shall be treated alike
pursuant to uniform, nondiscriminatory rules. No credit for benefit eligibility for
computation purposes under the system shall be allowed for any such period of leave
of absence.
(b) Any service, whether voluntary or involuntary, in the
armed forces of the United States, provided the member is legally entitled to
reemployment under the provisions of the Uniformed Services Employment and
Reemployment Rights Act of 1994 and any amendments thereto, or any law
applicable to such reemployment, and provided that a member shall apply for
reemployment within three months following termination of such service, or as
otherwise allowed by the Uniformed Services Employment and Reemployment
Rights Act of 1994, and any amendments thereto. Nothing aforementioned shall
2 ORD. NO. 17-04
serve to reduce the accrued accredited services of the members on the effective date
of the plan.
(3) Continuous service shall also include, for reemployed
members, those years and completed months for which the reemployed member had
withdrawn his contributions to the Trust Fund, where the reemployed member
repays into the Fund the contributions he had withdrawn, with interest based upon
the plan's annual total rate of return for the pension funds, as computed by the
actuaries or the City, for those years and completed months, within 90 days after his
reemployment date. A reemployed member may also repay only a portion of the
withdrawn funds with interest and receive a like credit for continuous service;
however, repayments, whether partial or total, shall only be permitted once within
the 90-day limit.
(4) For members who are employed by the City on or after the
effective date of this ordinance who have five (5) or more years of continuous
service based on City employment, continuous service shall also include up to three
(3) years of active service in the U.S. armed forces or full-time employment as a
police officer or firefighter with another governmental entity prior to employment by
the City, purchased by the member in accordance with this paragraph; provided the
member has not received and w'fll not receive a benefit from another retirement plan
based on such prior employment. Such a member may purchase continuous service
under the plan, in years and tenths of a year, for all or a portion of the period of their
active service in the U.S. armed forces or full-time employment as a police officer or
fire fighter with another governmental entity prior to employment by the City, by
paying into the plan the full actuarial cost of such continuous service, as determined
by the plan actuary. Such payment may be made at any time after employment by the
City, and must be made in full prior to entering the DROP or separation from City
employment, whichever occurs earlier. In the event full payment is not made prior to
such date, the member shall recdve only the amount of continuous service, as
determined by the actuary, for which the payment made, excluding interest, is the full
actuarial cost. In the event a member makes payment for additional continuous service
in accordance with this paragraph prior to attaining five years of continuous service
based on City employment, and separates from City employment before attaining five
years of continuous service based on Cxty employment, such member shall receive a
full refund of all payments made, plus interest based on the assumed rate of return of
the plan. A member purcha(mg such additional continuous service must pay the full
cost of any actuarial calculations required. Payment for the purchase of continuous
service pursuant to this paragraph may be made using any one or a combination of the
following options:
Cash lump sum payment.
3 ORD. NO. 17-04
Direct transfer or rollover of an eligible rollover distribution
from a qualified plan, in accordance with Sec. 33.70.
Time payment plan. Under this option the member may elect
to pay any remaining balance due for the purchase of
continuous service through payroll deduction on a me
payment plan over a period of not more than five (5) years, as
approved by the Retirement Committee. Interest on such
payments shall be paid based on the assumed rate of return of
the plan. Payments deducted from an exnployee's pay shall be
designated as employer contributions pursuant to Section
414(h) of the Internal Revenue Code.
"EARNINGS." Basic wages paid to a member, including state education
compensation, police basic education and police and fire career education compensation, but
excluding overtime, bonuses and any other nc, n zcffc, laz payments.
"EFFECTIVE DATE." April 22, 1974.
"EMPLOYEE." Ali employees of the City classified as full-time sworn
police officers, as defined on the effective date in F.S. Sec. 185.02, or classified as
police officers in training, or classified as volunteer or regular full-time firefighters, as
defined on the effective date in F.S. Sec. 175.032, but shall exclude all civilian
members of the Police and Fire Departments, and the Police Chief and Fire Chief
upon their written election not to participate in the system.
"FUND." The Trust Fund established herein as part of the system.
"MEMBER." An employee who fulfills the prescribed participation
requirements.
"SPOUSE." The lawful wife or husband of a member at time of retirement
and death.
"SYSTEM." The City Police and Firefighters Retirement System as
contained here'm and all amendments thereto.
Section 2 That all ordinances or parts of ordinances in conflict herewith be, and the same
are hereby repealed.
Section 3 That should any section or provision of this ordinance or any portion thereof, any
paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such
decision shall not operate to invalidate the remainder hereof.
4 ORD. NO. 17-04
Section 4 That this ordinance shall become effective mediately upon its passage on
second and final reading.
PASSE~A, _ND _A~OPTED in regular session on second and final reading on this the
I [ day OS"~/',r/~:g/ff,~ ,2004.
MAYOR
City Clerk
First Readin .~.
Second Readin~
5 ORD. NO. 17-04
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
MAYOR AND CITY COMMISSIONERS
CITY MANAGER ~/~
AGENDA ITEM $$ ~ ~DQ-
ORDINANCE NO. 17-04
FIRE DEPARTMENTS". PENSIONS, SECTION $3,60. "DEFINITIONS")
- REGULAR MRRTING OF MARCH 11. 2004
(AMENDING CHAPTER 33. "POLICE AND
MARCH 5, 2004
This ordinance is before Commission for second reading and public hearing to amend Chapter 33,
"Police and Fire Depa/;i,~ents", Pensions, Section 33.60, "Definitions", of the City Code of
Ordinances, clarifying the definition of earnings to include certain educational supplemental incentive
payments and to exclude certification and other payments.
At the first reading on February 17, 2004, the Commission passed Ordinance No. 17-04.
Recommend approval of Ordinance No. 17-04 on second and final reading.
S:\City Clerk\agenda memo. Ord 17.04. Police. Fire P~.03.11.04
CITY OF nELRrlV BErI£H
CITY ATTORNEY'S OFFICE
DELRAY BEACH
1993 2001
TO:
200 NW 1st AVENUE · DELRAY BEACH. FLORIDA 33444
TELEPHONE 561/243-7090 · FACSIMILE 561/278-4755
Writer's Direct Line: 561/243-7091
MEMORANDUM
February 12, 2004
City Commission
David T. Harden, City Manager
FROM:
Susan A. Ruby, City Attorney
SUBJECT: Police/Fire Pension Ordinance No. 17-04 Certification Pay
The attached ordinance clarifies the definition of earnings and includes basic
wages as well as state education, police basic education and police and fire career
education compensation but not overtime, bonus(es) or other payments.
Please place on the February 17, 2004 agenda for first reading.
Attachment
CC:
Barbara Garito, City Clerk
Larry Schroeder, Police Chief
Kerry Koen, Fire Chief
Harry Hamilton, HR Director
Joe Safford, Finance Director
Jim Tabeek, Fire Inspector Lt.
Officer Vincent Gray
Officer Charles Jeroloman
ORDINANCE NO. 17-04
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AMENDING CHAPTER 33, "POLICE
AND FIRE DEPARTMENTS", SUBHEADING "PENSIONS", OF
THE CODE OF ORDINANCES OF THE CITY OF DELRAY
BEACH, FLORIDA, BY AMENDING SECTION 33.60,
"DEFINITIONS", REVISING THE DEFINITION OF "EARNINGS"
TO INCLUDE CERTAIN EDUCATIONAL SUPPLEMENTAL
INCENTIVE PAYMENTS AND TO EXCLUDE CERTIFICATION
PAY AND ALL OTHER PAYMENTS; PROVIDING A REPEALER
CLAUSE; PROVIDING A VALIDITY CLAUSE; AND PROVIDING
AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH AS
FOLLOWS:
Section 1. That Chapter 33, "Police and Fire Departments", subheading, "Pensions", of
the Code of Ordinances of the City of Delray Beach is hereby amended by amending Section
33.60, "Definitions", to read as follows:
Section 33.60 DEFINITIONS.
For the purpose of this subchapter, the following definitions shall apply
unless the context clearly indicates or requires a different meaning.
"ACTUARIAL EQUIVALENCE" or "ACTUARIALLY EQUIVALENT". This
term shall mean that any benefit payable under the terms of the pension fund in a
form other than the normal retirement pension shall have the same actuarial present
value on the date payment commences as the normal retirement pension. For
purposes of establishing the actuarial present value of any form of payment, all
future payments shall be discounted for interest and mortality by using 7% interest
and the 1983 Group Annuity Mortality Table for Males, with ages set ahead five
years in the case of disability retirees.
"AGREEMENT". The written instrument setting forth the provisions of the
retirement system.
"AVERAGE MONTHLY EARNINGS". One thirty-sixth of the arithmetical
average for the highest consecutive 36-month period preceding the actual
retirement or termination of a member; provided, however, the benefit derived shall
not be less than the benefit that would have been paid based on a definition of
average monthly earnings of one twenty-fourth of the arithmetical average for the
highest consecutive 24-month period, as calculated prior to the effective date of this
ordinance.
"BENEFICIARY." The person entitled to receive benefits hereunder at the
death of a member who has been designated in writing by the member and filed
with the Board of Trustees. If no designation is in effect at the time of death of the
member, or if no person so designated is living at that time, the beneficiary shall be
the estate of the member.
"BOARD." The Board of Trustees which shall administer and manage the
system herein provided and serve as Trustee of the Trust Fund.
"CONTINUOUS SERVICE."
(1) Uninterrupted service by a member (expressed as years and
completed months) from the date he last entered employment as an employee until
the date his employment is terminated by death, disability, retirement, resignation or
discharge.
(2) However, the continuous service of any member shall not be
deemed to be interrupted by:
(a) Any authorized leave of absence or vacation, provided
all members similarly situated in similar circumstances shall be treated alike
pursuant to uniform, nondiscriminatory rules. No credit for benefit eligibility for
computation purposes under the system shall be allowed for any such period of
leave of absence.
(b) Any service, whether voluntary or involuntary, in the
armed forces of the United States, provided the member is legally entitled to
reemployment under the provisions of the Uniformed Services Employment and
Reemployment Rights Act of 1994 and any amendments thereto, or any law
applicable to such reemployment, and provided that a member shall apply for
reemployment within three months following termination of such service, or as
otherwise allowed by the Uniformed Services Employment and Reemployment
Rights Act of 1994, and any amendments thereto. Nothing aforementioned shall
serve to reduce the accrued accredited services of the members on the effective
date of the plan.
2 ORD. NO. 17-04
(3) Continuous service shall also include, for reemployed
members, those years and completed months for which the reemployed member
had withdrawn his contributions to the Trust Fund, where the reemployed member
repays into the Fund the contributions he had withdrawn, with interest based upon
the plan's annual total rate of return for the pension funds, as computed by the
actuaries or the City, for those years and completed months, within 90 days after his
reemployment date. A reemployed member may also repay only a portion of the
withdrawn funds with interest and receive a like credit for continuous service;
however, repayments, whether partial or total, shall only be permitted once within
the 90-day limit.
(4) For members who are employed by the City on or after the
effective date of this ordinance who have five (5) or more years of continuous
service based on City employment, continuous service shall also include up to three
(3) years of active service in the U.S. armed forces or full-time employment as a
police officer or firefighter with another governmental entity prior to employment by
the City, purchased by the member in accordance with this paragraph; provided the
member has not received and will not receive a benefit from another retirement plan
based on such prior employment. Such a member may purchase continuous
service under the plan, in years and tenths of a year, for all or a portion of the
period of their active service in the U.S. armed forces or full-time employment as a
police officer or firefighter with another governmental entity prior to employment by
the City, by paying into the plan the full actuarial cost of such continuous service, as
determined by the plan actuary. Such payment may be made at any time after
employment by the City, and must be made in full prior to entering the DROP or
separation from City employment, whichever occurs earlier. In the event full payment
is not made prior to such date, the member shall receive only the amount of
continuous service, as determined by the actuary, for which the payment made,
excluding interest, is the full actuarial cost. In the event a member makes payment for
additional continuous service in accordance with this paragraph prior to attaining five
years of continuous service based on City employment, and separates from City
employment before attaining five years of continuous service based on City
employment, such member shall receive a full refund of all payments made, plus
interest based on the assumed rate of return of the plan. A member purchasing
such additional continuous service must pay the full cost of any actuarial
calculations required. Payment for the purchase of continuous service pursuant to
this paragraph may be made using any one or a combination of the following options:
Cash lump sum payment.
Direct transfer or rellover of an eligible rollover distribution
from a qualified plan, in accordance with Sec. 33.70.
3 ORD. NO. 17-04
Time payment plan. Under this option the member may elect to
pay any remaining balance due for the purchase of continuous
service through payroll deduction on a time payment plan over a
period of not more than five (5) years, as approved by the
Retirement Committee. Interest on such payments shall be paid
based on the assumed rate of return of the plan. Payments
deducted from an employee's pay shall be designated as
employer contributions pursuant to Section 414(h) of the Internal
Revenue Code.
"EARNINGS." Basic wages paid to a member, includin.q state education
compensation, police basic education and police and fire career education compensation,
but excluding overtime, bonuses and any other Ren-regu~ payments.
"EFFECTIVE DATE." April 22, 1974.
"EMPLOYEE." All employees of the City classified as full-time sworn police
officers, as defined on the effective date in F.S. Sec. 185.02, or classified as police
officers in training, or classified as volunteer or regular full-time firefighters, as
defined on the effective date in F.S. Sec. 175.032, but shall exclude all civilian
members of the Police and Fire Departments, and the Police Chief and Fire Chief
upon their written election not to participate in the system.
"FUND." The Trust Fund established herein as part of the system.
"MEMBER." An employee who fulfills the prescribed participation
requirements.
"SPOUSE." The lawful wife or husband of a member at time of retirement
and death.
"SYSTEM." The City Police and Firefighters Retirement System as
contained herein and all amendments thereto.
Section 2 That all ordinances or parts of ordinances in conflict herewith be, and the same
are hereby repealed.
Section 3 That should any section or provision of this ordinance or any portion thereof,
any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid,
such decision shall not operate to invalidate the remainder hereof.
4 ORD. NO. 17-04
Section 4 That this ordinance shall become effective immediately upon its passage on
second and final reading.
PASSED AND ADOPTED in regular session on second and final reading on this the __
day of ,2004.
ATTEST:
MAYOR
City Clerk
First Reading
Second Reading
5 ORD. NO. 17-04
lO0